Document:

Unassociated Document

    Exhibit
10.24

    

    SEVERANCE
AGREEMENT AND GENERAL RELEASE

    

    This
SEVERANCE AGREEMENT AND GENERAL RELEASE (this “Agreement”) is made between (i)
John Brownlie (“Employee”), a Colorado resident, and (ii) CAPITAL GOLD
CORPORATION, a Delaware corporation (the “Company”).  Employee and the
Company are referred to collectively as the “Parties” and individually as a
“Party.”

    

    RECITALS

    

    WHEREAS,
the Parties entered into an Executive Employment Agreement (the “Employment
Agreement”), effective as of January 19, 2010, which, by its terms, expires on
January 19, 2013;

    

    WHEREAS,
Employee wishes to voluntarily resign his position as President and Chief
Operating Officer of the Company, and any and all other employment with, the
Company effective upon the earlier of: (a) July 1, 2010, or (b) the closing (the
“Closing”) of the business combination contemplated by that certain Business
Combination Agreement by and between the Company and Nayarit Gold, Inc., dated
February 10, 2010 (hereinafter the “Termination Date”);

    

    WHEREAS,
Employee currently serves as a director (“Director”) of the Company’s Board of
Directors (the “Board”) and wishes to tender his resignation as Director
effective on the Termination Date;

    

    WHEREAS,
Employee currently serves as President of Minera Santa Rita, S.A. de C.V.
(“Minera”), a subsidiary of the Company incorporated in Mexico, and wishes to
tender his resignation from such position effective on the Termination
Date;

    

    WHEREAS,
the Parties wish to resolve fully and finally any potential disputes regarding
Employee’s employment with the Company and any other potential disputes between
the Parties; and

    

    WHEREAS,
in order to accomplish these ends, the Parties are willing to enter into this
Agreement.

    

    NOW
THEREFORE, in consideration of the mutual promises and undertakings contained
herein, the sufficiency of which is acknowledged by the Parties, the Parties to
this Agreement agree as follows:

    

    TERMS

    

    1.           Separation and Effective
Date.  Subject to the terms of this Agreement, Employee hereby
voluntarily resigns his employment with the Company, his position as Director of
the Board and his position with Minera.  Pursuant to such resignation,
the Employment Agreement will terminate, Employee’s employment with the Company
will end, and his position as a Director will terminate on and as of the
Termination Date.  This Agreement shall become effective (the
“Effective Date”) on the eighth day after Employee’s execution of this
Agreement, provided that employee has not revoked Employee’s acceptance pursuant
to Section 7(h) below.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    2.           Severance
Payments.

    

    (a)           Subsequent
to the Termination Date, and on the express condition that Employee has not
revoked this Agreement, the Company will provide Employee with the severance
payments (the “Severance Payments”) in accordance with the schedule attached
hereto as Annex I; provided, however, that if the Closing does not occur on or
prior to the date which is 120 days from the date hereof, three hundred seventy
five thousand dollars ($375,000) shall be deducted from the Severance
Payments.

     

    (b)           The
Company shall issue an IRS Form W-2 to Employee reflecting the Severance
Payments made pursuant to this Section 2.  For purposes of clarity,
the Company shall withhold amounts for payment of taxes as required by local,
state and federal law. The Employee shall be solely responsible for payment of
taxes as required by local, state and federal law.  If a claim is made
against the Company for any tax or withholding in connection with or arising out
of the Severance Payments pursuant to Section 2, Employee shall pay any such
claim within thirty (30) days of being notified by the Company and agrees to
indemnify the Company and hold it harmless against such claims, including but
not limited to any taxes, attorneys’ fees, penalties or interest, which are or
become due from the Company.

    

    (d)           Employee
understands and agrees that the Company would not receive the monies and/or
benefits specified in this Section 2, except for Employee’s execution of this
Agreement and General Release and the fulfillment of the promises contained
herein.

