Document:

AuRico Gold Inc.: Exhibit 4.2 - Filed by newsfilecorp.com

	
    

	
     

	
    (formerly Gammon Gold Inc.) 

	
     

	
    EMPLOYEE SHARE PURCHASE PLAN 

	
     

	
    July 1, 2009 

	1. 	
      Purpose

The AuRico Gold Inc. Employee Share Purchase Plan (the
“Plan”) is intended to provide an incentive for officers, directors,
employees and consultants of AuRico Gold Inc. (the “Corporation”) and its
participating subsidiaries, to acquire or increase their ownership in the
Corporation through the purchase of common shares of the Corporation. The
purpose of the Plan is to provide officers, directors, employees and consultants
with an opportunity to become an owner in the Corporation and to invest in the
Corporation’s future by becoming a shareholder.

	2. 	
      Definitions

As used in this Plan, the following terms shall have the
meanings given to them below: 

	 	a) 	
      “Account” means the account recorded in the
      records of the Administrator established on behalf of a Participant to
      which the amount of the Participant’s payroll deductions and purchases of
      Common Shares shall be credited, and any distributions of Common Shares
      and withdrawals shall be charged.

	 	 	 
	 	b) 	
      “Administrator” means the third party
      company hired to perform administrative duties required under the
    Plan.

	 	 	 
	 	c) 	
      “Base Salary” means regular
      gross earnings or base salary of a Participant, excluding payments for
      overtime, shift differentials, incentive compensation, bonuses, and other
      special payments, fees, allowances or extraordinary
compensation.

	 	 	 
	 	d) 	
      “Benefits Representative” means the
      Participant Benefits Coordinator of the Corporation or any such other
      person, regardless of whether employed by the Corporation, who has been
      formally, or by operation or practice, designated by the Corporation to
      assist with the day-to-day administration of the Plan.

	 	 	 
	 	e) 	
      “Board” means the Board of Directors
      of the Corporation.

	 	 	 
	 	f) 	
      “Common Share” means the
      common share of the Corporation.

	 	 	 
	 	g) 	
      “Consultant” means an individual who
      provides consulting services to the Corporation.

	 	 	 
	 	h) 	
      “Corporation” means AuRico Gold
      Inc., a corporation incorporated under the laws of Quebec, and any
      successor thereto.

	 	 	 
	 	i) 	
      “Director” means a member of the
    Board.

	 	 	 
	 	j) 	
      “Disability” means any complete and
      permanent disability.

	 	 	 
	 	k) 	
      “Effective Date” means July
      1, 2009, the inception date of the Plan.

	 	 	 
	 	l) 	
      “Employee” means any employee
      who is currently in Employment with the Corporation.

	 	 	 
	 	m) 	
      “Employer” means the
      Corporation, its successors, any future parent corporation of the
      Corporation and each current or future Subsidiary which has been
      designated by the Board or the Corporation as a participating employer in
      the Plan.

	 	 	 
	 	n) 	
      “Employer’s Contribution” means, in respect of a
      Participant, the amount credited to a Participant’s Account each Quarter
      by the Employer, being an amount equal to 75% of the Participant’s
      Contribution.

1 

	 	o) 	
      “Employment” means employment
      as an employee or officer by the Corporation or a Subsidiary as designated
      in such entity’s payroll records, or by any corporation issuing or
      assuming rights or obligations under the Plan. In this regard, neither the
      transfer of a Participant from employment by the Corporation to employment
      by a Subsidiary, nor the transfer of a Participant from employment by a
      Subsidiary to employment by the Corporation, shall be deemed to be a
      termination of employment of the Participant. Moreover, the employment of
      a Participant shall not be deemed to have been terminated because of
      absence from active employment on account of temporary illness or during
      authorized vacation, temporary leaves of absence from active employment
      granted by Corporation or a Subsidiary for reasons of professional
      advancement, education, health, or government service, or during any
      period required to be treated as a leave of absence which, by virtue of
      any valid law or agreement, does not result in a termination of
      employment.

	 	 	 
	 		
      Any worker treated as an independent contractor by the
      employer who is later re-classified as a common-law employee shall not be
      in employment during any period in which such worker was treated by the
      employer as an independent contractor.

	 	 	 
	 	p) 	
      “Market Price” means the
      prevailing market price at the time of either a purchase or sale of Common
      Shares.

	 	 	 
	 	q) 	
      “Officer” means any officer of the
      Corporation, including, without limitation, the Chief Executive Officer,
      President, Chief Financial Officer, and Chief Operating Officer of the
      Corporation.

	 	 	 
	 	r) 	
      “Participant” means any Director, Officer,
      Employee or Consultant.

	 	 	 
	 	s) 	
      “Participant’s Contribution” means the amount
      credited to a Participant’s Account each Quarter out of the Participant’s
      Base Salary, being the Participant’s quarterly Base Salary multiplied by
      the Payroll Deduction Rate.

	 	 	 
	 	t) 	
      “Payroll Deduction Rate” means the percentage of a
      Participant’s quarterly Base Salary to be deducted each Quarter as the
      Participant’s Contribution.

	 	 	 
	 	u) 	
      “Plan” means the AuRico Gold
      Inc. Employee Share Purchase Plan, as set forth herein, and all amendments
      hereto.

	 	 	 
	 	v) 	
      “Quarter” means a quarter of the Corporation’s
      fiscal year.

	 	 	 
	 	w) 	
      “Stock” means the common
      shares of the Corporation.

	 	 	 
	 	x) 	
      “Subsidiary” means any
      domestic or foreign corporation (other than the Corporation) which is
      included in an unbroken chain of corporations beginning with the
      Corporation if each of the corporations other than the last corporation in
      the unbroken chain owns stock possessing fifty percent (50%) or more of
      the total combined voting power of all classes of capital stock in one of
      the other corporations in such chain and (ii) which has been designated by
      the Board or the Corporation as a corporation whose officers, directors,
      employees and consultants are eligible to participate in the
  Plan.

	 	 	 
	 	y) 	
      “Termination Date” with respect to a Participant
      means the date on which the Participant ceases to be a
  Participant.

