Document:

tckm_ex101.htm

Exhibit 10.1

 

TECKMINE INDUSTRIES, INC.

EMPLOYMENT AGREEMENT

This Employment Agreement (“Agreement”) is made this 9th day of July, 2013 (the “Effective Date”) by and between:

Teckmine Industries, Inc. (hereinafter referred to as the “Corporation”)

OF THE FIRST PART

- and -

Robert E. Hartford, of the City of Palm Harbor, Florida (hereafter referred to as the “Executive”)

OF THE SECOND PART.

Corporation and Executive are individually referred to as a “Party” and collectively as the “Parties”.

Whereas, the Corporation has determined to employ Robert E. Hartford as Chief Financial Officer of the Corporation effective immediately, reporting to the Board of Directors of the Corporation; and

Whereas, the Corporation and the Executive have agreed to enter into this Agreement to formalize in writing the terms and conditions reached between them governing the Executive’s employment and agreement with the Corporation.

Now therefore in consideration of the covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the parties hereto agree as follows:

1.           COMMENCEMENT AND TERM

 The term of the Executive’s employment under this Agreement commences on the Effective Date and shall continue until January 1, 2014 (the “Term”), unless terminated pursuant to this Agreement as herein provided.  This Agreement shall renew thereafter on an annual basis beginning January 1, 2014 to December 31, 2014 and for every successive year thereafter unless the parties invoke the provisions herein provided.  Either Party shall provide written notice to the other Party if the former elects not to renew this Agreement, however, the exercising Party shall provide said written notice on or before sixty (60) days prior to the commencement of the renewal period.

2.           EMPLOYMENT

Subject to the terms and conditions hereof, the Executive shall be employed by the Corporation as Chief Financial Officer effective as of the above date and shall perform such duties and exercise such powers and responsibilities as are typically associated with such title.

The Executive agrees to devote substantial business time and attention to the business and affairs of the Corporation and to discharge the responsibilities assigned to the Executive.  Anything herein to the contrary notwithstanding, nothing shall preclude the Executive from (A) serving, as a director/officer/advisor of non-competing businesses, (B) serving on the boards of directors/ advisors of one or more non-competing business, trade associations and/or charitable organizations, (C) engaging in charitable activities and community affairs, and (D) managing his personal investments and affairs, provided that any or all of the foregoing activities do not interfere with the proper performance of his duties and responsibilities.

  

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3.           REMUNERATION

A. Base Salary.     During the first calendar year of employment, the Corporation shall pay the Executive a base salary (the “Base Salary”) payable monthly in arrears.  The Base Salary for calendar year 2013 shall be based on an amount of $100,000.00 pro-rated from the Effective Date through December 31, 2013.  The Base Salary of $100,000.00 per annum shall be subject to annual review commencing January 1, 2014.

B. Annual Short-Term Incentives.  In January of each year, the Compensation Committee of the Board of Directors (or the full Board of Directors, if there is no Compensation Committee) will determine if a salary adjustment increase is warranted for the Executive and shall establish criteria for the payment of an incentive bonus to the Executive with respect to the then current fiscal year (the "Performance Bonus").   The Performance Bonus will be based on a target comprised of three (3) areas, including 1) profit growth; 2) free cash flow and cash flow management; and 3) a strategic objective (e.g. funding, line of credit, etc) (collectively the “Target”).  If the Executive achieves the Target established by the Board, the Executive will earn a Performance Bonus Target of 25% of Base Salary.  

C. Annual Long-Term Incentives.  If established and defined by the Board of Directors, the Executive shall be eligible to participate in the Corporation’s Performance stock option/share award plan, which shall provide for a potential stock or stock option award each year commensurate with achievement of the Performance Bonus, subject to the vesting and other requirements.   For 2013, the Executive will receive 1 million shares, options, warrants, or share equivalents, to be vested at rate of 50% on December 31, 2013, and 50% on December 31, 2014. All shares, options, warrants, or share equivalents will immediately vest in the event of a significant financial event or a change of control of the Corporation through the occurrence of any transfer of control of the Corporation either directly or indirectly through the appointment of new officers or directors, or through the sale or direct or indirect transfer of a majority of this stock in a single transaction or series of transactions.

D.  Benefits and Prerequisites. The Executive shall be entitled to participate in all of the Corporation’s benefit plans made generally available to the employees and senior executives of the Corporation, in accordance with the terms of such plans.

E.  Vacation.  The Executive shall be entitled to three (3) weeks vacation with pay annually.  Such vacation shall be taken at a time acceptable to the Corporation with regard to its operations.

F.  Expenses.  Consistent with its corporate policies as established from time to time, the Corporation agrees to reimburse the Executive for all expenses reasonably incurred in connection with the performance of his duties upon being provided with proper vouchers or receipts.

