Document:

ex10_1.htm

Exhibit 10.1

ASSIGNMENT OF

MINERAL PROPERTY OPTION AGREEMENT

 

THIS AGREEMENT is made as of the 23rd day of June, 2011. BETWEEN:

 

WYOMEX LLC, a Wyoming limited liability company having a mailing address at P.O. Box 185, Cheyenne, Wyoming 82003-0185, USA;

(the “Optionor”)

OF THE FIRST PART

AND:

J2 MINING VENTURES LTD., a company having an office at 3040 North Campbell Avenue, Suite 110, Tucson, Arizona 85719, USA

(the “Optionee”)

OF THE SECOND PART

AND:

TITAN IRON ORE CORP., a Nevada company having a business address at 848 North Rainbow Boulevard, Suite 2096, Las Vegas, Nevada, 89107, USA

(the “Assignee”)

OF THE THIRD PART

 

WHEREAS:

A.           The Optionor is the recorded and beneficial owner of an undivided 100% interest in an iron ore mineral property located in the State of Wyoming, as described in Schedule A hereto (the “Property”);

  

  

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B.           The Optionor has entered into an Option and Purchase Agreement with the Optionee dated May 26, 2011 (the “Property Option Agreement”), whereby the Optionor granted an exclusive option to the Optionee to acquire an undivided right, title and interest in and to the Property, by paying certain consideration on the terms and conditions therein provided, which Property Option Agreement is hereto attached as Schedule B and forms and integral part of this Assignment;

C.           The Optionee has agreed to assign all its rights and interests in the Property and the

Property Option Agreement, and transfer all of its obligations under the Property Option

Agreement, to the Assignee, and the Assignee accepts and agrees to be bound by the terms of the Property Option Agreement;

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of $10.00 and for other good and valuable consideration, the receipt and sufficiency whereof by the Optionee is hereby acknowledged, the parties agree as follows:

1.            Definitions

The following words, phrases and expressions shall have the following meanings:

 

	
  

	
(a)

	
“Option” means the option granted by the Optionor to the Optionee to acquire an undivided 100% right, title and interest in and to the Property as more particularly set forth in Section 1 of the Property Option Agreement, which Option is nowbeing assigned by the Optionee to the Assignee.

 

	
  

	
(b)

	
“Option Period” means the period from the date hereof to the date at which the Assignee has performed its obligations to acquire its 100% interest in the Property as set out in Section 2 hereof, which ever shall be the lesser period;

(c)            “Property” means the mineral claims described in Schedule “A”;

 

	 	

(d)

	

“Property Option Agreement” means the agreement dated May 26, 2011 between the Optionor and the Optionee, which agreement is attached in its entirety as Schedule B.

 

2.            Assignment

 

	
  

	
(a)

	

The Optionee hereby transfers and assigns the Option, and all of its interest in the Property Option Agreement and any and all rights or interest it may have in the Property, to the Assignee, in consideration for a total of 18,000,000 Common shares in the capital of the Assignee. In addition, the Assignee will reimburse the Optionee for any direct out-of-pocket expenses incurred by the Optionee in entering into the Property Option Agreement.

 

  

  

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(b)

	
Assignee agrees to be bound by all the terms and conditions of the Property Option Agreement.

(c)            Optionor accepts the assignment by the Optionee to the Assignee.

3.            Exercise of Option

	
  

	
(a)

	
The Assignee may in its sole discretion at any time accelerate the payment of the amounts required to exercise the Option pursuant to Section 1 of the Property Option Agreement, and thereby acquire the Property.

 

	
  

	
(b)

	
If and when the Option has been exercised, a 100% right, title and interest in and to the Property will vest to the Assignee free and clear of all charges, encumbrances and claims.

4.            Representations, Warranties and Covenants of the Optionor

The Optionor confirms to the Assignee that all of the representations, warranties and covenants made by the Optionor in the Property Option Agreement continue to be valid and subsisting.

5.            Representations, Warranties and Covenants of the Assignee

	
  

	
(a)

	
The Assignee is a company duly organized validly existing and in good standing under the laws of the State of Nevada.

	
  

	
(b)

	
The Assignee has a full power and authority to carry on its business and to enter into this Agreement and any agreement or instrument referred to or contemplated by this Agreement.

	
  

	
(c)

	
Neither the execution and delivery of this Agreement, nor any of the agreements referred to herein or contemplated hereby, nor the consummation of the transactions hereby contemplated conflict with, result in the breach of or accelerate the performance required by, any agreement to which it is a party.

	
  

	
(d)

	
The execution and delivery of this Agreement and the agreements contemplated hereby will not violate or result in the breach of the laws of any jurisdiction applicable or pertaining thereto or of its constating documents.

(e)          This Agreement constitutes a legal, valid and binding obligation of the Assignee.

 

  

  

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(f)

	
As stipulated in the Property Option Agreement, for greater clarity, the Assignee confirms that it shall be responsible for claim fees to the U.S. Bureau of Land Management and Albany County for the Property while the Option is in effect.