	3. 	
      Eligibility

Participation in the Plan is voluntary. Only individuals who
are Participants as of the first day of a quarter may participate in the Plan as
of such day. Individuals who have completed their three-month probationary
period, if any, will be eligible to participate in the Plan; however if an
individual’s probationary period ends after the first day of a quarter, then the
individual will only be eligible to participate in the Plan as of the first day
of the next quarter. Each individual who ceases to be a Participant
and who subsequently once more becomes a Participant shall be treated as a new
Participant for eligibility purposes under the Plan. 

2 

	4. 	
      Participation

	 	 	 
		a) 	
      Payroll Deduction Authorization. To enroll in the
      Plan, a Participant shall execute and deliver to the Benefits
      Representative, on the form prescribed for such purpose, a payroll
      deduction authorization. Such authorization must specify the Participant’s
      chosen Payroll Deduction Rate, and such other information as is required
      to be provided by the Participant on such form. The Payroll Deduction Rate
      chosen must be expressed in whole numbers as a percentage, and must not be
      less than 1% nor or more than 10% of the Participant’s Base Salary. Upon
      receipt by the Benefits Representative, the payroll deduction
      authorization form shall authorize the Corporation to deduct from the
      Participant’s Base Salary and credit to the Participant’s Account the
      amount of the Participant’s Contribution authorized by such
form.

	 	 	 
		b) 	
      Account. Once the Participant has enrolled in the
      Plan, the Corporation shall direct the Administrator to open an Account
      for that Participant to record the transactions occurring under the
      Plan.

	 	 	 
		c) 	
      Employment and Stockholders Rights. Nothing in the
      Plan will confer on a Participant the right to continue in the employ of
      the Employer or will limit or restrict the right of the Employer to
      terminate the Employment of a Participant at any time with or without
      cause. A Participant will have no interest in any Common Share to be
      purchased under the Plan or any rights as a shareholder with respect to
      such Common Share until the Common Share has been purchased and credited
      to the Participant’s Account.

	 	 	 
	5. 	
      Payroll Deductions.

	 	 	 
		a) 	
      Participant Contributions by Payroll Deductions.
      On the first day of each Quarter after a Participant has delivered his
      payroll deduction authorization in accordance with section 4(a), the
      Corporation shall deduct the Participant’s Contribution from the
      Participant’s Base Salary and shall credit such Participant’s Contribution
      to the Participant’s Account.

	 	 	 
		b) 	
      No Other Participant Contributions Permitted. Each
      Participant’s Contributions will be credited to the Participant’s Account
      under the Plan. A Participant may not make any separate cash payment into
      such Account.

	 	 	 
		c) 	
      Changes in Participant Contributions. A
      Participant may increase, decrease, suspend, or resume Payroll
      Contributions under the Plan by giving written notice to the Benefits
      Representative at such time and in such form as the Corporation or
      Benefits Representative may prescribe from time to time. Such increase,
      decrease, suspension or resumption will be effective as of the first day
      of the payroll period as soon as administratively practicable after
      receipt of the Participant’s written notice. Participants shall be
      entitled to change their Payroll Deduction Rate no more than two times per
      calendar year.

	 	 	 
		d) 	
      Continuing Effect of Payroll Deduction Authorization.
      The deduction and crediting of Participant’s Contributions for a
      Participant will commence with the first payroll period of the Quarter
      commencing after the Participant delivers the payroll deduction
      authorization in accordance with section 4(a), and will continue until the
      payroll period in which the Participant (i) elects to end such deductions
      and credits pursuant to the terms of the Plan or (ii) ceases to be a
      Participant.

3 

	6. 	
      Employer Contributions

On the first day of each Quarter after a Participant has
delivered his payroll deduction authorization in accordance with section 4(a),
the Corporation shall credit the Employer’s Contribution to the Participant’s
Account.

	7. 	
      Issuance of Common Shares

	 	 	 
		a) 	
      Maximum Number of Shares. The maximum number of
      Common Shares that may be issued under the Plan shall be
  1,250,000.

	 	 	 
		b) 	
      Use of Cash Contributions; Purchase Price. All
      cash contributions to the Plan, including Participant’s Contributions,
      Employer’s Contributions and any other such payment that may be permitted
      from time to time, shall be used to purchase Common Shares from treasury.
      Common Shares will be purchased on the last day of each Quarter at a price
      equal to the volume-weighted average trading price of the Common Shares on
      the Toronto Stock Exchange, for Participants residing in Canada, or the
      New York Stock Exchange, for Participants residing in the United States or
      other countries, for the 5 consecutive trading days immediately preceding
      the last day of the Quarter (the “Purchase Price”).

	 	 	 
		c) 	
      No Fractional Shares. Fractional Common Shares
      will not be issued; all fractions will be rounded down to the nearest
      whole Common Share. Any funds remaining in the Participant’s Account as a
      result will be held in the Participant’s Account until the next purchase
      period.

	 	 	 
		d) 	
      Fees and Commissions. The Corporation shall be
      responsible for all fees and commissions in relation to a purchase of
      Common Shares pursuant to the Plan.

	 	 	 
	8. 	
      Vesting

	 	 	 
		a) 	
      Participant Shares. Common Shares purchased with
      Participant’s Contributions will be designated as “Participant
      Shares” and will vest immediately with the Participant.

	 	 	 
		b) 	
      Employer Shares. Common Shares purchased with
      Employer’s Contributions will be designated as “Employer Shares”
      and will vest immediately with the Participant.

	 	 	 
	9. 	
      Ownership of Shares

A Participant will be the beneficial owner of all Common Shares
purchased under his or her Account under the Plan and will have all rights of
beneficial ownership in such shares as of the date such shares are purchased. As
a beneficial owner all rights of a shareholder of the Common Shares shall vest
with the participant on the date such shares are credited to the Participant’s
Account. As such the Participant shall be entitled to vote the Common Shares
held in his Account, and the Corporation and Administrator will arrange for the
Participant to receive the relevant information in regard to such action.

