Document:

Unassociated Document

 

EMPLOYMENT AGREEMENT

THIS AGREEMENT is dated March 2, 2011 but made as of and effective the 1st day of January, 2011

B E T W E E N:

GOLD STANDARD VENTURES (US) INC., a company incorporated under the laws of the State of Nevada and having an office at 557 West Silver Street, Suite 206, Elko, Nevada  89801

(herein called the "Corporation")

 OF THE FIRST PART

A N D:

DAVID C. MATHEWSON, of 1265 Mesa Drive, Fernley, Nevada, U.S.A.  89408

(herein called the "Executive")

 OF THE SECOND PART

WHEREAS the Corporation is a wholly-owned subsidiary of Gold Standard Venture Corp. (the “Parent”), a reporting issuer whose common shares are listed for trading on the TSX Venture Exchange, and carries on the business of acquiring, exploring and developing mineral resource properties in the State of Nevada (the "Business");

AND WHEREAS the Corporation has agreed to employ the Executive in the Business and the Executive has agreed to accept such employment subject to the terms, conditions and covenants provided in this Agreement.

NOW THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the Corporation and the Executive hereby agree as follows:

1.           Employment. The Corporation hereby employs the Executive to render services to the Corporation as, and to undertake the duties and exercise powers of, the Vice-President, Exploration, with effect from January 1, 2011 (the “Effective Date”), subject always to the general control and direction of the President and the Board of Directors of the Corporation (the “Board”).  The Executive hereby agrees to hold such other offices to which he may be appointed in any affiliate of the Corporation, which includes, without limitation, the Parent.  The Executive hereby accepts these positions, on the terms and conditions herein contained.

 

  

 

  

 

2.           Duties and Compliance with Rules. The Executive shall be generally responsible for all matters typical of those for an executive officer in the position of Vice-President, Exploration.  The Executive shall carry out all lawful instructions and directions from time to time given to him by the President and the Board and shall comply with all rules, regulations and instructions of the Corporation now in force, or that may be adopted from time to time, and communicated by the Corporation to its executives generally by the President and the Board.  The Executive shall perform his duties to the utmost of his ability and the Executive shall use his best efforts to promote the interests and goodwill of the Corporation and shall conduct himself in a diligent, competent and businesslike manner and as the Executive may be otherwise directed to perform by the President and the Board. The Executive appreciates that the Executive’s duties may involve travel from the Executive’s place of employment (both within and outside of the United States of America), and the Executive agrees to travel as reasonably required in order to fulfill the Executive’s duties.

3.           Commitment. Through the term of this Agreement the Executive shall devote his full and exclusive working time and attention to the business and affairs of the Corporation and its affiliates and shall not, without the prior written consent of the Corporation, undertake any other business or occupation or become an employee, agent or consultant for any other corporation, firm, partnership or individual; provided that nothing herein shall be construed so as to prevent the Executive from making investments of a strictly passive nature, so long as such investments, when considered together, are not of a type or in an amount such as would conflict with the efficient performance by the Executive of his duties hereunder.

4.           Basic Remuneration. The Corporation shall employ the Executive at an annual salary to be determined periodically by the Board (the "Base Salary"), payable regularly in accordance with the Corporation's practices applicable to other senior executives (less applicable source deductions, if any). The performance of the Executive will be reviewed periodically by the Board, and, at the sole option of the Board, the Base Salary of the Executive may be increased; provided, however, that the Board shall be under no obligation to increase the Base Salary at the time of any such review.  The Base Salary shall also be reviewed by the Board periodically for possible increases according to the criteria applied generally by the Board to such potential increases for management personnel and may be increased in such manner at the discretion of the Board.  The Base Salary does not include any bonus or incentive payments. The Board may introduce such payments in its discretion.  As of the Effective Date, the Base Salary is $150,000 per annum, provided that if, as and when the Parent completes an equity financing for an amount in excess of $10,000,000 (the “Threshold Equity Financing”), the Base Salary shall automatically increase to $180,000 per annum effective retroactive to the first day of the month in which the Threshold Equity Financing is completed.

5.           Stock Options.  The Executive will be entitled to participate in the incentive stock option plan of the Parent, and to receive incentive stock options as determined by the board of directors of the Parent (the “Parent Board”) from time to time and in accordance with the plan established by the Parent and in compliance with any applicable State, Federal or Inter-Provincial laws or regulations.

 

  

- 2 -

  

 

6.           Benefits. The Executive acknowledges and agrees there are no benefit plans or programs currently offered to senior executive officers by the Corporation or any affiliate including the Parent, except as required by law. However, at such time as benefit plans or programs become available to senior executive officers of the Corporation or any affiliate, the Executive shall be eligible to participate in same at the level of the Executive in accordance with the terms and conditions of the particular plans and programs.  In the event any such benefit plan or program consists of the provision of insurance for the Executive and his estate, the Executive agrees to provide necessary medical information and to undergo medical examinations as may be reasonably requested by insurance carriers in this regard.  The Executive agrees that there is no pension plan or program (registered or otherwise) presently offered by the Corporation or any affiliate including the Parent.

7.           Expenses. The Corporation shall pay all reasonable and necessary expenses actually and properly incurred by the Executive from time to time in furtherance of or in connection with the Business of the Corporation in accordance with Corporation’s policies, including, but not limited to, all travel expenses, parking and entertainment expenses.  If any such expenses are paid in the first instance by the Executive, the Corporation shall reimburse him therefor, subject to the receipt by the Corporation of statements, vouchers or other evidence in form reasonably satisfactory to it.

8.           Vacation. The Executive shall be entitled to an annual vacation of up to four (4) weeks in each calendar year.  Such vacations may be taken only at such times as the Executive reasonably determines to be appropriate, having regard to the operations of the Corporation; and provided further that such vacations may be taken only within the year of entitlement thereto and may not be accumulated from year to year.   If the Executive’s employment is terminated pursuant to section 10 hereof, the Executive will not be entitled to receive any payment in lieu of any vacation in excess of vacation accrued up to the date of his termination.

9.           Term and Effective Date. The term of the Executive's employment shall be for an indefinite period, until such time as the employment of the Executive is terminated in accordance with the provisions of this Agreement.  The Corporation and the Executive acknowledge that the Executive commenced providing services to the Corporation as of the Effective Date and therefore, notwithstanding the date of the execution of this Agreement, each party agrees that the rights, benefits and obligations of this Agreement are effective as of the Effective Date.

10.           Termination. The employment of the Executive hereunder may be terminated in the following manner and in the following circumstances:

	
  

	
(a)

	
at any time by the Corporation forthwith, without notice and without pay in lieu of notice, for cause;

	
  

	
(b)

	
automatically upon the death of the Executive;

 

  

- 3 -

  

 

	
  

	
(c)

	
at any time by notice in writing from the Corporation to the Executive if the Executive shall become permanently disabled; for the purposes hereof, the Executive shall be deemed to be permanently disabled immediately following any period of 365 consecutive days during which the Executive is prevented from performing his essential duties as an Executive of the Corporation for more than 182 days in the aggregate by reason of illness or mental or physical disability despite reasonable accommodation efforts of the Corporation;

	
  

	
(d)

	
in any other case, by the payment by the Corporation to the Executive in a lump sum of the equivalent two (2X) times:

 

	 	
 

	
(i)           his then annual Base Salary; plus

	
  

	

 

	

(ii)          his average annual bonus or other cash incentive payment, if any, for the two most recently completed calendar years prior to the date of termination,

	
  

	
(less applicable source deductions), calculated from the date of termination of his employment; or

	 	
(e)

	
by the Executive providing no less than twenty (20) days notice in writing to the Corporation.  In the event the Executive provides such notice to the Corporation, the Executive’s employment shall terminate on the date the period of such notice expires. In such circumstance, the Corporation may request that the Executive cease duties prior to the expiry of the notice period.  The Executive understands and agrees that in the event the Executive elects to terminate his employment and voluntarily resign, no lump sum severance shall be paid as defined in subparagraph 10(d), above.

11.           Cause. For the purposes of subsection 10(a), cause shall include:

	
  

	
(a)

	
the failure or refusal of the Executive to perform his duties and responsibilities at an acceptable level or standard, provided that the Executive has been provided written notice of such failure and has not corrected his behaviour within 20 days of receiving such notice and provided further that the Executive shall only be entitled to correct his behaviour pursuant to the notification under this subsection 11(a) on a one-time basis. For purposes of clarity, any subsequent failure or refusal to perform his duties and responsibilities at an acceptable level or standard will not require written notice of such failure by the Corporation and corresponding opportunity for the Executive to correct the behaviour;

	
  

	
(b)

	
any dishonesty on the part of the Executive affecting the Corporation or the Parent;

	
  

	
(c)

	
the conviction of the Executive for an indictable offence or for any crime involving moral turpitude, fraud or misrepresentation;

 

  

- 4 -

  

 

	
  

	
(d)

	
excessive use of alcohol or illegal drugs by the Executive interfering with the performance of his obligations under this Agreement and the failure to participate fully in any employee assistance program offered by the Corporation;

 

	
  

	
(e)

	
any wilful and intentional act on the part of the Executive having the effect of materially injuring the reputation, business or business relationships of the Corporation or the Parent;

	
  

	
(f)

	
any violation of State or Federal or trade practices acts, including but not limited to those enumerated in NRS Chapter 598A;

	
  

	
(g)

	
any material breach (not covered by any of the above clauses 11(a) through 11(e) above) of any of the provisions of this Agreement; and

	
  

	
(h)

	
any other reason which at law would entitle the Corporation to terminate the Executive’s employment without notice or compensation in lieu of notice.

