Document:

Exhibit 10.27

 

AMENDMENT NO. 1

TO

LIMITED LIABILITY COMPANY AGREEMENT OF

EUREKA MOLY, LLC

 

This Amendment No. 1 (this
“Amendment”), dated as of October 28, 2008, to the Limited
Liability Company Agreement, dated as of February 26, 2008 (the “LLC
Agreement”) of Eureka Moly, LLC, a Delaware limited liability company (the “Company”),
is between Nevada Moly, LLC, a Delaware limited liability company (“Nevada
Moly”), and POS-Minerals Corporation, a Delaware corporation (“POS-Minerals”).  Capitalized terms used herein and not
otherwise defined herein have the respective meanings set forth in the LLC
Agreement.

 

In consideration of the
covenants and agreements contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Nevada Moly and POS-Minerals agree as follows:

 

AGREEMENT

 

1.                                      Amendment
to Section 1.1.  The table
at the end of Section 1.1 hereby is amended by adding the following
definitions to such table and re-alphabetizing such table as appropriate:

 

	
  Term

  	
   

  	
  Section

  
	
  Initial Budget

  	
   

  	
  Section 8.7

  
	
  Operating Budget

  	
   

  	
  Section 8.7

  

 

2.                                      Amendment
to Section 6.4.  The LLC
Agreement hereby is amended by replacing Section 6.4(a)(i) through (iii) thereof
in its entirety with the following:

 

(i)                                     approval of a Program
and Budget (other than approval of the Initial Program and Budget, which has
been approved, but including approval of any updates to the Initial Program and
Budget), including any Program and Budget for capital costs to be incurred
prior to Commercial Production at the mine that are not within the scope of the
Bankable Feasibility Study;

 

(ii)                                  cost overruns (A) in
excess of the aggregate Initial Budget or (B) in excess of fifteen percent
(15%) of an aggregate approved Operating Budget;

 

(iii)                               any amendment or
modification to any Program and Budget; provided,
that cost overruns (A) that do not exceed the Initial Budget in the
aggregate or (B) that do not exceed fifteen percent (15%) of any aggregate
Operating Budget, and expenditures with respect to Emergencies, shall be deemed
to automatically amend any such Program and Budget;

 

 

3.                                      Amendment
to Section 8.1.  The LLC
Agreement hereby is amended by replacing Section 8.1 thereof in its
entirety with the following:

 

8.1.                            Initial Program and Budget.  A revised initial Program and Budget,
covering the entire period from the Effective Date through commencement of
Commercial Production (as it may be amended, modified or updated with the
unanimous approval of the Representatives on the Management Committee in accordance
with this Agreement, the “Initial Program and Budget”), has been adopted
by the Management Committee pursuant to a unanimous written consent of the
Management Committee dated as of October 28, 2008.  The Initial Program and Budget contains a
monthly Budget through December 31, 2009, and annual Budgets thereafter
through the commencement of Commercial Production.  The Initial Program and Budget shall be
updated annually through the commencement of Commercial Production.

 

4.                                      Amendment
to Section 8.7.  The LLC
Agreement hereby is amended by replacing Section 8.7 thereof in its
entirety with the following:

 

8.7.                            Budget Overruns; Program Changes.  The Manager shall immediately notify the
Management Committee of any material departure from an adopted Program and
Budget.  If the Manager causes or
increases (a) with respect to the Initial Program and Budget, any budget
overruns of the aggregate Budget contained therein (the “Initial Budget”)
or (b) with respect to any approved Program and Budget relating to any
period from and after the commencement of Commercial Production, any aggregate
budget overruns by more than fifteen percent (15%) of the Budget contained
therein (an “Operating Budget”), then, unless otherwise agreed by the
Management Committee by unanimous vote or ratification of the Representatives, (1) any
excess expenditures over the aggregate Initial Budget, or (2) any excess
expenditures over the aggregate fifteen percent (15%) ceiling with respect to
the applicable Operating Budget, unless directly caused by an Emergency
expenditure made pursuant to Section 7.7 or 8.8, shall be at
the sole cost and expense of the Manager. 
Any cost or expenditure that does not cause aggregate overruns of the
Initial Budget, that does not cause aggregate overruns of more than fifteen
percent (15%) of the applicable Operating Budget, or for Emergencies in
accordance with Section 8.8, shall be a cost and expense of the
Company and subject to Monthly Capital Calls.