	10. 	
      Withdrawals Under the Plan

	 	 	 
		a) 	
      Vested Shares. Subject to compliance with
      applicable laws, Participants are entitled to sell all Participant Shares
      and Employer Shares held in their Account at any time.

	 	 	 
		b) 	
      Sale Requests. Participants are entitled to
      request a sale of Participant Shares and Employer Shares held in their
      Account on the open market by delivering to the Administrator a written
      request in the form prescribed by the Administrator. Such shares will be
      sold as soon as is administratively practical after receipt of the
      request. The sale price for such Common Shares shall be the prevailing
      market price at the time of such sale.

4 

		c) 	
      Certificate Requests. Participants are entitled to
      obtain a certificate representing the Participant Shares and Employer
      Shares held in their Account by delivering to the Administrator a written
      request in the form prescribed by the Administrator. Such certificates
      will be issued and delivered to the Participant as soon as is
      administratively practical after receipt of the request.

	 	 	 
		d) 	
      Administrative Fees. Participants are responsible
      for any fees or commissions relating to the sale of their Participant
      Shares and Employer Shares, whether the sale was carried out by the
      Participant or by the Corporation or the Administrator upon the
      Participant’s request.

	 	 	 
	11. 	
      Termination of Employment

	 	 	 
		a) 	
      General Rule. Upon a Participant ceasing to be a
      Participant for any reason, such Participant’s right to participate in the
      Plan will immediately terminate.

	 	 	 
		b) 	
      Termination Due to Retirement, Death or
      Disability. If a Participant ceases to be a Participant due to (i)
      retirement from Employment on or after their attainment of age 65, (ii)
      death or (iii) disability, the Participant (or the Participant’s personal
      representative or legal guardian in the event of disability, or the
      Participant’s beneficiary or the administrator of their will or executor
      of their estate in the event of death), will have the right to elect to
      withdraw or sell all the Common Shares credited to the Participant’s
      Account as of the Termination Date.

	 	 	 
			
      The Participant (or applicable legal representative as
      described above) must make such election in the form prescribed by the
      Administrator. In the event that no such written notice of election is
      received by the Administrator within 30 days of the Participant’s
      termination of employment date, the Participant (or such other designated
      person) will automatically be deemed to have elected to withdraw the
      balance of Common Shares in the Participant’s Account as of the
      Termination Date. Thereafter, any accumulated cash and Common Shares
      credited to the Participant’s Account as of the Termination Date will be
      delivered to, or on behalf of, the Participant as soon as administratively
      practicable. In all cases share balances will be delivered in certificate
      form, and cash will be paid in lieu of any fractional share
    balances.

	 	 	 
		c) 	
      Termination Other Than for Retirement, Death or
      Disability. If a Participant ceases to be a Participant for any reason
      other than retirement, death, or disability, the Participant will have the
      right to elect to withdraw or sell only the Participant Shares credited to
      the Participant’s Account as of the Termination Date. The Participant
      shall not be permitted to withdraw or sell any of the Employer Shares
      credited to the Participant’s Account. The Participant must make such
      election in the form prescribed by the Administrator. In the event that no
      such written notice of election is received by the Administrator within 30
      days of the Termination Date, the Participant will automatically be deemed
      to have elected to withdraw the balance of the Participant Shares held in
      the Participant’s Account as of the Termination Date. Thereafter, any
      accumulated cash derived from the Participant’s Contributions credited to
      the Participant’s Account as of the Termination Date will be delivered to,
      or on behalf of, the Participant as soon as administratively practicable.
      In all cases share balances will be delivered in certificate form and cash
      will be paid in lieu of any fractional share balances.

	 	 	 
		d) 	
      Rehired Participants. Any Participant who ceases
      to be a Participant and who subsequently once more becomes a Participant
      shall be treated as a new Participant for purposes of eligibility to
      participate in the Plan.

	 	 	 
	12. 	
      Interest

No interest will be paid or allowed on any money paid into the
Plan or credited to the Account of any Participant. 

	13. 	
      Administration of the Plan

5 

		a) 	
      Authority of the Board of Directors. Subject to
      the provisions of the Plan, the Board shall have the plenary authority to
      (a) interpret the Plan, (b) make such rules as it deems necessary for the
      proper administration of the Plan, (c) make all other determinations
      necessary or advisable for the administration of the Plan, (d) amend the
      Plan in accordance with Section 18 of the Plan, and (e) correct any defect
      or supply any omission or reconcile any inconsistency in the Plan in the
      manner and to the extent that the Board deems advisable. Any action taken
      or determination made by the Board pursuant to this and the other
      provisions of the Plan shall be conclusive on all parties. By express
      written direction, or by the day-to-day operation of Plan administration,
      the Board may delegate the authority and responsibility for the day-to-day
      administrative or ministerial tasks of the Plan to a Benefits
      Representative and/or an Administrator, including a brokerage firm or
      other third party engaged for such purpose.

	 	 	 
		b) 	
      Decisions Binding. All determinations and
      decisions made by the Board shall be made in its discretion pursuant to
      the provisions of the Plan, and shall be final, conclusive and binding on
      all persons including the Participants, and their estates and
      beneficiaries.

	 	 	 
	14. 	
      Transferability

No cash or Common Shares credited to a Participant’s Account,
nor any rights to receive Common Shares under the Plan, may be assigned,
transferred, pledged, or otherwise disposed of in any way by the Participant
other than by will or the laws of descent and distribution. Any such attempted
assignment, transfer, pledge, or other disposition will be void and without
effect. 

	15. 	
      Changes in the Corporation’s Capital
    Structure

In the event of any reclassification or change of the Common
Shares, the Plan shall thereafter entitle Participants to purchase, through
their Accounts, the securities of the Corporation of the appropriate class or
classes resulting from said reclassification or change as the Participants would
have been entitled to receive had the Participants been the holders of record of
Common Shares immediately before such reclassification or change. 

