<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-8
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933
UNITED STATES MINING & EXPLORATION, INC.
---------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Utah 87-0401942B
(State or Other Jurisdiction (IRS Employer ID No.)
of incorporation or organization)
5525 South 900 East, #110
Salt Lake City, Utah 84117
--------------------
(Address of Principal Executive Offices)
(801) 262-8844
--------------
(Issuer's Telephone Number, including Area Code)
Consultant Compensation Agreement No. 1
---------------------------------------
(Full Title of the Plan)
Sheryl Ross
450 South 500 East, #205
Salt Lake City, Utah 84111
---------------------
(Name and Address of Agent for Service)
(801) 363-7411
--------------
(Telephone Number, Including Area Code, of Agent for Service)
IF ANY OF THE SECURITIES BEING REGISTERED ON THIS FORM ARE TO BE OFFERED ON A
DELAYED OR CONTINUOUS BASIS PURSUANT TO RULE 415 UNDER THE SECURITIES ACT OF
1933, OTHER THAN SECURITIES OFFERED ONLY IN CONNECTION WITH DIVIDEND OR
INTEREST REINVESTMENT PLANS, CHECK THE FOLLOWING BOX: [ ]
CALCULATION OF REGISTRATION FEE
- -----------------------------------------------------------------------------
Title of Each Proposed Proposed
Class of Maximum Maximum Amount of
Securities to Amount to Price per Aggregate Registration
be Registered be Registered Unit/Share Offering Price Fee
- -----------------------------------------------------------------------------
$0.001 par
value common
voting stock 276,410 $0.01 $2,764 $0.84
- -----------------------------------------------------------------------------
1 Calculated according to Rule 230.457(h) of the Securities
and Exchange Commission, based upon the exercise price of the
options covering the underlying common stock to be
issued under the Plan.
PART II
Information Required in the Registration Statement
--------------------------------------------------
Item 3. Incorporation of Documents by Reference.
- -------------------------------------------------
The following documents are incorporated by reference into this
Registration Statement and made a part hereof, to wit:
(a) The Registrant's 10-SB Registration Statement filed with the
Securities and Exchange Commission (the "Commission") on or
about July 17, 1997, its 10-SB-A1 filed with the
Commission on or about October 29, 1997, and its 10-SB-A2,
filed on or about November 5, 1997;
(b) All other reports filed pursuant to Sections 13(a) or 15(d)
of the Securities Exchange Act of 1934 (the "Exchange Act")
since the effective date of its 10-SB Registration
Statement, which was September 15, 1997;
(c) Not applicable.
All documents subsequently filed by the Registrant pursuant to
Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act, prior to the filing
of a post-effective amendment which indicates that all securities offered have
been sold or which deregisters all securities then remaining unsold, shall
also be deemed to be incorporated by reference into this Registration
Statement and made a part hereof from the date of the filing of such
documents.
Item 4. Description of Securities.
- -----------------------------------
The Registrant is authorized to issue one class of securities, being
comprised of $0.001 par value common voting stock.
The holders of the $0.001 par value common stock of the Registrant
have traditional rights as to voting, dividends and liquidation. All shares
of common stock are entitled to one vote on all matters; there are no
pre-emptive rights and cumulative voting is not allowed. The common stock is
not subject to redemption and carries no subscription or conversion rights.
In the event of liquidation of the Registrant, the holders of common stock are
entitled to share equally in corporate assets after satisfaction of all
liabilities.
Item 5. Interest of Named Experts and Counsel.
- -----------------------------------------------
Leonard W. Burningham, Esq., who has prepared this Registration
Statement, the Plan and an Opinion regarding the authorization, issuance and
fully-paid and non-assessable status of the securities covered by this
Registration Statement, owns no common stock of the Registrant and is not
deemed to be an affiliate of the Registrant or a person associated with an
affiliate of the Registrant; however, Mr. Burningham is to receive 32,000 of
the shares of the Registrant's common stock being registered hereby. See Item
8 below.
Item 6. Indemnification of Directors and Executive Officers.
- ------------------------------------------------------------
Section 16-10a-902(1) of the Utah Revised Business Corporation
Act authorizes a Utah corporation to indemnify any director against
liability incurred in any proceeding if he or she acted in good faith and in
a manner he or she reasonably believed to be in or not opposed to the best
interests of the corporation, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe his or her conduct was
unlawful.
