Document:

ex10-19.htm

 

 

Exhibit 10.19

 

EMPLOYMENT AGREEMENT

 

AGREEMENT made as of the 9th day of March, 2006 by and between, Nano Clay and Technologies, Inc, a wholly owned subsidiary of Atlas Mining Company, an Idaho corporation with its principal offices at 630 W. Mullan Ave., Osburn, Idaho 83849, (the “Company”), and Ronald Price, whose address is 114 Monopanson Dr. Stevensville,
MD 21666 (the “Executive”).

 

WITNESSETH:

 

WHEREAS, the Company desires to obtain the benefit of the services of Executive, and Executive has the knowledge, skills and desire to create micro tubular and Nano-related materials from halloysite clay and sell this product, and desires to render such services, on the terms and conditions hereinafter set forth:

 

NOW, THEREFORE, the parties hereto, in consideration of the premises and mutual covenants herein contained, hereby agree as follows:

 

	
1.  
	
Upon the execution of this Agreement, all prior employment agreements, whether written or oral, between Executive and the Company are terminated and have no further force or effect.

 

	
2.  
	
Subject to the terms and conditions hereinafter set forth, the Company hereby employs the Executive, and the Executive hereby agrees to and enters into the employ of the Company, or of any parent, subsidiary, or affiliate of the Company as the Company shall from time to time select, for an employment term commencing as of the 1st day of March, 2006, and
continuing for a period of three (3) years from such date (the “Term of Employment”).  At the end of the initial Term of Employment, this Agreement may be renewed for an additional one-year periods, unless either party provides at least 90 days written notice of its decision not to renew this agreement.

 

	
3.  
	
During the Term of Employment, the Executive shall devote such time, effort and attention to the business and affairs of the Company as President and Chief Executive Officer of Nano Clay and Technologies, Inc. as the Executive and the Board of Directors shall mutually agree.  The Executive will also continue as a member of the Company’s
and the parent Company’s Board of Directors, and will continue as prescribed by the Shareholders.  He shall receive no additional compensation for serving as a Director so long as he is employed by the Company on a full-time basis in an executive position.

 

	
4.  
	
For all services to be rendered by the Executive in any capacity during the Term of Employment, including, without limitation, services as an executive, officer, director or member of a committee of the Company or its subsidiaries, divisions, and affiliates, the Executive shall be paid compensation as follows:

 

  

  

  

 

	
A.  
	
(i)for the first year of the Term of Employment, a salary at the annual rate of $150,000;

 

	
(ii)  
	
for the second year of the Term of Employment, a salary at the annual rate of $175,000;

 

	
(iii)  
	
for the third year of the Term of Employment, a salary at the annual rate of $200,000;

 

	
B.  
	
Such salary will be paid in regular installments in accordance with the Company’s usual paying practices, but not less frequently than semi-monthly.  Such payments will be subject to such deductions by the Company as the Company is from time to time required to make pursuant to law, government regulations, or order, or by agreement with
or consent of Executive.

 

	
C.  
	
Executive shall be entitled to participate in all group life insurance, medical and hospitalization plans and pension and profit sharing plans as are presently offered by the Company or which may hereafter during the Term of Employment be offered by the Company generally to its operating executives.

 

	
D.  
	
Executive shall be entitled to use of Company credit card, cell phone and other items necessary for Executive to carry out his duties.

 

	
E.  
	
Executive is entitled to a bonus program based on achieved profitability through the Company’s activities.  Bonus payments will be no more than 40% of Executive base salary (as noted in 4.A. above).  Payments may be in the form of cash or common stock as mutually agreed by the Executive and the Company.

 

	
F.  
	
The Executive is entitles to 20% ownership of any patents filed by the Executive on behalf of the Company.

 

	
5.  
	
The Executive shall be entitled to reimbursement by the Company for reasonable expenses actually incurred by him on its behalf in the course of his employment by the Company, upon the presentation by the Executive, from time to time, of an itemized account of such expenditures, together with said vouchers and other receipts as the Company may require.

 

	
6.  
	
The Executive shall be entitled to vacations in accordance with the Company’s prevailing policy for its operating executives.

 

	
7.  
	
The Company will maintain a key man life insurance policy on the Executive of which the beneficiary rights will be divided equally between the Company and the Executive’s estate.

 

  

  

  

 

	
8.  
	
The rights of the Executive or any other person to the payment of compensation or other benefits under this Agreement shall not be assigned, transferred, anticipated, conveyed, pledged, or encumbered except by will or the laws of descent and distribution; nor shall any such right or interest be in any manner subject to levy, attachment, execution, garnishment
or any other seizure under legal, equitable, or other process for payment of debts, judgments, alimony, or separate maintenance, or reached or transferred by operation of law in the event of bankruptcy, insolvency, or otherwise.

