Document:

Executive Bonus Plan

	
	Exhibit 10(g)

	 

	1st Franklin Financial Corporation

	Executive Bonus Plan:  2012

	
	Plan Overview:

	 

	As we analyze the results from 2011, and review the budget set for 2012 and weigh in the economic forecast for the year, we recognize the need today, more than ever, to balance short-term results – growth and profit, with long-term positioning – new product development and improved systems.  This balance is expected to provide the foundation that remains critical for the future success of the Company.

	 

	The short term bonus goals that are set for the Company each year, which are reflected in this Executive Bonus Plan, are the milestones which will drive the overall performance to achieve the long range goals and plans.

	 

	The Executive Bonus Plan for 2012 will focus first on meeting a minimum income requirement threshold, and thereafter meeting five strategic goals.  The combination of these goals is expected to provide a balanced measurement of 1st Franklin’s performance and will also support the achievement of our long term goals.

	 

	

DISCLAIMERS:

“The Company must be in compliance with all credit line debt covenants prior to the disbursement of any bonus.”

Right to Alter Program

The Company reserves the right, at any time, or from time to time during the year, with or without notice, to continue or discontinue this program, or to alter it as necessary in the best interest of the Company.

	

The goals that are set were identified and agreed upon by the Executive Management Team.  Below are the five strategic goals, as well as the minimum income requirement for the 2012 bonus to be paid.

THRESHOLD:  The Company must achieve minimum pre-tax income based on the average pre-tax income for three years ended December 31, 2011 plus the projected accrued incentive bonus at December 31, 2012 divided by 2.  The minimum pre-tax income threshold for 2012 is $15,617,047.

			
	STRATEGIC GOALS:

	 
	 
	 

	 
	1.

	Corporate Net Receivables Growth – a target of 5.0% annual growth;

	 
	2.

	Corporate Delinquency Control – 30 days or more delinquency (including bankrupt accounts) not to exceed 9.50% of receivables;

			
	 
	3.

	Corporate Expenses to Revenue – less than or equal to 86.0%;

	 
	4.

	Corporate Return on Assets (ROA) – greater than or equal to 4.25%;

	 
	5.

	Corporate Pre-tax Income (separate from the threshold goal) - $27.0 million.

	
	PROGRAM ELIGIBILITY:

	 

	Company:  The threshold pre-tax income goal must be achieved for the Executive Bonus Plan to be activated.  After this requirement is achieved, the bonus will be paid based on the achievement of the strategic goals, and will be paid according to the following scale on an individual basis as a percentage of the participant’s annual salary.

		
	No. of Strategic Goals Met

	% Bonus Paid Based on Annual Salary

	 
	(in increments of 5 percentage points)

	1

	Up to 25% (0% - 25%)

	2

	Up to 35% (0% - 35%)

	3

	Up to 45% (0% - 45%)

	4

	Up to 55% (0% - 55%)

	5

	Up to 65% (0% - 65%)

	
	The percentage range is based on many factors, including but not limited to: achieving budget projections, achieving monthly / quarterly objectives, training (both individually and for the respective participant’s employees), performance management review (“PMR”) ratings and achievement of PMR goals, employee retention, managing human resource issues, audit and compliance guidelines, etc.

	 

	Example:  if the Company achieves the threshold, which will then activate the bonus plan, and any two strategic goals, the range of bonus paid will be from 0% to 35% of participants’ annual salary depending on their performance.

	 

	INDIVIDUAL EXCEPTIONS:

If 1st Franklin fails to achieve the minimum requirement of pre-tax income – the Executive Bonus Plan, which is an incentive bonus plan based on performance, will not be paid.  However, the Executive Compensation Committee, which consists of;  Ben Cheek, Chairman; Buddy Cheek, Vice-Chairman; Ginger Herring, President; Roger Guimond, EVP/Chief Financial Officer; Mike Culpepper, EVP/Chief Operating Officer; Kay Lovern, EVP/Strategic and Organizational Development, and Mike Haynie, EVP/Human Resources, may chose to award individual bonuses to a select number of executives.  These exceptions will only be made if those said individuals have achieved an outstanding year by ALL standards.  In such a case, a bonus may be awarded but may be based on a lower scale than the above plan.

