Document:

EX-10.1

 Exhibit 10.1 

IN THE UNITED STATES DISTRICT COURT 

FOR THE EASTERN DISTRICT OF PENNSYLVANIA 
  

			
	 IN RE: DOMESTIC
DRYWALL
 ANTITRUST LITIGATION
	 	 MDL No. 2437
 13-MD-2437

	 THIS DOCUMENT RELATES TO:

ALL DIRECT PURCHASER ACTIONS
	 	

 SETTLEMENT AGREEMENT 

This agreement (“Settlement Agreement”) is made and entered into this 29th day of December, 2017 (the “Execution
Date”), by and between American Gypsum Company LLC (“AG”), Eagle Materials Inc. (“Eagle”), New NGC, Inc. (“NGC”) and PABCO Building Products, LLC (“PABCO”) (collectively, “Settling Defendants”)
and the Direct Purchaser Plaintiffs (“Plaintiffs”), individually and on behalf of a class of direct purchasers of Wallboard, as defined below. 

WHEREAS, Plaintiffs allege that Settling Defendants participated in a conspiracy to raise, fix, maintain, or stabilize prices and to terminate
the use of job quotes for Wallboard in violation of Section 1 of the Sherman Act; and 
 WHEREAS, Settling Defendants deny
Plaintiffs’ allegations, have asserted defenses to Plaintiffs’ claims, and have not conceded or admitted any liability; and 

WHEREAS, arm’s-length settlement negotiations have taken place between Plaintiffs’ Co-Lead Counsel and counsel for Settling Defendants, including a mediation with Greg Lindstrom of Phillips ADR Enterprises P.C., and this Settlement Agreement has been reached as a result of those negotiations; and

  
 1 

 WHEREAS, Plaintiffs have conducted an investigation into the facts and the law regarding the
claims asserted in the Direct Purchaser action pending in the United States District Court for the Eastern District of Pennsylvania, MDL Docket No. 2437, Civil Action No.
13-MD-2437 (the “Action”), including analysis of over 2.6 million pages of documents and over 40 depositions, have briefed, argued, and received rulings
on significant pretrial motions, and have concluded that a settlement with Settling Defendants according to the terms set forth below is fair, reasonable, adequate, and in the best interest of Plaintiffs and the Settlement Class Members; and

 WHEREAS, Settling Defendants believe that they are not liable for the claims asserted and have good defenses to Plaintiffs’ claims,
but nevertheless have decided to enter into this Settlement Agreement in order to avoid further expense, inconvenience, and the distraction of burdensome and protracted litigation and to obtain the releases, orders and judgment contemplated by this
Settlement Agreement, and to put to rest with finality all claims that Plaintiffs have or could have asserted against the Releasees, as defined below. 

NOW, THEREFORE, in consideration of the agreements and releases set forth herein and other good and valuable consideration, and intending to
be legally bound, it is agreed by and between Settling Defendants and the Plaintiffs that the Action be settled, compromised, and dismissed with prejudice as to Settling Defendants, without costs or expenses to Plaintiffs, the Settlement
Class Members, or Settling Defendants except as provided for herein, subject to the approval of the Court, on the following terms and conditions: 
  

	A.	Definitions 

 The following terms, as used in this Settlement Agreement, have the
following meanings: 
 1. “Court” means the U.S. District Court for the Eastern District of Pennsylvania. 

  
 2 

 2. “Defendants” means USG Corporation, United States Gypsum Company, CertainTeed
Gypsum, Inc., NGC, Lafarge North America Inc., Eagle, AG, PABCO, and TIN Inc. 
 3. “Final Approval” means that the approval of
the Settlement Agreement by the Court has become final, either by exhaustion of any time for a Settlement Class Member who has properly and timely objected to the Settlement to appeal such approval, with no appeal being filed, or by completion
of any appeals filed by Settlement Class Members which appeals have been resolved to uphold the Settlement. 
 4. “Wallboard”
means panel products consisting of a gypsum core with a paper surfacing on the face and back. 
 5.
“Co-Lead Counsel” means the following law firms: 
 Berger &
Montague, P.C. 
 1622 Locust Street 

Philadelphia, PA 19103 

Cohen Milstein Sellers & Toll PLLC 

1100 New York Ave., N.W., Suite 500 

Washington, DC 20005 

Spector Roseman & Kodroff, P.C. 

1818 Market Street, Suite 2500 

Philadelphia, PA 19103 

6. “Opt-Out Measurement Period” means the period beginning on January 1, 2012, and
ending on January 31, 2013. 
 7. “Non-Settling Defendants” means Defendants other
than Settling Defendants. 
 8. “Opt-Out Purchasers” means members of the Settlement
Class who have timely exercised their rights to be excluded from the Settlement Class. 
 9.
“Opt-Out Percentage” means the aggregate Purchased Percentage of Opt-Out Purchasers. 

  
 3 

 10. “Plaintiffs” means Sierra Drywall Systems, Inc., Janicki Drywall, Inc., New Deal
Lumber & Millwork Co., and Grubb Lumber Co., Inc. 
 11. “Purchased” means Wallboard that was invoiced during the
relevant period as reflected in the transactional data and documents of Defendants. 
 12. “Purchased Percentage” means for any
member of the Settlement Class, the total dollar amount of Wallboard Purchased in the United States by such member of the Settlement Class from Defendants or their subsidiaries during the Opt-Out
Measurement Period divided by the total dollar amount of Wallboard Purchased in the United States by all members of the Settlement Class from Defendants or their subsidiaries during the Opt-Out
Measurement Period. 
 13. “Releasees” means AG, Eagle, NGC, and PABCO and all of their current and former parents, subsidiaries,
affiliates, predecessors, successors, or assigns, and all current and former officers, directors, attorneys, representatives, agents, and employees of each of the foregoing entities. 

14. “Releasors” means Plaintiffs and the Settlement Class Members and all of their current and former parents, subsidiaries,
affiliates, predecessors, or successors, all current and former officers, directors, attorneys, representatives, agents, and employees of each of the foregoing entities; and assignees of any claim that is subject to the Release described in
Paragraphs 26 through 28. 
 15. “Settlement” means the settlement of the Action contemplated by this Agreement. 

16. “Settlement Amount” means $125,000,000.00 in United States currency. 

17. “Settlement Class Period” means the period from and including January 1, 2012, to and including December 31,
2013. 

  
 4 

 18. “Settlement Class” means the class consisting of all persons or entities that
Purchased Wallboard in the United States during the Settlement Class Period directly from (a) any Defendant or Georgia Pacific LLC (collectively, “Wallboard Manufacturers”); and/or (b) L&W Supply Corporation or any of
its subsidiaries or affiliates (collectively, “L&W”). Excluded from the Settlement Class are Wallboard Manufacturers, along with each of their respective parent companies, subsidiaries, and affiliates (including, without
limitation, Pacific Coast Supply, LLC and L&W), and federal governmental entities and instrumentalities of the federal government and any judicial officer presiding over the Action, and any member of his or her immediate family and judicial
staff. 
 19. “Settlement Class Member” means a member of the Settlement Class that does not timely and validly elect to
be excluded from the Settlement Class. 
 20. “Settling Parties” means Plaintiffs and Settling Defendants. 

 

	B.	Approval of this Settlement Agreement and Dismissal of the Action 

 21. The
Settling Parties agree to make reasonable best efforts to take actions to effectuate this Settlement Agreement and shall cooperate to promptly seek and obtain the Court’s preliminary and final approval of this Settlement Agreement, including,
but not limited to, seeking the Court’s approval of procedures (including the giving of class notice under Federal Rules of Civil Procedure 23(c) and (e), and scheduling a final fairness hearing) to obtain Final Approval of the Settlement and
the final dismissal with prejudice of the Action as to Settling Defendants and the Releasees. 
 22. Within twenty one (21) days of the
Execution Date, Plaintiffs shall submit to the Court a motion requesting that the Court preliminarily approve the Settlement and authorize dissemination of notice to the Settlement Class (the “Motion”). The Motion shall include: (a) a
proposed form of order preliminarily approving the Settlement; (b) proposed forms of, and 

