Document:

ex_10-6.htm

CORRECTED PROMISSORY NOTE

 

	 $192,300.00	 Louisville, Kentucky 

 July 10, 2011

 

FOR VALUE RECEIVED, NTS/VIRGINIA DEVELOPMENT COMPANY, a Virginia corporation (the “Borrower”), with an address at 10172 Linn Station Road, Louisville, Kentucky 40223, promises to pay to the order of NTS FINANCIAL PARTNERSHIP, a Kentucky general partnership (the “Lender”), in lawful money of the United States of America in immediately available funds at its offices located at 10172 Linn Station Road, Louisville, Kentucky 40223, or at such other location as the Lender may designate from time to time, the principal sum of ONE HUNDRED NINETY TWO THOUSAND THREE HUNDRED DOLLARS AND NO CENTS ($192,300.00) (the “Loan”), together with interest accruing on the outstanding principal balance from the date hereof, as provided below:

1.           Interest Rate.  The principal balance of the Loan will bear interest at a fixed rate per annum (calculated on the basis of the actual number of days that principal is outstanding over a year of 360 days) equal to five and thirty-four one-hundredths percent (5.34%) per annum (the “Fixed Rate”).

In no event will the rate of interest hereunder exceed the maximum rate allowed by law.

2.           Payment Terms.  Interest shall be due and payable commencing on the first day of each month beginning August 1, 2011 until September 30, 2011 on which date all outstanding principal and accrued interest shall be due and payable in full (the “Maturity Date”).  Payments received will be applied to charges, fees and expenses (including attorneys’ fees), accrued interest and principal in any order the Lender may choose, in its sole discretion.

3.           Late Payments; Default Rate.  If a payment is more than 15 days late, the Borrower shall also pay to the Lender a late charge equal to 5% of the unpaid portion of the payment or $100, whichever is greater (the “Late Charge”).  Such 15 day period shall not be construed in any way to extend the due date of any such payment.  Upon maturity, whether by acceleration, demand or otherwise, and at the option of the Lender upon the occurrence of any Event of Default (as hereinafter defined) and during the continuance thereof, this Note shall bear interest at a rate per annum (calculated on the basis of the actual number of days that principal is outstanding over a year of 360 days) which shall be four percentage points (4%) in excess of the Fixed Rate in effect from time to time but not more than the maximum rate allowed by law (the “Default Rate”).  The Default Rate shall continue to apply whether or not judgment shall be entered on this Note.  Both the Late Charge and the Default Rate are imposed as liquidated damages for the purpose of defraying the Lender’s expenses incident to the handling of delinquent payments, but are in addition to, and not in lieu of, the Lender’s exercise of any rights and remedies hereunder, under the Loan Documents or under applicable law, and any fees and expenses of any agents or attorneys which the Lender may employ.  In addition, the Default Rate reflects the increased credit risk to the Lender of carrying a loan that is in default.  The Borrower agrees that the Late Charge and Default Rate are reasonable forecasts of just compensation for

  

  

  

anticipated and actual harm incurred by the Lender, and that the actual harm incurred by the Lender cannot be estimated with certainty and without difficulty.

4.           Prepayment.  The indebtedness evidenced by this Note may be prepaid in whole or in part at any time without penalty or premium.

5.           Events of Default.  The occurrence of any of the following events will be deemed to be an “Event of Default” under this Note:

(i)           Borrower fails to make any payment when due hereunder, or fails to otherwise comply with any term or provision of this Note, and such failure is not cured within any applicable cure period or fails to comply;

(ii)           The filing by or against Borrower of any proceeding in bankruptcy, receivership, insolvency, reorganization, liquidation, conservatorship or similar proceeding (and, in the case of any such proceeding instituted against any Obligor, such proceeding is not dismissed or stayed within 30 days of the commencement thereof);

(iii)           Any assignment by Borrower for the benefit of creditors, or any levy, garnishment, attachment or similar proceeding is instituted against any property of Borrower;

(iv)           A judgment or judgments are entered against Borrower, Borrower defaults in the payment of any other debts or there is a material adverse change in the financial condition of Borrower, or the Lender in good faith believes the prospects for repayment of this Note have been impaired; and

(v)           Any material statement made to the Lender about Borrower, or about Borrower’s financial condition, or about any collateral securing this Note is false or misleading.

