Document:

Exhibit
10.56

 

OPTION
AGREEMENT UNDER THE

FIRST
WIND HOLDINGS INC. 2010 LONG TERM INCENTIVE PLAN

 

OPTION AGREEMENT (this “Agreement”)
granted effective as of [ ], 2010, by First Wind Holdings Inc., a corporation
organized under the laws of the State of Delaware (the “Company”), to
                                           
(the “Grantee”), who has been designated as a Grantee under and in
accordance with the terms of the First Wind Holdings Inc. 2010 Long Term
Incentive Plan (such plan, as it may be amended from time to time, to be
referenced as the “Plan”).

 

Number of Shares:
                              

 

Option Exercise Price:
                              

 

Exercise Schedule:

 

	
  Date Exercisable

  	
   

  	
  Aggregate Number of Shares Exercisable

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

SECTION 1.                                Stock
Option Grant.

 

Subject to the terms and
conditions hereinafter set forth, First Wind Holdings Inc. (the “Company”)
has granted the Grantee stock options (the “Options”) to purchase the
number of shares Class A Common Stock, $0.001 par value per share, of the
Company (the “Stock”), set forth above. The option exercise price of
each such Option is set forth above (the “Option Price”). The Options
are subject to all the terms and provisions of the First Wind Holdings Inc.
2010 Long Term Incentive Plan (such plan, as it may be amended from time to
time, to be referenced as the “Plan”), including any rules and
regulations established under the Plan. If there is any inconsistency between
this Agreement and the terms of the Plan, the terms of the Plan shall govern.
Capitalized terms not otherwise defined herein shall have the meanings set
forth for such terms in the Plan. The Options are not intended to be incentive
stock options under the Code.

 

SECTION 2.                                When
Option Is Exercisable.

 

Subject to the provisions of
Sections 4 below, the Options shall vest and become exercisable in accordance
with the exercise schedule set forth above; provided that in no

 

 

event shall the Options be
exercisable in whole or in part ten (10) years from the date hereof (the “Option
Term”). In addition, in the event of a Change in Control of the Company,
unless the acquiring entity agrees to honor or assume the Options on the terms
and conditions required under the Plan, the Options shall become exercisable in
accordance with the terms of the Plan. Once vested in accordance with the
provisions of this Agreement, the Options may be exercised, in whole or in
part, at any time and from time to time prior to the date such Options
terminate as provided in this Agreement.

 

SECTION 3.                                Exercise.

 

Subject to the provisions of
Section 4, vested Options may be exercised in whole or in part at any time
during the Option Term, by giving written notice of exercise to the Company
specifying the number of shares of Stock as to which the Option is being
exercised. Without limiting the generality of the foregoing, payment of the
Option Price with respect any portion of any Option being exercised may be
made: (i) in cash or its equivalent; (ii) by exchanging
shares of Stock owned by the Grantee (which are not the subject of any pledge
or other security interest); (iii) through an arrangement with a
broker approved by the Company whereby payment of the exercise price is
accomplished with the proceeds of the sale of Stock; or (iv) by any
combination of the foregoing, provided that the combined value of all cash and
cash equivalents paid and the Fair Market Value of any such Stock so tendered
to the Company, valued as of the time of such tender, is at least equal to such
Option Price multiplied by the number of shares of Stock for which the Option
is being exercised. In addition, the Committee may permit any Option to be
exercised without payment of the purchase price, in which case the Company’s
sole obligation shall be to issue to the Grantee the same number of shares of
Stock as would have been issued had such Option been Stock Appreciation Rights
in respect of an identical number of shares of Stock. A Grantee shall not have
any rights to dividends or other rights of a shareholder with respect to shares
subject to the Option until the Grantee has exercised such Option by paying for
the shares being exercised (or the Company has elected to net settle such
Option) in accordance with this Section 3.

 

SECTION 4.                                Termination
of Options.