In the event of any capital reorganization of the Corporation
at any time while any Option is outstanding, not otherwise covered in this
section 15 or a consolidation, amalgamation or merger of the Corporation with or
into any other entity, the Plan shall thereafter entitle Participants to
purchase, through their Accounts, the securities of the appropriate class or
classes or property of the entity resulting from such capital reorganization,
consolidation, amalgamation, or merger or, as the case may be, that the
Participants would have been entitled to receive on such capital reorganization,
consolidation, amalgamation, or merger if, on the record date or the effective
date thereof, they had been the registered holders of Common Shares. 

In the event that the Corporation takes any action affecting
the Common Shares at any time, other than any action described above, which in
the opinion of the Board would materially affect the rights of the Participants,
the rights of the Participants under the Plan will be adjusted in such manner,
if any, and at such time, as the Board may determine, but subject in all cases
to any necessary regulatory and shareholder approval. Failure to take such
action by the Board so as to provide for an adjustment on or prior to the
effective date of any action by the Corporation affecting the Common Shares will
be conclusive evidence that the Board has determined that it is equitable to
make no adjustment in the circumstances. 

The Corporation shall take such steps in connection with such
transactions as the Corporation shall deem necessary or appropriate to assure
that the provisions of this section are effectuated for the benefit of the
Participants. 

	16. 	
      Plan Expenses

The expenses of the Plan shall be paid by the Corporation
except as otherwise provided herein or under the terms and conditions of any
agreement entered into between a Participant and any Administrator engaged to
administer Accounts. All funds received or held by the Corporation under the
Plan shall be included in the
general funds of the Corporation free of any trust or other restriction, and may be used for any corporate purpose. 

6 

	17. 	
      Term of the Plan

The Plan shall become effective as of July 1, 2009, subject to
approval by the Board and shareholder and stock exchange approval. 

	18. 	
      Amendment or Termination of the Plan

	 	 	 
		a) 	
      Termination or Amendment Without Shareholder Approval.
      The Board shall have the authority to terminate the Plan at any time,
      or to make the following amendments to the Plan, without the prior
      approval of the Participants or the shareholders of the
  Corporation:

	 	i. 	
      any amendment which is intended to ensure compliance with
      applicable laws, regulations or policies, including but not limited to the
      rules and policies of any stock exchange on which the Common Shares are
      listed for trading;

	 	 	 
	 	ii. 	
      any amendment which is intended to provide additional
      protection to shareholders of the Corporation (as determined at the
      discretion of the Board);

	 	 	 
	 	iii. 	
      any amendment which is intended to remove any conflicts
      or other inconsistencies which may exist between any terms of the Plan and
      any provisions of any applicable laws, regulations or policies, including
      but not limited to the rules and policies of any stock exchange on which
      the Common Shares are listed for trading;

	 	 	 
	 	iv. 	
      any amendment which is intended to cure or correct any
      typographical error, ambiguity, defective or inconsistent provision,
      clerical omission, mistake or manifest error;

	 	 	 
	 	v. 	
      any amendment which is not expected to materially
      adversely effect the interests of the shareholders of the
    Corporation;

	 	 	 
	 	vi. 	
      any amendment which is intended to facilitate the
      administration of the Plan; and

	 	 	 
	 	vii. 	
      subject to Section 18(b), any amendment to the terms of
      the Plan, including but not limited to any amendment to the definitions of
      the terms used in the Plan, the dates on which Participants may become
      eligible to participate in the Plan, the procedure for enrolling in the
      Plan, the minimum and maximum permitted Payroll Deduction Rate, the amount
      of Participants' Contributions and Employer's Contributions and the
      procedures for making, changing, processing, holding and using such
      contributions, vesting, the rights of holders of Participant Shares and
      Employer Shares, the rights to sell or withdraw Common Shares and cash
      credited to a Participant's Account and the procedures for doing the same,
      the interest payable on cash credited to a Participant's Account, the
      transferability of Common Shares, contributions or rights under the Plan,
      the adjustments to be made in the event of certain transactions, Plan
      expenses, restrictions on corporate action, or use of
  funds.

	 	b) 	
      Amendments Requiring Shareholder Approval.
      Notwithstanding Section 18(a):

	 	 	 	 	 
	 		i. 	
      no termination, modification, or amendment of the Plan
      shall adversely affect the rights of a Participant with respect to Common
      Shares previously purchased under the Plan without such Participant’s
      written consent; and

	 	 	 	 	 
	 		ii. 	
      no modification or amendment to the following provisions
      of the Plan shall be effective unless and until the Corporation has
      obtained the approval of the shareholders of the Corporation in accordance
      with the rules and policies of the stock exchanges on which the Common
      Shares are listed for trading:

	 	 	 	 	 
	 			i. 	
      the definition of "Participant" or any defined term
      comprised in such definition which would have the potential of broadening
      or increasing participation by insiders of the Corporation (as such term
      is defined in the applicable securities laws);

	 	 	 	 	 
	 			ii. 	
      the aggregate maximum number of Common Shares that may be
      purchased pursuant to the Plan;

	 	 	 	 	 
	 			iii. 	
      the Purchase Price at which Common Shares may be
      purchased pursuant to the Plan;

7

	 	iv. 	
      the rights of a Participants to withdraw Participant
      Shares and accumulated cash credited to the Participant's Account if the
      Participant ceases to be a Participant for any reason other than
      retirement, death, or disability;

	 	 	 
	 	v. 	
      the extension of any right of a Participant under the
      Plan beyond the date on which such right would originally have
    expired;

	 	 	 
	 	vi. 	
      the addition of a cashless exercise feature, payable in
      cash or securities, if such feature does not provide for a full deduction
      of the number of underlying Common Shares from the aggregate maximum
      number of Common Shares authorized and reserved for issuance under the
      Plan; and

	 	 	 
	 	vii. 	
      the addition of, or amendments to the provisions for, any
      form of financial assistance, other than changes to the Employer's
      Contributions.