12.           Employment Legislation, etc. Any payment to the Executive under subsection 10(e) shall be deemed to include all required payments pursuant to the provisions of the NRS Chapter 608, including but not limited to NRS 608.020 to NRS 608.050, inclusive.  In the event that greater compensation in lieu of notice is required to be given by the Corporation to the Executive pursuant to NRS Chapter 608 or any equivalent or pre-emptive State or Federal legislation, subsection 10(e) hereof shall be construed as providing for the payment of such greater amount.  Payments to the Executive upon termination in accordance with this Agreement by the Corporation will be deemed to include and to satisfy entitlement to termination pay, vacation pay and severance pay pursuant to applicable employment legislation to the extent of those payments, including all payments due to the Executive pursuant to section 14 hereof, and such payments may be subject to statutory deductions. Receipt by the Executive of all payments due in accordance with this Agreement will be deemed to constitute a full and final release and discharge by the Executive of the Corporation and all of its directors, officers, employees and agents (for each of whom and for this purpose the Corporation contracts as a trustee) from all claims, actions, causes of action, debts, obligations and liabilities whatsoever (collectively “Claims”) including, without limitation, any Claims in respect of the Executive’s hiring by, employment with and termination of employment with the Corporation.

13.           No Requirement to Mitigate. In the event that any payment is made to the Executive pursuant to the provisions of subsection 10(e), the Executive shall not be required in any manner whatsoever to mitigate any damages resulting from the termination of employment.  Furthermore, the payment referred to in subsection 10(e) shall be made regardless of whether the Executive seeks or finds employment of any nature whatsoever.

The Corporation and the Executive acknowledge and agree that the provisions of subsection 10(e) are reasonable and that the total amount payable as outlined herein is an amount which has been agreed to between them to be payable hereunder or, in the alternative, is a reasonable pre-estimate of the damages which will be suffered by the Executive in the event of termination of employment (other than a termination pursuant to subsection 14(d)) and shall not be construed as a penalty.

 

  

- 5 -

  

 

	
14.

	
Change of Control.

	
(a)

	
Terms used in this section 14 but not otherwise defined herein have the meanings set forth below:

	
  

	

  

	
(i)            "Benefit Plans" means any employee loan, insurance, long-term disability, medical, dental and other executive and employee benefit plans, including any pension or group RRSP plans, as may be provided by the Corporation­ or any affiliate including the Parent to the Execu­tive, if any, from time to time;

	
  

	

  

	
(ii)          "Change in Control" means a transaction or series of transactions whereby directly or indirectly:

	
  

	
(A)

	
any person or combination of persons obtains a sufficient number of securities of the Parent to affect materially the control of the Parent; for the purposes of this Agreement, a person or combination of persons holding shares or other securities in excess of the number which, directly or following conversion thereof, would entitle the holders thereof to cast 20% or more of the votes attaching to all shares of the Parent which may be cast to elect directors of the Parent, shall be deemed to be in a position to affect materially the control of the Parent; or

	
  

	
(B)

	
the Parent shall: (i) consolidate or merge with or into, (ii) amalgamate with, or (iii) enter into a statutory arrangement with, any other person (other than an affiliate of the Parent) and, in connection therewith, all or part of the outstanding voting shares shall be changed in any way, reclassified or converted into, exchanged or otherwise acquired for shares or other securities of the Parent or any other person or for cash or any other property; or

	
  

	
(C)

	
any other person (other than an affiliate of the Parent) shall: (i) consolidate or merge with or into, (ii) amalgamate with, or (iii) enter into a statutory arrangement with, the Parent, and, in connection therewith, all or part of the outstanding voting shares shall be changed in any way, reclassified or converted into, exchanged or otherwise acquired for shares or other securities of the Parent or any other person or for cash or any other property; or

 

  

- 6 -

  

 

	
  

	
(D)

	
the Parent shall sell or otherwise transfer, including by way of the grant of a leasehold in­terest (or one or more of its affiliates shall sell or otherwise transfer, including by way of the grant of a leasehold interest), property or assets: (i) aggregating more than 50% of the consolidated assets (measured by either book value or fair market value) of the Parent and its affiliates as at the end of the most recently completed financial year of the Parent, or (ii) which, during the most recently completed financial year of the Parent, generated, or during the then current financial year of the Parent are expected to generate, more than 50% of the consolidated operating income or cash flow of the Parent and its affiliates, to any other person or persons (other than the Parent or one or more of its affiliates); or

	
  

	
(E)

	
there occurs a change in the composition of the Parent Board, which occurs at a single meeting of the shareholders of the Parent, or a succession of meetings of the shareholders of the Parent occurring within 6 months of each other, whereby such individuals who were members of the Parent Board immediately prior to such meeting or succession of meetings cease to constitute a majority of the Parent Board without the Parent Board, as constituted immediately prior to such meeting or meetings, approving of such change.

	
  

	

  

	
(iii)          "Share Option" means any stock option granted under a stock option or share purchase plan of the Parent; and

	
  

	

  

	
(iv)          "Triggering Event" means any one of the following events which occurs without the express or implied agreement of the Executive:

	
  

	
(A)

	
a change (other than those that are clearly consistent with a promotion) in the Executive’s position or duties (including any position or duties as a director of the Corporation), responsibilities (including a change in the person or body to whom the Executive reports at the date of a Change in Control, except if such person or body is of equivalent rank or stature or such change is as a result of the resignation or removal of such person or the persons comprising such body, as the case may be, and who reports to the Executive), title or office in effect immediately prior to a Change in Control; or

	
  

	
(B)

	
a reduction by the Corporation or any of its affiliates of the Executive’s salary, benefits or any other form of remuneration or any change in the basis upon which the Executive’s salary, benefits or any other form of remuneration payable by the Corporation or its affiliates is determined or any failure by the Corporation to increase the Executive’s salary, benefits or other forms of remuneration payable by the Corporation or its affiliates in a manner consistent (both as to frequency and percentage increase) with practices in effect immediately prior to a Change in Control or with practices implemented subsequent to a Control in Control with respect to the senior executives of the Corporation and its affiliates, whichever is more favourable to the Executive; or

 

  

- 7 -

  

 

	
  

	
(C)

	
any failure by the Corporation or its affiliates to continue in effect any benefit, bonus, profit sharing, incentive, remuneration or compensation plan, stock ownership or purchase plan, pension plan or retirement plan in which the Executive is participating or entitled to participate immediately prior to a Change in Control, or the Corporation or its affiliates taking any action or failing to take any action that would materially adversely affect the Executive's participation in or materially reduce his rights or benefits under or pursuant to any such plan, or the Corporation or its affiliates failing to increase or improve such rights or benefits on a basis consistent with practices in effect immediately prior to a Change in Control or with practices implemented subsequent to a Change in Control with respect to the senior executives of the Corporation and its affiliates, whichever is more favourable to the Executive; or

	
  

	
(D)

	
a change in the municipality in which the Executive is regularly required to carry out the terms of his employment with the Corporation at the date of a Change in Control  unless the Executive's terms of employment include the obligation to receive geographic transfers from time to time in the normal course of business; or

	
  

	
(E)

	
any failure by the Corporation or its affiliates to provide the Executive with the number of paid vacation days to which he was entitled immediately prior to a Change in Control or the Corporation or its affiliates failing to increase such paid vacation on a basis consistent with practices in effect immediately prior to a Change in Control or with practices implemented subsequent to a Change in Control with respect to the senior executives of the Corporation and its affiliates, whichever is more favourable to the Executive; or

	
  

	
(F)

	
the Corporation or its affiliates taking any action to deprive the Executive of any material employment benefit not hereinbefore mentioned and enjoyed by him immediately prior to a Change in Control, or the Corporation or its affiliates failing to increase or improve such material fringe benefits on a basis consistent with practices in effect immediately prior to a Change in Control or with practices implemented subsequent to a Change in Control with respect to the senior executives of the Corporation and its affiliates, whichever is more favourable to the Executive; or

 

  

- 8 -

  

 

	
  

	
(G)

	
any material breach by the Corporation of any provision of this Agreement; or

	
  

	
(H)

	
the good faith determination by the Executive that, as a result of a Change in Control or any action or event thereafter, the Executive's status or responsibility in the Corporation or its affiliates have been diminished or the Executive is being effectively prevented from carrying out his duties responsibilities as they existed immediately prior to a Change in Control; or

	
  

	
(I)

	
the failure by the Corporation to obtain, in a form satisfactory to the Executive, an effective assumption of its obligations hereunder by any successor to the Corporation, including a successor to a material portion of its business; or

	
  

	
(J)

	
Jonathan T. Awde and any one of Richard S. Silas, Ewan S. Downie or Robert J. McLeod cease to be directors of the Corporation.

