Document:

exhibit105.htm

    EXHIBIT
10.5

    

    Discretionary
Cash Bonus Plan Description

    

    The
following is a description of the First National Community Bancorp, Inc.
Discretionary Cash Bonus Plan (“Bonus Plan”).  The Bonus Plan allows
for the payment of annual cash bonuses to employees who are considered to be
management level and are selected by the board of directors.  The
Bonus Plan is administered by the board of directors.  The board of
directors may delegate the authority to determine bonuses to a committee or a
member of senior management.  Cash bonuses represent the variable
component of the executive compensation program that is tied to our performance
and individual achievement. Our policy is to base a significant portion of our
executive officers’ cash compensation on bonus. In determining bonuses, the
board of directors considers factors such as relative performance of the company
during the year (including the bank’s gross revenue, net income and customer
growth) and the individual’s contribution to our performance, the need to
attract, retain and motivate high quality executives as well as the degree to
which the executive officer met or exceeded certain nonquantitative objectives
established for him/her. Bonuses are not guaranteed or fixed by formula. The
board of directors does not establish performance targets which when reached
automatically provide a bonus, but uses its subjective business experience in
reviewing the relevant information and determining whether and how much of a
bonus is merited.  The amount and to whom a bonus is awarded is at the
sole discretion of the board of directors or its designee.purchaseagreementcratercreek.htm

  
    CRATER CREEEK FARMOUT
AGREEMENT

     

    THIS
AGREEMENT made as of the 6th day
of August, 2009

     

    BETWEEN:

     

    SPEEBO INC., a body corporate,
incorporated under the laws of the State of Delaware (hereinafter called
"Speebo");

     

    - and
-

     

    MORGAN MINING CORP, a body
corporate, incorporated under the laws of Nevada (hereinafter called
"BUYER");

     

    WHEREAS
Speebo has agreed to farmout its 100% undivided interest in the Crater Creek
property claims near Atlin, British Columbia (hereinafter called the
“Acquisition Lands”) as set forth in the attached Schedule "A" to BUYER on the
terms and conditions set out in this Agreement;

     

    NOW
THEREFORE that in consideration of the mutual covenants including, but not
limited to the consideration set out in the clause herein entitled
"Consideration", contained in this Agreement the Parties agree as
follows:

     

    
      	
              1.  

            	
              DEFINITIONS

            

    

     

    In this
Agreement, unless the context otherwise requires:

     

    
      	
              (a)  

            	
              "Agreement"
      means this Acquisition agreement including the schedules attached
      hereto;

            

    

     

    
      	
              (b)  

            	
              "Acquisition
      Lands" means those lands as set out in the attached Schedule "A",
      which are offered for mining purposes only. It is understood that
      ownership of the title to it does not include ownership of the surface
      rights or the right to use the surface for residential or recreational
      purposes;

            

    

     

    
      	
              (c)  

            	
               "Party" means a
      party to this Agreement "Parties" means all parties to this
      Agreement;

            

    

     

    
      	
              (d)  

            	
              "Permitted
      Encumbrances" means:

            

    

     

    
      	
              (i)  

            	
              liens
      for taxes, assessments and governmental charges which are not due or the
      validity of which is being diligently contested in good faith by or on
      behalf of Speebo,

            

    

     

    
      	
              (ii)  

            	
              liens
      incurred or created in the ordinary course of business as security in
      favor of the person who is conducting the development or operation of the
      Acquisition Lands to which such liens relate for Speebo’s proportionate
      share of the costs and expenses of such development or
      operation,

            

    

     

    
      	
              (iii)  

            	
              mechanics',
      builders' and materialmen's liens in respect of services rendered or goods
      supplied for which payment is not
due,

            

    

     

    
      	
              (iv)  