	Executive Compensation Committee Review

	 

	The Executive Compensation Committee will review all executive, performance ratings and bonus recommendations and determine the final bonus awarded.

			
	AREA

	RECOMMENDATION

	COMMITTEE MEMBERS

	Home Office Supervisors, Home Office Vice Presidents

	Direct Report

	Ginger Herring, Buddy Cheek, Roger Guimond, Mike Culpepper Mike Haynie, Kay Lovern

			
	Executive Vice Presidents, General Counsel

	Ginger Herring

	Ginger Herring, Buddy Cheek, Ben CheekConverted by EDGARwiz

THIRD AMENDMENT TO MINING LEASE

(RANDALL CLAIMS)

On August 18, 2010 RS Gold, LLC, a Nevada limited liability company, and John C. Power entered into a "Mining Lease (Randall Claims)" affecting the Randall claim group situated in Churchill County, Nevada. The parties subsequently executed a "First and Second Amendments to Mining Lease (Randall Claims)" adding an Area of Interest provision, confirming assignment of the Mining Lease to Magellan Gold Corporation and extending the royalty payment, a Nevada corporation. The parties now wish to amend the Mining Lease as follows:

1.

2011 Advance Royalty Payment. The Annual Advance Royalty Payment of $10,000.00 due on August 18, 2010 (Section 1.2(b)) shall be paid as follows:

a.

 TEN  THOUSAND DOLLARS ($10,000.00) payable before March 31, 2012.

 2. Work Obligation. The Work Obligation of $10,000.00 described in Section 1.4 of the Mining Lease shall be fulfilled by Magellan Gold on or before June 30, 2012 contingent upon Magellan maintaining the lease by paying the royalty payment described above. 

3. Continuing Effect. All other provisions of the Mining Lease shall remain in full force and effect, except as modified by the First Amendment and this Second Amendment.

DATED this 30th day of December , 2011.

RS GOLD, LLC, a Nevada limited liability company

By:  /s/ Randall Stoeberl

RANDALL STOEBERL, Manager

MAGELLAN GOLD CORPORATION, a Nevada Corporation

By:/s/ John C. Power

JOHN C. POWER, Presidentex10b

  
 ADDENDUM NO. 1 TO
 ASSET PURCHASE AGREEMENT
 BY AND BETWEEN
 SPINDLE, INC. (formerly COYOTE HILLS GOLF, INC.),
 SPINDLE MOBILE, INC. AND
 THE SELLING SHAREHOLDERS
 

 THIS ADDENDUM NO. 1 TO THE ASSET PURCHASE AGREEMENT (“Addendum No. 1”) is made and entered into effective this 29th day of March, 2012, by and among SPINDLE, INC., a Nevada Corporation formerly known as Coyote Hills Golf, Inc. (“SPDL”), SPINDLE MOBILE, INC., a Delaware Corporation (“SMI”), MITCH POWERS, a shareholder and officer of Purchaser (“Powers”), STEPHANIE ERICKSON, a shareholder and officer of Purchaser (“Erickson”), and KAMIAR KHATAMI, an individual (“Khatami”) (all of whom are collectively referred to hereinafter as the “Parties”).  
 

 RECITALS
 

 A.
 On December 2, 2011, SPDL purchased the certain tangible and intangible assets of SMI.  In exchange for the assignment of the Assets, SPDL agreed to the following:
 

 1.
 The assumption of liabilities of SMI associated with the case United States District Court for the District of Arizona; Case #01-CV-441; Net MoneyIN, Inc. v Eprocessing Network;
 

 2.
 The issuance of 13,220,000 shares of the Registrant’s unregistered common stock;
 

 3.
 The cancellation by Ms. Erickson of 20,000,000 shares of the Registrant’s common stock owned by her; 
 

 4.
 The cancellation by Mr. Powers of 20,000,000 shares of the Registrant’s common stock owned by him; and
 

 5.
 The cancellation by Mr. Khatami of 1,200,000 shares of the Registrant’s common stock owned by him.
 

 B.
 Subject to the terms and conditions set forth in the Asset Purchase Agreement, the Agreement became effective on December 2, 2011.
 