    

    3.           General
Release.

    

    (a)           Employee,
for himself and for his affiliates, successors, heirs, subrogees, assigns,
principals, agents, partners, employees, associates, attorneys, and
representatives, voluntarily, knowingly and intentionally releases and
discharges the Company and its predecessors, successors, parents, subsidiaries,
affiliates, and assigns and each of their respective officers, directors,
principals, shareholders, agents, attorneys, board members, and employees from
any and all claims, actions, liabilities, demands, rights, damages, costs,
expenses, and attorneys’ fees (including but not limited to any claim of
entitlement for attorneys’ fees under any contract, statute, or rule of law
allowing a prevailing party or plaintiff to recover attorneys’ fees), of every
kind and description from the beginning of time through the Effective Date (the
“Released Claims”).

    

    (b)           The
Released Claims include but are not be limited to those which arise out of,
relate to, or are based upon: (i) Employee’s employment with the Company or the
termination thereof; (ii) statements, acts, or omissions by the Parties
whether in their individual or representative capacities; (iii) express or
implied agreements between the Parties (except as provided herein) and claims
under any severance plan; (iv) any stock or stock option grant, agreement,
or plan; (v) all federal, state, and municipal statutes, ordinances, and
regulations, including, but not limited to, claims of discrimination based on
race, national origin, sex, disability, whistleblower status, public policy, or
any other characteristic of Employee under the Age Discrimination in Employment
Act, the Older Workers Benefit Protection Act, the Americans with Disabilities
Act, the Fair Labor Standards Act, the Equal Pay Act, Title VII of the Civil
Rights Act of 1964 (as amended), the Employee Retirement Income Security Act of
1974, the Rehabilitation Act of 1973, the Worker Adjustment and Retraining
Notification Act, or any other federal, state, or municipal law prohibiting
discrimination or termination for any reason; (vi) state and federal common
law; and (vii) any claim which was or could have been raised by Employee,
including any claim that this Agreement was fraudulently induced.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    At such
time as Employee is eligible to sell the shares referred to in Section 2(a)
above pursuant to an exemption under Rule 144, (either as an affiliate under
Rule 144(b)(ii) or as a non-affiliated under Rule 144(b)(i)) the Company shall
authorize and pay its legal counsel to issue a written opinion to such effect
(the “Rule 144 Opinion”), addressed and reasonably acceptable to the Company’s
transfer agent. If for any reason the Company’s counsel does not issue such Rule
144 Opinion within 10 business days following a request for the Rule 144
Opinion, Employee may obtain a legal opinion from qualified legal counsel
of its own choosing, the Company shall pay such counsel’s reasonable fees, and
the Company shall authorize its transfer agent to rely on such legal
opinion.

    

    4.           Non-Competition;
Non-Solicitation; Anti-Raiding;.  Without the prior written
approval of the President or Chief Executive Officer of the Company, Employee
shall not, directly or indirectly, commencing upon the date hereof and
terminating upon the date he receives the final Severance Payment, anywhere in
the world

    

    (a)           Engage
in a “Competing Business’’ as such term is defined below that is within a
distance of five (5) kilometers from any point on the outer perimeter of any
such property in which the Company or any of its affiliates has a beneficial
interest or that it is seeking to acquire, whether as a sole proprietor,
partner, corporate officer, employee, director, shareholder, consultant, agent,
independent contractor, trustee, or in any other manner by which Employee holds
any beneficial interest in a Competing Business, derives any income from any
interest in a Competing Business, or provides any service or assistance to a
Competing Business.  “Competing Business” shall mean any business that
is within a distance of five (5) kilometers from any point on the outer
perimeter of any such property in which the Company or any of its affiliates has
a beneficial interest or that it is seeking to acquire upon the date hereof that
mines or produces minerals which is competitive with the business of the Company
or any of its Affiliates (defined below), as conducted or under development at
any time during the term of employment.  “Affiliates” shall mean any
entity controlled by or under common control with Employer or any joint venture,
partnership or other similar entity to which the Company is a
party.  

