Document:

EX10.2-2Q14

Exhibit 10.2

AGREEMENT AND GENERAL RELEASE

Celanese Corporation, its’ subsidiaries and its affiliates (“Company”), 222 W. Las Colinas Blvd., Irving, Texas 75039 and  Steven M. Sterin, his heirs, executors, administrators, successors, and assigns (“Employee”), agree that:

1.     Last Day of Employment.     The last day of employment with the Company is: November 1, 2014 (Separation Date). In order to remain on the payroll until the aforementioned date and receive the Consideration set forth in Paragraph “3” below, Employee shall comply with all Company policies and procedures and perform his duties faithfully, to the best of his ability and to the satisfaction of the Company while devoting his full business efforts and time to the Company and to the promotion of its business as needed, including but not limited to: work on projects assigned to him by the Chairman and CEO and assistance with transition duties.
2.    Early Separation Date. If Employee voluntary resigns as an employee prior to the Separation Date (such date referenced as the “Early Separation Date” or “ESD”), Employee will be released as of the ESD. Employee will still be eligible for the Consideration set forth in Paragraph 3 below. However, Employee agrees to waive any additional salary payment for the balance of the time period commencing on the date of the ESD through the Separation Date. In addition, the bonus payment, LTI and vacation payout set forth in either Paragraphs 3 (c), (d), (f) will be prorated to the ESD. For purposes of this Agreement, the last day of employment will be either the Separation Date or ESD, whichever is applicable.

3.    Consideration.  Each separate installment under this Agreement shall be treated as a separate payment for purposes of determining whether such payment is subject to or exempt from compliance with the requirements of Section 409A of the Internal Revenue Code. In consideration for signing this Agreement and compliance with the promises made herein, Company and Employee agree:

		
	a.
	Voluntary Resignation. Employee agrees to voluntarily resign from employment with the Company effective on the Separation Date or ESD. Employee will execute upon the execution of this Agreement, in writing, a voluntary resignation of employment letter as a condition of this Agreement using the format set forth at Exhibit A. Employee resigned his officer positions with the company on or about May 6, 2014.  It is understood that, should Employee be appointed to a seat or seats on the Board of Directors or other such governing body of another business entity (corporation, partnership, etc.), his Separation Date or ESD will not be accelerated. It is further understood however, that prior to the Separation Date Employee shall not accept an appointment as referenced above, without the express written consent of the Company, which consent will not be unreasonably withheld.

-1-

		
	b.
	Separation Pay.  The Company will pay an amount equal to his current annual base salary ($630,000.00), plus target bonus ($504,000.00), for a total payment of $1,134,000.00, less any lawful deductions. Such amount shall be paid in installments. The first installment in the amount of $567,000.00 (representing 50% of the total payment) shall be paid on the first available pay period after the Separation Date (approximately November 16, 2014), or ESD, if the Employee has previously signed and returned this Agreement and the letter enclosed at Exhibit B. If Employee signs and returns the Agreement after the Separation Date or ESD, payment will be made on the first available pay period, seven (7) days after Employee signs and returns this Agreement and the letter enclosed at Exhibit B.

The remaining $567,000.00 will be paid in three (3) substantially equal bi-weekly installments that begin on the second available pay period (November 28, 2014) or second available pay period after the ESD, as long as the Employee has previously signed and returned this Agreement and the letter enclosed at Exhibit B. Otherwise, the payments will commence in three (3) substantially equal bi-weekly installments that begin on the second pay period, after the Separation Date or ESD and after Employee signs and returns this Agreement and the letter enclosed at Exhibit B.
 
		
	a.
	Bonus. Employee will be eligible to receive a pro-rata bonus payout based on the number of full months of service completed in 2014, up to the Separation Date or ESD. Bonus payout will be based on the Employee’s annual bonus; which is 80% of Employee’s annual base salary, times the Employee’s personal modifier of a 1.0, modified for actual Company performance. The 2014 bonus payout will be paid to the Employee during the 2015 calendar year, but in no event later than March 30, 2015.  

		
	b.
	Long-Term Equity and Cash Awards.  The Company will fulfill its obligations to Employee pursuant to the terms of the signed equity award agreements. The Company and Employee agree that the total equity awards, for which the Employee is eligible, are set forth at Exhibit C, if he departs on the Separation Date. If he departs on the ESD the equity awards will be prorated accordingly as set forth in Paragraph 2.

		
	e.
	Pension and 401(k) Plan Vesting. If Employee is eligible, the Company will fulfill its obligations according to the terms of the respective Plans. 

		
	f.
	Unused Vacation.  The Company will pay to Employee wages for any unused vacation for 2014 and any approved vacation carried over from 2013 under the standard procedure for calculating and paying any unused vacation to separated employees. The gross amount due to Employee, less any lawful deductions, will be payable within 30 days of the Separation Date or ESD; subject to the Employee providing the details of any vacation days utilized during 2013 and 2014 through the exit interview process.

		
	g. 
	Company Benefit Plans.  Healthcare & dental plan coverage based on Employee’s current health & dental plan elections will continue until the end of the month in which 

-2-

Employee separates. All other normal Company programs (e.g., life insurance, long term disability, 401(k) contributions, etc.) will continue through the Separation Date. 