 

(a)                                  General
Rule. Except as otherwise provided in this Section 4,
if (i) the Grantee ceases to provide services to the Company or one
of its Subsidiaries; (ii) the Grantee becomes an employee of an
entity that does not qualify as a Subsidiary under the Plan; or (iii) the
Grantee takes a leave of absence without reinstatement rights, unless otherwise
agreed in writing between the Company or one of its Subsidiaries and the
Grantee, any unvested Options shall thereupon terminate and any vested Options
may thereafter be exercised, to the extent they were exercisable at the time of
termination, solely (i) for a period of ninety (90) days from the date of
such termination of service or (ii) until the expiration of the Option
Term, whichever period is shorter.

 

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(b)                                 Death. If the
Grantee’s service with the Company (or any Subsidiary) terminates by reason of
death, the vesting of the Options shall be accelerated and the Options shall
remain exercisable until (i) the eighteenth (18th) month anniversary of the
Grantee’s death or (ii) the expiration of the Option Term,
whichever is earlier.

 

(c)                                  Disability. If the
Grantee’s service with the Company (or any Subsidiary) terminates by reason of
Disability, the Options shall continue to vest in accordance with their terms
and any vested Options may be exercised, in each case, until (i) the
eighteenth (18th) month
anniversary of the Grantee’s termination of service or (ii) the
expiration of the Option Term, whichever is earlier; provided, however,
that if the Grantee dies after such termination due to Disability and during
the period specified in this Section 4(c), the vesting of the Options
shall be accelerated and the Options shall remain exercisable until the later
of (x) the date otherwise determined under this Section 4(c) or
(y) the first anniversary of the date of the Grantee’s death.

 

(d)                                 Normal
or Early Retirement. If the Grantee’s
service with the Company (or any Subsidiary) terminates by reason of Normal or
Early Retirement, the Options shall continue to vest in accordance with their
terms and any vested Options may be exercised, in each case, until (i) eighteen
(18) moths following the Grantee’s termination of service or (ii) the
expiration of the Option Term, whichever is earlier; provided, however,
that in the event the Grantee’s service terminates by reason of Early or Normal
Retirement during the period specified in this Section 4(d) and the
Grantee violates his obligations under Section 7(a) hereof, the
Company reserves the right, upon notice to the Grantee, to declare that the
Options shall be forfeited and of no further validity; and provided, further,
that if the Grantee dies after Retirement and during the period specified in
this Section 4(d), the vesting of the Options shall be accelerated and
Options shall remain exercisable until the later of (x) the date
otherwise determined under this Section 4(d) or (y) the
first anniversary of the date of the Grantee’s death;

 

(e)                                  Cause.
If the Grantee’s service with the Company and each Subsidiary to which
the Grantee provides services is involuntarily terminated by the Company and
each such Subsidiary for Cause, all of the Grantee’s Options, whether or not
then vested and exercisable, shall terminate upon the Grantee’s termination of employment.

 

SECTION 5.                                Adjustments
in Common Stock.

 

In the event of a merger,
reorganization, consolidation, recapitalization, stock dividend, stock split,
extraordinary cash dividend, other change in corporate structure affecting the
Stock, or other event or transaction of a similar nature that results in a
material change in the value of the Stock, appropriate adjustments may be made
by the Committee in the number of shares, class or classes of securities and
the Option Price applicable in respect to the Options subject to this
Agreement.

 

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SECTION 6.                                Non-Transferability
of Options.

 

Unless the Committee shall
permit (on such terms and conditions as it shall establish), the Options may
not be transferred except by will or the laws of descent and distribution to
the extent provided herein. During the lifetime of the Grantee the Options may
be exercised only by him or her (unless otherwise determined by the Committee).

 

SECTION 7.                                Restrictive
Covenants; Release.

 

(a)                                  Covenant
Not to Compete. In
consideration of the receipt of the Options granted pursuant to this Agreement
and of the Grantee’s privilege to participate in the Plan, the Grantee hereby
agrees that while the Grantee is providing services to the Company or any
Subsidiary and for a period of two years after the last date of the Grantee’s
service for any of the Company or any of its Subsidiaries, the Grantee shall
not compete with the wind energy development, ownership and operation engaged
in or expected to be engaged in by the Company or any of its Subsidiaries (the “Business”),
as such Business exists at any time during the term of the Agreement, within
the United States of America (including its territories and possessions),
Canada or Mexico (the “Territories”), either directly or indirectly,
whether