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    (b)           Acquire,
lease or otherwise obtain or control any beneficial, direct or indirect interest
in mineral rights, or other rights or lands necessary to develop, any mineral
property in which the Company or any of its Affiliates at the time of
termination as a beneficial interest or is actively seeking to acquire, or that
is within a distance of five (5) kilometers from any point on the outer
perimeter of any such property in which the Company or any of its affiliates has
a beneficial interest or that it is seeking to acquire;

    

    (c)           Conduct
any exploration or production activities or otherwise work on or in respect of
any mineral property within a distance of five (5) kilometers from any point on
the outer perimeter of any mineral property in which the Company or any of its
affiliates then has a beneficial interest or is actively seeking to acquire upon
the date hereof;

    

    (d)           (i) Contact
or solicit, or direct or assist others to contact or solicit, for the purpose of
promoting any person’s or entity’s attempt to compete with the Company or any of
its Affiliates, in any business carried on by the Company or any of its
Affiliates during the period in which Employee was an employee of the Company,
any suppliers, independent contractors, vendors, or other business associates of
the Company or any of its Affiliates that were existing or identified
prospective suppliers, independent contractors, vendors, or business associates
during such period, or (ii) otherwise interfere in any way in the
relationships between the Company or any of its Affiliates and their suppliers,
independent contractors, vendors, and business associates;

    

    (e)           (i) Solicit,
offer employment to, otherwise attempt to hire, or assist in the hiring of any
employee or officer of the Company or any of its Affiliates;
(ii) encourage, induce, assist or assist others in inducing any such person
to terminate his or her employment with the Company or any of its Affiliates; or
(iii) in any way interfere with the relationship between the Company or any
of its Affiliates and their employees; or

    

    5.         Unknown
Facts.  This Agreement includes claims of every nature and
kind, known or unknown, suspected or unsuspected.  Employee hereby
acknowledges that he may hereafter discover facts different from, or in addition
to, those which he now knows or believes to be true with respect to this
Agreement, and he agrees that this Agreement and the release contained herein
shall be and remain effective in all respects, notwithstanding such different or
additional facts or the discovery thereof.

    

    6.         No Admission of
Liability.  The Parties agree that nothing contained herein,
and no action taken by any Party hereto with regard to this Agreement, shall be
construed as an admission by any Party of liability or of any fact that might
give rise to liability for any purpose whatsoever.

    

    7.         Warranties.  Employee
warrants and represents as follows:

    

    a.         He
has read this Agreement, and he agrees to the conditions and obligations set
forth in it.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    b.         He
voluntarily executes this Agreement after having been advised to consult with
legal counsel and after having had opportunity to consult with legal counsel and
without being pressured or influenced by any statement or representation or
omission of any person acting on behalf of the Company including, without
limitation, the officers, directors, board members, committee members,
employees, agents, and attorneys for the Company.

    

    c.         He
has no knowledge of the existence of any lawsuit, charge, or proceeding against
the Company or any of its officers, directors, board members, committee members,
employees, or agents arising out of or otherwise connected with any of the
matters herein released.

    

    d.         The
Company is not now, nor has it been in the past, in breach of the Employment
Agreement, and no Good Reason exists for Employee’s resignation.

    

    e.         
Prior to Employee’s execution of this Agreement, he has not used or disclosed
any information in a manner that would be a violation of Sections 8 or 9
set forth below if such use or disclosure were to be made after the execution of
this Agreement.

    

    f.          He
has full and complete legal capacity to enter into this Agreement.

    

    g.         He
has had at least twenty-one (21) days in which to consider the terms of this
Agreement.  In the event that Employee executes this Agreement in less
time, it is with the full understanding that he had the full twenty-one (21)
days if he so desired and that he was not pressured by the Company or any of its
representatives or agents to take less time to consider the
Agreement.  In such event, Employee expressly intends such execution
to be a waiver of any right he had to review the Agreement for a full twenty-one
(21) days.