 

	
  

	
(g)

	

As stipulated in the Property Option Agreement, for greater clarity, the Assignee confirms that the Assignee shall provide copies of exploration data collected by the Optionee on the Property within 30 days of termination of this agreement and upon receiving a written request from the Optionor for such data.

 

6.            Indemnity and Survival of Representations

 

	
  

	

(a)

	

The representations and warranties hereinbefore set out are conditions on which the parties have relied in entering into this Agreement and shall survive the acquisition of any interest in the Property by the Assignee and each of the parties will indemnify and save the other harmless from all loss, damage, costs, actions and suits arising out of or in connection with any breach of my representation, warranty, covenant, agreement or condition made by them and contained in this Agreement.

 

	
  

	
(b)

	
The Optionor agrees to indemnify and save harmless the Assignee from any liability to which it may be subject arising from any mining operations carried out by the Optionor or at is direction on the Property. The Assignee agrees to indemnify and save harmless the Optionor from any liability to which it may be subject arising from any mining operations carried out by the Optionee or at its direction on the Property.

7.            Entire Agreement

The parties hereto acknowledge that this Agreement, together with all Schedules referred to herein, represents the entire Agreement between and among the parties.

  

  

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8.            Further Assurances

Each of the parties to this Agreement shall from time to time and at all times do all such further acts and execute and deliver all further deeds and documents as shall be reasonably required in order fully to perform and carry out the terms of this Agreement.

IN WITNESS WHEREOF the parties hereto have duly executed this Agreement and the corporate seals of the Optionee and the Assignee have been hereunto affixed In the presence of their duly authorized officers in that behalf on the date first written above.

WYOMEX LLC

 

  

  

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8.             Further Assurances

 

Each of the parties to this Agreement shall from time to time and at all times do all such further acts and execute and deliver all further deeds and documents as shall be reasonably required in order fully to perform and carry out the terms of this Agreement.

IN WITNESS WHEREOF the parties hereto have duly executed this Agreement and the corporate seals of the Optionee and the Assignee have been hereunto affixed in the presence of their duly authorized officers in that behalf on the date first written above.

WYOMEX LLC

  

  

  

SCHEDULE A--THE PROPERTY

 

T.19N, R.72W, 6th P.M.,

ALBANY COUNTY, WYOMING

1.   UNPATENTED FEDERAL US MINING CLAIMS (BLM)

	
BLM Serial Number

	
Claim Name

	
Location

	
WMC 127756

	
VAN 1

	
SW1/4 Sec. 24

	
WMC 127757

	
VAN 2

	
SW1/4 Sec. 24

	
WMC 127758

	
VAN 3

	
SW1/4 Sec. 24

	
WMC 127762

	
VAN 7

	
SW1/4 Sec. 24

	
WMC 127763

	
VAN 8

	
SW1/4 Sec. 24

	
WMC 127764

	
VAN 9

	
SW1/4 Sec. 24

	
WMC 127765

	
VAN 10

	
SW1/4 Sec. 24

	
WMC 127766

	
VAN 11

	
SW1/4 Sec. 24

	
WMC 127767

	
VAN 12

	
SW1/4 Sec. 24

	
WMC 127744

	
TI 15

	
NW1/4 Sec. 14

	
WMC 127745

	
TI 16

	
NE1/2 Sec. 14

	
WMC 268116

	
VAN 13

	
SE1/4 Sec. 24 and NE1/4 Sec. 25

	
WMC 268117

	
VAN 14

	
SE1/4 Sec. 24 and NE1/4 Sec. 25

	
WMC 268118

	
VAN 15

	
NE1/4 Sec. 24 and SE1/4 Sec. 24

	
WMC 268118

	
VAN 16

	
NE1/4 Sec. 24 and SE1/4 Sec. 24

	
WMC 268120

	
VAN 17

	
NE1/4 Sec. 24 and SE1/4 Sec. 24

	
WMC 268121

	
VAN 18

	
NW1/4 Sec. 24

	
WMC 268122

	
VAN 19

	
NW1/4 Sec. 24

	
WMC 268123

	
VAN 20

	
NW1/4 Sec. 24

	
WMC 268124

	
VAN 21

	
NW1/4 Sec. 24 and NE1/4 Sec. 24

	
WMC 268125

	
VAN 22

	
NE1/4 Sec. 24

	
WMC 268126

	
VAN 23

	
NE1/4 Sec. 24

	
WMC 268127

	
VAN 24

	
NE1/4 Sec. 24

2.   LEASED LANDS

	
  

	
·

	
Chugwater Mineral Lease-- SE 1⁄4 of Section 22, T. 19N, R. 71W, 6th P.M.

	
  

	
·

	
Chugwater Creek Lease—SW1/4 of Sec. 22, 19N, R.71W, 6th P.M.

  

  

  

 

Schedule B

OPTION AND PURCHASE AGREEMENT

This OPTION AND PURCHASE AGREEMENT is made and entered into as of the 26th day of May, 2011 (the “Effective Date”) by and between J2 Mining Ventures Ltd. (“J2”), and Wyomex LLC, a Wyoming limited liability company (“Owner”).