            	
              easements,
      rights of way, servitudes and other similar rights in land (including
      without limitation rights of way and servitudes for highways and other
      roads, railways, sewers, drains, gas and oil pipelines, gas and water
      mains, electric light, power, telephone, telegraph and cable television
      conduits, poles, wires and cables) which do not materially impair the use
      of the Acquisition Lands affected
thereby,

            

    

     

    
      	
              (v)  

            	
              the
      right reserved to or vested in any municipality or government or other
      public authority by the terms of any lease, license, franchise, grant or
      permit or by any statutory provision, to terminate any such lease,
      license, franchise, grant or permit or to require annual or other periodic
      payments as a condition of the continuance
  thereof,

            

    

     

    
      	
              (vi)  

            	
              rights
      of general application reserved to or vested in any governmental authority
      to levy taxes on the or any of them or the income therefrom, and
      governmental requirements and limitations of general application as to
      production rates on the operations of any property,
  and

            

    

     

    
      	
              (vii)  

            	
              statutory
      exceptions to title, and the reservations, limitations, provisos and
      conditions in any original grants from the Crown of any of the mines and
      minerals within, upon or under the Acquisition Lands;
  and

            

    

     

    
      	
              (e)  

            	
              "this Agreement",
      "herein", "hereto", "hereof" and similar expressions mean and refer
      to this Agreement.

            

    

     

    
      	
              2.  

            	
              INTERPRETATION

            

    

     

    
      	
              (a)  

            	
              The
      expressions "Section", "Subsection", "Clause", "Subclause", "Paragraph"
      and "Schedule" followed by a number or letter or combination thereof mean
      and refer to the specified section, subsection, clause, subclause,
      paragraph and schedule of or to this
Agreement.

            

    

     

    
      	
              (b)  

            	
              The
      division of this Agreement into sections, subsections, clauses, subclauses
      and paragraphs and the provision of headings for all or any thereof are
      for convenience and reference only and shall not affect the construction
      or interpretation of this
Agreement.

            

    

     

    
      	
              (c)  

            	
              When
      the context reasonably permits, words suggesting the singular shall be
      construed as suggesting the plural and vice versa, and words suggesting
      gender or gender neutrality shall be construed as suggesting the
      masculine, feminine and neutral
genders.

            

    

     

    
      	
              (d)  

            	
              There
      are appended to this Agreement the following schedules pertaining to the
      following matters:

            

    

     

    Schedule
"A"                          -       Acquisition
Lands

    Schedule
"B"                      -     Net
Smelter Royalty

    

    Such
schedules are incorporated herein by reference as though contained in the body
hereof.  Wherever any term or condition of such schedules conflicts or
is at variance with any term or condition in the body of this Agreement, such
term or condition in the body of this Agreement shall prevail.

     

    
      	
              (e)  

            	
              All
      losses, costs, claims, damages, expenses and liabilities in respect of
      which a Party has a claim pursuant to this Agreement include without
      limitation reasonable legal fees and disbursements on a solicitor and
      client basis.

            

    

     

    
      	
              3.  

            	
              CONSIDERATION

            

    

     

    As
consideration for BUYER earning a 100% undivided interest to the Acquisition
Lands:

     

    
      	
              (a)  

            	
              BUYER
      hereby agrees to pay to Speebo the sum of $12,500 CDN upon execution of
      this Agreement, such payment not to be refunded to BUYER under any
      circumstances.  Of this amount, $2,500 CDN shall be deducted as
      a finder’s fee to a mutually-agreeable 3rd
      party.

            

    

     

    
      	
              4.  

            	
              COMMITMENT

            

    

     

    BUYER
agrees to expend up to one million five hundred thousand Dollars ($1,500,000
CDN) over three years as exploration expenditures (the “Exploration Program”),
exclusive of tax thereon, on the Acquisition Lands, with the first year to be a
minimum of $250,000 CDN.

     

    It is
further agreed that BUYER shall re-imburse Speebo for any claim renewal fees due
to the Province of British Columbia during the term of the
agreement.

     

    
      	
              5.  