 

(i)                                     by conducting
or supporting a business or enterprise in the Business, whether in a
managerial, operational, financial or other manner;

 

(ii)                                  by directly or
indirectly participating in another business or enterprise in the Business;

 

(iii)                               by employment,
consultancy, serving on a board of directors or similar governing body, or any
other technical, commercial or other activity with another business or
enterprise in the Business (other than teaching or serving in an advisory,
regulatory, or legislative entity or a trade association);

 

(iv)                              by inducing any
utility, any governmental authority or any customer, supplier, licensee,
licensor, co-developer, contractor or other business relation of or with the
Company or any of its Subsidiaries to cease doing business with the Company or
any such Subsidiary, or in any way interfere with the relationship between any
such utility, governmental authority, customer, supplier, licensee, licensor,
co-developer, contractor or other business relation and the Company or any such
Subsidiary;

 

(v)                                 by soliciting
or hiring employees of the Company or any such Subsidiary for another business;
and

 

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(vi)                              by challenging
any of the intellectual property rights or the know-how that is material for
the Business of the Company but not protected by registered intellectual
property rights or applications therefor;

 

provided, however,
that the covenant in this Section 7(a) shall not apply to (x) activities
engaged in as a manager, officer, director, employee, contractor, consultant,
or direct or indirect equity owner of the Company or any of its Subsidiaries
(to the extent that such activities are conducted for the benefit of the
Company or any of its Subsidiaries) and may be waived at any time by the
Company for specific activities, but any such waiver shall be restricted to the
specific activity to which it expressly relates and only for the duration of
the relevant contract; or (y) the passive holding of shares in
companies listed on a stock exchange, provided that such holding does not
exceed one (1) percent of the aggregate issued and outstanding shares of
the relevant company.

 

(b)                                 Confidentiality. The Grantee
agrees that during, and at any time after, the period during which the Grantee
is providing services to the Company or any of its Subsidiaries the Grantee
shall keep in confidence and trust all Confidential Information, and shall not
use or disclose any such Confidential Information without the prior written
consent of the Company, except as may be necessary in the ordinary course of
performing the Grantee’s duties to the Company or any of its Subsidiaries.

 

As used in this Agreement, “Confidential
Information” means non-public information belonging to the Company,
including, without limitation, financial information, reports, wind data and
energy production forecasts; inventions, improvements and other intellectual
property; trade secrets; know-how; designs, processes or formulae; software;
market or sales information or plans; customer lists; and business plans,
prospects and opportunities, in each case, whether such information is
developed by the Grantee in the course of the Grantee’s service with the
Company or any of its Subsidiaries or the Grantee had access to such
information as a result of the Grantee’s service with the Company or any of its
Subsidiaries. Notwithstanding the foregoing, Confidential Information shall not
include information (i) in the public domain, unless due to breach
of the Grantee’s duties under this Section 7(b), (ii) obtained
by the Grantee from a third party prior to, or after the termination of, the
Grantee’s service with the Company and each of its Subsidiaries, (iii) independently
developed by the Grantee prior to, or after the termination of, the Grantee’s
service with the Company and each of its Subsidiaries, or (iv) required
to be disclosed by the Grantee by legal or regulatory process.

 

(c)                                  Property. The Grantee
agrees that all documents, records, data, apparatus, equipment and other
physical property, whether or not pertaining to Confidential Information, which
are furnished to the Grantee by the Company or any of its Subsidiaries or are
produced by the Grantee in connection with the Grantee’s service with the
Company or any of its Subsidiaries, shall be and remain the sole property of
the Company. The Grantee shall return to the Company all such materials and
property as

 

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and when requested by the
Company. In any event, the Grantee shall return all such materials and property
immediately upon termination of the Grantee’s service for any reason. The
Grantee shall not retain with the Grantee any such material or property or any
copies thereof after such termination. Notwithstanding the foregoing, the
Grantee shall have access to such documents and records at reasonable times and
upon reasonable notice to the Company, in the event of a dispute between the
Company and the Grantee to which such documents and records are reasonably
related.