 

5.                                      Amendment
to Section 8.8.  The LLC
Agreement hereby is amended by replacing Section 8.8 thereof in its
entirety with the following:

 

8.8                               Emergency or Unexpected Expenditures.  In case of Emergency, the Manager shall have
the right and obligation to take such actions as the Manager deems necessary to
protect life, limb or property, to protect the Assets, to comply with Law and
to minimize losses to the Company, in each case in accordance with Standard
Industry Practice.  The Manager may also
make expenditures in accordance with Standard Industry Practice for unexpected
events that are beyond its reasonable control and that do not result from a
breach by it of its standard of

 

2

 

care; provided in the
case of unexpected events that are not Emergencies, such expenditures do not
cause or increase (a) aggregate budget overruns of the Initial Budget, or (b) aggregate
budget overruns of fifteen percent (15%) or more of the applicable approved
Operating Budget.  The Manager shall
promptly notify the Representatives of any such Emergency or unexpected event,
and, to the extent the expenditures with respect to such Emergency or
unexpected event cause or increase aggregate budget overruns of the Initial
Budget, or aggregate budget overruns of the applicable approved Operating
Budget of greater than fifteen percent (15%), shall seek ratification of any
such expenditures by the unanimous vote of the Management Committee.   If expenditures incurred by the Manager with
respect to an Emergency or unexpected event cause or increase aggregate budget
overruns of the Initial Budget, or aggregate budget overruns of greater than
fifteen percent (15%) of the applicable approved Operating Budget, the Manager
shall be reimbursed for such expenditures, (1) in the case of an
Emergency, whether or not approved or ratified by the unanimous vote of the
Management Committee, or (2) in the case of an unexpected event that is
not an Emergency, only if approved or ratified by the unanimous vote of the
Management Committee.

 

6.                                      Amendment
to Exhibit E.  The LLC
Agreement hereby is amended by replacing all references in the LLC Agreement to
“Exhibit E” (after taking into account Sections 1 through 5 above) with “[Reserved].”

 

7.                                      Continuing
Effect.  Except as amended
hereby, the LLC Agreement shall remain in full force and effect.

 

8.                                      Incorporation
By Reference.  Section 1.2
and Article XVI of the LLC Agreement hereby are incorporated, mutatis mutandis, by reference into this
Amendment.

 

[Signatures
on Next Page.]

 

3

 

The parties hereto have executed this
Amendment to be effective as of the date first set forth above.

 

 

	
   

  	
  NEVADA MOLY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Bruce D. Hansen

  
	
   

  	
   

  	
  Bruce D. Hansen,

  
	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  POS-MINERALS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/MK Kim

  
	
   

  	
   

  	
  MK Kim, PresidentExhibit 10.33

 

	
  

  	
  1726
  Cole Blvd. Suite 115

  Lakewood
  CO 80401

  
	
  Phone:

  	
  303-928-8599

  
	
  Fax:

  	
  303-928-8598

  

 

October 5,
2007

 

Robert
Pennington

6200
N. Abington Road

Tucson, AZ 85743

 

Dear
Bob,

 

Congratulations!
Idaho General Mines, Inc. is pleased to offer you the position of Vice
President of Engineering and Construction. The basic terms of our offer follow.
You will report directly to me. Your base salary will be $16,667 per month
($200,000 annually) paid monthly. In addition, you will be eligible for an annual
bonus target of 35% of base pay based on the Company’s determination of your
achievement of assigned objectives.

 

Assuming
you choose to accept our offer, we would like to set a tentative start date on
or before November 1, 2007.

 

You
will be granted options to purchase 150,000 shares of Common Stock in the
Company effective the date of your employment. The shares will vest as follows:
50,000 upon employment; 50,000 on the first anniversary of the grant date and
50,000 on the second anniversary of the grant date. (You must be an employee of
the Company on the vesting date.) The exercise of options will be in accordance
with a Stock Option Agreement and the Company’s 2006 Equity Incentive Plan.

 

In
addition, you will participate in a Project Development Incentive package that
provides the opportunity to receive up to 165,000 shares of Restricted Stock
upon reaching specific goals. Please see the attachment for the specifics of
this package.

 

In
the event of a Change of Control of the company (see attached definition), you
will receive two years of salary ($400,000) and vesting and acceleration of all
stock options and restricted stock.

 

Our
offer and your employment are contingent upon satisfactory completion of a
background check and drug screen. As part of your employment paperwork, federal
law requires that we verify your eligibility for employment in the United
States. You will need to present your original social security card or valid
passport.

 

You are granted three weeks of vacation per year. In accordance with
current Company policy, vacation is accrued at the rate of ten hours per month.