    

    h.         He
understands that this Agreement waives any claim he may have under the Age
Discrimination in Employment Act.  Employee may revoke this Agreement
for up to seven days following its execution, and this Agreement shall not
become enforceable and effective until seven days after such
execution.  If Employee chooses to revoke this Agreement, he must
provide written notice to Barry I. Grossman, Esq., Ellenoff Grossman &
Schole LLP, 150 East 42nd Street,
11th
Floor, New York City, NY, 10017 by hand delivery and by facsimile ((212)
370-7889) within seven calendar days of Employee’s execution of this
Agreement.  If Employee does not revoke within the seven-day period,
the right to revoke is lost.

    

    i.          He
admits, acknowledges, and agrees that, as of the Termination Date, he is not
entitled to any additional payments, severance, options, benefits or
reimbursement under Sections 3 and 4 of the Employment Agreement, and that the
payment required by Section 2 of this Agreement are good and sufficient
consideration for this Agreement.  He admits, acknowledges, and agrees
that he has been fully and finally paid or provided all wages, compensation,
vacation, expenses (including, but not limited to, relocation and travel
expenses), bonuses, stock, stock options, or other benefits from the Company
which are or could be due to Employee from the Company up through the date of
this Agreement.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

                   
j.          He has not taken
any action or made any statement materially adverse to the Company’s interests
prior to signing this Agreement.

    

    k.           There
are no agreements, either written or verbal, or invoices authorized or
outstanding with Trey Wasser, MRS Recovery Solutions, LLC, MRS Recovery
Solutions, Inc., or any affiliates of the aforementioned parties, other than
those agreements which have been disclosed in writing to the independent members
of the Board and Employee has not promised Trey Wasser, MRS Recovery Solutions,
LLC, MRS Recovery Solutions, Inc., or any affiliates of the aforementioned
parties any action would be taken regarding any financing or closing with the
Company.

    

    l.           He
hereby agrees to use his best efforts to assist management of the Company and
the Board in defending any legal action that may be commenced by Mr. Wasser, MRS
Recovery Solutions, LLC, MRS Recovery Solutions, Inc. and/or any affiliates of
the aforementioned parties.

    

    8.           Confidential
Information.  Except as herein provided, all discussions
regarding this Agreement, including, but not limited to, the amount of
consideration, offers, counteroffers or other terms or conditions of the
negotiations, shall be kept confidential by Employee from all persons and
entities other than the Parties to this Agreement, members of Employee’s
immediate family, and his legal and financial advisors.  Employee may
disclose the amount received in consideration of the Agreement only if necessary
(i) for the limited purpose of making disclosures required by law to agents
of the local, state, or federal governments; (ii) for the purpose of
enforcing any term of this Agreement; or (iii) in response to compulsory
process, and only then after giving the Company ten days advance notice of the
compulsory process and affording the Company the opportunity to obtain any
necessary or appropriate protective orders.  Otherwise, in response to
inquiries about this matter, Employee shall state, “My employment with the
Company has ended,” and nothing more.  Employee hereby expressly
acknowledges that any breach of this Section 8 shall result in a claim for
injunctive relief, damages and/or criminal sanctions and penalties against
Employee by the Company, and possibly others.

    