Section 16-10a-902(4) prohibits a Utah corporation from indemnifying
a director in a proceeding by or in the right of the corporation in which
the director was adjudged liable to the corporation or in a proceeding in
which the director was adjudged liable on the basis that he or she improperly
received a personal benefit. Otherwise, Section 16-10a-902(5) allows
indemnification for reasonable expenses incurred in connection with a
proceeding by or in the right of a corporation.
Unless limited by the Articles of Incorporation, Section
16-10a-905 authorizes a director to apply for indemnification to the court
conducting the proceeding or another court of competent jurisdiction.
Section 16-10a-907(1) extends this right to officers of a corporation as
well.
Unless limited by the Articles of Incorporation, Section
16-10a-903 requires that a corporation indemnify a director who was
successful, on the merits or otherwise, in defending any proceeding to which
he or she was a party against reasonable expenses incurred in
connection therewith. Section 16-10a-907(1) extends this protection to
officers of a corporation as well.
Pursuant to Section 16-10a-904(1), the corporation may advance a
director's expenses incurred in defending any proceeding upon receipt of an
undertaking and a written affirmation of his or her good faith belief that he
or she has met the standard of conduct specified in Section 16-10a-902.
Unless limited by the Articles of Incorporation, Section 16- 10a-907(2)
extends this protection to officers, employees, fiduciaries and agents of a
corporation as well.
Regardless of whether a director, officer, employee, fiduciary or agent
has the right to indemnity under the Utah Revised Business Corporation Act,
Section 16-10a-908 allows the corporation to purchase and maintain insurance
on his or her behalf against liability resulting from his or her corporate
role.
Article VIII of the Company's Articles of Incorporation provides for
the mandatory indemnification and reimbursement of any director or executive
officer for actions or omissions in such capacity, except for claims or
liabilities arising out of his or her own negligence or willful misconduct.
Item 7. Exemption from Registration Claimed.
- ---------------------------------------------
None.
Item 8. Exhibits.
- ------------------
Exhibit
Number
- ------
5 Opinion regarding Legality
23.1 Consent of Leonard W. Burningham, Esq.
23.2 Consent of Mantyla, McReynolds & Associates
Certified Public Accountants
99 Consultant Compensation Agreement No. 1
Item 9. Undertakings.
- ----------------------
The undersigned Registrant hereby undertakes:
(a) (1) To file, during any period in which offers or sales are
being made, a post-effective amendment to this Registration Statement:
(i) To include any prospectus required by Section
10(a)(3) of the Securities Act of 1933 (the
"1933 Act");
(ii) To reflect in the prospectus any facts or events
arising after the effective date of the
Registration Statement (or the most recent
post-effective amendment thereof) which,
individually or in the aggregate, represent a
fundamental change in the information set forth
in the Registration Statement; and
(iii) To include any additional or changed material
information with respect to the plan of
distribution not previously disclosed in the
Registration Statement or any material change to
such information in the Registration Statement;
provided, however, only to the extent required
by the general rules and regulations of the
Commission.
(2) That, for the purpose of determining any liability under
the 1933 Act, each such post-effective amendment shall be
deemed to be a new Registration Statement relating to the
securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial
bona fide offering thereof.
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which
remain unsold at the termination of the offering.
(b) That for purposes of determining any liability under the 1933
Act, each filing of the Registrant's annual report pursuant to
Section 13(a) or Section 15(d) of the Exchange Act (and, where
applicable, each filing of an employee benefit plan's annual
report pursuant to Section 15(d) of the Exchange Act) that is
incorporated by reference in the Registration Statement shall
be deemed to be a new Registration Statement relating to the
securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide
offering thereof.
(h) Insofar as indemnification for liabilities arising under the
1933 Act, as amended, may be permitted to directors, executive
officers and controlling persons of the Registrant as outlined
above or otherwise, the Registrant has been advised that in the
opinion of the Commission, such indemnification is against
public policy as expressed in the 1933 Act and is, therefore,
unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a director,
executive officer or controlling person of the Registrant in
the successful defense of any action, suit or proceeding) is
asserted by such director, executive officer or controlling
person in connection with the securities being registered, the
Registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a
court of appropriate jurisdiction the question of whether such
indemnification by it is against public policy as expressed in
the 1933 Act and will be governed by the final adjudication of
such issue.