	
  

	
(b)

	
Notwithstanding anything to the contrary contained in this Agreement, if a Change in Control occurs and if, in respect of the Executive, a Triggering Event subsequently occurs within twelve months of the Change in Control, the Executive shall be entitled to elect to terminate his employment with the Corporation and to receive a lump sum payment from the Corporation in an amount equal to three (3X) times:

	
  

	

  

	
(i)          his then current annual Base Salary; plus

	
  

	

  

	
(ii)         his average annual bonus or other cash incentive payment, if any, for the two most recently completed calendar years,

	
  

	
(less applicable source deductions), calculated from the date of the Executive’s election to terminate his employment pursuant to subsection 14(c).

	
  

	
This subsection 14(b) shall not apply if such Triggering Event follows a Change in Control which involves a sale of securities or assets of the Parent with which the Executive is involved as a purchaser in any manner, whether directly or indirectly (by way of participation in a corporation or partnership that is a purchaser or by provision of debt, equity or purchase-leaseback financing).

	
  

	
(c)

	
All termination rights of the Executive provided for in subsection 14(b) are conditional upon the Executive electing to exercise such rights by notice given to the Corporation within 180 days of the Triggering Event.

 

  

- 9 -

  

 

	
  

	
(d)

	
Notwithstanding the provisions contained in section 10(e) hereof, the Executive shall be entitled to a payment by the Corporation of the amount calculated as provided for in subsection 14(b) if a Triggering Event does not occur but the Executive is dismissed from his employment with the Corporation without cause within twelve months of the Change in Control.  For greater certainty, the Executive shall not be entitled to any payment by the Corporation pursuant to this subsection 14(d) or otherwise if the Executive is dismissed from his employment with the Corporation for cause. The Corporation shall not dismiss the Executive for any reason unless such dismissal is specifically approved by the Board.

	
  

	
(e)

	
All payments provided herein shall be inclusive of any statutory payments required and shall constitute the Executive’s sole entitlements regarding salary in the event of Change in Control.  Upon compliance with Section 14, the Executive shall have no Claims against the Corporation or any affiliate of the Corporation including the Parent, or any of their respective officers, directors, employees or agents, arising from the Executive’s employment or termination of employment.

	
  

	
(f)

	
In the event that the Executive is entitled to a payment pursuant to this section 14, the Executive shall be entitled to have all Benefit Plans in existence at the time such payment is due, if any, continued for a period of 12 months after the date of the giving of notice by the Executive pursuant to subsection 14(c), or the dismissal of the Executive's employment pursuant to subsection 14(d), as the case may be.

	
  

	
(g)

	
In the event that the Executive is entitled to a payment pursuant to this section 14, any Share Option previously granted to the Executive by the Parent shall become fully vested, in which case the Executive shall be entitled to exercise such Share Option on the terms granted and, notwithstanding any term of the stock option plan to the contrary, shall remain exercisable for the original term granted and shall not terminate due to the termination of the Executive's employment with the Corporation. In addition, any provisions of the Share Option restricting the number of option shares which may be purchased before a particular date shall be waived.  The terms of any Share Option agreement shall be deemed amended to reflect the provisions of this subsection 14(g). The provisions of this subsection 14(g) shall be subject to applicable securities laws and the rules of any stock exchange on which the shares of the Parent may be then listed and the receipt of all necessary approvals from such securities regulators and exchange, which approvals the Corporation shall use its reasonable commercial efforts to obtain in the event of the operation of this subsection 14(g).

	
  

	
(h)

	
Any payment to be made by the Corporation pursuant to the terms of section 14 shall be paid by the Corporation in cash in a lump sum within ten business days of the giving of notice by the Executive pursuant to subsection 14(c) or within ten business days of the termination or dismissal from the Executive's employment as referred to in subsection 14(d), as the case may be.  Any such payment shall be calculated, in the case of subsection 14(b), at the date of giving notice pursuant to subsection 14(c) and, in the case of subsection 14(d), at the date of dismissal or termination, as the case may be.

 

  

- 10 -

  

 

	
  

	
(i)

	
In the event that any payment is made to the Executive pursuant to the provisions of subsection 14(b) or subsection 14(d), as the case may be, the Executive shall not be required in any manner whatsoever to mitigate any damages.  Furthermore, the payment referred to in subsection 14(b) or subsection 14(d), as the case may be, shall be made regardless of whether the Executive seeks or finds employment of any nature whatsoever.

15.           Death of Executive. In the event that the Executive dies prior to the satisfaction of all of the Corporation's obligations under the terms of this Agreement, any remaining amounts payable to the Executive by the Corporation shall be paid to the person or persons previously designated by the Executive to the Corporation for such purposes, subject to entitlements of third persons under the provisions of NRS Chapter 133 or 134, whichever applies. Any such designation of benefi­ciaries shall be made in writing, signed by the Executive and dated and filed with the Secretary of the Corporation. In the event that no designation is made, all such remaining amounts shall be paid by the Corporation to the estate of the Executive.

16.           Assignment to Successor. This Agreement shall be assigned by the Corporation to any successor corporation of the Corporation and shall be binding upon such successor corporation.  For the purposes of this section 16, "successor corporation" shall include any person referred to in Paragraph 14(a)(ii)(B) or (C). The Corporation shall ensure that the successor corporation shall continue the provisions of this Agreement as if it were the origi­nal party in place of the Corporation; provided however that the Corporation shall not thereby be relieved of any obligation to the Executive pursuant to this Agreement.  In the event of a transaction or series of transactions as described in Paragraph 14(a)(ii)(B) or (C), appropriate arrangements shall be made by the Corporation for the successor corporation to honour this Agreement as if the Executive had exercised his maximum rights hereunder as of the effective date of such transaction.

	
17.

	
Confidentiality and Non-Competition.

	
  

	

  

	
(a)           Subject to section 18 below, all confidential records, material and information and copies thereof, and all trade secrets (including, without restricting the generality of the foregoing, inventions, discoveries and methods of processing and production), concerning the business or affairs of the Corporation or any of its affiliates, clients or suppliers (collectively, the “Confidential Information”) obtained by the Executive in the course of his employment shall remain the exclusive and confidential property of the Corporation. For greater certainty, “Confidential Information” will not include: (i) information  that is available to the public or in the public domain, being readily accessible to the public in written publications, at the time of disclosure or use, without breach of this Agreement; (ii) the general skills and experience gained by the Executive during the period services are provided to the Corporation; and (iii) information the disclosure of which is required to be made by any law, regulation, governmental authority or court, provided that before disclosure is made, notice of the requirement is provided by the Executive to the Corporation.

 

  

- 11 -

  

 

	
  

	

  

	
(b)           At all times during and subsequent to the Executive's employment, the Executive shall not disclose the contents of any Confidential Information to any person or entity or use, copy, transfer or destroy any Confidential Information other than as necessary in carrying out the Executive’s duties on behalf of the Corporation without first obtaining the consent of the President and the Board and shall take all reasonable precautions to prevent any inadvertent disclosure, use, copying, transfer or destruction of any Confidential Information.  The Executive shall not, following the termination of his employment hereunder for any reason, use the contents of any Confidential Information for any purpose whatsoever.

	
  

	

  

	
(c)           Within five days after the termination of the Executive’s employment, or of receipt by the Executive of the Corporation’s written request, the Executive will promptly deliver to the Corporation all property of or belonging to or administered by the Corporation or any of its affiliates, including without limitation all Confidential Information that is embodied in any physical or ephemeral form, whether in hard copy or on magnetic media, and that is within the Executive’s possession or under the Executive’s control. After he ceases to be employed by the Corporation, the Executive shall under no circumstances remove any books, records or documents or copies thereof (whether or not confidential) from the Corporation's office, nor shall the Executive make any copies of any such books, records or documents or copies thereof for use outside the Corporation's office, except as specifically authorised by the President and the Board of Directors of the Corporation.

	
  

	

  

	
(d)           The Executive hereby agrees that he will not at any time during the term of his employment with the Corporation and for a period of six months thereafter interfere with or knowingly initiate contact with any employee or consultant of the Corporation who was an employee or consultant of the Corporation within six months of the termination for the purpose of offering or enticing that employee to leave the Corporation’s employ.