    9.           Non-Disparagement.  Employee
agrees that, as of and after the Termination Date, he will not make to any
person any statement that disparages the Company or reflects negatively on the
Company, including, but not limited to, statements regarding the Company’s
financial condition, employment practices, or its officers, directors, board
members, employees, affiliates, attorneys, customers, or
vendors.  Similarly, the Company shall not make any statement that
disparages Employee or reflects negatively on him.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    10.           Return of Company Property
and Information.  Employee represents and warrants that, on or
before the Termination Date, he will return to the Company any and all property,
documents, and files, including any documents (in any recorded media, such as
papers, computer disks, copies, photographs, maps, transparencies, and
microfiche) that relate in any way to the Company or the Company’s business
whether or not developed, produced, or conceived, in whole or in part, by
Employee during the term of his employment with the Company.  Employee
agrees that, to the extent that he possesses any files, data, or information
relating in any way to the Company or the Company’s business on any personal
computer, he will delete those files, data, or information (and will retain no
copies in any form).  Employee also will return any Company tools,
equipment, calling cards, credit cards, access cards or keys, any keys to any
filing cabinets, vehicles, vehicle keys, and all other Company property in any
form prior to the date he executes this Agreement.  On or after the
Termination Date, Employee shall have no right to enter the Company’s offices,
wherever located, for any purpose, absent the advanced written consent of the
Company.  Employee hereby expressly acknowledges that the foregoing
steps are necessary to protect the Company’s proprietary interests in its trade
secrets, confidential information, and copyrights, and that Employee is not
entitled to use, disclose, or otherwise benefit from the Company’s proprietary
interests.  Employee understands that any breach of this
Section 10 will also constitute a misappropriation of the Company’s
proprietary rights, and may constitute a theft of the Company’s trade secrets
under applicable local, state, and federal statutes, and will result in a claim
for injunctive relief, damages, and/or criminal sanctions and penalties against
Employee by the Company, and possibly others.

    

    11.           Surviving Provisions of
Employment Agreement.  Following the Termination Date, Employee
shall remain bound by Sections 5, and 7 through 12 of the Employment
Agreement.  With respect to Section 9 of the Employment Agreement,
Employee agrees and acknowledges that the Severance Payments due hereunder shall
substitute and act in stead of the “severance payments” referred to
therein.

    

    12.           Severability.  If
any provision of this Agreement is held illegal, invalid, or unenforceable, such
holding shall not affect any other provisions hereof.  In the event
any provision is held illegal, invalid, or unenforceable, such provision shall
be limited so as to affect the intent of the Parties to the fullest extent
permitted by applicable law.  Any claim by Employee against the
Company shall not constitute a defense to enforcement by the
Company.

    

    13.          
Assignment.  The
Company may assign its rights under this Agreement with the reasonable consent
of the Employee.  Employee cannot assign his rights under this
Agreement without the written consent of the Company.

    

    14.          
Enforcement.  The
releases contained herein do not release any claims for enforcement of the
terms, conditions, or warranties contained in this Agreement.  The
Parties shall be free to pursue any remedies available to them to enforce this
Agreement. In the event that Employee must engage legal counsel and/or take
legal action to enforce the terms of this Agreement and the Employee prevails in
his allegations that the Company has not performed its obligations pursuant to
the terms of this Agreement, Employee shall be entitled to recover from the
Company all associated costs and expenses, including, without limitation,
reasonable attorneys’ fees.

    

    
      
        
        

      

      
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    16.           Entire
Agreement.  This Agreement, and the surviving provisions of the
Employment Agreements, constitutes the entire agreement between the Parties with
respect to the subject matter contained herein.  This Agreement
supersedes any and all prior oral or written promises or agreements between the
Parties, except as otherwise provided herein.  Employee acknowledges
that he has not relied on any promise, representation, or statement other than
those set forth in this Agreement.  This Agreement cannot be modified
except in writing signed by all Parties.

    

    17.          
Venue and Applicable
Law.  This Agreement shall be interpreted and construed in
accordance with the laws of the State of New York, without regard to its
conflicts of law provisions.  Venue and jurisdiction shall be in the
federal or state courts in New York, New York.

    

    18.          
Counterparts.  This
Agreement may be executed in counterparts, which together shall constitute a
single instrument.

    

    19.           Stock
Options.  Employee currently owns the following options for the
Company’s shares:

    

    a)  500,000
options at $3.60 USD post-split, issued on January 19, 2010 (166,667 of which
have vested as of the date hereof at $3.60; 333,333 of which shall terminate on
the date hereof);

    

    b)
125,000 options at $2.52 USD post-split, issued on December 20, 2007 (75,000 of
which have vested as of the date hereof at $2.52; 50,000 of which shall
terminate on the date hereof); and

    

    c)
125,000 options at $1.96 USD post-split, issued on January 20, 2009 (83,334 of
which have vested as of the date hereof at $1.96; 41,666 of which shall
terminate on the date hereof).