G.  Taxes. All payments under this Agreement shall be in US dollars and subject to withholding of such amounts, if any, relating to tax or other payroll deductions as the Corporation may reasonably determine and should withhold pursuant to any applicable law or regulation.  The Executive shall be responsible to pay for all federal, state, provincial and local taxes assessed on any income received from the Executive under this Agreement, which are over and above the amounts that may be deducted and remitted on the Executive’s behalf by the Corporation.

4.           COVENANTS OF THE PARTIES

A. Confidential Information.  The Executive acknowledges that in the course of carrying out, performing and fulfilling his obligations to the Corporation hereunder, the Executive will have access to and will be entrusted with information that would reasonably be considered confidential to the Corporation, the disclosure of which to competitors of the Corporation or to the general public will be highly detrimental to the best interests of the Corporation.  Such information includes, without limitation, trade secrets, know-how, marketing plans and techniques, cost figures, client lists, software, and information relating to employees, suppliers, customers and persons in contractual relationship with the Corporation.  Except as may be required in the course of carrying out his duties hereunder, the Executive covenants and agrees that he will not disclose, for the duration of this Agreement or at any time during the pendency of the non-compete term, any such information to any person, other than to the directors, officers, employees or agents of the Corporation that have a need to know such information, nor shall the Executive use or exploit, directly or indirectly, such information for any purpose other than for the purposes of the Corporation, nor will he disclose nor use for any purpose, other than for those of the Corporation, any other information which he may acquire during his employment with respect to the business and affairs of the Corporation or otherwise.

The Executive acknowledges and agrees that all right, title and interest in and to any information, trade secrets, advances, discoveries, improvements, research materials and data bases made or conceived by the Executive during his employment relating to the business or affairs of the Corporation, shall belong to the Corporation.  Any business opportunities related to the business of the Corporation which become known to the Executive during his employment hereunder must be fully disclosed and made available to the Corporation by the Executive, and the Executive agrees not to take or attempt to take any action if the result would be to divert from the Corporation any opportunity which is within the scope of its business.

B. Non-Compete.  The Executive will not at any time, without the prior written consent of the Corporation, during the Term of this Agreement and for a period of twelve (12) months after the expiration or termination of the Executive’s employment so as Executive is receiving bargained for consideration which is defined as Base Salary plus any annual incentives, either individually or in partnership, jointly or in conjunction with any person or persons, firm, association, syndicate, company or corporation, directly or indirectly engage in, carry on or otherwise have any interest in, advise, or permit the Executive’s name to be used in connection with, any Electronic Cigarette business which is competitive to the Corporation, or which provides the same or substantially similar services as the Corporation; or solicit, interfere with, accept any business from or render any services to anyone whom Executive knows or should have reason to know is a client or a prospective client of the Corporation.

  

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C.  Non-Solicitation.  The Executive shall not solicit, interfere with, accept any business from or render any services to anyone who is a client or a prospective client of the Corporation during the Term of this Agreement or any extensions thereto or who was a client during the twelve (12) months immediately preceding the expiration or termination of this Agreement.  The Executive shall not solicit or offer employment to any person employed or engaged by the Corporation at the conclusion of the Term of this Agreement or any extensions thereto or who was an employee during the twelve (12) month period immediately preceding the expiration or termination of this Agreement.

D. Non-Disparagement.  The Executive shall not disparage the Corporation or any of its affiliates, directors, officers, employees or other representatives in any manner and shall in all respects avoid any negative criticism of the Corporation.

The Executive acknowledges and agrees that in the event of a breach of the covenants, provisions and restrictions in this section, the Corporation’s remedy in the form of monetary damages will be inadequate and that the Corporation shall be, and is hereby, authorized and entitled, in addition to all other rights and remedies available to it, to apply for and obtain from a court of competent jurisdiction interim and permanent injunctive relief and an accounting of all profits and benefits arising out of such breach.

The Parties acknowledge that the restrictions in this section are reasonable in all of the circumstances and the Executive acknowledges that the operation of restrictions contained in this section may constrain his freedom to seek other remunerative employment in the Electronic Cigarette Industry.  If any of the restrictions are determined to be unenforceable as going beyond what is reasonable in the circumstances for the protection of the interests of the Corporation but would be valid, for example, if the scope of their time periods or geographic areas were limited, the parties consent to the court making such modifications as may be required and such restrictions shall apply with such modifications as may be necessary to make them valid and effective.

E. Survival of Covenants.  Each and every provision of these Sections in “Covenants of the Parties” hereunder shall survive the termination or expiration of this Agreement or the Executive’s employment hereunder.

