Document:

ex10_1.htm

EMPLOYMENT AGREEMENT

 

 

THIS AGREEMENT effective as of the 31st day of January, 2010 (the “Effective Date”)

 

BETWEEN:

GRID PETROLEUM CORP., a public company incorporated under the laws of the State of Nevada, with an office at 45 Cove Park Road NE, Calgary, AB, T3K 5XB

 

(the “Employer”)

 

OF THE FIRST PART

 

AND:

 

PAUL WATTS, of 52 Barons Keep,Gliddon Road, London, W14 9AU

 

(the “Executive”)

 

OF THE SECOND PART

 

WHEREAS:

 

A. WHEREAS the Employer wishes to employ the Executive and the Executive wishes to be employed by the Employer as the President and Chief Executive Officer (“CEO”) of the Employer;

 

B. WHEREAS the Employer acknowledges that the Executive commenced his employment on January 31st, 2010; and

 

C. WHEREAS the Employer and the Executive wish to clarify the terms of the Executive’s employment with the Employer.

 

NOW THEREFORE, THIS AGREEMENT WITNESSETH that in consideration of the mutual covenants herein contained, and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the parties hereto agree as follows:

 

 

	
1.  
	
EMPLOYMENT, TERM, POSITION, DUTIES, ETC.

 

1.1 Employment.  The Employer hereby employs the Executive and the Executive hereby accepts employment upon the
terms and conditions as set out in this Agreement.

 

1.2 Term.  This Agreement will be for an indefinite period and may be terminated by the Executive or the Employer
in accordance with Section 5 of this Agreement (the “Term”).

 

 

 

 

 

1.3 Position.  The Executive will serve as the President and Chief Executive Officer of the Employer.

 

1.4 Duties.  The Executive will perform such duties as are assigned to the Executive by the Employer, including
those regularly and customarily performed by a President and Chief Executive Officer, including responsibility for all activities regarding the Employer, its subsidiaries, and its joint venture companies (collectively, the “Duties”).  The Executive, from time to time, will provide written progress reports, satisfactory in form and content to the Employer, with respect to the Duties.

 

	
2.  
	
COMPENSATION

 

2.1 Salary and Work Commitment.  The Employer will pay to the Executive a salary of US $8,000 per Month, payable
in monthly installments, in arrears, subject to all required tax withholdings, statutory and other deductions (“Base Salary”). With an incremental rise of US $500 per quarter until an amount of US $10,000 per month is achieved. The Executive will be required to provide the Duties to the Employer a minimum of three (3) days per week (the “Time Commitment”).  The Base Salary and Time Commitment will be reviewed six (6) months from the date of execution of this Agreement.

 

2.2 Reimbursement of Expenses.  The Employer will reimburse the Executive for all reasonable travelling and other
expenses actually and properly incurred by him in connection with his Duties hereunder in accordance with the Employer’s policies, provided that such expenses will be subject to annual presentation to the Board of Directors, and such expenses may be subject to further verification by the Audit Committee or the Board of Directors of the Employer.  For all such expenses, the Executive will furnish the Employer with such statements, receipts or other reasonable documentation and within the applicable
time period as may be reasonably required by the Employer.

 

2.3 Vacation.  The Executive will be entitled to a minimum annual vacation of four weeks.  The Executive
will use his best efforts to ensure that such vacation is arranged with the Employer in advance such that it does not unduly affect the operations of the Employer.

 

	
3.  
	
EXECUTIVE OBLIGATIONS

 

3.1 Confidential Information.  The Executive will not, either during the term of this Agreement or at any time
thereafter, without specific consent in writing, disclose or reveal in any manner whatsoever to any other person, firm or corporation, nor will he use, directly or indirectly, for any purpose other than the purposes of the Employer, the private affairs of the Employer or any confidential information which he may acquire during the term of this Agreement with relation to the business and affairs of the directors and shareholders of the Employer, unless the Executive is ordered to do so by a court of competent
jurisdiction or unless required by any statutory authority.

 

3.2 Non-Disclosure Provisions.  The Executive will be subject to further non-disclosure provisions contained in Schedule “A” to this Agreement.

 

 

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3.3 Full Time and Efforts.  During the term of the Executive’s employment pursuant to this Agreement, the Executive will devote his full time and effort and
attention to the Duties.

 

3.4 Employer’s Policies.  The Executive acknowledges and agrees that the Executive is bound by the various employment and other policies of the Employer,
notwithstanding that those policies may be varied, changed, deleted or added to, from time to time.  It is the Executive's responsibility to familiarize himself with the current policies and to observe them.  If there is an express conflict between any such policies and this Agreement, then this Agreement governs.

 

3.5 Employer’s Property.   Upon the termination of the Executive’s employment with the Employer for any reason, or whenever requested by the Employer,
the Executive will deliver to the Employer all property belonging to the Employer, including, without limitation:

 

	
(a)  
	
any keys, security cards, passwords, devices, documents, papers, plans, materials or other property, and any copies or reproductions thereof, which may have come into the Executive’s possession during the course of the Executive’s employment with the Employer;

 

	
(b)  
	
any items of any nature created by the Executive in the course of his employment, whether completed or not;

 

	
(c)  
	
any communications or documentation transmitted by, received from, or stored in the Employer’s computer, email or voicemail systems, regardless of any personal content; and

 

	
(d)  
	
any Confidential Information as defined in Schedule “A” to this Agreement.

 

3.6 Medical Disability.  If the Executive is on leave for medical reasons, or the Executive requests a change in
the Duties or hours of work for medical reasons, the Executive agrees to cooperate with the Employer in obtaining any information reasonably necessary for assisting the Employer with assessing the Executive’s ability to work and any accommodations required of the Employer.

 

	
4.  
	
NON-SOLICITATION

 

4.1 Non-Solicitation.  During the term of this Agreement and for a period of one year from the date of termination
of this Agreement for any reason, the Executive will not:

 

	
(a)  
	
solicit or entice, or attempt to solicit or entice, either directly or indirectly, any supplier, contractors, consultant, customer or prospective customer of the Employer as at the date of termination of this Agreement, to become a supplier, contractor, consultant, or customer of any business or enterprise that competes with the Employer;

 

	
(b)  
	
solicit or entice, or attempt to solicit or entice, either directly or indirectly, any employee of the Employer as at the date of termination of this Agreement, to become an employee of any business or enterprise that competes with the Employer.

 

 

3

 

 

	
5.  
	
TERMINATION

 

5.1 Termination for Cause.  Notwithstanding any other provision in this Agreement, the Employer may terminate the
employment of the Executive at any time without notice or pay in lieu thereof for “Cause”, defined below, or death of the Executive.

 

5.2 Definition of “Cause”.   For the purposes of this Agreement “Cause” includes:

 

	
(a)  
	
fundamental breach of this Agreement by the Executive;

 

	
(b)  
	
in the opinion of the Employer, poor performance by the Executive after being advised as to the standard required;

 

	
(c)  
	
any intentional or grossly negligent disclosure of any Confidential Information by the Executive;

 

	
(d)  
	
any improper use of the Employer’s property;

 

	
(e)  
	
violation of any local, state or federal statute by the Executive, including, without limitation, an act of dishonesty such as embezzlement or theft, whether committed during the course of or in relation to the Executive’s employment with the Employer or otherwise;

 

	
(f)  
	
conduct by the Executive that, in the opinion of the Employer, is materially detrimental to the business or financial position of the Employer, including conduct that has the potential to injure the reputation of the Employer if the Executive is retained as an Executive of the Employer; and

 

	
(g)  
	
any and all omissions, commissions or other conduct which would constitute just cause at law.

 

	
5.3  
	
Termination Without Cause.  Either the Executive or the Employer may terminate the Executive’s employment without cause, upon the notice set out below:

 

	
(a)  
	
the Executive may resign upon giving to the Employer one (1) month’s prior written notice; and

 

	
(b)  
	
the Employer may terminate the Executive’s employment at any time without cause upon providing to the Executive one (1) month’s prior written notice.

 

5.4                  Release.  By providing the payment as set out in this
Agreement, the Employer will be released from all salary and severance obligations owing or becoming owed to the Executive arising out of this Agreement, the Executive’s employment or the Executive’s termination.

 

 

4

 

 

	
6.  
	
GENERAL PROVISIONS

 

6.1 Notices and Requests.  All notices and requests in connection with this Agreement will be deemed given as of the day they are received either by messenger,
delivery service, or mailed by registered or certified mail with postage prepaid and return receipt requested and addressed as follows:

 

	
(a)  
	
If to the Employer:

GRID PETROLEUM CORP.

45 Cove Park Road NE, Calgary, AB

T3K 5XB

 

with a copy to:

Scott P. Doney, Esq.

Cane∙Clark LLP

3273 E. Warm Springs Rd.

Las Vegas, NV 89120

 

	
(b)  
	
If to the Executive:

PAUL WATTS

52 Barons Keep,

Gliddon Road,

London,

W14 9A4

 

or to such other address as the party to receive notice or request so designates by written notice to the other.

 

6.2 Agreement Voluntary.  The parties acknowledge and declare that in executing this Agreement they are each relying wholly on their own judgment and knowledge
and have not been influenced to any extent whatsoever by any representations or statements made by or on behalf of the other party regarding any matters dealt with herein or incidental thereto.

 

6.3 Agreement Equitable.  The parties further acknowledge and declare that they each have carefully considered and understand the provisions contained herein, including,
but without limiting the generality of the foregoing, the Executive's rights upon termination and the restrictions on the Executive after termination and agree that the said provisions are mutually fair and equitable, and that they executed this Agreement voluntarily and of their own free will.

 

6.4 Agreement Non-Assignable.  This Agreement and all other rights, benefits and privileges contained herein may not be assigned by the Executive.

 

6.5 Enurement.  The rights, benefits and privileges contained herein will enure to the benefit of and be binding upon the respective parties hereto, their heirs,
executors, administrators and successors.

 

 

5

 

 

6.6 Entire Agreement.  This Agreement, including any schedules referred to in this Agreement, supersede all prior representations, arrangements, negotiations, understandings
and agreements between the parties, both written and oral, relating to the terms and conditions of the Executive’s Employment with the Employer and sets forth the entire complete and exclusive Agreement and understanding between the parties relating to the terms and conditions of the Executive’s Employment with the Employer.

 

6.7 Waiver.  No consent or waiver, express or implied, by either party to or of any breach or default by the other party in the performance by the other of its
obligations herein will be deemed or construed to be a consent or waiver to or of any breach or default of the same or any other obligation of such party.  Failure on the part of any party to complain of any act or failure to act, or to declare either party in default irrespective of how long such failure continues, will not constitute a waiver by such party of its rights herein or of the right to then or subsequently declare a default.

 

6.8 Severability.  If any provision contained herein is determined to be void or enforceable in whole or in part, it is to that extent deemed omitted.  The
remaining provisions will not be affected in any way.

 

6.9 Amendment.  This Agreement will not be amended or otherwise modified except by a written notice of even date herewith or subsequent hereto signed by both parties.

 

6.10 Survival.  Notwithstanding the termination of this Agreement and the Executive’s employment, the provisions of Sections 3.1, 3.2, 3.3, 3.6, 4 and of
Schedule “A” to this Agreement will survive such termination and be continuing obligations.

 

6.11 Further Assurances.  Each of the parties agrees to execute such further and other documents and instruments and to do such further and other things as may
be necessary to implement and carry out the intent of this Agreement.

 

6.12 Governing Law.  This Agreement is subject to and governed by the laws of the State of Nevada.

 

6.13 Headings.  The headings of the sections and subsections herein are for convenience only and will not control or affect the meaning or construction of any provisions
of this Agreement.

 

6.14 Understanding.  The Executive represents and warrants that he has read, understands, agrees with all the provisions of this Agreement and has obtained independent
legal advice with respect to it or waives such advice.

 

6.15 Execution in Several Counterparts.  This Agreement may be executed by facsimile and in several counterparts, each of which will be deemed to be an original
and all of which will together constitute one and the same instrument.

 

6

 

 

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

 

GRID PETROLEUM CORP.

 

Per:           

 

Authorized Signatory

 

	
SIGNED, SEALED and DELIVERED by PAUL WATTS in the presence of:

 

 

 

/s/ Paul Watts

Signature

 

Paul Watts

Print Name

 

 

Address

 

 

Occupation
	
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PAUL WATTS

 

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SCHEDULE “A”

 

NON-DISCLOSURE PROVISIONS

 

	
1.  
	
CONFIDENTIAL INFORMATION AND MATERIALS

 

	
  
	
(a)
	
“Confidential Information” will mean, for the purposes of this Agreement, non-public information which the Employer designates as being confidential or which, under the circumstances surrounding disclosure ought reasonably to be treated as confidential.  Confidential Information includes, without limitation, information, whether written, oral or communicated by any other means, relating to released
or unreleased the Employer software or hardware products, the marketing or promotion of any product of the Employer, the Employer business policies or practices, and information received from others which the Employer is obliged to treat as confidential.  Confidential Information disclosed to the Executive by any subsidiary and/or agents of the Employer is covered by this Agreement.

 

	
  
	
(b)
	
Confidential Information will not include that information defined as Confidential Information hereinabove which the Executive can exclusively establish:

 

	
  
	
(i)
	
is or subsequently becomes publicly available without breach of any obligation of confidentiality owed by the Employer;

 

	
  
	
(ii)
	
became known to the Executive prior to disclosure by the Employer to the Executive;

 

	
  
	
(iii)
	
became known to the Executive from a source other than the Employer other than by the breach of any obligations of confidentiality owed to the Employer; or

 

	
  
	
(iv)
	
is independently developed by the Executive.

 

	
  
	
(c)
	
Confidential Materials will include all tangible materials containing Confidential Information, including, without limitation, written or printed documents and computer disks or tapes, whether machine or user readable.

 

	
2.
	
RESTRICTIONS

 

	
  
	
(a)
	
The Executive will not disclose any Confidential Information to third parties during the term of this Agreement or following the termination of this Agreement, except as provided herein.  However, the Executive may disclose Confidential Information during bona fide execution of the Duties or in accordance with judicial or other governmental order, provided that the Executive will give reasonable notice
to the Employer prior to such disclosure and will comply with any applicable protective order or equivalent.

 

 

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(b)
	
The Executive will take reasonable security precautions, at least as great as the precautions it takes to protect his own confidential information, to keep confidential the Confidential Information, as defined hereinabove.

 

	
  
	
(c)
	
Confidential Information and Materials may be disclosed, reproduced, summarized or distributed only in pursuance of the business relationship of the Executive with the Employer, and only as provided hereunder.  The Executive agrees to segregate all such Confidential Materials from the materials of others in order to prevent co-mingling.

 

	
3.
	
RIGHTS AND REMEDIES

 

	
  
	
(a)
	
The Executive will notify the Employer immediately upon discovery of any unauthorized use or disclosure of Confidential Information or Materials, or any other breach of this Agreement by the Executive, and will co-operate with the Employer in every reasonable manner to aid the Employer to regain possession of said Confidential Information or Materials and prevent all such further unauthorized use.

 

	
  
	
(b)
	
The Executive will return all originals, copies, reproductions and summaries of or relating to the Confidential Information at the request of the Employer or, at the option of the Employer, certify destruction of the same.

 

	
  
	
(c)
	
The parties hereto recognize that a breach by the Executive of any of the provisions contained herein would result in damages to the Employer and that the Employer could not be compensated adequately for such damages by monetary award.  Accordingly, the Executive agrees that in the event of any such breach, in addition to all other remedies available to the Employer at law or in equity, the Employer will
be entitled as a matter of right to apply to a court of competent jurisdiction for such relief by way of restraining order, injunction, decree or otherwise, as may be appropriate to ensure compliance with the provisions of this Agreement.

 

	
4.
	
MISCELLANEOUS

 

	
  
	
(a)
	
All Confidential Information and Materials are and will remain the property of the Employer.  By disclosing information to the Executive, the Employer does not grant any express or implied right to the Executive to or under any and all patents, copyrights, trademarks, or trade secret information belonging to the Employer.

 

	
  
	
(b)
	
All obligations created herein will survive change or termination of any and all business relationships between the parties.

 

 

9Converted by EDGARwiz

Exhibit 10.1

LOAN AGREEMENT

THIS AGREEMENT is made as of the 4th day of September, 2009. 

BETWEEN:

B. GEOFFREY SCALES, of 357 University Ave., Charlottetown, 

PE C1A 4M9

(the "Lender")

AND:

NORTHUMBERLAND RESOURCES, INC., of 357 University Ave., 

Charlottetown, PE C1A 4M9

(the "Borrower")

WHEREAS the Lender is a principal shareholder of the Borrower; 

AND WHEREAS the Lender has agreed to lend to the Borrower money from time to time for the business purposes of the Borrower, either through an advance of money or through the purchase of goods or services for and on behalf of the Corporation, pursuant to the terms and conditions of this Agreement.

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the premises and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged by the parties hereto each to the other), the parties agree as follows:

ARTICLE 1

INTERPRETATION

1.01

Where used herein or in any amendment or supplement hereof, unless the context otherwise requires, the following words and phrases shall have the meanings set forth in this Section 1.01:

(a)

“Advance” means an advance of money by the Lender to the Borrower;

(b)

"Event of Default" means any of the events or circumstances mentioned or referred to in Section 4.01 hereof;

(c)

“Interest” means the interest due to the Lender from the Borrower at any particular time pursuant to Section 2.01;

2

(e)

"Loan Amount" means the aggregate of advances made or expenses incurred by the Lender for or on behalf of the Borrower under this Agreement; 

(f)

“Loan” means the loan made by the Lender to the Borrower hereunder.

ARTICLE 2

THE LOAN

2.01

Interest shall accrue and be payable on the Loan Amount outstanding from time to time both before and after maturity, default and judgment at a rate of 5% per annum, calculated and compounded annually, not in advance. Interest shall also accrue at the aforesaid rate on all overdue Interest and any other monies owing to the Lender under this Agreement.

2.02

The Borrower shall repay the Loan Amount and Interest on demand at any time after June 30, 2011, but the Borrower may at its option at any time and from time to time prepay all or any part of the Loan Amount, without notice, bonus or penalty.

ARTICLE 3

AFFIRMATIVE COVENANTS OF THE BORROWER

3.01

At all times while any unpaid portion of the Loan Amount and Interest is outstanding, the Borrower will:

(a)

duly and promptly observe, perform and carry out and complete each and every covenant, agreement and obligation on its part to be observed, performed and completed hereunder;

(b)

keep true records and books of account in which full, true and correct entries will be made in accordance with generally accepted accounting principles consistently applied throughout the period involved, and maintain adequate accounts and reserves for all taxes, including taxes on income and profits, all depreciation and amortization of his properties and assets and all such other reserves for contingencies as would normally be required in accordance with generally accepted accounting principles;

(c)

apply the whole of the Advances solely for the business purposes of the Borrower.

ARTICLE 4

DEFAULT

4.01

The Borrower shall be in default under this Agreement, unless waived by the Lender, in any of the following events:

(a)

the Borrower makes default in payment when due of any indebtedness or liability of the Borrower to the Lender; 

3

(b)

the Borrower is in breach of any term, condition, obligation or covenant to the Lender, or any representation or warranty to the Borrower is untrue, whether or not contained in this Agreement; 

(c)

the Borrower makes an assignment for the benefit of its creditors, is declared bankrupt, makes a proposal or otherwise takes advantage of provisions for relief under the Bankruptcy and Insolvency Act, the Companies Creditors' Arrangement Act or similar legislation in any jurisdiction, or makes an authorized assignment; 

(d)

an order is made or an effective resolution is passed for winding up the Borrower; or

(e)

the Borrower enters into any reconstruction, reorganization, amalgamation, merger or other similar arrangement with any other person.

ARTICLE 5

DEFAULT AND ACCELERATION

5.01

Upon the happening of any Event of Default, the Lender may at its option declare the principal and interest of the Loan to be immediately due and payable and may take any actions, suit, remedy or proceeding authorized or permitted under this Agreement or at law or at equity.  All of the aforesaid without presentment, demand, notice or protest, all of which are expressly waived.  No remedy that the Lender has aforesaid will be exclusive of or be dependent on any other remedy, but any one or more of the said remedies may from time to time be exercised independently or in combination and in whichever order the Lender may see fit.

ARTICLE 6

TIME:  WAIVER

6.01

Time will be of the essence of this Agreement.

6.02

No waiver of or neglect to enforce any right or remedy of the Lender upon the happening of an Event of Default will be deemed a waiver of the said right or remedy upon the happening of any subsequent Event of Default.

ARTICLE 7

SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS

7.01

All representations, warranties, covenants and agreements made herein and in any certificate or other document delivered by or on behalf of the Borrower pursuant hereto are material and shall conclusively be deemed to have been relied upon by the Lender, notwithstanding any prior or subsequent investigation by the Lender, will survive advances on account of the Loan and the fulfillment of all other transactions and deliveries contemplated hereunder, and will continue in full force and effect so long as any amount of principal of or interest on the Loan remains outstanding and unpaid.

4

7.02

All statements contained in any certificate under this document delivered to the Lender under this Agreement or in connection with any of the transactions contemplated hereby will be deemed to be representations and warranties by the party making the same.

ARTICLE 8

LAWS OF THE CONTRACT

8.01

This Agreement will be deemed to be a contract by and under the laws of Canada and the Province of Prince Edward Island and will for all purposes be construed in accordance with and governed by the said laws.

ARTICLE 9

NOTICES

9.01

Except as otherwise permitted under this Agreement, any notice or other writing required or permitted to be given under this Agreement to any party shall be sufficiently given if delivered personally, or if sent by prepaid registered mail or if transmitted by telex or other form of recorded communication tested prior to transmission to such party, at the address for such party as set out on page one, or at such other address as the party to whom such writing is to be given shall have last notified the party giving the notice.  Any notice delivered to the party to whom it is addressed as provided above shall be deemed to have been given and received on the day it is so delivered, provided that if such day is not a business day then the notice shall be deemed to have been given and received on the business day next following such day.  Any notice mailed as above shall be deemed to have been given and received on the fifth business day next following the date of its mailing.  Any notice by telex or other form of recorded communication shall be deemed to have been given and received on the first business day after its transmission.  Any change of address for a party shall be deemed to be effective on the fifth business day next following the receipt of the written advice of change of address.

ARTICLE 10

ENTIRE AGREEMENTS:  AMENDMENTS

10.01

This Agreement expresses the entire Agreement of the parties hereto with respect to the transactions contemplated hereby, and may not be amended nor may any term or covenant hereof be waived, discharged, or terminated except in writing by instrument executed by the party affected.

5

ARTICLE 11

ASSIGNMENT

11.01

This Agreement is not assignable by the Borrower without the prior written consent of the Lender, but may be assigned in whole or in part by the Lender without consent.

IN WITNESS WHEREOF the parties have executed this Agreement as of the day and year first above written.

NORTHUMBERLAND RESOURCES, INC.

by its authorized signatory

/s/ B. Geoffrey Scales

/s/ B. Geoffrey Scales

B. GEOFFREY SCALES

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