Document:

exh10-41.htm

 

 

 

 

 

 

 

 

EXHIBIT 10.41

 

 

 

 

  

  

  

SETTLEMENT AGREEMENT FOR CERTAIN DEBENTURES

 

This Settlement Agreement For Certain Debentures (hereinafter, the “Agreement”) is made and entered into on this 10 day of December 2010, by and among Calais Resources, Inc., a corporation organized wider the laws of British Columbia ("Calais"), Marlowe and Judy Harvey ("Mr. and Mrs. Harvey"), and Argus Resources, Inc. ("Argus”). Mr. and Mrs. Harvey and Argus are collectively referred to as the “Harvey Parties,” Calais and the Harvey Parties are collectively referred to as the "Parties"

 

RECITALS

 

	
  

	
Calais is a publicly-held company based in Littleton, Colorado, with properties in Boulder County, Colorado and Nye County, Nevada, which has obligations to file reports and disclosure information with the British Columbia Securities Commission ("BCSC") and the United States Securities and Exchange Commission ("SEC").

 

	
  

	
Mr. Harvey has been an officer and director of Calais in the past and with the other Harvey Parties is a significant shareholder of Calais.

 

	
  

	
The Harvey Parties hold four convertible debentures issued by Calais, and the Parties would like to settle three of the debentures pursuant to this Agreement.  The debenture in the amount of CDN$ 747,728 held by Aardvark Agencies, Inc, and the debenture in the amount of CDN$ 1,103,214 held by Lynn Martin, are not coveted by this Agreement.

 

NOW, THEREFORE, in consideration of the following covenants and promises and for other valuable consideration, this Agreement is entered into by the Parties.

 

AGREEMENT

 

Convertible Debentures, There are three convertible debentures between Calais and the Harvey Parties which are intended to be settled as provided in this Agreement.  These include:

	
Name of Holder

	
Amount (CDN$)

	
Due Date

	
Conversion Price (CDN$)

	
Judy Harvey

	
$2,046,741

	
5/31/2011

	
$1.23

	
Argus Resources, Inc.

	
$   215,422

	
5/31/2011

	
$1.23

	
Judy Harvey

	
$   948,000

	
5/31/2011

	
$1.23

	  	  	  	  

  

  

  

Harvey Debentures. The Harvey Parties hold two debentures which total CDN$ 2,994,741. The Harvey Parties agree to accept as full payment for these two debentures the sum of CDN$ 149,737 in cash to be paid on the closing of this Agreement, together with 8,890,638 restricted shares of Calais common stock to be delivered on the closing of this Agreement.  Since Calais is unable to deliver a certificate for the 8,890,638 shares because of the British Columbia Cease Trade Order, the certificate will be issued and held by Calais’ transfer agent pursuant to an escrow agreement satisfactory to the Parties.

 

Argus Debenture. The Harvey Parties agree to accept as full payment for the Argus Debenture, 659,730 restricted shares of Calais common stock to be delivered on the closing of this Agreement.  Since Calais is unable to deliver a certificate for the 659,730 shares because of the British Columbia Cease Trade Order, the certificate will be issued and held by Calais' transfer agent pursuant to an escrow agreement satisfactory to the Parties. Argus and Calais further agree that upon the issuance of the 659,730 shares to Argus and the execution of this Agreement by Argus and Calais, both Argus and Calais shall and hereby do release each other of and from any and all obligations or liabilities which each now has, has had, or may have, to the other, and from all claims or actions of every kind and nature whatsoever, except for the obligations to comply with the provisions of this Agreement.

 

Nature of Restricted Stock. The shares of Calais common stock to be issued by Calais pursuant to the provisions of paragraphs 2 and 3 will be restricted shares as that term

is defined in Rule 144 and the holding period for the shares will commence on the date of the Closing of this Agreement The holding period required before shares can be sold will depend on whether or not Calais is current in its reporting requirements with the SEC. If Calais is current the holding period for non-affiliates is 6 months and if Calais is not current, the holding period for non-affiliates is 12 months.