	19. 	
      No Restriction on Corporate
  Action

Subject to the Plan, nothing contained in the Plan shall be
construed to prevent the Board or the Corporation from taking any corporate
action which is deemed by the Corporation to be appropriate or in its best
interest, whether or not such action would have an adverse effect on the Plan or
any option granted under the Plan. No Participant, beneficiary or other person
shall have any claim against any Employer as a result of any such action. 

	20. 	
      Use of Funds

All Participants’ Contributions received or held by the
Corporation under the Plan may be used by the Corporation for any corporate
purpose, and the Corporation will not be obligated to segregate such
Participant’s Contributions. 

	21. 	
      Miscellaneous

	 	 	 
		a) 	
      Headings. Any headings or subheadings in this Plan
      are inserted for convenience of reference only and are to be ignored in
      the construction or interpretation of any provisions hereof.

	 	 	 
		b) 	
      Governing Law. This Plan shall be governed and
      construed in accordance with the laws of the Province of Quebec to the
      extent not preempted by federal law.

	 	 	 
		c) 	
      Regulatory Approvals and Compliance. The
      Corporation’s obligation to sell and deliver Common Shares under the Plan
      is at all times subject to all approvals of and compliance with the (i)
      regulations of any applicable stock exchanges and (ii) any governmental
      authorities required in connection with the authorization, issuance, sale
      or delivery of such Common Shares, as well as federal, state and foreign
      securities laws.

	 	 	 
		d) 	
      Severability. In the event that any provision of
      this Plan shall be held illegal, invalid, or unenforceable for any reason,
      such provision shall be fully severable, but shall not affect the
      remaining provisions of the Plan, and the Plan shall be construed and
      enforced as if the illegal, invalid, or unenforceable provision had not
      been included herein.

	 	 	 
		e) 	
      No Guarantee of Tax Consequences. The Board, the
      Corporation and any subsidiary of the Corporation do not make any
      commitment or guarantee that any tax treatment will apply or be available
      to any person participating or eligible to participate in the Plan,
      including, without limitation, any tax imposed by Canada or any other
      country thereof, any estate tax, or any tax imposed by a foreign
      government.

	 	 	 
		f) 	
      No Guarantee against Market Fluctuation. The
      Board, the Corporation and any subsidiary of the Corporation do not make
      any commitment or guarantee against market fluctuation of the Common
      Shares. Participants are advised to consider their overall investment
      position prior to joining the Plan, and are encouraged to consult with an
      independent investment advisor prior to making any investment decision
      concerning the Plan.

	 	 	
       
	 	g) 	
      Statements. The Corporation shall arrange for
      Participants to receive a record of their Account on a Quarterly basis.
      The Corporation reserves the right to amend the frequency of the
      statements so long as Participants receive a record of their Account on at
      least an annual basis.

8China GengSheng Minerals, Inc.: Exhibit 10.1 - Filed by newsfilecorp.com

Exhibit 10.1

Confidential Treatment has been requested for certain
portions of this Agreement that have been redacted in this Exhibit. These
portions are indicated by an underline (____). The omitted portions of this
Agreement have been separately filed with the Securities and Exchange
Commission. 

AGREEMENT 

By and between 

ZHENGZHOU DUESAIL FRACTURE PROPPANTS CO., LTD. 

And 
_______

Dated June 19, 2011 

Confidential Treatment has been requested for certain
portions of this Agreement that have been redacted in this Exhibit. These
portions are indicated by an underline (____). The omitted portions of this
Agreement have been separately filed with the Securities and Exchange
Commission.  

AGREEMENT 

THIS AGREEMENT (this “Agreement”) is entered into
as of June 19, 2011 by and between Zhengzhou Duesail Fracture Proppants Co.,
Ltd., a corporation organized under the laws of The Peoples’ Republic of China
(“ DUESAIL ”), and _______ , a limited liability company organized under
the laws of the state of Texas (“ _______ ”). _______ and DUESAIL shall
each be referred to herein as a “Party.” _______ and DUESAIL shall
collectively be referred to herein as the “Parties.” 

RECITALS 

WHEREAS, the Parties desire to set forth herein the terms of a
strategic partnership whereby they shall work together to promote the branding
and distribution of the Products (defined below) in the Geographic Region
(defined below); and 

WHEREAS, _______ and DUESAIL wish to establish their rights and
obligations with respect to the purchase and sale of Products as further set
forth herein. 

NOW, THEREFORE, in consideration of the mutual covenants and
agreements herein contained, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties hereby
agree as follows: 

AGREEMENT 

ARTICLE I – DEFINITIONS 

As used herein, the following terms shall have the meanings set
forth below. Additional terms are defined throughout the text of this Agreement.

“Affiliate” means, with respect to
a specified person, a person that directly or indirectly, through one or more
intermediaries, controls or is controlled by, or is under common control with,
the person specified. In order for a person or entity to qualify as an Affiliate
of DUESAIL, such person or entity must also be primarily and directly engaged in
the business of manufacturing and selling Products. No person or entity shall be
considered to be directly and primarily engaged in such business solely by means
of (i) their ownership of equity interests in DUESAIL or its Affiliates, (ii)
service on the Board of Directors or similar governing body of DUESAIL or its Affiliates, or (iii) service as an executive
officer of DUESAIL or its Affiliates. 

2

Confidential Treatment has been requested for certain
portions of this Agreement that have been redacted in this Exhibit. These
portions are indicated by an underline (____). The omitted portions of this
Agreement have been separately filed with the Securities and Exchange
Commission. 

 

“Base Selling Price” means the
price of each Product sold to _______ as set forth on Exhibit A. 

“Effective Date” means the date set
forth in the preamble of this Agreement. 

“Geographic Region” means the
United States of America and any other region mutually agreed upon by the
Parties and memorialized in the form of an amendment to this Agreement. 

“Material Breach” means a failure
by a Party to perform any material obligation, covenant or undertaking of that
Party hereunder, which obligation, covenant or undertaking, if not cured in
accordance with the provisions of this Agreement, would deprive the counterparty
of a material benefit justifiably expected by the counterparty under this
Agreement. 