 

(d)                                 Business
Time. The Grantee shall devote 100% of the Grantee’s
business time to the business and affairs of the Company.

 

(e)                                  Potential
Unenforceability of Section 7(a) and Section 7(b). Although the
Grantee and the Company consider the restrictions contained in Section 7(a) and
Section 7(b) to be reasonable, if a final, non-appealable judicial
determination is made by a court of competent jurisdiction that the time or
territory or any other restriction contained in Section 7(a) or Section 7(b) is
an unenforceable restriction against the Grantee, neither this Agreement nor
the provisions of Section 7(a) and Section 7(b) shall be
rendered void, but shall be deemed amended as to such restriction as such court
may judicially determine or indicate to be reasonable or, if such court does
not so determine or indicate, to the maximum extent that any pertinent statute
or judicial decision may indicate to be a reasonable restriction under the
circumstances.

 

(f)                                    Specific
Performance. Recognizing that irreparable damage shall result
to the Company in the event of a breach or threatened breach by the Grantee of
any of the covenants and assurances contained in this Section 7, and that
the Company’s remedies at law for any such breach or threatened breach shall be
inadequate, the Company and its successors and permitted assigns, in addition
to such other remedies that may be available to them, are entitled to, and the
Grantee agrees not to oppose the propriety of the Company’s request for, an
injunction (as distinct from remedies at law), including a mandatory
injunction, to be issued by any court of competent jurisdiction ordering
compliance with this Agreement or enjoining and restraining the Grantee, and
each and every person or entity acting in concert or participation with the
Grantee, from the continuation of such breach. For the purpose of clarity, the
Grantee may oppose on the merits the Company’s request for such an injunction.
The covenants and obligations of the Grantee set forth in this Section 7
are in addition to and not in lieu of or exclusive of any other obligations and
duties of the Grantee to the Company, whether express or implied in fact or in
law.

 

(g)                                 Prior
Covenants. The covenants set forth in this Section 7 shall
supersede and replace any covenants related to the same subject matter
contained in any agreement entered into prior to the date hereof between the
Grantee and the Company (or any predecessor in interest to the Company) in
connection with the grant to the Grantee of Series B Units in First Wind
Holdings LLC.

 

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SECTION 8.                                Miscellaneous.

 

(a)                                  General. The Options (i) shall
be binding upon and inure to the benefit of any successor of the Company, (ii) shall
be governed by the laws of the State of Delaware, and any applicable laws of
the United States, and (iii) may not be amended without the written
consent of both the Company and the Grantee. Notwithstanding the foregoing,
this Agreement may be amended from time to time without the written consent of
the Grantee as permitted by the Plan (or its successor). No contract or right
of employment or other right to provide services to or for the Company or any
of its Subsidiaries shall be implied by the Options.

 

(b)                                 Entire
Agreement. This Agreement, together with the Plan,
constitutes the entire agreement with respect to the Options granted hereunder.

 

(c)                                  Corporate
Reorganization. If the Options are assumed or new options are
substituted therefor in any corporate reorganization (including, but not
limited to, any transaction of the type referred to in Section 424(a) of
the Internal Revenue Code of 1986, as amended), service with such assuming or
substituting Company or by a parent Company or a subsidiary thereof shall be
considered for all purposes of these Options to be service with the Company.

 

(d)                                 Withholding. The Company
may require the Grantee to remit to the Company an amount in cash sufficient to
satisfy any applicable U.S. federal, state and local and non-U.S. tax
withholding or other similar charges or fees that may arise in connection with
the grant, vesting, exercise or purchase of the Options.

 

(e)                                  Section and
Other Headings, etc. The section and other
headings contained in this Agreement are for reference purposes only and shall
not affect the meaning or interpretation of this Agreement.

 

(f)                                    Counterparts. This
Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original and all of which together shall constitute one and the
same instrument.

 

SECTION 9.                                Securities
Law Requirements.