 

	
9.  
	
In the event of the Executive’s involuntary termination of employment for any reason, other than for just cause including absence or failure to perform, theft or fraud, the Executive shall be entitled to severance compensation equal to 6/12th the amount of the Executive’s current base salary.  Nothing contained herein, however, shall
be construed so as to include absence or failure to perform due to illness as a basis for termination.

 

	
10.  
	
During the Term of Employment, if Executive shall, for a period of more than three (3) consecutive months or for periods aggregating more than twelve (12) weeks in any fifty-two consecutive weeks, be unable to perform the services provided for herein, as a result of illness or incapacity or a physical, mental, or other disability of any nature, the Company
may, upon not less than thirty (30) days notice, terminate the Executive’s employment hereunder.  The Executive shall be considered unable to perform the services provided for herein if he is unable to attend to the normal duties required of him.  In such event, the Company shall pay to the Executive, or to his legal representatives, base compensation as specified in paragraph 5, hereof, for a period of three (3) months from the date of termination.  Upon completion of the
termination payments provided for in this paragraph, all of the Company’s obligations to pay compensation under this Agreement shall cease.

 

	
11.  
	
The Company makes no representations, guaranty, warranty, or other assurance of any kind to the Executive or any other person regarding the federal, state or local tax consequences of this Agreement or any payments hereunder, and the Company does not agree to indemnify the Executive or any other person for any federal, state or local taxes of any kind
with respect to payments hereunder.

 

	
12.  
	
This Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns, and the Executive and his heirs, executors, administrators and legal representatives.

 

  

  

  

 

	
13.  
	
The Company will not consolidate or merge into or with another corporation or entity, or transfer all or substantially all of its business and/or assets to another entity, directly or indirectly, unless such other entity (hereinafter referred to as the “Successor”) shall assume this Agreement and the obligations of the Company hereunder; and
upon such assumption, the Executive and the Successor shall become obligated to perform the terms and conditions hereof.  However, if during the first 180 days following any such consolidation or merger, the Executive determines that he does not desire to remain employed by the Successor or the Successor determines that the services of the Executive are no longer required, such consolidation or merger shall be deemed an involuntary termination of the Executive’s employment, and the Executive shall
be paid an amount equal to his annual base salary at the time of the consolidation or merger.  This payment will be made to the Executive in a single lump sum at the time of the termination.

 

	
14.  
	
The Executive will not, at any time during the Term of Employment, or for a period of one year after the voluntary termination of the Executive’s employment, directly or indirectly disclose or furnish to any other person, firm, or corporation any information relating to the Company or its parent, subsidiaries, or affiliates with respect to technology
of the Company’s products, methods of obtaining business, advertising products, customers or suppliers, or any confidential or proprietary information acquired by the Executive during the course of his employment by the Company or its parent, subsidiaries, or affiliates.

 

	
15.  
	
This Agreement constitutes the entire agreement between the parties hereto relating to the subject matter set forth herein and supersedes any prior oral and/or written agreements, understandings, negotiations, or discussions of the parties.  There are no warranties, representations or agreements between the parties in connection with the subject
matter hereof, except as set forth or referred to herein.  No supplement, modification, waiver, or termination of this Agreement or any provision hereof shall be binding unless executed in writing by the parties to be bound thereby.  Waiver of any of the provisions of this Agreement shall not constitute a waiver of any other provision (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise specifically provided.

 

	
16.  
	
The failure of either party at any time to require performance by the other of any provision hereof shall not affect in any way the full right to require such performance at any time thereafter, nor shall the waiver by either party of the breach of any provision hereof be taken or be held to be a waiver of the provision itself.

 

  

  

  

 

	
17.  
	
Any notice or other communication required or permitted to be given under or in connection with this Agreement shall be in writing, delivered in person or by public telegram, or by mailing same, certified or registered mail, postage prepaid, in an envelope addressed to the party to whom notice is to be given, at the address given at the beginning of this
Agreement, and shall be effective upon receipt thereof.  Each party shall be entitled to specify a different address by giving notice as aforesaid to the other party.

 

	
18.  
	