 

5.           TERMINATION OF EMPLOYMENT WITH CAUSE

The Corporation may terminate this Agreement and the Executive’s employment hereunder without payment of any compensation, other than as set forth in this Agreement, either by way of anticipated earnings or damages of any kind, at any time by delivery of a Notice of Termination to the Executive for any of the following reasons

A. the Executive, in carrying out his duties, engages in conduct that constitutes intentional or conscientious misconduct (including but not limited to intentional or reckless breach of fiduciary duties); or

B. the Executive commits an intentional or reckless and material breach of this Agreement or commits an intentional or reckless act of misappropriation or fraud against the Corporation, its property, or otherwise; or

C.  the Executive is convicted of any felonious of act of dishonesty by a Court of competent jurisdiction; or

D. the Executive materially fails to achieve annual mutually agreed performance objectives as established by management and agreed by the Board of Directors.

6.           DIRECTORS AND OFFICERS

If the Executive is a director or officer at the relevant time, the Executive agrees that upon termination or expiration of his employment with the Corporation he will tender his resignation from any position he may hold as an officer or director of the Corporation or any of its affiliated or related companies.

Following the signing of this Agreement, the Corporation shall undertake reasonable efforts to acquire and maintain such directors’ and officers’ liability insurance on commercially reasonable terms for the benefit of the Executive in accordance with corporate policies and as generally provided to the Directors of the Corporation.

The Corporation agrees that, if the Executive is made a party, or is threatened to be made a party, to any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that he is or was a director, officer or employee of the Corporation or is or was serving at the request of the Corporation as a director, officer, member, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, whether or not the basis of such Proceeding is the Executive’s alleged action in an official capacity while serving as a director, officer, member employee or agent, the Executive shall be defended, indemnified and held harmless by the Corporation to the fullest extent legally permitted or authorized by the Corporation’s certificate of incorporation or bylaws against all cost, expense, liability, and loss (including, without limitation, attorney’s fees, judgments, fines, excise taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by the Executive in connection therewith, and such defense, indemnification and held harmlessness shall continue as to the Executive even if he has ceased to be a director, member, employee or agent of the Corporation or other entity and shall inure to the benefit of the Executive’s heirs, executors and administrators.  The Corporation shall advance to the Executive all reasonable costs and expenses incurred by him, whether paid or unpaid, in connection with a Proceeding within twenty (20) days after receipt by the Corporation of a written request for such advance.  Such request shall include an undertaking by the Executive to repay the amount of such advance if it shall ultimately be determined that he is not entitled to be indemnified against such cost and expenses.

  

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7.           ARBITRATION

All matters in difference between the parties in relation to this Agreement, shall be referred to the arbitration of a single arbitrator, if the parties agree upon one, otherwise to three arbitrators, one to be appointed by the Corporation and one to be appointed by the Executive and a third to be chosen by the first two arbitrators named before they enter upon the business of arbitration.  The award and determination of the arbitrator or arbitrators or any of two of three arbitrators shall be binding upon the parties and their respective heirs, executors, administrators and assigns.  Each party shall be responsible for its or his own expenses with respect to the arbitration, which will be held in St. Petersburg, Tampa, or Sarasota, Florida.

8.           MISCELLANEOUS PROVISIONS

A. Headings.   The headings of the Articles and paragraphs herein are inserted for convenience of reference only and shall not affect the meaning or construction hereof.

B. Independent Advice.  The Corporation and the Executive acknowledge and agree that they have each obtained independent legal advice in connection with this Agreement and they further acknowledge and agree that they have read, understand and agree with all of the terms hereof and that they are executing this Agreement voluntarily and in good faith.

C. Entire Agreement.  This Agreement, together with the plans and documents referred to herein, constitutes and expresses the whole agreement of the parties hereto with reference to any of the matters or things herein provided for or herein before discussed or mentioned with reference to such employment for the Executive.  All promises, representation, collateral agreements and undertakings not expressly incorporated in this Agreement are hereby superseded by this Agreement.  This Agreement terminates all prior written or oral agreements and understandings between the Executive and Victory Electronic Cigarettes, Inc. or any affiliated company. Other than for any normally accrued salary for periods worked or reasonable expenses incurred prior to the execution of this Agreement, the Executive hereby acknowledges that no funds or penalties are payable by Victory Electronic Cigarettes, Inc. or any affiliated company as a result of such termination,

 

D. Governing Law.     This Agreement has been entered into in the State of Florida, as such, this Agreement, and the performances due hereunder, shall be construed and governed in accordance with the laws of the Florida, with venue lying exclusively in Hillsborough County, Florida.

E. Severability.  If any provision contained herein is determined to be void or unenforceable in whole or in part, it shall not be deemed to affect or impair the validity of any other provision herein and each such provision is deemed to be separate and distinct.