	
  

	

  

	
(e)           Should the Executive become separated from the Corporation, either voluntarily or involuntarily, for a period of twelve months from the date of separation (the “Separation Date”), the Executive shall not use or disclose, directly or indirectly, Confidential Information, to anyone other than other employees of the Corporation and its affiliates except for the sole benefit of the Corporation or as may be required by law.   The Executive further agrees that, with respect to such Confidential Information which qualifies as a trade secret, the above-mentioned restrictions or the use or disclosure of such information shall remain in effect for longer than the twelve months after the Separation Date, i.e., for as long as such information qualifies as a trade secret.

 

  

- 12 -

  

 

	
  

	

  

	
(f)           The foregoing covenants are given by the Executive acknowledging that he has specific knowledge of the affairs of the Corporation.  The subject matter of the foregoing covenants is the acquisition, exploration and development of mineral resources properties in the State of Nevada. In the event that any clause or portion of any such covenant should be unenforceable or be declared invalid for any reason whatsoever, such unenforceability or invalidity shall not affect the enforceability or validity of the remaining portions of the covenants and such unenforceable or invalid portions shall be severable from the remainder of this agreement.  Notwithstanding the termination of this Agreement, the Executive’s obligations under this Section 17 are to remain in effect in accordance with the terms set out herein and will exist and continue in full force and effect despite any breach or repudiation, or alleged breach or repudiation, of this Agreement or the Executive’s employment (including, without limitation, the Executive’s wrongful dismissal) by the Corporation.  The Executive hereby acknowledges and agrees that all restrictions contained in this Agreement are reasonable and valid and all defences to the strict enforcement thereof by the Corporation are hereby waived by him.

	
  

	

  

	
(g)           Without intending to limit the remedies available to the Corporation, the Executive understands and acknowledges that a breach or threatened breach by the Executive of any of the terms of Section 17 hereof could result in the Corporation suffering irreparable harm that is not capable of being calculated and that cannot be fully or adequately compensated by the recovery of damages alone. Accordingly, the Executive agrees that, in addition to any other relief to which the Corporation may become entitled, the Corporation may apply for and will be entitled to injunctive relief, whether interim or permanent, specific performance and other equitable remedies, in any court of competent jurisdiction specifically to enforce any such covenants upon the breach or threatened breach of any such provisions, or otherwise specifically to enforce any such covenants and hereby waives all defences to the strict enforcement thereof by the Corporation.

18.           Net Smelter Return Royalty.

	
  

	

  

	
(a)           The Corporation will grant to the Executive a net smelter returns royalty (“NSR”) equal to:

	
  

	

(i)  

	
one (1%) percent over all prospects generated by the Executive which are acquired, by way of staking (each a “Staked Prospect”), for the beneficial ownership of  the Corporation or any of its affiliates; and

	
  

	

(ii)  

	
one half (1/2%) percent over all prospects generated by the Executive which are acquired, by way of lease (each a “Leased Prospect”), for the beneficial ownership of the Corporation or any of its affiliates, provided that:

	
  

	
(A)

	
such Leased Prospect carries a maximum NSR of four (4%) percent to the underlying owner/lessee; and

 

  

- 13 -

  

 

	
  

	
(B)

	
such Leased Prospect is not adjacent to any claims from which the Executive is otherwise is entitled to receive or participate in a NSR or other royalty interest.

	
  

	
(b)

	
The Corporation will have the right to purchase, at any time, the one half (1/2%) percent NSR contemplated in subsection 18(a)(ii) in respect of any Leased Prospect for a purchase price of $500,000 per Leased Prospect.

	
  

	
(c)

	
Any NSR granted by the Corporation to the Executive in respect of a Staked Prospect or Leased Prospect (each a “Prospect”) shall be owned in perpetuity for the benefit of the Executive, his heirs, executors, administrators or assigns, and will carry through any change or transfer of ownership of the Prospect.  The Corporation shall notify the Executive of its intent to drop a Prospect or any claim or lease comprised therein at least 30 days prior to any applicable annual claim filing and/or required lease payment.

19.           Entire Agreement.  This Agreement constitutes the entire agreement between the parties pertaining to the subject matter of this Agreement. This Agreement supersedes and replaces all prior agreements, if any, written or oral, with respect to the Executive’s employment by the Corporation and any rights which the Executive may have by reason of any prior agreement or by reason of the Executive’s prior employment, if any, by the Corporation. All previous agreements, written or oral, express or implied, between the parties hereto or on their behalf relating to the employment of the Executive by the Corporation are hereby terminated and cancelled, and each of the parties hereto hereby releases and forever discharges the other of and from all manner of actions, causes of action, claims, demands whatsoever under or in respect of any such agreements.  There are no warranties, representations or agreements between the parties in connection with the subject matter of this Agreement except as specifically set forth or referred to in this Agreement. No reliance is placed on any representation, opinion, advice or assertion of fact made by the Corporation or any affiliate or their respective directors, officers, employees and agents (for each of whom and for this purpose the Corporation contracts as trustee) to the Executive, except to the extent that the same has been reduced in writing and included as a term of this Agreement. Accordingly, there will be no liability, either in tort or in contract, assessed in relation to any representation, opinion, advice or assertion of fact, except to the extent aforesaid.

20.           Notice. Any notice in writing required or permitted to be given to the Executive hereunder shall be sufficiently given if served on the Executive personally or mailed by registered mail postage prepaid addressed to the Executive at his last address known to the Corporation.  Any such notice mailed as aforesaid shall be deemed to have been received by and given to the Executive three business days following the date of mailing.  Any notice in writing required or permitted to be given to the Corporation hereunder shall be given by registered mail postage prepaid addressed to the President of the Corporation c/o the Parent’s head office at #610 – 815 West Hastings Street, Vancouver, B.C. V6C 1B4, Canada.  Any such notice mailed as aforesaid shall be deemed to have been received by and given to the Corporation three business days following the date of mailing.  Either party may at any time give notice in writing to the other of any change of address of the party giving such notice and from and after the giving of such notice the address therein specified shall be deemed to be the address of such party for the giving of notices hereunder. Any notice or agreement to be provided to or by the Corporation shall, for the purposes of this Agreement, be deemed to have been given or received if addressed to or by the Board.

 

  

- 14 -

  

 

21.           Further Assurances. Each of the parties hereto agrees to do and execute or cause to be made, done or executed all such further and other things, acts, deeds, documents, assignments and assurances as may be necessary or reasonably required to carry out the intent and purpose of this Agreement fully and effectually.  Without limiting the generality of the foregoing, the Corporation shall take all reasonable steps in order to structure the payment or payments provided for in this Agreement in the manner most ad­vantageous to the Executive with respect to the provisions of the Internal Revenue Code (United States) or similar legislation in place in the jurisdiction of the Executive's residence.

22.           Co-Operation by Executive.  The Executive will co-operate in all respects with the Corporation if a question arises as to whether the Executive has a disability pursuant to subsection 10(d) hereof. Without limitation, the Executive will authorize the Executive’s medical doctor or other health care specialist to discuss the condition of the Executive with the Corporation and will as reasonably requested by, and at the expense of, the Corporation submit to examination by a medical doctor or other health care specialist jointly selected by the Corporation and the Executive; provided that if the Corporation and the Executive fail to agree on a medical doctor or other health care specialist within 10 days of the request for examination made by the Corporation, each of the Corporation and the Executive will forthwith select a medical doctor or health care specialist and  the medical doctors or healthcare specialists so selected will, within 10 days of being selected, jointly select a third medical doctor or healthcare specialist. The third medical doctor or health care specialist so selected will examine the Executive.

23.           Arbitration.  If any dispute arises under the terms of this Agreement or if there is disparity of understanding between the parties regarding terms, obligations, duties and conditions imposed by this Agreement, the parties agree to resolve disputes as follows:

	
  

	

  

	
(a)           before any rights or remedies are sought through the arbitration provisions set forth below, the parties agree to attempt resolution of any dispute by utilizing the services of a mutually agreed upon, duly certified mediator in Reno, Nevada.  The parties agree to share equally in costs and fees of said mediator; and

	
  

	

  

	
(b)           in the event that mediation is unsuccessful, the parties agree to submit this matter to binding arbitration, with a mutually agreed upon arbitrator duly certified by the American Arbitration Association, each party to bear the cost of said arbitration equally.

24.           Governing Law and Venue. This Agreement shall be governed by and interpreted under the laws of the State of Nevada.  The parties agree that any action not subject to the mandatory mediation of paragraph 23, above, shall be brought in a court of competent jurisdiction and appropriate venue within the State of Nevada.

 

  

- 15 -

  

 

25.           Currency. All dollar amounts referred to in this Agreement are expressed in United States funds unless otherwise specifically provided herein.