            	
              EARNED
      INTEREST

            

    

     

    Upon
completion of the Exploration Program, BUYER shall have earned 100% of Speebo's
undivided interest in the Acquisition Lands, subject to the net smelter
royalties described in section 6 herein (the "Earned Interest").

     

    
      	
              6.  

            	
              NET
      SMELTER ROYALTY

            

    

     

    BUYER
shall grant to Speebo a 2.0% net smelter royalty on all production from the
Acquisition Lands, in accordance with the terms and conditions set out in
Schedule "B" hereto.

     

    
      	
              7.  

            	
              DEFAULT

            

    

     

    Should
BUYER default under this Agreement then Speebo will provide written notice to
BUYER with specific details of such defaults or failures.  After
receiving said notice, BUYER shall have 60 days to remedy such default. Should
BUYER fail to remedy the default within the 60 day period, BUYER shall forfeit
any rights it has to the Acquisition Lands and this Agreement shall be
terminated.

     

    BUYER may
elect to terminate this agreement at any time upon 30 days written notice to
Speebo, and at no penalty.

     

    
      	
              8.  

            	
              REPRESENTATIONS
      AND WARRANTIES OF SPEEBO

            

    

     

    Speebo
makes the following representations and warranties to BUYER, no claim in respect
of which shall be made or be enforceable by BUYER unless written notice of such
claim, with reasonable particulars, is given by BUYER to Speebo within a period
of twelve (12) months from the date hereof:

     

    
      	
              (a)  

            	
              Speebo
      is duly incorporated and is validly subsisting under the laws of the State
      of Delaware.

            

    

     

    
      	
              (b)  

            	
              Speebo
      is the legal and registered beneficial owner of all of its stated
      interests in the Acquisition Lands, and such interests are free of any
      liens, claims, charges, security interests or encumbrances of any kind
      whatsoever, except for the Permitted
  Encumbrances;

            

    

     

    
      	
              (c)  

            	
              there
      are no actions, suits, proceedings or claims existing or, to the best of
      the knowledge, information and belief of Speebo pending or threatened with
      respect to or in any manner challenging ownership of interest in any of
      the Acquisition Lands, or which might reasonably be expected to result in
      a material impairment or loss of the Acquisition Lands, or the proposed
      disposition of interest in the Acquisition
  Lands;

            

    

     

    
      	
              (d)  

            	
              Speebo
      is in material compliance with all applicable laws, rules, regulations,
      orders and statutes applicable to it, the interest in the Acquisition
      Lands or the operation of the Acquisition Lands, and Speebo has not
      received any notice of any violation, and there is no basis for assertion
      of any violation, of any applicable law, order, rule, regulation, writ,
      injunction or decree of any court, governmental or conservation authority
      or any statute, and Speebo holds, in good standing, all licenses,
      registrations and qualifications
required;

            

    

     

    
      	
              (e)  

            	
              the
      execution and delivery of this letter agreement and the consummation of
      the transaction contemplated herein will not, as a result of Speebo’s
      involvement, violate nor be in conflict with any provision of any material
      agreement or instrument to which Speebo is a party or is bound or, to the
      best of the knowledge of Speebo, any judgment, decree, order, statute,
      rule or regulation applicable to Speebo and no authorizations, approvals
      or consents are required for the consummation of the transaction
      contemplated herein by Speebo; and

            

    

     

    
      	
              (f)  

            	
              Speebo
      is a non-resident of Canada within the meaning of the Income Tax Act
      (Canada).

            

    

     

    
      	
              9.  

