Document:

focusgold_10k-ex1005.htm

 

Exhibit 10.5

 

 

 

 

EXECUTIVE EMPLOYMENT AGREEMENT BETWEEN

 

GOLD BAG INC.

AND

 

Grant White MADE AS OF

February 23, 2011

 

 

 

 

 

 

 

 

 

 

  

 

  

TABLE OF CONTENTS

 

	 ARTICLE 1- INTERPRETATION
	 	 	 
	
1.1

	
Certain Definitions

	
1

	
1.2

	
Number and Gender

	
3

	
1.3

	
Sections and Headings

	
3

	
1.4

	
Schedules.

	
3

	
1.5

	
Associates/ Affiliates/ Acting Jointly or in Concert

	
3

	  	  	  
	
ARTICLE 2 - EMPLOYMENT

	  	  	  
	
2.1

	
Employment

	4
	
2.2

	
Term of Employment

	
4

	
2.3

	
Place of Employment

	
4

	  	  	  
	
ARTICLE 3- REMUNERATION

	  	  	  
	
3.1

	
Salary

	
4

	
3.2

	
Bonus

	
4

	
3.3

	
Benefits

	
4

	
3.4

	
Club Memberships

	
5

	
3'.5

	
Vacation

	
5

	
3.6

	
Expenses

	
5

	
3.7

	
Stock Options

	
5

	  	  	  
	
ARTICLE 4- EXECUTIVE'S COVENANTS

	  	  	  
	
4.1

	
Service

	
5

	
4.2

	
Non-Disclosure

	
6

	  	  	  
	
ARTICLE 5- TERMINATION OF EMPLOYMENT

	  	  	  
	
5.1

	
Termination by Corporation for Cause

	
6

	
5.2

	
Termination by Corporation Without Cause

	
6

	
5.3

	
Termination Upon Retirement of Executive

	
6

	
5.4

	
Termination Upon Death of Executive

	
6

	
5.5

	
Termination Upon Disability

	
6

	
5.6

	
Benefits on Termination Without Cause

	
7

	
5.7

	
Return of Property

	
7

	
5.8

	
No Obligation to Mitigate

	
8

	
5.9

	
Provisions That Survive Termination

	
8

	  	  	  
	
ARTICLE 6- OBLIGATION TO REMAIN EMPLOYED

	  	  	  
	
6.1

	
Executive to Remain Employed

	
8

  

i

  

 

	  	  	  
	  	  	  
	  	  	  
	
ARTICLE 7- EXECUTIVE'S RIGHTS ON A CHANGE IN CONTROL OR TERMINATION WITHOUT CAUSE

	  	  	  
	
7.1

	
Executive's Termination Rights After a Change in Control

	
8

	
7.2

	
Continuation of Employment for Interim Period

	
9

	
7.3

	
Benefits on Termination following Change of Control

	
 9

	
7.4

	
Letter of Credit

	
10

	
7.5

	
Successor

	
10

	  	  	  
	
ARTICLE 8 - INDEMNITY

	  	  	  
	
8.1

	
General

	
10

	
8.2

	
Legal Proceedings

	
10

	
8.3

	
Related Corporations

	
 11

	  	  	  
	
ARTICLE 9 - GENERAL

	  	  	  
	
9.1

	
Annual Review

	
11

	
9.2

	
Withholding

	
11

	
9.3

	
Benefit of Agreement/ Assignment

	
11

	
9.4

	
Entire Agreement

	
11

	
9.5

	
Amendments and Waivers

	
11

	
9.6

	
Severability

	
11

	
9.7

	
Notices

	
 12

	
9.8

	
Further Assurances

	
12

	
9.9

	
Governing Law

	
 12

	
9.10

	
Attornment

	
12

	
9.11

	
Independent Advice

	
13

	
9.12

	
Counterparts

	
13

 

ADDENDA

 

Schedule "A" -DUTIES AND SALARY

 

Schedule "B'' -ADDITIONAL BENEFITS

 

 

 

 

 

  

ii

  

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

 THIS AGREEMENT made as of February 23,2011;

 

BETWEEN:

 

Grant White, (the "Executive") AND:

 

GOLD  BAG INC., a corporation incorporated under  the under the laws of Nevada, USA

 

WHEREAS Gold Bag Inc. (the "Corporation"), appointed the Executive as President and Chief Executive Officer of the Corporation in September 2010 and it now wishes to further document the terms of that appointment to take effect as of January 1, 2011;

 

AND WHEREAS the Board of Directors of the Corporation (the "Board") considers it essential and in the best interests of the Corporation and its shareholders that the Executive be encouraged to remain in the employ of the Corporation and to devote his full attention to the Corporation's business;

 

AND WHEREAS the Corporation considers that it is imperative and in the best interests of the Corporation and its shareholders that notwithstanding any Potential Change in Control (as hereinafter defined), the Corporation be able to rely on the Executive to continue in his position as President and Chief Executive Officer of the Corporation;

 

NOW THEREFORE, in consideration of the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties, the parties hereto agree as follows:

 

ARTICLE 1- INTERPRETATION

 

1.1           Certain Definitions

 

For the purposes  of this Agreement,  the following  terms  have the meanings indicated:

 

(a)           "Cause" means:

 

	 	
(i)

	
the inability of the Executive to perform his duties due to a legal impediment such as an injunction, restraining order or other judicial judgement, decree or order entered against the Executive;

 

	 	
(ii) 

	
a breach by the Executive of a material provision of this Agreement; (iii)the failure of the Executive to follow the reasonable instructions of theCorporation with respect to the performance of his duties;

  

1

  

	 	
(iv)

	
any material breach by the Executive of 'his obligations under any code of ethics, any other code of business conduct or any lawful policies or procedures of the Corporation;

 

	 	
(v)

	
excessive absenteeism, flagrant neglect of duties, serious misconduct, or conviction of crime or fraud; or

 

	 	
(vi)

	
any act or omission of the Executive that would in law permit an employer to, without notice or payment in lieu of notice, terminate the employment of an employee.