26.           Assignment. Save and except as provided in section 16, the benefits and obligations of this Agreement may not be assigned by either party to any other person; provided, however, that the Corporation may assign this Agreement to an affiliate of the Corporation upon notice to the Executive.  Except as aforesaid, this Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective successors and assigns, including, in the case of the Executive, his heirs, executors and administrators.

27.           Invalidity of Provisions.  Each of the provisions contained in this Agreement is distinct and severable and a declaration of invalidity or unenforceability of any provision by a court of competent jurisdiction will not affect the validity or enforceability of any other provision. If in any jurisdiction, any provision of this Agreement or its application to any party or circumstance is restricted, prohibited or unenforceable, the provision will, as to that jurisdiction, be ineffective only to the extent of that restriction, prohibition or unenforceability without invalidating the remaining provisions of that provision in any other jurisdiction or its application to other parties or circumstances.

28.           Waiver, Amendment.  Except as expressly provided in this Agreement, no amendment or waiver of this Agreement will be binding unless executed in writing by the party to be bound. No waiver of any provision of this Agreement will constitute a waiver of any other provision nor will any waiver of any provision of this Agreement constitute a continuing waiver unless otherwise expressly provided.

29.           Acknowledgment. The Executive acknowledges that:

	
  

	
(a)

	
he has read and understood this Agreement;

	
  

	
(b)

	
he has been given an opportunity to obtain independent legal advice concerning this Agreement and the provisions hereof and the interpretation and effect of this Agreement, and by signing this Agreement represents and warrants that he has each either obtained advice or voluntarily waived the opportunity to receive same;

	
  

	
(c)

	
for purposes of interpretation, since all parties to this Agreement have been allowed the opportunity to review same, neither party shall be deemed to be the drafter for purposes of interpretation; and

	
  

	
(c)

	
he has entered into this Agreement voluntarily.

 

  

- 16 -

  

 

IN WITNESS WHEREOF the parties hereto have executed this agreement as of the ____ day of March, 2011

 

 

	
SIGNED, SEALED AND DELIVERED by DAVID C. MATHEWSON in the presence of:

 

 

Name & Signature

 

 

Address

 

 

 

 

 

Occupation

	  	
)

)

)

)

)

)

)

)

)       _________________________________

)       DAVID C. MATHEWSON

)

)

)

)

 

GOLD STANDARD VENTURES (US) INC.

 

 

Per: _______________________________

Authorized Signing Officer

 

  

- 17 -

  

 

State of _____________

County of ___________

 

 

I HEREBY CERTIFY that before me DAVID C. MATHEWSON personally appeared, to me known to be the person described in and who executed the foregoing instrument, and acknowledged the execution thereof to be his free act and deed for the uses and purposes therein mentioned, and said instrument is the act and deed of said person.

 

WITNESS my hand and official seal in the State and County above mentioned this ____ day of _____________, 2011.

 

 

Notary Public

 

 

My commission expires: _______________

 

(Seal)

 

 

Province of British Columbia

City of Vancouver

 

I HEREBY CERTIFY that before me the undersigned authority personally appeared JONATHAN AWDE, President of Gold Standard Ventures (US) Inc., to me known to be the person described in and who executed the foregoing instrument, and acknowledged the execution thereof to be his free act and deed as such officer for the uses and purposes therein mentioned, and said instrument is the act and deed of said corporation.

 

WITNESS my hand and official seal in the City and Province above mentioned this ____ day of _____________, 2011.

 

 

Notary Public

 

 

My commission expires: _______________

 

(Seal)

 

- 18 -Unassociated Document

 

SUBSCRIPTION AGREEMENT

 

THIS AGREEMENT is made as of the 1st day of March, 2011.

 

BETWEEN:

 

 

GOLD STANDARD VENTURES CORP., a company incorporated under the laws of the Province of British Columbia and having an office at #610 – 815 West Hastings Street, Vancouver, BC, V6C 1B4

 

(the “Issuer”)

 

AND:

 

FCMI PARENT CO., having an office at 181 Bay Street, Suite 250, Toronto, ON, M5J 2T3

 

(the “Purchaser”)

 

 

WHEREAS, subject to the terms and conditions set out herein, the Purchaser will subscribe for and agrees to purchase from the Issuer a total of 11,000,000 common shares without par value in the capital stock of the Issuer (“Common Shares”) at a price of C$0.95 per Common Share.

 

NOW THEREFORE, in consideration of the terms, covenants and conditions set out below, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

 

1.           DEFINITIONS

 

1.1          In this Subscription Agreement, the following words and phrases have the following meanings unless otherwise indicated:

 

	
  

	
(a)

	
“1933 Act” means the United States Securities Act of 1933, as amended;

 

	
  

	
(b)

	
“Applicable Legislation” means, as applicable, the securities laws, regulations, rules, rulings and orders in each of the Reporting Jurisdictions, the applicable policy statements issued by the Commissions in each of the Reporting Jurisdictions and the rules and policies of the Exchange;

 

	
  

	
(c)

	
“Business Day” means a day on which Canadian chartered banks are open for the transaction of regular business in the City of Vancouver, British Columbia;

 

	
  

	
(d)

	
“Closing” means the closing of the sale and purchase of the Common Shares;

 

	
  

	
(e)

	
“Closing Date” means Thursday, March 3rd, 2011 or such other date as the Issuer and the Purchaser may mutually agree upon;

 

  

 

  

 

	
  

	
(f)

	
“Closing Time” means 1:00 p.m. (Vancouver time) on the Closing Date or such other time as the Issuer and the Purchaser may mutually agree upon;

 

	
  

	
(g)

	
“Commissions” means the applicable securities commissions or securities regulatory authorities in the Reporting Jurisdictions;

 

	
  

	
(h)

	
“Common Shares” has the meaning ascribed to such term on the face page of this Subscription Agreement;

 

	
  

	
(i)

	
“Exchange” means the TSX Venture Exchange;

 

	
  

	
(j)

	
“Financial Statements” has the meaning ascribed to such term in subsection 4.1(i) hereof;

 

	
  

	
(k)

	
“Offering” means the offering of the Common shares on a private placement basis;

 

	
  

	
(l)

	
“Person” includes an individual, firm, corporation, company, partnership, trust, joint venture, association or other entity;

 

	
  

	
(m)

	
“Public Record” has the meaning ascribed to such term in subsection 3.1(g) hereof;

 

	
  

	
(n)

	
“Regulatory Authorities” means the Commissions and the Exchange and “Regulatory Authority” means any of them;

 

	
  

	
(o)

	
“Regulation D” means Regulation D promulgated by the SEC under the 1933 Act;

 

	
  

	
(p)

	
“Regulation S” means Regulation S promulgated by the SEC under the 1933 Act;

 

	
  

	
(q)

	
“Reporting Jurisdictions” means the Provinces of British Columbia, Alberta and Ontario;

 

	
  

	
(r)

	
“SEC” means the United States Securities and Exchange Commission;

 

	
  

	
(s)

	
“Subscription Agreement” means this subscription agreement as may be amended, supplemented or restated from time to time;

 

	
  

	
(t)

	
“Subscription Funds” means C$10,450,000, being the total purchase price for the Common Shares being subscribed for by the Purchaser pursuant to this Subscription Agreement; and

 

	
  

	
(u)

	
“United States” and “U.S. Person” have the meanings defined in Regulation S.

 

1.2           In this Subscription Agreement, unless otherwise specified, currencies are indicated in Canadian dollars.

 

1.3           In this Subscription Agreement, other words and phrases that are capitalized have the meaning assigned in this Subscription Agreement.

 

  

- 2 -

  

 

1.4          This Subscription Agreement is to be read with all changes in gender or number as required by the context.

 

2.           SUBSCRIPTION

 

2.1          Subject to the terms and conditions set out herein, the Purchaser hereby subscribes for and agrees to purchase from the Issuer and the Issuer agrees to sell to the Purchaser a total of 11,000,000 Common Shares at a price of C$0.95 per Common Share for an aggregate purchase price of C$10,450,000.

 

2.2          The Purchaser confirms that, as of the date of this Subscription Agreement and excluding the Common Shares purchased as part of this Offering, it holds, directly or indirectly, or exercises direction or control over that number of Common Shares of the Issuer and/or securities convertible into Common Shares of the Issuer set out in Schedule “A” hereto.