  
 5 

 
methods for, dissemination of notice to the Settlement Class; and (c) a proposed form of final judgment order, all of which shall be furnished to Settling Defendants for review and prior
approval, which is not to be unreasonably withheld. Notwithstanding the foregoing, if Plaintiffs include information in the Motion and accompanying material regarding the proposed distribution of settlement funds in this Action, such information
shall not be subject to Defendants’ review and prior approval. The Settling Parties agree that notice of the Settlement as approved by the Court shall be mailed to persons and entities who have been identified as members of the Settlement
Class by Wallboard Manufacturers and L&W. Notice of the Settlement shall also be published once in the LBM Journal and on a web site that is under the supervision of Co-Lead Counsel. If the Settlement
is preliminarily approved by the Court, (i) within eighteen (18) calendar days, Plaintiffs shall provide mailed notice to the Settlement Class and (ii) Plaintiffs shall provide notice to the Settlement Class in the LBM
Journal on the first available publication date on or after seven (7) days from the provision of individual mailed notice. Subject to the lead time required for publication in the LBM Journal, Plaintiffs shall exercise reasonable efforts to
mail and publish notice to the Settlement Class within sixty (60) days of preliminary approval of the Settlement. 
 23. Within
ten (10) calendar days after this Settlement Agreement and the accompanying motion papers seeking its preliminary approval are filed with the Court, Settling Defendants shall cause notice of the Settlement Agreement to be served upon
appropriate State and Federal officials as provided in the Class Action Fairness Act, 28 U.S.C. § 1715. 
 24. If the Settlement
is preliminarily approved by the Court, Plaintiffs shall promptly seek final approval of the Settlement and entry of a final judgment order as to Settling Defendants: 

  
 6 

	 	(a)	certifying the Settlement Class defined in Paragraph 18 under Federal Rule of Civil Procedure 23(b)(3); 

  

	 	(b)	granting final approval of the Settlement as fair, reasonable, and adequate within the meaning of Rule 23(e) of the Federal Rules of Civil Procedure and directing the consummation of the Settlement according to its
terms; 

  

	 	(c)	directing that, as to Settling Defendants, the Action be dismissed with prejudice and, except as provided for herein, without costs; 

 

	 	(d)	reserving exclusive jurisdiction over the Settlement and this Settlement Agreement, including the administration and consummation of this Settlement, to the United States District Court for the Eastern District of
Pennsylvania, Eastern Division; and 

  

	 	(e)	determining under Federal Rule of Civil Procedure 54(b) that there is no just reason for delay and directing entry of final judgment as to Settling Defendants. 

25. This Settlement Agreement shall become effective only when: (a) the Court has entered (i) a final judgment order approving the
Settlement set forth in this Settlement Agreement under Rule 23(e) of the Federal Rules of Civil Procedure and (ii) a final judgment dismissing the Action against Settling Defendants with prejudice and without costs; and (b) the time for
appeal or to seek permission to appeal from the Court’s approval of the Settlement and the entry of a final judgment has expired or, if appealed, approval of the Settlement and the final judgment have been affirmed in their entirety by the
Court of last resort to which such appeal has been taken and such affirmance is no longer subject to further appeal or review (“Effective Date”). It is agreed that neither the provisions of Federal Rule of Civil Procedure 60 nor the All
Writs Act, 28 U.S.C. § 1651, shall be taken into account in determining the above-stated times. 
  

	C.	Releases, Discharge, and Covenant Not to Sue 

 26. Upon Final Approval and in
consideration of payment of the Settlement Amount into the Escrow Account as specified in Section D of this Settlement Agreement, Releasees shall be fully, finally, and forever released and discharged by Releasors from any and all claims,

  
 7 

 
demands, actions, suits, injuries, causes of action, and damages of any nature, whenever and however incurred (whether actual, punitive, treble, compensatory, or otherwise), including, without
limitation, costs, fees, expenses, penalties, and attorneys’ fees, whether class, individual, or otherwise in nature, that Releasors, or any of them, ever had, now has, or hereafter can, shall, or may have, directly, representatively,
derivatively, or in any other capacity, against Releasees (or any of them), whether known or unknown, suspected or unsuspected, foreseen or unforeseen, actual or contingent, liquidated or unliquidated, asserted or unasserted, whether in law or
equity or otherwise, in whole or in part or arising out of or relating in any way to any conduct, act, or omission of Releasees (or any of them) prior to and including the Execution Date, based upon any of the facts, occurrences, transactions,
agreements, conspiracies, communications, announcements, notices, or other matters alleged in the Action against Settling Defendants that arise under any federal, state, or common law, including, without limitation, the Sherman Act, 15 U.S.C. §
1 et seq., and any federal or state antitrust, unfair competition, unfair practices, price discrimination, unjust enrichment, unitary pricing, or trade practice law, including but not limited to any causes of action asserted or that could
have been or could still be alleged or asserted, in any class action complaints filed in this Action or related actions, which collectively includes, without limitation, any action transferred to this multidistrict litigation proceeding (the
“Released Claims”); provided, however, that nothing in this Settlement Agreement shall release: (a) any claims based upon indirect purchases of Wallboard brought by prospective members of any class of indirect purchasers (the
“Indirect Purchaser Class”); or (b) claims arising in the ordinary course of business for any product defect, breach of contract, product performance or warranty claims relating to Wallboard. Releasors shall not, after the Effective
Date of this Agreement, seek to recover from any Releasee based, in whole or in part, upon any of the Released Claims or conduct at issue in the Released Claims. Released Claims do not include any claims arising out of the enforcement of this
Settlement Agreement. 

  
 8 

 27. In addition to the provisions of Paragraph 26 of this Settlement Agreement, Releasors
hereby expressly waive and release, upon the Effective Date of this Settlement Agreement, any and all provisions, rights, and benefits conferred by Section 1542 of the California Civil Code, which states: 

CERTAIN CLAIMS NOT AFFECTED BY GENERAL RELEASE. A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT
TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR; 
 or by any
law of any state or territory of the United States, or principle of common law, which is similar, comparable or equivalent to Section 1542 of the California Civil Code. Each Releasor may hereafter discover facts other than or different from
those which the Releasor knows or believes to be true with respect to the claims which are the subject of the provisions of Paragraph 26 of this Settlement Agreement, but each Releasor hereby expressly waives and fully, finally, and forever
settles and releases, upon this Settlement Agreement becoming final, any known or unknown, suspected or unsuspected, contingent or non-contingent claim with respect to the subject matter of the provisions of
Paragraph 26 of this Settlement Agreement, whether or not concealed or hidden, without regard to the subsequent discovery or existence of such different or additional facts. 

28. Upon Final Approval, Settling Defendants shall be deemed to have fully released Releasors from any claims relating to the institution or
prosecution of the Action. 

  
 9 

	D.	Payment of the Settlement Amount 

 29. The Settlement Amount includes the full and
complete cost of the settlement notice, claims administration, Settlement Class Members’ compensation, class representatives’ incentive awards (as approved by the Court), attorneys’ fees (as approved by the Court) and
reimbursement of all actual expenses of the Action (as approved by the Court), any other litigation costs of Plaintiffs, and all applicable taxes, if any, assessable on the Settlement Fund or any portion thereof. In no event will Settling
Defendants’ liability with respect to the Settlement exceed $125,000,000. Releasors shall look solely to the Settlement Amount for settlement and satisfaction against the Releasees of all Released Claims and shall have no other recovery against
the Releasees. 
 30. Within ten (10) business days of the entry of an order preliminarily approving the Settlement, Settling
Defendants will pay or cause to be paid by wire transfer $100,000 of the Settlement Amount to an account at a bank to be designated by Interim Co-Lead Counsel (the “Notice Fund”), to be used to pay
the costs of providing notice of the settlement to the Settlement Class and for notice administration. After preliminary approval of the Settlement, Interim Co-Lead Counsel may spend the funds in the
Notice Fund to provide notice of the settlement to the Settlement Class and for notice administration, without an order from the Court. The amount spent or incurred for notice and notice administration is not refundable to Settling Defendants
in the event the Settlement Agreement is disapproved, rescinded, or otherwise fails to become effective. 
 31. Not later than ten
(10) business days after entry of the final judgment order, Settling Defendants will pay or cause to be paid by wire transfer the remainder of the Settlement Amount, less any reduction pursuant to Paragraphs 32 and 33, into an escrow account or
accounts (the “Escrow Account”). This amount, along with any interest earned thereon shall be held in escrow and constitutes the Settlement Fund. The Escrow Account and Settlement Fund shall be administered in accordance with the
provisions of Section E of this Settlement Agreement. 

  
 10 

 32. As set forth in Paragraph 33 and in a separate agreement (“Confidential Side
Letter”) executed between Co-Lead Counsel and Settling Defendants, the Settlement Amount may be reduced upon the occurrence of one or more conditions relating to
Opt-Out Purchasers. Plaintiffs may attempt to obtain final rescission of any decision by an Opt-Out Purchaser to request exclusion. 

33. Settling Defendants’ total cash payment shall be reduced by 0.75% for each 1% of the Opt-Out
Percentage. For example, if the Opt-Out Percentage is 8%, the Settlement Amount would be reduced by 6% (0.75 x 8%). The remaining 0.25% for each 1% of sales represented by the
Opt-Out Purchasers will be deposited into the Opt-Out Fee and Expense Account, to be paid to Plaintiffs’ counsel in consideration of their efforts on behalf of the Opt-Out Purchasers, upon approval by the Court of any such payment request. In the event the Court does not approve Plaintiffs’ counsel’s payment request, the funds in the
Opt-Out Fee and Expense Account shall be added to the Settlement Fund. In no event shall the Court’s determination of the appropriate disposition of any funds to be deposited into the Opt-Out Fee and Expense Account be grounds for rescission of the Settlement Agreement. 
  

