Document:

Exhibit 10.07

 

STAY INCENTIVE AGREEMENT

 

THIS AGREEMENT is entered into between GENERAL MOLY, INC., (“Company”), whose mailing address is 1726 Cole Blvd., Suite 115, Lakewood, Denver, CO 80401, and Robert Scott Roswell (“Employee”), whose address is 14 Viking Drive, Englewood, CO 80113.

 

RECITALS

 

WHEREAS, Company wishes to have Employee continue his/her employment with Company through the critical phase of procuring financing for the construction of the Mt. Hope Project;

 

WHEREAS, Employee wishes to continue employment with Company as Corporate Counsel, VP of Human Resources; and

 

WHEREAS, Company agrees to provide a Stay Incentive Award and Restricted Stock Award to Employee, expressly conditioned upon the terms and conditions described within this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing recitals and for the covenants and conditions hereinafter contained, the parties hereto agree as follows:

 

1.                                      Term of Agreement.  This Agreement shall be in effect from September 7, 2013 (“Beginning Date”), and end on the earlier of (“End Date”):

 

a.              The date upon which approval of a Financing Program for the construction of the Mt. Hope Project is made by the Company’s Board of Directors;

b.              The occurrence date of a “Change of Control”, as later defined herein;

c.               The date of an involuntary termination of Employee from the Company, absent “Cause”, as later defined herein, by the Company; or

d.              January 15, 2015.

 

2.                                      Value of Stay Incentive Award.  If Employee remains continuously employed by the Company from the Beginning Date through the End Date, Company shall pay Employee a Stay Incentive Award in the amount of $125,350, less applicable withholding for taxes and applicable payroll deductions.  Payment of the Stay Incentive Award shall be made in a lump sum on a date determined by the Company within sixty (60) days after the End Date, except as required by Section 6 regarding compliance with Section 409A.

 

3.                                      Restricted Stock Unit Award.  Company agrees to grant an award of 74,613 Restricted Stock Units (the “RSUs”) in accordance with the terms of the Company 2006 Equity Incentive Program and applicable Restricted Stock Units Agreement between Company and Employee, which shall be incorporated by reference.  The RSUs shall vest in full in accordance

 

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with the terms of the Restricted Stock Unit Agreement on the End Date provided that Employee has remained continuously employed by Company from the Beginning Date through the End Date.  All terms and conditions of the award of the RSUs shall be governed by the Restricted Stock Units Agreement.

 

4.                                      At Will Employment Status.  This Agreement is not an employment agreement and does not guarantee Employee employment with Company for any specific period of time.  Employee shall remain at all times an employee at will whose employment may be terminated by either party at any time, with or without cause.

 

5.                                      Confidentiality.  Employee expressly agrees to keep the substance and terms of this Agreement strictly confidential.  With the exception of immediate family, tax advisors, and attorneys, Employee further agrees that he/she will not communicate (orally or in writing) or in any way disclose the terms of this Agreement to any person without the prior express written consent of Company, unless compelled to do so by law.  Employee acknowledges that Company may be required to disclose the terms, and file a copy of this Agreement pursuant to applicable securities laws or other legal requirements.

 

6.                                      Compliance with Section 409A.

 

Delay in Payment. Notwithstanding anything in the Agreement to the contrary, if Employee is deemed by the Company at the End Date for purposes of payment of the Stay Incentive Award to be a “specified employee” under Section 409A of the Internal Revenue Code, as amended (“Code’) then any such payment which would otherwise be payable hereunder shall not be paid until the date which is the first business day following the six-month period after the End Date (or earlier, upon Employee’s death).

 

Interpretation. The parties intend that all payments or benefits payable under the Agreement will not be subject to the additional tax imposed by Section 409A, and the provisions of the Agreement shall be construed and administered consistent with such intent. To the extent such potential payments could become subject to Section 409A, the Company and Employee agree to work together to modify the Agreement to the minimum extent necessary to reasonably comply with the requirements of Section 409A, provided that the Company shall not be required to provide any additional compensation amounts or benefits and Employee shall be responsible for payment of any and all taxes owed in connection with the payment of the Stay Incentive Award.

 

7.                                      Certain Definitions.

 

(a)                     “Cause”  means the good faith determination by the Company that:

 

	
i.
    	
Employee has neglected, failed or refused   to perform Employee’s duties (other than as a result of physical or mental   illness);
    
	
 
    	
 
    
	
ii.
    	