 

(b)           “Change of Control" means:

 

	 	
(i)

	
a reorganization, amalgamation, merger or other business combination (or a plan of arrangement in connection with any of the foregoing), other than solely involving the Corporation and any one or more of its subsidiaries, with respect to which all or substantially all of the persons who were the beneficial owners of the common shares of the Corporation immediately prior to such reorganization, amalgamation, merger or other business combination (or plan of arrangement in connection  with  any  of the foregoing)  do  not, following  the completion  of such  reorganization, amalgamation, merger or other business combination (or plan of arrangement in connection with any of the foregoing), beneficially own, directly or indirectly, more than fifty percent (50%) of the resulting voting rights, on a fully-diluted basis, of the resulting or successor entity, on a fully diluted basis (and for greater certainty, this will not include a public offering  or  private  placement  out  of  treasury)  or  such  other transaction pursuant to which the common shares of the Corporation are converted into, or exchanged for other property, whether in the form of securities of another corporation, cash or otherwise;

 

	 	
(ii)

	
the sale to a person, other than a subsidiary of the Corporation, of all or substantially all of the Corporation's assets; or

 

	 	
(iii)

	
a formal bid or tender offer for the Corporation's common shares being made (other than by the Corporation or any subsidiary, or an employee benefit plan established or maintained by the Corporation or any su sidiary) as a result of which the offeror and its affiliates would, if successful, beneficially own, directly or indirectly, fifty percent (50%) or more of the common shares then outstanding;

 

	
  

	
(c)

	
“Person'' includes any individual, firm, partnership, trust, trustee, executor, administrator, legal  personal  representative, government, governmental body or authority, corporation or other incorporated or unincorporated organization;

  

2

  

	 	
(d) 

	
"Potential Change in Control” means the occurrence at any date hereafter of any of the following events:

 

	 	
(i) 

	
any Person publicly announces  an intention  to take actions which, if carried out; would constitute a Change in Control;

 

	 	
(ii)

	
the Corporation enters into an agreement  or proposes  to take action which,if carried  out, would  result  in the occurrence of a Change  in Control;

 

	 	
(iii)

	
any Person, or group of Persons, or Persons acting jointly or in concert, together with any associate or affiliate of any such Person or Persons, acquires a holding, direct or indirect, of Voting Shares and/ or other securities in excess of the number which, directly or following conversion thereof, would entitle the holders thereof to cast 20% of the votes attaching to all Voting Shares; or

 

	 	
(iv) 

	
the Board adopts  a resolution  to the effect that, for purposes  of thisAgreement, a Potential Change in Control has occurred; and

 

 

	 	
(e) 

	
"Voting Shares" means any shares of capital stock of the Corporation entitled to vote generally in the election of directors.

 

	
1.2 

	
Number and Gender

 

Wherever the context so requires, terms used herein importing the singular number only shall include the plural and vice versa and words importing any one gender shall include all others.

 

	
1.3 

	
Sections and Headings

 

The division of this Agreement into Articles, Sections, Subsections, Clauses and Subclauses and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement. The terms “this Agreement” “hereof”, “hereunder” and similar expressions refer to this Agreement and not to any particular Article, Section or other portion hereof and include any agreement or instrument supplemental or ancillary hereto. Unless something in the subject matter or context is inconsistent therewith, references herein to Articles and Sections are to Articles and Sections of this Agreement.

 

	
1.4 

	
Schedules

 

The Schedules  attached  to this Agreement  will be deemed  to be part of this Agreement.

 

	
1.5 

	
Associates/Afiliates/Acting Jointly or in Concert

 

For the purposes of this Agreement, a Person shall be deemed to be an associate or affiliate of, or to be acting jointly or in concert with, another Person if such Person would be deemed to be an associate or affiliate of, or to be acting jointly or in concert with, such Person for the purpose of the Securities Act (Nevada), as amended from time to time, and the regulations and rules made thereunder, as now in effect or as the same may from time to time be amended, re-enacted or replaced.

  

3

  

ARTICLE 2- EMPLOYMENT

 

	
2.1 

	
Employment

 

Subject to the terms and conditions hereof, the Executive shall be employed by the Corporation as its President and Chief  Executive Officer. The Executive shall perform the duties set out in Schedule “A” to this Agreement, as amended from time to time, and such other duties as may from time to time be assigned to or vested in the Executive.

 

	
2.2 

	
Term of Employment

The employment of the Executive hereunder shall commence on September 1, 2010 and amended by this agreement effective January 1, 2011 and shall continue until terminated in accordance with this Agreement, or until otherwise terminated in accordance with applicable law.

 

2.3           Place of Employment

 

The Executive shall primarily perform his work and services for the Corporation. The Executive acknowledges that due to the nature of the Corporation's operations and business of the Corporation he will be required to travel in the course of performing his duties from time to time.