The invalidity or unenforceability of any paragraph, term, or provision hereof shall in no way affect the validity or enforceability of the remaining paragraphs, terms, or provisions hereof.  In addition, in any such event, the parties agree that it is their intention and agreement that any such paragraph, term or provision which is held or determined
to be unenforceable as written shall nonetheless be in force and binding to the fullest extent permitted by law as though such paragraph, term or provision had been written in such a manner and to such an extent as to be enforceable under the circumstance.  Without limiting the foregoing, with respect to any restrictive covenant contained herein, if it is determined that any such provision is excessive as to duration or scope, it is intended that it nevertheless shall be enforced for such shorter duration,
or with such narrower scope, as will render it enforceable.

 

	
19.  
	
All of the terms and provisions of this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, transferees, successors, and assigns.

 

	
20.  
	
This Agreement shall be governed and construed under the laws of the State of Idaho.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be entered into as of the date and year hereinabove first set forth.

 

For Nano Clay and Technologies, Inc.:                                                                                                

A subsidiary of Atlas Mining Company

Executive:ex10-15.htm

 

 

Exhibit 10.15

 

CONFIDENTIAL RELEASE AND SETTLEMENT AGREEMENT

 

THIS RELEASE AND SETTLEMENT AGREEMENT (“Agreement”) is made effective this 27th day of April, 2009, by and between William T. Jacobson (“William Jacobson”), Mary Ann Jacobson, David Jacobson, and Karl W. Jacobson (collectively, referred to as “the Jacobsons”) and Atlas Mining Company (“Atlas”).  The
Jacobsons and Atlas shall collectively be referred to as “the Parties.”

 

RECITALS

 

A.           Atlas has made the Jacobsons aware of potential securities and common law claims arising out of William Jacobson’s tenure as an officer and director of Atlas that it intended to assert against the Jacobsons.

 

B.           William Jacobson has made Atlas aware of potential claims for unpaid accrued vacation and other compensation issues that that he intended to assert against Atlas.

 

C.           Two other actions relevant to William Jacobson’s tenure as an officer and director of Atlas, listed below, are in progress against Atlas and William Jacobson.  These actions are: Benson v. Atlas Mining
Company, Case No. CV 07-428-N-EJL-MHW (D. Idaho) (“Class Action Litigation”); and the United States Securities and Exchange Commission’s (“SEC”) formal investigation of Atlas and former Atlas officers, pertaining to potential violations of federal securities law (“SEC Investigation”).

 

D.           The Parties have entered into this Agreement to avoid the expense, inconvenience, and uncertainty of litigation.  The purpose of this Agreement is to achieve settlement and compromise of Atlas’s potential claims against the Jacobsons arising out of William
Jacobson’s tenure as an officer and director of Atlas, and the Jacobsons’ potential claims against Atlas arising out of the same

 

TERMS

 

1. William Jacobson agrees to transfer ownership to Atlas of 3,044,083 Atlas shares, which constitute any and all Atlas shares that he owns.

 

2. William Jacobson represents, warrants, and covenants the following:

 

	
a)  
	
that he only owns 3,044,083 of Atlas stock and is transferring any and all Atlas shares that he owns pursuant this Agreement;

 

	
b)  
	
that Appendix A constitutes any and all assets William Jacobson owns or in which he has any ownership interest;

 

  

  

  

 

	
c)  
	
that he has obtained and provided his counsel, who in turn has provided such information to Atlas counsel, an accurate accounting for those Atlas shares owned by Mary Ann Jacobson, Karl W.  Jacobson, and David Jacobson;

 

	
d)  
	
that there are no arrangements that previously existed or currently exist, pursuant to which William Jacobson gifted or transferred any of his currently or previously owned assets (other than Atlas shares), to a family member, trust, or similar vehicle, within the last six years;

 

	
e)  
	
That by executing and performing pursuant to this Agreement and agreeing to provide the consideration referenced in this Agreement and by receiving the release from Atlas hereunder, William Jacobson will render himself solvent and that the execution or implementation of this Agreement in no way renders himself in the zone of insolvency or insolvent or
with insufficient assets to pay his obligations as they come due.

 

This Agreement is entered into in consideration, in part, of these representations, warranties, and covenants discussed above.  The Jacobsons and Atlas agree that any inaccuracies in the representations, warranties, or covenants will constitute a breach of this Agreement providing Atlas any and all rights and remedies it has or
may have in law or equity against William Jacobson and/or any other of the Jacobsons collectively or individually.  Likewise, William Jacobson agrees to indemnify, defend, save and hold Atlas and their affiliates and each of their respective officers, employees, legal counsel and other representatives and agents harmless from and against any and all liabilities, claims, demands, losses, damages, costs and expenses of any kind or nature whatsoever (including, without limitation, reasonable attorneys
fees and costs), that arise out of or are connected with any inaccuracies in the representations, warranties, and/covenants contained in this Agreement