            	
              REPRESENTATIONS
      AND WARRANTIES OF BUYER

            

    

     

    BUYER
makes the following representations and warranties to Speebo, no claim in
respect of which shall be made or be enforceable by Speebo unless written notice
of such claim, with reasonable particulars, is given by Speebo to BUYER within a
period of twelve (12) months from the date hereof:

     

    
      	
              (a)  

            	
              BUYER
      is duly incorporated and is validly subsisting under the laws of
      Nevada,

            

    

     

    
      	
              (b)  

            	
              there
      is no action, suit, litigation, arbitration, investigation, inquiry or
      other proceeding in progress, or, to the best of BUYER’s knowledge,
      pending or threatened against or relating to BUYER or its material assets
      and there is no circumstance, matter or thing known to BUYER which might
      give rise to any such proceeding or to any governmental investigation
      relative to BUYER and there is not outstanding against BUYER any judgment,
      decree, injunction, rule or order of any court, government department,
      commission, agency or arbitrator;
and

            

    

     

    
      	
              (c)  

            	
              BUYER
      has the requisite power, capacity and authority to enter into this letter
      agreement (and all other agreements and documents required to be delivered
      hereunder) on the terms and conditions herein set
  forth.

            

    

     

    
      	
              10.  

            	
              INDEMNITIES
      FOR REPRESENTATIONS AND WARRANTIES

            

    

     

    
      	
              (a)  

            	
              Speebo
      shall be liable to BUYER for and shall, in addition, indemnify BUYER from
      and against, all losses, costs, claims, damages, expenses and liabilities
      suffered, sustained, paid or incurred by BUYER which would not have been
      suffered, sustained, paid or incurred had all of the representations and
      warranties contained in Section 8 been accurate and truthful, provided
      however that nothing in this Subsection 10(a) shall be construed so as to
      cause Speebo to be liable to or indemnify BUYER in connection with any
      representation or warranty contained in Section 8 if and to the extent
      that BUYER did not rely upon such representation or
    warranty.

            

    

     

    
      	
              (b)  

            	
              BUYER
      shall be liable to Speebo for and shall, in addition, indemnify Speebo
      from and against, all losses, costs, claims, damages, expenses and
      liabilities suffered, sustained, paid or incurred by Speebo which would
      not have been suffered, sustained, paid or incurred had all of the
      representations and warranties contained in Section 9 been accurate and
      truthful, provided however that nothing in this Subsection 10(b) shall be
      construed so as to cause BUYER to be liable to or indemnify Speebo in
      connection with any representation or warranty contained in Section 9 if
      and to the extent that Speebo did not rely upon such representation or
      warranty.

            

    

     

    
      	
              (c)  

            	
              Notwithstanding
      any other provision in this Agreement, Speebo shall not be liable to or be
      required to indemnify BUYER in respect of any losses, costs, claims,
      damages, expenses and liabilities suffered, sustained, paid or incurred by
      BUYER in respect of which BUYER is liable to and has
      indemnified  pursuant to subsection
  10(b).

            

    

     

    
      	
              11.  

            	
              COVENANTS

            

    

     

    During
the currency of this Agreement, the Parties shall:

     

    
      	
              (a)  

            	
              not
      do any other act or thing which would or might in any way adversely affect
      the rights of the Parties
hereunder,

            

    

     

    
      	
              (b)  

            	
              make
      available to all Parties and their representatives all available relevant
      technical data, geotechnical reports, maps, digital files and other data
      with respect to the Acquisition Lands in Parties' possession or control,
      including soil samples, and all records and files relating to the
      Acquisition Lands and permit Parties and their representatives at their
      own expense to take abstracts therefrom and make copies
      thereof;

            

    

     

    
      	
              (c)  

            	
              promptly
      provide all Parties with any and all notices and correspondence received
      from government agencies in respect of the Acquisition Lands;
      and

            

    

     

    
      	
              (d)  

            	
              cooperate
      fully with each other in conducting exploration and in obtaining any
      surface and other rights on or related to the Acquisition Lands as is
      reasonably required.

            

    

     

    
      	
              12.  

            	
              DISPOSITION

            

    

     

    Any sale,
assignment or transfer by a Party of all or any part of its rights or
obligations hereunder shall include a provision whereby the purchaser, successor
or assignee, as the case may be, shall agree to assume the rights and be subject
to all the liabilities and obligations of the transferring Party under this
Agreement.