    

    Employee
will have 90 days from the date of his termination to exercise the options that
have vested as set forth in this Section 19 of this Agreement. Employee shall be
permitted to exercise such options via cashless exercise pursuant to the terms
of the amended 2006 Stock Equity Plan.

    

    20.           IRC Section
409A.

    

    a.           It
is the intention of the parties that payments or benefits payable under this
Agreement not be subject to the additional tax imposed pursuant to Section 409A
of the Code.  To the extent such potential payments or benefits could
become subject to such Section, the parties shall cooperate to amend this
Agreement with the goal of giving Employee the economic benefits described
herein in a manner that does not result in such tax being imposed.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    b.           In
the event that a payment or benefit payable under this Agreement is subject to
the additional tax imposed by Section 409A of the Code, the Company shall (at
Employee’s option) pay directly, or reimburse Employee for such additional tax
and any interest and penalty related thereto (the “409A Amounts”) within 10 days
of Employee’s submission to the Company of the taxing authority’s determination
of amounts due (which determination must be submitted by Employee to the Company
within 30 days of receipt by Employee), and in the case of Employee’s payment,
evidence of such payment.  At the same time as the Company’s payment
or reimbursement, the Company shall pay Employee a gross-up amount to cover
income, excise, and other applicable taxes on the 409A Amounts and on the
gross-up amount (before this further gross-up).  For purposes of
calculating the gross-up amounts for taxes, the Employee shall be deemed to be
taxed at the highest marginal rate under all applicable local, state, federal,
and foreign tax laws for which the payment is made.

    

    EMPLOYEE
IS ADVISED THAT HE HAS UP TO TWENTY-ONE (21) CALENDAR DAYS TO CONSIDER THIS
AGEEMENT AND GENERAL RELEASE. EMPLOYEE IS ALSO ADVISED TO CONSULT WITH AN
ATTORNEY PRIOR TO SIGNING THIS AGREEMENT AND GENERAL RELEASE.

    

    EMPLOYEE
MAY REVOKE THIS AGREEMENT AND GENERAL RELEASE FOR A PERIOD OF SEVEN (7) CALENDAR
DAYS FOLLOWNG THE DAY EMPLOYEE SIGNS THIS AGREEMENT AND GENERAL
RELEASE.  ANY REVOCATION WITHIN THIS PERIOD MUST BE SUBMITTED, IN
WRITING, TO THE COMPANY, C/O SARAH WILLIAMS, ESQ., ELLENOFF GROSSMAN &
SCHOLE LLP, 150 EAST 42ND STREET,
NEW YORK, NEW YORK 10017, AND STATE, “I HEREBY REVOKE MY ACCEPTANCE OF OUR
AGREEMENT AND GENERAL RELEASE.”  THE REVOCATION MUST BE MAILED TO MS.
WILLIAMS AND POSTMARKED WITHIN SEVEN (7) CALENDAR DAYS AFTER EMPLOYEE SIGNS THIS
AGEREMENT AND GENERAL RELEASE.

    

    EMPLOYEE
AGREES THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT AND
GENERAL RELEASE, DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL UP TO
TWENTY-ONE (21) CALENDAR DAY CONSIDERATION PERIOD.

    

    EMPLOYEE
FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT
AND GENERAL RELEASE INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS EMPLOYEE
HAS OR MIGHT HAVE AGAINST THE RELEASEES AS DETAILED HEREIN.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    IN
WITNESS WHEREOF, the Parties have voluntarily executed this Agreement on the
dates written below.