SIGNATURES
Pursuant to the requirements of the 1933 Act, the Registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-8 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, on the date or dates appearing opposite the respective signatures
hereto.
REGISTRANT:
Date: 11/3/97. By /s/ Sheryl Ross
President and Director
Pursuant to the requirements of the 1933 Act, this Registration
Statement has been signed by the following persons (who constitute all
of the members of the Board of Directors of the Registrant) in the capacities
and on the date indicated.
Date: 11/3/97. By /s/ Sheryl Ross
President and Director
Date: 11/3/97. By /s/ Wayne R. Bassham
Vice President, Secretary and Director
<PAGE>
Securities and Exchange Commission File No. 0-22851
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
EXHIBITS
TO
FORM S-8
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933
UNITED STATES MINING & EXPLORATION, INC.
<PAGE>
EXHIBIT INDEX
Exhibit
Number
- -------
5 Opinion regarding Legality
23.1 Consent of Leonard W. Burningham, Esq.
23.2 Consent of Mantyla, McReynolds & Associates,
Certified Public Accountants
99 Consultant Compensation Agreement No. 1
<PAGE>
(Letterhead of Leonard W. Burningham, Esq.)
November 3, 1997
United States Mining & Exploration, Inc.
5525 South 900 East, Suite 110
Salt Lake City, Utah 84117
Re: Opinion concerning the legality of the securities to be issued
pursuant to the Registration Statement on Form S-8 to be filed
by United States Mining & Exploration, Inc., a Utah corporation
Board of Directors:
As counsel for United States Mining & Exploration, Inc., a Utah
corporation (the "Company"), and in connection with the issuance of 276,410
shares of the Company's $0.001 par value common stock (the "Securities") to
two individual consultants (the "Consultants") pursuant to a written
compensation agreement, a copy of which is incorporated herein by reference
(the "Consultant Compensation Agreement No. 1" [the "Plan"]), I have been
asked to render an opinion as to the legality of these Securities, which are
to be covered by a Registration Statement to be filed by the Company on Form
S-8 of the Securities and Exchange Commission (the "Commission"), and as to
which this opinion is to be filed as an exhibit.
As you are aware, I am also a participant in the Plan.
As you are also aware, no services to be performed and billed to you
which are in any way related to a "capital raising" transaction may be paid by
the issuance of Securities pursuant to the Plan.
In connection with rendering my opinion, which is set forth below,
I have reviewed and examined originals or copies of the following documents,
to-wit:
1. Articles of Incorporation and all amendments thereto;
2. By-laws;
3. Form 10-SB Registration Statement filed with the Securities and
Exchange Commission on July 17, 1997, and was effective September 15, 1997;
4. Form 10-SB-A1 Registration Statement filed with the Securities
and Exchange Commission on October 29, 1997;
5. Form 10-QSB Quarterly Report for the quarter ended September
30, 1997;
6. A copy of the Plan; and
7. The Unanimous Consent of the Board of Directors adopting the
Plan, designating the name of the Plan and the name, address and telephone
number of the Plan's Agent.
I have also examined various other documents, books, records,
instruments and certificates of public officials, directors, executive
officers and agents of the Company, and have made such investigations as I
have deemed reasonable, necessary or prudent under the circumstances. Also,
in rendering this opinion, I have reviewed various statutes and judicial
precedence as I have deemed relevant or necessary.
Further, as counsel for the Company, I have discussed the items
relied upon in rendering this opinion and the documents I have examined with
one or more directors and executive officers of the Company, and in all
instances, I have assumed the genuineness of all signatures, the legal
capacity of natural persons, the authenticity of all documents submitted to me
as originals, the conformity with the original documents of all documents
submitted to me as certified or photostatic copies and the authenticity of the
originals of such copies. I have further assumed that the recipients of these
Securities under the Plan will have paid the consideration required under the
terms of the Plan prior to the issuance of the Securities, and that none of
the services performed by the recipients shall be related to "capital raising"
transactions.
I have also provided the individual participants in the Plan with a
copy of the documents enumerated in paragraphs 3 through 7, inclusive, above.