 

3.           ACKNOWLEDGEMENTS, REPRESENTATIONS, WARRANTIES AND COVENANTS OF PURCHASER

 

3.1          The Purchaser acknowledges that:

 

	
  

	
(a)

	
no Regulatory Authority has reviewed or passed on the merits of the Offering;

 

	
  

	
(b)

	
there are risks associated with the purchase of the Common Shares;

 

	
  

	
(c)

	
there are restrictions on the Purchaser’s ability to resell the Common Shares and it is the responsibility of the Purchaser to ascertain what these restrictions are and to comply with these restrictions before selling the Common Shares;

 

	
  

	
(d)

	
the Issuer has advised the Purchaser that the Issuer is relying on an exemption from the requirements to provide the Purchaser with a prospectus and to sell the Common Shares through a person or company registered to sell the Common Shares under Applicable Legislation and, as a consequence of acquiring Common Shares pursuant to this exemption, certain protections, rights and remedies provided by Applicable Legislation, including statutory rights of rescission or damages, will not be available to the Purchaser;

 

	
  

	
(e)

	
the Common Shares have not been registered under the 1933 Act or the securities or “blue sky” laws of any state in the United States and may not be offered or sold in the United States or to a U.S. Person unless registered under the 1933 Act and the securities or “blue sky” laws of all applicable states of the United States or an exemption from such registration requirements is available, and the Issuer has no obligation or present intention of filing a registration statement under the 1933 Act in respect of any of the Common Shares;

 

	
  

	
(f)

	
the decision to execute the Subscription Agreement and purchase the Common Shares agreed to be purchased hereunder has not been based upon any oral or written representation as to fact or otherwise (except as expressly set out herein) made by or on behalf of the Issuer and, save as aforesaid, the decision is based entirely on the Purchaser’s review of publicly available information regarding the Issuer filed on the System for Electronic Document Analysis and Retrieval (SEDAR) in Canada at www.sedar.com (collectively, the “Public Record”);

 

  

- 3 -

  

 

	
  

	
(g)

	
it has had access to the Public Record and has made such investigations, if any, concerning the Issuer as it has considered necessary so as to make an informed investment decision in connection with an investment in the Common Shares and it has not received, nor has it requested, nor does it have any need to receive, any offering memorandum or other document describing the business and affairs of the Issuer which has been prepared for delivery to, and review by, the Purchaser in order to assist it in making an investment decision with respect to the Common Shares, and except for this Subscription Agreement, no other documents have been delivered or otherwise furnished to the Purchaser in connection with such offering and sale;

 

	
  

	
(h)

	
the offering and sale of the Common Shares to the Purchaser were not made through an advertisement of the Common Shares in printed media of general and regular paid circulation, radio or television, or any other form of advertisement and the Purchaser has not become aware of any form of “general solicitation or general advertising” or “directed selling efforts” (as those terms are used in Regulation D and Regulation S, respectively) with respect to the offering of the Common Shares;

 

	
  

	
(i)

	
the Purchaser is solely responsible for its own due diligence investigation of the Issuer and its businesses, for its own analysis of the merits, risks and terms of its investment in the Common Shares made pursuant to this Subscription Agreement and for obtaining such legal and tax advice as it considers appropriate in connection with the execution, delivery and performance of this Subscription Agreement and the transactions contemplated under this Subscription Agreement;

 

	
  

	
(j)

	
THERE ARE RISKS ASSOCIATED WITH THE PURCHASE OF THE COMMON SHARES AND THE PURCHASER MAY LOSE ITS ENTIRE INVESTMENT;

 

	
  

	
(k)

	
this Subscription Agreement and the schedules and forms attached hereto require the Purchaser to provide certain personal information to the Issuer. Such information is being collected by the Issuer for the purposes of completing the purchase and sale of the Common Shares, including, without limitation, determining the Purchaser's eligibility to purchase the Common Shares under Applicable Legislation, or preparing and registering certificates representing the Common Shares to be issued to the Purchaser, as the case may be, and completing filings required by the Regulatory Authorities. The Purchaser's personal information may be disclosed by the Issuer to: (a) the Regulatory Authorities for the purposes of, inter alia, the administration and enforcement of Applicable Legislation (b) the Issuer’s registrar and transfer agent, and (c) any other party involved in the purchase and sale of the Common Shares, including legal counsel and may be included in record books in connection with such purchase and sale. By executing this Subscription Agreement, the Purchaser is deemed to be consenting to the foregoing collection, use and disclosure of the Purchaser's personal information. The Purchaser also consents to the filing of copies or originals of any of the Purchaser's documents described herein including, but not limited to, as may be required to be filed with the Regulatory Authorities in connection with the transactions contemplated hereby. If the Purchaser is resident in Ontario, the public official who can answer questions about the Ontario Securities Commission’s indirect collection of personal information hereunder is the Administrative Assistant to the Director of Corporate Finance, Ontario Securities Commission, Suite 1903, Box 55, 20 Queen Street West, Toronto, Ontario, M5H 3S8, Telephone 416-593-8086; and

 

  

- 4 -

  

 

	
  

	
(l)

	
upon Closing, Dahlman Rose & Company LLP (“DRC”) will be paid by the Issuer a financial advisory fee equal to 7% of the total Subscription Funds in cash and non-transferable Common Share purchase warrants equal to 7% of the total number of Common Shares purchased by the Purchaser hereunder, each such warrant entitling DRC to purchase one Common Share of the Issuer for a period of two years from the Closing Date at a price of C$0.95.

 

3.2           The Purchaser represents, warrants, covenants and certifies to the Issuer that:

 

	
  

	
(a)

	
the Purchaser has had the opportunity to obtain independent legal, income tax and investment advice with respect to the Issuer and its subscription for the Common Shares hereunder including, but not limited to, restrictions with respect to trading in the Common Shares imposed by Applicable Legislation and the applicable securities legislation in the jurisdiction in which it resides and confirms that no representation has been made to it by or on behalf of the Issuer with respect thereto, acknowledges that it is aware of the characteristics of the Common Shares, the risks relating to an investment therein and of the fact that it may not be able to resell the Common Shares, except pursuant to exemptions under Applicable Legislation until the expiry of the applicable hold periods and in compliance with other requirements of Applicable Legislation and that the certificates representing the Common Shares will bear legends to this effect;

 

	
  

	
(b)

	
the Purchaser is purchasing the Common Shares as principal for its own account, and not for the benefit of any other person;

 

	
  

	
(c)

	
the Purchaser is purchasing the Common Shares for investment only and not with a view to resale or distribution in violation of the Applicable Legislation.

 

	
  

	
(d)

	
the Purchaser is not a Person created or used solely to purchase or hold securities in order to comply with an exemption from the prospectus requirements of Applicable Legislation and that it pre-existed the date of this Subscription Agreement and has a bona fide purpose other than investment in the Common Shares;

 

	
  

	
(e)

	
no person has made to the Purchaser any written or oral representations:

 

	
  

	
(i)

	
that any person will resell or repurchase the Common Shares;

 

  

- 5 -

  

 

	
  

	
(ii)

	
that any person will refund the purchase price of the Common Shares; or

 

	
  

	
(iii)

	
as to the future price or value of any of the Common Shares;

 

	
  

	
(f)

	
the Purchaser has no knowledge of a “material fact” or “material change” (as those terms are defined in the Applicable Legislation) in the affairs of the Issuer that has not been generally disclosed to the public;

 

	
  

	
(g)

	
the Purchaser is not a U.S. Person and that:

 

	
  

	
(i)

	
the offer was not made to the Purchaser when the Purchaser was in the United States and, at the time the Purchaser’s buy order was made to the Issuer, the Purchaser was outside the United States;

 

	
  

	
(ii)

	
the current structure of this transaction and all transactions and activities contemplated hereunder is not a scheme to avoid the registration requirements of the 1933 Act;

 

	
  

	
(iii)

	
the Purchaser has no intention to distribute either directly or indirectly any of the Common Shares in the United States, except in compliance with the 1933 Act; and

 

	
  

	
(iv)

	
the Purchaser is not and will not be purchasing the Common Shares for the account or benefit of any U.S. Person;

 

	
  

	
(h)

	
the Purchaser is resident in the Province of Ontario, Canada;

 

	
  

	
(i)

	
the Purchaser will resell the Common Shares only in accordance with the provisions of the Applicable Legislation;

 

	
  

	
(j)

	
the person executing this Subscription Agreement on behalf of the Purchaser has the necessary power and authority to do so and the investment contemplated hereby has been duly authorized by all necessary action of the Purchaser and this Subscription Agreement has been duly and validly authorized, executed and delivered by and constitutes a legal, valid, binding and enforceable obligation of the Purchaser;

 

	
  

	
(k)

	
the Purchaser has such knowledge in financial and business affairs as to be capable of evaluating the merits and risks of its investment and is able to bear the economic risk of loss of its entire investment;

 

	
  

	
(l)

	
the Purchaser is not a “control person” of the Issuer as defined in the Applicable Legislation, will not become a “control person” by virtue of this purchase of Common Shares, and does not intend to act in concert with any other Person to form a control group of the Issuer; and

 

  

- 6 -

  

 

	
  

	
(m)

	
if required by the Applicable Legislation or the Regulatory Authorities, the Purchaser will execute, deliver, file and otherwise assist the Issuer in filing such reports, undertakings and other documents with respect to the issue of the Common Shares, including, without limitation, the schedules hereto.