	E.	The Settlement Fund 

 34. The Escrow Account shall be established as a
“qualified settlement fund” as defined in Section 1.468B-1(a) of the U.S. Treasury Regulations or other appropriate escrow account as agreed to by the Settling Parties. 

  
 11 

 35. After preliminary approval of the Settlement, Co-Lead
Counsel may utilize up to $100,000 from the Notice Fund to provide notice of the Settlement to potential members of the Settlement Class and for notice administration, without an order from the Court. The amount spent or incurred for notice and
notice administration is not refundable to Settling Defendants in the event the Settlement Agreement is disapproved, rescinded, or otherwise fails to become effective. 

36. From the Notice Fund and the Settlement Fund shall be paid the cost of settlement notice, claims administration, class
representatives’ incentive awards, attorneys’ fees, reimbursement of all actual expenses of the Action, any other litigation costs of Plaintiffs, and all applicable taxes, if any. The Settling Parties shall have the right to audit amounts
paid from the Settlement Fund prior to the final approval of the Settlement. 
 37. The Settlement Fund shall be invested in United States
Government Treasury obligations or United States Treasury money market funds. The Notice Fund may be deposited in a bank account, in which case it will be deposited in a federally insured interest-bearing account. 

38. Settling Defendants shall not have any responsibility, financial obligation, or liability whatsoever with respect to the investment,
distribution, use, or administration of the Settlement Fund, including, but not limited to, the costs and expenses of such investment, distribution, use or administration except as expressly otherwise provided in this Settlement Agreement. 

39. Settling Defendants’ only payment obligation is to pay the Settlement Amount. Settling Defendants shall not be liable for any costs,
expenses, or fees of any of Plaintiffs’ respective attorneys, experts, advisors, agents, or representatives. Payment of all such costs, expenses, and fees, as approved by the Court, shall be paid only out of the Settlement Fund or the Opt-Out Fee and Expense Account. No disbursements shall be made from the Notice Fund or the Settlement Fund prior to the Effective Date of this Settlement Agreement except as described in Paragraphs 35 and 36,
above. 

  
 12 

 40. The distribution of the Settlement Fund shall be administered pursuant to a plan of
allocation (the “Plan of Allocation”) proposed by Co-Lead Counsel and subject to the approval of the Court. If such approval is not obtained, Co-Lead Counsel
shall revise the Plan of Allocation as necessary until approval of the Court is obtained. Settling Defendants shall have no participatory or approval rights with respect to the Plan of Allocation and the Court’s rejection of the Plan of
Allocation shall not affect the validity or enforceability of this Settlement Agreement. 
 41. Settling Defendants will take no position on
any application for fees and reimbursement of expenses made by Co-Lead Counsel or by the Settlement Class Members or any application for class representatives’ incentive awards out of the Settlement
Fund. 
  

	F.	Rescission 

 42. If the Court refuses to approve this Settlement Agreement or any
material part hereof, or if such approval is modified in material way or set aside on appeal, or if a final judgment order with the provisions generally described in Paragraph 24 is not entered, or if the Court enters the final judgment order
and appellate review is sought and, on such review, such final judgment order is not affirmed in material part, then Settling Defendants, on the one hand, and Plaintiffs, on the other, shall each, in their sole discretion, have the option to rescind
this Settlement Agreement in its entirety (except as hereafter provided in this Paragraph) by written notice to the Court and to counsel for the other Settling Parties filed and served within ten (10) business days of the entry of an order not
granting court approval or Final Approval or having the effect of disapproving or materially modifying the terms of the Settlement Agreement. A modification or reversal on appeal of any amount of the Settlement Fund that the Court authorizes to be
used to pay Plaintiffs’ litigation expenses shall not be deemed a modification of all or a part of the terms of this Settlement Agreement or such final judgment order and shall not be grounds for rescission. 

  
 13 

 43. Any decision by Settling Defendants to rescind this Settlement Agreement, for any reason
under this Section F, must be unanimous (i.e. for any one Settling Defendant to rescind the Settlement, all four Settling Defendants must rescind the Settlement). 

44. If the Settlement or Settlement Agreement is rescinded for any valid reason, then the balance of the Settlement Amount in the Notice Fund
and Settlement Fund will be returned to Settling Defendants within ten (10) business days. In the event that the Settlement Agreement is rescinded, the funds already properly expended for the costs of notice and administration will not be
returned to Settling Defendants. Additionally, in such event, funds to pay for notice, administration expenses or taxes that have been properly incurred but not yet paid will also not be returned to Settling Defendants. 

45. If the Settlement or Settlement Agreement is rescinded for any valid reason before payment of claims to Settlement Class Members,
then the Settling Parties will be restored to their respective positions in the Action as of the Execution Date. In that event, the Action will proceed as if this Settlement Agreement had never been executed and this Settlement Agreement, and
representations made in conjunction with this Settlement Agreement, may not be used in the Action or otherwise for any purpose. Settling Defendants and Plaintiffs expressly reserve all rights if the Settlement Agreement does not become effective or
if it is rescinded by Settling Defendants or the Plaintiffs pursuant to this Section F. 
 46.
Opt-Out Termination: Settling Defendants shall, in their sole discretion, have the option to rescind this Settlement Agreement upon the occurrence of one or more conditions relating to Opt-Out Purchasers, as set forth in the Confidential Side Letter executed between Co-Lead Counsel and Settling Defendants. 

  
 14 

 47. Within seven (7) calendar days after the end of the period to request exclusion from the
Settlement Class established by the Court and set forth in the notice, Co-Lead Counsel shall provide Settling Defendants, through their counsel, with a written list of all
Opt-Out Purchasers. Co-Lead Counsel and Settling Defendants will ascertain the Opt-Out Percentage. In the event that the Opt-Out Percentage is equal to or greater than the percentage set forth in the Confidential Side Letter, then Settling Defendants shall have the right to rescind this Settlement Agreement by providing written notice
to Co-Lead Counsel within ten (10) calendar days after receipt of the list of Opt-Out Purchasers or within five (5) business days after ascertaining with
Plaintiffs the Opt-Out Percentage, whichever is later. Upon receipt of such notice, Co-Lead Counsel shall, within seven (7) calendar days, provide Settling
Defendants with written notice of any challenge by Plaintiffs to such claim of entitlement to rescind this Settlement Agreement. In the event the parties are unable to agree upon the Opt-Out Percentage or
Settling Defendants’ right to rescind this Settlement Agreement under this Paragraph, they shall submit the issue to the Court adjudicating the Action. Plaintiffs may attempt to obtain final rescission of any decision by an Opt-Out Purchaser to request exclusion prior to Settling Defendants invoking their rights under this Paragraph. Neither Plaintiffs nor Settling Defendants shall solicit or advise potential members of the Settlement
Class to request exclusion from the Settlement Class. Settling Defendants will take no action to encourage opt outs or advise potential members of the Settlement Class to opt out of the class. If contacted by potential members of the
Settlement Class about opting out of the class, Settling Defendants will promptly refer such potential members of the Settlement Class to Co-Lead Counsel. 

  
 15 

 48. Settling Defendants’ right to rescind this Settlement Agreement is a material term of
this Settlement Agreement. 
 49. The parties agree to keep confidential the Confidential Side Letter and its terms and conditions contained
therein separate from any documents filed with the Court. The Parties agree to submit the Confidential Side Letter to the Court in camera if requested unless ordered to file it, in which case it shall be filed under seal. In the event that
the terms of the Confidential Side Letter are disclosed through no fault of Settling Defendants, or are disclosed because required by law, Settling Defendants shall have no liability for any damages resulting from such disclosure, and any such
disclosure of the Confidential Side Letter shall have no effect on this Settlement. 
 50. Settling Defendants reserve all of their legal
rights and defenses with respect to any potential Opt-Out Purchaser. 
  