“Prioritize” means that DUESAIL
shall use commercially reasonable efforts to fill the orders of _______ before
orders from other parties. 

“Products” means all types and
forms of ceramic proppants manufactured by DUESAIL and specifically identified
on Exhibit A to this Agreement. 

ARTICLE II – PRODUCT BRANDING/INTELLECTUAL PROPERTY 

It is the intention of _______ to work with DUESAIL to
facilitate the branding and overall market awareness of the Products in the
Geographic Region. Therefore, this Article II identifies the actions that
_______ shall take to further this effort for the benefit of the strategic
partnership established by this Agreement. 

2.1 Expanding Business Opportunities. To help DUESAIL
establish greater market share for its Products in the Geographic Region,
_______ agrees that during the term of this Agreement it shall, at its own cost
and expense, help develop and enhance the business opportunities in the
Geographic Region. In furtherance thereof _______ shall undertake the following:
Branding Strategy: 

	
  Work with DUESAIL to name each Product in such a manner as to enhance
  brand and market recognition.
  

	
  Work with DUESAIL to develop a logo to establish a visual identity for each Product. 

3

  Confidential Treatment has been requested for certain portions of this
  Agreement that have been redacted in this Exhibit. These portions are
  indicated by an underline (____). The omitted portions of this Agreement have
  been separately filed with the Securities and Exchange Commission. 

 
	
  Work with DUESAIL to choose a slogan that appeals to users in the
  Geographic Region and strengthens brand recognition.
  

	
  Determine the proper packaging in a manner to ensure ease of use and
  strengthen Product recognition.
  

	
  Verify that the brand name, logo, slogan, and packaging convey a uniform
  message that emphasizes the quality and characteristics of the Products.

Marketing Strategy: 

	
  Develop a marketing plan and advertising plan to create Product awareness.

  

	
  Determine and utilize marketing channels with the intent to efficiently
  develop brand awareness.
  

	
  Evaluate marketing results periodically to determine the efficacy of the
  strategy and implement changes as needed. 

Marketing Intelligence: 

	
  Develop a program to determine the current and future needs and
  preferences, attitudes and behaviors of the marketplace for the Products.
  

	
  Assess changes in the business environment that may affect the size and
  nature of the market -place in the future.
  

	
  Gather information on competitors in the marketplace with regards to their
  product quality, price, and promotion efforts. 

Technical Support: 

	
  Provide advice such that technological and operational knowledge related
  to the Products may be improved.
  

	
  Offer advice such that the Products’ quality control process can be
  continually enhanced. 

Growth and Development: 

	
  Assist in the development of an operational growth strategy.
  

	
  Identify financing alternatives so as to implement such growth strategy.
  

	
  Develop and advise regional expansion plans. 

Data Sharing: 

	
  Share all testing and performance data, to the extent possible, generated
  by _______’s customers.
  

	
  Cooperate with DUESAIL to evaluate the available testing and performance
  data to improve the Products. 

4

Confidential Treatment has been requested for certain
portions of this Agreement that have been redacted in this Exhibit. These
portions are indicated by an underline (____). The omitted portions of this
Agreement have been separately filed with the Securities and Exchange
Commission.  

The Parties agree that all branding and marketing efforts shall
be undertaken on a cooperative basis, with each Party being deemed to have
co-branding rights thereto. 

2.2 Intellectual Property Rights. Once the Products are
named and the branding strategy formalized, _______ shall, at its sole cost and
expense, file with the applicable trademark authorities within the Geographic
Region applications to register the Products related service and/or trademarks.
_______ and DUESAIL shall be deemed co-applicants of the marks submitted for
registration. Upon termination of this Agreement, _______ and DUESAIL shall
confirm the ownership of all registered marks and related intellectual property
based upon good faith negotiations; however, if the Parties can not come to an
agreement as to which shall be deemed the sole owner of the branding and the
related intellectual property rights then, neither of the Parties shall have a
continuing right to use said marks or branding rights. 

ARTICLE III – JOINT SELLING EFFORTS 

In an effort to promote the overall branding and distribution
of the Products DUESAIL and _______ agree to develop a partnership whereby
_______ shall have the right to purchase Products under the following terms.

3.1 Product Availability. During the term of this
Agreement and unless otherwise agreed to by the Parties in writing, DUESAIL
hereby agrees to sell to _______ for use in the Geographic Region, as then in
effect, a minimum of 4,000 metric tons of Products for July 2011, a
minimum of 6,000 metric tons of Products for August and September 2011,
respectively, and a minimum of 8,000 metric tons of Products per month
commencing October 1, 2011 (the “ Sales Commitment ”). 

Before submitting a purchase order, _______ shall inform
DUESAIL as to which kind of Product it desires to order. If DUESAIL cannot meet
the requirements requested by _______ , the Parties shall then negotiate a
mutually agreeable Product order and DUESAIL shall then configure the Products
in accordance with the results of the afore-referenced negotiation. All
purchases of Products shall be governed by the terms and conditions set forth in
the purchase order with all purchased Products to meet the Product
specifications (“_______’s Specifications”) set forth in Exhibit B
hereto. 

3.2 Purchase Orders. _______ shall deliver to DUESAIL a
purchase order for all Products it may acquire for a given month at least 40
days before products delivered, said purchase order to set forth the specific
number of metric tons of each Product to be acquired. DUESAIL’s acknowledgment
of each purchase order shall include detailed acceptance information thereof, unless otherwise noted in such acknowledgement. DUESAIL shall
exercise a good faith effort to Prioritize _______ ’s purchase orders.

5

Confidential Treatment has been requested for certain
portions of this Agreement that have been redacted in this Exhibit. These
portions are indicated by an underline (____). The omitted portions of this
Agreement have been separately filed with the Securities and Exchange
Commission.  

3.3 Delivery. DUESAIL shall inform _______ timely about
the delivery of the ordered Products, and _______ shall audit its order in
accordance with Section 4.3. No Product shall be delivered before confirmation
from _______. 