 

The Company shall not be
required to issue shares of Stock upon the exercise of the Options unless and
until (a) such shares have been duly listed upon each stock
exchange on which the Company’s Stock is then registered and (b) a
registration statement under the Securities Act of 1933 with respect to such
shares is then effective. The Committee may require the Grantee to furnish to
the Company, prior to the issuance of any shares of Stock in connection with
the exercise of the Options, an agreement, in such form as the Committee may
from time to time deem appropriate, in which the

 

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Grantee represents that the
shares acquired by him upon such exercise are being acquired for investment and
not with a view to the sale or distribution thereof.

 

IN WITNESS WHEREOF, the
Company has executed this Agreement as of the day and year first above written.

 

 

	
   

  	
   

  	
  FIRST WIND HOLDINGS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Grantee

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

8ex10x10.htm

Exhibit 10.10

 

AMENDED AND RESTATED

EXECUTIVE EMPLOYMENT AGREEMENT

This Amended and Restated Employment Agreement ("Agreement") is effective as of July 1, 2010 between Gold Resource Corporation, a Colorado corporation (the “Company”), and William W. Reid (the “Executive”) (collectively, the “Parties”) and supercedes all prior contracts or agreements with respect to the Company, whether oral or written.

W I T N E S S E T H:

WHEREAS, the Company wishes to engage the Executive’s services upon the terms and conditions hereinafter set forth; and

WHEREAS, the Executive wishes to be employed by the Company upon the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the premises and mutual promises set forth below, the sufficiency of which is hereby acknowledged, the Parties agree as follows:

1.           Employment; Duties.  The Company hereby agrees to employ the Executive effective as of the date first above written (the “Effective Date”) as its Chief Executive Officer, and the Executive hereby agrees to serve in such capacity.  The Executive’s principal area of responsibility shall be to serve as the chief executive officer of the Company, and discharge the duties incident to that office.  In addition, the Executive shall preside at all meetings of the Board of Directors, and shall have general management responsibility for the Company as necessary and appropriate for the conduct of the business and affairs of the Company.  The Executive shall at all times report to and take direction from the Board of Directors of the Company (the “Board of Directors”), and shall perform such additional duties, not inconsistent with his position, as shall be designated from time to time by the Company.

2.           Best Efforts.  The Executive agrees to use his best efforts to promote the interests of the Company and shall, except for illness, reasonable vacation periods and leaves of absence, devote his full business time and energies to the business and affairs of the Company.  The Executive shall be permitted to perform material outside business endeavors only with the approval of the Board of Directors, provided that such outside activities do not interfere with the performance of the Executive’s duties.  The Executive may also engage in work for charitable, benevolent, civic or educational purposes so long as such endeavors do not interfere with the Executive’s duties hereunder.

3.           Term of Agreement.  The term of this Agreement shall commence on the Effective Date and such term and the employment hereunder shall continue, unless earlier terminated in accordance with the provisions of Section 5, for a period of three years (the “Original Term”).  On each anniversary of this Agreement, the term of the Employee’s employment shall be automatically extended one additional year  unless, prior to 120 days before  such anniversary, the Employer shall have delivered to the Employee or the Employee shall have delivered to the Employer written notice that the term of the Employee’s employment hereunder will not be extended.   The period of employment of the Executive by the Company, commencing with the Effective Date and continuing until termination of the employment by expiration or notice hereunder, in accordance with Section 5 or otherwise, shall be known as the “Term of Employment.”

 

 

  

  

  

4.            Compensation.

4.1           Base Salary.  As compensation for the Executive’s services rendered hereunder, the Company shall pay to the Executive a base salary at an annual rate equal to six hundred thousand dollars ($600,000) (the “Base Salary”). The Base Salary shall be payable to the Executive on a monthly basis in accordance with the Company’s standard policies for management personnel.

4.2           Incentive Compensation.  With respect to each calendar year, or portion thereof, beginning with calendar year 2006, the Executive shall be eligible to receive incentive compensation, including but not limited to, bonuses, stock options and other perquisites provided by the Company to executives with comparable authority or duties (and in any event, not lesser than those provided to executives with junior authority or duties), payable solely in the discretion of the Board of Directors.