 

ARTICLE 3 -.REMUNERATION

 

	
3.1 

	
Salary

 

The Executive shall receive, during the first year of the term of this Agreement, the gross annual salary set out in Schedule 11A11 hereto, payable semi-monthly in arrears. Such salary shall be reviewed at the end of each calendar year and any changes in such salary (which may be based upon, among other things, increases in the cost of living and the Executive's performance) shall be as agreed upon in writing between the parties from time to time.

 

	
3.2 

	
Bonus

Based on the overall performance of the existing business and the nature of growth transactions completed both for  acquisitions, divestitures, spin-offs, joint ventures, etc.  and financings, the  compensation committee of  the  board will determine if the Executive should receive an additional cash or share compensation bonus every six months based on market standards for similar positions.

 

	
3.3 

	
Benefits

 

The Executive will be entitled to participate in all of the benefit plans that are available to the employees the Company in accordance with the terms thereof, augmented, if necessary, to provide a reasonable overall package of benefits for a position of the nature held by the Executive hereunder, including the benefits set out in Schedule "B" hereto as amended from time to time.

  

4

  

	
3.4 

	
Club Memberships

 

During the term of this Agreement, the Corporation shall pay to or on behalf of the Executive  and  at his request from  time  to time, membership fees in such  clubs  and associations as are approved by the Corporation and as are desirable for the Executive to join in connection with his employment and activities on behalf of the Corporation.

 

	
3.5 

	
Vacation

 

During the term of this Agreement, the Executive shall be entitled to 20 business days' vacation per annum. Such vacation shall be taken at a time or times acceptable to the Corporation having regard to operations. Vacation days will accrue to December 31st of the year in which  they are earned.  The Executive  may, at his discretion, carry forward a maximum of ten (10) vacation days which must be used prior to March 31st of the year following the year in which they were earned.

 

In the event of termination or death, any accrued vacation shall be paid to the Executive or his estate or heirs in cash.

 

	
3.6 

	
Expenses

 

The Executive shall be reimbursed for all reasonable travelling, entertainment and other out-of-pocket expenses actually and properly incurred by him in connection with his duties hereunder. For all such expenses the Executive shall furnish statements as and when required by the Corporation. For the purpose of travel reimbursements, it is acknowledged that the Executive's home is in Toronto, Ontario.

 

	
3.7 

	
Stock Options

 

In addition to any stock options currently held by the Executive and subject to regulatory approval, the Executive may from time to time be granted options to purchase common shares of the Corporation. Option vesting restrictions, pricing, termination and all other terms of the options will be in accordance with the Corporation's Stock Option Plan and stock option procedures. Schedule A outlines the initial Option grant as part of this Employment Agreement.

ARTICLE 4- EXECUTIVE'S COVENANTS

 

	
4.1 

	
Service

 

The Executive shall devote the whole of his time, attention and ability to the business of the Corporation and shall well and faithfully serve the Corporation. The Executive shall use his best efforts to promote the interests of the Corporation.  Without limiting the generality of the foregoing, without the prior  written consent of the Corporation, the Executive shall not engage in any activities where there may be a conflict of interest with the Corporation provided that the Executive shall be entitled to serve as a director and officer of affiliates, subsidiaries and associates of the Corporation and, subject to the prior approval of the Board, as a director of other corporations.

  

5

  

4.2           Non-Disclosure

 

The Executive acknowledges that in the course of his employment with  the Corporation he will receive information relating to the private or confidential affairs, trade secrets, intellectual property and other proprietary knowledge ( 11Confidential Information11) of the Corporation.  The Executive shall not  either  during  the continuance  of his employment or at any  time thereafter  disclose any Confidential  Information  of the Corporation to any Person other than for the Corporation's purposes unless compelled by law and shall not (either during the continuance  of his employment  or at any time thereafter) use for his own purposes or for any purposes other than those of the Corporation any such information or secrets.  In the event that the Executive is compelled by law to disclose  any  Confidential  Information, the  Executive  shall  immediately  inform  the Corporation of such fact and shall assist the Corporation and provide the Corporation and with reasonable opportunity to obtain an injunction or other legal or equitable remedies prior to making the disclosure.

ARTICLE 5- TERMINATION OF EMPLOYMENT

 

	
5.1 

	
Termination by Corporation for Cause

 

The Corporation may at any time terminate this Agreement and the Executive's employment at any time for cause upon written notice to the Executive (11Notice11), without payment of any compensation either by way of anticipated earnings or damages of any kind, but the Executive shall nonetheless be entitled to receive accrued salary, accrued vacation pay and benefits up to and including the date of termination.

 

	
5.2 

	
Termination by Corporation Without Cause

 

The Corporation may at any time terminate this Agreement and the Executive's employment without cause upon notice to the Executive provided that in such event the Executive shall be entitled to termination benefits pursuant to Section 5.6.

 

	
5.3 

	
Termination Upon Retirement of Executive

 

This Agreement and the Executive's employment shall terminate by retirement of the Executive, without payment to the Executive except accrued salary and benefits to the date of retirement.

 

	
5.4 

	
Termination Upon Death of Executive

 

This Agreement and the Executive's employment shall terminate immediately upon the death of the Executive, without payment to the Executive except accrued salary, accrued vacation and benefits to the date of death.

 

	
5.5 

	
Termination Upon Disability

 

The Corporation may terminate this Agreement at any time upon notice to the Executive if the Executive becomes permanently physically or mentally disabled and is therefore unable to carry out his duties hereunder, without payment to the Executive except accrued  salary and  benefits to the date of such  disability  and  provided  that if the termination of this Agreement  would  adversely  affect the Executive's entitlement to disability insurance benefits, the Executive shall in lieu of termination be placed on an unpaid  leave of absence while he is in receipt of such benefits, it being understood, however, that the Executive shall not be entitled to re-employment by the Corporation after such leave of absence or when he ceases to be in receipt of such benefits.