3.4 Excess Capacity. To the extent DUESAIL is able to
manufacture Product in excess of the Sales Commitment (“Additional Product
Capacity”) during a given month, DUESAIL shall notify _______ of such excess and
_______ shall have ten (10) days to advise DUESAIL of its desire to purchase
said Additional Product Capacity. 

ARTICLE IV – PRICES; PAYMENT; INSPECTION 

4.1 Selling Price/Price Adjustments. DUESAIL shall sell
each Product to _______ at the then current Base Selling Price, as set forth in
Exhibit A hereto. The Base Selling Price for each Product shall be
evaluated every six (6) months from the Effective Date so as to take into
consideration current market conditions for the Products and to make any
necessary changes to ensure that the price reflects market conditions effected
by global events, with all mutually agreed upon modifications being set forth in
an amendment to Exhibit A. 

At any time during the aforementioned six month price review
periods a situation arises (including, but not limited to, significant changes
of exchange rate)that may materially influence the then applicable Base Selling
Price, either of the Parties may call for a renegotiation of the Base Selling
Price then in effect. 

4.2 Payment. Unless agreed to otherwise by DUESAIL or specified
herein, payment for all sales of Product shall be made within 90 days against
the Bill of Lading date by an irrevocable and non-transferable letter of credit.
DUESAIL agrees that it shall deliver to the issuer of any letter of credit such
information that such issuer may request, so long as the request is reasonable
and customary and the information is readily available to DUESAIL. _______ shall
have the right to withhold any amounts disputed in good faith until the disputes
are resolved by the Parties and the Product delivered to _______ shall be
returned to DUESAIL immediately upon DUESAIL’s request; provided, further, that
in the event of an invoice that contains both disputed and undisputed amounts,
the undisputed amounts will be paid promptly. Payment to DUESAIL for Product
shall be made in U.S. dollars and payable to any account designated by DUESAIL.

4.3 Inspection/Product Rejection. _______ shall have the
right, at its own cost and expense, to have its employees or designees perform
continual onsite inspections of the manufacturing and packaging of Products
prepared for _______ and to conduct periodic independent third party quality
control testing of same so as to ensure adherence to _______ s
specifications set forth in Exhibit B hereto. All deficiencies noted in the
manufacturing or packaging process shall be immediately brought to the attention
of DUESAIL, with DUESAIL to exercise a good faith effort to remedy all defects
in a commercially reasonable fashion. _______ shall have the right to reject
Products at each testing interval and/or until such time as they are deemed to
satisfy the _______ ’s specifications and accepted for use by the _______ ’s
customers. _______ ’s rejection shall not be arbitrary and commercially
unreasonable. 

6

Confidential Treatment has been requested for certain
portions of this Agreement that have been redacted in this Exhibit. These
portions are indicated by an underline (____). The omitted portions of this
Agreement have been separately filed with the Securities and Exchange
Commission.  

ARTICLE V – TERM 

5.1 Term. This Agreement shall be effective as of the
Effective Date and shall remain in effect for a period of five (5) years from
the Effective Date. 

5.2 Termination After Effective Date. After the
Effective Date, this Agreement may be terminated: 

	(a) 	
      by a Party upon the failure of the other Party to cure a
      Material Breach within ninety (90) days after a written notice of such a
      Material Breach from the first Party (the “Material Breach
      Notice”). If such a Material Breach is not cured within ninety (90)
      days after the date of the Material Breach Notice, then the first Party
      may terminate this Agreement by providing further written notice to the
      other Party (the “Termination Notice”); provided that the
      Termination Notice shall be received by the other Party no later than
      thirty (30) days after the expiry of the 90-day period following the date
      of the Material Breach Notice.

	 	 
	(b) 	
      by either Party upon the other Party becoming bankrupt,
      insolvent, or having a receiver, trustee or other similar person appointed
      under insolvency laws to manage any part of its business or
  assets.

Nothing in this Section 5.3 shall be deemed to release
any Party from any liability for any breach of this Agreement prior to the
effective date of termination. 

ARTICLE VI – CONFIDENTIALITY 

6.1 General Obligations. 

(a) All Confidential Information relating to or obtained from
_______ or DUESAIL shall be held in confidence by the recipient to the same
extent and in at least the same manner as the recipient protects its own
confidential or proprietary information, but in no event shall the recipient
exercise less than reasonable care. Except as otherwise provided in this
Article VI, neither _______ nor DUESAIL shall disclose, publish, release,
transfer or otherwise make available Confidential Information of, or obtained
from, the other in any form to, or for the use or benefit of, any person or entity
without the disclosing party’s prior written consent. 

7

Confidential Treatment has been requested for certain
portions of this Agreement that have been redacted in this Exhibit. These
portions are indicated by an underline (____). The omitted portions of this
Agreement have been separately filed with the Securities and Exchange
Commission.  

(b) Each of _______ and DUESAIL shall, however, be permitted to
disclose relevant aspects of the other’s Confidential Information to its
officers, directors, attorneys, accountants and senior-level employees that are
directly involved with the performance of this Agreement, and to the officers,
directors, attorneys, accountants and such senior-level employees of its
Affiliates (to the extent that such disclosure is not otherwise restricted under
any contract, license, consent, permit, approval or authorization granted
pursuant to applicable law, rule or regulation, and only to the extent that such
disclosure is reasonably necessary for the performance of its duties and
obligations under this Agreement (or the determination or preservation of its
rights under the Agreement)); provided, however, that the
recipient shall take all reasonable measures to ensure that Confidential
Information of the disclosing party is not disclosed or duplicated in
contravention of the provisions of this Agreement by such officers, directors,
partners, agents, professional advisors, contractors, subcontractors and
employees. 