		
	 h.
	COBRA Reimbursement.  If Employee applies for COBRA benefits, the Company will pay medical and dental coverage via COBRA for twelve (12) months beyond the month of separation, or ESD. Thereafter, Employee shall be entitled to elect to continue such COBRA coverage for an additional six (6) months, the remainder of the COBRA period, at his expense. 

		
	i.
	Outplacement Services. The Employer will pay for outplacement services by the Company’s preferred provider for twelve (12) months, available seven (7) days after signing the Release.  

		
	j. 
	Return of Company Property. Employee will surrender to Company, on a mutually agreeable date, all Company materials, including, but not limited to his Company laptop computer, phone, credit card, calling cards, etc. Employee will be responsible for resolving any outstanding balances on the Company credit card.

		
	k. 
	Withholding.  The payments and other benefits provided under this Agreement shall be reduced by applicable withholding taxes and other lawful deductions.

4.No Consideration Absent Execution of this Agreement.  Employee understands and agrees that he would not receive the monies and/or benefits specified in Paragraph 3 above, unless Employee signs this Agreement on the signature page without having revoked this Agreement pursuant to Paragraph 13 below and the fulfillment of the promises contained herein.

5.General Release of Claims.  Employee knowingly and voluntarily releases and forever discharges, to the full extent permitted by law, in all countries, including but not limited to the U.S., the People’s Republic of China (PRC), U.K. and Germany, the Company, its parent corporation, affiliates, subsidiaries, divisions, predecessors, successors and assigns and the current and former employees, officers, directors and agents thereof (collectively referred to throughout the remainder of this Agreement as “Company”), of and from any and all claims, known and unknown, asserted and unasserted, Employee has or may have against Company as of the date of execution of this Agreement, including, but not limited to, any alleged violation of:  

		
	•
	Title VII of the Civil Rights Act of 1964, as amended;

		
	•
	The Civil Rights Act of 1991;

		
	•
	Sections 1981 through 1988 of Title 42 of the United States Code, as amended;

		
	•
	The Employee Retirement Income Security Act of 1974, as amended;

		
	•
	The Immigration Reform and Control Act, as amended;

		
	•
	The Americans with Disabilities Act of 1990, as amended;

		
	•
	The Age Discrimination in Employment Act of 1967, as amended;

		
	•
	The Workers Adjustment and Retraining Notification Act, as amended;

		
	•
	The Occupational Safety and Health Act, as amended;

		
	•
	The Sarbanes-Oxley Act of 2002; 

		
	•
	The Wall Street Reform Act of 2010 (Dodd Frank);

-3-

		
	•
	The Family Medical Leave Act of 1993 (FMLA);

		
	•
	The Texas Civil Rights Act, as amended;

		
	•
	The Texas Minimum Wage Law, as amended;

		
	•
	Equal Pay Law for Texas, as amended;

		
	•
	Any other federal, state or local civil or human rights law, or any other local, state or federal law, regulation or ordinance including but not limited to the State of Texas; or any law, regulation or ordinance of a foreign country, including but not limited to the PRC, Federal Republic of Germany and the UK.

		
	•
	Any public policy, contract, tort, or common law;

		
	•
	The employment, labor and benefits laws and regulations in all countries in addition to the U.S. including but not limited to the U.K. and Germany;

		
	•
	Any claim for costs, fees, or other expenses including attorneys’ fees incurred in these matters.

Affirmations.  Employee affirms that he has not filed, caused to be filed, or presently is a party to any claim, complaint, or action against Company in any forum or form. Provided, however, that the foregoing does not affect any right to file an administrative charge with the Equal Employment Opportunity Commission (“EEOC”), or a charge or complaint under the Wall Street Reform Act of 2010, subject to the restriction that if any such charge or complaint is filed, Employee agrees not to violate the confidentiality provisions of this Agreement and Employee further agrees and covenants that should he or any other person, organization, or other entity file, charge, claim, sue or cause or permit to be filed any charge or claim with the EEOC, the Securities and Exchange Commission (SEC), any other governmental body, civil action, suit or legal proceeding against the Company involving any matter occurring at any time in the past, Employee will not seek or accept any personal relief (including, but not limited to, monetary award, recovery, relief or settlement) in such charge, civil action, suit or proceeding.

Employee further affirms that he has reported all hours worked as of the date of this release and has been paid and/or has received all leave (paid or unpaid), compensation, wages, bonuses, commissions, and/or benefits to which he may be entitled and that no other leave (paid or unpaid), compensation, wages, bonuses, commissions and/or benefits are due to him, except as provided in this Agreement. Employee furthermore affirms that he has no known workplace injuries or occupational diseases and has been provided and/or has not been denied any leave requested under the Family Medical Leave Act.

6.Confidentiality. Employee agrees and recognizes that any knowledge or information of any type whatsoever of a confidential nature relating to the business of the Company or any of its subsidiaries, divisions or affiliates, including, without limitation, all types of trade secrets, client lists or information, employee lists or information, information regarding product development, marketing plans, management organization, operating policies or manuals, performance results, business plans, financial records, or other financial, commercial, business or technical information (collectively “Confidential Information”), must be protected as confidential, not copied, disclosed or used other than for the benefit of the Company at any time unless and until such knowledge or information is in the public domain through no wrongful act by Employee. Employee further agrees 

-4-

not to divulge to anyone (other than the Company or any persons employed or designated by the Company), publish or make use of any such Confidential Information without the prior written consent of the Company, except by an order of a court having competent jurisdiction or under subpoena from an appropriate government agency.

