Document:

Exhibit 10.1

	
  

  	
  CUBIC

  CORPORATION

  

 

 

October 4, 2006

 

Richard Efland

9265 Cedar Trails Lane

Valley Center, CA 92082

Re: Retention Bonus Agreement

Dear Dick:

We are pleased to be able
to provide you with the following retention bonus agreement (“the Agreement”)
as an incentive to remain as President and CEO of Cubic Transportation Systems,
Inc. (“the Company”) during a critical period.

The following are the
terms of our Agreement:

1. One
Retention Bonus Payment: The Company will pay a lump sum retention
bonus of three hundred thousand dollars ($300,000) (the “Bonus”) to you
provided that you remain actively employed by the Company as its President and
CEO through and including December 31, 2007 and meet the eligibility requirements
set forth below. The payment will be made on or before January 30, 2008 in a
lump sum and is subject to regular withholding for federal and state taxes and
any other authorized deductions. Your eligibility for the Cubic Corporation
Management Incentive Plan will continue in 2006 and 2007 and will not be
affected by payment of the Bonus.

2. Moving,
Storage of Household Goods and Home Rental Expenses: Upon the sale
of your current residence, the Company will provide you with a lump sum payment
to cover reasonable moving expenses, storage of household goods (up to 30 days)
and rental housing costs through December 31, 2007, in close proximity to the
Company. The amount of this lump sum payment will be determined at the
discretion of Bill Boyle and Bernie Kulchin and is subject to regular
withholding for federal and state taxes or any other authorized deductions.

3. Continuing Eligibility Requirement:

a.                 The
Company shall have no liability to pay you any amounts stated above which are
unpaid

as of the date (if any) prior to December 31, 2007 which you voluntarily
resign.

b.                In
the event that you die or become disabled, the amount of your Bonus will be
determined

by the Executive Compensation Committee of the Cubic Corporation Board of
Directors.

9333 Balboa Ave., Sara Diego, CA 92123 • Box 85587, San Diego, CA
92186-5587

858-277-6780 • Fax 858-277-1878

www.cubic.com • American Stock Exchange Symbol: C1J13

 

c.                 In the event that your position is eliminated due to a
reduction in force or reorganization, you will receive the full amount of the
Bonus. The Bonus shall be in addition to any benefits for which you may be
eligible in accordance with Cubic’s Severance Policy.

d.                The
Company retains the right to reduce or eliminate the Bonus if your personal performance
level is unsatisfactory. Unsatisfactory personal performance is determined in
the sole discretion of the Cubic Corporation Board of Directors, and may
include such factors as misconduct, poor performance, failure to adhere to
Company policies and procedures, or other relevant factors. You will be allowed
reasonable opportunity to state your position to the Cubic Board and your total
performance during the time you served as President and CEO will be considered
in the Board’s assessment.

4. No Employment Contract: This
Agreement does not change the nature of your employment relationship with the
Company. You are still employed on an at-will basis.

5. Period of this Agreement: This
Agreement will commence as of October 4, 2006, or such later date that may be
designated by Company management, and will end on December 31, 2007.

6. General Provisions:

a.                 This
is the sole and exclusive agreement with you concerning the payment of the
Bonus and other retention benefits. No one else can make promises or commitments
to you about such payments either written or oral and no one except the
Corporate Vice President of Human Resources can change the terms of this
Agreement.

b.                You
may not assign your obligation to perform services for the Company under this
Agreement.

c.                 This
Agreement is made and shall in all respects be interpreted, enforced and
governed by and under the laws of the United States including the Federal
Arbitration Act, and as appropriate, the laws of the State of California. Any
dispute arising out of this Agreement including its meaning or interpretation
will be resolved solely by arbitration before an experienced employment
arbitrator selected in accordance with the model employment arbitration
procedures of the American Arbitration Association. The location of the
arbitration will be in San Diego. The provisions of this paragraph are
exclusive for all purposes and applicable to any and all disputes between you
and the Company concerning this Agreement.

7. Confidentiality:
You agree to hold in confidence, for the benefit of the Company, all
information, knowledge and data of the Company which you may acquire, learn,
obtain or develop during your continuing employment by the Company. Further,
you will not, during the term of this Agreement or at any time thereafter,
directly or indirectly use, communicate or divulge for your own benefit or for
the benefit of another any such information, knowledge or data other than as
required by the Company. You make the same commitments with respect to the secret,
confidential or proprietary information, knowledge and data of vendors and
others with whom the Company has a business relationship or to whom the company
or its affiliates owe a duty of confidentiality, other than as required by the
Company. Company Information will be considered and kept as the private,
proprietary and confidential information of the Company except within the
Company as required to perform services, and may not be divulged without the
express written authorization of the Company. You further agree that you will
not disclose the terms of this Agreement other than to financial dependents,
attorneys or tax advisors.