	G.	Taxes 

 51. Co-Lead Counsel shall be
solely responsible for filing all informational and other tax returns necessary to report any net taxable income earned by the Settlement Fund and shall file all informational and other tax returns necessary to report any income earned by the
Settlement Fund and shall be solely responsible for taking out of the Settlement Fund, as and when legally required, any tax payments, including interest and penalties due on income earned by the Settlement Fund. All taxes (including any interest
and penalties) due with respect to the income earned by the Settlement Fund shall be paid from the Settlement Fund. Settling Defendants shall have no responsibility to make any filings relating to the Settlement Fund and will have no responsibility
to pay tax on any income earned by the Settlement Fund or to pay any taxes on the Settlement Fund unless the Settlement is not consummated and the Settlement Fund is returned to Settling Defendants. In the event the Settlement does not become final
and any 

  
 16 

 
funds including interest or other income are returned to Settling Defendants, Settling Defendants shall be responsible for the payment of all taxes (including any interest or penalties), if any,
on said interest or other income. Settling Defendants make no representations regarding, and shall not be responsible for, the tax consequences of any payments made pursuant to this Settlement Agreement to
Co-Lead Counsel or to any Settlement Class Member. 
  

	H.	Miscellaneous 

 52. This Settlement Agreement does not settle or compromise any
claim by Plaintiffs or any other Settlement Class Member against any alleged co-conspirator or other person or entity other than the Releasees. All rights of any member of the Settlement
Class against any Non-Settling Defendant or an alleged co-conspirator or other person or entity other than the Releasees are specifically reserved by Plaintiffs and
the other members of the Settlement Class. 
 53. This Settlement Agreement constitutes the entire agreement among Plaintiffs and Settling
Defendants pertaining to the Settlement of the Action against Settling Defendants. This Settlement Agreement may be modified or amended only by a writing executed by Plaintiffs and Settling Defendants. 

54. Neither this Settlement Agreement nor any negotiations or proceedings connected with it shall be deemed or construed to be an admission by
any party or any Releasee of any wrongdoing or liability or evidence of any violation by Settling Defendants of any federal or state statute or law either in the Action or in any related action or proceedings, and evidence thereof shall not be
discoverable or used, directly or indirectly, in any way, except in a proceeding to interpret or enforce this Settlement Agreement. This Settlement Agreement represents the settlement of disputed claims and does not constitute, nor shall it be
construed as, an admission or disparagement of the correctness of any position asserted by any party, or an admission of liability or lack of liability or of any wrongdoing or lack of any wrongdoing by any party, or as an admission of any strengths
or weaknesses of the Plaintiffs’ claims or Settling Defendants’ defenses. Settling Defendants specifically deny any wrongdoing or liability by any of the Releasees. 

  
 17 

 55. Any delay in the completion of any settlement between Settling Defendants and the Indirect
Purchaser Class or any other party shall not form the basis of any delay in finalizing the Settlement Agreement, nor shall the inability of Settling Defendants to complete a settlement with the Indirect Purchaser Class or any other party
serve as an impediment to finalizing the Settlement Agreement, seeking preliminary approval of the Settlement Agreement, or seeking Final Approval of the Settlement Agreement. 

56. This Settlement Agreement may be executed in counterparts by Plaintiffs and Settling Defendants, and a facsimile or scanned signature
shall be deemed an original signature for purposes of executing this Settlement Agreement. 
 57. Neither Plaintiffs nor Settling Defendants
shall be considered the drafter of this Settlement Agreement or any of its provisions for the purpose of any statute, the common law, or rule of interpretation that would or might cause any provision of this Settlement Agreement to be construed
against the drafter. 
 58. The provisions of this Settlement Agreement shall, where possible, be interpreted in a manner to sustain their
legality and enforceability. 
 59. The Court shall retain jurisdiction over the implementation and enforcement of this Settlement Agreement
and the Settlement. 
 60. Any disputes between Settling Defendants and Co-Lead Counsel concerning
this Settlement Agreement shall, if they cannot be resolved by the parties, be submitted to the United States District Court for the Eastern District of Pennsylvania. 

  
 18 

 61. This Settlement Agreement shall be governed and interpreted according to the substantive laws
of the Commonwealth of Pennsylvania, without regard to its choice of law or conflict of law principles. 
 62. Each party acknowledges that
it has been and is being fully advised by competent legal counsel of such party’s own choice and fully understands the terms and conditions of this Settlement Agreement, and the meaning and import thereof, and that such party’s execution
of this Settlement Agreement is with the advice of such party’s counsel and of such party’s own free will. Each party represents and warrants that it has sufficient information regarding the transaction and the other parties to reach an
informed decision and has, independently and without relying upon the other parties, and based on such information as it has deemed appropriate, made its own decision to enter into this Settlement Agreement and was not fraudulently or otherwise
wrongfully induced to enter into this Settlement Agreement. 
 63. Each of the undersigned attorneys represents that he or she is fully
authorized to enter into the terms and conditions of, and to execute, this Settlement Agreement. 
  

			
	 /s/ H. Laddie Montague, Jr.

H. Laddie Montague, Jr.
 Eric L. Cramer

Ruthanne Gordon
 Michael C. Dell’Angelo

Candice J. Enders
 BERGER & MONTAGUE, P.C.

1622 Locust Street
 Philadelphia, PA 19103

Tel: (215) 875-3000

Email: hlmontague@bm.net

            ecramer@bm.net

            rgordon@bm.net

            mdellangelo@bm.net

            cenders@bm.net
	    	 /s/ Eugene A. Spector

Eugene A. Spector
 Jeffrey J. Corrigan

Rachel E. Kopp
 Jeffrey L. Spector

SPECTOR ROSEMAN
 & KODROFF, P.C.

1818 Market Street, Suite 2500
 Philadelphia, PA 19103

Tel: (215) 496-0300

Email: espector@srkattorneys.com

            jcorrigan@srkattorneys.com

            rkopp@srkattorneys.com

            
jspector@srkattorneys.com

  
 19 

			
	 /s/ Kit A. Pierson

Kit A. Pierson
 Brent W. Johnson

David A. Young
 COHEN MILSTEIN

SELLERS & TOLL PLLC
 1100 New York Ave., NW, Suite
500
 Washington, DC 20005
 Tel: (202) 408-4600
 Email: kpierson@cohenmilstein.com

            bjohnson@cohenmilstein.com

            dyoung@cohenmilstein.com
	    	

 Co-Lead Counsel for the Direct Purchaser Plaintiffs 

  
 20 

			
	 MCDERMOTT WILL & EMERY LLP

 
 By: /s/ Joel G. Chefitz
                        
 Joel
G. Chefitz
 David L. Hanselman Jr.
 Chelsea L. Black

444 West Lake Street
 Chicago, IL 60606

Telephone: (312) 372-2000

Facsimile: (312) 984-7700

jchefitz@mwe.com
 dhanselman@mwe.com

cblack@mwe.com
  

Raymond A. Jacobsen, Jr.
 Paul M. Thompson

Nicole L. Castle
 The McDermott Building

500 North Capitol Street, NW
 Washington, DC 20001

Telephone: (202) 756-8000

Facsimile: (202) 756-8087

rayjacobsen@mwe.com
 pthompson@mwe.com

ncastle@mwe.com
  

Counsel for defendants American Gypsum
 Company LLC and
Eagle Materials Inc.
  
 LOCKE LORD LLP

 
 By: /s/ Bradley C. Weber
                  
 Bradley C. Weber

Susan Adams
 2200 Ross Avenue, Suite 2800

Dallas, Texas 75201
 Telephone: (214) 740-8497
 Facsimile: (214) 756-8497

bweber@lockelord.com
 suadams@lockelord.com

 
 Counsel for defendant PABCO Building

Products, LLC
	 	 DECHERT LLP
  

By: /s/ Steven E.
Bizar                        

Steven E. Bizar
 Benjamin McAnaney

Julia Chapman
 Cira Centre

2929 Arch Street
 Philadelphia, PA 19104

Telephone: (215) 994-2205

Facsimile: (215) 655-2205

steven.bizar@dechert.com
 benjamin.mcananey@dechert.com

julia.chapman@dechert.com
  

ROBINSON BRADSHAW & HINSON, P.A.

Robert E. Harrington
 Lawrence C. Moore, III

Nathan C. Chase, Jr.
 Erik R. Zimmerman

101 North Tryon Street, Suite 1900
 Charlotte, NC 28246

Telephone: (704) 377-2536

Facsimile: (704) 378-4000

rharrington@rbh.com
 lmoore@rbh.com

nchase@rbh.com
 ezimmerman@rbh.com

 
 BUCHANAN INGERSOLL & ROONEY
PC
 Thomas P. Manning
 Two Liberty Place

50 S. 16th Street, Suite 3200
 Philadelphia, PA 19102-2555

Telephone: (215) 665-8700

Facsimile: (215) 665-8760

thomas.manning@bipc.com
  

Counsel for defendant New NGC, Inc. d/b/a
 National
Gypsum Company

  
 21goro_EX10-1_20171228

		
			Exhibit 10.1
		

		
			AMENDED AND RESTATED

EMPLOYMENT AGREEMENT
		

		
			This Employment Agreement (the “Agreement”), is entered into as of the [ ] day of [ ], between [   ] (the “Executive”) and Gold Resource Corporation, a Colorado Corporation (the “Company”).
		