     

    
      	
              13.  

            	
              REGISTRATION

            

    

     

    BUYER
shall have the right to register notice of this Agreement for the sole purpose
of giving notice of its rights under this Agreement to the applicable ministries
of the British Columbia Government.

     

    
      	
              14.  

            	
              FURTHER
      ASSURANCES

            

    

     

    Each
Party will, from time to time and at all times hereafter upon request, without
further consideration, do such further acts and deliver all such further
assurances, deeds and documents as shall be reasonably required in order to
fully perform and carry out the terms of this Agreement.

     

    It should
be further noted within this Agreement that Speebo is not qualified by education
or experience to make any judgments on the economic viability of the mining
claims or minerals contained there-in, and as such will be held harmless for any
information provided both verbal and written, expressed or implied, with regard
to the economic, technical, or geological aspects of the Acquisition
Lands.  Any such conclusions are the product of BUYER’s own due
diligence, of which it bears sole responsibility.

     

    
      	
              15.  

            	
              ENTIRE
      AGREEMENT

            

    

     

    The
provisions contained in any and all documents and agreements collateral hereto
shall at all times be read subject to the provisions of this Agreement and, in
the event of conflict, the provisions of this Agreement shall
prevail.  No amendments shall be made to this Agreement unless in
writing, executed by the Parties.  This Agreement supersedes all other
agreements, documents, writings and verbal understandings between the Parties
relating to the subject matter hereof and expresses the entire agreement of the
Parties with respect to the subject matter hereof.

     

    
      	
              16.  

            	
              GOVERNING
      LAW

            

    

     

    This
Agreement shall, in all respects, be subject to, interpreted, construed and
enforced in accordance with and under the laws of the Province of British
Columbia and applicable laws of Canada and shall, in all respects, be treated as
a contract made in the Province of British Columbia.  The Parties
irrevocably attorn and submit to the exclusive jurisdiction of the courts of the
Province of British Columbia and courts of appeal therefrom in respect of all
matters arising out of or in connection with this Agreement.

     

    
      	
              17.  

            	
              ENUREMENT

            

    

     

    This
Agreement shall be binding upon and shall enure to the benefit of the Parties
and their respective administrators, trustees, receivers, successors and
assigns.

     

    
      	
              18.  

            	
              TIME
      OF THE ESSENCE

            

    

     

    Time
shall be of the essence in this Agreement.

     

    
      	
              19.  

            	
              NOTICES

            

    

     

    The
addresses for service and the fax numbers of the Parties shall be as
follows:

     

    
      	
               
      

            	
              BUYER
      -

            	
              MORGAN
      MINING CORP

            

    

     

    11622 El Camino Real, Suite
100

    San Diego, CA 92130

    
      	
               
      

            	
              Attention:
      Robert Thayer

            

    

     

    
      	
               
      

            	
              Fax
      No.: 951-676-4988

            

    

     

    
      	
               
      

            	
              Speebo
      -

            	
              2120
      Bethel Road

            

    

     

    
      	
               
      

            	
              Lansdale
      PA 19446 USA

            

    

     

    
      	
               
      

            	
              Attention:  Perry
      Leopold

            

    

     

    
      	
               
      

            	
              Fax
      No.: 215-661-8959

            

    

     

    All
notices, communications and statements required, permitted or contemplated
hereunder shall be in writing, and shall be delivered as follows:

     

    
      	
              (a)  

            	
              by
      personal service on a Party at the address of such Party set out above, in
      which case the item so served shall be deemed to have been received by
      that Party when personally served;

            

    

     

    
      	
              (b)  

            	
              by
      facsimile transmission to a Party to the fax number of such Party set out
      above, in which case the item so transmitted shall be deemed to have been
      received by that Party when transmitted;
or

            

    

     

    
      	
              (c)  

            	
              except
      in the event of an actual or threatened postal strike or other labor
      disruption that may affect mail service, by mailing first class registered
      post, postage prepaid, to a Party at the address of such Party set out
      above, in which case the item so mailed shall be deemed to have been
      received by that Party on the fifth day following the date of
      mailing.