 2
 

 

We look forward to your continuing contributions to
the Company. Please acknowledge by signing below that you have read, understood
and agree to the terms of this Agreement.

Sincerely,

CUBIC CORPORATION

	
  /s/ B.A. Kulchin                                                            

  	
   

  	
   

  	
  /s/ Walter J. Zable

  
	
  By: Bernie Kulchin

  	
  By: Walter J. Zable

  
	
  Vice-President, Corporate Human Resources

  	
  Chairman

  

 

I have read, understand and agree to the terms in this
Agreement.

	
  /s/ Richard A. Efland                                                        

  	
   

  	
   

  	
  October 3, 2006

  
	
  Richard A. Efland

  	
  Date

  

 

 

 3Exhibit 10.1

EMPLOYMENT AGREEMENT

FREDERICK H.
EARNEST

THIS AGREEMENT is entered
into to be effective as of September 22, 2006 (“EFFECTIVE DATE”) among Vista
Gold Corp. (“VGC”) and its wholly owned subsidiary Vista Gold US Inc., a
Delaware Corporation, whose address, along with that of VGC is 7961 Shaffer
Parkway, Suite 5, Littleton CO 80127 (“Employer”), and Frederick Earnest (“Employee”).

1.                                       Employment.  Employer hereby employs Employee and Employee
hereby accepts employment by Employer upon the terms and conditions hereinafter
set forth.

2.                                       Term.  The term of this Agreement shall begin on the
Effective Date and shall continue until December 31, 2008 or until terminated
in accordance with the terms contained herein. After December 31, 2008, the
Agreement will be renewed annually, unless in the opinion of the Board of
Directors (the Board) of VGC, the agreement is not in the best interests of VGC
or the Employer. In this case, a new agreement will be executed with the Employee.
The new agreement will be identical in content to this Agreement, except the
salary continuation period will be three months or such other period that the Board
believes is normal under the then prevailing industry practices, the Employee’s
longevity and position.

3.                                     Compensation.

(a)                                  For
services rendered by Employee under this Agreement during calendar year 2006,
Employer shall pay Employee salary, on an annualized basis, commencing
September 22, 2006, of $155,000. 
Subsequent years’ compensation for Employee shall be determined by Employer
based upon Employee’s performance, but in no event shall Employee’s annualized
compensation be reduced below $155,000.

(b)                                 In
addition to the foregoing, Employee shall be entitled to receive other
compensation and fringe benefits, to be paid by Employer, including four (4)
weeks paid vacation per year; health, dental, life, disability and accidental
death and dismemberment insurance, but that all such insurance shall be
comparable to insurance provided to other employees of Employer; a 401(k) benefit
plan on the same basis as made available to other United States employees of
Employer; dues for professional organizations of which Employee is a member; and
a performance bonus in accordance with the Employer’s executive incentive plan.
The amount of the performance bonus, if any, to be paid by the Employer will be
at the discretion of the Board and in no circumstances shall the Employee be
entitled to claim any right or entitlement to a bonus regardless of his 

 

 

performance or the performance of VGC or the Employer during the Term.

(d)                                 VGC
hereby grants to the Employee, subject to the terms and conditions set forth in
the VGC Stock Option Plan (as in effect on the date hereof) and this Agreement,
an irrevocable right and option (the “Option”) to purchase 100,000 Common
Shares of VGC at the price of USD $9.29 per Share.  Fifty percent of the Options granted will
vest on the date of the Board resolution approving the grant (September 22,
2006) and fifty percent will vest on the first anniversary of this date. These
Options will be effective until the expiry date of the close of business on the
30th day of September, 2011 (the “Expiry Date”).

4.                                   Duties.
Employee shall, from the effective date, assume the role of Senior Vice
President of Project Development for VGC and the Employer.  As Senior Vice President of Project
Development, Employee shall, subject to the direction and control of the Board
and President & CEO, devote his whole working time and attention and all of
his skills to the business of VGC and of Employer and shall perform all such
acts as are necessary to properly and efficiently carry out the duties
reasonably expected of a Senior Vice President. 
During the Term, Employee shall at all times act in the best interests
of VGC and Employer and shall not, without the prior consent in writing of the
Board and President & CEO, enter into the services of or be employed in any
capacity or for any purpose whatsoever by any firm, person or corporation and
shall not be engaged as owner, operator, financier, advisor, manager, salesman
or otherwise in any business, enterprise or undertaking other than pursuant to
this Agreement. This clause is subject to the provisions of Paragraph 6(b)
below regarding “Fundamental Change”.

5.                                     Board.  If requested by the Board, Employee shall
also act as an officer of or the nominee of VGC on the board of directors of
any other companies in which VGC has an interest.  On termination of Employee’s employment with
the Employer, for any reason, Employee shall resign as a director (if then
applicable) and officer of VGC and Employer and each such other company in
which Employee has been appointed by VGC as an officer or as the nominee of VGC
on the board of directors and Employee agrees to sign all documents and take
all steps as are necessary to effect such resignations.