    

    
      	 
      	
              EMPLOYEE:

            	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
               /s/
      John Brownlie

            	 
      	 
      
	 
      	
              Name:
      John Brownlie

            	 
      	
              Date:
      April 29, 2010

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              THE
      COMPANY:

            	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              CAPITAL
      GOLD CORPORATION

            	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
               /s/
      Christopher Chipman

            	 
      	 
      
	 
      	
              Name:
      Christopher Chipman

            	 
      	
              Date:
      April 29, 2010

            
	 
      	
              Title:
      Chief Financial Officer

            	 
      	 
      

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Annex
I

     

    Brownlie
Payout 

    
      

    

     

    
      
        	 
      	 	 	 	 	
                Payment
      Date

              	 
	 
      	 	
                JB

              	 	 	
                Nayarit

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	
                Payout

              	 	 	
                Closing
      /

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Item

              	 	
                Amount

              	 	 	
                15-Jun-10

              	 	 	
                15-Jul-10

              	 	 	
                15-Aug-10

              	 	 	
                15-Sep-10

              	 	 	
                15-Oct-10

              	 	 	
                15-Nov-10

              	 
	
                Base
      salary

              	 	$	275,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                multiplier

              	 	 	3.0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	$	825,000	 	 	$	125,000	 	 	$	140,000	 	 	$	140,000	 	 	$	140,000	 	 	$	140,000	 	 	$	140,000	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                2009
      Cash bonus

              	 	$	187,500	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                multiplier

              	 	 	3.0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	$	562,500	 	 	 	 	 	 	$	112,500	 	 	$	112,500	 	 	$	112,500	 	 	$	112,500	 	 	$	112,500	 
	 
      	 	$	1,387,500	 	 	$	125,000	 	 	$	252,500	 	 	$	252,500	 	 	$	252,500	 	 	$	252,500	 	 	$	252,500	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Nayarit
      payment

              	 	$	375,000	 	 	$	375,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Total
      cash payout

              	 	$	1,762,500	 	 	$	500,000	 	 	$	252,500	 	 	$	252,500	 	 	$	252,500	 	 	$	252,500	 	 	$	252,500Unassociated Document

    Exhibit
10.25

     

    AMENDMENT
TO

     

    BUSINESS
COMBINATION AGREEMENT

     

    BY
AND BETWEEN

     

    CAPITAL
GOLD COPORATION

     

    AND

     

    NAYARIT
GOLD INC.

     

    DATED
AS OF APRIL 29, 2010

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    AMENDMENT
TO BUSINESS COMBINATION AGREEMENT 

     

    THIS
AMENDMENT (this “Amendment”) to the
Business Combination Agreement dated as of February 10, 2010 by and among
Capital Gold Corporation, a Delaware corporation (“Parent”), Nayarit
Gold Inc., a corporation organized under the Ontario Business Corporation Act
(“Nayarit”),
John Brownlie, Colin Sutherland and Bradley Langille (the “Agreement”) is
entered into by the Parties hereto as of this 29th day of April,
2010.

     

    RECITALS:

     

    A.           The
Parties desire to amend and modify the Agreement as set forth in this
Amendment.

     

    B.           The
boards of directors of each of Parent and Nayarit have determined that it is
advisable and in the best interests of each of Parent and Nayarit, and their
respective shareholders, that the Agreement be amended and modified as set forth
in this Amendment.

     

    NOW,
THEREFORE, in consideration of the premises, the mutual promises contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto agree as
follows:

     

    1.           
All capitalized terms used and not defined herein shall have the meanings
ascribed thereto in the Agreement.

     

    2.           
Section 1.6 of the Agreement is hereby amended in its entirety to read as
follows: 

     

    “1.6           Directors and Officers; Lock
Up.