7.Non-competition/Non-solicitation/Non-hire.  Employee acknowledges and recognizes the highly competitive nature of the business of the Company. Without the express written permission of Celanese, for a period of two (2) years, following the Separation Date or ESD (the “Restricted Period”), Employee acknowledges and agrees that he will not: (i) directly or indirectly solicit sales of like products similar to those produced or sold by Company; or (ii) directly engage or become employed with any business that competes with the business of Celanese, including but not limited to: direct sales, supply chain, marketing, or manufacturing for a producer of products similar to those produced or licensed by Celanese. In addition, for two (2) years, Employee will not directly or indirectly solicit, nor hire employees of Celanese for employment. However, nothing in this provision shall restrict Employee from owning, solely as an investment, publicly traded securities of any company which is engaged in the business of Celanese if Employee (i) is not a controlling person of, or a member of a group which controls; and (ii) does not, directly or indirectly, own 5% or more of any class of securities of any such company.

8.Governing Law and Interpretation.  This Agreement shall be governed and conformed in accordance with the laws of the State of Texas, without regard to its conflict of laws provision.  In the event Employee or Company breaches any provision of this Agreement, Employee and Company affirm that either may institute an action to specifically enforce any term or terms of this Agreement.  Should any provision of this Agreement be declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable, excluding the general release language, such provision shall immediately become null and void, leaving the remainder of this Agreement in full force and effect. 

9.Non-admission of Wrongdoing.  The parties agree that neither this Agreement nor the furnishing of the consideration for this Release shall be deemed or construed at any time for any purpose as an admission by Company of any liability or unlawful conduct of any kind.

10.Non-Disparagement.  Employee agrees not to disparage, or make disparaging remarks or send any disparaging communications concerning, the Company, its reputation, its business, and/or its directors, officers, managers. Likewise the Company’s senior management agrees not to disparage, or make any disparaging remark or send any disparaging communication concerning Employee, his reputation and/or his business.

11.Future Cooperation after Separation Date.  After the Separation Date or ESD, Employee agrees to make reasonable efforts to assist Company including but not limited to: responding to telephone calls, assisting with transition duties, assisting with issues that arise after the Separation Date or ESD and assisting with the defense or prosecution of any lawsuit or claim.  This includes but is not limited to providing deposition testimony, attending hearings and testifying on behalf of the Company.  The Company will reimburse Employee for reasonable time and expenses in connection with any future cooperation after the Separation Date or ESD, at his current annual base 

-5-

pay, converted to an hourly rate of $ 303/hr. Time and expenses can include loss of pay or using vacation time at a future employer.  The Company shall reimburse the Employee within 30 days of remittance by Employee to the Company of such time and expenses incurred.

12.Injunctive Relief.  Employee agrees and acknowledges that the Company will be irreparably harmed by any breach, or threatened breach by his of this Agreement and that monetary damages would be grossly inadequate. Accordingly, he agrees that in the event of a breach, or threatened breach by him of this Agreement the Company shall be entitled to apply for immediate injunctive or other preliminary or equitable relief, as appropriate, in addition to all other remedies at law or equity.

13.Review Period. Employee is hereby advised he has up to twenty-one (21) calendar days, from the date he receives it, to review this Agreement and to consult with an attorney prior to execution of this Agreement. Employee agrees that any modifications, material or otherwise, made to this Agreement do not restart or affect in any manner the original twenty-one (21) calendar day consideration period.

14.Revocation Period and Effective Date. If Employee signs and returns to the Company a copy of this Agreement, he has a period of seven (7) days (the “Revocation Period”) following the date of such execution to revoke this Agreement, after which time this agreement will become effective (the “Effective Date”) if not previously revoked.  In order for the revocation to be effective, written notice must be received by the Company no later than close of business on the seventh day after Employee signs this Agreement at which time the Revocation Period shall expire.

15.Amendment.  This Agreement may not be modified, altered or changed except upon express written consent of both parties wherein specific reference is made to this Agreement.

16.Entire Agreement.  This Agreement sets forth the entire agreement between the parties hereto, and fully supersedes any prior obligation of the Company to Employee. Employee acknowledges that he has not relied on any representations, promises, or agreements of any kind made to him in connection with his decision to accept this Agreement, except for those set forth in this Agreement.  Notwithstanding the foregoing, it is expressly understood and agreed that the Equity Agreements and the Long Term Incentive Award Claw Back Agreement executed by Employee on or about January 6, 2009 shall remain in full force and effect. 

17.HAVING ELECTED TO EXECUTE THIS AGREEMENT, TO FULFILL THE PROMISES AND TO RECEIVE THE SUMS AND BENEFITS IN PARAGRAPH “3” ABOVE, EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS HE HAS OR MIGHT HAVE AGAINST COMPANY.

-6-

IN WITNESS WHEREOF, the parties hereto knowingly and voluntarily executed this Release as of the date set forth below.