  

6

  

	
5.6 

	
Benefits on Termination Without Cause

 

If the Corporation terminates this Agreement without cause pursuant to Section 5.2 the Corporation will:

 

	
  

	
(a)

	
pay Executive an amount equal to 12 months compensation at the Executive's annual compensation including salary, value of options and bonus in effect immediately prior to the date notice of termination is given, payable as a lump sum within five business days following the last day of his active employment, if a change of control under section 7 occurs within 6 months after Termination Without Cause, the Executive will be entitled  to an additional year of compensation as outlined in section 7.3 below;

 

	
  

	
(b)

	
pay to the Executive, within five business days following the last day of his active employment, the amount of any unpaid salary earned by the Executive up to and including the date notice of termination is given;

 

	 	
(c) 

	
at the Executive's option, the Corporation shall:

 

	
  

	
(i)

	
continue to make the employer contributions necessary to maintain the Executive's coverage pursuant to all benefit plans provided to the Executive immediately prior to such termination, exclusive of long term disability, for a period of six months following such termination and shall deduct from the payment payable to the Executive pursuant to Section 5.6(a) the amount of any employee contributions necessary to maintain  such coverage for such  period  based  on any such contributions which were in effect immediately prior to such termination; provided  that if it is not  possible to maintain  the Executive's coverage under such benefit plans the Corporation will, in lieu thereof, provide comparable benefits coverage for a period of six months following termination and make contributions towards those benefits on behalf of the Executive, net of the Executive's share of such benefits, calculated as the amount contributed by the Executive immediately prior to termination; or

 

	
  

	
(ii)

	
pay to the Executive a lump sum equal to the estimated net cost to the Corporation of maintaining such benefits for a six month  period based on the Corporation's costs of such benefits at such time.

 

	
5.7 

	
Return of Property

 

Upon any termination of this Agreement, the Executive shall at once deliver or cause to be delivered  to the  Corporation all Confidential  Information  in  the  Executive's possession, whether in written or electronic form, and all books, documents (written or electronic), effects, money, securities and other property belonging to the Corporation and their respective subsidiaries, affiliates and associates or for which the Corporation are liable to others, which are in the possession, charge, control or custody of the Executive.

  

7

  

	
5.8 

	
No Obligation to Mitigate

 

The amounts payable to the Executive hereunder in the event of termination of this Agreement shall not be reduced if the Executive shall secure, or shall not reasonably pursue, alternative employment following the termination of his employment.

 

	
5.9 

	
Provisions That Survive Termination

 

Notwithstanding any termination of this Agreement for any reason whatsoever and with or without cause, the provisions of Sections 4.2, 4.3, 5.6, 5.7, 5.8, 5.9, 7.1, 7.2, 7.3, 7.4 and Article 8 of this Agreement and any other provisions of this Agreement necessary to give efficacy thereto shall survive any such termination and shall continue in full force and effect following such termination.

 

ARTICLE 6 - OBLIGATION TO REMAIN EMPLOYED

 

	
6.1 

	
Executive to Remain Employed

 

	
(1)

	
Subject to the terms and conditions of this Agreement, the Executive covenants that in the event of a Potential Change in Control he will not voluntarily leave the employ of the Corporation until the earlier of (a) three months after the occurrence of such Potential Change in Control or (b) the date on which a Change in Control occurs.

	
(2)

	
Subject to Section 6.1(1), but without prejudice to his rights under Section 7.1, the Executive may at any time terminate this Agreement and his employment hereunder upon 90 days' written notice to the Corporation, in which case the sole entitlement of the Executive shall be the payment to him of accrued salary and benefits to the date of such termination.

 

 ARTICLE 7- EXECUTIVE'S RIGHTS ON A CHANGE I

N CONTROL OR TERMINATION WITHOUT CAUSE

 

	
7.1 

	
Executive's Termination Rights Ater a Change in Control

 

Upon the occurrence of a Change in Control and, within 365 days following the Change of Control,

 

	 	
(a)

	
a change in the employment of the Executive  such  that  the Executive's position or level of responsibility is materially reduced, or

 

	 	
(b) 

	
the attempted termination of the Executive's employment without cause,

 

the Executive shall have the right, exercisable by notice to the Corporation, to terminate this Agreement and  receive the benefits  set out in Section  7.3.  If the Executive  does not terminate this Agreement within such period, his right to terminate the Agreement under this Section 7.1 with respect to such Change in Control shall expire but this Agreement will otherwise continue in full force and effect. The expiry of the Executive1s rights under this Section 7.1 with respect to any particular Change in Control will not prevent the Executive from exercising such right of termination with respect to any subsequent occurrence of a Change in Control.

  

8

  

 

	
7.2 

	
Continuation of Employment for Interim Period

 

If the Executive terminates this Agreement pursuant to Section 7.1, the Executive shall, at the request of the Corporation, continue his employment for a period of up to six months following such termination at his then existing salary and benefits to assist the Corporation in an orderly transition of management. The amount paid to the Executive under this Section 7.2 will not reduce the amount payable under Section 7.3.