 C.
 As of the date of this Addendum No. 1, the current officers and directors of SPDL determined that the shares to be issued to Spindle Mobile contained a typographical error.
 

 D.
 As of the date of this Addendum No. 1, the current officers and directors of SPDL determined that the shares stipulated to be canceled by Erickson, Powers and Khatami were erroneously calculated for cancellation.  
 

 

 	 	
	 ADDENDUM NO. 1 TO ASSET PURCHASE AGREEMENT 
	  Page 1 of 3

 

 

 
 NOW, THEREFORE, for and in consideration of the foregoing, and of the mutual covenants, agreements, undertakings, representations and warranties contained herein, the parties hereto agree as follows:
 

 1.
 Section 1.4 Consideration, is revised, as follows:
 

 Subject to the terms and conditions set forth in this Agreement, as consideration for the Purchased Assets, Purchaser agrees to pay, or cause to be paid, to Seller an aggregate purchase price (the “Purchase Price”) equal Thirteen Million Two Hundred Thousand (13,200,000) shares of Purchaser’s Common Stock (the “Purchase Price” or the “Stock Consideration”).  
 

 2.
 Section 3.3 Capitalization of Purchaser, is revised to reflect:
 

 (A)
 At or prior to Closing, Powers shall return, and Purchaser shall cancel, 19,965,000 shares of common stock owned by Powers (the “Powers Cancelled Shares”).
 

 (B)
 At or prior to Closing, Erickson shall return, and Purchaser shall cancel, 19,965,000 shares of common stock owned by Powers (the “Erickson Cancelled Shares”).
 

 (C)
 At or prior to Closing, Khatami shall return, and Purchaser shall cancel, 1,190,000 shares of common stock owned by Khatami (the “Khatami Cancelled Shares”).
 

 (D)
 On the closing date of this Agreement, and after allowing for the cancellation of the shares owned by the SPDL Shareholders, Purchaser shall have 3,280,000 shares issued and outstanding.
 

 (E)
 Upon closing and consummation of this Agreement, Purchaser shall have 16,480,000 shares of its common stock issued and outstanding.
 

 3.
 Other than as specifically provided in this Addendum No. 1, all other provisions of the Asset Purchase Agreement shall remain in full force and effect, the Asset Purchase Agreement as amended by this Addendum No. 1 constituting the sole and entire agreement between the parties as to the matters contained herein, and superseding any and all conversations, letters and other communications which may have been disseminated by the parties relating to the subject matter hereof, all of which are void and of no effect.
 

 

 

 

 

 	 	
	 ADDENDUM NO. 1 TO ASSET PURCHASE AGREEMENT 
	  Page 2 of 3

 

 

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

 	 	 	 	 	
	 SPINDLE, INC., a Nevada corporation
 (formerly Coyote Hills Golf, Inc.)
	  
	 SPINDLE MOBILE, INC.
 a Delaware corporation

	  
	  
	  
	  
	  

	 By:
	  
	  
	 By:
	  

	  
	  
	  
	  
	  

	 Name:
	 Mitch Powers
	  
	 Name:
	 David J. Ide

	  
	  
	  
	  
	  

	 Title:
	 President
	  
	 Title:
	 President

	  
	  
	  
	  
	  

	  
	  
	  
	  
	  

	 MITCH POWERS, Individually
	  
	 STEPHANIE ERICKSON, Individually

	  
	  
	  
	  
	  

	 By:
	  
	  
	 By:
	  

	  
	  
	  
	  
	  

	 Name:
	 Mitch Powers
	  
	 Name:
	 Stephanie Erickson

	  
	  
	  
	  
	  

	  
	  
	  
	  
	  

	 KAMIAR KHATAMI, Individually
	  
	  

	  
	  
	  
	  
	  

	 By:
	  
	  
	  
	  

	  
	  
	  
	  
	  

	 Name:
	 Kamiar Khatami
	  
	  
	  

 

 

 

 

 

 

 

 	 	
	 ADDENDUM NO. 1 TO ASSET PURCHASE AGREEMENT 
	  Page 3 of 3

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