4.4           Benefits.  The Executive shall be entitled to participate in all benefit programs established by the Company and generally applicable to the Company’s executives, including group health and life insurance and vacation pay.  The Executive shall also be reimbursed for reasonable and necessary business expenses incurred in the course of his employment with the Company pursuant to Company policies established from time to time.  Reimbursement shall be made to the extent such expenses are deductible by the Company in accordance with applicable Internal Revenue Service rules.  The Employee shall be entitled to 5 weeks of paid vacation per year and all paid holidays.

4.5           Cellular Phone.  The Company shall, during the Term of Employment, provide the Executive with and pay for the Executive’s use of a cellular phone for business and reasonable personal use.

4.6           Office, Equipment and Assistance.   The Company shall provide for the Executive all facilities, equipment and services suitable to his position and adequate for the performance of his duties.  The Executive will be required to perform the services and duties described in Section 1 primarily at the Naples and Colorado Springs location of the Company.

5.             Termination of Employment Relationship.

5.1           Death.  This Agreement shall terminate immediately upon the death of the Executive.  In such event, Employer shall pay Employee’s estate an amount equal to one year’s Base Salary, such amount being payable within three months after his death.

 

 

  

  

  

5.2           Disability.  This Agreement shall not terminate upon the temporary disability of the Employee, but the Employer may terminate this Agreement upon permanent disability of the Employee.   In such event, Employer shall pay Employee an amount equal to two years Base Salary, such amount being payable within three months after such termination, such amount being reduced by any disability insurance thereafter to be received by Employee for which the Employer pays all the premiums and of which Employee is the beneficiary. The Board of Directors shall make a determination of the Total Disability of the Executive based upon the definition of disability contained in any disability insurance policy owned by the Company and insuring against the disability of the Executive, and if the Company does not have such a policy, then by reference to any policy owned by the Executive.  If no such policy exists or if such policy does not comply with the provisions of Section 409A, Total Disability shall be based upon the inability of the Executive to engage in substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.  Any such determination by the Board of Directors shall be evidenced by its written opinion delivered to the Executive.  Such written opinion shall specify with particularity the reasons supporting such opinion and be manually signed by at least a majority of the Board of Directors.

5.3           Termination by the Company.  This Agreement may be terminated by the Company for “Cause” and, in such event, the term of employment shall terminate at the termination date designated by the Company.  For the purpose of this paragraph, “Termination for Cause” or “Cause” shall include the following:

(a)           A finding by a court of breach of fiduciary duty or conviction of criminal conduct by the Executive, in either case after all rights of appeal have expired or such appeals have been exhausted,  having the effect of materially adversely affecting the Company and/or its reputation;

(b)           Failure by the Executive to substantially perform his duties hereunder;

(c)           Engagement by the Executive in the use of narcotics or alcohol to the extent that the performance of his duties is materially impaired;

(d)           Material breach of the terms of this Agreement by the Executive or failure to substantially comply with proper instructions of the Board of Directors;

(e)           Willful misconduct by the Executive which is materially injurious to the Company, other than business decisions made in good faith; or

(f)           Any act or omission on the part of the Executive not described above, but which constitutes material and willful misfeasance, malfeasance, or gross negligence in the performance of his duties to the Company.

5.4           Termination by the Executive.  The Executive may terminate this Agreement for “Good Reason.”  For purposes of this paragraph, Good Reason shall mean:

(a)           Any assignment to the Executive of any duties materially inconsistent with the position described in Section 1 hereof;

 

 

  

  

  

(b)           Any material diminution of the duties of the Executive then-existing without the written consent of the Executive;

(c)           Any removal of the Executive from, or failure to re-elect the Executive to, the positions described in Section 1 hereof without the Executive’s written consent, except in connection with termination of the Executive pursuant to Section 5.1 or 5.2 hereof;

(d)           A reduction in the Executive’s rate of compensation, or a reduction in the Executive’s fringe benefits, moving the Company’s headquarters from Naples and Colorado Springs or any other failure of the Company to comply with Section 4 of this Agreement;

(e)           Other material breach of this Agreement by the Company; or

(f)            Following a “Change in Control,” defined below.