 

	
7.3 

	
Benefits on Termination following Change of Control

 

If the Executive terminates this Agreement pursuant to Section 7.1, the Corporation shall:

 

	 	
(a)

	
pay to the Executive an amount equal to the Executive’s annual salary for two years, at the Executive’s salary rate in effect immediately prior to the date notice of termination is given, payable as a lump sum within five business days following the last day of his active employment;

 

	 	
(b)

	
pay to the Executive, within five business days following the date notice of termination is given, the amount  of any unpaid  salary  earned  by the Executive up to and including the date notice of termination is given;

 

	 	
(c)

	
pay to the Executive, within five business days following the date notice of termination is given, the amount of any unpaid vacation pay earned by him up to and including the date notice of termination is given; and

	 	
(d) 

	
at the Executive’s option, the Corporation shall:

 

	 	
(i)

	
continue to make the employer contributions necessary to maintain the Executiv’s coverage pursuant to all benefit plans provided to the Executive by immediately prior  to such  termination (or on the effective date of the Change in Control, if that is more beneficial to the Executive), for a period of six months following such termination and shall deduct from the payment payable to the Executive pursuant to Section 7.3(a) the amount of any employee contributions necessary to maintain such coverage for such period based on any such contributions which were in effect immediately prior to such termination (or on the effective date of the Change in Control, if such contributions were lower); provided that if it is not possible to maintain the Executive’s coverage under such benefit plans the Corporation will,  in  lieu  thereof,  provide  comparable  benefits coverage for a period of six months following termination and make contributions towards those benefits on behalf of the Executive, net of the Executive's share of such benefits, calculated as the amount contributed by the Executive immediately prior to termination; or

  

9

  

 

	 	
(ii)

	
pay to the Executive a lump sum equal to the estimated net cost to the Corporation of maintaining such benefits for a six month  period based on the Corporation's costs of such benefits at such time.

 

	
7.4 

	
Letter of Credit

 

In order to ensure the payment of all amounts and benefits provided for under Section 7.3, the Corporation shall immediately following a Change in Control establish an irrevocable standby letter of credit in favour of the Executive from a Canadian or US chartered bank in an amount at least equal to the amount that would be payable under Section 7.3(a) if the Executive had terminated this Agreement under Section 7.1 on the date such letter of credit is established.

 

	
7.5 

	
Successor

 

The Corporation shall use its best efforts to require any_ successor, whether direct or indirect, to all or substantially all of the business and/ or assets of the Corporation to expressly agree to assume and to perform this Agreement in the same manner that the Corporation would have been required to perform it if no such succession had occurred. If the Corporation fails to obtain such Agreement prior to the effective date of such succession, the Executive shall be entitled to terminate this Agreement and receive the payments and benefits outlined in Section 7.3(a) as if the Executive had terminated this Agreement upon a Change in Control.

ARTICLE 8 - INDEMNITY

 

	
8.1 

	
General

 

To the extent that it is lawfully able to do so, the Corporation agree to indemnify and hold harmless the Executive from and against any losses, costs, claims and liabilities which the Executive may suffer or incur by reason of any matter or thing which the Executive may properly do or have done or cause to be done as an employee, officer or director of the Corporation.

 

	
8.2 

	
Legal Proceedings

 

To the extent that it is lawfully able to do so, the Corporation shall indemnify the Executive and his heirs and legal representatives against all costs, charges and expenses (including any amounts paid to settle any actions or satisfy any judgment)  reasonably incurred by the Executive in respect of any civil, criminal or administrative action or proceeding to which he is made a party by reason of being or having been an employee, director or officer of the Corporation if:

 

	
  

	
(a)

	
the Executive acted honestly and in good faith with a view to the best interests of the Corporation; and

  

10

  

 

	
  

	
(b)

	
in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, the Executive had reasonable grounds for believing that his conduct was lawful.

 

	
8.3 

	
Related Corporations

 

The Executive shall not be required to serve as a director, officer or employee of any related corporation unless at the time the Executive undertakes such position, the related corporation and the Corporation jointly and severally agree to indemnify the Executive on the same terms and conditions as are set forth in Sections 8.1and 8.2.

ARTICLE 9 - GENERAL

 

	
9.1 

	
Annual Review

 

The parties agree to review the terms of this Agreement  on an annual  basis commencing in December 2011and to consider whether it would be appropriate to amend any term of this Agreement in view of the parties' circumstances at the time of such review.

 

	
9.2 

	
Withholding

 

Any payments contemplated to be made hereunder are subject to applicable and required withholdings.

 

	
9.3 

	
Benefit of Agreement/Assignment

 

This Agreement  shall enure  to the benefit of and  be binding  upon  the heirs, executors, administrators and legal personal  representatives of the Executive and the successors and permitted assigns of the Corporation. No party may assign this Agreement or such party's rights and obligations hereunder; in whole or in part, without the prior written consent of the other parties.

 

	
9.4 

	
Entire Agreement

 

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and cancels and supersedes any prior understanding or agreement between the parties hereto with respect thereto.  There are no representations, warranties, forms, conditions, undertakings or collateral agreements, express, implied  or statutory between the parties other than as expressly set forth in this Agreement.

 

	
9.5 

	
Amendments and Waivers

 

No amendment to this Agreement shall be valid or binding unless set forth in writing and duly executed by both of the parties hereto.  No waiver of any breach of any provision of this Agreement shall be effective or binding unless made in writing and signed by the party purporting to give the same and, unless otherwise provided in the written waiver, shall be limited to the specific breach waived.

 

	
9.6 

	
Severability

 

If any provision of this Agreement is determined to be invalid or unenforceable in whole or in part, such invalidity or unenforceability shall attach only to such provision or part thereof and the remaining part of such provision and all other provisions hereof shall continue in full force and effect.