 

3.3           The representations, warranties, covenants and acknowledgments of the Purchaser herein are made by the Purchaser with the intent that they be relied upon by the Issuer in determining the Purchaser’s suitability as a purchaser of the Common Shares, that such representations, warranties, covenants and acknowledgments will be true and correct on the Closing Date. The Purchaser undertakes to immediately notify the Issuer of any change in any statement or other information relating to the Purchaser set forth herein or in any document delivered herewith, which takes place prior to the Closing of the purchase and sale of the Common Shares.

 

4.           REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE ISSUER

 

4.1          The Issuer represents and warrants to and covenants with the Purchaser that:

 

	
  

	
(a)

	
the Issuer is a valid and subsisting corporation duly incorporated under the laws of the Province of British Columbia and in good standing with respect to the filing of annual reports with the British Columbia Registrar of Companies;

 

	
  

	
(b)

	
the Issuer is duly registered and licensed to carry on business in the jurisdictions in which it carries on business or owns property where so required by the laws of that jurisdiction and is not otherwise precluded from carrying on business or owning property in such jurisdictions by any other commitment, agreement or document;

 

	
  

	
(c)

	
the Issuer has full corporate power and authority to carry on its business as now carried on by it and this Subscription Agreement has been, or will be by Closing, duly authorized by all necessary corporate action on the part of the Issuer;

 

	
  

	
(d)

	
the authorized capital of the Issuer consists of an unlimited number of Common Shares without par value, of which 42,920,059 Common Shares were issued and outstanding as fully paid and non-assessable as at February 22, 2011;

 

	
  

	
(e)

	
the Issuer will reserve or set aside sufficient shares in its treasury to issue the Common Shares and all such shares will be duly and validly issued as fully paid and non-assessable;

 

	 	
(f)  

	
the Issuer is a “reporting issuer” or the equivalent in the Reporting Jurisdictions and is not included in the list of defaulting reporting issuers maintained by the Commissions;

 

	
  

	
(g)

	
the common shares of the Issuer are listed for trading on the Exchange and no order ceasing, halting or suspending trading in securities of the Issuer nor prohibiting the sale of such securities has been issued to and is outstanding against the Issuer or its directors, officers or promoters and no investigations or proceedings for such purposes are pending or threatened;

 

  

- 7 -

  

 

	
  

	
(h)

	
as at the respective dates thereof, the information comprised in the Public Record was true and correct and did not contain any misrepresentations (as such term is defined in the Applicable Legislation);

 

	
  

	
(i)

	
the financial statements filed with the Commissions (collectively the “Financial Statements”) have been prepared in accordance with Canadian generally accepted accounting principles, present fairly, in all material respects, the financial position and all material liabilities (accrued, absolute, contingent or otherwise) of the Issuer as of the date thereof, and the business of the Issuer has been carried on in the usual and ordinary course consistent with past practice since the date of the most recent Financial Statements;

 

	
  

	
(j)

	
save and except as disclosed in the Financial Statements, the Issuer does not have any loans or other indebtedness outstanding which has been made to any of its shareholders, officers, directors or employees, past or present, or any person not dealing at “arm’s length” (as such term is used in the Income Tax Act (Canada));

 

	
  

	
(k)

	
the Issuer holds all material licenses, registrations, qualifications, permits and consents necessary for carrying on its businesses as presently carried on and all such licenses, registrations, qualifications, permits and consents are valid and subsisting and in good standing, and the Issuer has entered into all agreements necessary to carry on its business and all such agreements are valid and in good standing in all material respects;

 

	
  

	
(l)

	
to the extent disclosed in the Public Record, the Issuer is the legal and/or beneficial owner of, and has good and marketable title to, all of the material property rights and interests described in the Public Record as being owned by it, either through a direct or indirect ownership, royalty or other interest, and no other property rights are necessary for the conduct of the business of the Issuer as currently conducted and the Issuer is not aware of any claim that might or could materially adversely affect the right thereof to use, transfer or otherwise exploit such property rights;

 

	
  

	
(m)

	
the Issuer (i) is in material compliance with applicable federal, state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”), (ii) has received all necessary permits, licenses or other approvals required of it under applicable Environmental Laws to conduct its business, (iii) is in material compliance with all terms and conditions of any such permit, license or approval, and (iv) confirms that there have been no past, and there are no current claims, complaints, notices or requests for information received by the Issuer with respect to any alleged material violation of any Environmental Laws that, individually or in the aggregate, has or may reasonably be expected to have, a material adverse effect on the business, operations or financial condition of the Issuer;

 

  

- 8 -

  

 

	
  

	
(n)

	
all assessments or other work required to be performed in relation to the material mining claims and the mining rights of the Issuer in order to maintain its interest therein, if any, have been performed to date and it has complied in all material respects with all applicable governmental laws, regulations and policies in this connection except in respect of mining claims and mining rights that it intends to abandon or relinquish and except for any non-compliance which would not either individually or in the aggregate have a material adverse effect on the business, operations or financial condition of the Issuer;

 

	
  

	
(o)

	
all exploration activities conducted by the Issuer on its mineral properties have been conducted in all material respects in accordance with good mining and engineering practices except where the failure to so conduct operations would not have a material adverse effect on the business, operations or financial condition of the Issuer;

 

	
  

	
(p)

	
the Issuer has complied and will comply fully with the requirements of all applicable corporate and securities laws and administrative policies and directions, including, without limitation, the Applicable Legislation with respect to the sale of the Common Shares;

 

	
  

	
(q)

	
there are no judgments against the Issuer which are unsatisfied, nor are there any consent decrees or injunctions to which the Issuer is subject;

 

	
  

	
(r)

	
the Issuer shall not take any action which would be reasonably expected to result in the delisting or suspension of its Common Shares on or from the Exchange or on or from any stock exchange, market or trading or quotation facility on which its common shares are listed or quoted and the Issuer shall comply, in all material respects, with the rules and regulations thereof; and

 

	
  

	
(s)

	
the warranties and representations in this Section are true and correct and will remain so as of Closing.

 

5.           CLOSING

 

5.1          This Subscription Agreement is subject to the acceptance of the Exchange.

 

5.2          The Issuer’s obligation to sell the Common Shares to the Purchaser is also subject to the Purchaser completing, executing and returning to the Issuer the Form 4C, Corporate Placee Registration Form, of the Exchange attached hereto as Schedule “B”.

 

5.3          The Closing will be completed on the Closing Date at the offices of the Issuer at Suite 610 – 815 Hornby Street, Vancouver, BC, V6C 1B4 or such other location as the Issuer may, in its discretion, determine.

 

  

- 9 -

  

 

5.4          On or before the Closing Time, the Purchaser shall deliver to or to the order of the Issuer a certified cheque, bank draft, certified solicitor’s trust cheque or funds by electronic wire transfer for the full amount of the Subscription Funds and upon Closing the Issuer will deliver to the Purchaser the certificates representing the Common Shares registered in the name of the Purchaser or its nominee as set out in Schedule “A” to this Subscription Agreement.

 

6.           RESALE RESTRICTIONS

 

6.1          The Purchaser acknowledges that, unless permitted under the Applicable Legislation, the Common Shares may not be traded before the date that is four (4) months and one day after the Closing Date.

 

6.2          The Purchaser further acknowledges that the certificates representing the Common Shares will bear the following legends and the Purchaser agrees to sell, assign or transfer the Common Shares only in accordance with such legends and the Applicable Legislation:

 

 

"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE <INSERT DATE THAT IS FOUR (4) MONTHS AND ONE (1) DAY AFTER CLOSING DATE>."

 

"WITHOUT PRIOR WRITTEN APPROVAL OF THE TSX VENTURE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF THE TSX VENTURE EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL <INSERT DATE THAT IS FOUR (4) MONTHS AND ONE (1) DAY AFTER CLOSING DATE>."

 

provided that subsequent to the date which is four months and one day after the Closing Date the certificates representing the Common Shares may be exchanged for certificates bearing no legends.

 

7.           ADDITIONAL COVENANTS OF THE ISSUER

 

7.1          Upon and as soon as possible after the issuance of Common Shares, the Issuer hereby irrevocably covenants and agrees with the Purchaser that, for a period of two years after the Closing Date and provided that the Purchaser beneficially owns not less than ten (10%) percent of the issued and outstanding common shares of the Issuer at the time, the Purchaser shall have the right to:

 

	
  

	
(a)

	
appoint one nominee to the Issuer’s board of directors (the “Purchaser’s Nominee”); and

 

	
  

	
(b)

	
to participate, on a pro rata basis, in any future equity financing undertaken by the Issuer (excluding stock options granted pursuant to the Issuer’s stock option plan and the exercise of existing share purchase warrants).