Based upon the foregoing and in reliance thereon, it is my opinion
that, subject to the limitations set forth in the Plan, the Securities to be
issued pursuant to the Plan will, upon their issuance and delivery to the
recipients thereof, after receipt of full payment therefor, be deemed duly and
validly authorized, legally issued and fully paid and non-assessable. This
opinion is expressly limited in scope to the Securities described herein and
which are to be expressly covered by the above referenced Registration
Statement and does not cover any subsequent issuances of any securities to be
made in the future pursuant to any other plans, if any, pertaining to services
performed in the future. Any such transactions are required to be included in
a new Registration Statement or a post-effective amendment to the above
referenced Registration Statement, which will be required to include a revised
or a new opinion concerning the legality of the Securities to be issued.
Further, this opinion is limited to the corporate laws of the State
of Utah and the securities laws, rules and regulations of the United
States, and I express no opinion with respect to the laws of any other
jurisdiction.
I consent to the filing of this opinion with the Commission as an
exhibit to the above referenced Registration Statement; however, this opinion
is not to be used, circulated, quoted or otherwise referred to for any other
purpose without my prior written consent.
This opinion is based upon my knowledge of the law and facts as of
the date hereof, and I assume no duty to communicate with you with respect to
any matter which may hereafter come to my attention.
Yours very sincerely,
/s/ Leonard W. Burningham
cc: United States Mining & Exploration, Inc.
<PAGE>
(Letterhead of Leonard W. Burningham, Esq.)
November 3, 1997
U.S. Securities and Exchange Commission
450 5th Street, N.W.
Washington, D.C. 20549
Re: Consent to be named in the S-8 Registration Statement
of United States Mining & Exploration, Inc., a Utah corporation
(the "Registrant"), SEC File No. 002-97690-D, to be filed on or
about November 3, 1997, covering the registration and
issuance of 276,410 shares of common stock to two
individual consultants
Ladies and Gentlemen:
I hereby consent to be named in the above referenced Registration
Statement, and to have my opinion appended as an exhibit thereto.
Sincerely yours,
/s/ Leonard W. Burningham
cc: United States Mining & Exploration, Inc.
<PAGE>
[Letterhead of Mantyla, McReynolds & Associates]
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
---------------------------------------------------
November 3, 1997
United States Mining & Exploration, Inc.
5525 South 900 East, #110
Salt Lake City, Utah 84117
Re: Consent to be named in the S-8 Registration Statement
of United States Mining & Exploration, Inc., a Utah corporation
(the "Registrant"), SEC File No. 0-022851, to be filed on
or about November 3, 1997, covering the registration
and issuance of 276,410 shares of common stock to two
individual consultants
Gentlemen:
We hereby consent to the use of our report for the years ended March 31,
1997 and 1996, dated May 10, 1997, except as to Note 9, which is dated October
17, 1997, in the above referenced Registration Statement. We also consent to
the use of our name as experts in such Registration Statement.
/s/ Mantyla, McReynolds & Associates
Certified Public Accountants
cc: United States Mining & Exploration, Inc.
<PAGE>
CONSULTANT COMPENSATION AGREEMENT NO. 1
THIS CONSULTANT COMPENSATION AGREEMENT (the "Plan") is made this 3rd
day of November, 1997, among United States Mining & Exploration, Inc., a Utah
corporation ("U.S. Mining"); and Leonard W. Burningham, Esq. and Jeffrey D.
Jenson, who have executed and delivered this Plan by the execution and
delivery of the Counterpart Signature Pages which are designated as Exhibits
"A" and "B" hereof (collectively, the "Consultants").
WHEREAS, the Board of Directors of U.S. Mining has adopted a written
compensation agreement for compensation of two individual Consultants who are
natural persons; and
WHEREAS, U.S. Mining has engaged the Consultants to provide services
at the request of and subject to the satisfaction of its management; and
WHEREAS, the Consultants have provided services at the request and
subject to the approval of the management of U.S. Mining; and
WHEREAS, a general description of the nature of the services
performed and to be performed by the Consultants and the maximum value of such
services under this Plan are listed in the Counterpart Signature Pages; and
WHEREAS, U.S. Mining and the Consultants intend that this Plan and
the services performed hereunder shall be made, requested and performed in
such a manner that this Plan shall be a "written compensation agreement" as
defined in Rule 405 of the Securities and Exchange Commission ("Commission")
pursuant to which U.S. Mining may issue "freely tradeable" shares (except as
may me limited by "affiliate" status) of its common stock as payment for
services rendered pursuant to an S-8 Registration Statement to be filed with
the Commission by U.S. Mining;
NOW, THEREFORE, in consideration of the mutual covenants and
promises contained herein, it is agreed:
Section 1
Compensation Plan
1.1 Employment. U.S. Mining hereby employs the Consultants and the
Consultants hereby accept such employment, and have and will perform the
services requested by management of U.S. Mining to its satisfaction during the
term hereof. The services performed by the Consultants hereunder have been
and will be personally rendered by the Consultants, and no one acting for or
on
behalf of the Consultants, except those persons normally employed by the
Consultants in rendering services to others, such as secretaries, bookkeepers
and the like.