 

Representations and Warranties.

 

Calais.  Calais represents and warrants to each of the Harvey Parties (understanding that each of the Harvey Parties will be relying on the accuracy and completeness of the representations and warranties in their determination to enter into this Agreement);

 

Calais is a corporation in good standing in British Columbia and is qualified to conduct business in the state of Colorado.

 

The person executing this Agreement on behalf of Calais is its president.  Calais has authorized its president to sign this Agreement on its behalf, and has further authorized such officer to deliver this Agreement to each of the Harvey Parties and intends to be bound by this Agreement in accordance with its terms.

 

To the extent that Calais has stated any fact to this Agreement, Calais (acting through and

  

  

  

based on the knowledge of its president) believes such fact to be true and correct in all material respects.

 

The Harvey Parties. Each of the Harvey Parties represents and warrants to Calais (understanding that Calais will be relying on the accuracy and completeness of the representations and warranties in its determination to enter into this Agreement):

 

Each of the Harvey Parties that is a corporation, is a corporation in good standing under the laws of its jurisdiction of organization and is qualified to conduct business in the states or provinces where the conduct of its business so requires.

 

The persons executing this Agreement on behalf of each of the Harvey Parties that is a corporation are its duly constituted officers as named on the signature page hereof.  Each of the Harvey Parties that is a corporation has authorized such officers to sign this Agreement on its behalf, and has further authorized such officers to deliver this Agreement to Calais and intends to be bound by this Agreement in accordance with its terms.

 

To the extent that this Agreement states or sets out any matters of feet with respect to the rights, interests, claims or obligations of the Harvey Parties, such statements of feet ate true and correct in all material inspects and any such statements of fact do not omit to sate a fact that ought reasonably to be stated or that is necessary to make the statement not misleading in light of the circumstances in which it was made.

 

Costs and Expenses. The Parties shall each be responsible to pay their own attorneys’ fees and other costs and expenses incurred in connection with the negotiation and drafting of this Agreement.

 

Closing.  The  closing of the transactions contemplated in this Agreement (the "Closing") shall take place automatically (i) once each of the Parties has received copies of the signatures to this Agreement of all other Parties, (ii) once Calais has wired CDN$149,737 to Judy Harvey,  (iii) once Calais has issued 8,890,638 shares of its common stock to Judy Harvey and placed the certificate into escrow for the benefit of Judy Harvey, and (iv) once Calais has issued 659,730 shares of its common stock to Argus and placed the certificate into escrow for the benefit of Argus.

 

Accuracy of Factual Statements.  Each of the Parties represents to each of the other Parties that the factual statements contained herein are true and correct to the best of such Party’s knowledge, and no Party will take any action or assert any position that places into question or disputes the accuracy of any of the factual statements made herein.

 

Governing Law; Jurisdiction. This Agreement shall be governed by the laws of Colorado except to the extent that the laws of British Columbia govern the validity of the outstanding shares of Calais common stock and debentures. Each of the Parties consents to the

  

  

  

jurisdiction of the federal courts whose district encompass any part of the City of Denver, Colorado, or the state courts of the City and County of Denver, Colorado, in connection with any law, any objection, including any objection based forum non conveniens, to the bringing of any such proceeding in such jurisdictions.  Each of the Parties agrees that service in person or by certified or registered US. Mail to their respective last known address shall constitute valid and personam service upon such Party in any action or proceeding with respect to any matter as to which such Party has submitted to jurisdiction hereunder.

Severability. If any part of this Agreement shall be determined to be illegal, invalid or unenforceable, the remaining part shall not be affected thereby, and the illegal, unenforceable or invalid parts shall be deemed not to be a part of this Agreement

 

Integrated Agreement. This Agreement constitutes a single integrated contract expressing the entire agreement of the Parties with respect to die subject matter hereof, compromising any and all rights and obligations of the Parties, without exception, and supersedes all prior and contemporaneous oral and written agreements and discussions with respect to the subject matter hereof This Agreement may be amended or modified only by an agreement in writing signed by the Parties.  The failure by a Party to declare a breach or otherwise to assert its rights under this Agreement shall not be construed as a waiver of any right the Party has under this Agreement.