 

 

Your total compensation includes an opportunity to participate in the
Idaho General Mines, Inc. retirement and health and welfare benefit plans,
subject to the terms of the applicable plans.

 

While
we hope that you are with us for a long time, it is important that you
understand that this is dependent upon both you and Idaho General Mines, Inc.
continuing to consider the employment relationship to be of mutual benefit.
Either you or Idaho General Mines, Inc. may terminate the employment
relationship at will at any time.

 

I
look forward to working with you as a member of our Idaho General Mines, Inc.
team. If you have any questions regarding this offer, please call me at (303)
928-8594.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  /s/
  Bruce D. Hansen

  
	
   

  	
   

  
	
   

  	
  Bruce
  Hansen

  
	
   

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  
	
  Accepted:

  	
  /s/
  Robert I. Pennington

  	
   

  	
  Date:

  	
   

  
						

 

 

Robert
Pennington

Project
Development Incentive Package

 

Restricted
Stock: 165,000 shares

 

a)      Engineering &
Procurement: 20,000 shares

 

Goal:
Phase 1, (10,000 shares): If project reaches 25% Engineered stage by the end of
June, 2008.

 

Phase
2, (10,000 shares): If project reaches 65% Engineered stage by end of February,
2009.

 

b)      Construction completion:
30,000 shares

 

Goal:
If all areas of the project are “green tagged” and turned over to Operations to
allow production of TMO within 22 months of initial mobilization.

 

c)      Cost of Contracted
Construction: 30,000 shares

 

Goal:
If the cost of contracted construction including pro-rated contingency
(non-materials) is less than the amount established in the 25% engineered
Control Budget and as adjusted by approved changes in scope.

 

d)      Commissioning: 35,000
shares

 

Goal:
Phase 1, (17,500 shares): If within 4 months of initial ore feed, plant
throughput is at least 80% of design capacity and, Phase 2, (17,500 shares),
MoS2 recovery is greater than 80% for one contiguous month.

 

e)        Production: 50,000
shares:

 

Goal:
When within one calendar month a total of 3 million lbs. of Moly contained in
TMO is produced. Must be within six months of initial start-up

 

These
goals are based on a target plant start date of September 20, 2010.
Determination of completion of these goals may be adjusted to accommodate
changes in the schedule as a result environmental permitting and/or financial
considerations.

 

Change Of Control Definition

 

If
your employment is terminated by the Company as a result of a “Change of
Control,” the Company shall pay to you, upon the effective date of the “Change
of Control” event, two (2) years of your annual salary. Furthermore, all
granted stock options will vest upon the effective date of the closing of the
Change of Control event. For the purposes of this obligation a “Change of
Control” shall mean:

 

(I)            The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 50% or more of either (A) the
then-outstanding shares of common stock of the Company (the “Outstanding
Company Common Stock”) or (B) the combined voting power of the
then-outstanding voting securities of the Company entitled to vote generally in
the election of directors (the “Outstanding Company Voting Securities”);
provided, however, that, for purposes of this paragraph ( I), the following
acquisitions shall not constitute a Change of Control: (i) any acquisition
directly from the Company, (ii) any acquisition by the Company, or (iii) any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any affiliated company;

 

 

(2)             Consummation of a reorganization, merger, statutory
share exchange or consolidation or similar corporate transaction involving the
Company or the acquisition of assets or stock or another entity by the Company (each, a “Business Combination”), in each
case unless, following such Business Combination, (A) all or substantially
all of the individuals and entities that were the beneficial owners of the
Outstanding Company Common Stock and the Outstanding Company Voting Securities
immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 50% of the then- outstanding shares of common stock and
the combined voting power of the then-outstanding voting securities entitled to
vote generally in the election of directors, as the case may be, of the
corporation resulting from such Business Combination (including, without
limitation, a corporation that, as a result of such transaction, owns the
Company or all or substantially all of the Company’s assets either directly or
through one or more subsidiaries) in substantially the same proportions as
their ownership immediately prior to such Business Combination of the
Outstanding Company Common Stock and the Outstanding Company Voting Securities,
as the case may be, and (B) no Person (excluding any corporation resulting
from such Business Combination or any employee benefit plan (or related trust)
of the Company or such corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, 50% or more of, respectively, the
then-outstanding shares of common stock of the corporation resulting from such
Business Combination or the combined voting power of the then-outstanding
voting securities of such corporation, except to the extent that such ownership
existed prior to the Business Combination;

 

(3)             a sale or disposition of all or substantially all of the
operating assets of the Company to an unrelated party; or

 

(4)             approval by the shareholders of the Company of a
complete liquidation or dissolution of the Company.

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