		
			WHEREAS, the Executive is currently employed by the Company as [   ];
		

		
			WHEREAS, Company and the Executive previously entered into an employment agreement defining the terms and conditions of Executive’s employment with the Company, dated as of [   ] (“Original Agreement”);
		

		
			WHEREAS, the Original Agreement provided Executive with certain rights, responsibilities, and benefits;
		

		
			WHEREAS, the Company and Executive believe that it is in the best interest of each to make certain changes to Executive’s terms and conditions of his employment with the Company; and
		

		
			WHEREAS, the Company desires to continue to receive the services of Executive, and Executive desires to provide services to the Company, in accordance with the terms, conditions and provisions of this Agreement.
		

		
			NOW THEREFORE, in consideration of the mutual covenants contained herein and other valid consideration, the sufficiency of which is acknowledged, the Company and Executive agree to amend and restate the Original Agreement as follows:
		

		
			1. Employment; Devotion to Duties.
		

		
			(a) General. The Company will employ Executive as its [  ] reporting to the [Company’s Chief Executive Officer (“CEO”) and the] Company’s Board of Directors (the “Board”), and Executive accepts employment to serve in this capacity, all upon the terms and conditions in this Agreement. Executive will have those duties and responsibilities that are consistent with Executive’s position as [  ], as determined by the [CEO and the] Board. The Company reserves the right, in its sole discretion, to change or modify Executive’s position, title and duties during the term of this Agreement.
		

		
			(b) Devotion to Duties. During the Term, Executive (i) will devote all of his business time and efforts to the performance of his duties on the Company’s behalf, and (ii) will not at any time or place or to any extent whatsoever, either directly or indirectly, without the express written consent of the Company, engage in any outside employment, or in any activity competitive with or adverse to the Company’s business, practice or affairs, whether alone or as partner, manager, officer, director, employee, shareholder of any corporation or as a trustee, fiduciary, consultant or other representative. This is not intended to prohibit Executive from engaging in nonprofessional activities such as personal investments or conducting to a reasonable extent private business affairs which may include other boards of directors’ activity, as long as they do not conflict with the Company and, in the case of 

		 

 

positions on boards of directors or similar bodies, receive the prior written approval of the [CEO or the] Board. Participation to a reasonable extent in civic, social or community activities is encouraged. Notwithstanding anything herein to the contrary, any non-Company activities will be conducted in compliance with the Company’s corporate governance policies and other policies and procedures as in effect from time to time.
		

		
			2. Term.
		

		
			(a) Initial Term. Executive will continue employment as [  ] of the Company under the terms of this Agreement starting on January 1, 2018 (the “Commencement Date”). Executive will be employed under this Agreement until January 1, 2019 (the “Initial Term”). The term is automatically extended under Section 2(b) unless Executive’s employment is terminated earlier pursuant to Section 7.
		

		
			(b) Renewal Term. The term of this Agreement and the Executive’s employment renew automatically for successive one-year periods (each, a “Renewal Term”), unless at least 60 days before the end of the Initial Term or any Renewal Term, either party gives notice to the other party that this Employment Agreement will terminate at the end of the Initial Term or any Renewal Term (the Initial Term, together with any Renewal Terms, the “Term”). Notwithstanding the above, the Executive’s employment is subject to earlier termination under Section 7. Except as otherwise agreed by Executive, if the Company timely elects not to renew this Agreement at the end of the Initial Term or any Renewal Term, the Executive’s termination of employment will be characterized as a termination without Cause under Section 7(b).
		

		
			3. Location. The location of Executive’s principal place of employment will be at the Company’s offices; but the Executive understands that he may be required to travel and perform services outside of this area as reasonably required to properly perform his duties under this Agreement.
		

		
			4. Base Salary. The Company will pay Executive an annual base salary (“Base Salary”) in the amount of [  ], subject to future modification in accordance with the Company’s executive compensation review policies and practices. The Base Salary will be paid in accordance with the Company’s payroll practices in effect from time to time.
		

		
			5. Incentive Compensation.
		

		
			(a) Short-term Incentive Compensation. Executive will be entitled from time to time to annual short-term incentive compensation which may consist of cash bonuses up to a maximum of 100% of the Executive’s base salary and/or short-term equity awards based on incentive compensation plans or other criteria established by, and payable in the sole discretion of the Board or one of its committees. Unless deferred pursuant to a plan that complies with Section 409A of the Internal Revenue Code of 1986, as amended (“Code”), this bonus, if any, will be paid to the Executive no later than two and one-half months following the end of the relevant fiscal year in which the services are performed.
		

		
			(b) Long-term Incentive Compensation. Executive will be entitled to receive equity grants pursuant to the Company’s Equity Incentive Plan(s) based on incentive compensation plans or other criteria established by, and payable in the sole discretion of the Board or one of its committees.
		

		
			

		 

		

			2

		

 

		

		
			(c) Clawback. The compensation and benefits provided pursuant to this Agreement may be subject to the Company’s compensation recoupment policy or policies (and related Company practices) that may be adopted by the Company and in effect from time-to-time, including, but not limited to, any policy or policies that may be adopted in response to applicable law (each, a “Clawback Policy”). By signing this Agreement Executive agrees to fully cooperate with the Company in assuring compliance with such policies and the provisions of applicable law, including, but not limited to, promptly returning any compensation subject to recovery by the Company pursuant to such Clawback Policies and applicable law.
		

		
			6. Executive Benefits.
		

		
			(a) Fringe Benefits; Paid Time Off. The Company will provide Executive with those fringe benefits and other executive benefits on the same terms and conditions as generally available to senior management from time to time (e.g., health and other insurance programs, etc.); provided, however, that the Company reserves the right to amend or terminate any employee or executive benefit plan or program. Executive is entitled to paid time off (PTO) during each calendar year, with the amount and scheduling of the vacation to be determined under the Company’s PTO policies as in effect from time to time.
		

		
			(b) Reimbursement of Expenses. Executive is entitled to be reimbursed by the Company for reasonable business expenses incurred in performing his duties under the Company’s expense reimbursement policies as in effect from time to time or as otherwise approved by the CEO or the Board.
		

		
			7. Termination of Employment During the Term of the Agreement. Upon, and as of, the date of the Executive’s termination of employment with the Company for any reason, the Executive will be deemed to have resigned from all positions he then holds as an officer or employee of the Company. The Executive’s employment may be terminated during the Term of this Agreement pursuant to the following terms and conditions:
		

		
			(a) Company Terminates Executive’s Employment for Cause.
		

		
			(i) Definition. For purposes of this Agreement, Cause means (A) the Executive’s failure to substantially perform his reasonably assigned duties (other than on account of Disability); (B) the Executive is convicted of criminal conduct having the effect of materially adversely affecting the Company, after all rights of appeal have expired or such appeals have been exhausted; (C) the Executive engages in the use of alcohol or narcotics to the extent that the performance of his duties is materially impaired; (D) the Executive materially breaches the terms of this Agreement; (E) the Executive engages in willful misconduct that is materially injurious to the Company, other than business decisions made in good faith; or (F) the Executive commits any act or omission not described above that constitutes material and willful misfeasance, malfeasance, fraud or gross negligence in the performance of his duties to the Company.
		

		
			(ii) Effective Date of Termination. Executive’s employment will terminate immediately upon written notice by the Company to Executive stating that Executive’s employment is being terminated for Cause.
		

		
			(iii) Compensation and Benefits. If the Company terminates the Executive’s employment for Cause, the Company will pay Executive (A) any earned but unpaid Base Salary 

		 

		

			3

		

 

through the effective date of termination, and (B) any other unpaid benefit to which he has earned under the applicable terms of any applicable plan, program, agreement or arrangement of the Company or its affiliates (the amounts in (A) and (B) above are referred to elsewhere in this Agreement as “Accrued Amounts”).
		

		
			(b) Company Terminates Executive’s Employment without Cause.
		

		
			(i) Effective Date of Termination. Executive’s employment will terminate (A) on the 30th day after the Company gives written notice to Executive stating that Executive’s employment is being terminated without Cause or (B) upon expiration of the Term of this Agreement as set forth in Section 2(b) above. The Company may, at its discretion, place Executive on a paid administrative leave during all or any part of the notice period. During the administrative leave, the Company may bar Executive’s access to its offices or facilities or may provide Executive with access subject to such terms and conditions as the Company chooses to impose.
		