6.             Termination and Severance Pay.

(a)                                  The
phrase “just cause” as used in this Agreement shall include, but not be limited
to, failure to perform Employee’s duties hereunder in a manner reasonably
satisfactory to the Board (it being understood that the Employee shall be
provided with not less that sixty (60) days’ notice and opportunity to cure any
such failures before they are deemed “just cause”), death, permanent
disability, breach of any fiduciary duty to VGC and 

 

 

Employer, or conviction in a criminal proceeding (excepting traffic
violations or similar misdemeanors).

(b)                                 The
phrase “Fundamental Change” as used in this Agreement means:

(i)                                     an
adverse change in any of the duties, powers, rights, discretion, salary or
benefits of Employee as they exist at the Effective date;

(ii)                                  a
diminution of the title of Employee as it exists at the Effective Date;

(iii)                               a
change in the metropolitan area at which the Employee is regularly required to
carry out the terms of his employment with 
VGC and the Employer at the Effective Date.

(c)                                  Employee
may terminate this Agreement upon 30 days written notice to Employer prior to
such date of termination.

(d)                                 Subject
to the provisions of Paragraph 6(e) below, Employer may terminate this
Agreement for just cause, as defined in Paragraph 6(a) above, immediately upon
written notice to Employee (except in instances in which the cure period
applies, in which event the notice may not be given until the end of the cure
period), with the result that all benefits to Employee under this Agreement
shall cease immediately upon Employer’s issuance of that notice.

(e)                                  In
the event that a Fundamental Change occurs in Employee’s employment other than
for just cause or if Employee’s employment under this Agreement is terminated
other than for just cause, Employee shall be entitled to:

(i)                                     continuation
of his salary (less the usual statutory and other deductions) for six months
after such Fundamental Change or termination (“Continuation Period”);

(ii)                                  for
vacation and retirement savings plan purposes, the Continuation Period will
count as regular employment;

(iii)                               subject
to the approval of VGC’s Compensation Committee and the requirements of VGC’s
stock option plan, for the purposes of any stock options Employee holds, all
options not yet vested shall be deemed vested as of the date of termination of
Employee’s employment, and for purposes of exercise of such options, Employee’s
employment shall be deemed to be terminated at the end of the Continuation
Period, unless he has elected the Retirement Option, described in Paragraph
6(g) below, in which 

 

 

event Employee’s employment terminates upon the
termination date;

(iv)                              Employee
is eligible for the pro rata portion of the annual performance bonus, if any,
to which he would have been entitled to the date of termination.  This bonus amount, if any (less any statutory
holdback), will be payable when awarded by Employer in the ordinary course of
its business, notwithstanding the date of Employee’s termination;

(v)                                 all
of Employee’s benefits paid by Employer, as described in Paragraph 3(b), will
be continued during the Continuation Period, to the extent that Employer
maintains such benefits for its other employees during the Continuation Period;
provided, however, that if Employee becomes employed by another employer prior
to the expiry of the Continuation Period, Employee’s benefits will be
discontinued by Employer upon Employee’s eligibility for benefits with his new
employer; and

(vi)                              if
long term disability coverage is available after termination, Employee may
elect to continue that insurance at his expense; however, Employee acknowledges
that Employer’s insurer may consider that there has been a material change in
Employee’s employment status that could increase the amount of the premiums for
same.  If Employer is paying the premiums
for Employee’s disability coverage at the time of Employee’s termination,
Employer shall continue to pay during the Continuation Period the amount of
premiums it was paying at the time of termination, it being understood and
agreed that any subsequent increased premium amount shall be at the sole cost
of Employee.

(f)                                    In
the event Employee’s employment hereunder is terminated at any time prior to
the termination of this Agreement by his voluntary resignation or for just
cause by Employer, Employee shall be entitled to a pro rata portion of any
bonus to which he otherwise would have been entitled to receive that year, but
Employee shall not be entitled to any severance pay or other benefits after
such resignation or termination, except such as may be payable to him pursuant
to the terms of any profit sharing plan of Employer then in effect (there being
no such plan in effect as of the Effective Date).

(g)                                 In
the event of a Fundamental Change as provided in Paragraph 6(e) or a
termination other than for just cause, Employee may elect the “Retirement
Option”, by so advising Employer in writing within thirty (30) days after the
Fundamental  Change occurs.  If Employee so elects, he will receive his
salary, vacation pay, and the reasonable present value of Employee’s 

 

 

other Employer-paid benefits for the Continuation Period (less
statutory holdbacks) in a lump sum retiring allowance following termination. If
the Employee wishes to make contributions to the 401-k plan, if permitted by
the plan, he may do so and the Employer will match the contributions according
to the Employers benefit plan.

(h)                                 In
the event of Employee’s death after commencement but before expiry of the
Continuation Period, any unpaid salary, vacation, bonus or other amount that
would have been payable under this Agreement during the remainder of the
Continuation Period will be paid as a lump sum to Employee’s estate, and for
the purposes of all survivor benefits it will be deemed that Employee died
while employed by Employer so that Employee’s designed beneficiaries or
Employee’s estate receive such survivor benefits.

7.                                       Lawsuits.  Employee shall promptly notify the Board of
any suit, proceeding or other action commenced or taken against VGC and/or
Employer or of any facts or circumstances of which Employee is aware which may
reasonably form the basis of any suit, proceeding or action against Employer.

8.                                 Board
Information.  Employee shall keep the
Board fully informed of all matters concerning VGC and Employer and shall
provide the Board with status reports concerning VGC at such times, in such
manner and containing such information as the Board may request from time to
time.

9.                                   Compliance
with Laws.  To carry out his
obligations hereunder, Employee shall make reasonable efforts to familiarize
himself with and shall cause VGC and Employer to comply with all relevant and
applicable laws, regulations and orders and in particular, shall conduct the
business of VGC in a manner so as to cause VGC to comply in all material
respects with all federal, provincial, state or local environmental laws,
regulations and orders of application in each jurisdiction where VGC carries on
business or owns assets.  Employee shall
promptly notify the Board if he becomes aware that VGC or any of its
subsidiaries has violated any law.

10.                                 Disclosure
of information.  By acceptance of
this Agreement, Employee expressly acknowledges that he has received or will
receive certain confidential information pertaining to the operations and
business affairs of VGC and, as the same may exist from time to time, such
information is a valuable, special and unique asset of  VGC’s business.  Employee agrees that he shall not, during his
employment under this Agreement or at any time thereafter, disclose any such
information to any person, firm, corporation, association, or other entity for
any reason or purpose whatsoever without the prior written consent of VGC.  Employee also hereby agrees that immediately
upon any termination of this Agreement, for any reason 

 

 

whatsoever, Employee shall return to VGC all copies of
any such information (in whatever form) then in Employee’s possession.

11.                                 Assignment.  This Agreement and rights and obligations of
the parties hereto may be assigned by VGC and shall bind and inure to the
benefits of the assigns, successor or successors of VGC and, insofar as
payments are to be made to Employee after his death, shall inure to the benefit
of the assigns, heirs, estate or legal representative of Employee.  This Agreement is personal to Employee and
may not be assigned by Employee.

12.                                 Entire
Agreement; Modifications.  This
document contains the entire agreement of the parties with respect to the
subject matter hereof, and it may only be changed, modified, supplemented or
amended by an agreement in writing signed by the party to be bound thereby.

13.                                 Governing
Law.  This Agreement shall be
interpreted and governed in accordance with the laws of the State of Colorado.

14.                                 Severability.  If any part of this Agreement is for any
reason declared to be illegal, invalid, unconstitutional, void or
unenforceable, all other provisions hereof not so held shall be and remain in
full force and effect, and the intention of the parties as expressed in the
stricken provision(s) shall be given effect to the extent possible.

15.                                 Dollar
References.  All references to “dollars”
and “$” shall mean United States Dollars.

16.                                 Review
by Employee’s Counsel.  Employee
acknowledges that the employer has provided the Employee the opportunity to
have this Agreement reviewed on his behalf by a Colorado attorney.  Employer has agreed to reimburse Employee for
reasonable attorney’s fees and expenses incurred by Employee in such review.

 

 

IN WITNESS
WHEREOF, the parties have executed this Agreement on the day and year set forth
below their signatures, effective as of the day and year first above written.

	
  

  	
  (C/S)

  
	
   

  	
   

  
	
  The Corporate
  Seal of

  	
   

  
	
  Vista Gold Corp.
  was hereunto

  	
   

  
	
  Affixed in the
  presence of:

  	
   

  
	
   

  	
   

  
	
  /s/ Michael B.
  Richings

  	
   

  
	
  Authorized
  Signatory

  	
   

  
	
   

  	
   

  
	
  /s/Gregory G.
  Marlier

  	
   

  
	
  Authorized
  Signatory

  	
   

  
	
   

  	
   

  
	
  Signed, Sealed
  and Delivered

  	
   

  
	
  By Frederick H.
  Earnest

  	
   

  
	
  In the presence
  of:

  	
   

  
	
   

  	
   

  
	
  /s/Frederick H.
  Earnest

  	
   

  
	
  Frederick H.
  Earnest

  	
   

  
	
   

  	
   

  
	
  /s/Connie Martinez

  	
   

  
	
  Witness

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