A “Change of Control” shall be deemed to have occurred if (i) a tender offer shall be made and consummated for the ownership of 50% or more of the outstanding voting securities of the Company; (ii) the sale of 30% or more of the outstanding voting securities of the Company in a single transaction or a series of transactions occurring during a period of not more than twelve months; (iii) the Company shall be merged or consolidated with another corporation and as a result of such merger or consolidation less than 50% of the outstanding securities of the surviving or resulting corporation shall be owned in the aggregate by the former shareholders of the Company, as the same shall have existed immediately prior to such merger or consolidation; or (iv) the Company shall sell more than 51% of the fair market value of its assets to another corporation which is not a wholly owned subsidiary.

Any termination by the Board of Directors pursuant to Section 5.2 or by the Executive pursuant to Section 5.3 shall be communicated by written Notice of Termination to the other Party hereto.  Notice of Termination shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated.

The Executive’s obligations under Section 6 regarding confidentiality shall survive any termination of this Agreement by the Executive, by the Company or otherwise.

5.4           Payment Upon Termination.

(a)           If this Agreement is terminated by the Company for Cause, or the Executive resigns without Good Reason, during the Term of Employment, the Executive shall not be entitled to severance pay of any kind but shall be entitled to be reimbursed for all reasonable business expenses incurred by the Executive and shall be paid the Base Salary earned by the Executive prior to the effective date of termination or resignation, and all obligations of the Company under Section 4 hereof shall terminate upon the designated termination date, except to the extent otherwise required by law.

 

 

  

  

  

(b)           In the event that the Executive is terminated without Cause or the Executive resigns with Good Reason, the Company shall pay the Executive thirty-five (35) months Base Salary at the rate prevailing for the Executive immediately prior to such termination as severance pay, payable in accordance with Company’s normal payroll.  The Executive shall also be entitled to receive benefits to which he was entitled immediately preceding the date of termination for a similar 35 month period, including but not limited to health and dental insurance.  Notwithstanding the foregoing, the timing of the payments described in this subsection (b) of section 5.4 may be modified if, and only if, necessary to comply with the provisions of Section 409A of the Internal Revenue Code such that the amounts payable to the Executive are paid to him in the year in which such income is required to be included in his gross income for tax purposes.

(c)           The parties agree that this Agreement is intended to comply with the requirements of Section 409A of the Internal Revenue Code and the regulations and other guidance promulgated thereunder or an exemption from 409A.  Notwithstanding anything in this Agreement to the contrary, if the Executive is a “specified employee” (as described in Section 409A) on the date of his termination, any amount to which the Executive would otherwise be entitled during the first six (6) months following separation of service that constitutes nonqualified deferred compensation within the meaning of Section 409A and that is therefore not exempt from Section 409A as involuntary separation pay or a short-term deferral will be accumulated and paid in a single lump sum cash payment (without interest) on the earlier of (i) the first business day of the seventh (7th) month following the date of such “separation from service” (as defined under Section 409A) or (ii) the date of the Executive’s death, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.  For purposes of this Agreement, each amount to be paid or benefit to be provided hereunder shall be construed as a separate identified payment for purposes of Section 409A.

6.             Confidentiality and Non-Disclosure.

                6.1          Confidential Information.  The Executive and the Company recognize that due to the nature of his engagements in this Agreement, and the relationship of the Executive to the Company, the Executive has had access to and has acquired, will have access to and will acquire, and has assisted in and may assist in developing, confidential and proprietary information relating to the business and operations of the Company and its affiliates, including trade secrets as defined in the Colorado Uniform Trade Secrets Act and information with respect to their present and prospective products, services, systems, software, customers, agents, processes, and sales and marketing methods.  The Executive acknowledges that such information has been and will continue to be of central importance to the business of the Company and its affiliates and that disclosure of it to or its use by others could cause substantial loss to the Company.  The Executive will keep confidential any trade secrets or confidential or proprietary information of the Company and its affiliates which are now known to him or which hereafter may become known to him as a result of his employment or association with the Company and shall not at any time directly or indirectly disclose any such information to any person, firm or corporation, or use the same in any way other than in connection with the business of the Company or its affiliates during and at all times after the expiration of the Term of Employment.