		
			(ii) Compensation and Benefits. If the Company terminates Executive’s employment without Cause (subject to all of the terms and conditions of this Agreement, including without limitation Section 7(h) and Section 10)), Company will pay or provide Executive the sum of:
		

		
			(1) Accrued Amounts;
		

		
			(2) 12 months of Executive’s then current Base Salary, payable in a lump sum no later than the 60th day following the termination date (unless otherwise delayed under Section 7(h) below), provided that the revocation period set forth in the Release Agreement in Section 7(b)(iii) has expired on or before that date;
		

		
			(3) to the extent permissible under the terms of the Company’s welfare benefit plans, the continuation of all Company welfare benefits, including medical, dental, vision, life and disability benefits pursuant to plans maintained by the Company under which the Executive and/or the Executive’s family were receiving benefits and/or coverage, or otherwise reimburse Executive for the cost of continuation of state health coverage for the Executive and/or the Executive’s family, for the 18-month period following the date of the Executive’s termination, and the Executive shall pay any portion of such cost as was required to be borne by key executives of the Company generally on the date of termination; provided, however, that, the coverage for any plan subject to COBRA or state continuation of coverage will discontinue if such coverage terminates under Section 4980B of the Code; and
		

		
			(iii) Release Agreement. The Company will not make any payment to Executive or furnish any benefit under this Section 7(b) unless Executive signs (and does not revoke) a legal release (“Release Agreement”), in the form and substance reasonably requested by the Company. The Release Agreement will require Executive to release the Company, directors, officers, employees, agents and other affiliates with the Company from any and all claims, including claims relating to Executive’s employment with the Company and the termination of Executive’s employment. The Release Agreement must be executed and returned to the Company within the 21 or 45 day (as applicable) period described in the Release Agreement and it must not be revoked by Executive within the seven-day revocation period described in the Release Agreement. Notwithstanding anything in this Agreement to the contrary, (A) the Company will provide the Release Agreement to the Executive in a timely manner to comply with the provisions under Code Section 409A, and (B) if the Company concludes, in the exercise of its discretion, that the payments due pursuant to this Agreement are 

		 

		

			4

		

 

subject to Section 409A of the Code, and if the consideration period, plus the revocation period described in the Release Agreement, spans two calendar years, the payments will be made in the second calendar year.
		

		
			(c) Executive Voluntarily Resigns.
		

		
			(i) Effective Date of Termination. Executive’s employment will terminate on the 30th day after Executive gives written notice to the Company stating that Executive is resigning his employment with the Company for any reason, unless the Company waives in writing all or part of this notice period (in which case the termination of employment is effective as of the date of the waiver).
		

		
			(ii) Compensation and Benefits. If the Executive voluntarily resigns, the Company will pay Executive the Accrued Amounts.
		

		
			(d) Disability.
		

		
			(i) Definition. For purposes of this Agreement, Disability or Disabled means the Executive (A) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (B) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, is receiving income replacement benefits for a period of not less than three months under an accident and health plan covering the Company’s employees.
		

		
			(ii) Effective Date of Termination. Executive’s employment will terminate on the first day the Company makes a determination that the Executive is Disabled.
		

		
			(iii) Compensation and Benefits. Upon a determination that the Executive is Disabled, the Company will pay to Executive a lump sum equal to 6 months of Executive’s then Base Salary, reduced by any disability insurance maintained by the Company to be received by Executive for 6 months following his termination of employment, payable within 30 days following the date of Executive’s termination of employment.
		

		
			(e) Death.
		

		
			(i) Effective Date of Termination. Executive’s employment will terminate immediately upon the Executive’s death.
		

		
			(ii) Compensation and Benefits. If the Executive dies during the Term, the Company will pay Executive’s designated beneficiary, or his estate if there is no designated beneficiary, the Accrued Amounts. Any amounts payable under this Section 7(e)(ii) are in addition to any payments which the Executive’s designated beneficiary or estate may be entitled to receive pursuant to any pension plan, profit sharing plan, employee benefit plan, or life insurance policy maintained by the Company.
		

		
			

		 

		

			5

		

 

		

		
			(f) Change in Control.
		

		
			(i) Definition. For purposes of this Agreement, the term Change in Control means (A) the sale of 50% or more of the outstanding voting securities of the Company in a single transaction or a series of transaction occurring during a 12-month period; (B) A majority of the members of the Board of Directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the Company’s Board of Directors prior to the date of the appointment or election; (C) the Company is merged or consolidated with another corporation and as a result of such merger or consolidation less than 50% of the outstanding securities of the surviving or resulting corporation is owned in the aggregate by the shareholders of the Company that existed immediately prior the merger or consolidation; or (D) the Company sells more than 40% of the fair market value of its assets to another corporation that is not a wholly owned subsidiary of the Company during a 12-month period.
		

		
			(ii) Compensation and Benefits. If the Company terminates Executive’s employment or Executive resigns with Good Reason in connection with or within a period of 12 months following a Change in Control, the Company will pay to Executive 24 months of Executive’s then current Base Salary plus an amount equal to the greater of actual short-term incentive compensation received or the targeted cash bonus amount pursuant to the short-term incentive plan for each of the two calendar years prior to the Change in Control, payable in a lump sum no later than the 60th day following the termination date (unless otherwise delayed under Section 7(h) below). For purposes of this Agreement, “Good Reason” means assigning the Executive to any duties that are materially inconsistent with his position as described in Section 1, a reduction of Executive’s Base Salary without the prior written consent of the Executive, or a relocation of Executive’s primary job duties to a location more than 50 miles from the location described in Section 3. The foregoing notwithstanding, a condition is not considered “Good Reason” unless (A) Executive gives the Company written notice of such condition within 30 days after the condition comes into existence; (B) the Company fails to cure the condition within 30 days after receiving Executive’s written notice; and (C) Executive terminates his employment within 12 months following a Change in Control.
		

		
			(iii) Change in Control Payment/Section 280G Limitation.
		

		
			(1) General Rules. Code Sections 280G and 4999 may place significant tax burdens on both Executive and the Company if the total payments made to Executive due to certain change in control events described in Code Section 280G (the “Total Change in Control Payments”) equal or exceed the 280G Cap (three times the Executive’s  “Base Amount” as defined in Code Section 280G). If the Total Change in Control Payments equal or exceed the 280G Cap, Section 4999 of the Code imposes a 20% excise tax (the “Excise Tax”) on all amounts in excess of one times Executive’s Base Period Income Amount. The Excise Tax is imposed on Executive, rather than the Company, and will be withheld by the Company from any amounts payable to Executive pursuant to this Agreement. In determining whether the Total Change in Control Payments will exceed the 280G Cap and result in an Excise Tax becoming due, and for purposes of calculating the 280G Cap itself, the provisions of Code Sections 280G and 4999 and the applicable regulations will control over the general provisions of this Section 7(f)(iii).
		

		
			(2) Limitation on Payments. Subject to the “best net” exception described in Section 7(f)(iii)(3) below, in order to avoid the imposition of the Excise Tax, the total payments to 

		 

		

			6

		

 

which Executive is entitled under this Agreement or otherwise will be reduced to the extent necessary to avoid exceeding the 280G Cap minus $1.00.
		

		
			(3) “Best Net” Exception. If Executive’s Total Change in Control Payments minus the Excise Tax payable on all such payments exceeds the 280G Cap minus $1.00, then the total payments to which Executive is entitled under this Agreement or otherwise will not be reduced pursuant to Section 7(f)(iii)(2). If the “best net” exception applies, Executive shall be responsible for paying any Excise Tax (and income or other taxes) that may be imposed on Executive pursuant to Code Section 4999 or otherwise.
		

		
			(4) Calculating the 280G Cap. If the Company believes that the provisions of Section 7(f)(iii)(2) may apply to reduce the total payments to which Executive is entitled under this Agreement or otherwise, it will notify Executive as soon as possible. The Company then will engage a “Consultant” (a law firm, a certified public accounting firm, and/or a firm of recognized executive compensation consultants) to make any necessary determinations and to perform any necessary calculations required in order to implement the rules set forth in this Section 7(f)(iii). The Consultant shall provide detailed supporting calculations to both the Company and Executive and all fees and expenses of the Consultant shall be borne by the Company.
		

		
			If the Consultant determines that the limitations of Section 7(f)(iii)(2) apply, then the total payments to which Executive is entitled under this Agreement or otherwise will be reduced to the extent necessary to eliminate the amount in excess of the 280G Cap. Such payments will be made at the times specified herein, in the maximum amount that may be paid without exceeding the 280G Cap. The balance, if any, will then be paid, if due, after the opinions called for by this Section 7(f)(iii)(4) have been received.
		

		
			If the amount paid to Executive by the Company is ultimately determined by the Internal Revenue Service to have exceeded the limitations of Section 7(f)(ii)(2), Executive must repay the excess promptly on demand of the Company. If it is ultimately determined by the Consultant or the Internal Revenue Service that a greater payment should have been made to Executive, the Company shall pay Executive the amount of the deficiency within 30 days of such determination.
		