F. Binding Effect.   This Agreement shall ensure to the benefit of and be binding upon the parties hereto and their respective personal or legal representatives, heirs, executors, administrators, successors and assigns.  Upon the termination or expiration of Executive’s employment, the respective rights and obligations of the parties shall survive such termination or expiration to the extent necessary to carry out the intended preservation of such rights and obligations.

G. Payments.  All payments under this Agreement shall be in US dollars and subject to withholding of such amounts, if any, relating to tax or other payroll deductions as the Corporation may reasonably determine and should withhold pursuant to any applicable law or regulation.

H. Modification.  This Agreement contains the entire understanding and agreement between the parties concerning the subject matter hereof and supersedes all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the parties with respect thereto.  Any modifications or amendments to this Agreement must be in writing and signed by both Parties.

  

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

 

	 	Teckmine Industries, Inc. 	 	 	Robert E. Hartford, Individually	 
	 	 	 	 	 	 
	Date: 	July 9, 2013	 	 	July 9, 2013	 
	 	 	 	 	 	 
	 	
/s/ Brent Willis

	 	 	
/s/ Robert E. Hartford

	 
	Name:	
Brent Willis

	 	 	
Robert E. Hartford

	 
	Title:	
Chairman and Chief Executive Officer 

	 	 	
Chief Financial Officer

	 

 

[Signature Page for Teckmine Industries, Inc. Employment Agreement with Robert Hartford]

5tckm_ex102.htm

Exhibit 10.2

 

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

STOCK OPTION AGREEMENT

 

 

(U.S. PERSONS)

 

This AGREEMENT is entered into as of the _____ day of __________, 2013 (the “Date of Grant”).

 

	BETWEEN:	 
TECKMINE INDUSTRIES, INC., a company incorporated pursuant to the laws of the State of Nevada, with an office at 1880 Airport Drive, Ball Ground, Georgia  30107

	 
	 	 	 
	 	(the “Company”)	 
	 	 	 
	AND:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	(the “Optionee”)	 
	 	 	 
	WHEREAS:	 	 
	 	 	 
	A. 	The Company’s board of directors (the “Board”) has approved and adopted a 2013 Stock Option Plan (the “Plan”), whereby the Board is authorized to grant stock options to purchase shares of common stock of the Company to the directors, officers, employees and consultants of the Company and its subsidiaries;
	 	 	 
	B.	The Optionee is a director, officer, employee or consultant of the Company or subsidiary of the Company; and
	 	 	 
	C.	The Company wishes to grant stock options to purchase a total of __________ Optioned Shares (as defined herein) to the Optionee, as follows:

 

	  	
 Incentive Stock Options

	
X

	
 Non Qualified Stock Options

 

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

  

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1.  

	
DEFINITIONS

 

1.1 In this Agreement, the following terms shall have the following meanings:

 

	
(a)  

	
“Common Stock” means the shares of common stock of the Company;

 

	
(b)  

	
“Exercise Price” means $_____ per share;

 

	
(c)  

	
“Expiry Date” means                                                                , 20__;

 

	
(d)  

	
“Notice of Exercise” means a notice in writing addressed to the Company at its address first recited hereto (or such other address of which the Company may from time to time notify the Optionee in writing), substantially in the form attached as Schedule “B” hereto, which notice shall specify therein the number of Optioned Shares in respect of which the Options are being exercised;

 

	
(e)  

	
“Options” means the irrevocable right and option to purchase, from time to time, all, or any part of the Optioned Shares granted to the Optionee by the Company pursuant to Section 2.1 of this Agreement;

 

	
(f)  

	
“Optioned Shares” means the shares of Common Stock that are issued pursuant to the exercise of the Options;

 

	
(g)  

	
“Securities” means, collectively, the Options and the Optioned Shares;

 

	
(h)  

	
“Shareholders” means holders of record of the shares of Common Stock;

 

	
(i)  

	
“U.S. Person” shall have the meaning ascribed thereto in Regulation S under the 1933 Act, and for the purpose of the Agreement includes any person in the United States; and

 

	
(j)  

	
“Vested Options” means the Options that have vested in accordance with Section 2.2 of this Agreement.

 

1.2 Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Plan.

 

	
2.  

	
THE OPTIONS

 

2.1 The Company hereby grants to the Optionee, on the terms and conditions set out in this Agreement and in the Plan, Options to purchase a total of __________ Optioned Shares at the Exercise Price.

 

2.2 The Options will vest in accordance with Schedule “A” to this Agreement.  The Options may be exercised immediately after vesting.

 

2.3 The Options shall, at 5:00 p.m. (Pacific time) on the Expiry Date, expire and be of no further force or effect whatsoever.