            

    

     

    A Party
may from time to time change its address for service or its fax number or both
by giving written notice of such change to the other Party.

     

    
      	
              20.  

            	
              CURRENCY

            

    

     

    All
references to currency herein shall be deemed to be United States currency,
unless otherwise indicated.

     

    
      	
              21.  

            	
              EXECUTION
      BY COUNTERPART AND FACSIMILIE

            

    

     

    
      	
              (a)  

            	
              This
      Agreement may be executed in counterpart, no one copy of which need be
      executed by the Parties.  A valid and binding contract shall
      arise if and when counterpart execution pages are executed and delivered
      by the Parties

            

    

     

    
      	
              (b)  

            	
              The
      Parties will be entitled to rely upon delivery by facsimile machine of
      executed copies of the executed Agreement will be legally effective to
      create a valid and binding agreement between the Parties in accordance
      with the terms hereof.

            

    

     

    IN
WITNESS WHEREOF the Parties hereto have duly executed this Agreement as of the
day and year written above.

     

    SPEEBO
INC.

     

    

     

    

     

    Per: _/s/
Perry Leopold___________________

     

    Perry
Leopold, CEO

     

    

     

    MORGAN MINING
CORP

     

    

     

    Per:
___/s/ Robert Thayer________________

     

                  Robert
Thayer, President

     

    

     

    

     

    

     

    Witness

     

    

     

    
      	
              1.  

            	 

    

     

    
      This is
Schedule "A" attached to and forming part of a Acquisition Agreement made as of
the 6th day
of August, 2009 between SPEEBO
INC and MORGAN MINING
CORP.

    

    

     

    ACQUISITION
LANDS

     

    

     

    

    
      	
            
	
              Tenure
    Number

            	
              Type

            	
              Claim Name

            	
              Good Until

            	
              Area (ha)

            
	
              601706

            	
              Mineral

            	
              MOUNT
      VAUGHAN

            	
              20100327

            	
              375.225

            
	
              601734

            	
              Mineral

            	
              CRATER
      CREEK

            	
              20100327

            	
              407.872

            
	
              601735

            	
              Mineral

            	
              CRATER
      CREEK 2

            	
              20100327

            	
              195.765

            

    

    
      	
              Tenure
    Number

            	
              Type

            	
              Claim Name

            	
              Good Until

            	
              Area (ha)

            
	
              601706

            	
              Mineral

            	
              MOUNT
      VAUGHAN

            	
              20100327

            	
              375.225

            
	
              601734

            	
              Mineral

            	
              CRATER
      CREEK

            	
              20100327

            	
              407.872

            
	
              601735

            	
              Mineral

            	
              CRATER
      CREEK 2

            	
              20100327

            	
              195.765

            

    

    Total
Area: 978.862 ha

    
    

    

     

    This is
Schedule "B" attached to and forming part of a Acquisition Agreement made as of
the 6th day
of August, 2009 between SPEEBO
INC and MORGAN MINING
CORP.

     

    
      

    

    NET SMELTER RETURNS ROYALTY
AGREEMENT

     

    THIS
AGREEMENT made as of the 6th day
of August, 2009

     

    BETWEEN:

     

    _ MORGAN MINING
CORP,

     

     (hereinafter
called the "Owner");

     

    - and
-

     

    _ SPEEBO,
INC.,

     

    (hereinafter
called "Royalty Holder").