1.2 Independent Contractors. Regardless of the Consultants' status
as "employees" under Rule 405 of the Commission, all services rendered by the
Consultants hereunder have been rendered as independent contractors, and the
Consultants shall be liable for any FICA taxes, withholding or other similar
taxes or charges, and the Consultants shall indemnify and hold U.S. Mining
harmless therefrom; it is understood and agreed that the value of all such
items has been taken into account by the Consultants in computing the billable
rate for the services the Consultants have rendered and agreed to render to
U.S. Mining.
1.3 Term. All services performed at the request of U.S. Mining by
the Consultants shall have been performed within 120 days from the date
hereof, at which time this Plan shall terminate, unless otherwise provided
herein; provided, however, this Plan may be extended for an additional 120 day
period by written agreement of U.S. Mining and any of the Consultants.
1.4 Payment. U.S. Mining and the Consultants agree that U.S.
Mining shall pay the invoices of the Consultants for the services performed
under this Plan by the issuance of shares of its common stock (taking into
account the two for one forward split effective on October 31, 1997) at a
price of $0.01 per share; provided, however, such shares of common stock shall
be issued pursuant to and shall be subject to the filing and effectiveness of
a Registration Statement on Form S-8 covering such shares with the Commission.
1.5 Invoices for Services. On the completion of rendering the
services performed by the Consultants hereunder, each of the Consultants shall
provide U.S. Mining with a written invoice detailing the services duly
performed. Such invoice shall be paid by U.S. Mining in accordance with
Section 1.4 above, subject to the satisfaction of the management of U.S.
Mining that the services have been performed, and to the extent performed,
that the performance was in a satisfactory manner. The submission of an
invoice for the services performed by each of the Consultants shall be deemed
to be a subscription by the respective Consultants to purchase shares of
common stock of U.S. Mining at the price outlined in Section 1.4 above,
subject only to the filing and effectiveness of a Registration Statement on
Form S-8 covering such shares with the Commission.
1.6 Common Stock Price. To the extent deemed required or necessary
and for all purposes of this Plan, the Consultants shall have an "option"
covering such shares of common stock at the per share price set forth in
paragraph 1.4 above during the term hereof; the Consultants assume the risk of
any decrease in the per share price or value of the shares of common stock of
U.S. Mining that may be issued by U.S. Mining for services performed by the
Consultants hereunder, and the Consultants agree that any such decrease shall
in no way affect the rights, obligations or duties of the Consultants
hereunder.
1.7 Limitation on Services. None of the services rendered by the
Consultants and paid for by the issuance of shares of common stock of U.S.
Mining shall be services related to any "capital raising" transaction.
1.8 Delivery of Shares. On submission of an invoice for services
actually performed by the respective Consultants, and duly verified to the
satisfaction of U.S. Mining, and subject to the filing and effectiveness of a
Registration Statement on Form S-8 of the Commission covering such shares, one
or more stock certificates representing such shares shall be delivered to the
respective Consultants at the addresses listed on the Counterpart Signature
Pages, unless another address shall be provided to U.S. Mining in writing
prior to the issuance of such shares.
1.9 Adjustments in the Number of Shares of Common Stock and Price
Per Share. U.S. Mining and the Consultants agree that the per share price of
shares of common stock that may be issued by U.S. Mining to the Consultants
for services performed under this Plan has been arbitrarily set by U.S.
Mining; however, in the event U.S. Mining shall undergo a merger,
consolidation, reorganization, recapitalization, declare a stock dividend of
its shares of common stock or cause to be implemented a forward or reverse
stock split (the forward split of October 31, 1997, has already been taken
into effect) which affects the present number of issued and outstanding shares
of common stock of U.S. Mining prior to the issuance of shares to the
Consultants, that the per share price and the number of shares issuable to the
Consultants for services actually rendered hereunder after such event shall be
appropriately adjusted to reflect any such event.