	
					
	Employee
	 
	Celanese Corporation

	 
	 
	 

	By:
	/s/ Steven M. Sterin
	 
	By:
	/s/ Lori A. Johnston

	 
	Steven M. Sterin
	 
	 

	 
	 
	 
	 
	 

	Date:
	5/6/14
	 
	Date:
	5/6/2014

-7-

Steven Sterin
Celanese
Las Colinas Site

Re:    Agreement and General Release

Dear Steven,

This letter confirms that on May 5, 2014 I personally delivered to you the enclosed Agreement and General Release. You have until May 26, which is at least 21 days after receipt, to consider this Agreement and General Release, in which you waive important rights, including those under the Age Discrimination in Employment Act. To this end, we advise you to consult with an attorney of your choosing prior to executing this Agreement and General Release. 

Very truly yours,

/s/ Lori A. Johnston    
Lori Johnston

-1-

Exhibit A

Date: 

To: Mark C. Rohr

From: Steven Sterin 

Subject: Letter of Voluntary Resignation From Employment

Dear Mark:
The purpose of this letter is to inform you that I have decided to resign from employment with Celanese, effective ______________, 2014. 
 
Sincerely,

_______________
Steven M. Sterin

-2-

Exhibit B

May __, 2014

Lori Johnston
Celanese
222 W. Las Colinas Blvd.
Suite 900 N.
Irving, TX 75039

Re:    Agreement and General Release

Dear Lori:

On ______________, 2014 I executed an Agreement and General Release between Celanese and me. I was advised by Celanese, in writing, to consult with an attorney of my choosing, prior to executing this Agreement and General Release.  

I have at no time revoked my acceptance or execution of that Agreement and General Release and hereby reaffirm my acceptance of that Agreement and General Release. Therefore, in accordance with the terms of our Agreement and General Release, I hereby request payment of the Consideration described in Paragraph 3 of that Agreement.

Very truly yours,

____________________________
Steven Sterin 

-3-

Exhibit C

Summary of LTI Awards

-4-ex10-1.htm

Exhibit 10.1

 

OPTION AGREEMENT

DATED the 15th of July, 2014

BETWEEN:

XIMEN MINING CORP., a company with an office at 888 Dunsmuir Street, Suite 888, Vancouver BC, V6C 3K4

(the “Optionee”, or “XIMEN”)

AND:

NORTH BAY RESOURCES INC., a company with an office at 2120 Bethel Road, Lansdale, Pennsylvania, 19446

(“North Bay”)

WHEREAS:

 

	
A.  

	
North Bay is the registered and beneficial owner of a 100% interest in and to certain mineral claims located in the Province of British Columbia, as are more properly described in Schedule “A” attached hereto (the “Property”); and

 

	
B.  

	
North Bay wishes to grant, and the Optionee wishes to acquire, the exclusive right and option to earn up to an undivided 100% right, title and interest in and to the Property, subject to the terms and conditions contained herein.

NOW THEREFORE THIS AGREEMENT WITNESSES THAT, in consideration of the premises and of the mutual covenants herein set forth, the receipt and sufficiency of all of the foregoing being acknowledged by the parties hereto, the parties hereto do hereby mutually covenant and agree as follows:

 

ARTICLE 1  OPTION

 

1.1 Grant of Option.  North Bay hereby grants to the Optionee the sole and exclusive right and option (the “Option”), subject to the terms of this Agreement, to acquire, free and clear of all Encumbrances (as defined herein) except Permitted Encumbrances (as defined herein), an undivided 100% interest in and to:

 

	
(a)  

	
the Property; and

 

	
(b)  

	
any and all data, maps, surveys, technical reports and other information in relation to the Property (collectively, the “Data”).

 

For the purposes of this Agreement, “Encumbrances” means any and all rights and interests (whether actual or contingent), options, agreements, liens, pledges, mortgages, encroachments, encumbrances, deeds of trust, hypothecations, security interests, net profits interests, royalties or overriding royalty interests, other payments out of production, restrictions, easements, rights of way, or other burdens of any nature and “Permitted Encumbrances” means:

 

 

  

  

- 2 -

 

	
(a)  

	
easements, rights of way, servitudes and other similar rights in land (including without limitation rights of way and servitudes for highways and other roads, railways, sewers, drains, gas and oil pipelines, gas and water mains, electric light, power, telephone, telegraph and cable television conduits, poles, wires and cables) which do not materially impair the use of the Property affected thereby;

 

	
(b)  

	
the right reserved to or vested in any municipality or government or other public authority by the terms of any lease, license, franchise, grant or permit or by any statutory provision, to terminate any such lease, license, franchise, grant or permit or to require annual or other periodic payments as a condition of the continuance thereof;

 

	
(c)  

	
rights of general application reserved to or vested in any governmental authority to levy taxes on the or any of them or the income therefrom, and governmental requirements and limitations of general application as to production rates on the operations of any property; and

 

	
(d)  

	
statutory exceptions to title, and the reservations, limitations, provisos and conditions in any original grants from the Crown of any of the mines and minerals within, upon or under the Property.