     

    WHEREAS
pursuant to a Acquisition agreement dated August 6, 2009 between Speebo Inc and
MORGAN MINING CORP (the "Acquisition Agreement"),  the Owner has
acquired an undivided 100% interest in the Acquisition Lands;

     

    AND
WHEREAS pursuant to the Acquisition Agreement, the Owner shall grant the Royalty
Holder the Net Smelter Royalty on all production from the Acquisition
Lands;

     

    NOW
THEREFORE that in consideration of the Acquisition Agreement, and the mutual
covenants contained in this Agreement the Parties agree as follows:

     

    
      	
              1.  

            	
              DEFINITIONS

            

    

     

    In this
Agreement, unless the context otherwise requires:

     

    
      	
              (a)  

            	
              "Agreement"
      means this Net Smelter Returns Royalty
  Agreement;

            

    

     

    
      	
              (b)  

            	
              "Commencement of
      Commercial Production"
means:

            

    

     

    
      	
              (i)  

            	
              If
      a Mill is located on the Acquisition Lands, the last day of a period of
      forty (40) consecutive days in which for not less than thirty (30) days
      such Mill processed ore from the Acquisition Lands at seventy-five percent
      (75%) of its rated concentrating capacity,
or

            

    

     

    
      	
              (ii)  

            	
              If
      no Mill is located on the Acquisition Lands, the last day of the first
      period of thirty (30) consecutive days during which ore has been shipped
      from the Acquisition Lands on a reasonably regular basis for the purposes
      of earning revenues, but no period of time during which ore or concentrate
      is shipped from the Acquisition Lands for testing purposes, and no period
      of time during which milling operations are undertaken as initial tune-up,
      shall be taken into account in determining the date of Commencement of
      Commercial Production;

            

    

     

    
      	
              (c)  

            	
              "Acquisition
      Lands" means those lands as set out in Schedule "A" of the
      Acquisition Agreement;

            

    

     

    
      	
              (d)  

            	
              "Mill" means the
      crusher, concentrator and other processing facilities constructed on or in
      proximity to the Acquisition Lands and used for the processing of
      production from the Acquisition Lands, whether or not in conjunction with
      or after production from any other mineral
  property.

            

    

     

    
      	
              (e)  

            	
              "Net Smelter
      Returns" shall mean the aggregate of all payments from a smelter,
      Reduction Works, refinery or other processor or bona fide purchaser
      received for ores, concentrates or other products and minerals produced
      from the Acquisition Lands after the deduction for all the following
      costs, without duplication, related to such
  payments:

            

    

     

    
      	
              (i)  

            	
              all
      charges by a smelter, Reduction Works, refinery or purchaser, including,
      selling charges, treatment, smelting, or other Reduction Works charges,
      penalties and all other deductions and expenses, but excluding all charges
      by a Mill or incurred by the process or the milling of
  ore,

            

    

     

    
      	
              (ii)  

            	
              all
      costs of transportation (except transportation costs associated with
      moving material to an off-site Mill) incurred on all ores, concentrates or
      other products and minerals produced, whether transported by the Owner or
      a third party and including charges by common or contract carriers,
      and

            

    

     

    
      	
              (iii)  

            	
              the
      amount of all federal and provincial taxes, but not income tax, imposed
      upon or in connection with removal or sale of ores, concentrates or other
      products and minerals, other than federal and provincial income
      tax;

            

    

     

    
      	
              (f)  

            	
              "Party" means a
      party to this Agreement "Parties" means all parties to this
      Agreement;

            

    

     

    
      	
              (g)  

            	
              "Reduction
      Works" means any works in which concentrated, upgraded or
      beneficiated minerals are refined;
and

            

    

     

    
      	
              (h)  

            	
              this Agreement",
      "herein", "hereto", "hereof" and similar expressions mean and refer
      to this Agreement;

            

    

     

    
      	
              2.  

            	
              NET
      SMELTER ROYALTY

            

    

     

    As of the
Commencement of Commercial Production, the Owner shall pay to the Royalty Owner
two percent (2.0%) of Net Smelter Returns (the "Net Smelter Returns
Royalty").