 

  

- 10 -

  

 

For greater certainty, the Purchaser’s pro rata right to participate in any future equity financing of the Issuer pursuant to subsection (b) shall be determined as follows:

 

	
Number of Common Shares 

Held by Purchaser

	  	  	  	  
	_____________________________  	
X

	
Total Number of Securities Offered for Sale in Equity Financing

	
=

	
Purchaser’s Pro Rata Entitlement to Participate

	
Total Issued and Outstanding Common Shares

	  	  	  	  

 

7.2          The covenants and agreements contained in Section 7.1 will survive the Closing for the benefit of the Purchaser.

 

7.3          The Issuer acknowledges that the Purchaser would be irreparably harmed if any provision of Section 7.1 was not fulfilled or met by the Issuer in accordance with its terms, and that any such harm could not be compensated reasonably or adequately in damages. The Issuer further acknowledges that the Purchaser will be entitled to injunctive and other equitable relief to prevent or restrain breaches of any of the provisions of Section 7.1, or to enforce the terms and provisions thereof, by an action instituted in a court of competent jurisdiction, which remedy or remedies are in addition to any other remedy to which the Purchaser may be entitled at law or in equity.

 

8.           ADDITIONAL COVENANTS OF THE PURCHASER

 

8.1          The Purchaser acknowledges that in order for the Issuer to appoint the Purchaser’s Nominee to the Issuer’s board of directors as contemplated for in subsection 7.1(a) above, one of the Issuer’s existing directors will be required to resign (the “Resigning Director”). The Purchaser irrevocably covenants and agrees that the Issuer shall be entitled to re-nominate the Resigning Director (or an alternative nominee in his place) for election as a director at the Issuer’s next annual meeting and will vote all of its Common Shares in favor of the re-election of the Resigning Director (or such other nominee) at such meeting.

 

8.2          For so long as the Purchaser owns not less than ten (10%) percent of the issued and outstanding common shares of the Issuer, the Purchaser shall offer to make its project development expertise, including, but not limited to, technical, permitting and financial expertise, available for consultation to the Issuer to assist the Issuer with the development of its mineral resource projects in Nevada, U.S.A.

 

8.3          The Purchaser irrevocably covenants and agrees with the Issuer that, for a period of two years after the Closing Date, the Purchaser shall not, without the prior written consent of the Issuer, which consent may be unreasonably withheld by the Issuer in its sole discretion:

 

	
  

	
(a)

	
acquire, directly or indirectly, common shares which, together with the Common Shares beneficially owned by the Purchaser or any affiliate of the Purchaser prior to such acquisition, exceed 19.99% of the number of Common Shares of the Issuer then issued and outstanding (calculated after giving effect to the issuance of any Common Shares issuable upon the exercise of any share purchase warrants of the Issuer held by the Purchaser, if any);

 

  

- 11 -

  

 

	
  

	
(b)

	
make, either alone or in concert with any other Person, a take-over bid (as defined under the Applicable Legislation) for all or any part of the Issuer’s issued and outstanding Common Shares; or

 

	
  

	
(c)

	
propose, either alone or in concert with any other Person, any form of business combination, acquisition, restructuring, recapitalization or similar transaction involving the Issuer.

 

8.4          The covenants and agreements contained in Sections 8.1, 8.2 and 8.3 will survive the Closing for the benefit of the Issuer.

 

8.5          The Purchaser acknowledges that the Issuer would be irreparably harmed if any provision of Sections 8.1, 8.2 or 8.3 was not fulfilled or met by the Purchaser in accordance with its terms, and that any such harm could not be compensated reasonably or adequately in damages. The Purchaser further acknowledges that the Issuer will be entitled to injunctive and other equitable relief to prevent or restrain breaches of any of the provisions of Sections 8.1, 8.2 or 8.3, or to enforce the terms and provisions thereof, by an action instituted in a court of competent jurisdiction, which remedy or remedies are in addition to any other remedy to which the Issuer may be entitled at law or in equity.

 

9.           NOTICE

 

9.1          All notices or other communications to be given hereunder shall be delivered by hand or by telecopier to such party as follows:

 

in the case of the Issuer, to:

 

GOLD STANDARD VENTURES CORP.

Suite 610 – 815 West Hastings Street

Vancouver, BC  V6C 1B4

 

Attention:  Jonathan T. Awde

Fax:  (604) 687 - 3567

 

in the case of the Purchaser, to:

 

FCMI PARENT CO.

181 Bay Street, Suite 250

Toronto, ON  M5J 2T3

 

Attention:  Henry Fenig

Fax:  416-364-0572

 

9.2          Any notice so given shall be conclusively deemed to have been given on the date of delivery or, if sent by telecopier, on the date of transmission if sent before 4:00 p.m. (Pacific time) and such day is a Business Day or, if not, on the first Business Day following the date of transmission.

 

  

- 12 -

  

 

9.3          Any party may change its address or telecopier number for notice hereunder by notice given in the foregoing manner.

 

10.          GENERAL PROVISIONS

 

10.1         The Issuer may rely on delivery by fax machine or scanned email attachment of an executed copy of this Subscription Agreement, and acceptance by the Issuer of such faxed or scanned copy will be equally effective to create a valid and binding agreement between the Purchaser and the Issuer in accordance with the terms of this Subscription Agreement.

 

10.2         In the event that one or more of the provision of this Subscription Agreement is invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

10.3         Each party hereto shall from time to time at the request of the other party hereto do such further acts and execute and deliver such further instruments, deeds and documents as shall be reasonably required in order to fully perform and carry out the provisions of this Subscription Agreement and to comply with applicable securities legislation.  The parties hereto agree to act honestly and in good faith in the performance of their respective obligations hereunder.

 

10.4         This Subscription Agreement is not assignable or transferable by the parties hereto without the express written consent of the other party to this Subscription Agreement.

 

10.5         Time is of the essence of this Subscription Agreement.

 

10.6         This Subscription Agreement contains the entire agreement between the parties with respect to the subject matter hereof and there are no other terms, conditions, representations or warranties whether expressed, implied, oral or written, by statute, by common law, by the Issuer, or by anyone else.

 

10.7         The parties to this Subscription Agreement may amend this Subscription Agreement only in writing.

 

10.8         No waiver by any party hereto of any provision hereof shall be effective unless in writing, and a waiver shall affect only the matter, and the occurrence thereof, specifically identified in the writing granting such waiver and shall not extend to any other matter or occurrence.

 

10.9         This Subscription Agreement shall enure to the benefit of and shall bind the parties hereto and their respective successors and permitted assigns.

 

10.10       Nothing herein contained shall be read or construed as creating between the parties hereto a relationship of agents, partners or joint venturers.

 

  

- 13 -

  

 

10.11       This Subscription Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia (without reference to its rules governing the choice or conflict of laws) and the federal laws of Canada applicable therein, and, subject to Sections 7.3 and 8.5, the parties hereto irrevocably attorn and submit to the non-exclusive jurisdiction of the courts of British Columbia with respect to any dispute related to this Subscription Agreement.

 

10.12       Nothing in the Subscription Agreement will prevent the Issuer from carrying out any form of public or private financing, whether by the issuance of Common Shares or otherwise.

 

10.13       The Purchaser represents and warrants that the Subscription Funds representing the purchase price for its Common Shares, which will be advanced by the Purchaser to the Issuer hereunder, will not represent proceeds of crime for the purposes of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the “PCMLA”) and the Purchaser acknowledges that the Issuer may in the future be required by law to disclose the Purchaser’s name and other information relating to this Subscription Agreement and the Purchaser’s subscription hereunder, on a confidential basis, pursuant to the PCMLA.  To the best of the Purchaser’s knowledge; (a) none of the subscription funds to be provided by the Purchaser (i) have been or will be derived from or related to any activity that is deemed criminal under the law of Canada, the United States of America, the United Kingdom or any other jurisdiction, or (ii) are being tendered on behalf of a person or entity who has not been identified to the Purchaser; and (b) the Purchaser shall promptly notify the Issuer if the Purchaser discovers that any of such representations ceases to be true, and to provide the Issuer with appropriate information in connection therewith.

 

10.14       The Purchaser acknowledges and agrees that all costs incurred by the Purchaser (including any fees and disbursements of any special counsel retained by the Purchaser) relating to this Subscription Agreement and purchase of the Common Shares contemplated hereunder shall be borne by the Purchaser.

 

10.15       This Subscription Agreement may be executed in counterparts, each of which when so executed shall be deemed to be an original, and all of which when taken together shall institute one and the same Subscription Agreement.

 

 

[EXECUTION PAGE TO FOLLOW]

 

 

  

- 14 -

  

 

IN WITNESS WHEREOF, the Issuer and the Purchaser have caused this Subscription Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

 

 

GOLD STANDARD VENTURES CORP.

 

 

Per: _______________________________

Authorized Signing Officer

 

 

FCMI PARENT CO.

 

 

Per: _______________________________

Henry Fenig

Secretary

 

- 15 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00192-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00192-of-00352.parquet"}]]