		
			As a general rule, the Consultant’s determination shall be binding on Executive and the Company. Section 280G and the Excise Tax rules of Section 4999, however, are complex and uncertain and, as a result, the Internal Revenue Service may disagree with the Consultant’s conclusions. If the Internal Revenue Service determines that the 280G Cap is actually lower than calculated by the Consultant, the 280G Cap will be recalculated by the Consultant. Any payment in excess of the revised 280G Cap then will be repaid by Executive to the Company. If the Internal Revenue Service determines that the actual 280G Cap exceeds the amount calculated by the Consultant, the Company shall pay Executive any shortage.
		

		
			The Company has the right to challenge any determinations made by the Internal Revenue Service. If the Company agrees to indemnify Executive from any taxes, interest and penalties that may be imposed on Executive in connection with such challenge, then Executive must cooperate fully with the Company. the Company shall bear all costs associated with the challenge of any determination made by the Internal Revenue Service and the Company shall control all such challenges.
		

		
			

		 

		

			7

		

 

		

		
			Executive must notify the Company in writing of any claim or determination by the Internal Revenue Service that, if upheld, would result in the payment of Excise Taxes. Such notice shall be given as soon as possible but in no event later than 15 days following Executive’s receipt of the notice of the Internal Revenue Service’s position.
		

		
			(5) Effect of Repeal. If the provisions of Code Sections 280G and 4999 are repealed without succession, this Section 7(f)(ii) will not apply. In addition, if this provision does not apply to Executive for whatever reason (e.g., because Executive is not a “disqualified individual” for purposes of Code Section 280G), this Section will not apply.
		

		
			(g) Leave of Absence. At the Company’s sole discretion, Executive may be placed on a paid administrative leave of absence for a reasonable period of time (not to exceed 60 days unless otherwise reasonably required to resolve matters under investigation) should the Board believe it necessary for any reason, including, but not limited to confirm that reasonable grounds exist for a termination for Cause, for example, pending the outcome of any internal or other investigation or any criminal charges. During this leave, the Company may bar Executive’s access to the Company’s or any affiliate’s offices or facilities or may provide Executive with access subject to terms and conditions as the Company chooses to impose.
		

		
			(h) Compliance with Code Section 409A. Any payment under this Section 7 is subject to the provisions of this Section 7(h) (except for a payment pursuant to Disability or death under Section 7(d) or (e)). If Executive is a “Specified Employee” of the Company for purposes of Code Section 409A at the time of a payment event in Section 7(b) and if no exception from Code Section 409A applies in whole or in part, the severance or other payments will be made to Executive by the Company on the first day of the seventh month following the date of the Executive’s Separation from Service (the “409A Payment Date”). Should this Section 7(h) result in a delay of payments to Executive, the Company will begin to make the payments as described in this Section 7, provided that any amounts that would have been payable earlier but for the application of this Section 7(h), will be paid in lump-sum on the 409A Payment Date along with accrued interest at the rate of interest announced by the Company’s primary bank from time to time as its prime rate from the date that payments would otherwise have been made under this Agreement. The balance of the severance payments will be payable in accordance with regular payroll timing and the COBRA premiums will be paid monthly. For purposes of the provision, the term Specified Employee has the meaning in Code Section 409A(a)(2)(B)(i), or any successor provision and the issued treasury regulations and rulings. “Separation from Service” or “Termination of Employment” means, with respect to any payment that is subject to Code Section 409A, either (a) termination of Executive’s employment with Company and all affiliates, or (b) a permanent reduction in the level of bona fide services Executive provides to Company and all affiliates to an amount that is 20% or less of the average level of bona fide services Executive provided to Company in the immediately preceding 36 months, with the level of bona fide service calculated in accordance with Treasury Regulations Section 1.409A-1(h)(1)(ii). Solely for purposes of determining whether Executive has a “Separation from Service,” Executive’s employment relationship is treated as continuing while Executive is on military leave, sick leave, or other bona fide leave of absence (if the period of such leave does not exceed six months, or if longer, so long as Executive’s right to reemployment with Company or an affiliate is provided either by statute or contract). If Executive’s period of leave exceeds six months and Executive’s right to reemployment is not provided either by statute or by contract, the employment relationship is deemed to terminate on the first day immediately following the expiration of such six-month period. Whether a termination of employment has occurred will be determined based on all of the facts and circumstances and in 

		 

		

			8

		

 

accordance with regulations issued by the United States Treasury Department pursuant to Code Section 409A. If the payment is not subject to Code Section 409A, the term termination of employment will be given its ordinary meaning.
		

		
			(i) Mitigation/Offset. The Executive is under no obligation to seek other Employment or to otherwise mitigate the obligations of the Company under this Agreement, and the Company may not offset against amounts or benefits due Executive under this Agreement or otherwise on account of any claim (other than any preexisting debts then due in accordance with their terms) the Company or its affiliates may have against him or any remuneration or other benefit earned or received by Executive after such termination.
		

		
			8. Executive’s Post-Termination Obligations.
		

		
			(a) Ownership of Work, Materials and Documents. The Executive will disclose promptly to the Company any and all inventions, discoveries, and improvements (whether or not patentable or registrable under copyright or similar statutes), and all patentable or copyrightable works, initiated, conceived, discovered, reduced to practice, or made by the Executive, either alone or in conjunction with others, during the Executive’s employment with the Company and related to the business or activities of the Company and its affiliates (the “Developments”). Except to the extent any rights in any Developments constitute a work made for hire under the U.S. Copyright Act, which the parties acknowledge are owned by the Company and/or its applicable affiliate, the Executive assigns all of his right, title and interest in all Developments (including all intellectual property rights) to the Company or its nominee without further compensation, including all rights or benefits, including, without limitation, the right to sue and recover for past and future infringement. Whenever requested by the Company, the Executive will execute any and all applications, assignments or other instruments which the Company deems necessary to apply for and obtain trademarks, patents or copyrights of the United States or any foreign country or otherwise protect its interests. These obligations continue beyond the end of the Executive’s employment with the Company with respect to inventions, discoveries, improvements or copyrightable works initiated, conceived or made by the Executive while employed by the Company, and are binding upon the Executive’s employers, assigns, executors, administrators and other legal representatives. If the Company is unable for any reason, after reasonable effort, to obtain the Executive’s signature on any document needed in connection with the actions described in this Section 8(a), the Executive irrevocably designates and appoints the Company and its duly authorized officers and agents as the Executive’s agent and attorney in fact to act for and in the Executive’s behalf to execute, verify and file any such documents and to do all other lawfully permitted acts to further the purposes of this Section 8(a) with the same legal force and effect as if executed by the Executive. Immediately upon the Company’s request at any time during or following the Term, Executive is required to return to the Company any and all Confidential and Proprietary Information and any other property of the Company then within Executive’s possession, custody and/or control. Failure to return this property, whether during the term of this Agreement or after its termination, is a breach of this Agreement.
		

		
			(b) Interests to be Protected. During the course of Executive’s employment, Executive will be exposed to a substantial amount of confidential and proprietary information, including, but not limited to, financial information, annual reports, audited and unaudited financial reports, operational budgets and strategies, methods of operation, customer lists, strategic plans, business plans, marketing plans and strategies, new business strategies, merger and acquisition strategies, management systems programs, computer systems, personnel and compensation information and payroll data, and other 

		 

		

			9

		

 

such reports, documents or information (collectively the “Confidential and Proprietary Information”). Due to Executive’s senior position with the Company and its affiliates, Executive acknowledges that he regularly receives Confidential and Proprietary Information with respect to the Company and/or its affiliates; for the avoidance of doubt, all such information is expressly included in the defined term “Confidential and Proprietary Information.” If Executive’s employment is terminated by either party for any reason, Executive promises that Executive will not retain, take with Executive or make any copies of such Confidential and Proprietary Information in any form, format, or manner whatsoever (including paper, digital or other storage in any form) nor will Executive disclose the same in whole or in part to any person or entity, in any manner either directly or indirectly. Excluded from this Agreement is information that (i) is or becomes publicly known through no violation of this Agreement; (ii) is lawfully received by the Executive from any third party without restriction on disclosure or use; (iii) is required to be disclosed by law, or (iv) is expressly approved in writing by the Company for release or other use by the Executive. Executive and the Company also acknowledge that because Executive is a senior executive he will have access to information (some of which is Confidential Information and some of which is not), employees and knowledge about the Company that is extremely valuable to the Company and which it needs to protect for a period of time after Executive terminates employment. Additionally, they agree that the covenants in this Section 8 are reasonable and necessary to protect the Company’s legitimate business interests. Executive and the Company agree that the following restrictive covenants (which together are referred to as the “Executive’s Post-Termination Obligations”) are fair and reasonable and are freely, voluntarily and knowingly entered into. Further, each party has been given the opportunity to consult with legal counsel before entering into this Agreement.
		