1.10 Effective Date. The Effective Date of the Plan for each of the
Consultants shall be the date set forth on the respective Counterpart
Signature Pages.
Section 2
Representations and Warranties of U.S. Mining
U.S. Mining represents and warrants to, and covenants with, the
Consultants as follows:
2.1 Corporate Status. U.S. Mining is a corporation duly organized,
validly existing and in good standing under the laws of the State of Utah and
is licensed or qualified as a foreign corporation in all states in which the
nature of its business or the character or ownership of its properties makes
such licensing or qualification necessary.
2.2 Compensation Plan. The Board of Directors of U.S. Mining has
duly adopted a Compensation Plan as defined in Rule 405 of the Commission
pursuant to which U.S. Mining may issue "freely tradeable" shares of its
common stock as payment for services rendered, subject to the filing and
effectiveness of an S-8 Registration Statement to be filed with the Commission
by U.S. Mining.
2.3 Registration Statement on Form S-8. U.S. Mining shall engage
the services of a competent professional to prepare and file a Registration
Statement on Form S-8 with the Commission to cover the shares of common stock
to be issued under the Plan; shall cooperate with such professional in every
manner whatsoever to the extent reasonably required or necessary so that such
Registration Statement shall be competently prepared, which such Registration
Statement shall not contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements made therein,
in light of the circumstances under which they were made, not misleading, and
which such Registration Statement shall become effective immediately upon its
filing; such Registration Statement shall be prepared at the sole cost and
expense of U.S. Mining; and U.S. Mining will provide to the Consultants prior
to the issuance and delivery of any such shares of common stock a copy of such
Registration Statement, the Compensation Plan adopted by its Board of
Directors, all quarterly, annual or current reports or other documents
incorporated by reference into such Registration Statement and any other
similar reports filed or publicly disseminated following the effective date of
any such Registration Statement.
2.4 Federal and State Securities Laws, Rules and Regulations. U.S.
Mining shall fully comply with any and all federal or state securities laws,
rules and regulations governing the issuance of any such shares of common
stock.
2.5 Limitation on Services. U.S. Mining shall not request the
Consultants to perform any services in connection with any "capital raising"
transaction under this Plan.
2.6 Reports With the Commission. U.S. Mining is required to file
reports with the Commission pursuant to Section 13 of the Securities Exchange
Act of 1934, as amended (the "1934 Act"), and U.S. Mining has or will file
with the Commission all reports required to be filed by it forthwith, and
shall continue to file such reports with the Commission so long as required,
but for a period of not less than one year; and such reports are or will be
true and correct in every material respect.
2.7 Corporate Authority and Due Authorization. U.S. Mining has
full corporate power and authority to enter into this Plan and to carry out
its obligations hereunder. Execution of this Plan and performance by U.S.
Mining hereunder have been duly authorized by all requisite corporate action
on the part of U.S. Mining, and this Plan constitutes a valid and binding
obligation of U.S. Mining and performance hereunder will not violate any
provision of the Articles of Incorporation, Bylaws, agreements, mortgages or
other commitments of U.S. Mining.
Section 3
Representations and Warranties of the Consultants
Each of the Consultants represents and warrants to, and covenants
with, U.S. Mining as follows:
3.1 Employment. Each of the Consultants hereby accepts employment
by U.S. Mining for the services performed pursuant to this Agreement. The
services performed by the Consultants hereunder have been personally rendered
by the Consultants, and no one acting for or on behalf of the Consultants.
3.2 Accredited Investors. Each of the Consultants represents and
warrants that, by reason of income, net assets, education, background and
business acumen, the Consultants have the experience and knowledge to evaluate
the risks and merits attendant to an investment in shares of common stock of
U.S. Mining, either singly or through the aid and assistance of a competent
professional, and are fully capable of bearing the economic risk of loss of
the total investment of services; further, they are "accredited investors" as
that term is defined under the 1933 Act or the rules and regulations
promulgated thereunder.
3.3 Suitability of Investment. Prior to the execution of this
Plan, each of the Consultants shall have provided the services outlined in the
respective Counterpart Signature Pages to U.S. Mining, and the Consultants,
singly, or through the advice of a competent professional, fully believe that
an investment in shares of common stock of U.S. Mining is a suitable
investment for the Consultants.
3.4 Limitation on Services. None of the services rendered by the
Consultants and paid for by the issuance of shares of common stock of U.S.