Employee has   failed to timely attain the goals assigned to Employee by the Company, in its   good faith judgment, from time to time;
    

 

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iii.
    	
Employee has   committed an act of personal dishonesty including, without limitation, an act   or omission intended to result in personal enrichment of Employee at the   expense of the Company;
    
	
 
    	
 
    
	
iv.
    	
Employee has   committed a willful or intentional act that could reasonably be expected to   injure the reputation, business, or business relationships of the Company or   Employee’s reputation or business relationships;
    
	
 
    	
 
    
	
v.
    	
Employee has   perpetrated an intentional fraud against or affecting the Company or any   customer, supplier, client, agent, or employee thereof;
    
	
 
    	
 
    
	
vi.
    	
Employee has been   convicted (including conviction on a nolo   contendere, no contest, or similar plea) of a felony or any crime   involving fraud, dishonesty, or moral turpitude.
    

 

With respect to any of the matters set forth in (i) or (ii) above, the Company shall give Employee notice of the deficiency and a reasonable opportunity to correct the deficiency (not to exceed thirty (30) days) prior to termination. In the event that the Company has given notice of a deficiency and makes a determination that the deficiency has not been cured within a reasonable period of time, Employee’s employment may be terminated for Cause.

 

(b)                     “Change of Control” means:

 

	
i.
    	
The acquisition by any individual, entity or group (within the meaning   of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act   of 1934, as amended (the “Exchange Act”)) (a “Person”) of   beneficial ownership (within the meaning of Rule 13d-3 promulgated under   the Exchange Act) of 50% or more of either (A) the then-outstanding   shares of common stock of the Company (the “Outstanding Company Common   Stock”) or (B) the combined voting power of the then-outstanding   voting securities of the Company entitled to vote generally in the election   of directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of   this Agreement, the following acquisitions shall not constitute a Change of   Control: (i) any acquisition directly from the Company, (ii) any   acquisition by the Company, or (iii) any acquisition by any employee   benefit Program (or related trust) sponsored or maintained by the Company or   any Affiliate; or
    
	
 
    	
 
    
	
ii.
    	
Consummation of a   reorganization, merger, statutory share exchange or consolidation or similar   corporate transaction involving the Company or the acquisition of assets or   stock of another entity by the Company (each, a “Business Combination”),   in each case unless, following such Business Combination, (i) all or   substantially all of the individuals and entities that were the beneficial   owners of the Outstanding Company Common Stock and the Outstanding Company   Voting Securities immediately prior to such Business Combination beneficially   own, directly or indirectly, more than 50% of the then-outstanding shares of   common stock and the combined voting power of the then-
    

 

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outstanding   voting securities entitled to vote generally in the election of directors, as   the case may be, of the corporation resulting from such Business Combination   (including, without limitation, a corporation that, as a result of such   transaction, owns the Company or all or substantially all of the Company’s   assets either directly or through one or more subsidiaries) in substantially   the same proportions as their ownership immediately prior to such Business   Combination of the Outstanding Company Common Stock and the Outstanding   Company Voting Securities, as the case may be, and (ii) no Person   (excluding any corporation resulting from such Business Combination or any   employee benefit Program (or related trust) of the Company or such   corporation resulting from such Business Combination) beneficially owns,   directly or indirectly, 50% or more of, respectively, the then-outstanding   shares of common stock of the corporation resulting from such Business   Combination or the combined voting power of the then-outstanding voting   securities of such corporation, except to the extent that such ownership   existed prior to the Business Combination; or
    
	
 
    	
 
    
	
iii.
    	
Individuals who,   as of the date hereof, constitute the Board of Directors of the Company (the   “Incumbent Board”) cease for any reason to constitute at least a   majority of the Board; provided, however, that   any individual becoming a director subsequent to the date hereof whose   election, or nomination for election by the Company’s shareholders, was   approved by a vote of at least a majority of the directors then comprising   the Incumbent Board shall be considered as though such individual were a   member of the Incumbent Board, but excluding, for this purpose, any such   individual whose initial assumption of office occurs as a result of an actual   or threatened election contest with respect to the election or removal of   directors or other actual or threatened solicitation of proxies or consents   by or on behalf of a Person other than the Board; or
    
	
 
    	
 
    
	
iv.
    	