Upon the occurrence of an Event of Default: (a) in an Event of Default specified in clauses (ii) or (iii) above shall occur, the outstanding principal balance and accrued interest hereunder together with any additional amounts payable hereunder shall be immediately due and payable without demand or notice of any kind; (b) if any other Event of Default shall occur, the outstanding principal balance and accrued interest hereunder together with any additional amounts payable hereunder, at the option of the Lender and without demand or notice of any kind may be accelerated and become immediately due and payable; (c) at the option of the Lender, this Note will bear interest at the Default Rate from the date of the occurrence of the Event of Default; and (d) the Lender may exercise from time to time any of the rights and remedies available to the Lender under applicable law.

6.           Indemnity.  The Borrower agrees to indemnify each of the Lender, each legal entity, if any, who controls, is controlled by or is under common control with the Lender, and each of their respective directors, officers and employees (the “Indemnified Parties”), and to hold each Indemnified Party harmless from and against any and all claims, damages, losses, liabilities and expenses (including all fees and charges of internal or external counsel with whom any Indemnified Party may consult and all expenses of litigation and preparation therefor) which any

  

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Indemnified Party may incur or which may be asserted against any Indemnified Party by any person, entity or governmental authority (including any person or entity claiming derivatively on behalf of the Borrower), in connection with or arising out of or relating to the matters referred to in this Note whether (a) arising from or incurred in connection with any breach of a representation, warranty or covenant by the Borrower, or (b) arising out of or resulting from any suit, action, claim, proceeding or governmental investigation, pending or threatened, whether based on statute, regulation or order, or tort, or contract or otherwise, before any court or governmental authority; provided, however, that the foregoing indemnity agreement shall not apply to any claims, damages, losses, liabilities and expenses solely attributable to an Indemnified Party’s gross negligence or willful misconduct. The indemnity agreement contained in this Section shall survive the termination of this Note, payment of any amounts hereunder and the assignment of any rights hereunder.  The Borrower may participate at its expense in the defense of any such auction or claim.

7.           Miscellaneous. All notices, demands, requests, consents, approvals and other communications required or permitted hereunder (“Notices”) must be in writing (except as may be agreed otherwise above with respect to borrowing requests) and will be effective upon receipt. Notices may be given in any manner to which the parties may separately agree, including electronic mail.  Without limiting the foregoing, first-class mail, facsimile transmission and commercial courier service are hereby agreed to as acceptable methods for giving Notices.  Regardless of the manner in which provided, Notices may be sent to a party’s address as set forth above or to such other address as any party may give to the other for such purpose in accordance with this section.  No delay or omission on the Lender’s part to exercise any right or power arising hereunder will impair any such right or power.  The Lender’s rights and remedies hereunder are cumulative and not exclusive of any other rights or remedies which the Lender may have under other agreements, at law or in equity.  No modification, amendment or waiver of, or consent to any departure by the Borrower from, any provision of this Note will be effective unless made in a writing signed by the Lender, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  The Borrower agrees to pay on demand, to the extent permitted by law, all costs and expenses incurred by the Lender in the enforcement of its rights in this Note and in any security therefor, including without limitation reasonable fees and expenses of the Lender’s counsel.  If any provision of this Note is found to be invalid, illegal or unenforceable in any respect by a court, all the other provisions of this Note will remain in full force and effect.  The Borrower and all other makers and indorsers of this Note hereby forever waive presentment, protest, notice of dishonor and notice of non-payment.  The Borrower also waives all defenses based on suretyship or impairment of collateral.  If this Notice is executed by more than one Borrower, the obligations of such persons or entities hereunder will be joint and several.  This Note shall bind the Borrower and its heirs, executors, administrators, successors and assigns, and the benefits hereof shall inure to the benefit of the Lender and its successors and assigns; provided, however, that the Borrower may not assign this Note in whole or in part without the Lender’s written consent and the Lender at any time may assign this Note in whole or in part.

This Note has been delivered to and accepted by the Lender and will be deemed to be made in the State where the Lender’s office indicated above is located.  This Note will be interpreted and the rights and liabilities of the Lender and the Borrower determined in

  

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accordance with the laws of the State where the Lender’s office indicated above is located, excluding its conflict of laws rules. The Borrower hereby irrevocably consents to the exclusive jurisdiction of any state or federal court in the county or judicial district where the Lender’s office indicated above is located; provided that nothing contained in this Note will prevent the Lender from bringing any action, enforcing any award or judgment or exercising any rights against the Borrower individually, against any security or against any property of the Borrower within any other county, state or other foreign or domestic jurisdiction.  The Borrower acknowledges and agrees that the venue provided above is the most convenient forum for both the Lender and the Borrower. The Borrower waives any objection to venue and any objection based on a more convenient forum in any action instituted under this Note.