Recitals

A.           Owner owns mineral rights to certain unpatented lode mining claims, fee lands, leased lands, and other interests in real property situated in Albany County, Wyoming, (the “Property”) which are more fully described in Exhibit A attached to this Agreement, incorporated herein by this reference.

B.           J2 desires to acquire an option to purchase the Property from Owner, and Owner is willing to grant an option to purchase the Property to J2, on the terms and conditions herein specified.

NOW, THEREFORE, for and in consideration of the mutual covenants herein contained, and the payments made by J2 to Owner, the parties agree as follows:

1.           Grant of Option. The Owner does hereby grant to J2, upon the terms and conditions and for the purposes hereinafter set forth, an exclusive, irrevocable option (the “Option”) to purchase the Property. In consideration for receiving said Option, J2 shall pay to Owner the sum of US$5,000 (the “Option Consideration”) which shall be paid within 30 days of the signing of the Option Agreement (the “Effective Date”).

2.           Option Term. The term of the Option shall commence on the Effective Date and shall initially extend until the earlier of (a) the date that access to the Property is sufficient for on-the-ground due diligence purposes, or (b) June 30, 2011 (the “Initial Option Term”), and may be extended for a maximum of six (6) successive one-month periods, at the sole election of J2, through notice to the Owner and tender of US$5,000 from J2 to Owner for each of the first three (3) additional months and US$15,000 for each additional month for months 4 through 6 as may be desired by J2. Should J2 desire to extend the Initial Option Term, it shall give such notice and make appropriate payment to Owner no later than five (5) business days following the end of the Initial Option Term or each extension thereof.

3.            Exclusive Access and Use of Property. J2 shall have rights to exclusive access to and use of the Property during the Option Term, subject to the rights of Owner as set forth herein.

4.            Exercise of Option. Subject to the terms and conditions of a definitive agreement to be executed by both parties to this Initial Agreement and prior to the date of termination of the sixth and final extension (November 30, 2011), J2 may elect to exercise the Option at any time during the Option Term by giving Owner written notice of such election. Upon receipt of such notice, Owner and J2 shall promptly negotiate and

  

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execute an Asset Purchase Agreement (“APA”) for the purchase and sale of the Property. The assets of Owner to be purchased, as more specifically described in the APA, will include the unpatented mining claims, fee lands, mineral leases, any geological reports, data, laboratory information related thereto, buildings, mining equipment located within the Property, water rights, accesses and rights-of-way, and generally all rights and appurtenances which are directly or indirectly connected with the mining and business activities of Owner related to the Property, all of which shall be delivered free and clear of all liens or other encumbrances. The Owner and J2 in the APA shall make such representations and warranties, and provide such covenants and indemnities that are typical and customary for a mineral conveyance transaction involving unpatented mining claims.

5.            Purchase Terms. The total Purchase Price for the Property is US$ Seven million dollars (US $7.0 million), which shall consist of the following components:

 

	
  

	
a.

	
Payment at Closing by J2 to Owner of the Initial Payment, which is defined as the sum of US$85,000;

 

	
  

	
b.

	
All Option monies or consideration previously paid from J2 to and received by Owner;

	
  

	
c.

	
Commencing six (6) months from the date of Closing and receipt by Owner of the $85,000 payment, and every six (6) months thereafter, J2 shall pay Seller, as Advance Minimum Royalty, the initial amount of $62,500 (the Base Advance Minimum Royalty), as adjusted hereunder, until “commencement of commercial production” (as that term will be defined in the APA) from the Property. The Base Advance Minimum Royalty amount shall be first adjusted, at the second time that an Advance royalty payment is due, by multiplying the Base Advance Minimum Royalty amount by the Producer Price Index (“PPI”). The PPI is defined as that index published by the United States Department of Labor and further identified as Producer Price Index: Iron Ore Mining: Iron Ores; Base Date 9712 (2001-2010) in effect for the date two (2) months prior to the date designated for the first adjustment. For each successive period that Advance Minimum Royalty payments are due, the adjusted Advance Minimum Royalty amount paid for the preceding period shall be similarly adjusted.

	
  

	
d.

	
At the commencement of commercial production from the Property, the semi-annual Advance Minimum Royalty shall convert to a 4.5% gross metal value royalty (“GMR”) on iron ore and/or other mineral materials produced and sold from the Property (the “Production Royalty”). Except for events of Force Majeure (including non-operation of the facilities after startup) in no event shall the Production Royalty paid to Owner be less than US$150,000 in any given calendar year.

 

  

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“Commencement of commercial production” as used herein shall be defined as the first quarter of production in which 4.5 percent of the metal values or gross proceeds from the sales of mineral materials derived from the Property exceed the amount of the Minimum Advance Royalty. Thereafter, the semi-annual royalty payments shall be the larger of the amount of the Minimum Advance Royalty or 4.5% of gross metals value or gross proceeds from sales of all mineral materials derived from the Property

Each Production Royalty payment shall be accompanied by a statement showing the amount of iron product and all other mineral materials produced during the previous quarter and the application of any Advance Minimum Royalty or the amount of the 4.5% Production Royalty. Owner in the APA shall receive standard inspection and audit rights relative to the Production Royalty records.