 

3. William Jacobson and Mary Ann Jacobson agree, collectively and individually, to waive any and all rights and claims that he has, or may have, under any potentially applicable insurance policy issued to Atlas.  Such insurance
policies include, but are not limited to, the Navigators Policy No. NY06DOL103375NV (originally October 17, 2006 to October 17, 2007), Navigators Policy No. NY07DOL103375NV (October 1, 2007 to October 1, 2008), RSUI Indemnity Company Policy No. NHS626701 (October 1, 2007 to October 1, 2008), and National Union Policy No. 00-228-41-70 (October 17, 2008 to October 17, 2009) (collectively “the Policies”).  This release shall apply
to any and all past, present, and future claims, including but not limited to the Class Action Litigation, the SEC Investigation, and/or any other claim that might arise in the future.

 

  

  

  

 

4. William Jacobson and Mary Ann Jacobson agree, collectively and individually, to consent unconditionally (upon the request of Atlas) to any payments by Navigators or any other insurers to Atlas or other insured persons or entities,
and to cooperate reasonably with any efforts to secure payments from insurers.

 

5. William Jacobson agrees to provide copies of invoices for legal fees associated solely with the defense of the Class Action Litigation (“Defense Costs”).  William Jacobson shall remove or redact any billing entries
and amounts related to any other matter in order to facilitate Atlas efforts to obtain insurance coverage for such Defense Costs.  The maximum amount of Defense Costs that Atlas will pay, pursuant to the terms of this Agreement, is $293,000.00, William Jacobson agrees to cooperate reasonably with Atlas’s efforts to present such Defense Costs to Navigators and/or any other insurer for payment, including withdrawing his Motion to Lift Stay in the pending interpleader action and by providing an undertaking
with respect to any events at issue in the Class Action Litigation.  In the event that Navigators and/or other insurers decline to pay such costs directly to William Jacobson in full or in part, subject to a review for reasonableness, and subject to the maximum amount contained in this Agreement, Atlas agrees to pay such Defense Costs.

 

6. In consideration for William Jacobson’s agreements described above, Atlas agrees to pay William Jacobson the amount of one hundred and seventy thousand dollars and zero cents ($170,000.00) upon complete resolution of the Class
Action Litigation including Idaho District Court approval and, to the extent necessary, successful resolution in the highest applicable court of appeals.  However, in the event that Atlas executes a settlement agreement with respect to the Class Action Litigation and the Idaho District Court approves settlement of the Class Action Litigation, Jacobson shall transfer all 3,044,083 shares of his Atlas shares to Atlas within three business days of the Court’s approval of this settlement.  Atlas,
in turn, will within five business days of receiving all of Jacobson’s Atlas shares, sell, dispose, or otherwise market one hundred and seventy thousand dollars and zero cents ($170,000.00) of such shares, and forward the proceeds from that sale by check payable to his counsel, Yarmuth Wilsdon Calfo PLLC, 818 Stewart Street, Seattle, Washington 98101, for deposit into a trust account To the extent that, i) the Idaho District Court approves the settlement; and ii) the District Court’s approval
is subsequently overturned on appeal; and iii) either Atlas or Jacobson exercise their right to withdraw from this Agreement under Paragraph 7, Atlas shall return to Jacobson the 3,044,083 shares less the amount necessary to generate the one hundred and seventy thousand dollar payment ($170,000.00) referenced above.

 

7. This Agreement is entered into on the premise that the Class Action Litigation will be settled and fully resolved.  To the extent that the Class Action Litigation is not settled pursuant to a written, fully executed settlement
agreement by and between the Class Action Litigation participants within 45 days of final documentation of this Agreement, either Atlas or William Jacobson is entitled to withdraw from this Agreement and any associated terms.  To the extent that the United States District Court for the District of Idaho, or any subsequent appellate

 

  

  

  

court, rejects any material provision of the settlement in the Class Action Litigation, Atlas or William Jacobson are entitled to   withdraw from this Agreement and any associated terms.  To the extent that Atlas and William Jacobson withdraw from this Agreement, they must do so in writing, upon which this Agreement
shall be null and void with no legal effect, except for those provisions articulated in Paragraph 6 above regarding the return of the reduced amount of William Jacobson’s shares.