 

 

  

  

  

6.2         Remedy.  In the event of a breach or threatened breach by the Executive of any of the provisions of this Section 6, the Company shall be entitled to injunctive relief, restraining the Executive and any business, firm, partnership, individual, corporation, or entity participating in such breach or attempted breach, from engaging in any activity which would constitute a breach of this Section 6.  Nothing herein, however, shall be construed as prohibiting the Company from pursuing any other remedies available at law or in equity for such breach or threatened breach, including the recovery of damages.  The provisions of this Section 6 shall survive the termination of this Agreement and the termination of the Executive’s employment.

7.           Miscellaneous.

7.1         Assignability.  The Executive may not assign his rights and obligations under this Agreement without the prior written consent of the Company, which consent may be withheld for any reason or for no reason.

7.2         Severability.  In the event that any of the provisions of this Agreement shall be held to be invalid or unenforceable, the remaining provisions shall nevertheless continue to be valid and enforceable as though the invalid or unenforceable parts had not been included therein.

7.3         Entire Agreement.  This Agreement, and any attachments hereto, constitute the entire agreement between the Parties relating to the subject matter hereof and supersedes all prior agreements or understandings among the Parties hereto with respect to the subject matter hereof.

7.4         Amendments.  This Agreement shall not be amended or modified except by a writing signed by both Parties hereto.

7.5         Waiver.  The failure of either Party at any time to require performance of the other Party of any provision of this Agreement shall in no way affect the right of such Party thereafter to enforce the same provision, nor shall the waiver by either Party of any breach of any provision hereof be taken or held to be a waiver of any other or subsequent breach, or as a waiver of the provision itself.  This Agreement shall be governed by and interpreted in accordance with the laws of the State of Colorado without regard to the conflict of laws of such State.  The benefits of this Agreement may not be assigned nor any duties under this Agreement be delegated by the Executive without the prior written consent of the Company, except as contemplated in this Agreement.  This Agreement and all of its rights, privileges, and obligations will be binding upon the Parties and all successors and agreed to assigns thereof.

7.6         Binding Agreement.  This Agreement shall be effective as of the date hereof and shall be binding upon and inure to the benefit of the Executive, his heirs, personal and legal representatives, guardians and permitted assigns.  The rights and obligations of the Company under this Agreement shall inure to the benefit of and shall be binding upon any successor or assignee of the Company, including any entity that may be merged with or into the Company.

7.7          Headings.  The headings or titles in this Agreement are for the purpose of reference only and shall not in any way affect the interpretation or construction of this Agreement.

 

 

  

  

  

7.8          No Conflict.  The Executive represents and warrants that he is not subject to any agreement, order, judgment or decree of any kind which would prevent him from entering into this Agreement or performing fully his obligations hereunder.

7.9          Survival.  The rights and obligations of the Parties shall survive the Term of Employment to the extent that any performance is required under this Agreement after the expiration or termination of such Term of Employment.

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

7.11        Notices.  Any notice to be given hereunder by either Party to the other may be effected in writing by personal delivery, or by mail, certified with postage prepaid, or by overnight delivery service.  Notices sent by mail or by an overnight delivery service shall be addressed to the Parties at the addresses appearing following their signatures below, or upon the employment records of the Company but either Party may change its or his address by written notice in accordance with this paragraph.

7.12        Opportunity to Consult Counsel.  The Parties hereto represent and agree that, prior to executing this Agreement, each has had the opportunity to consult with independent counsel concerning the terms of this Agreement.

7.13        Attorney Fees.  In the event of any dispute, arbitration, litigation between the Parties or proceeding before any court of competent jurisdiction, the prevailing Party shall be entitled to reasonable attorney fee, costs and expenses.

[Signatures on following page]

  

  

  

IN WITNESS WHEREOF, the Parties hereto have properly and duly executed this Agreement to be effective as of the date first written above.

 

 

	 	THE COMPANY:

Gold Resource Corporation	 
	 	 	 	 
	
 

	
By: 

	/s/ David C. Reid	 
	 	Name: 	David C. Reid	 
	 	Title:	Vice President	 
	 	 	 	 

 

 

	 	
EXECUTIVE:

	 
	 	 	 	 
	
 

	/s/ William W. Reid	 
	 	
William W. Reid

211 Harbour Drive

Naples, Florida 34103

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