6.2 Confidential Information. For purposes of this
Agreement, “Confidential Information” of a Party shall mean all
information and documentation of such Party (or its Affiliates), whether
disclosed to or accessed by the other Party (or its Affiliates) in connection
with the activities contemplated by this Agreement that has been marked as
“Proprietary” or “Confidential” or bears some other proprietary designation, or
if disclosed orally or visually, has been designated by a Party as confidential
when disclosed and subsequently confirmed in a letter or other written statement
or summary made to the other Party within thirty (30) days of such disclosure,
and shall include, without limitation, the following with or without proprietary
or confidential designation: 

	(i) 	
      information concerning business plans;

	 	 
	(ii) 	
      financial information;

	 	 
	(iii) 	
      information concerning operations and the results of
      operations;

	 	 
	(iv) 	
      pricing information and marketing strategies;

	 	 
	(v) 	
      information that a Party is legally obligated not to
      disclose;

	 	 
	(vi) 	
      information that qualifies as a trade secret under
      applicable law;

	 	 
	(vii) 	
      this Agreement;

	 	 
	(viii) 	
      patents, unpatented inventions and information regarding
      product development and improvements; and

8

Confidential Treatment has been requested for
certain portions of this Agreement that have been redacted in this Exhibit.
These portions are indicated by an underline (____). The omitted portions of
this Agreement have been separately filed with the Securities and Exchange
Commission. 

 	(ix) 	material and performance specifications.
  

ARTICLE VII – DISPUTE RESOLUTION 

7.1 Dispute Resolution 

In the event of a dispute arising out of or relating to this
Agreement, including but not limited to the existence and resolution of an
alleged material breach (a “Dispute”), the Parties will endeavor in good faith
to mutually resolve on a commercially reasonable basis such Dispute. Either
Party may initiate an attempt to mutually resolve a Dispute by sending written
notice of the Dispute to the other Party (the “Dispute Notice”). Any Dispute
that cannot be mutually resolved in accordance with this paragraph within ninety
(90) days of the date of the Dispute Notice may be referred by either Party to
and finally settled by arbitration at the City of New York in accordance with
the UNCITRAL Arbitration Rules (the “UNCITRAL Rules”) in effect, which rules are
deemed to be incorporated by reference into this section. The arbitration
tribunal shall consist of three arbitrators to be appointed according to the
UNCITRAL Rules. The language of the arbitration shall be English. 

ARTICLE VIII – MISCELLANEOUS 

8.1 Entire Agreement. THIS AGREEMENT, INCLUDING THE
EXHIBITS ATTACHED HERETO AND INCORPORATED AS AN INTEGRAL PART OF THIS AGREEMENT,
CONSTITUTES THE ENTIRE AGREEMENT OF THE PARTIES WITH RESPECT TO THE SUBJECT
MATTER HEREOF, AND SUPERSEDES ALL PREVIOUS AGREEMENTS BY AND BETWEEN _______ AND
DUESAIL. 

8.2 Applicable Law; Survival. This Agreement shall be
governed and controlled as to validity, enforcement, interpretation,
construction, effect and in all other respects by the laws of the State of New
York applicable therein, without giving effect to the conflicts of laws
principles thereof. 

8.3 Amendments; Independent Contractors. This Agreement
may not be amended, nor shall any waiver, change, modification, consent or
discharge be affected, except by an instrument in writing executed by or on
behalf of the Party against whom enforcement of any such amendment, waiver,
change, modification, consent or discharge is sought. The Parties hereto intend
by this Agreement solely to act as independent contractors with respect to each
other, and no other relationship is intended to be created hereby. 

8.4 Severability. The invalidity of any provision of
this Agreement, or portion thereof, shall not affect the validity of the
remainder of such provision or of the remaining provisions of this Agreement. 

9

Confidential Treatment has been requested for certain
portions of this Agreement that have been redacted in this Exhibit. These
portions are indicated by an underline (____). The omitted portions of this
Agreement have been separately filed with the Securities and Exchange
Commission.  

8.5 Section Headings. The headings contained in this
Agreement are for reference purposes only and shall not in any way affect the
meaning or interpretation of this Agreement. 

8.6 Assignability. This Agreement may not be assigned or
transferred by a Party without the prior written consent of the other Party. In
the event of a permitted assignment hereunder, the assigning Party shall, at the
election of the non-assigning Party, provide a guarantee in respect of the
relevant assignee, in form and substance satisfactory to the non-assigning Party
which approval shall not be unreasonably withheld or delayed. 

8.7 Notice. All notices required or permitted to be
given hereunder shall be in writing and shall be deemed given (a) when delivered
in person at the time of such delivery or by facsimile with confirmed receipt of
transmission at the date and time indicated on such receipt, or (b) when
received if given by an internationally recognized express courier service as
follows, or at such other respective addresses or addressees as may be
designated by notice given in accordance with the provisions of this Section
8.7: 

If to DUESAIL: 

Zhengzhou Duesail Fracture Proppant Co.,Ltd. 
No. 38
Gengsheng Road 
Dayugou Town, Gongyi, Henan 
Peoples Republic of China
451271 
Attention: Shunqing Zhang, CEO 

If to         
: 
_______
_______

8.8 Counterparts/Legal Validity. Any document for the
communication of the Parties about this Agreement such as a fax, an email, or
regular mail will be regarded as document of legal validity. This Agreement may
be executed in multiple counterparts, each of which shall be deemed to be an
original and all such counterparts shall constitute but one instrument. 

8.9 Language. This Agreement is made in both English and
Chinese, which shall have the same effect legally. 

8.10 Independence. The Parties are independent
contractors with each other and this agreement does not constitute a joint
venture or partnership. 

10

Confidential Treatment has been requested for certain
portions of this Agreement that have been redacted in this Exhibit. These
portions are indicated by an underline (____). The omitted portions of this
Agreement have been separately filed with the Securities and Exchange
Commission.  

IN WITNESS WHEREOF, the Parties have executed this Agreement as
of the date first above written. 

	Zhengzhou Duesail Fracture 	 
	Proppants Co.,Ltd. 	____________________
	 	 
	By: /S/ Shunqing Zhang 	By:
      /s/                                        
       
	 	 
	Name Shunqing Zhang 	Name: __________________
	Title: Chief Executive Officer 	Tile: Chief Executive Officer

11

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