     

     (a)           At
the Effective Time, the Board of Directors of Parent shall consist of either
five (5) or seven (7) directors, in any event to include Stephen M. Cooper, John
W. Cutler, Leonard J. Sojka, one (1) nominee of Parent and one (1) nominee of
Nayarit.  For a period of thirty-six (36) months following the
Effective Time, the Parties hereto agree that they shall cause their nominees on
the Board of Directors to execute and deliver an undertaking whereby such
nominees agree to: (i) nominate the foregoing individuals for re-election at
each annual meeting of the shareholders of Parent; and (ii) cause any successors
chosen by such nominees to comply with the foregoing provision at each annual
meeting of the shareholders of Parent.  The Parties intend to appoint an
independent director as chair of the Board of Directors of Parent.

     

    (b)           At
the Effective Time, the officers of Parent shall include a chief executive
officer of Parent, who shall be determined by the Board of Directors and at
least two senior executive officers, two of whom shall be Colin Sutherland
Bradley Langille.

     

    (c)           At
the Closing, Colin Sutherland and Bradley Langille each shall enter into a
“lock-up” agreement substantially in the form set forth on Exhibit B attached
hereto (a “Lock Up
Agreement”) pursuant to which such Persons shall agree, for a period of
six (6) months from the Closing Date, that they each shall neither, on his, her
or its own behalf or on behalf of entities, family members or trusts affiliated
with or controlled by him, her or it, offer, issue, grant any option on, sell or
otherwise dispose of any portion of the Amalgamation Consideration issued to
such Person.”

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    3.           Section
1.10 of the Agreement is hereby amended in its entirety to read as
follows:

     

    “1.10                      Headquarters.  The
headquarters of Parent following the Effective Time will be located in
Philadelphia, Pennsylvania, and Parent shall further (so long as it sees fit)
maintain satellite or home offices in Halifax, Nova Scotia,
Canada.”

     

    4.           Section
6.3(k) of the Agreement is deleted in its entirety.

     

    5.           Section
7.1(b) of the Agreement is hereby amended in its entirety to read as
follows:

     

    “(b)           by
written notice by either Parent or Nayarit if the Closing conditions set forth
in Section 6.1 have not been satisfied by Nayarit or Parent, as the case may be
(or waived by Parent or Nayarit as the case may be) by 150 days after the date
of this Agreement (the “Completion
Deadline”).  Notwithstanding the foregoing, the right to
terminate this Agreement under this Section 7.1(b) shall not be available to any
Party whose action or inaction is the primary cause of, or resulted in, any such
condition set forth in Section 6.1 to fail to be fulfilled;”

     

    6.           The
first part of Section 8.2(ii) of the Agreement is hereby amended in its entirety
to read as follows:

     

    “if to Parent, to:

     

    Capital Gold Corporation

    76 Beaver
Street, 14th
Floor

    New York,
New York 10005

    Attention:  Chief
Executive Officer

    Facsimile:  (212)
344-4537”

    

    7.           The
Parties hereto hereby ratify and reaffirm the Agreement, as amended and modified
by this Amendment.

     

     

    * * *
*

     

    [Remainder
of Page Left Blank – Signature Page Follows]

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the
Parties hereto have caused this Amendment to be signed and delivered by their
respective duly authorized officers as of the date first above
written.

     

    
      
        	 	CAPITAL GOLD
      CORPORATION	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/
      Christopher Chipman	 
	 	 	Name:
      Christopher Chipman	 
	 	 	Title:
      Chief Financial Officer	 
	 	 	 	 

      

    
      	 	NAYARIT GOLD
    INC.	 
	 	 	 	 
	
               

            	
              By:
      

            	/s/
      Colin Sutherland	 
	 	 	Name:
      Colin Sutherland	 
	 	 	Title:
      President and CEO	 
	 	 	 	 

    

    

    
      	 	/s/
      Colin Sutherland	 
	 	

              Colin
      Sutherland

              (with
      respect to Section 1.6(c) of the Agreement only)

            	 
	 	 	 
	 	/s/
      Bradley Langille	 
	 	

              Bradley
      Langille

              (with
      respect to Section 1.6(c) of the Agreement only)

            	 
	 	 	 	 

    

    
 

    [Signature
Page to Amendment to Business Combination Agreement]

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