		
			(c) Judicial Amendment. If the scope of any provision of Section 8 of this Agreement is found by a court to be too broad to permit enforcement to its full extent, then that provision will be enforced to the maximum extent permitted by law. The parties agree that, if legally permissible, the scope of any provision of this Agreement may be modified by a judge in any proceeding to enforce Section 8 of this Agreement, so that the provision can be enforced to the maximum extent permitted by law. If any provision of this Agreement is found to be invalid or unenforceable for any reason, the parties agree that it will not affect the validity and enforceability of the remaining provisions of this Agreement.
		

		
			(d) Injunctive Relief, Damages and Forfeiture. Due to the nature of Executive’s position with the Company, and with full realization that a violation of Section 8 may cause immediate and irreparable injury and damage, which is not readily measurable, and to protect the parties’ interests, the parties understand and agree that in addition to instituting arbitration proceedings pursuant to Section 10 to recover damages resulting from a breach of this Agreement, either party may also seek injunctive relief to enforce this Agreement in a court of competent jurisdiction to cease or prevent any actual or threatened violation of this Agreement. In any action brought pursuant to this Section 8(d), the prevailing party will be entitled to an award of attorney’s fees and costs.
		

		
			(e) Survival. The provisions of this Section 8 survive the termination of this Agreement.
		

		
			(f) Cooperation; No Disparagement. During the Period of Executive’s Post-Termination Obligations, Executive agrees to provide reasonable assistance to the Company (including assistance with litigation matters), upon the Company’s request, concerning the Executive’s previous employment responsibilities and functions with the Company. In consideration for such cooperation, but only if the Executive is not receiving severance pursuant to Section 7, Company will 

		 

		

			10

		

 

compensate Executive for the time Executive spends on such cooperative efforts (at an hourly rate based on Executive’s Base Salary during the year preceding the date of termination) and Company will reimburse Executive for his reasonable out-of-pocket expenses Executive incurs in connection with such cooperative efforts. Additionally, at all times after the Executive’s employment with the Company has terminated, Company (defined for this purpose only as any Company press release and the Board, the CEO and the CEO’s direct reports, and no other employees) and Executive agree to refrain from making any disparaging or derogatory remarks, statements and/or publications regarding the other, its employees or its services.
		

		
			9. General Provisions.
		

		
			(a) Severability. If any provision of this Agreement is held to be illegal, invalid, or unenforceable under any applicable law, then, if legally permissible, such provision will be deemed to be modified to the extent necessary to render it legal, valid and enforceable, and if no modification will make the provision legal, valid and enforceable, then this Agreement will be construed as if not containing the provision held to be invalid, and the rights and obligations of the parties will be construed and enforced accordingly.
		

		
			(b) Assignment by Company. Nothing in this Agreement precludes the Company from consolidating or merging into or with, or transferring all or substantially all of its assets to, another corporation or entity that assumes this Agreement and all obligations and undertakings hereunder. Upon any consolidation, merger or transfer of assets and assumption, the term “Company” means any other corporation or entity, as appropriate, and this Agreement will continue in full force and effect.
		

		
			(c) Entire Agreement. This Agreement and any agreements concerning equity compensation or other benefits, embody the parties’ complete agreement with respect to the subject matter in this Agreement and supersede any prior written or contemporaneous oral, understandings or agreements between the parties that may have related in any way to the subject matter in this Agreement, including but not limited to any offer letter provided to or signed by Executive. This Agreement may be amended only in writing executed by the Company and Executive.
		

		
			(d) Governing Law. Because the Company is a Colorado corporation, and because it is mutually agreed that it is in the best interests of the Company and all of its employees that a uniform body of law consistently interpreted be applied to the employment agreements to which the Company is a party, this Agreement will be deemed entered into by the Company and Executive in Colorado. The law of the State of Colorado will govern the interpretation and application of all of the provisions of this Agreement.
		

		
			

		 

		

			11

		

 

		

		
			(e) Notice. Any notice required or permitted under this Agreement must be in writing and will be deemed to have been given when delivered personally or by overnight courier service or three days after being sent by mail, postage prepaid, at the address indicated below or to such changed address as such person may subsequently give such notice of:
		

			
					
						 

					
					
						 

				
	
					
						if to the Company:

					
					
						Gold Resource Corporation

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Attention: Chief Executive Officer

				
	
					
						 

					
					
						 

				
	
					
						if to Executive:

					
					
						[   ]

				
	
					
						 

					
					
						[   ]

				

		
			(f) Withholding; Release. All of Executive’s compensation under this Agreement will be subject to deduction and withholding authorized or required by applicable law. The Company’s obligation to make any post-termination payments hereunder (other than salary payments and expense reimbursements through a date of termination), is subject to Company receiving from Executive a mutually agreeable release, and compliance by Executive with the covenants set forth in Section 8 above.
		

		
			(g) Non-Waiver; Construction; Counterparts. The failure in any one or more instances of a party to insist upon performance of any of the terms, covenants or conditions of this Agreement, to exercise any right or privilege conferred in this Agreement, or the waiver by that party of any breach of any of the terms, covenants or conditions of this Agreement, will not be construed as a subsequent waiver of any such terms, covenants, conditions, rights or privileges, but the waiver will continue and remain in full force and effect as if no such forbearance or waiver had occurred. No waiver is effective unless it is in writing and signed by an authorized representative of the waiving party. This Agreement will be construed fairly as to both parties and not in favor of, or against, either party, regardless of which party prepared the Agreement. This Agreement may be executed in multiple counterparts, each of which will be deemed to be an original, and all such counterparts will constitute but one instrument.
		

		
			(h) Successors and Assigns. This Agreement is solely for the benefit of the parties and their respective successors, assigns, heirs and legatees. Nothing in this Agreement will be construed to provide any right to any other entity or individual.
		

		
			(i) Indemnification. The Company agrees to indemnify the Executive to the fullest extent provided under the Company’s limited liability company agreement and By-Laws, on the same terms and conditions as indemnification is generally provided to the Company’s officers and directors, in the event that he was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, by reason of the fact that the Executive is or was a director, officer, employee or agent of the Company or any of its affiliates; provided, however, that the Executive is not entitled to indemnification under this Section 8(i) relating to any claims, actions, suits or proceedings arising from his breach of this Agreement.
		

		
			

		 

		

			12

		

 

		

		
			10. Dispute Resolution. Any dispute, controversy, or claim, whether contractual or non-contractual, including without limitation any federal or state statutory claim, common law or tort claim, or claim for attorneys’ fees, between the parties arising directly or indirectly out of or connected with this Agreement and/or the parties’ employment relationship, unless mutually settled by the parties hereto, must be resolved by binding arbitration conducted pursuant to the Federal Arbitration Act and in accordance with the Employment Arbitration Rules of the American Arbitration Association (the “AAA”) in effect at the time. The parties agree that before proceeding to arbitration, they will mediate their dispute(s) before a mutually selected mediator. If the parties are unable to mutually select a mediator within thirty (30) days (or as otherwise agreed), then either party may request the AAA’s assistance in appointing a mediator. Any arbitration will be conducted by an arbitrator mutually selected by the parties. If the parties are unable to mutually select an arbitrator within thirty (30) days (or as otherwise agreed), then either party may request the AAA’s assistance in selecting an arbitrator. All such disputes, controversies or claims will be conducted by a single arbitrator, unless the parties mutually agree that the arbitration will be conducted by a panel of three arbitrators. The arbitration shall be conducted pursuant to Employment Arbitration Rules of the AAA in effect at the time, or as otherwise agreed. The arbitrator(s) may award any relief available in a court of competent jurisdiction. The resolution of the dispute by the arbitrator(s) will be final, binding, nonappealable (except as provided by the Federal Arbitration Act) and fully enforceable by a court of competent jurisdiction pursuant to the Federal Arbitration Act. The arbitration award will be in writing and will include a statement of the reasons for the award. The arbitration will be held at the principal place of employment of the Executive, or as otherwise agreed to by the parties. The Company will initially pay all AAA, mediation, and arbitrator’s fees and costs. The arbitrator(s) may award reasonable attorneys’ fees and/or costs to the prevailing party. The Company and the Executive agree that each may bring claims against the other in an individual capacity only, and not as a class representative or class member in any purported collective, class or representative proceeding. Further, unless both the Company and the Executive agree otherwise, the Arbitrator may not consolidate more than one party’s claims into a single arbitration proceeding and may not otherwise preside over any form of a collective, class or representative proceeding.
		

		
			
		

		
			

		 

		

			13

		

 

		

		
			IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date first above written.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						GOLD RESOURCE CORPORATION, a Colorado corporation

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						EXECUTIVE

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						[Name]

				

		
			 
		

		 

		

			14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}]]