Subsequent to the payment to and receipt by Owner of the full amount of $7.0 million as set forth herein, the Production Royalty shall be reduced, and J2 shall pay Owner a GMR royalty of 1.5% for all iron product and/or other mineral materials mined and sold from the Property during the previous month. Each such royalty payment shall be accompanied by a statement showing the amount of iron product and/or other materials mined and sold during the previous month. Owner shall have identical inspection and audit rights as mentioned above.

6.           Compliance with Laws and Insurance. During all periods in which J2 is operating the Property pursuant to this Agreement, J2 shall comply with any and all applicable laws relating to working conditions, wages and hours, workmen’s compensation, mine safety, environmental laws, reclamation rules and regulations, including those related to mine closure proceedings. J2 shall procure and maintain such insurance, including comprehensive general liability and vehicular liability insurance, on the Property, or on any portions of the surface which J2 is using, in minimum amounts of One million dollars per occurrence (combined limits).

7.           Inspection. Owner or its authorized agents shall have the right, at all times during the term of this Agreement, to enter upon and inspect the Property and all workings thereof and structures thereon, and to make any survey Owner may deem necessary, either for the purpose of checking the amount of material mined or for an examination of the physical condition of the Property and workings and the manner and conduct of the mining operations, and for the purpose of taking samples of any material produced therefrom.

8.           Amendment; Relocation; Other Actions. During the term of this Agreement, J2 shall have the right (but not the obligation), in the name of Owner, to amend or relocate any or all of the unpatented mining claims in the Property provided, such actions do not affect or endanger the validity of the claims; to locate lode claims on ground theretofore covered by placer claims and vice versa, to locate mill sites on ground theretofore covered by mining claims and vice versa, to locate state claims on ground

  

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theretofore covered by federal claims or mill sites and vice versa, to locate any fractions resulting from such actions, and to take such other actions respecting any or all of the Property as may be authorized by any future federal or state mining laws and as may be determined by J2 to be necessary or desirable in connection with or in furtherance of operations under this Agreement or the protection or advancement of J2’s rights under this Agreement. The rights of J2 under this Agreement shall extend to all mining claims, mill sites, leases, and other interests located, amended, relocated, applied for, acquired, or otherwise affected by actions taken pursuant to this Section and all such interests shall be considered as part of the Property. All expenses incurred by J2 in connection with such actions shall be borne by J2. J2 shall notify Owner in writing at least 15 days in advance of its intent to perform any of the actions described above.

9.            Property Taxes. During the term of this Agreement, J2 shall pay any and all real property taxes and assessments levied upon the Property by the State of Wyoming, or any other government entity for any tax year in which this Agreement is in effect. J2 shall have the right to contest in good faith the validity or the amount of any such tax or assessment and may withhold payment of any such contested tax or assessment so long as such withholding does not cause title or rights to any interest in the Property to be detrimentally affected.

10.           Indemnity. J2 shall indemnify and save harmless Owner, its members, shareholders, officers, managers, employees and directors from and against any and all claims, demands, suits or causes of action in law or equity for damages and injuries occurring on or about the Property and arising out of J2’s operations under this agreement.

11.           Default. In the event that Owner does not receive any payment referred to in this Agreement in a timely fashion, Owner shall immediately notify J2 and J2 shall, within fifteen (15) days of receipt of said notice, cure such failure by making the payment to Owner. In the event that J2 does not cure such failure within such fifteen day period, this agreement shall terminate and J2 shall deliver immediate, peaceable possession of the Property and all information and data regarding the Property previously provided to J2 by Wyomex, and all information and data developed by J2 regarding the Property, including but not limited to drill results and drill logs, geological mapping and reports, assays, maps, claim and lease data, surface owner’s agreements, and all other materials developed or acquired related to the Property, and shall convey to Owner all right, title and interest of J2 in the Property. The obligations set forth in Sections 5 and 10 shall survive termination of this Agreement.

12.           Assignment. The rights of J2 hereunder may be freely assigned or transferred, in whole or in part, without the consent of the Owner. Any such assignment shall include a guarantee of assumption of responsibility for abiding by all terms and conditions of this Agreement and the additional terms and conditions of any future Agreements regarding the Property entered into between J2 and the Owner.

  

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13.           Binding Effect. This agreement shall be binding upon, and shall inure to the benefit of Owner, J2 and their respective heirs, successors and assigns.