 

1.2 Good Standing:  To maintain the Option in good standing, the Optionee shall:

 

	
(a)  

	
pay to North Bay an aggregate total amount of USD $300,000 in the amounts and times (the “Cash Payments”) as follows:

 

	
(i)  

	
upon five days from the date on which the Optionee receives all necessary written approvals of the TSX Venture Exchange with respect to the transactions contemplated hereunder this Agreement (the “Closing Date”), an amount of USD $100,000;

 

 

  

  

- 3 -

 

	
(ii)  

	
on or before the first sixth month anniversary of the Closing Date, an additional amount of USD $50,000;

 

	
(iii)  

	
on or before the second sixth month anniversary of the Closing Date, an additional amount of USD $50,000;

 

	
(iv)  

	
on or before the third sixth month anniversary of the Closing Date, an additional amount of USD $50,000;

 

	
(v)  

	
on or before the fourth sixth month anniversary of the Closing Date, an additional amount of USD $50,000;

 

	
(b)  

	
issue to North Bay the following amounts and by such dates of common shares in the capital of the Optionee (the “Consideration Shares”):

 

	
(i)  

	
Consideration Shares valued at $100,000 on or before that date which is five days from the date on which the Optionee receives all necessary written approvals of the TSX Venture Exchange with respect to the transactions contemplated hereunder this Agreement (the “Closing Date”), and

 

	
(ii)  

	
an additional $50,000 in Consideration Shares on or before the first sixth month anniversary of the Closing Date;

 

	
(iii)  

	
an additional $50,000 in Consideration Shares on or before the second sixth month anniversary of the Closing Date;

 

	
(iv)  

	
an additional $50,000 in Consideration Shares on or before the third sixth month anniversary of the Closing Date;

 

	
(v)  

	
an additional $50,000 in Consideration Shares on or before the fourth sixth month anniversary of the Closing Date;

 

1.3 Legending:  North Bay acknowledges and agrees that the Consideration Shares issuable hereunder shall be subject to such resale restrictions and legending requirements as are required under applicable securities laws and the policies of the TSX Venture Exchange and/or the OTCQX Exchange.

 

1.4 No Obligation:  North Bay acknowledges and agrees that no provision in this Agreement shall obligate the Optionee to issue any Consideration Shares or make any Cash Payments, and the Optionee may at any time and in its sole discretion terminate the Option and this Agreement by providing written notice.

 

ARTICLE 2  EXERCISE OF OPTION

 

2.1 Deemed Exercise:  In the event that the Optionee has issued all of the Consideration Shares and paid all of the Cash Payments required under Section 1.2, the Optionee shall without any further payment or action be deemed to have exercised the Option and to have acquired and be vested with an undivided 100% interest in and to the Property and the Data, free and clear of all Encumbrances except Permitted Encumbrances.

 

2.2 Transfer of Interest:  Within 10 days after the exercise of the Option pursuant to Section 2.1 herein, North Bay shall execute and deliver to the Optionee such deeds of transfer or other documents or assurances as the Optionee may request to convey, transfer and assign the legal title to an undivided 100% interest in and to the Property to the Optionee, and shall appoint the Optionee as its agent for the purpose of filing the same.  The Optionee shall be entitled to record the transfers contemplated hereby at its own cost with the appropriate government office.

 

ARTICLE 3  OPERATORSHIP, RIGHT OF ACCESS AND INTERIM OBLIGATIONS

 

3.1 Operatorship:  North Bay hereby grants to the Optionee, its employees, agents and independent contractors, the sole and, subject to Section 3.2, exclusive right and option to:

 

	
(a)  

	
enter upon and have immediate possession of the Property;

 

	
(b)  

	
carry out operations on the Property as the Optionee may in its sole discretion determine;

 

	
(c)  

	
bring and install on the Property and remove from time to time such buildings, plant, machinery, equipment, tools, appliances and supplies as the Optionee may deem necessary; and

 

  

  

- 4 -

 

	
(d)  

	
remove from the Property reasonable quantities of rocks, ores, minerals and metals and to transport the same for the purpose of sampling, testing and assaying.

 

3.2 Right of Access:  Subject to the Optionee’s exclusive rights set forth in Subsections 3.13.1(b), (c) and (d) herein, North Bay will continue to have a right of access to the Property, at its sole risk and expense. Notwithstanding the foregoing, until the expiry of the Option, North Bay shall not grant a right of access to conduct exploration activities or other operations on the Property to any other person without the Optionee’s prior written consent.

 

3.3 Interim Obligations of the Optionee:  The Optionee shall maintain the Property in good standing as required under applicable law, and shall conduct all operations in a proper and workmanlike manner.

 

3.4 Interim Obligations of North Bay:  North Bay shall:

 

	
(a)  

	
not enter into any agreement, right or option, present or future, contingent, absolute or capable of becoming an agreement, right or option, or which with the passage of time or the occurrence of an event could become an agreement, right or option to acquire any interest in and to the Property or the Data except as provided for under this Agreement;

 

	
(b)  

	
ensure that no Encumbrances shall be created or registered against the Property or any portion thereof without the Optionee’s prior written consent;

 

ARTICLE 4  REPRESENTATIONS AND WARRANTIES

 

4.1 Representations and Warranties of North Bay: North Bay hereby represents and warrants to the Optionee that:

 

	
(a)  

	
North Bay is the legal, registered, beneficial and exclusive owner of the Property, free and clear of all Encumbrances (including any royalty interest) except Permitted Encumbrances;

 

	
(b)  

	
to the best of its knowledge, the Property has been legally and validly staked and is in good standing in accordance with relevant governing bodies, statutes and regulations;

 