 

2.4 The Company shall not be obligated to cause the issuance, transfer or delivery of a certificate or certificates representing Optioned Shares to the Optionee, until provision has been made by the Optionee, to the satisfaction of the Company, for the payment of the aggregate Exercise Price for all Optioned Shares for which the Options shall have been exercised, and for satisfaction of any tax withholding obligations associated with such exercise.

 

2.5 The Optionee shall have no rights whatsoever as a shareholder in respect of any of the Optioned Shares (including any right to receive dividends or other distribution therefrom or thereon) except in respect of which the Options have been properly exercised in accordance with the terms of this Agreement.

 

  

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2.6 The Options will terminate in accordance with the provisions of the Plan.

 

2.7 Subject to the provisions of this Agreement and the Plan and subject to compliance with any applicable securities laws, the Options shall be exercisable, in full or in part, at any time after vesting, until termination; provided, however, that if the Optionee is subject to the reporting and liability provisions of Section 16 of the Securities Exchange Act of 1934, as amended, with respect to the Common Stock, the Optionee shall be precluded from selling, transferring or otherwise disposing of any Common Stock underlying any of the Options during the six months immediately following the grant of the Options.  If less than all of the shares included in the vested portion of any Options are purchased, the remainder may be purchased at any subsequent time prior to the Expiry Date.  Only whole shares may be issued pursuant to the exercise of any Options, and to the extent that any Option covers less than one (1) share, it is not exercisable.

 

2.8 Each exercise of the Options shall be by means of delivery of a Notice of Exercise (which may be in the form attached hereto as Schedule “B”) to the President of the Company at its principal executive office, specifying the number of Optioned Shares to be purchased and accompanied by payment in cash or by certified check or cashier’s check in the amount of the full Exercise Price for the Common Stock to be purchased.  In addition to payment in cash or by certified check or cashier’s check and if agreed to in advance by the Company, the Optionee or transferee of the Options may pay for all or any portion of the aggregate Exercise Price by complying with one or more of the following alternatives:

 

	
(a)  

	
by delivering to the Company shares of Common Stock previously held by the Optionee, or by the Company withholding shares of Common Stock otherwise deliverable pursuant to the exercise of the Options, which shares of Common Stock received or withheld shall have a fair market value at the date of exercise (as determined by the Board) equal to the aggregate exercise price to be paid by the Optionee upon such exercise; or

 

	
(b)  

	
by complying with any other payment mechanism approved by the Board at the time of exercise.

 

2.9 It is a condition precedent to the issuance of Optioned Shares that the Optionee execute and/or deliver to the Company all documents and withholding taxes required in accordance with applicable laws.

 

2.10 Nothing in this Agreement shall obligate the Optionee to purchase any Optioned Shares except those Optioned Shares in respect of which the Optionee shall have exercised the Options in the manner provided in this Agreement or the Plan.

 

2.11 Reference is made to the Plan for particulars of the rights and obligations of the Optionee and the Company in respect of:

 

	
(a)  

	
the terms and conditions on which the Options are granted; and,

 

	
(b)  

	
a consolidation or subdivision of the Company’s share capital or an amalgamation or merger;

 

all to the same effect as if the provisions of the Plan were set out in this Agreement and to all of which the Optionee assents.

 

2.12 By accepting the Options, the Optionee represents and agrees that none of the Optioned Shares purchased upon exercise of the Options will be distributed in violation of applicable federal and state laws and regulations.  The Optionee further represents and agrees to provide the Company with any other document reasonably requested by the Company or the Company’s Counsel.

 

	
3.  

	
DOCUMENTS REQUIRED FROM OPTIONEE

 

3.1 The Optionee must complete, sign and return an executed copy of this Agreement to the Company.

 

3.2 The Optionee shall complete, sign and return to the Company as soon as possible, on request by the Company, any documents, questionnaires, notices and undertakings as may be required by regulatory authorities, and applicable law.

 

	
4.  

	
SUBJECT TO STOCK OPTION PLAN

 

The terms of the Options will be subject to the Plan, as may from time to time be amended, and any inconsistencies between this Agreement and the Plan, as the same may be from time to time amended, shall be governed by the provisions of the Plan.  A copy of the Plan will be delivered to the Optionee, and will be available for inspection at the principal offices of the Company.

 

  

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5.  