     

    
      	
              3.  

            	
              CLAW
      BACK

            

    

     

    The Owner
may, at any time, elect to acquire 60% of the Net Smelter Returns Royalty on
payment of US$ 1,000,000.00 to the Royalty Owner.

     

    
      	
              4.  

            	
              PAYMENT

            

    

     

    Payments
on account of the Net Smelter Returns Royalty shall be made by the Owner monthly
on or before the first day of each calendar month following the month in which
settlement is made by smelter or other purchaser of ores, concentrates or other
products and minerals produced from the Acquisition Lands, and each such payment
shall be accompanied by a complete copy of settlement schedules received from
the said smelter or other purchaser.

     

    
      	
              5.  

            	
              SALES
      TO AN AFFILILATE

            

    

     

    In the
event that the ores, concentrates or other products and minerals are sold to, or
are treated at, a smelter or Reduction Works owned or operated by the Owner or
any "affiliate" (as defined in the Business Corporations Act
(British Columbia)) of the Owner, the prices received, and the charges levied
for processing services, shall be included in the calculations used to compute
Net Smelter Returns, but the prices received shall not be less than those which
could be received if negotiated on an arm’s length basis, and the charges shall
not exceed the average to the highest and lowest charges charged for similar
processing services at the nearest two smelters or Reduction Works in which
ores, concentrates or other products and minerals are sold to any person or
corporation dealing at arm’s length with the Owner.

     

    
      	
              6.  

            	
              RECORDS
      AND AUDIT

            

    

     

    The Owner
shall keep separate, complete and accurate records pertaining to the calculation
of the royalty. The Royalty Holder shall bear the right, at all reasonable times
and upon reasonable notice to the Owner to audit books and records of the Owner
with respect to determination of the amounts due on account of the Net Smelter
Returns Royalty. In the event that any such audit reveals no significant
variance from the Owner’s calculations, the cost of such audit shall be borne by
the Royalty Holder. If, however, the audit reveals a significant variance from
the Owner’s calculations, the Owner shall be responsible for paying interest on
the amount of any shortfall at the prime rate plus 2% and in addition shall
reimburse the Royalty Holder for the costs of conducting the audit. A
significant variance is defined hereunder as a variance which results in an
additional amount becoming payable to the Royalty Holder, which amount is
equal  to or greater than the cost of conducting the audit which
revealed the variance.

     

    
      	
              7.  

            	
              FURTHER
      ASSURANCES

            

    

     

    Each
Party will, from time to time and at all times hereafter upon request, without
further consideration, do such further acts and deliver all such further
assurances, deeds and documents as shall be reasonably required in order to
fully perform and carry out the terms of this Agreement.

     

    
      	
              8.  

            	
              GOVERNING
      LAW

            

    

     

    This
Agreement shall, in all respects, be subject to, interpreted, construed and
enforced in accordance with and under the laws of the Province of British
Columbia and applicable laws of Canada and shall, in all respects, be treated as
a contract made in the Province of British Columbia.  The Parties
irrevocably attorn and submit to the exclusive jurisdiction of the courts of the
Province of British Columbia and courts of appeal therefrom in respect of all
matters arising out of or in connection with this Agreement.

     

    
      	
              9.  

            	
              ENUREMENT

            

    

     

    This
Agreement shall be binding upon and shall enure to the benefit of the Parties
and their respective administrators, trustees, receivers, successors and
assigns.

     

    IN
WITNESS WHEREOF the Parties hereto have duly executed this Agreement as of the
day and year written above.

     

    SPEEBO
INC.

     

    

     

    

     

    Per:
___/s/ Perry Leopold__________________

     

    Perry
Leopold, CEO

     

    

     

    MORGAN MINING
CORP

     

    

     

    Per:
___/s/ Robert Thayer__________________

     

                  Robert
Thayer, President

     

    

     

    

     

    

     

    Witness

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