  

11

  

	
9.7 

	
Notices

 

Any demand, notice or other communication (hereinafter in this Section 9.5 referred to as a “Communication”) to be given in connection with this Agreement shall be given in writing and may be given by personal delivery or by registered mail addressed to the recipient as follows:

 

To the Executive:

 

Grant White

111 Summerhill Avenue, Toronto, Ontario, M4T 1B1

 

  To the Corporation: Gold Bag Inc

 

Unit 2500 -1Dundas St. West

Toronto, ON., M5G 1Z3

 

or such other address or individual as may be designated by notice by either party to the other from time to time.   Any Communication given by personal  delivery  shall be conclusively deemed to have been given on the day of actual delivery thereof and, if made or given by registered mail, on the third day, other than a Saturday, Sunday or sta.tutory holiday in Nevada, following the deposit thereof in the mail.  If the party giving any Communication knows or ought reasonably to know of any difficulties with the postal system which might affect the delivery of mail, any such Communication shall not be mailed but shall be given by personal delivery.

 

	
9.8 

	
Further Assurances

 

Each party shall from time to time execute and deliver all such further documents and instruments and do all acts and things as the other party may reasonably require to effectively carry out or better evidence or perfect the full intent and meaning of this Agreement.

 

	
9.9 

	
Governing Law

 

This Agreement shall be governed by and construed in accordance with the laws of the state of Nevada applicable therein.

 

	
9.10 

	
Attornment

 

For the purpose of all legal proceedings, this Agreement shall be deemed to have performed in the State of Nevada and the courts of Nevada shall have jurisdiction to entertain  any action arising under  this Agreement.   The parties hereby attorn  to the jurisdiction of the courts of the state of Nevada.

  

12

  

	
9.11 

	
Independent Advice

 

The Executive hereby acknowledges that he has had an opportunity to seek and obtain independent legal advice in respect of this Agreement, and confirms that he has either sought and obtained such advice or waives any right of action he may have against the Corporation as a result of failing to obtain such advice.

 

	
9.12 

	
Counterparts

 

This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

IN WITNESS WHEREOF the parties have executed this Agreement as of the date first set out above.

 

 

/s/ Grant R. White

Grant R. White

 

 

Gold Bag, Inc.

 

/s/ Richard O. Weed

Richard O. Weed, Secretary

Authorized Signing Officer

  

13

  

 

 

SCHEDULE “A” DUTIES AND SALARY

 

This position reports directly to the Board of Directors of the Corporation.

 

A.         OVERVIEW

 

The primary responsibility of the President and Chief Executive Officer (the "CEO") is to guide strategy, manage and run the entire business of the Corporation.

 

The CEO shall have such skills and abilities as are considered necessary by the Corporation. The CEO (i) shall act honestly and in good faith in the best interests of the Corporation and its shareholders and (ii) must exercise the degree of care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.

 

The CEO works with and is accountable to the Board of Directors of the Corporation and its shareholders.

 

B.         Commencing Salary and Option Grant

 

US$252,000 per annum effective January 1, 2011

 

Initial Option Grant:

 

4,000,000 options with a strike price of $0.50

  

14

  

SCHEDULE "B" ADDITIONAL BENEFITS

 

Bonus: Eligibility to receive bonuses awarded by Corporation to officers and management for achievements, to be reviewed every six months.

 

Life Insurance: The Corporation will maintain life insurance for the Executive in an amount equal to US$2,000,000.

 

Medical/Dental/Long-term Disability: The Executive will obtain medical, dental and long­ term disability coverage through  a provider  in Canada  (the "Benefit Plan").  The Corporation will reimburse the monthly cost of the Benefit Plan to the Executive, such amount not to exceed US$1,000 per month.

 

 

 

 

 

 

 

15Unassociated Document

 

Exhibit 10.6

GOLD BAG, INC.

C/O WEED & CO. LLP

4695 MACARTHUR COURT, SUITE 1430, NEWPORT BEACH, CALIFORNIA 92660

TELEPHONE (949) 475-9086 FACSIMILE (949) 475-9087

 

email: rick@weedco.com

(949) 475-9086 EXT. 22

 

February 28, 2011

Mr. Dorian L. (Dusty) Nicol

1590 Little Raven Street, Unit 602

Denver Colorado 80202 USA

 

Phone: 303 886 0458

Email: dusty@tournigan.com

 

RE: Employment Agreement

 

Greetings:

 

The purpose of this letter is to set forth the terms and conditions of an at-will employment agreement (the “Agreement”) between Dorian L. (Dusty) Nicol, an individual (“NICOL” or the “Executive”), and Gold Bag, Inc., a Nevada corporation (“GBGI” or the “Company”) that shall become effective as of January 1, 2011.

 

GBGI shall appoint NICOL to serve as GBGI’s Director of Exploration (“DOE”).  GBGI shall provide NICOL with the indemnification protections set forth under Nevada law.

 

For a minimum period of one year, NICOL shall devote so much of his time and attention to his duties as DOE as is reasonably required to meet the objectives specified by GBGI’s CEO, Grant White.  After one year from the effective date of this Agreement, termination of this Agreement by either party will require a minimum of 90 days’ written notice.  NICOL will report directly to the CEO, Grant White and his role and responsibilities will include among other things:

	
  

	
i)

	
Coordinating and ensuring that all geologic due diligence on all potential acquisitions and investments is carried out professionally, responsibly, thoroughly and accurately with the best possible consultants and employees being selected by and manged by NICOL for this purpose.