	
ACKNOWLEDGEMENTS OF THE OPTIONEE

 

5.1 The Optionee acknowledges and agrees that:

 

	
(a)  

	
the Securities have not been registered under the 1933 Act or under any state securities or “blue sky” laws of any state of the United States, and are being offered only in a transaction not involving any public offering within the meaning of the 1933 Act, and, unless so registered, may not be offered or sold in the United States or to U.S. Persons, except pursuant to an effective registration statement under the 1933 Act, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act, and in each case only in accordance with applicable state securities laws;

 

	
(b)  

	
the Company will refuse to register any transfer of the Securities not made in accordance with the provisions of Regulation S, pursuant to an effective registration statement under the 1933 Act or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act;

 

	
(c)  

	
the decision to execute this Agreement and acquire the Securities hereunder has not been based upon any oral or written representation as to fact or otherwise made by or on behalf of the Company and such decision is based solely upon a review of publicly available information regarding the Company that is available on the website of the United States Securities and Exchange Commission (the “SEC”) at www.sec.gov (the “Company Information”);

 

	
(d)  

	
there are risks associated with an investment in the Securities;

 

	
(e)  

	
the Optionee and the Optionee’s advisor(s) (if applicable) have had a reasonable opportunity to ask questions of and receive answers from the Company in connection with the distribution of the Securities hereunder, and to obtain additional information, to the extent possessed or obtainable without unreasonable effort or expense, necessary to verify the accuracy of the information about the Company;

 

	
(f)  

	
the books and records of the Company were available upon reasonable notice for inspection, subject to certain confidentiality restrictions, by the Optionee during reasonable business hours at its principal place of business, and all documents, records and books in connection with the distribution of the Securities hereunder have been made available for inspection by the Optionee, the Optionee’s attorney and/or advisor(s) (if applicable);

 

	
(g)  

	
the Company and others are entitled to rely upon the truth and accuracy of the acknowledgements, representations, warranties, statements, covenants and agreements contained in this Agreement and agrees that if any of such acknowledgements, representations, warranties, statements, covenants, and agreements are no longer accurate or have been breached, the Optionee shall promptly notify the Company, and the Optionee will hold harmless the Company from any loss or damage it may suffer as a result of the Optionee’s failure to correctly complete this Agreement;

 

	
(h)  

	
the Optionee has been advised to consult its own legal, tax and other advisors with respect to the merits and risks regarding the exercise of the Options and the issuance of the Optioned Shares and with respect to applicable resale restrictions and it is solely responsible (and the Company is in not any way responsible) for compliance with applicable resale restrictions;

 

	
(i)  

	
the Optionee will indemnify and hold harmless the Company and, where applicable, its directors, officers, employees, agents, advisors and shareholders, from and against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all fees, costs and expenses whatsoever reasonably incurred in investigating, preparing or defending against any claim, lawsuit, administrative proceeding or investigation whether commenced or threatened) arising out of or based upon any representation or warranty of the Optionee contained herein or in any document furnished by the Optionee to the Company in connection herewith being untrue in any material respect or any breach or failure by the Optionee to comply with any covenant or agreement made by the Optionee to the Company in connection therewith;

 

	
(j)  

	
the Securities are not listed on any stock exchange or automated dealer quotation system and no representation has been made to the Optionee that any of the Securities will become listed on any stock exchange or automated dealer quotation system, except that currently certain market makers make market in the shares of the Company’s common stock on the OTC Bulletin Board;

 

	
(k)  

	
neither the SEC nor any other securities commission or similar regulatory authority has reviewed or passed on the merits of the Securities;

 

	
(l)  

	
no documents in connection with this Agreement have been reviewed by the SEC or any state securities administrators;

 

	
(m)  

	
there is no government or other insurance covering any of the Securities; and

 

	
(n)  

	
this Agreement is not enforceable by the Optionee unless it has been accepted by the Company.

 

  

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6.  

	
REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE OPTIONEE

 

The Optionee hereby represents and warrants to and covenants with the Company (which representations, warranties and covenants shall survive the closing) that:

 

	
(a)  

	
the Optionee is a director or executive officer of the Company;

 

	
(b)  

	
if the Optionee is an employee or consultant of the Company or subsidiary of the Company, the Optionee is a bona fide employee or consultant of the Company or subsidiary of the Company;

 

	
(c)  

	
the Optionee is a U.S. Person;

 

	
(d)  

	
the Optionee has received and carefully read this Agreement and the Company Information;

 

	
(e)  

	
the Optionee has duly executed and delivered this Agreement and it constitutes a valid and binding agreement of the Optionee enforceable against the Optionee in accordance with its terms;

 

	
(f)  

	
the Optionee has the legal capacity and competence to enter into and execute this Agreement and to take all actions required pursuant hereto and, if the Optionee is a corporation, it is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution and performance of this Agreement on behalf of the Optionee;

 

	
(g)  

	
the Optionee:

 

	
(i)  

	
has adequate net worth and means of providing for its current financial needs and possible personal contingencies,

 

	
(ii)  

	
has no need for liquidity in this investment, and

 