 

8. In consideration for the mutual covenants contained in this Agreement Atlas releases the Jacobsons, both collectively and individually, on behalf of itself, its past, present and future successors in interest, its agents, officers,
servants, employees, attorneys, successors and assignees, and those in active concert or participation with them, specifically release, waive, and forever discharge the other from any and all claims, demands, actions, and causes of actions, of every kind and character, in law or in equity, known or unknown, arising out of or relating to conduct that occurred on or before the date of execution of this Agreement (including without limitation anything arising out of or related to: i) William Jacobson’s
acts while employed by or representing Atlas; ii) the Class Action Litigation; iii) the SEC Investigation; and/or iv) any indemnification related thereto), with the specific exception of actions arising out of obligations contained in this Agreement.

 

9. In consideration for the mutual covenants contained in this Agreement the Jacobsons, both collectively and individually, on behalf of themselves, their past, present and future successors in interest, their agents, officers, servants,
employees, attorneys, successors and assignees, and those in active concert or participation with them, specifically release, waive, and forever discharge Atlas, its past, present and future successors in interest, agents, officers, servants, employees, attorneys, successors and assignees, from any and all claims, demands, actions, and causes of actions, of every kind and character, in law or in equity, known or unknown, arising out of or relating to conduct that occurred on or before the date of execution of
this Agreement ((including anything arising out of or related to: i) William Jacobson’s acts while employed by or representing Atlas; ii) the Class Action Litigation; iii) the SEC Investigation; and/or iv) any indemnification related thereto), with the exception of actions arising out of obligations contained in this Agreement.

 

10. William Jacobson, Mary Ann Jacobson, and Atlas agree and represent that the purpose of this Agreement is to resolve disputes between them regarding William Jacobson’s tenure as an officer and director at Atlas.  William
Jacobson agrees to perform (or procure the performance of) all further acts and things, and execute and deliver to Atlas (or procure the execution and delivery of) such further documents, as may be required by law or as the other party may reasonably require, whether on or after the effectuation of this Agreement, to implement and/or give effect to this Agreement and the transactions contemplated by it, including for the purpose of vesting in the Company the shares to be transferred to it pursuant to the provisions
of this Agreement and executing any agreement with the insurers at the request of Atlas reflecting the releases provided in paragraph 5.  To the extent that Atlas and the Plaintiffs are able to reach resolution of the Class Action Litigation, neither William Jacobson nor Mary Ann Jacobson will oppose the District Court’s approval of settlement of the Class Action Litigation.

 

  

  

  

 

11. The Parties further acknowledge and agree that they shall be entitled to recover actual expenses associated with the enforcement of this Agreement, including, but not limited to, reasonable attorneys’ fees and costs incurred
in connection with such enforcement.

 

12. The Parties agree that this Agreement and its terms and conditions shall be subject to and construed in accordance with the laws of the State of Washington.  The Parties consent to exclusive jurisdiction and venue for any
claim for enforcement of this Agreement in the state or federal courts of King County, Washington.

 

13. This Agreement, and any companion documents referenced together with its appendices, constitutes the entire agreement between the Parties pertaining to the settlement of disputes and obligations between them with respect to the subject
matter of this Agreement.

 

14. The Parties each acknowledge and agree that they have reviewed this Agreement in its entirety, and every part thereof, have had the opportunity (should they wish) to consult with counsel, and that they understand the Agreement.  They
further acknowledge and agree that they have had the opportunity to review this Agreement.  Atlas and William Jacobson have in fact consulted with their respective counsel as to the Agreement, and that the terms and conditions adequately and correctly reflect their respective understandings.

 

15. This Agreement has been generated pursuant to the equal negotiations and advice of counsel.  Accordingly, this Agreement should not be construed more favorably or unfavorably as to any Party.

 

16. The undersigned each covenant and warrant that they have the right and authority to enter into this Agreement and carry out its terms.

 

 

  

  

  

17. This Agreement may be executed in counterparts, and by facsimile or other electronic transmission, all of which taken together shall constitute one agreement.

 

WHEREFORE, the Parties hereby acknowledge their agreement and consent to the terms and conditions set forth above through their respective signatures as contained below.

 

	
ATLAS MINING COMPANY

 

 

By:                                                                   

 

Printed Name:                                                                   

 

Title:                                                                   

 

Dated:                                                                   
	
WILLIAM T. JACOBSON

 

 

By:                                                                   

 

Printed Name:                                                                   

 

Title:                                                                   

 

Dated:                                                                   

 

 

	
MARY ANN JACOBSON

 

 

By:                                                                   

 

Printed Name:                                                                   

 

Dated:                                                                   

 

 
	
DAVID JACOBSON

 

 

By:                                                                   

 

Printed Name:                                                                   

 

Dated:                                                                   

 

	
KARL W. JACOBSON

 

 

By:                                                                   

 

Printed Name:                                                                   

 

Dated:

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