14.           Notices. All notices provided for hereunder shall be deemed given and received when (a) personally delivered during business hours on a business day or (b) the next business day following receipt by electronic communication, with a confirmation sent by registered or certified mail, return receipt requested, addressed to the applicable party at the address indicated below for such party. A party may change its address by notice to the other party:

	
To Owner:

	  	  
	  	
Wyomex LLC

	
Palmer-Florida Corporation

	  	
P.O. Box 185

	
270 E Westminster, 2nd Floor

	  	
Cheyenne WY82003-0185

	
Lake Forest, IL 60045

	  	
Attention : John Simons

	
Attention: Potter Palmer

	  	  	  
	
To J2:

	  	  
	  	
J2 Mining Ventures Ltd.

	  
	  	
3040 North Campbell Avenue

	  
	  	
Suite # 110

	  
	  	
Tucson AZ 85719

	  
	  	
Attention: John R. Hedges

	  

15.           Area of Interest. Subject to the further provisions of this Section, any and all rights, titles, interests, and estates acquired by either party within ten aerial miles of the outside boundaries of the Property (“Area of Interest”), as such boundaries may be expanded herein, during the term of this Agreement shall become part of the Property subject to this Agreement, and all lands within any such rights, titles, interests, and estates shall become part of the Property subject to this Agreement, without any additional consideration, as if such rights, titles, interests, and estates were originally subject hereto, except that no such right, title, interest, or estate shall cause the Area of Interest to be expanded. The party acquiring such interest shall notify the other party of such acquisition within ten (10) days after the acquisition. The party receiving such notice shall then have sixty (60) days after delivery of such notice in which to notify the acquiring party that, in its sole discretion, it elects not to have such right, title, interest or estate become subject to this Agreement. In the event that such acquisitions are made by Owner and accepted by J2, J2 shall reimburse Owner for the direct expenses and time expended by Owner and/or its designates for the acquisition(s).

16.           Claim Maintenance and Lease Payments. J2 shall timely perform, or cause to be performed, annual labor for the benefit of the Property or timely pay all unpatented mining claim maintenance fees, and make all required filings with the county, state and federal governments in order to maintain the Property in effect and in good standing. Proof of such compliance shall be furnished to Owner at least thirty (30) days prior to the applicable deadline. In the event J2 fails to timely provide such proof of compliance, Owner may perform, or cause to be performed, the annual labor or pay the

  

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claim maintenance fee and make the required filings, in which case, J2 shall reimburse Owner for 200% of the payments made and costs incurred in performing such maintenance.

Owner shall pay all required lease, rental and other payments due to third parties under the terms of all leases for leased lands which are a part of the Property.

 

EXECUTED by the parties on the date shown in the respective acknowledgements, but effective for all purposes as of the date set forth above.

 

 

	  	
WYOMEX LLC

 

 

6Unassociated Document

Exhibit 10.2

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement is entered into as of June 30, 2011 (the "Effective Date"), by and between TITAN IRON ORE CORP incorporated in the State of Nevada (the "Company"), and Andrew A. Brodkey an individual citizen of the USA, and resident in the State of Arizona, (the "Executive").

 

WHEREAS, the Company desires to employ the Executive as of the Effective Date and the Executive desires to accept employment with the Company on the terms and conditions set forth below;

 

NOW, THEREFORE, in consideration of the foregoing recital and the respective covenants and agreements of the parties contained in this document, the Company and the Executive agree as follows:

 

1.      Employment and Duties.  During the Employment Period (as defined in paragraph 2 below), the Executive will serve as President and Chief Executive Officer of the Company.  The duties and responsibilities of the Executive shall include the duties and responsibilities for the Company's corporate and administration offices and positions as set forth in the Company's bylaws from time to time in effect and such other duties and responsibilities as the Board of Directors of the Company may from time to time reasonably assign to the Executive.  The Executive shall perform faithfully the executive duties assigned to him to the best of his ability.

 

2.      Employment Period.

 

(a)      Basic Rule.  The employment period shall begin upon the Effective Date and shall continue thereafter for two years with automatic renewals for  similar two year periods, at the end of each two year period, subject to the terms of paragraphs  4 being renegotiated within 60 day of the end of any two year period or unless terminated by written notice, as provided below, by  either party prior to the end of any  two year period (the "Employment Period") or unless sooner terminated pursuant to the provisions of this Agreement.

 

(b)      Early Termination.  The Company may terminate the Executive's employment prior to the end of the Employment Period by giving the Executive 60 days' advance notice in writing.  If the Company terminates the Executive's employment prior to the end of the Employment Period for any reason other than Cause or Disability, both as defined below, or if the Executive terminates his employment for Good Reason, as defined below, the provisions of paragraph 10(ii), shall apply.  The Executive may terminate his employment prior to the end of the Employment Period by giving the Company 60 days' advance written notice.  If the Executive terminates his employment prior to the end of the Employment Period other than for Good Reason, the provisions of paragraph 10(i) shall apply.  Upon termination of the Executive's employment with the Company, the Executive's rights under any applicable incentive Stock Option Plan or other benefit plans, if any shall be determined under the provisions of those plans.  Any waiver of notice shall be valid only if it is made in writing and expressly refers to the applicable notice requirement of this subpara­graph 2(b).