	
(iii)  

	
is able to bear the economic risks of an investment in the Securities for an indefinite period of time, and can afford the complete loss of such investment;

 

	
(h)  

	
the Optionee has the requisite knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the investment in the Securities and the Company, and the Optionee is providing evidence of such knowledge and experience in these matters through the information requested in this Agreement;

 

	
(i)  

	
the Optionee is aware that an investment in the Company is speculative and involves certain risks, including the possible loss of the investment, and the Optionee has carefully read and considered the matters set forth under the caption “Risk Factors” appearing in the Company’s various disclosure documents, filed with the SEC;

 

	
(j)  

	
the entering into of this Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, or, if applicable, the constating documents of, the Optionee, or of any agreement, written or oral, to which the Optionee may be a party or by which the Optionee is or may be bound;

 

	
(k)  

	
the Optionee is purchasing the Securities for its own account for investment purposes only and not for the account of any other person and not for distribution, assignment or resale to others, and no other person has a direct or indirect beneficial interest is such Securities, and the Optionee has not subdivided his interest in the Securities with any other person;

 

	
(l)  

	
the Optionee is not an underwriter of, or dealer in, the shares of the Company’s common stock, nor is the Optionee participating, pursuant to a contractual agreement or otherwise, in the distribution of the Securities;

 

	
(m)  

	
the Optionee understands and agrees that the Company and others will rely upon the truth and accuracy of the acknowledgements, representations, statements, and agreements contained in this Agreement, and agrees that if any of such acknowledgements, representations, statements, and agreements are no longer accurate or have been breached, the Optionee shall promptly notify the Company;

 

	
(n)  

	
the Optionee has made an independent examination and investigation of an investment in the Securities and the Company and has depended on the advice of its legal and financial advisors and agrees that the Company will not be responsible in anyway whatsoever for the Optionee’s decision to acquire the Securities;

 

  

5

  

	
(o)  

	
if the Optionee is acquiring the Securities as a fiduciary or agent for one or more investor accounts, the Optionee has sole investment discretion with respect to each such account, and the Optionee has full power to make the foregoing acknowledgements, representations and agreements on behalf of such account;

 

	
(p)  

	
the Optionee is not aware of any advertisement of any of the Securities and is not acquiring the Securities as a result of any form of general solicitation or general advertising including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising; and,

 

	
(q)  

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

 

	
(i)  

	
that any person will resell or repurchase any of the Securities,

 

	
(ii)  

	
that any person will refund the purchase price of any of the Securities,

 

	
(iii)  

	
as to the future price or value of any of the Securities, or

 

	
(iv)  

	
that any of the Securities will be listed and posted for trading on any stock exchange or automated dealer quotation system or that application has been made to list and post any of the Securities of the Company on any stock exchange or automated dealer quotation system, except that currently certain market makers make market in the shares of the Company’s common stock on the OTC Bulletin Board.

 

	
7.  

	
ACKNOWLEDGEMENT AND WAIVER

 

The Optionee has acknowledged that the decision to purchase the Securities was solely made on the basis of publicly available information contained in the Company Information.  The Optionee hereby waives, to the fullest extent permitted by law, any rights of withdrawal, rescission or compensation for damages to which the Optionee might be entitled in connection with the distribution of any of the Securities.

 

	
8.  

	
PROFESSIONAL ADVICE

 

The acceptance of the Options and the sale of Common Stock issued pursuant to the exercise of Options may have consequences under federal and state tax and securities laws which may vary depending upon the individual circumstances of the Optionee.  Accordingly, the Optionee acknowledges that he or she has been advised to consult his or her personal legal and tax advisor in connection with this Agreement and his or her dealings with respect to Options.  Without limiting other matters to be considered with the assistance of the Optionee’s professional advisors, the Optionee should consider: (a) whether upon the exercise of Options, the Optionee will file an election with the Internal Revenue Service pursuant to Section 83(b) of the Code and the implications of alternative minimum tax pursuant to the Code; (b) the merits and risks of an investment in the underlying Optioned Shares; and (c) any resale restrictions that might apply under applicable securities laws.

 

	
9.  

	
LEGENDING OF SUBJECT SECURITIES

 

9.1 The Optionee hereby acknowledges that that upon the issuance thereof, and until such time as the same is no longer required under the applicable securities laws and regulations, the certificates representing any of the Securities will bear a legend in substantially the following form:

 

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

9.2 The Optionee hereby acknowledges and agrees to the Company making a notation on its records or giving instructions to the registrar and transfer agent of the Company in order to implement the restrictions on transfer set forth and described in this Agreement.

 

	
10.  