	
(c)  

	
to the best of its knowledge, there is no adverse claim or challenge against or to the ownership of or title to any of the Property, nor is there any basis therefor, and there are no outstanding agreements or options to acquire or purchase the Property or any portion thereof, and no person has any royalty, net profits or other interest whatsoever in production from any of the Property;

 

	
(d)  

	
North Bay has good and sufficient right and authority to grant the Option to the Optionee and to sell, transfer and assign to the Optionee an undivided 100% interest in and to the Property to free and clear of any Encumbrances except Permitted Encumbrances;to the best of its knowledge, all rights or powers necessary in, over or to the surface area of the Property to access the Property and to conduct exploration and mining activities on the Property may be obtained upon compliance with applicable regulations;

 

  

  

- 5 -

 

	
(e)  

	
all work or expenditure obligations applicable to the Property, all reports of work or expenditure and other requirements to be satisfied or filed to keep the Property in good standing which were to be satisfied by the date hereof have been satisfied or filed to the satisfaction of the applicable governmental authority;

 

	
(f)  

	
all rentals, taxes, assessments or other governmental charges applicable to, or imposed on, the Property which were due to be paid on or before the date hereof have been paid in full;

 

	
(g)  

	
any and all activities on or in respect to the Property conducted by North Bay, its representatives or, to the best of North Bay’s knowledge, its predecessors in title and the Property itself are in material compliance with all applicable laws;

 

	
(h)  

	
there are no outstanding, pending or, to the best of its knowledge, threatened, actions, suits or claims affecting or in respect of the Property or ownership of or title to the Property, or any part thereof;

 

	
(i)  

	
to the best of its knowledge, the Property does not lie within any protected area, rescued area, reserve, reservation, reserved area or special needs lands as designated by any governmental authority having jurisdiction that would impair exploration activities or development of a mining project on the Property;

 

	
(j)  

	
there are no orders or directions relating to environmental matters requiring any work, repairs, construction or capital expenditures with respect to the Property or the conduct of business related to the Property, nor, to the best of its knowledge, has any activity on the Property been in violation of any applicable environmental laws;

 

	
(k)  

	
there has been no material spill, discharge, leak, emission, ejection, escape, dumping or any release or threatened release of any kind, of any toxic or hazardous substance or waste (as defined by any applicable law) from, on, in or under the Property, except as expressly permitted or authorized under applicable laws;

 

	
(l)  

	
no toxic or hazardous substance or waste has been treated, disposed of or is located or stored on the Property as a result of activities of North Bay or, to the best of its knowledge, their predecessors in title or interest;

 

	
(m)  

	
to the best of its knowledge, there is no pending or ongoing claims or actions taken by or on behalf of any native or indigenous persons with respect to any lands included in the Property;

 

	
(n)  

	
the consummation of the transactions contemplated by this Agreement will not conflict with or result in any breach of any indenture, agreement or other instrument whatsoever to which North Bay is a party or by which North Bay is bound or to which North Bay 's interest in the Property may be subject;

 

	
(o)  

	
North Bay has obtained all corporate authorizations for the execution of this Agreement and for the performance of its obligations under this Agreement, and the consummation of the transactions contemplated by this Agreement will not conflict with or result in any breach of any indenture, agreement or other instrument whatsoever to which North Bay is a party or by which North Bay is bound or to which North Bay's interest in the Property may be subject;

 

  

  

- 6 -

 

	
(p)  

	
North Bay is unaware of any facts or circumstances that have not been disclosed in this Agreement which should be disclosed by it to the Optionee in order to prevent the representations and warranties made by it to the Optionee in this Agreement from being materially misleading.

 

4.2 Survival: The representations, warranties and covenants contained in section 4.1 are provided for the exclusive benefit of the Optionee, and any misrepresentation or breach of warranty may be waived by the Optionee in whole or in part at any time without prejudice to its rights in respect of any other misrepresentation or breach of the same or any other representation or warranty; and the representations, warranties and covenants contained in section 4.1 shall survive the execution and performance of this Agreement. The representations, warranties and covenants hereinbefore set out are conditions on which the parties have relied in entering into this Agreement and shall survive the acquisition of any interest in the Property by the Optionee and North Bay shall indemnify and save the Optionee, its directors, officers, employees and agents (collectively, the "Ximen Indemnifiees") harmless from any and all claims, actions, suits, proceedings, demands, assessments, judgments, losses, damages, liabilities expenses, costs (including all reasonable legal fees) to which the Ximen Indemnifiees may, jointly or severally, be put or suffer as a result of or arising from any breach of any representation, warranty, covenant, agreement or condition made by North Bay and contained in this Agreement.

 

4.3 Representations and Warranties of the Optionee:  The Optionee represents and warrants to North Bay that:

 

	
(a)  

	
it validly exists as a corporation in good standing under the laws of the jurisdiction of its incorporation;

 

	
(b)  

	
it has duly obtained all corporate authorizations for the execution of this Agreement and for the performance of this Agreement by it;

 

	
(c)  

	
the common shares in the capital of the Optionee (the " Ximen Shares") are listed for trading on the TSX Venture Exchange, and the Optionee will use its commercially reasonable efforts to obtain all required regulatory approvals and acceptances for the transactions contemplated by this Agreement.