Mining shall be services related to any "capital raising" transaction.
3.5 Authority and Authorization. Each of the Consultants has full
power and authority to enter into this Plan and carry out the obligations
hereunder. Execution of this Plan and performance by the Consultants
hereunder constitutes a valid and binding obligation of the Consultants and
performance hereunder will not violate any other agreement to which any of the
Consultants is a party.
Section 4
Indemnity
U.S. Mining and the Consultants agree to indemnify and hold the
other harmless for any loss or damage resulting from any misstatement of a
material fact or omission to state a material fact by the other contained
herein or contained in the S-8 Registration Statement of U.S. Mining to be
filed hereunder, to the extent that any misstatement or omission contained in
the Registration Statement was based upon information supplied by the other.
Section 5
Termination
Prior to the performance of services hereunder, this Plan may be
terminated (1) by mutual consent of U.S. Mining and the respective Consultants
in writing; (2) by either the Directors of U.S. Mining or the respective
Consultants if there has been a material misrepresentation or material breach
of any warranty or covenant by the other party; and (3) shall automatically
terminate at the expiration of the term hereof, provided, however, all
representations and warranties shall survive the termination hereof; provided,
further, however, that any obligation of U.S. Mining to pay for any services
actually rendered by the Consultants hereunder shall survive any such
termination.
Section 6
General Provisions
6.1 Further Assurances. At any time, and from time to time, after
the execution hereof, each party will execute such additional instruments and
take such action as may be reasonably requested by the other party to carry
out the intent and purposes of this Plan.
6.2 Notices. All notices and other communications hereunder shall
be in writing and shall be deemed to have been given if delivered in person or
sent by prepaid first-class registered or certified mail, return receipt
requested, as follows:
If to U.S. Mining: 5525 south 900 East, #110
Salt Lake City, Utah 84117
If to Consultants: The addresses listed on the
Counterpart Signature Pages
6.3 Entire Agreement. This Plan constitutes the entire agreement
between the parties and supersedes and cancels any other agreement,
representation, or communication, whether oral or written, between the parties
hereto relating to the transactions contemplated herein or the subject matter
hereof.
6.4 Headings. The section and subsection headings in this Plan
are inserted for convenience only and shall not affect in any way the meaning
or interpretation of this Plan.
6.5 Governing law. This Plan shall be governed by and construed
and enforced in accordance with the laws of the State of Utah, except to the
extent pre-empted by federal law, in which event (and to that extent only),
federal law shall govern.
6.6 Assignment. Neither U.S. Mining nor the Consultants can assign
any rights, duties or obligations under this Plan, and in the event of any
such assignment, such assignment shall be deemed null and void.
6.7 Counterparts. This Plan may be executed simultaneously in one
or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Plan effective
the day and year first above written.
UNITED STATES MINING & EXPLORATION, INC.,
a Utah corporation
By /s/ Sheryl Ross, President
<PAGE>
EXHIBIT "A"
CONSULTANT COMPENSATION AGREEMENT NO. 1
COUNTERPART SIGNATURE PAGE
THIS COUNTERPART SIGNATURE PAGE for that certain Consultant
Compensation Agreement No. 1 among United States Mining & Exploration, Inc.
and the undersigned Consultant is executed as of the date set forth
hereinbelow.
Consultant:
Leonard W. Burningham, Esq
455 East 500 South, Suite 205
Salt Lake City, Utah 84111
Date: November 3, 1997 /s/ Leonard W. Burningham
Number of Shares and
Maximum Value
of Services
General Description of Services to be Performed
Non-capital raising legal services. 32,000 shares
$320
<PAGE>
EXHIBIT "B"
CONSULTANT COMPENSATION AGREEMENT NO. 1
COUNTERPART SIGNATURE PAGE
THIS COUNTERPART SIGNATURE PAGE for that certain Consultant
Compensation Agreement No. 1 among U.S. Mining and the undersigned Consultant
is executed as of the date set forth hereinbelow.
Consultant:
Jeffrey D. Jenson
5525 South 900 East, #110
Salt Lake City, Utah 84117
Date: November 3, 1997 /s/ Jeffrey D. Jenson
Number of Shares
Maximum Value
of Services
General Description of Services to be Performed
Non-capital raising legal services, 244,410 shares
including, but not limited to "due $2,444
diligence," conferences with directors
of the acquired company and other evaluations
all as set forth in his letter to the Company