 

	
  

	
ii)

	
Managerial oversite over all existing and future owned projects with regards to exploration work carried out on the properties including budget, third party contractor and consultant retention, and drill target review.

	
  

	
iii)

	
All such other geologic and exploration work deemed appropriate by the CEO, Grant White.

 

  

  

  

Gold Bag, Inc.

 

Commencing upon signing of this agreement and retroactive to January 1, 2011, GBGI shall compensate NICOLwith a payment of Twelve Thousand Dollars ($12,000) per month, paid bi- monthly in arrears.   This compensation shall be reviewed annually.  NICOL shall also be able to receive a possible bonus every 6 months as determined by the board based on business success during the prior 6 month period.  Notwithstanding this periodic review, GBGI shall pay to NICOL a bonus of $ 15,000 within 5 days of the closing of GBGI’s acquisition of Metallum Resources PLC as a Bonus Finder’s Fee.  GBGI shall also reimburse NICOL for all approved business related expenses. NICOL shall also be able to participate in a GBGI employee stock option plan with an initial grant of 1 million options under the plan with an exercise price of $0.50 per share.

 

Trade Secrets and Proprietary Information.  The Executive agrees and understands that due to the Executive's position with the Company, the Executive will be exposed to, and has received and will receive, confidential and proprietary information of the Company or relating to the Company's business or affairs collectively, the “Trade Secrets”), including but not limited to technical information, product information and formulae, processes, business and marketing plans, strategies, customer information, other information concerning the Company's services or products, promotions, development, financing, expansion plans, business policies and practices and other forms of information considered by the Company to be proprietary and confidential and in the nature of trade secrets. Trade Secrets shall not include any such information which (A) was known to the Executive prior to his employment by the Company or (B) was or becomes generally available to the public other than as a result of a disclosure by the Executive in violation of the provisions of this Section.  Except to the extent that the proper performance of the Executive's duties, services and responsibilities hereunder may require disclosure, the Executive agrees that during the Employment Term and at all times thereafter the Executive will keep such Trade Secrets confidential and will not disclose such information, either directly or indirectly, to any third person or entity without the prior written consent of the Company.  This confidentiality covenant has no temporal, geographical or territorial restriction.  On the Termination Date unless the Executive remains as an employee of the Company thereafter (in which case, on the date which the Executive is no longer an employee of the Company), the Executive will promptly supply to the Company all property, keys, notes, memoranda, writings, lists, files, reports, customer lists, correspondence, tapes, disks, cards, surveys, maps, logs, machines, technical data, formulae or any other tangible product or document which has been produced by, received by or otherwise submitted to and retained by the Executive in the course of his employment with the Company.  Any material breach of the terms of this Paragraph shall be considered Cause.

 

Prohibited and Competitive Activities.  The Executive and the Company recognize that due to the nature of the Executive's engagement hereunder and the relationship of the Executive to the Company, the Executive has had and will have access to, has had and will acquire, and has assisted and may continue to assist in, developing confidential and proprietary information relating to the business and operations of the Company and its affiliates, including, without limitation, Trade Secrets.  The Executive acknowledges that such information has been and will be of central importance to the business of the Company and its affiliates and that disclosure of it to, or its use by, others (including, without limitation, the Executive (other than with respect to the Company's business and affairs)) could cause substantial loss to the Company.

 

  

  

  

Gold Bag, Inc.

 

The Executive and the Company also recognize that an important part of the Executive's duties will be to develop good will for the Company and its affiliates through the Executive's personal contact with Clients (as defined below), employees, and others having business relationships with the Company, and that there is a danger that this good will, a proprietary asset of the Company, may follow the Executive if and when the Executive's relationship with the Company is terminated.  The Executive accordingly agrees as follows:

 

(i) Prohibited Activities.  The Executive agrees that the Executive will not at any time during the Employment Term: (A) (other than in the course of the Executive's employment) disclose or furnish to any other person or, directly or indirectly, use for the Executive's own account or the account of any other person, any Trade Secrets, no matter from where or in what manner he may have acquired such Trade Secrets, and the Executive shall retain all such Trade Secrets in trust for the benefit of the Company, its affiliates and the successors and assigns of any of them, (B) directly or through one or more intermediaries, solicit for employment or recommend to any subsequent employer of the Executive the solicitation for employment of, any person who, at the time of such solicitation, is employed by the Company or any affiliate, (C) directly or indirectly, whether for the Executive's own account or for the account of any other person, solicit, divert, or endeavor to entice away from the Company or any entity controlled by the Company, or otherwise engage in any activity intended to terminate, disrupt, or interfere with, the Company's or any of its affiliates’ relationships with, Clients, or otherwise adversely affect the Company's or any of its affiliates' relationships with Clients or other business relationships of the Company or any affiliate thereof, or (D) publish or make any statement critical of the Company or any shareholder or affiliate of the Company or in any way adversely affect or otherwise malign the business or reputation of any of the foregoing persons (any activity described in clause (A), (B), (C) or (D) of this Section being referred to as a Prohibited Activity”); provided, however, that if in the written opinion of Counsel, the Executive is legally compelled to disclose Trade Secrets to any tribunal or else stand liable for contempt or suffer other similar censure or penalty, then the disclosure to such tribunal of only those Trade Secrets which such counsel advises in writing are legally required to be disclosed shall not constitute a Prohibited Activity provided that the Executive shall give the Company as much advance notice of such disclosure as is reasonably practicable.  As used herein, the term “Clients” shall mean those persons who, at any time during the Executive's course of employment with the Company (including, without limitation, prior to the date of this Agreement) are or were clients or customers of the Company or any affiliate thereof or any predecessor of any of the foregoing.