 

Confidentiality.  The Parties agree that this Agreement shall remain confidential between and among the Parties except as required to be disclosed under applicable law, governmental regulation or pursuant to judicial order or decree.

 

Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

Authority. Each person executing this Agreement on behalf of an entity represents and warrants to each other Party that such parson has executed this Agreement with all appropriate corporate and other authority, and that this Agreement is intended to be, and is, binding upon such rarity in accordance with its terms.

 

Good Faith.. Each of the Parties to this Agreement will work in good faith to accomplish the purposes of this Agreement

 

Notices.  All written notices required by this Agreement or any document delivered pursuant hereto or as contemplated herein, must be delivered to the following addresses (or to such other addresses as may be supplied by a Party) by a means evidenced by a delivery receipt and will be effective upon receipt.

 

If to Calais:

  

  

  

8839 West Crestline Dr.

Littleton, CO 80123

Attn: Dave Young, President

 

If to Mr. Harvey or any of the Harvey Parties:

 

47015 Extrom Road

Chiliwack, B.C. V2R-4V1

Canada

 

Survival. The Parties agree that the obligations, representations and warranties contained herein shall indefinitely survive the execution of this Agreement, the delivery of all documents hereunder, and the completion of the transactions contemplated herein.

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the date first above mentioned above.

 

CALAIS RESOURCES, INC.

 

 

By  /s/ David K. Young                                          

      David Young, President

STATE OF COLORADO               )

)

COUNTY OF                                   )

Subscribed, sworn to, and acknowledged before me by David Young, as President for and on behalf of Calais Resources, Inc., on this  day of December 2010.

 

Witness my hand and official seal.

 

My commission expires:

 

 

[Seal]

 

 

/s/ Marlowe Harvey                      /s/ Judy Harvey

 

Marlowe Harvey, Individually                                                           Judy Harvey, Individually

  

  

  

PROVINCE OF B.C.                )

)ss.

CITY OF                                    )

 

Subscribed, sworn to, and acknowledged before me by Marlowe and Judy Harvey, individually, on this  day of December 2010.

 

Witness my hand and official seal.

 

My commission expires:

 

	
  

	
[SEAL]

 

Notary Public

 

 

ARGUS RESOURCES, INC.

By /s/ Marlowe Harvey

Marlowe Harvey, President and Secretary

PROVINCE OF B.C.                )

)ss.

CITY OF                                    )

 

Subscribed, sworn to, and acknowledged before me by Marlowe Harvey, as President and Secretary for and on behalf of Argus Resource, Inc., on this  day of December 2010.

Witness my hand and official seal.

 

My commission expires:

 

	
  

	
[SEAL]

 

Notary Publicexh10-50.htm

 

 

 

 

 

 

 

 

 

 

EXHIBIT 10.50

 

 

 

 

 

  

  

  

EMPLOYMENT AGREEMENT

 

   THIS AGREEMENT ("Agreement") is effective as of July 12th 2006

 

BY AND BETWEEN:

 

Calais Resources Corporation

 

4415 Caribou Road. P.O. Box 653 

Caribou, Nederland, CO 80466-0653

 

(the "Company”) 

 

and

 

Thomas S. Hendricks

 

P.O. Box 653 - Caribou 

Nederland, CO 80466-0653

 

(the "Executive")

 

RECITALS

 

WHEREAS the Executive is an Officer of the Company, the former chief executive officer of the Company, and has, for the past 35 years, been in charge or associated with the development of the Company's chief assets, and is currently employed in the Business (as defined below) operated by the Company;

 

WHEREAS the Company and Executive desire that the agreements and understandings pursuant to which Company has agreed to hire Executive and Executive has agreed to serve be set forth in writing for the benefit of both parties:

 

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

 

1,       Defined Terms

 

(a)      "Board" means the Board of Directors of the Company;

 

Executive      tsh   

Company       rdr   

 

  

  

  

	
(b)      

	
"Business" means the business presently or hereafter carried on by the Company in the area of mineral resource exploration, development and production;

 

	
(c)      

	
"Disability" means the inability of the Executive as a result of illness or injury to perform his responsibilities as an employee of the Company for a period of 180 consecutive days or 200 days out of 400 days;

 

	
(d)      

	
"Effective Change of Control" means the occurrence, within a single transaction or series of related transactions occurring within the same 12-month period, of a change in the identity of persons who individually or collectively hold rights to elect, or to approve the election of, a majority of the members of the Board, including, without limitation, transactions consisting of one or more sales or other transfers of assets or equity securities, mergers, consolidations, amalgamations, reorganizations, or any similar transactions; and

 

	
(e)      

	
"Stock Option Plan" means the incentive stock option plan of the Company for directors, officers, employees and other service providers of the Company.

 

2.       Employment

 

	
(a)      

	
The Company (directly or through its United States and other subsidiaries) shall employ the Executive, and the Executive shall serve the Company and its subsidiaries as, Vice President for Exploration and Corporate Development or in such other capacity or capacities as may be determined by the Board from time to time.

 

	
(b)      

	
The Executive represents that he has the required skills and experience to perform the duties required of him and agrees to be bound by the terms and conditions of this Agreement.

 

	
(c)      

	
The Executive will be employed by the Company on a full-time basis and will devote himself exclusively to the Business and will not be employed or engaged in any capacity in any other business that is in competition with the Business of the Company, without the prior written approval of the Company.

 

	
(d)      

	
The Executive acknowledges that in carrying out his duties and responsibilities:

 

	
i)        

	
the Executive shall comply with all lawful and reasonable instructions as may be given by the Board;

 

	
ii)       

	
the Executive will perform his duties with the highest level of integrity and in a manner which shall engender the Company's complete confidence in the Executive's relationship with other employees of the Company and with all persons dealt with by the Executive in the course of employment; and

 

Executive      tsh   

Company       rdr   

 

  

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                     iii)

	
the Executive will perform his duties in a diligent, loyal, productive and efficient manner and use his best efforts to advance the Business and goodwill of the Company.

 

	
(e)      

	
The Executive understands that the hours required to meet the objectives of his employment will vary and be irregular.

 

	
(f)      

	
The location of the Executive's employment under this Agreement shall be in the State of Colorado.

 

3.           Compensation and Benefits

 

As compensation for the services to be rendered by the Executive to the Company, the Company agrees to provide the remuneration and benefits set out in this paragraph 3.

 

(a)          Base Salary and Discretionary Bonus

 

The Executive shall be paid a minimum annual base salary of US$ 150,000. The Board shall review the amount of such salary annually. Said salary shall be subject to all deductions required by law or required by company policy and shall be paid bi-monthly, in arrears, by check or deposit, or such other periodic installments as may be from time to time agreed. In addition, the Executive may be entitled to receive a discretionary performance bonus in such amount, if any, as the Board in its sole discretion may determine.

 

(b)          Grant of Stock Options

 

The Executive shall be eligible to receive stock options granted pursuant to the Stock Option Plan, on such terms and conditions as the Board in its discretion may determine.

 

(c)          Automobile Allowance

 

The Executive shall be entitled to receive an automobile allowance to cover normal day-to-day operating (including fuel) and maintenance costs paid by the company.

