SALE, PURCHASE AND LEASE AGREEMENT
Exhibit
2
This
Agreement is entered into between Xxxxxxxx Xxxx Resources Inc.
("Company,"
"Seller,"
or "Lessee," as the context may require), a Nevada corporation, and
Father
Xxxxxxx
Xxxxxx, an individual and a resident of California ("Buyer" or
"Lessor")
The
parties acknowledge and agree:
1
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Company;
Sources of Funds Company
is an exploratory stage mining company.
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It
was incorporated in 1986, but has never earned any revenue from its
operations.
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Its
only source of funds has been from the sale of its stock to investors,
and
it has
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had
periodic sales in public offerings and private placements over the
years.
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2
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Buyer;
Prior Investments Buyer
is the president and chief executive officer of
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Company.
He is also acting chief financial officer and a director; he owns
approxi-
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mately
61 percent of its outstanding common stock. Since July 2004, Buyer
has
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provided
100 percent of the funds Company has received from all sources; in
that
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period,
he has invested $418,200 in exchange for shares of stock.
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3
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Offer
to Purchase and Leaseback Buyer
offered to provide funds to Company
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by
means of a purchase from Company and leaseback to Company of all
Company's
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Equipment
at its Amargosa facility. The purchase price for the Equipment
would
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be
$50,000.00, and it would be leased back at $1.00 per month, for a
period
of
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approximately
20 months.
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4
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Equipment
The
Equipment subject to this transaction consists of all the
mining
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equipment,
material processing equipment, and related items owned by
Company
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located
at its facility at 0000 Xxxxxxxxxx Xxxx, Xxxxxxxx Xxxxxx, XX 00000,
as
of
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July
31, 2006, except the large Xxxxx dryer purchased by Xxxx Xxxxx for
the
Com-
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pany.
A list of the Equipment is attached to this Agreement, but may not
be
defini-
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tive
(a few smaller items may have been omitted or may be included but
no
longer
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in
the possession of the Company). In this section and throughout the
Agreement,
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"mining"
includes exploratory and testing activities.
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5
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Term
of Lease
The lease will commence at the closing (but not later
than
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August
31, 2006), and will continue until March 31, 2008 ("Expiration Date"),
at
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which
time it will terminate. (This is the same date as the date on which
the
lease
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of
the premises at that location from Buyer to Company
expires.)
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6
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Payment
of Sale Price; Rental
The full price of $50,000.00 is payable in full
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SP&LA
-- PAGE 2
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1
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at
the
closing. The rental of $1.00 per month will be payable in advance, as
pro-
vided
in
this section. Payment for the first month (or fraction of a month) and
the
next
two
months shall be payable at closing. The rent for each subsequent
three-
month
period shall be payable on the first day of the third month following
the
month
of
the closing and on the first day of every third month thereafter,
as
follows:
Payment
Date
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Amount
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Period
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-----------------
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----------
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-------------
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Aug
1, 2006*
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$3.00
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Aug,
Sep, Oct 2006
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Nov
1, 2006
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3.00
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Nov,
Dec 2006; Jan 2007
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Feb
1, 2007
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3.00
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Feb,
Mar, Apr 2007
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May
1, 2007
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3.00
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May,
Jun, Jul 2007
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Aug
1, 2007
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3.00
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Aug,
Sep, Oct 2007
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Nov
1, 2007
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3.00
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Nov,
Dec 2007; Jan 2008
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Feb
1, 2008
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2.00
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Feb,
Mar 2008
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*
or the closing date, if later
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7
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Initial
Payment on Purchase Purchase
On July 17, 2006, Buyer provided funds
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of
$20,000.00 to the company, and requested that the funds be recorded
as an
advance,
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to
be treated as a partial payment toward the contemplated purchase
of
Company's
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equipment
located at its facility in Amargosa Valley. This amount will be credited
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to
Buyer at closing.
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8
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Purchase
"As Is" Buyer
purchases the Equipment "as is." Company makes no
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guarantee
or warranty of any kind with respect to the condition of any item
of
the
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Equipment
at the time of purchase or as to its suitability for any purpose.
Company
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makes
no guarantee or warranty that any item of Equipment (i) will perform
as
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designed
or intended, or (ii) will last for any period of time, including
the
duration
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of
the lease. If any time of Equipment fails to perform or ceases to
perform
as Com-
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pany
deems necessary for the intended and efficient use of the facility,
Buyer/Lessor
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shall
not have any obligation to repair or replace it. Company shall have
the
right to
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repair
any such item of Equipment at its own expense, but no such repair
shall
give
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Company
any greater right with respect to the item that it had prior to the
repair, that is,
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it
shall not acquire any ownership interest in the item.
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9
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New
Equipment Company
has the right to acquire any other item or items of new
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SP&LA
-- PAGE 3
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2
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or
used
equipment that it desires to use in its mining and mineral processing
business;
and
this
right includes the right to install it and use it as a separate unit or as
an
integral
component
of a system of multiple items of equipment. Company has the right to
re-
move
any
such equipment at the expiration of the Lease.
10
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Maintenance
Company shall provide all normal maintenance on the Equipment
for
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the
duration of the Lease
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11
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Property
Taxes
Company shall be responsible for all personal property taxes
im-
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posed
on the Equipment for the duration of the Lease.
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12
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Casualty
and Liability Insurance
Company shall be responsible for providing casu-
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alty
and liability insurance on the property as is customary in the
industry
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13
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Applicable
Law
All the Equipment covered by thie Agreement is located and
will
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remain
in the State of Nevada, and the Agreement will be governed in all
respects
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by
the Law of Nevada.
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In
witness whereof,
the
parties executed this Agreement on September
5,
2006
Father
Xxxxxxx Xxxxxx
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Xxxxxxxx
Xxxx Resources Inc.
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__/s/
Father Xxxxxxx Ofiesh_
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By
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/s/
Xxxxx Xxxxx
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Xxxxx
Xxxxx
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Its
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_Secretary______________
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