 

  

  

  

Gold Bag, Inc.

 

Remedies.  The Executive agrees that any breach of the terms of this Section would result in irreparable injury and damage to the Company for which the Company would have no adequate remedy at law. The Executive therefore agrees that in the event of said breach or any threat of breach, the Company shall be entitled to an immediate injunction and restraining order to prevent such breach and/or threatened breach and/or continued breach by the Executive and/or any and all persons and/or entities acting for and/or with the Executive, without having to prove damages. The terms of this Paragraph shall not prevent the Company from pursuing any other available remedies to which the Company may be entitled at law or in equity for any breach or threatened breach hereof, including but not limited to the recovery of damages from the Executive. The provisions of this Section 6 shall survive any termination of this Agreement. The existence of any claim or cause of action by the Executive against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements of this Section.

 

Proprietary Information and Inventions.  The Executive agrees that any and all inventions, discoveries, improvements, processes, formulae, business application software, patents, copyrights and trademarks made, developed, discovered or acquired by him prior to and during the Employment Term, solely or jointly with others or otherwise, which relate to the business of the Company, and all knowledge possessed by the Executive relating thereto collectively, the “Inventions”), shall be fully and promptly disclosed to the Board of Directors and to such person or persons as the Board of Directors shall direct and the Executive irrevocably assigns to the Company all of the Executive's right, title and interest in and to all Inventions of the Company and all such Inventions shall be the sole and absolute property of the Company and the Company shall be the sole and absolute owner thereof.  The Executive agrees that he will at all times keep all Inventions secret from everyone except the Company and such persons as the Board of Directors may from time to time direct.  The Executive shall, as requested by the Company at any time and from time to time, whether prior to or after the expiration of the Employment Term, execute and deliver to the Company any instruments deemed necessary by the Company to effect disclosure and assignment of the Inventions to the Company or its designees and any patent applications (United States or foreign) and renewals with respect thereto, including any other instruments deemed necessary by the Company for the prosecution of patent applications, the acquisition of letters patent and/or the acquisition of patents or copyrights in any and all countries and to vest title thereto in the Company or its nominee.

 

Representations and Warranties of the Executive.  The Executive represents and warrants to the Company that:

 

(i) The Executive's employment by the Company as contemplated will not conflict with, and will not be constrained by, any prior or current employment, consulting agreement or relationship, whether written or oral and it is understood and agreed by the Company that NICOL will be able to continue his role as CEO of Tournigan Energy; and

 

  

  

  

Gold Bag, Inc.

 

(ii)  The Executive does not possess confidential information arising out of any employment, consulting agreement or relationship with any person or entity other than the Company which could be utilized in connection with the Executive's employment by the Company.

 

Binding Effect or Assignment.  This Agreement shall inure to the benefit of and be binding upon the parties and their respective heirs, executors, representatives, states, successors and assigns, including any successor or assign to all or substantially all of the business and/or assets of the Company, whether direct or indirect, by purchase, merger, consolidation, acquisition of stock, or otherwise; provided, however, that the Executive, or any beneficiary or legal representative of the Executive, shall not assign all or any portion of the Executive's rights or obligations under this Agreement without the prior written consent of the Company.

 

Notices.  All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given or made as of the date delivered, mailed or transmitted, and shall be effective upon receipt.

 

Amendment and Modification.  No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by each of the Executive and the Company. No such waiver or discharge by either party hereto at any time or any waiver or discharge of any breach by the other party hereto of, or compliance with, any condition or provision of this agreement to be performed by such other party, shall be deemed a waiver or discharge of similar or dissimilar provisions or conditions, or a waiver or discharge of any breach of any provisions, at the same or at any prior or subsequent time.

 

Governing Law.  This Agreement shall be governed by and construed and enforced in accordance with the laws of Nevada without giving effect to the conflict of law principles of that state.

 

Severability.  In the event that any one or more of the provisions of this Agreement shall be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other portion of this Agreement, and this Agreement shall be construed as if such provision had never been contained herein.

 

Withholding Taxes.  Notwithstanding anything contained herein to the contrary, all payments required to be made hereunder by the Company to the Executive, or his estate or beneficiaries, shall be subject to the withholding of such amounts as the Company may reasonably determine it should withhold pursuant to any applicable federal, state or local law or regulation.

 

  

  

  

Gold Bag, Inc.

 

Arbitration of Disputes.  The parties hereto mutually consent to the resolution by arbitration of all claims and controversies arising out of or relating to this Agreement.

 

Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 

Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes any and all prior agreements, written or oral, understandings and arrangements, either oral or written, between the parties with respect to the subject matter, and shall, as of the date hereof, constitute the only employment agreement between the parties.

 

Further Assurances.  Each party shall do and perform, or cause to be done and performed, all further acts and things and shall execute and deliver all other agreements, certificates, instruments, and documents as any other party reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated.

 

Construction.  The headings in this Agreement are for reference purposes only and shall not limit or otherwise affect the meaning or interpretation of this Agreement. GBGI

 

If this Agreement is acceptable to NICOL, then sign and return a copy, together with a complete business biography that includes the information required for the Form 8-K.

 

 

 

	 	Sincerely yours, 	 
	 	 
Gold Bag Inc.

	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Grant White	 
	 	 	Grant White	 
	 	 	President and CEO	 

 

APPROVED & AGREED:

 

/s/ Dusty Nicol

Dorian L. (Dusty) Nicol

 

/s/ Grant White

Grant White

President and CEO

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