 

  

  

  

 

(c)      Death.  The Executive's employment shall terminate in the event of his death.  The Company shall have no obligation to pay or provide any compensation or benefits under this Agreement on account of the Executive's death, or for periods following the Executive's death, except that the Company's obligations under paragraphs 6 and 10(ii) to pay severance pay shall apply.  The Executive's rights under any applicable incentive Stock Option Plan or other benefit plans, if any, of the Company in the event of the Executive's death shall be determined under the provisions of those plans.

 

(d)      Cause.  The Company may terminate the Executive's employment for Cause by giving the Executive 30 days' advance notice in writing.  For all purposes under this Agreement, "Cause" shall mean (i) following delivery to Executive of a written demand for performance from Company, which describes the basis for Company's belief that Executive has not substantially performed his duties, Executive's continued willful violation of Executive's obligations to the Company, which are demonstrably willful and deliberate on Executive's part for a period of thirty (30) days after written notice thereof, (ii) Executive being convicted of a felony involving moral turpitude, (iii) Executive willfully breaching any material term of this Agreement or any other agreement with the Company, which continues uncured for a period of thirty (30) days after written notice, or (iv) without the consent of the Company, or as otherwise provided for herein,  Executive's commencement of employment with another employer while he is an employee of the Company .  No act, or failure to act, by the Executive shall be considered "willful" unless committed without good faith and without a reasonable belief that the act or omission was in the Company's best interest.  No compensation or benefits will be paid or provided to the Executive under this Agreement on account of a termination for Cause, or for periods following the date when such a termination of employment is effective.  The Executive's rights under any applicable incentive Stock Option Plan or other benefit plans, if any, of the Company shall be determined under the provisions of those plans.

 

(e)      Disability.  The Company may terminate the Executive's employment for Disability by giving the Executive 30 days' advance notice in writing.  For all purposes under this Agreement, "Disability" shall mean that the Executive, at the time notice is given, has been unable to substantially perform his duties under this Agreement for a period of not less than four (4) consecutive months as the result of his incapacity due to physical or mental illness.  In the event that the Executive resumes the performance of substantially all of his duties hereunder before the termination of his employment under this subparagraph (e) becomes effective, the notice of termination shall automatically be deemed to have been revoked.  No compensation or benefits will be paid or provided to the Executive under this Agreement on account of termination for Disability, or for periods following the date when such a termination of employment is effective.  The Executive's rights under any applicable incentive or benefit plans of the Company shall be determined under the provisions of those plans.

 

(f)      Good Reason.  Employment with the Company may be regarded as having been constructively terminated by the Company, and the Executive may therefore terminate his employment for Good Reason and thereupon become entitled to the benefits of paragraphs 10(ii) below, if, before the end of the Employment Period, one or more of the following events shall occur:

 

  

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(i)       the relocation of the Executive to a facility or a location more than 50 miles from the Executive's then present employment location, without the Executive's express written consent; or

 

(ii)      the failure of the Company to obtain the unqualified assumption of this Agreement by any successor upon a Change of Control. For purposes  hereof,  the term "Change of Control"  shall mean an event or series of events that would be required to be  described as a change in control of the  Company in a proxy or information  statement  distributed by the Company under existing United States securities laws or those which may hereafter be promulgated or otherwise adopted.

 Notwithstanding  anything  contained  in this  Section to the contrary, a "Change of Control" shall be deemed to occur upon

                   (a) (i) the sale of all or substantially all of the Company's assets or (y) a merger (including a merger in which the Company is the surviving corporation) or consolidation of the Company with one or more corporations or entities, as a result of which in each such case the Company's voting securities outstanding immediately before such sale, merger or consolidation represent less than 50% of the combined voting power of voting securities of the Company or the surviving entity outstanding immediately after such sale, merger or consolidation; or

                   (a) (ii) any "person", as such term is used under United States securities laws or persons acting in concert become the "beneficial owner" or "beneficial owners" (as defined under United States securities laws) directly or indirectly, of the Company's securities representing more than 50% of the combined voting power of the Company's then outstanding securities, pursuant to a plan of such person or persons to acquire such a controlling interest in the Company, whether pursuant to a merger (including a merger in which the Company is the surviving corporation), an acquisition of securities or otherwise, except that this Section shall not apply to any person who provides financing to the Company or any of their affiliates, pursuant to a private placement transaction or otherwise; and

              (b) a  transaction  shall not  constitute  a Change of  Control if its sole purpose is to change the state of the Corporation's incorporation or to create a holding company that will be owned in substantially  the same proportions by the persons  who  held  the  Corporation's   securities   immediately   before  such transaction; or

 

(iii)     A material breach by the Company of the terms of this Agreement.

 

3.      Place of Employment.  The Executive's services shall be performed at the Company's offices to be established in Tucson, Arizona, at which locale the Company will provide the Executive with adequate working facilities.  The parties acknowledge, however, that the Executive may be required to travel in connection with the performance of his duties hereunder.