 

4.4 Survival: The representations and warranties contained in section 4.3 are provided for the exclusive benefit of North Bay and a misrepresentation or breach of warranty may be waived by North Bay in whole or in part at any time without prejudice to its rights in respect of any other misrepresentation or breach of the same or any other representation or warranty; and the representations and warranties contained in section 4.3 shall survive the execution hereof.  The representations and warranties hereinbefore set out are conditions on which the parties have relied in entering into this Agreement and the Optionee shall indemnify and save North Bay harmless from any and all claims, actions, suits, proceedings, demands, assessments, judgments, losses, damages, liabilities expenses, costs (including all reasonable legal fees) to which North Bay may be put or suffer as a result of or arising from any breach of any representation, warranty, covenant, agreement or condition made by the Optionee and contained in this Agreement.

 

  

  

- 7 -

 

ARTICLE 5  DUE DILIGENCE AND CONDITIONS PRECEDENT

 

5.1 Due Diligence:  Upon execution of this Agreement, North Bay shall deliver or cause to deliver to the Optionee all information in its possession or control, whether in tangible or electronic form, relating to the Property, true copies of all the mineral rights comprising the Property and all maps, assays, surveys, drill logs, samples, metallurgical, geological, geophysical, geochemical and engineering data (whether in tangible or electronic form) in respect of the Property.  North Bay shall also ensure that the Optionee has full access to the Property to conduct investigations as the Optionee sees fit.

 

5.2 Conditions Precedent: The parties acknowledge and agree that the completion of the transactions contemplated hereunder is subject to:

 

	
(a)  

	
prior approval of the TSX Venture Exchange;

 

	
(b)  

	
the parties receiving all other necessary third party consents or approvals with respect to the transactions contemplated hereunder including any consent or approval that is required under applicable law, by virtue of a condition or covenant of any mining claim forming part of the Property;

 

	
(c)  

	
the representations and warranties of each of the parties hereunder being true as at the Closing Date; and

 

	
(d)  

	
the Optionee being satisfied with its due diligence review pursuant to section 5.1 herein and reasonably determining that there are no material inaccuracies or omissions in the information furnished, and that there are no issues that arise as a result of the due diligence investigation or otherwise that would cause the Optionee, in its sole discretion and for any reason whatsoever, not to want to proceed with the transactions contemplated herein.

 

5.3 Waiver:  The condition precedent described in Subsection 5.2(d) is for the benefit of the Optionee and cannot be waived unless agreed to in writing by the Optionee in its sole discretion.

 

ARTICLE 6  TERMINATION

 

6.1 Termination:  This Agreement may be terminated prior to the exercise of the Option:

 

	
(a)  

	
upon mutual agreement of the parties;

 

	
(b)  

	
by North Bay if:

 

	
(i)  

	
the Optionee is in default of its obligations under this Agreement and North Bay has provided written notice (a “Default Notice”) to the Optionee of such default; and

 

	
(ii)  

	
the Optionee remains in default of such obligations after 30 days from its receipt of the Default Notice;

 

	
(c)  

	
by the Optionee pursuant to Section 1.4 herein;

 

  

  

- 8 -

 

	
(d)  

	
by either party if the Optionee has not received all required approvals from the conditions precedent described in Section 5.2 are not satisfied or otherwise waived on or before August 14, 2014.

 

6.2 Survival:  Article 8 shall survive any termination of this Agreement.

 

ARTICLE 7  SURRENDER OF PROPERTY INTERESTS

 

7.1 Surrender:  The Optionee may at any time prior to exercising the Option elect to abandon any one or more of the mineral claims comprised in the Property by giving notice to North Bay of such intention.  For a period of 30 days after the date of delivery of such notice North Bay may elect to have any or all of the mineral claims in respect of which such notice has been given transferred to it by delivery of a request therefor to the Optionee, whereupon the Optionee will deliver to North Bay a quit claim deed or other required form of transfer or assurance in registrable form transferring such mineral claims to North Bay.  If North Bay fails to make request for the transfer of any mineral claims as aforesaid within such 30 day period, the Optionee may then abandon such mineral claim without further notice to North Bay.  Upon any such transfer or abandonment the mineral claims so transferred or abandoned will for all purposes of this Agreement cease to form part of the Property.

 

ARTICLE 8  CONFIDENTIALITY

 

8.1 Confidentiality:  Except as otherwise provided in this Agreement, each party agrees that without the prior written consent of the other party, it will treat as confidential and prevent disclosure to any third parties of any geological, geophysical or other factual and technical information and data relating to the Property or activities related to the Property.  This obligation shall be a continuing obligation of each party throughout the term of this Agreement and for a period of two years following termination of this Agreement.  Except as expressly provided herein, each of the parties shall be entitled to all information respecting the Property or activities related to the Property, including copies of all maps, data and reports which can be reproduced and which have not previously been furnished to the party.

 

8.2 Exceptions:  The consent required by section 8.1 shall not apply to a disclosure:

 

	
(a)  

	
to an affiliate, consultant, contractor, or subcontractor that has a bona fide need to be informed;

 

	
(b)  

	
to a governmental agency or to the public which the disclosing party believes in good faith is required by pertinent law or regulation or the rules or policies of any stock exchange or securities regulatory authority;

 

	
(c)  

	
information which is or becomes part of the public domain other than through a breach of this Agreement; or

 

	
(d)  

	
information lawfully received by a party or an affiliate from a third party not under an obligation of secrecy to the other party.