	
RESALE RESTRICTIONS

 

Resale restrictions may apply.  Any resale of the Optioned Shares received upon exercising any Options will be subject to resale restrictions contained in the securities legislation applicable to the Optionee.  The Optionee acknowledges and agrees that the Optionee is solely responsible (and the Company is not in any way responsible) for compliance with applicable resale restrictions.

 

  

6

  

	
11.  

	
NO EMPLOYMENT RELATIONSHIP

 

The grant of an Option shall in no way constitute any form of agreement or understanding binding on the Company or any related company, express or implied, that the Company or any related company will employ or contract with an Optionee, for any length of time, nor shall it interfere in any way with the Company’s or, where applicable, a related company’s right to terminate Optionee’s employment at any time, which right is hereby reserved.

 

	
12.  

	
GOVERNING LAW

 

This Agreement is governed by the laws of the State of Nevada.

 

	
13.  

	
COSTS

 

The Optionee acknowledges and agrees that all costs and expenses incurred by the Optionee (including any fees and disbursements of any special counsel retained by the Optionee) relating to the acquisition of the Securities shall be borne by the Optionee.

 

	
14.  

	
SURVIVAL

 

This Agreement, including without limitation the representations, warranties and covenants contained herein, shall survive and continue in full force and effect and be binding upon the parties hereto notwithstanding the completion of the purchase of the shares underlying the Options by the Optionee pursuant hereto.

 

	
15.  

	
ASSIGNMENT

 

This Agreement is not transferable or assignable.

 

	
16.  

	
CURRENCY

 

Unless explicitly stated otherwise, all funds in this Agreement are stated in United States dollars.

 

	
17.  

	
SEVERABILITY

 

The invalidity or unenforceability of any particular provision of this Agreement shall not affect or limit the validity or enforceability of the remaining provisions of this Agreement.

 

	
18.  

	
COUNTERPARTS AND ELECTRONIC MEANS

 

This Agreement may be executed in several counterparts, each of which will be deemed to be an original and all of which will together constitute one and the same instrument.  Delivery of an executed copy of this Agreement by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of this Agreement as of the date first above written.

 

	
19.  

	
ENTIRE AGREEMENT

 

This Agreement is the only agreement between the Optionee and the Company with respect to the Options, and this Agreement and the Plan, once approved, supersede all prior and contemporaneous oral and written statements and representations and contain the entire agreement between the parties with respect to the Options.

 

  

7

  

IN WITNESS WHEREOF the parties hereto have duly executed this Agreement as of the date first above written.

 

TECKMINE INDUSTRIES, INC.

 

	Per: 	 	 
	 	Authorized Signatory	 

 

 

 

	

WITNESSED BY:

	)	 	 
	 	)	 	 
	 	)	 	 
	 	)	 	 
	Name	)	 	 
	 	)	

OPTIONEE

	 
	Address	)	 	 
	 	)	 	 
	 	)	 	 
	 	)	 	 
	Occupation	)	 	 

 

  

8

  

 

SCHEDULE “A”

 

VESTING SCHEDULE

 

 

  

9

  

 

SCHEDULE “B”

 

NOTICE OF EXERCISE

 

TO:          Teckmine Industries, Inc.

1880 Airport Drive

Ball Ground, Georgia  30107

 

This Notice of Exercise shall constitute a proper Notice of Exercise pursuant to section 2.8 of the Stock Option Agreement dated _______________, 20__ (the “Agreement”), between Teckmine Industries, Inc. (the “Company”) and the undersigned.  The undersigned hereby elects to exercise the Optionee’s options to purchase ____________________ shares of the common stock of the Company at a price of US $_____ per share, for aggregate consideration of US $____________, on the terms and conditions set forth in the Agreement.  Such aggregate consideration, in the form specified in section 2.8 of the Agreement, accompanies this notice.

 

The Optionee hereby represents and warrants to the Company that all representations and warranties set out in the Agreement are true as of the date of the exercise of the options under the Agreement.

 

The Optionee hereby further represents and warrants to the Company that the shares are being purchased only for investment and without intention to sell or distribute such shares.

 

The Optionee hereby directs the Company to issue, register and deliver the certificates representing the shares as follows:

 

	
Registration Information:

	  	
Delivery Instructions:

	  	  	  
	
Name to appear on certificates

	  	
Name

	  	  	  
	
Address

	  	
Address

	  	  	  
	
City, State, and Zip Code

	  	  
	  	  	  
	  	  	
Telephone Number

 

DATED at _____________________________, the _______ day of______________, _______.

	
X

	
Signature

	  
	
(Name and, if applicable, Office)

	  
	
(Address)

	  
	
(City, State, and Zip Code)

	  
	
Fax Number or E-mail Address

	  
	
Social Security/Insurance No.:

 

10

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