 

  

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4.      Base Salary and Stock Grants.  For all services to be rendered by the Executive pursuant to this Agreement, the Company agrees to pay the Executive during the Employment Period a base salary (the "Base Salary") at a monthly rate of US$15,000.  The Base Salary shall be paid in periodic installments in accordance with the Company's regular payroll practices.  The Company agrees to review the Base Salary at least annually as of the payroll payment date nearest each anniversary of the Effective Date (beginning in 2012) and to make such increases therein as the Board of Directors may approve.  The Executive shall also be entitled to receive 2.4 million common shares of the Company pursuant to the Company’s Stock Option and Stock Award Plan (the “Stock Plan”), which shares shall vest at the rate of 200,000 shares per month commencing on the date of the grant of shares until fully vested. The Company and its Directors undertake to create, authorize, and submit to shareholders for approval (if necessary) the Stock Plan to the extent that it is not already in existence, and to facilitate the award of common shares to the Executive as described hereunder.

 

5.      Expenses.  The Executive shall be entitled to prompt reimbursement by the Company for all reasonable ordinary and necessary travel, entertainment, and other business expenses incurred by the Executive during the Employment Period (in accordance with the policies and procedures established by the Company for its senior executive officers) in the performance of his duties and responsibilities under this Agreement; provided, that the Executive shall properly account for such expenses in accordance with Company policies and procedures.  The parties agree that for purposes of this paragraph, the Executive's air travel shall be coach class domestically and business class internationally or on any flight of four hours or more.

 

6.      Severance Benefits. The Executive shall be entitled to one (1) month’s severance pay for each one month of service up to a maximum of two (2) year’s wages .

 

7.      Other Benefits.  To the extent that benefit plans are implemented and made available to officers or employees of the Company, the Executive shall participate in employee incentive, bonus, pension, profit sharing, deferred compensation, stock appreciation or stock purchase, health, welfare and disability plans, or other benefit plans or other programs of the Company, if any, to the extent that his position, tenure, salary, age, health and other qualifications make him eligible to participate, subject to the rules and regulations applicable thereto.

 

8.         Vacations and Holidays.  The Executive shall be entitled to five weeks of paid vacation (to be taken at the Executive’s discretion, so long as not inconsistent with the reasonable business needs of the Company) and Company holidays in accordance with the Company's policies in effect from time to time for its senior executive officers.  During said holidays and vacations, the Executive shall be available by phone or email or will have delegated to a person on the Company’s Board of Directors or otherwise directly or indirectly employed by the Company who will accept the Executive’s responsibilities during the Executive’s absence.

 

9.      Other Activities.  The Executive shall devote a sufficient portion of his working time and efforts to the business and affairs of the Company and its subsidiaries and to the diligent and faithful performance of the duties and responsibilities duly assigned to him pursuant to this Agreement, except for vacations, holidays and sickness.  It is agreed that the  Executive will be permitted to devote a reasonable amount of his business time to his duties as President and CEO of Zoro Mining Corp., Pacific Copper Corp. and Pan American Lithium Corp. The Company waives any conflict of interest presented by the Executive’s acting as President and CEO of Zoro Mining Corp., Pacific Copper Corp. and Pan American Lithium Corp.

 

  

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10.    Severance Benefits.  In the event the Executive's employment terminates prior to the end of the Employment Period, following shall apply;

 

(i)           In the event the Executive’s employment is terminated by the Company, for Cause, for Disability or the Executive terminates  the Agreement for other than Good Reason, the Executive shall not be entitled to any Severance and the Company shall have no further liability to the Executive,

                           

(ii)          In the event the Executive’s employment is terminated for any reason other than as set out in (i) above or the Executive terminates his employment for Good Reason then the Executive shall be entitled to Severance benefits as described in paragraph 6 of this Agreement. In addition, the  Company shall  maintain  in full force and effect,  for the  continued benefit  of the  Executive  for the  number of years  (including  partial  years) remaining in the term of employment  hereunder,  all employee  benefit plans and programs in which the Executive was entitled to participate  immediately prior to the date of termination,  provided that the Executive's  continued  participation is possible under the general terms and  provisions of such plans and programs.

 

11.    Proprietary Information.  During the Employment Period and thereafter, the Executive shall not, without the prior written consent of the Board of Directors, or except as otherwise required by law, regulation or rule of any applicable regulatory authority or stock exchange, disclose or use for any purpose (except in the course of his employment under this Agreement and in furtherance of the business of the Company or any of its affiliates or subsidiaries) any confidential information or proprietary data of the Company including drilling results, results of exploration programs, information about investments in the Company and/or potential investments, information about business combinations and transactions, information about the Company’s investors and other information that has not been released to the public or is not publicly known about the Company and its subsidiaries.  Any disclosure of Confidential Information shall only be in compliance with the Company’s Corporate Governance Manual and Company policy in effect at the time of the release.