 

ARTICLE 9  GENERAL

 

9.1 Force Majeure: In the event that the Optionee is at any time prevented from or delayed in complying with any provisions of this Agreement by reason of strikes, lock-outs, labour shortages, power shortages, fuel shortages, fires, wars, inclement weather, acts of God, governmental regulations restricting normal operations, shipping delays, delays in obtaining required governmental, aboriginal or regulatory approvals or permits, aboriginal land claims, environmental claims or notices (or inability to obtain or delays in obtaining environmental consents) or any other reason or reasons (other than lack of funds) beyond the control of the Optionee, the time limited for the performance by the Optionee of its obligations hereunder shall be extended by a period of time equal in length to the period of each such prevention or delay. The Optionee shall give prompt notice to North Bay of each event of force majeure under this section 9.1 and upon cessation of such event shall furnish North Bay with notice to that effect together with particulars of the number of days by which the obligations of the Optionee hereunder have been extended by virtue of such event of force majeure and all preceding events of force majeure.

 

  

  

- 9 -

 

9.2 Notice: Each notice, demand or other communication required or permitted to be given under this Agreement shall be in writing and shall be sent by prepaid registered mail addressed to the party entitled to receive the same, or delivered to such party by hand, or communicated by telex or telecopy, at the address for such party specified above. The date of receipt of any notice, demand or other communication shall be the date of delivery thereof if delivered, the date of transmission if communicated by fax, or, if given by registered mail as aforesaid, shall be deemed conclusively to be the third day after the same shall have been so mailed except in the case of interruption of postal services for any reason whatever, in which case the date of receipt shall be the date on which the notice, demand or other communication is actually received by the addressee.  Either party may at any time and from time to time notify the other party in writing of a change of address and the new address to which notice shall be given to it thereafter until further change.

 

9.3 Entire Agreement:  This Agreement supersedes and replaces all other agreements or arrangements, whether oral or written, heretofore existing between the parties in respect of the subject matter of this Agreement.

 

9.4 No Waiver:  No consent or waiver, expressed or implied, by either party in respect of any breach or default by the other in the performance by such other of its obligations hereunder shall be deemed or construed to be a consent to or a waiver of any other breach or default.

 

9.5 Further Assurances:  The parties will promptly execute or cause to be executed all documents, deeds, conveyances and other instruments of further assurance and to perform such other acts which may be reasonably necessary or advisable to carry out fully the intent of this Agreement or to record wherever appropriate the respective interests from time to time of the parties in the Property.

 

9.6 Jurisdiction:  This Agreement will be interpreted in accordance with and governed by the laws of the Province of British Columbia, and all references herein to monetary amounts are references to United States dollars.

 

9.7 No Assignment:  Neither party shall assign its interest in this Agreement without the prior written consent of the other party.

 

9.8 Enurement:  This Agreement shall enure to the benefit of and be binding upon the parties and their respective successors and permitted assigns.

 

  

  

- 10-

 

9.9 Recording of this Agreement:  Either party may, in its sole discretion, record this Agreement or a memorandum of this Agreement in the office of any applicable governmental authority in order to give notice to third persons of this Agreement, and each of the parties agrees to execute all such documents as are necessary to perfect such recording.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

 

 

 

  

  

- 11 -

 

9.10 Counterparts:  This Agreement and any instrument or document in furtherance of this Agreement may be executed in several counterparts, each of which shall be deemed to be an original and such counterparts together shall be but one and the same instrument.

 

DATED as of the date first written above.

	
XIMEN MINING CORP.,

PER:

 

/s/ Christopher R. Anderson

	  	
NORTH BAY RESOURCES INC.

PER:

 

/s/ Perry Leopold

	
Authorized signatory

Print Name: Christopher R. Anderson

Title: President

	  	
Authorized signatory

Print Name: Perry Leopold

Title: CEO

  

  

  

 

SCHEDULE A

PROPERTY

 

	
Tenure Number

	
Type

	
Claim Name

	
Good Until

	
Area (ha)

	
578838

	
Mineral

	
BOULEAU

	
20160301

	
20.6586

	
579151

	
Mineral

	
SIWASH

	
20160301

	
20.6461

	
601505

	
Mineral

	
BOULEAU 2

	
20160301

	
41.3046

	
733522

	
Mineral

	
BOULEAU CK

	
20160301

	
433.7778

	
737043

	
Mineral

	
BOULEAU N

	
20160301

	
371.657

	
739282

	
Mineral

	
SIWASH 2

	
20160301

	
61.9346

	
739502

	
Mineral

	
BRETT WEST

	
20180117

	
186.0219

	
739522

	
Mineral

	
BRETT NW

	
20180117

	
61.9877

	
1010825

	
Mineral

	
BRETT W2

	
20180117

	
247.9811

	
1010835

	
Mineral

	
BRETT SW

	
20141006

	
186.0543

	
1010947

	
Mineral

	
BRETT NW2

	
20180117

	
82.6568

	
1013861

	
Mineral

	
BRETT SE

	
20141008

	
124.0363

	
1028277

	
Mineral

	
BOULEAU E

	
20150514

	
206.6596

	
Total Area: 2045.3764 ha

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00233-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00233-of-00352.parquet"}]]