Representations and Warranties Title to Assets. INDEMNITIES 2 3.1 Representations and Warranties of Both Participants 2 3.2 Disclosures 2 3.3 Record Title 3 3.4 Loss of Title 3 Article 4 RELATIONSHIP OF THE PARTICIPANTS 3 4.1 No Partnership 3 4.2 Tax Operator 3 4.3 Other Business Opportunities 3 4.4 Waiver of Rights to Partition or Other Division of Assets 3 4.5 Transfer or Termination of Rights to Properties 3 4.6 Implied Covenants 3 4.7 No Third Party Beneficiary Rights 4 Article 5 CONTRIBUTIONS BY PARTICIPANTS 4 5.1 Initial Contributions 4 Article 6 INTERESTS OF PARTICIPANTS 4 6.1 Initial Participating Interests 4 6.2 Changes in Participating Interests 4 6.3 Documentation of Adjustments to Participating Interests 5 6.4 Guarantee of Kazco Loan 5 Article 7 MANAGER 5 7.1 Appointment 5 7.2 Powers and Duties of Manager 5 7.3 Resignation 6 7.4 Payments To Manager 6 Article 8 WITHDRAWAL AND TERMINATION 6 8.1 Termination by Expiration or Agreement 6 8.2 Withdrawal 6 8.3 Disposition of Assets on Termination 6 8.4 Continuing Authority 6
Representations and Warranties Title to Assets. INDEMNITIES 8 3.1 Representations and Warranties of Both Participants 8 3.2 Representations and Warranties of Both Participants as to Properties 9 3.3 Disclosures 11 3.4 Record Title 11 3.5 Loss of Title 11 3.6 Royalties, Production Taxes and Other Payments Based on Production 11 3.7 Indemnities/Limitation of Liability 12
Representations and Warranties Title to Assets. 34- 10.1 Capacity of Members...........................................-34- 10.2 Representations and Warranties of Each Member.................-35- 10.3 Joint Loss of Title...........................................-36- 10.4 Compliance with Agreements....................................-36- 10.5 Review of Title...............................................-36- ARTICLE 11. MEMBERS' DEFAULTS AND REMEDIES................................-37- 11.1 Events of Default.............................................-37- 11.2 Notice of Default.............................................-37- 11.3 Opportunity to Cure...........................................-37- 11.4 Rights upon Default...........................................-38- 11.4.1 Loan................................................-38- 11.4.2 Dilution............................................-38- 11.4.3 Termination.........................................-38- 11.5 Remedies Not Exclusive........................................-38-
Representations and Warranties Title to Assets. INDEMNITIES 2 3.1 Representations and Warranties of the Members 3 3.2 Representations and Warranties of Patricx 3 3.3
Representations and Warranties Title to Assets. INDEMNITIES 3 3.1 Representations and Warranties of Each Participant 3 3.2 Representations and Warranties of EML and G8 4 3.3 Disclosures 6 3.4 Record Title 6 3.5 Loss of Title 6 3.6 Royalties, Production Taxes and Other Payments Based on Production 6 3.7 Indemnities/Limitation of Liability 6 3.8 Investment 8 ARTICLE IV RELATIONSHIP OF THE PARTICIPANTS 9 4.1 No Partnership 9 4.2 Federal Tax Elections and Allocations 9 4.3 Intentionally Left Blank 9 4.4 Intentionally Left Blank 9 4.5 Other Business Opportunities 9 4.6 Waiver of Rights to Partition or Other Division of Assets 10 4.7 Transfer or Termination of Rights to Properties 10 4.8 Implied Covenants 10 4.9 No Third Party Beneficiary Rights 10 Page