 

(d)          Health (Medical and Vision), Dental, Long Term Disability and Life Insurance

 

The Executive shall be entitled to receive and participate in health (medical and vision), dental, long-term disability and life insurance programs offered by the Company to other executive employees and entitled, at his option, to continue to receive and participate in the health (medical and vision) (Humana), dental (Delta) insurance

 

Executive      tsh   

Company       rdr   

 

  

3

  

programs which the Company makes available as of the date of this Agreement. In recognition of the Executive's hands-on participation in the oversight and maintenance of the Company's principal mining assets in Caribou, the Company shall continue to provide disability insurance coverage to Executive under the policy currently provided to Executive by AFLAC or, at the Executive's option, under a substitute policy in an amount and with benefits equivalent to the coverage currently provided to Executive by the Company.

 

(e)           Indemnification and D&O Liability Insurance

 

To assure that Executive will be in a position to perform his duties to the Company without concern over unwarranted liability, the Company shall indemnify and advance reasonable defense expenses to the Executive to the full extent permitted by Colorado. The Company shall also use its best efforts to purchase, at the earliest time practicable, one or more policies of directors and officers liability insurance in an amount adequate to protect Executive against claims made against him for actions taken or not taken in the conduct of his duties to the Company.

 

4.           Vacation

 

The Executive will be entitled to twenty (20) days of vacation during each twelve- (12-) month period calculated from January 1, 2006 plus usual statutory and other public holidays, the timing of such vacation to be mutually agreed upon between the Executive and the Company. Vacation accrued and unused by Executive during 2004 and 2005 (20 days) shall be carried forward and remain useable in 2006 and 2007. Otherwise, vacation entitlement not used in any 12-month period may be carried forward, provided that, if it is not used in the next 12-month period, the Executive shall be paid the cash equivalent of any unused vacation entitlement.

 

5.           Expenses

 

The Executive shall be reimbursed by the Company for business expenses incurred as a result of his work on behalf of the Company. The Company shall reimburse the Executive for such expenses upon presentation of supporting documentation satisfactory to the Company in accordance with the tax principles applicable in the United States for such reimbursement and the Company's established reimbursement policies, as those policies may be modified from time to time in the Company's discretion.

 

6.           Terms of the Agreement and Termination

 

 

Executive      tsh   

Company       rdr   

 

  

4

  

 

	
                  (a)

	
This Agreement shall commence on the date hereof and shall be of indefinite term unless terminated pursuant to the provisions hereof.

 

	
(b)      

	
The Executive may terminate his employment pursuant to this Agreement by giving at least one (1) month's advance notice in writing to the Company. The Company may waive such notice, in whole or in part, and, if it does so, the Executive's entitlement to remuneration and benefits pursuant to this Agreement will cease on the date such notice is waived.

 

	
(c)      

	
The Executive's employment shall terminate upon the death of the Executive, whereupon all stock options granted to the Executive shall immediately vest and shall be exercisable by the Executive's heirs, executors, administrators or personal representatives in accordance with the terms of the Stock Option Plan.

 

	
(d)      

	
The Executive's employment shall be terminated upon the Disability of the Executive.

 

	
(e)      

	
In the event of an Effective Change of Control, the Executive's employment shall be deemed to have been terminated without cause, and: (i) the Company shall be obligated to pay the Executive the severance payments calculated in accordance with subparagraph 6(f) hereof; and (ii) those certain stock options granted to Executive on July 8,2004 in consideration of the $980,000 debenture issued to Executive and assigned by Executive pursuant to the settlement agreement between Calais and Marlowe and Judy Harvey shall, to the extent unvested, immediately and fully vest and be exercisable by Executive at will in accordance with the remaining terms provided therein.

 

	
(f)      

	
The Executive's employment may be terminated without cause by majority vote of the Board. In the event that the Executive's employment is so terminated, or is deemed to have been terminated pursuant to subparagraph 6(e) hereof, any stock options granted but not vested shall be immediately vest, and the Company shall pay to the Executive 36 months salary, in compensation for the Executive's loss of employment, together with a payment equal to 50% of any bonus entitlement of the Executive for each year in such 36 month period, plus any other compensation which the Executive is entitled to receive. Health (medical and vision), dental, long term disability and life insurance plan coverage in effect on the last day of employment shall continue, without material change, for a period of 36 months. The Executive shall not have the duty to mitigate damages. For the purpose of calculating payments due to the Executive pursuant to this subparagraph 6(f), all Federal and State taxes and Federal excise taxes (parachute taxes) shall be grossed-up.

 

	
(g)      

	
The Company may terminate the Executive's employment without notice or payment in lieu of such employment, for cause. For the purposes of this Agreement "cause" shall mean (i) the failure to follow written policies or directions

 

Executive      tsh   

Company       rdr   

 

  

5

  

of the Board not inconsistent with this Agreement or contrary to applicable law, (ii) neglect of responsibilities after the receipt of written notice setting forth the performance deficiencies and providing 45 days to cure such deficiencies, (iii) acts of dishonesty, fraud, misrepresentation, insubordination, harassment or employment discrimination, and (iv) indictment for a felony.

 

7.           Notices

 

	
(a)      

	
Any notice required or permitted to be given to the Executive shall be sufficiently given if delivered to the Executive personally or mailed by registered mail to the Executive's home address.

 

	
(b)      

	
Any notice required or permitted to be given to the Company shall be sufficiently given if delivered to the Secretary of the Company personally or if mailed by registered mail to the Company's principal office, attention Corporate Secretary.

 

	
(c)      

	
Any notice given by registered mail shall be deemed to have been given forty-eight hours after the time it is posted.

 

8.           Entire Agreement

 

This Agreement terminates, replaces and supersedes all prior agreements, oral or written, between the parties hereto. This Agreement contains the final and entire understanding and agreement between the parties hereto with respect to the subject matter hereof, and they shall not be bound by any terms, conditions, statements, covenants, representations, or warranties, oral or written, with respect to the subject matter hereof not contained in this Agreement.

 

9.           Headings

 

The headings in this Agreement are for convenience of reference only, and under no circumstances should they be construed as being a substantive part of this Agreement nor shall they limit or otherwise affect the meaning hereof.

 

10.           Warranty

 

Each of the parties hereto represents and warrants that there are no restrictions, agreements or limitations on such party's right or ability to enter into and perform the terms of this Agreement.

 

11.           Severability

 

If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable by a court of competent jurisdiction for any reason whatsoever (i) the validity, legality and enforceability of the remaining provisions of this Agreement

 

 

Executive      tsh   

Company       rdr   

 

  

6

  

(including without limitation, all portions of any paragraphs of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby, and (ii) to the fullest extent possible, the provisions of this Agreement (including, without limitation, all portions of any paragraph of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.

 

12.          Modification

 

Any modification of this Agreement must be in writing and signed by both the Executive on the one hand and by the Company acting through an officer duly authorized to execute such modification on behalf of the Company or such modification shall have no effect and shall be void.

 

13.          Waiver

 

The wavier by either party of any breach or violation of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach or violation. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

14.          Assignment of Rights

 

The rights that accrue to the Company under this Agreement shall pass to its successors or assigns. The rights of the Executive under this Agreement are not assignable or transferable in any manner.

 

15.          Independent Legal Advice

 

The Executive acknowledges that he has read and understands this Agreement, and acknowledges that he has had the opportunity to obtain independent legal advice with respect to it.

 

16.          Time of Essence

 

Time shall be of the essence of this Agreement

 

17.          Governing Law

 

This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado. Any dispute between the Company and Executive shall be brought exclusively in the State or Federal Courts located in Denver, Colorado. In the event of

 

 

Executive      tsh   

Company       rdr   

 

  

7

  

such dispute, the prevailing party shall be entitled to recover its reasonable attorneys fees and costs.

 

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

 

CALAIS RESOURCES, INC

 

By: /s/ David R. Russell                                                                          

David R. Russell

Chairman of the Board

Executive

/s/ Thomas S. Hendricks                                                   

Thomas S. Hendricks

 

 

 

 

Executive      tsh   

Company       rdr   

 

 

 

8

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