 

12.    Non-Compete.  The Executive covenants and agrees with the Company that during his employment with the Company and for a period expiring one (1) year after the date of termination of such employment (the "Noncompetition Period"), he will not engage or invest in, own, manage, operate, finance, control, or participate in the ownership, management, operation, financing, or control of, be employed by, associated with, or in any manner connected with, lend the Executive's name or any similar name to, lend the Executive's credit to, or render services or advice to, any company in the iron ore  exploration mining business, however, that the Executive may purchase or otherwise acquire up to (but not more than) ten percent (10%) of any class of securities of any enterprise (but without otherwise participating in the activities of such enterprise) if such securities are listed on any national or regional securities exchange or have been registered under Canadian Securities laws. The Executive’s interests in Zoro Mining Corp., Pacific Copper Corp. and Pan American Lithium Corp. are exempted from this covenant.

 

  

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13.    Right to Advice of Counsel.  The Executive acknowledges that he has consulted with counsel and is fully aware of his rights and obligations under this Agreement.

 

14.    Arbitration.  Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in Tucson, Arizona, in accordance with the rules of the American Arbitration Association then in effect by an arbitrator selected by both parties within 10 days after either party has notified the other in writing that it desires a dispute between them to be settled by arbitration.  In the event the parties cannot agree on such arbitrator within such 10-day period, each party shall select an arbitrator and inform the other party in writing of such arbitrator's name and address within 5 days after the end of such 10-day period and the two arbitrators so selected shall select a third arbitrator within 15 days thereafter; provided, however, that in the event of a failure by either party to select an arbitrator and notify the other party of such selection within the time period provided above, the arbitrator selected by the other party shall be the sole arbitrator of the dispute.  Each party shall pay its own expenses associated with such arbitration, including the expense of any arbitrator selected by such party and the Company will pay the expenses of the jointly selected arbitrator.  The decision of the arbitrator or a majority of the panel of arbitrators shall be binding upon the parties and judgment in accordance with that decision may be entered in any court having jurisdiction thereover.  Punitive damages shall not be awarded.  The arbitrator shall be authoried to order specific performance or other equitable relief in the event that the Executive breaches this agreements under Section 11 or 12 hereof.

 

15.    Absence of Conflict. The Executive represents and warrants that his employment by the Company as described herein shall not conflict with and will not be constrained by any prior employment or consulting agreement or relationship except as provided for herein.

 

16.    Assignment.  This Agreement and all rights under this Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective personal or legal representatives, executors, administrators, heirs, distributees, devisees, legatees, successors and assigns.  This Agreement is personal in nature, and neither of the parties to this Agreement shall, without the written consent of the other, assign or transfer this Agreement or any right or obligation under this Agreement to any other person or entity; except that the Company may assign this Agreement to any of its affiliates or wholly-owned subsidiaries, provided, that such assignment will not relieve the Company of its obligations hereunder.  If the Executive should die while any amounts are still payable to the Executive hereunder, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Executive's devisee, legatee, or other designee or, if there be no such designee, to the Executive's estate.

 

17.    Notices.  For purposes of this Agreement, notices and other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent by United States certified mail, return receipt requested, postage prepaid, addressed as follows:

 

	If to the Executive:   	Andrew A. Brodkey
	 	4960 N. Camino Antonio
	 	Tucson, Arizona  85718

 

  

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	If to the Company:   	Titan Iron Ore Corp
	 	4320 – 196 Street, S.W., #111
	 	Lynwood, Washington 98036

 

or to such other address or the attention of such other person as the recipient party has previously furnished to the other party in writing in accordance with this paragraph.  Such notices or other communications shall be effective upon delivery or, if earlier, three days after they have been mailed as provided above.

 

18.    Integration.  This Agreement and the Exhibit hereto represent the entire agreement and understanding between the parties as to the subject matter hereof and supersede all prior or contemporaneous agreements whether written or oral.  No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by duly authorized representatives of the parties hereto.

 

19.    Waiver.  Failure or delay on the part of either party hereto to enforce any right, power, or privilege hereunder shall not be deemed to constitute a waiver thereof.  Additionally, a waiver by either party or a breach of any promise hereof by the other party shall not operate as or be construed to constitute a waiver of any subsequent waiver by such other party.

 

20.    Severability.  Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

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

 

22.    Applicable Law.  This Agreement shall be governed by and construed in accordance with the internal substantive laws, and not the choice of law rules, of the State of Arizona.

 

Counterparts.  This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Execution and delivery of this Agreement by exchange of facsimile copies bearing facsimile signature of a party shall constitute a valid and binding execution and delivery of this Agreement by such party. Such facsimile copies shall constitute enforceable original documents.  The Company shall be responsible to provide each party to the Agreement, a fully executed copy once all signatures have been received.

 

  

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IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year first above written.

 

 

 

	 	TITAN IRON ORE CORP
	 	 
	 	 
	 	By	/s/ Jodi Henderson	 
	 	 
	 	 
	 	 	    Corporate Secretary (name and title)
	 	 
	 	 
	 	EXECUTIVE:
	 	 
	 	 
	 	 	/s/ Andrew A. B rodkey	 
	 	 
	 	 
	 	       Andrew A. Brodkey

 

 

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