Representations and Warranties Title to Assets. 22 2.1. Representations and Warranties 22 2.2. Covenants 23 2.3. Title to Wxxxxx Assets 23 3. PURPOSES AND TERM 24 3.1. Purposes 24 3.2. Effective Date and Term 25 4. RELATIONSHIP OF THE CO-OWNERS 25 4.1. No Partnership 25 4.2. Limited Recourse and Several Liability 26 4.3. Other Business Opportunities 26 4.4. Taxation / Accounting 27 4.5. Power of Attorney 27 5. INTERESTS OF CO-OWNERS 28 5.1. Initial Contributions 28 5.2. Initial Participation Percentages 29 5.3. Share of Generation and CPA Adjustments Reflect Participation Percentages 29 5.4. Changes in Participation Percentages 29 5.5. Continuing Liabilities Upon Adjustments of Participation Interests 29 5.6. BC Hydro Operating Instructions 30 6. OPERATING COMMITTEE 30 6.1. Organization and Composition of Operating Committee 30 6.2. Decisions 30 6.3. Meetings 30 6.4. Written Consent Resolutions 31 6.5. Operating Committee Oversight 32 6.6. Matters Requiring Majority Approval 32 6.7. Matters Requiring Unanimous Approval (Subject to Resolution by Third Party Referee) 33 6.8. Matters Requiring Unanimous Approval (Not Subject to Resolution by Third Party Referee) 36 6.9. Appointment and Powers of Sub-Committees 37 6.10. Operating Procedures 38 6.11. Accounting Procedure 38
Representations and Warranties Title to Assets. INDEMNITIES 5 3.1 Representations and Warranties of the Members 5 3.2 Representations and Warranties of GPXM 6 3.3 Disclosures 8 3.4 Loss of Title 9 3.5 Limitation of Liability 9 3.6 Indemnification 9 ARTICLE IV INTERESTS OF MEMBERS 10 4.1 Continuing Liabilities Upon Adjustments of Ownership Interests 10 4.2 Continuing Obligations and Environmental Liabilities 10 4.3 Grant of Lien and Security Interest 11 4.4 Subordination of Interests 11 ARTICLE V RELATIONSHIP OF THE MEMBERS 11 5.1 Transfer or Termination of Rights 11 5.2 Abandonment and Surrender of Properties 11 5.3 Supplemental Business Arrangement 12 5.4 Implied Covenants 12 5.5 No Third Party Beneficiary Rights 12 ARTICLE VI ACQUISITIONS WITHIN AREA OF INTEREST 12 6.1 General 12 6.2 Notice to Non-Acquiring Member 12 6.3 Option Exercised 13 6.4 Option Not Exercised 13 6.5 Non Compete Covenants 13 ARTICLE VII DISPUTES 13 7.1 Governing Law 13 7.2 Forum Selection 13 7.3 Arbitration 14 7.4 Dispute Resolution 14 ARTICLE VIII GENERAL PROVISIONS 14 8.1 Notices 14 8.2 Gender 16 8.3 Currency 16 8.4 Headings 16 8.5 Waiver 16 8.6 Modification 16 8.7 Force Majeure 16 8.8 Rule Against Perpetuities 17 8.9 Further Assurances 17 8.10 Entire Agreement; Successors and Assigns 17 8.11 Counterparts 00 Xxxxxxxxxxx Xxxxxxxxxx 1 – Quitclaim Deed Attachment 2 – Xxxx of Sale Attachment 3 – LLC Agreement Attachment 4 – Disclosure Schedule MEMBERS’ AGREEMENT OF THE MEMBERS OF MINERAL RIDGE GOLD, LLC a Nevada Limited Liability Company This Members’ Agreement (the “Agreement”) is made as of December 31, 2009 (“Effective Date”) between Golden Phoenix Minerals, Inc., a Nevada corporation (“GPXM”), the address of which is 0000 Xxxx Xxxxxx Xxx, #102, Sparks, Nevada, 89434, Scorpio Gold (US) Corporation, a Nevada corporation (“Scorpio US”), the address of which is 000 Xxxxxxx Xxxxxx, Xxx x’Or, Quebec, X0X 0X0, Xxxxxx and Scorpio Gold Corporation, a British Columbia corporation (“Scorpio Gold”) the address of which is 000 Xxxxxxx Xxxxxx, Xxx x’Xx, Xxxxxx, X0X 0X0, Xxxxxx.
Representations and Warranties Title to Assets. INDEMNITIES 3 3.1 Representations and Warranties of Both Participants 3 3.2 Representations and Warranties of Canyon 3 3.3 Disclosures 5 3.4 Record Title 5 3.5 Loss of Title 5 3.6 Royalties, Production Taxes and Other Payments Based on Production 6 3.7 Indemnities/Limitation of Liability 6
Representations and Warranties Title to Assets. 5 2.1. Capacity of Participants .................................... 5 2.2. Representations and Warranties Relating to Property.......... 5 2.3. Remedies for Breach of Representations and Warranties of Title to the Properties.................................. 6 2.3.1. Loss of Title ....................................... 6 2.3.2. Less than 100% Interest.............................. 7 2.3.3. Third Party Claims................................... 7 2.4. Disclosures.................................................. 7 2.5.
Representations and Warranties Title to Assets. 2.1. Capacity of Participants Each of the parties hereto represents and warrants as follows:
