Document:

spartan_10k-ex1011.htm

EXHIBIT 10.11

    

Spartan Gold Ltd.

EMPLOYMENT AGREEMENT

CHIEF OPERATING OFFICER and DIRECTOR

Agreement made as of this 28th day of March, 2012, by and between Mihailo (Mick) Gavrilovic (“Executive”) and Spartan Gold Ltd. (“Spartan” or, the “Company”).

 

PREAMBLE

 

The Board of Directors of the Company recognizes Executive’s potential contribution to the growth and success of the Company and desires to assure the Company of Executive’s employment in an executive capacity as Chief Operating Officer and Director and to compensate him therefor.  Executive wants to be employed by the Company and to commit himself to serve the Company on the terms herein provided.

 

NOW, THEREFORE, in consideration of the foregoing and of the respective covenants and agreements of the parties, the parties agree as follows:

 

1.    Definitions

“Benefits” shall mean all the fringe benefits approved by the Board from time to time and established by the Company for the benefit of executives generally and/or for key executives of the Company as a class, including, but not limited to, regular holidays, vacations, absences resulting from illness or accident, health insurance, disability and medical plans (including dental and prescription drug), group life insurance, and pension, profit-sharing and stock bonus plans or their equivalent.

 

“Board” shall mean the Board of Directors of the Company, together with an executive committee thereof (if any), as the same shall be constituted from time to time.

 

“Cause” shall mean (i) gross negligence in the performance of the material responsibilities of the Executive’s office or position, (ii) willful misconduct in performance and discharge of the Executive’s material duties or that is otherwise materially injurious to the Company’s business, (iii) conviction of or a plea of no contest to a felony or Executive’s incapacity due to alcoholism or substance abuse or (iv) a material and intentional breach by Executive of his principal obligations under this Agreement not remedied within fifteen (15) business days after receipt of written notice from the Company.

 

“Change of Control” shall mean the occurrence of one or more of the following four events:

 

	 	
(1)

	
Any Person becomes a beneficial owner (as such term is defined in Rule 13d-3 promulgated under the Exchange Act) directly or indirectly of securities representing 51% or more of the total number of votes that may be cast for the election of directors of the Company;

   

  

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(2)

	
Within eighteen months after a merger, consolidation, liquidation or sale of assets involving the Company, or a contested election of a Company director, or any combination of the foregoing, the individuals who were directors of the Company immediately prior thereto shall cease to constitute a majority of the Board;

 

	 	
(3)

	
Within eighteen months after a tender offer or exchange offer for voting securities of the Company, the individuals who were directors of the Company immediately prior thereto shall cease to constitute a majority of the Board; or

 

	 	
(4) 

	
A Reorganization.

 

	 	
(5) 

	
A sale of all or substantially all of the assets of the Company.

 

“Chief Operating Officer” shall mean the individual having responsibility to the Board for direction and management of the field operations responsibilities of the Company and who reports and is accountable only to the Board.

 

“Company” shall mean Spartan Gold Ltd., a Nevada corporation.

 

“Competitive Business Activity” shall mean the exploration, development and sale of gold or other natural resources from the Company’s properties.

 

“Director” shall mean the individual elected by shareholders or designated by the Board from time to time as its Director.

 

“Disability” shall mean a written determination by an independent physician mutually agreeable to the Company and Executive (or, in the event of Executive’s total physical or mental disability, Executive’s legal representative) that Executive is physically or mentally unable to perform his duties of Chief Operating Officer and Director under this Agreement and that such disability can reasonably be expected to continue for a period of six (6) consecutive months or for shorter periods aggregating one hundred and eighty (180) days in any twelve-(12)-month period.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934.

 

“Executive” shall mean Mihailo Gavrilovic and, if the context requires, his heirs, personal representatives, and permitted successors and assigns.

 

“Performance Year” shall mean each twelve-month period of employment under this Agreement commencing upon the date of this Agreement.

 

“Person” shall mean any natural person, incorporated entity, limited or general partnership, limited liability company, business trust, association, agency (governmental or private), division, political sovereign, or subdivision or instrumentality, including those groups identified as “persons” in §§ 13(d)(3) and 14(d)(2) of the Exchange Act.

   

  

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“Reorganization” shall mean any transaction, or any series of transactions consummated in a 12-month period, pursuant to which any Person acquires (by merger, acquisition, or otherwise) all or substantially all of the assets of the Company or the then outstanding equity securities of the Company and the Company is not the surviving entity, the Company being deemed surviving if and only if the majority of the Board of Directors of the ultimate parent of the surviving entity were directors of the Company prior to its organization.

 

“Territory” shall mean any state of the United States and any equivalent section or area of any country in which the Company has revenue-producing customers or activities.

 

2.    Position, Responsibilities, and Term of Employment.

2.01    Position.  Executive shall serve as Director, and Chief Operating Officer of the Company.  In this capacity Executive shall, subject to the bylaws of the Company, and to the direction of the Board, serve the Company by performing such duties and carrying out such responsibilities as are normally related to the position of Director and Chief Operating Officer in accordance with the standards of the industry in which the Company carries on its business.  The Board shall either vote, or recommend to the shareholders of the Company, as appropriate, that during the term of employment pursuant to this Agreement:  (i) Executive be nominated for election as a director at each meeting of shareholders held for the election of directors and be nominated for election as Director; (ii) Executive be elected to and continued in the office of Chief Operating Officer of the Company; (iii) Executive be elected to and continued on the Board of Directors of each wholly-owned subsidiary of the Company, (iv) if the Board or any of the Company’s wholly-owned subsidiaries’ Board of Directors shall appoint an executive committee (or similar committee authorized to exercise the general powers of the Board), Executive be elected to and continued on such committee; and (v) the Company shall not confer on any other officer authority, responsibility, powers or prerogatives superior or equal to the authority, responsibility, prerogatives and powers vested in Executive hereunder.

2.02    Reporting.  Executive, in his capacity as Chief Operating Officer of the Company, will report directly to the Board.

2.03    Time and Efforts Covenant.  Executive will, to the best of his ability, devote such time and efforts as are necessary to the performance of his duties for the Company and its wholly-owned subsidiaries.

2.04    Executive’s Commitment.  During Executive’s employment with the Company, Executive will not undertake or engage in any other employment, occupation or business enterprise inconsistent with his obligations under this Agreement except for Executive’s service in an executive or board position with organizations, and their respective subsidiaries and/or affiliates, and/or other companies Executive currently has ownership, management responsibilities and/or other relationships with, as approved and added to this document in Exhibit B.  Subject to the foregoing, Executive agrees not to acquire, assume, or participate in, directly or indirectly, any position, investment, or interest in the Territory adverse or antagonistic to the Company, its business or prospects, financial or otherwise, or take any action towards any of the foregoing. The provisions of this Section shall not prevent Executive from owning shares of any entity engaging in Competitive Business Activity, so long as such shares (i) do not constitute more than 5% of the outstanding equity of such competitor, and (ii) are regularly traded on a national securities exchange or quoted for trading by the NASDAQ Stock Market.

    

  

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2.05    Relocation.  Executive’s place of employment will not be located outside the Denver, Colorado area.

2.06    Post-Employment Noncompetition and Nonsolicitation Covenant.  During the Employment Period and continuing until the six month termination anniversary thereof, Executive shall not, without the prior written authorization of the Board of Directors of the Company, (i) directly or indirectly render services of a business, professional or commercial nature (whether for compensation or otherwise) to any person or entity competitive or adverse to the Company's business welfare, (ii) engage in any activity, whether alone, as a partner, or as an officer, director, employee, consultant, independent contractor, or stockholder in any other corporation, person, or entity which is competitive with or adverse to the Company's business welfare, (iii) hire or solicit for hire any of the Company's employees, prospective employees or consultants (iv) solicit the business of any client of the Company, or any prospective client of the Company that had been serviced or solicited by the Company during the six (6) months preceding Executive's termination, or (v) enter into any agreements with any supplier of the Company regarding the sale or distribution of products of the supplier.

In the event that Executive's employment with the Company is terminated by Executive or the Company at any time, for any reason whatsoever, the Company shall have the right to inform any of Executive's future employers or prospective employers of the existence of this Section 2.06 of the Agreement. This Section 2.06 shall not, however, prevent Executive from investing in securities issued by any such competitive or adverse corporation provided the holdings thereof by Executive do not constitute more than five percent of any one class of such securities.

    

2.07    Confidential Information.  Executive shall not disclose or use, or authorize anyone else to disclose or use, at any time, during the Employment Period, any trade secrets or other confidential information of the Company of which Executive is or becomes informed or aware of prior to or during the Employment Period, except (i) as may be required for Executive to perform his duties and obligations under this Agreement, (ii) to the extent such information has been disclosed to Executive by a third party who is not affiliated with the Company or which otherwise becomes generally available to the public, (iii) information which must be disclosed as a result of a subpoena or other legal process, provided that the Company is given reasonable notice and an opportunity to obtain a protective order, or (iv) unless Executive shall first secure the Company's prior written authorization. This paragraph shall survive the termination of this Employment Period, whether by lapse of time or otherwise, and shall remain in effect and be enforceable against Executive for six months or if Company trade secrets or confidential information becomes public prior to the time limit. Executive shall execute additional agreements and confirmations of his obligations to the Company concerning such non-disclosure of Company trade secrets and other confidential information as the Company may require from time to time, provided that the execution of such additional agreements and confirmations are (i) reasonable and (ii) are required of all other senior executive employees of the Company under similar circumstances.

Executive shall use his best efforts to prevent the removal of any Confidential Information from the premises of the Company, except as required in his normal course of employment by the Company.  Executive shall use his best efforts to cause all persons or entities to whom any Confidential Information shall be disclosed by him hereunder to observe the terms and conditions set forth herein as though each such person or entity was bound hereby.

   

  

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2.08    Records, Files.  All records, files, drawings, documents, equipment and the like relating to the business of the Company which are prepared or used by Executive during the term of his employment under this Agreement shall be and shall remain the sole property of the Company.

2.09    Equitable Relief.  Executive acknowledges that his services to the Company are of a unique character which gives them a special value to the Company.  Executive further recognizes that material and intentional violations by Executive of any one or more of the provisions of this Section 2 may give rise to losses or damages for which the Company cannot be reasonably or adequately compensated in an action at law and that such material and intentional violations may result in irreparable and continuing harm to the Company.  Executive agrees that, in addition to any other remedy which the Company may have at law and equity, including the right to withhold any payment of compensation under Section 3 of this Agreement, the Company shall be entitled to injunctive relief to restrain any material and intentional violation, actual or threatened, by Executive of the provisions of Section 2 of this Agreement.

2.10    (a)    Executive agrees promptly to disclose and deliver to the Company any and all, and hereby assigns, transfers, and sets over to the Company Executive’s entire and exclusive right, title, and interest, including rights in the nature of patent rights, trademark rights, copyrights, trade secrets, or design rights, in and to any and all, improvements, inventions, developments, discoveries, works of authorship, innovations, systems, techniques, ideas, processes, programs, listings, and other things that may be of assistance to the Company, whether patentable or unpatentable, relating to or arising out of any development, service, or product of, or pertaining in any manner to the business of, the Company whether conceived, developed, or learned by Executive, alone or with others, during or after normal business hours, while employed by the Company (collectively, “Work Products”).  The foregoing assignment includes, without limitation, all such rights in the United States of America and throughout the world, and in and to any letters patent, applications for letters patent, any division, reissue, extension, continuation, or continuation-in-part thereof, or any copyright or trademark registrations that may be granted and issued for such Work Products.  Executive hereby authorizes and requests the Commissioner of Patents and Trademarks or other appropriate government official to issue any such Letters Patent or registrations to the Company, its successors, and assigns.  It is expressly understood that Work Products does not include any and all, improvements, inventions, developments, discoveries, works of authorship, innovations, systems, techniques, ideas, processes, programs, listings, and other things developed for the benefit of Enterprises during normal business hours while Executive is employed by Enterprises.

   

  

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(b)    The parties intend that the Company have the sole and exclusive right, title, and interest in such Work Products and Prior Art. Executive acknowledges and agrees that all Work Products and Prior Art will be and remain the exclusive property of the Company and that Executive will, upon the request of the Company, and without further compensation, do all lawful things requested by the Company to ensure the Company’s ownership of the Work Products and Prior Art, including, without limitation, the execution of all documents requested by the Company to assign and transfer to the Company and its assigns all of Executive’s right, title, and interest in the Work Products and Prior Art, if any, and to enable the Company to file and obtain patents, copyrights, and other proprietary rights in the United States and foreign countries relating to the Work Products and Prior Art.  Executive hereby appoints the Company as Executive’s attorney-in-fact to execute all documents relating to such registrations, applications, and assignments.  The provisions of this Section 2.10 will survive the expiration or termination of this Agreement for any reason.

2.11    Term.  The Company shall employ Executive, and Executive shall be employed by the Company and shall provide services to the Company upon the terms and conditions hereinafter set forth. The initial term of Executive's employment with the Company shall continue, unless earlier terminated pursuant to Section 4 hereof, through December 31, 2012 (the "Employment Period"); provided, however, that after expiration of the initial term, the Employment Period shall automatically be renewed each January 1 for successive one-year terms unless the Company or Executive delivers written notice to the other party at least sixty (60) days preceding the expiration of the initial term or any one-year extension date of the intention not to extend the term of this Agreement.

3.    Compensation.

3.01    Annual Compensation.  The Company shall pay to Executive for the services to be rendered hereunder a base salary as shown on Exhibit A hereto (“Annual Compensation”).  There shall be an annual review for merit by the Board and an increase as deemed appropriate to reflect the value of services by Executive.  At no time during his employment with the Company shall Executive’s annual base salary fall below his Annual Compensation.  In addition, if the Board increases Executive’s Annual Compensation at any time during his employment with the Company, such increased Annual Compensation shall become a floor below which Executive’s compensation shall not fall at any future time during his employment with the Company and shall become his Annual Compensation.

Executive’s salary shall be payable in periodic installments in accordance with the Company’s usual practice for similarly situated executives of the Company.

3.02    In addition to his Annual Compensation, Executive shall be entitled to receive incentive compensation in such amounts as are determined by the Board from time to time (“Incentive Compensation”). Incentive Compensation is outlined in Exhibit A.  Any Incentive Compensation which is not deductible in the opinion of the Company’s counsel, under § 162(m) of the Internal Revenue Code of 1986 shall be deferred and paid, without interest, in the first year or years when and to the extent such payment may be deducted, Executive’s right to such payment being absolute so long as Executive remains employed by the Company, subject only to the provisions of Section 2.09.

   

  

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3.03    Participating in Benefits.  Executive shall be entitled to all Benefits for as long as such Benefits may remain in effect and/or any substitute or additional Benefits made available in the future to similarly situated Executives of the Company, subject to and on a basis consistent with the terms, conditions and overall administration of such Benefits adopted by the Company.  Benefits paid to Executive shall not be deemed to be in lieu of other compensation to Executive hereunder as described in this Section 3.

3.04    Specific Benefits.

During Executive’s employment with the Company:

(a)    Executive shall be entitled to four (4) weeks of paid vacation time per year, to be taken at times mutually acceptable to the Company and Executive.

(b)    The Company shall provide fully paid accident and health insurance for Executive and Executive’s spouse and children with limits and extent of coverage no less than that provided to other executives of the Company.

(c)    Executive shall be entitled to sick leave benefits during his employment in accordance with the customary policies of the Company for its executive officers, but in no event less than one (1) month per year.

(d)    In addition to the vacation provided pursuant to Section 3.04(a) hereof, Executive shall be entitled to not less than ten (10) paid holidays (other than weekends) per year, generally on such days on which the New York Stock Exchange is closed to trading.

(e)    Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by him (in accordance with the policies and procedures established by the Board for the similarly situated executives of the Company) in performing services hereunder.

(f)    Executive shall be eligible to participate during his employment in Benefits not inconsistent or duplicative of those set forth in this Section 3.04 as the Company shall establish or maintain for its executives generally.

(g)    The Company shall have the option to maintain and be the owner and beneficiary of a term life insurance policy payable on Executive’s death with a minimum policy limit of one million dollars ($1,000,000) and Executive agrees to submit to any physical examination, and otherwise to cooperate in any other procedures required to obtain such policy.

(h)    The Company shall have the option to maintain and be the owner and beneficiary of a disability insurance policy payable on Executive’s disability with a minimum policy limit of one million dollars ($1,000,000) and Executive agrees to submit to any physical examination, and otherwise to cooperate in any other procedures required to obtain such policy.

   

  

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4.    Termination.

4.01    Termination by the Company for Reasons Other Than Cause.  If the Company terminates the employment of Executive and such termination is not for Cause (a “Termination by the Company for Reasons Other Than Cause”), then, the Company shall pay to Executive an amount equal to Executive’s Annual Compensation at the time of such termination plus (i) if the termination is during the first three years of this Agreement, the annual cash portion of the Incentive Compensation that was paid to him in the last Performance Year or (ii) if the termination is after the first three years of this Agreement, the average of the annual cash portion of the Incentive Compensation that was paid to him in the last three Performance Years.  Such amount shall be paid to Executive in no event later than sixty (60) days after the date of such termination.  To the extent that Executive is not fully vested in Benefits from any pension or any other retirement plan or program (whether tax qualified or not) maintained by the Company, the Company shall obtain and pay the premium upon an annuity policy to provide Executive with Benefits as though he had been fully vested on the date that his employment terminated.  See Exhibit A for full disclosure of the compensation.

4.02    Constructive Discharge.  If the Company (a) subjects Executive to a diminution in his title(s), responsibilities, or in his then current Annual Compensation, (b) fails to comply with the provisions of Section 3, (c) locates Executive’s place of employment outside the Denver, Colorado area or (d) engages in any material and intentional breach of the Company’s principal obligations under this Agreement which is not remedied within fifteen (15) business days after receipt of written notice from the Executive (a “Constructive Discharge”), Executive may at his option terminate his employment and such termination shall be considered to be a Termination by the Company for Reasons Other Than Cause.

4.03    Termination by the Company for Cause.  The Company shall have the right to terminate the employment of Executive for Cause (a “Termination by the Company for Cause”).  Effective as of the date of Termination by the Company for Cause, this Agreement, except for Sections 2.06 through 2.10, shall terminate and no further payments of the Compensation described in Section 3 (except for such remaining payments of Annual Compensation under Section 3.01 relating to periods during which Executive was employed by the Company, Benefits which are required by applicable law to be continued, and reimbursement of expenses incurred prior to such termination under Section 3.04) shall be made.

4.04    Change of Control.  If at any time during Executive’s employment at the Company there is a Change of Control, Executive may at his option terminate his employment and such termination shall be considered to be a Termination by the Company for Reasons Other Than Cause.  If such Change of Control involves the sale of the Company for an amount in excess of $100 million dollars, Executive shall be entitled to receive a one-time bonus equal to two and a half percent (2.5%) of all amounts received by the Company or its shareholders in excess of $100 million dollars.

   

  

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4.05    Termination on Account of Executive’s Death.  In the event of Executive’s death during his employment at the Company, the Company shall pay to Executive’s beneficiary or beneficiaries (or to his estate if he fails to make such a designation) an amount equal to the remainder of his Annual Compensation for the year in which he died plus a prorated amount of any Incentive Compensation which would have been payable to Executive at the end of such year.

Executive may designate one or more beneficiaries for the purposes of this Section 4.05 by making a written designation and delivering such designation to an Executive or the Chief Financial Officer of the Company.  If Executive makes more than one such written designation, the designation last received before Executive’s death shall control.

4.06    Disability.  If Executive shall sustain a Disability, the Company shall continue to pay to Executive while such Disability continues the full amount of his then current Annual Compensation for the one-year period next succeeding the date upon which such Disability shall have been so certified as well as a prorated amount of any Incentive Compensation which would have been paid to Executive at the end of the year.  Thereafter, if Executive’s Disability shall continue, the employment of Executive under this Agreement shall terminate and all obligations of Executive shall cease and Executive shall be entitled to receive the Benefits, if any, as may be provided by any insurance to which he may have become entitled pursuant to Section 3.04 as well as the acceleration of the exercise date of any incentive stock options granted prior to Executive’s Disability.

5.    Stock Options.  Executive will participate in the Company’s Stock Option Plan, when adopted, and will be eligible to participate at the level of other similarly situated executives in any future stock incentive plans established by the Company.

6.    Indemnification.  The Company shall indemnify Executive and hold Executive harmless from and against any claim, loss or cause of action arising from or out of Executive’s performance as an officer, director or employee of the Company or in any other capacity, including any fiduciary capacity, in which the Executive serves at the request of the Company to the maximum extent permitted by applicable law.  The Company shall advance to Executive the reasonable costs and expenses of investigating and/or defending any such claim, subject to receiving a written undertaking from Executive to repay any such amounts advanced to Executive in the event and to the extent of any subsequent determination by an agency of competent jurisdiction that Executive was not entitled to indemnification hereunder.  In the event that Executive is or becomes a party to any action or proceeding in respect of which indemnification may be sought hereunder, Executive shall promptly notify the Company thereof.  Following such notice, the Company shall be entitled to participate therein and, to the extent that it may wish, to assume the defense thereof with counsel satisfactory to Executive in its reasonable judgment.  After notice from the Company to Executive of the Company's election to assume the defense of such Executive, the Company will not be liable to Executive hereunder for any legal or other expenses subsequently incurred by Executive in connection with the defense thereof other than reasonable costs of investigation.  Executive shall not settle any action or claim against Executive without the prior written consent of the Company except at such Executive's sole cost and expense.

   

  

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7.    Left blank intentionally.

8.    Miscellaneous.

8.01    Assignment.  This Agreement and the rights and obligations of the parties hereto shall bind and inure to the benefit of each of the parties hereto and shall also bind and inure to the benefit of any successor or successors of the Company in a Reorganization, merger or consolidation and any assignee of all or substantially all of the Company’s business and properties, but, except as to any such successor of the Company, neither this Agreement nor any rights or benefits hereunder may be assigned by the Company or Executive.

8.02    At Will Employee.  Executive is and will be at all times be an “at-will employee” and his employment may be terminated by him or by the Company upon sixty (60) days written notice at any time, for any reason or no reason, with or without cause, subject to the provisions of Section 4.

8.03    Governing Law.  This Agreement shall be construed in accordance with and governed for all purposes by the laws of the State of Nevada.

8.04    Interpretation.  In case any one or more of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, but this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

8.05    Notice.  Any notice herein required or permitted to be given shall be in writing and may be sent by hand delivery or registered or certified mail, return receipt requested, and shall be deemed to have been given: if by hand delivery, on the date of delivery or if mailed, on the date indicated as the date of delivery or, if refused, on the date of attempted delivery, on the return receipt. For purposes hereof, the addresses of the parties hereto (until notice of a change thereof is given as provided in this Section 7.05) shall be as follows:

    

	
To the Company:

	
To Executive:

	  	  
	
Spartan Gold Ltd.

13591 N. Scottsdale Rd.

Suite 233

Scottsdale, AZ 85254

	
 
Mihailo Gavrilovic

 
3272 S. Leyden Street

 
Denver, CO 80222

    

8.06    Amendment and Waiver.  This Agreement may not be amended, supplemented or waived except by a writing signed by the party against which such amendment or waiver is to be enforced.  The waiver by any party of a breach of any provision of this Agreement shall not operate to, or be construed as a waiver of, any other breach of that provision or as a waiver of any breach of another provision.

   

  

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8.07    Binding Effect.  Subject to the provisions of Section 4 hereof, this Agreement shall be binding on the successors and assigns of the parties hereto.

All obligations of Executive with respect to any shares covered by this Agreement shall, as the context requires, bind Executive’s spouse and the divorce or death of such spouse shall not vitiate the binding nature of such obligation.

8.08    Survival of Rights and Obligations.  All rights and obligations of Executive or the Company arising during the term of this Agreement shall continue to have full force and effect after the termination of this Agreement unless otherwise provided herein.

8.09    Section Headings.  The section headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

8.10    Entire Agreement.  This Agreement contains the entire understanding, and cancels and supersedes all prior agreements, including any agreement in principle or oral statement, letter of intent, statement of understanding or guidelines of the parties hereto with respect to the subject matter hereof.

    

In witness whereof, on the date first written above, the undersigned do hereby agree to the terms contained herein.

Spartan Gold Ltd.

By:__________________________

Name: Malcolm Stevens

Title: Chairman

__________________________

Name: Mihailo Gavrilovic

   

  

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Exhibit A

Employment Agreement

Between Mihailo (Mick) Gavrilovic and Spartan Gold Ltd. 

   

Section 3.01   Compensation.

	 	
(A) 

	
$5,000 per month commencing January 1, 2012 and until the Company enters into its funded Phase 1 exploration activities with at least $2 million of funding.

 

	 	
(B) 

	
$138,000 per year commencing after the Company has begun its funded Phase 1 exploration activities with at least $2 million of funding and until the Company enters into its funded Phase 2 explorations and development activities with at least $5 million of funding, and the Executive has committed to full-time efforts in the management of the Company’s exploration and development activities;

 

	 	
(C) 

	
$185,000 per year commencing after the Company has begun its funded Phase 2 exploration and development activities with at least $5 million of funding, and the Executive has committed to full-time efforts in the management of the Company’s exploration and development activities;

 

	 	
(D) 

	
Incentive Compensation as follows:

 

	 	
a. 

	
Incentive compensation will be determined by the Board of Directors on a discretionary basis based on profitability and achievement of company performance goals.

 

	 	
(E) 

	
If a controlling interest in the Company is sold to a third party, the Executive shall get a bonus as outlined below:

 

	 	
a. 

	
If a Change of Control involves the sale of the Company for an amount in excess of $100 million dollars, Executive shall be entitled to receive a one-time bonus equal to two and a half percent (2.5%) of all amounts received by the Company or its shareholders in excess of $100 million dollars.

	 	
b. 

	
The Executive shall, at his option, have the opportunity to convert the cash payment associated with this bonus, into common stock of the Company at a conversion rate of the published market price per share as of the date of the Change of Control.

 

	 	
(F) 

	
Termination, based on Section 4 of this Agreement, shall be as follows:

 

	 	
a. 

	
If the Company has raised $1 million but less than $2 million, under any investment vehicle(s) during the Executive’s employment, then the following applies:

 

	 	
i. 

	
Termination payment as stated in Section 4.

 

	 	
b. 

	
If the Company has raised $2 million but less than $5 million, under any investment vehicle(s) during the Executive’s employment, then the following applies:

 

	 	
i. 

	
Termination payment at two times the rate stated in Section 4.

 

	 	
c. 

	
If the Company has raised $5 million or more, under any investment vehicle(s) during the Executive’s employment, then the following applies:

 

	 	
i. 

	
Termination payment at three times the rate stated in Section 4.

    

  

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Exhibit B

Employment Agreement

Between Mihailo (Mick) Gavrilovic and Spartan Gold Ltd. 

   

Section 2.04   Executive’s Commitment.

The Executive is also involved in various roles for the following entities:

 

 

E3 Consulting LLC. and its respective clients

 

 

 

 

 

 

 

 

 

 

 

 

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  Exhibit 10.1    
    

 
 

  FORM OF REGISTRATION RIGHTS AGREEMENT    
    

        This Registration Rights Agreement (this "Agreement"), is made and entered into as of
                                    , 2012, by Ares Commercial Real
Estate Corporation, a Maryland corporation (the "Company"), and Ares Investments Holdings LLC, a
Delaware limited liability company (the "Investor"). 

        WHEREAS,
the Investor owns 1,500,000 shares of the Company's Common Stock (as defined below) that it previously purchased pursuant to certain subscription agreements; and 

        WHEREAS,
concurrently with the completion of the Company's proposed initial public offering (the "IPO"), the parties desire to enter into
this Agreement in order to grant certain registration rights to the Investor as set forth below. 

        NOW,
THEREFORE, in consideration of the foregoing and the mutual and dependent covenants hereinafter set forth, the parties agree as follows: 

1.    Defined Terms.    As used in this Agreement, the following terms shall have the following meanings: 

        "Affiliate" of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled
by, or is under common control with, such Person. The term "control" (including the terms "controlled by" and "under common control with") means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 

        "Agreement" has the meaning set forth in the preamble. 

        "Board" means the board of directors of the Company (and any successor governing body of the Company or any successor of the Company). 

        "Capital Stock" has the meaning set forth in Section 4. 

        "Commission" means the Securities and Exchange Commission or any other federal agency administering the Securities Act and the Exchange
Act at the time. 

        "Common Stock" means the common stock, par value $0.01 per share, of the Company and any other common equity securities issued by the
Company, and any other shares of stock issued or issuable with respect thereto (whether by way of a stock dividend or stock split or in exchange for or upon conversion of such shares or otherwise in
connection with a combination of shares, distribution, recapitalization, merger, consolidation or other corporate reorganization). 

        "Company" has the meaning set forth in the preamble and includes the Company's successors by merger, acquisition, reorganization or
otherwise. 

        "Demand Registration" has the meaning set forth in Section 2(b). 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended, or any successor federal statute, and the rules and regulations
thereunder, which shall be in effect from time to time. 

        "Governmental Authority" means any federal, state, local or foreign government or political subdivision thereof, or any agency or
instrumentality of such government or political subdivision, or any
self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such
organization or authority have the force of law), or any arbitrator, court or tribunal of competent jurisdiction. 

        "Investor" has the meaning set forth in the preamble. 

        "IPO" has the meaning set forth in the recitals to this Agreement. 

 

        "Lock-Up Period" has the meaning set forth in Section 4. 

        "Lock-Up Securities" has the meaning set forth in Section 4. 

        "Long-Form Registration" has the meaning set forth in Section 2(a). 

        "Person" means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated
organization, trust, association or other entity. 

        "Piggyback Registration" has the meaning set forth in Section 3(a). 

        "Prospectus" means the prospectus or prospectuses included in any Registration Statement, as amended or supplemented by any prospectus
supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and by all other amendments and supplements to the prospectus,
including post-effective amendments and all material incorporated by reference in such prospectus or prospectuses. 

        "Registrable Securities" means (a) any shares of Common Stock held by the Investor or its Affiliates or issuable upon conversion,
exercise or exchange of any securities owned by the Investor or its Affiliates at any time, and (b) any shares of Common Stock issued or issuable with respect to any shares described in
subsection (a) above by way of a stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization (it being
understood that for purposes of this Agreement, a Person shall be deemed to be a holder of Registrable Securities whenever such Person has the right to then acquire or obtain from the Company any
Registrable Securities, whether or not such acquisition has actually been effected). As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when
(i) a Registration Statement covering such securities has been declared effective by the Commission and such securities have been disposed of pursuant to such effective Registration Statement,
(ii) such securities are sold under circumstances in which all of the applicable conditions of Rule 144 (or any similar provisions then in force) under the Securities Act are met,
(iii) such securities are otherwise transferred and such securities may be resold without subsequent registration under the Securities Act, or (iv) such securities shall have ceased to
be outstanding. 

        "Registration Statement" means any registration statement of the Company that covers any of the Registrable Securities pursuant to the
provisions of this Agreement, including the Prospectus, amendments and supplements to such Registration Statement, including post-effective amendments, all exhibits and all materials
incorporated by reference in such Registration Statement. 

        "Rule 144" means Rule 144 promulgated under the Securities Act or any successor rule thereto or any complementary rule
thereto (such as Rule 144A). 

        "Securities Act" means the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations thereunder,
which shall be in effect from time to time. 

        "Selling Expenses" means all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable
Securities, and fees and disbursements of counsel for any holder of Registrable Securities, except for the fees and disbursements of counsel for the holders of Registrable Securities required to be
paid by the Company pursuant to Section 6. 

        "Short-Form Registrations" has the meaning set forth in Section 2(b). 

2.    Demand Registration.    

	(a)
	At
any time after the first anniversary of the IPO, the Investor may request registration under the Securities Act of all or any portion of Registrable
Securities held by it or its Affiliates on 

2

 

Form S-1
or any successor form thereto (each a "Long-Form Registration"). Each request for a Long-Form
Registration shall specify the approximate number of Registrable Securities required to be registered. Upon receipt of such request, the Company shall promptly (but in no event later than five
business days following receipt thereof) deliver notice of such request to all other holders of Registrable Securities who shall then have five business days from the date such notice is given to
notify the Company in writing of their desire to be included in such registration. The Company shall cause a Registration Statement on Form S-1 (or any successor form) to be filed
within 90 days after the date on which the initial request is given and shall use its best efforts to cause such Registration Statement to be declared effective by the Commission as soon as
practicable thereafter.  

	(b)
	After
the first anniversary of the IPO, the Company shall use its best efforts to qualify and remain qualified to register securities under the Securities
Act pursuant to a Registration Statement on Form S-3 or any successor form thereto. At such time as the Company shall have qualified for the use of a Registration Statement on
Form S-3, the Investor shall have the right to request an unlimited number of registrations of Registrable Securities on Form S-3 or any similar
short-form registration (each a "Short-Form Registration" and, together with each Long-Form Registration, a
"Demand Registration"). Each request for a Short-Form Registration shall specify the approximate number of Registrable Securities requested
to be registered. Upon receipt of any such request, the Company shall promptly (but in no event later than five business days following receipt thereof) deliver notice of such request to all other
holders of Registrable Securities who shall then have five business days from the date such notice is given to notify the Company in writing of their desire to be included in such registration. The
Company shall cause a Registration Statement on Form S-3 (or any successor form) to be filed within 45 days after the date on which the initial request is given and shall use
its best efforts to cause such Registration Statement to be declared effective by the Commission as soon as practicable thereafter.

	(c)
	The
Company shall not be obligated to effect any Long-Form Registration within six months after (i) the effective date of a previous
Demand Registration Statement or (ii) a previous registration under which the holders of the Registrable Securities had piggy-back rights pursuant to  Section 3 hereof wherein the holders of
Registrable Securities were permitted to register at least 50% of the Registrable Securities requested to
be included therein. The Company may postpone for up to 45 days the filing or effectiveness of a Registration Statement for a Demand Registration if the Company's Board determines in its
reasonable good faith judgment that such Demand Registration would (i) materially interfere with a significant acquisition, corporate organization or other similar transaction involving the
Company; (ii) require premature disclosure of material information that the Company has a bona fide business purpose for preserving as confidential; or (iii) render the Company unable to
comply with requirements under the Securities Act or Exchange Act. The Company may delay a Demand Registration hereunder only once in any period of twelve consecutive months.

	(d)
	If
the Investor requesting a Demand Registration elects to distribute the Registrable Securities covered by its request in an underwritten offering, it
shall so advise the Company as a part of its request made pursuant to Section 2(a) or  Section 2(b), and the Company shall include such
information in its notice to the other holders of Registrable Securities. The Investor shall
select the investment banking firm or firms to act as the managing underwriter or underwriters in connection with such offering.

	(e)
	The
Company shall not include in any Demand Registration any securities that are not Registrable Securities without the prior written consent of the
Investor, which consent shall not be unreasonably withheld or delayed. If a Demand Registration involves an underwritten offering and the managing underwriter of the requested Demand Registration
advises the 

3

 

Company
and the holders of Registrable Securities in writing that in its opinion the number of shares of Common Stock proposed to be included in the Demand Registration, including all Registrable
Securities and all other shares of Common Stock proposed to be included in such underwritten offering, exceeds the number of shares of Common Stock that can be sold in such underwritten offering
and/or the number of shares of Common Stock proposed to be included in such registration would adversely affect the price per share of the Registrable Securities proposed to be sold in such
underwritten offering, the Company shall include in such Demand Registration (i) first, the number of shares of Common Stock that the holders of Registrable Securities propose to sell, and
(ii) second, the number of shares of Common Stock proposed to be included therein by any other Persons (including
shares of Common Stock to be sold for the account of the Company and/or other holders of Common Stock) allocated for the purposes of this clause (ii) among such Persons in such manner as they
may agree. If the managing underwriter determines that less than all of the Registrable Securities proposed to be sold can be included in such offering, then the Registrable Securities that are
included in such offering shall be allocated pro rata among the respective holders thereof on the basis of the number of Registrable Securities owned by
each such holder. 

3.    Piggyback Registration.    

	(a)
	Whenever
the Company proposes to register any shares of its Common Stock under the Securities Act (other than a registration effected solely to implement an
employee benefit plan or a transaction to which Rule 145 of the Securities Act is applicable, or a Registration Statement on Form S-4, S-8 or any successor form
thereto or another form not available for registering the Registrable Securities for sale to the public), whether for its own account or for the account of one or more stockholders of the Company and
the form of Registration Statement to be used may be used for any registration of Registrable Securities (a "Piggyback Registration"), the Company shall
give prompt written notice (in any event no later than 10 business days prior to the filing of such Registration Statement) to the holders of Registrable Securities of its intention to effect such a
registration and, subject to Section 3(b) and Section 3(c), shall include in such
registration all Registrable Securities with respect to which the Company has received written requests for inclusion from the holders of Registrable Securities within 10 business days after the
Company's notice has been given to each such holder. A Piggyback Registration shall not be considered a Demand Registration for purposes of  Section 2 of this Agreement.

	(b)
	If
a Piggyback Registration is initiated as a primary underwritten offering on behalf of the Company and the managing underwriter advises the Company and
the holders of Registrable Securities (if any holders of Registrable Securities have elected to include Registrable Securities in such Piggyback Registration) in writing that in its opinion the number
of shares of Common Stock proposed to be included in such registration, including all Registrable Securities and all other shares of Common Stock proposed to be included in such underwritten offering,
exceeds the number of shares of Common Stock that can be sold in such offering and/or that the number of shares of Common Stock proposed to be included in any such registration would adversely affect
the price per share of the Common Stock to be sold in such offering, the Company shall include in such registration (i) first, the number of shares of Common Stock that the Company proposes to
sell; (ii) second, the number of shares of Common Stock requested to be included therein by holders of Registrable Securities, allocated pro rata
among all such holders on the basis of the number of Registrable Securities owned by each such holder or in such manner as they may otherwise agree; and (iii) third, the number of shares of
Common Stock requested to be included therein by holders of Common Stock (other than holders of Registrable Securities), allocated among such holders in such manner as they may agree. 

4

 

	(c)
	If
a Piggyback Registration is initiated as an underwritten offering on behalf of a holder of Common Stock other than Registrable Securities, and the
managing underwriter advises the Company in writing that in its opinion the number of shares of Common Stock proposed to be included in such registration, including all Registrable Securities and all
other shares of Common Stock proposed to be included in such underwritten offering, exceeds the number of shares of Common Stock that can be sold in such offering and/or that the number of shares of
Common Stock proposed to be included in any such registration would adversely affect the price per share of the Common Stock to be sold in such offering, the Company shall include in such registration
(i) first, the number of shares of Common Stock requested to be included therein by the holder(s) requesting such registration and by the holders of Registrable Securities, allocated  pro rata among
such holders on the basis of the number of shares of Common Stock (on a fully diluted, as converted basis) and the number of Registrable
Securities, as applicable, owned by all such holders or in such manner as they may otherwise agree; and (ii) second, the number of shares of Common Stock requested to be included therein by
other holders of Common Stock, allocated among such holders in such manner as they may agree.

	(d)
	If
any Piggyback Registration is initiated as a primary underwritten offering on behalf of the Company, the Company shall select the investment banking firm
or firms to act as the managing underwriter or underwriters in connection with such offering. 

4.    Lock-up Agreement.    Each holder of Registrable Securities agrees that at the request of a managing underwriter
of any public offering of the Company's Common Stock or other equity securities, it will agree, for a commercially reasonable period in no event to exceed 60 days following the effective date
of such registration (the "Lock-Up Period"), to not (a) offer, pledge (other than pursuant to a bona fide lending transaction), sell,
contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of any shares of
the Company's Common Stock or preferred stock or other capital stock (collectively, "Capital Stock") or any securities convertible into or exercisable
or exchangeable for Common Stock or other Capital Stock, whether now owned or hereafter acquired by the undersigned or with respect to which the undersigned has or hereafter acquires the power of
disposition (collectively, the "Lock-Up Securities"), or enter into any swap or other agreement, arrangement or transaction that transfers
to another, in whole or in part, directly or indirectly, any of the economic consequences of ownership of the Lock-Up Securities, whether any such swap or transaction described in
clause (a) or (b) above is to be settled by delivery of Common Stock, other Capital Stock, other securities, in cash or otherwise, or publicly announce an intention to do any of the
foregoing. Moreover, if (i) during the last 17 days of the Lock-Up Period the Company issues an earnings release or material news or a material event relating to the Company
occurs, or (ii) prior to the expiration of the Lock-Up Period the Company announces that it will release earnings results during the 16-day period beginning on the last
day of the Lock-Up Period, the Lock-Up Period shall be extended and the restrictions imposed by this agreement shall continue to apply until the expiration of the
18-day period beginning on the date of issuance of the earnings release or the occurrence of the material news or material event, as the case may be, unless the managing underwriter of the
public offering waives, in writing, such extension. The foregoing provisions of this Section 4 shall not apply to sales of Registrable Securities
to be included in such offering pursuant to Section 2(a), Section 2(b) or  Section 3(a), and
shall be applicable to the holders of Registrable Securities only if all officers and directors of the Company are subject to
the same restrictions. In addition, at the request of the Investor, the Company will agree to any similar provision requested by the managing underwriter with respect to the Company's Common Stock or
other equity securities. Each holder of Registrable Securities agrees to execute and deliver such other agreements as may be reasonably requested by the Company or the managing underwriter that are
consistent with the foregoing or that are necessary to give further effect thereto. Notwithstanding anything to the contrary contained in this  Section 4, each holder of 

5

 

Registrable
Securities shall be released, pro rata, from any lock-up agreement entered into pursuant to this  Section 4 in the event and to the extent that the
managing underwriter or the Company permit any discretionary waiver or termination of the
restrictions of any lock-up agreement pertaining to any officer or director. 

5.    Registration Procedures.    If and whenever the holders of Registrable Securities request that any Registrable Securities be
registered pursuant to the provisions of this Agreement, the Company shall use its best efforts to effect the registration and the sale of such Registrable Securities in accordance with the intended
method of disposition thereof, and pursuant thereto the Company shall as soon as practicable: 

	(a)
	subject
to Section 2(a) and Section 2(b),
prepare and file with the Commission a Registration Statement with respect to such Registrable Securities and use its best efforts to cause such Registration Statement to become effective;

	(b)
	prepare
and file with the Commission such amendments, post-effective amendments and supplements to such Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep such Registration Statement effective for a period of not less than two years after the date of effectiveness of the Registration
Statement days, or if earlier, until all of such Registrable Securities have been disposed of and to comply with the provisions of the Securities Act with respect to the disposition of such
Registrable Securities in accordance with the intended methods of disposition set forth in such Registration Statement;

	(c)
	within
a reasonable time before filing such Registration Statement, Prospectus or amendments or supplements thereto, furnish to one counsel selected by the
Investor copies of such documents proposed to be filed, which documents shall be subject to the review, comment and approval of such counsel;

	(d)
	notify
each selling holder of Registrable Securities, promptly after the Company receives notice thereof, of the time when such Registration Statement has
been declared effective or a supplement to any Prospectus forming a part of such Registration Statement has been filed;

	(e)
	furnish
to each selling holder of Registrable Securities such number of copies of the Prospectus included in such Registration Statement (including each
preliminary Prospectus) and any supplement thereto (in each case including all exhibits and documents incorporated by reference therein) and such other documents as such seller may request in order to
facilitate the disposition of the Registrable Securities owned by such seller;

	(f)
	use
its best efforts to register or qualify such Registrable Securities under such other securities or "blue sky" laws of such jurisdictions as any selling
holder requests and do any and all other acts and things which may be necessary or advisable to enable such holders to consummate the disposition in such jurisdictions of the Registrable Securities
owned by such holders; provided, that the Company shall not be required to qualify generally to do business, subject itself to general taxation or
consent to general service of process in any jurisdiction where it would not otherwise be required to do so but for this Section 5(f);

	(g)
	notify
each selling holder of such Registrable Securities, at any time when a Prospectus relating thereto is required to be delivered under the Securities
Act, of the happening of any event as a result of which the Prospectus included in such Registration Statement contains an untrue statement of a material fact or omits any fact necessary to make the
statements therein not misleading, and, at the request of any such holder, the Company shall prepare a supplement or amendment to such Prospectus so that, as thereafter delivered to the purchasers of
such Registrable Securities, such Prospectus shall not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements therein not misleading; 

6

 

	(h)
	make
available for inspection by any selling holder of Registrable Securities, any underwriter participating in any disposition pursuant to such
Registration Statement and any attorney, accountant or other agent retained by any such holder or underwriter (collectively, the "Inspectors"), all
financial and other records, pertinent corporate documents and properties of the Company, and cause the Company's officers, directors and employees to supply all information requested by any such
Inspector in connection with such Registration Statement;

	(i)
	provide
a transfer agent and registrar (which may be the same entity) for all such Registrable Securities not later than the effective date of such
registration;

	(j)
	use
its best efforts to cause such Registrable Securities to be listed on each securities exchange on which the Common Stock is then listed or, if the
Common Stock is not then listed, on a national securities exchange selected by the Investor;

	(k)
	in
connection with an underwritten offering, enter into such customary agreements (including underwriting and lock-up agreements in customary
form) and take all such other customary actions as the holders of such Registrable Securities or the managing underwriter of such offering request in order to expedite or facilitate the disposition of
such Registrable Securities (including, without limitation, making appropriate officers of the Company available to participate in "road show" and other customary marketing activities (including
one-on-one meetings with prospective purchasers of the Registrable Securities);

	(l)
	otherwise
use its best efforts to comply with all applicable rules and regulations of the Commission and make available to its stockholders an earnings
statement (in a form that satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder) no later than 30 days after the end of the 12-month
period beginning with the first day of the Company's first full fiscal quarter after the effective date of such Registration Statement, which earnings statement shall cover said 12-month
period, and which requirement will be deemed to be satisfied if the Company timely files complete and accurate information on Forms 10-Q, 10-K and 8-K under
the Exchange Act and otherwise complies with Rule 158 under the Securities Act; and

	(m)
	furnish
to each selling holder of Registrable Securities and each underwriter, if any, with (i) a legal opinion of the Company's outside counsel,
dated the effective date of such Registration Statement (and, if such registration includes an underwritten public offering, dated the date of the closing under the underwriting agreement), in form
and substance as is customarily given in opinions of the Company's counsel to underwriters in underwritten public offerings; and (ii) a "comfort" letter signed by the Company's independent
certified public accountants in form and substance as is customarily given in accountants' letters to underwriters in underwritten public offerings;

	(n)
	without
limiting Section 5(f) above, use its best efforts to cause such Registrable Securities to be
registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of the business and operations of the Company to enable the holders of such Registrable
Securities to consummate the disposition of such Registrable Securities in accordance with their intended method of distribution thereof;

	(o)
	notify
the holders of Registrable Securities promptly of any request by the Commission for the amending or supplementing of such Registration Statement or
Prospectus or for additional information;

	(p)
	advise
the holders of Registrable Securities, promptly after it shall receive notice or obtain knowledge thereof, of the issuance of any stop order by the
Commission suspending the effectiveness of such Registration Statement or the initiation or threatening of any proceeding 

7

 

for
such purpose and promptly use its best efforts to prevent the issuance of any stop order or to obtain its withdrawal at the earliest possible moment if such stop order should be issued; 

	(q)
	permit
any holder of Registrable Securities which holder, in its sole and exclusive judgment, might be deemed to be an underwriter or a controlling person
of the Company, to participate in the preparation of such Registration Statement and to require the insertion therein of language, furnished to the Company in writing, which in the reasonable judgment
of such holder and its counsel should be included; and

	(r)
	otherwise
use its best efforts to take all other steps necessary to effect the registration of such Registrable Securities contemplated hereby. 

6.    Expenses.    All expenses (other than Selling Expenses) incurred by the Company in complying with its obligations pursuant to
this Agreement and in connection with the registration and disposition of Registrable Securities, including, without limitation, all registration and filing fees, underwriting expenses (other than
fees, commissions or discounts), expenses of any audits incident to or required by any such registration, fees and expenses of complying with securities and "blue sky" laws, printing expenses, fees
and expenses of the Company's counsel and accountants and fees and expenses of one counsel for the holders of Registrable Securities participating in such registration as a group (selected by the
Investor), shall be paid by the Company. All Selling Expenses relating to Registrable Securities registered pursuant to this Agreement shall be borne and paid by the holders of such Registrable
Securities, in proportion to the number of Registrable Securities registered for each such holder. 

7.    Indemnification.    

	(a)
	The
Company shall indemnify and hold harmless, to the fullest extent permitted by law, each holder of Registrable Securities, such holder's officers,
directors, managers, members, partners, stockholders and Affiliates, each underwriter, broker or any other Person acting on behalf of such holder of Registrable Securities and each other Person, if
any, who controls any of the foregoing Persons within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, against all losses, claims, actions, damages,
liabilities and expenses, joint or several, to which any of the foregoing Persons may become subject under the Securities Act or otherwise, insofar as such losses, claims, actions, damages,
liabilities or expenses arise out of or are based upon any untrue or alleged untrue statement of a material fact contained in any Registration Statement, Prospectus, preliminary Prospectus, free
writing prospectus (as defined in Rule 405 promulgated under the Securities Act) or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required
to be stated therein or necessary to make the statements therein not misleading, or any violation or alleged violation by the Company of the Securities Act or any other similar federal or state
securities laws or any rule or regulation promulgated thereunder applicable to the Company and relating to action or inaction required of the Company in connection with any such registration,
qualification or compliance; and shall reimburse such Persons for any legal or other expenses reasonably incurred by any of them in connection with investigating or defending any such loss, claim,
action, damage or liability, except insofar as the same are caused by or contained in any information furnished in writing to the Company by such holder expressly for use therein or by such holder's
failure to deliver a copy of the Registration Statement, Prospectus, free-writing prospectus (as defined in Rule 405 promulgated under the Securities Act) or any amendments or
supplements thereto (if the same was required by applicable law to be so delivered) after the Company has furnished such holder with a sufficient number of copies of the same prior to any written
confirmation of the sale of Registrable Securities. The indemnification provided for under this Section 7(a) shall remain in full force and
effect regardless of any investigation made by or on behalf of the indemnified party or any officer, 

8

 

director
or controlling Person of such indemnified party and shall survive the transfer of the Registrable Securities by the Investor pursuant to  Section 14.  

	(b)
	In
connection with any registration in which a holder of Registrable Securities is participating, each such holder shall furnish to the Company in writing
such information and affidavits as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus and, to the extent permitted by law, shall indemnify and
hold harmless, the Company, each director of the Company, each officer of the Company who shall sign such Registration Statement, each underwriter, broker or other Person acting on behalf of the
holders of Registrable Securities and each Person who controls any of the foregoing Persons within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
against any losses, claims, actions, damages, liabilities or expenses resulting from any untrue or alleged untrue statement of material fact contained in the Registration Statement, Prospectus,
preliminary Prospectus, free writing prospectus (as defined in Rule 405 promulgated under the Securities Act) or any amendment thereof or supplement thereto or any omission or alleged omission
of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or omission is contained in any
information or affidavit so furnished in writing by such holder; provided, that the obligation to indemnify shall be several, not joint and several, for
each holder and shall be limited to the net proceeds (after underwriting fees, commissions or discounts) actually received by such holder from the sale of Registrable Securities pursuant to such
Registration Statement.

	(c)
	Promptly
after receipt by an indemnified party of notice of the commencement of any action involving a claim referred to in this  Section 7, such indemnified party shall, if a claim in respect thereof is
made against an indemnifying party, give written notice to the latter
of the commencement of such action. The failure of any indemnified party to notify an indemnifying party of any such action shall not (unless such failure shall have a material adverse effect on the
indemnifying party) relieve the indemnifying party from any liability in respect of such action that it may have to such indemnified party hereunder. In case any such action is brought against an
indemnified party, the indemnifying party shall be entitled to participate in and to assume the defense of the claims in any such action that are subject or potentially subject to indemnification
hereunder, jointly with any other indemnifying party similarly notified to the extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and after written notice from
the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be responsible for any legal or other expenses subsequently incurred
by the indemnified party in connection with the defense thereof; provided, that if (i) any indemnified party shall have reasonably concluded that
there may be one or more legal or equitable defenses available to such indemnified party which are additional to or conflict with those available to the indemnifying party, or that such claim or
litigation involves or could have an effect upon matters beyond the scope of the indemnity provided hereunder, or (ii) such action seeks an injunction or equitable relief against any
indemnified party or involves actual or alleged criminal activity, the indemnifying party shall not have the right to assume the defense of such action on behalf of such indemnified party without such
indemnified party's prior written consent (but, without such consent, shall have the right to participate therein with counsel of its choice) and such indemnifying party shall reimburse such
indemnified party and any Person controlling such indemnified party for that portion of the fees and expenses of any counsel retained by the indemnified party which is reasonably related to the
matters covered by the indemnity provided hereunder. If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it shall not be obligated to pay the fees and
expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such 

9

 

claim,
unless in the reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim.
In such instance, the conflicting indemnified parties shall have a right to retain one separate counsel, chosen by the Investor, at the expense of the indemnifying party. No indemnifying party shall,
without the prior written consent of the indemnified party, settle or compromise or consent to the entry of any judgment with respect to any litigation or proceeding commenced or threatened, or any
claim whatsoever in respect of which (i) any indemnified person is or could have been a party and (ii) indemnification or contribution could be sought under this  Section 7, unless such
settlement, compromise or consent (x) includes an unconditional release of each indemnified party from all
liability arising out of such litigation, investigation, proceeding or claim and (y) does not include any statement as to or an admission of fault, culpability or failure to act by or on behalf
of any indemnified party.  

	(d)
	If
the indemnification provided for hereunder is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any
loss, claim, damage, liability or action referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amounts paid or payable by
such indemnified party as a result of such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of
the indemnified party on the other in connection with the statements or omissions which resulted in such loss, claim, damage, liability or action as well as any other relevant equitable
considerations; provided, that the maximum amount of liability in respect of such contribution shall be limited, in the case of each holder of
Registrable Securities, to an amount equal to the net proceeds (after underwriting fees, commissions or discounts) actually received by such seller from the sale of Registrable Securities effected
pursuant to such registration. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties'
relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties agree that it would not be just and equitable if contribution pursuant
hereto were determined by pro rata allocation or by any other method or allocation which does not take account of the equitable considerations referred
to herein. No Person guilty or liable of fraudulent misrepresentation shall be entitled to contribution from any Person. 

8.    Participation in Underwritten Registrations.    No Person may participate in any registration hereunder which is underwritten
unless such Person (a) agrees to sell such Person's securities on the basis provided in any underwriting arrangements approved by the Person or Persons entitled hereunder to approve such
arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents required under the terms of such underwriting
arrangements; provided, that no holder of Registrable Securities included in any underwritten registration shall be required to make any representations
or warranties to the Company or the underwriters (other than representations and warranties regarding such holder, such holder's ownership of its shares of Common Stock to be sold in the offering and
such holder's intended method of distribution) or to undertake any indemnification obligations to the Company or the underwriters with respect thereto, except as otherwise provided in  Section 7.

9.    Rule 144 Compliance.    With a view to making available to the holders of Registrable Securities the benefits of
Rule 144 under the Securities Act and any other rule or regulation of the Commission that 

10

 

may
at any time permit a holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3 (or any successor form), the Company
shall: 

	(a)
	make
and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act, at all times after the
date of registration;

	(b)
	use
best efforts to file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the
Exchange Act, at any time after the Company has become subject to such reporting requirements; and

	(c)
	furnish
to any holder so long as the holder owns Registrable Securities, promptly upon request, a written statement by the Company as to its compliance with
the reporting requirements of Rule 144 under the Securities Act and of the Securities Act and the Exchange Act, a copy of the most recent annual or quarterly report of the Company, and such
other reports and documents so filed or furnished by the Company as such holder may request in connection with the sale of Registrable Securities without registration. 

10.    Preservation of Rights.    The Company shall not (a) grant any registration rights to third parties that are more
favorable than or inconsistent with the rights granted hereunder, or (b) enter into any agreement, take any action, or permit any change to occur, with respect to its securities that violates
or subordinates the rights expressly granted to the holders of Registrable Securities in this Agreement. 

11.    Termination.    This Agreement shall terminate and be of no further force or effect when there shall no longer be any
Registrable Securities outstanding; provided, that the provisions of Section 6 and  Section 7 shall
survive any such termination. 

12.    Notices.    All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing
(including by facsimile), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered against receipt or upon actual receipt of (i) personal
delivery, (ii) delivery by reputable overnight courier, (iii) delivery by facsimile transmission with telephonic confirmation or (iv) delivery by registered or certified mail,
postage 

11

 

prepaid,
return receipt requested, addressed as set forth below (or to such other address as may be hereafter notified by the respective parties hereto in accordance with this  Section 12.): 

 

				
	 	 
	 	 

	 	The Company:	 	Ares Commercial Real Estate Corporation

Two North LaSalle Street, Suite 925

Chicago, IL 60602

Attention: Chief Financial Officer

Fax: (312) 324-5901
	
 	
 with a copy to:	
 	
Ares Commercial Real Estate Corporation

Two North LaSalle Street, Suite 925

Chicago, IL 60602

Attention: Legal Department

Fax: (312) 324-5901
	
 	

 	
 	
Proskauer Rose LLP

2049 Century Park East, 32nd Floor

Los Angeles, CA 90067

Attention: Monica J. Shilling

Fax: (310) 557-2193
	
 	
 The Investor:	
 	
Ares Investments Holdings LLC

2000 Avenue of the Stars, 12th Floor

Los Angeles, CA 90067

Attention: Richard Davis

Fax no.: (310) 201-4170
	
 	
 with a copy to:	
 	
Ares Investments Holdings LLC

2000 Avenue of the Stars, 12th Floor

Los Angeles, CA 90067

Attention: Michael Weiner

Fax no.: (310) 201-4170

 

 13.    Entire Agreement.    This Agreement contains the entire agreement and understanding among the parties hereto with respect to
the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with
respect to the subject matter hereof. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. 

14.    Successor and Assigns.    This Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, personal representatives, successors and permitted assigns as provided herein. The Investor may assign its rights hereunder to any purchaser or transferee of Registrable Securities;  provided, that such purchaser or transferee shall, as a condition to the effectiveness of such assignment, be required to execute a counterpart to this
Agreement agreeing to be treated as the Investor whereupon such purchaser or transferee shall have the benefits of, and shall be subject to the restrictions contained in, this Agreement as if such
purchaser or transferee was originally included in the definition of the Investor herein and had originally been a party hereto. To the extent that the Investor assigns a portion of its Registrable
Securities to one or more non-affiliated assignees, any determinations to be made by the "Investor" shall be made by the holders of a majority of the Registrable Securities then
outstanding. 

15.    No Third-Party Beneficiaries.    This Agreement is for the sole benefit of the parties hereto and their respective successors
and permitted assigns and nothing herein, express or implied, is intended to 

12

 

or
shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Agreement. 

16.    Headings.    The section and subsection headings in this Agreement are for convenience in reference only and shall not be
deemed to alter or affect the interpretation of any provisions hereof. 

17.    Amendment, Modification and Waiver.    The provisions of this Agreement may only be amended, modified, supplemented or waived
with the prior written consent of the Company and the Investor. No failure to exercise and no delay in exercising, on the part of a party hereto, any right, remedy, power or privilege hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. No
waiver of any provision hereunder shall be effective unless it is in writing and is signed by the party granting such waiver. 

18.    Severability.    Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

19.    Remedies.    Each holder of Registrable Securities, in addition to being entitled to exercise all rights granted by law,
including recovery of damages, shall be entitled to specific performance of its rights under this Agreement. The Company acknowledges that monetary damages would not be adequate compensation for any
loss incurred by reason of a breach by it of the provisions of this Agreement and the Company hereby agrees to waive the defense in any action for specific performance that a remedy at law would be
adequate. 

20.    Governing Law; Submission to Jurisdiction.    This Agreement and the rights and obligations of the parties under this
Agreement shall be governed by, and construed and interpreted in accordance with, the law of the State of New York. each of the parties hereto irrevocably submits to the exclusive jurisdiction of the
courts of the state of New York and the United States District Court for any district within such state for the purpose of any action or judgment relating to or arising out of this Agreement or any of
the transactions contemplated hereby and to the laying of venue in such court. 

21.    Waiver of Jury Trial.    Each party hereto acknowledges and agrees that any controversy that may arise under this Agreement
is likely to involve complicated and difficult issues, and, therefore, each such party hereby irrevocably and unconditionally waives to the fullest extent permitted by applicable law, any right such
party may have to a trial by jury in respect to any action directly or indirectly arising out of, under or in connection with or relating to this Agreement or the transactions contemplated by this
Agreement. 

22.    Counterparts.    This Agreement may be executed by the parties to this Agreement on any number of separate counterparts
(including by facsimile), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. 

[SIGNATURE
PAGE FOLLOWS] 

13

 

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

 

					
	 	 	 Ares Commercial Real Estate Corporation
	

 	
 	
  By:	
 	
 

 
	 	 	Name:	 	 
	 	 	Title:	 	 
	

 	
 	
 Ares Investments Holdings LLC
	

 	
 	
  By:	
 	
  

 
	 	 	Name:	 	 
	 	 	Title:	 	 

 

 14

QuickLinks

Exhibit 10.1

FORM OF REGISTRATION RIGHTS AGREEMENT

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