A sale or   disposition of all or substantially all of the operating assets of the   Company to an unrelated party; or
    
	
 
    	
 
    
	
v.
    	
Approval by the   shareholders of the Company of a complete liquidation or dissolution of the   Company.
    

 

8.                                      Additional Provisions.

 

A.                                    This Agreement constitutes the entire agreement between the parties concerning the payment of the Stay Incentive Award and Restricted Stock Award.  This Agreement does not affect any other agreements between Company and Employee.  This Agreement may not be modified or amended except by a written instrument signed by both parties.

 

B.                                    This Agreement and the provisions hereof shall be construed, given effect and governed by the laws of the State of Colorado, and in the event of a breach of this Agreement by any of the parties, in addition to other specific remedies herein, the other party shall have all remedies at law or equity provided by the laws of the State of Colorado.  Venue for any action shall be in the United States District Court for the District of Colorado or the District Court of Jefferson County, Colorado.  Each party

 

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waives any objection he/she/it might have to the laying of venue in such courts, including but not limited to objections based on lack of personal jurisdiction, improper venue, or inconvenience of the forum.

 

C.                                    Each party has reviewed this Agreement and has had the opportunity to consult with counsel regarding the provisions thereof, and accordingly, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Agreement.

 

D.                                    The parties hereby unconditionally waive their right to a jury trial of any claim or cause of action based upon or arising out of, directly or indirectly, this Agreement.

 

E.                                     If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain fully enforceable according to their terms.

 

F.                                      This Agreement may be executed in counterparts, including fax or other electronic counterparts, and all counterparts together shall constitute one executed agreement.

 

DATED this 10th day of September, 2013.

 

	
GENERAL   MOLY, INC.:
    	
 
    	
EMPLOYEE:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
/s/ Bruce D. Hansen
    	
9/10/13
    	
 
    	
/s/ R. Scott   Roswell
    	
9/9/13
    
	
 
    	
date
    	
 
    	
Employee
    	
date
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title
    	
CEO
    	
 
    	
 
    
							

 

5Exhibit 10.08

 

FIRST AMENDMENT

CHANGE OF CONTROL SEVERANCE, CONFIDENTIALITY

AND NON-SOLICITATION AGREEMENT

 

This First Amendment to Change of Control Severance, Confidentiality and Non-Solicitation Agreement is entered into between GENERAL MOLY, INC., a Delaware corporation (the “Company”) and Scott Roswell (“Employee”) to be effective as of September 6, 2013.

 

RECITALS

 

A.            Effective as of January 1, 2012, the Company and Employee entered into a Change of Control Severance, Confidentiality and Non-Solicitation Agreement (the “Agreement”).

 

B.            Effective September 7, 2013 the Company is instituting a Temporary Salary Reduction Program to assist the Company with cash conservation efforts as the Company progresses financing efforts for the construction and operation of the Mt. Hope Project in Eureka County, Nevada.

 

C.            Employee’s annual base salary is being reduced by the Company’s Temporary Salary Reduction Program.

 

D.            Employee and the Company desire to amend the Agreement to make clear that Employee’s annual base salary for purposes of determining “Severance Pay” pursuant to the Agreement shall not be reduced or otherwise affected by the Company’s Temporary Salary Reduction Program, and its application to Employee’s annual base salary.

 

E.             Employee and Company agree to revoke this First Amendment at the termination of the Temporary Salary Reduction Program.

 

AMENDMENT

 

1.              Section 1.  Change in Control Severance Pay is hereby amended to add the following underlined language to the parenthetical following the definition of “Severance Pay”:

 

... Employee’s annual base salary (as in effect immediately prior to the closing of the Change of Control, provided however that Employee’s base salary as reduced by the Company’s implementation on September 7, 2013 of its Temporary Salary Reduction Program shall not be used to determine Employee’s base salary for purposes of “Severance Pay” under this Agreement.  To avoid any doubt, Employee’s base salary shall be equal to Employees base salary on September 6, 2013).

 

IN WITNESS WHEREOF, the parties have executed this First Amendment to Change of Control Severance, Confidentiality and Non-Solicitation Agreement on the dates set forth below, to be effective as of September 6, 2013

 

	
COMPANY: GENERAL   MOLY, INC.
    	
 
    	
EMPLOYEE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Bruce D. Hansen
    	
9/5/13
    	
 
    	
/s/ R. Scott   Roswell                              
    	
9/5/13
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Its:
    	
CEO

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