8.           Waiver of Jury Trial.  The Borrower irrevocably waives any and all right it may have to a trial by jury in any action, proceeding or claim of any nature relating to this Note, any documents executed in connection with this Notice or any transaction contemplated in any of such documents.  The Borrower acknowledges that the foregoing waiver is knowing and voluntary.

The Borrower acknowledges that it has read and understands all of the provisions of this Note, including the waiver of jury trial, and has been advised by counsel as necessary or appropriate.

WITNESS the due execution hereof by an authorized officer of Borrower, with the intent to be legally bound hereby.

 

	 	
NTS/VIRGINIA DEVELOPMENT COMPANY,

a Virginia corporation

 

 

 

By:   /s/ Gregory A. Wells         

Name:      Gregory A. Wells

Title:        Executive Vice President

 

4ex10_10.htm

EXHIBIT 10.10

 

 

CONSULTING AGREEMENT

 

THIS AGREEMENT is made effective as of the 15th day of June, 2011 (the “Effective Date”).

 

BETWEEN:

 

BIG SKY MANAGEMENT LTD., a corporation incorporated under the laws of Province of British Columbia

 

(the “Consultant”)

 

AND:

 

DIGITAL VALLEY CORP., a corporation incorporated under the laws of the State of Nevada

 

(the “Company”)

 

WHEREAS:

 

A.           The Company wishes to engage the Consultant to provide consulting services to the Company; and

 

B.           In consideration of the services to be provided to the Company by the Consultant, the Consultant shall be paid a consulting fee on the terms and conditions described in this Agreement.

 

NOW THEREFORE THIS AGREEMENT WITNESSES that for good and valuable consideration, the receipt and adequacy of which is hereby confirmed, the parties hereto do covenant and agree each with the other as follows:

 

	
1.

	
Role of Consultant

 

	
  

	
(1)

	
The Consultant shall:

 

	
  

	
(a)

	
provide strategic planning, financing and other advisory services;

 

	
  

	
(b)

	
assist the Company with business planning, business strategy, financing strategy and the implementation of such plans;

 

	
  

	
(c)

	
advise and assist the Company in negotiations with prospective strategic partners; and

 

  

  

  

 

- 2 -

 

 

	
  

	
(d)

	
assist the Company with prospective merger and acquisition targets,

 

(collectively, the “Services”).

 

(2)           The Company hereby appoints the Consultant to perform the Services for the benefit of the Company as hereinafter set forth, and the Company hereby authorizes the Consultant to exercise such powers as provided under this Agreement.  The Consultant accepts such appointment on the terms and conditions hereinafter set forth.  The Consultant shall have no right or authority, express or implied, to commit or otherwise obligate the Company in any manner whatsoever except to the extent specifically provided herein or specifically authorized in writing by the Company.

 

(3)           For greater certainty, the Consultant shall not advise the Company as to the investing in or the buying and selling of securities.

 

(4)           During the term of this Agreement, the Consultant shall devote sufficient time, attention and ability to the business of the Company, and to any associated company, as is reasonably necessary for the proper performance of the Services pursuant to this Agreement.  Nothing contained herein shall be deemed to require the Consultant to devote its exclusive time, attention and ability to the business of the Company.  During the term of this Agreement, the Consultant shall, and shall cause each of its agents assigned to performance of the Services on behalf of the Consultant, to:

 

	
  

	
(a)

	
at all times perform the Services faithfully, diligently, to the best of the Consultant’s abilities and in the best interests of the Company;

 

	
  

	
(b)

	
devote such of the Consultant’s time, labour and attention to the business of the Company as is necessary for the proper performance of the Services hereunder; and

 

	
  

	
(c)

	
refrain from acting in any manner contrary to the best interests of the Company or contrary to the duties of the Consultant as contemplated herein.

 

(5)           So far as it is not inconsistent nor in conflict with the terms of this Agreement, the Consultant is free to engage in any other remunerative contract, calling or occupation.

 

	
2.

	
Consulting Fee

 

(1)           In consideration of the Services to be rendered by the Consultant to the Company, the Company agrees to pay to the Consultant a fee of $12,500 monthly beginning July 1st 2011 (the “Consulting Fee”), payable as mutually agreed to by the Company and the Consultant.

 

	
3.

	
Payment of Consulting Fee

 

The Consulting Fee shall be paid in cash, by certified cheque or wire transfer.

  

  

  

- 3 -

 

 

	
4.

	
Expenses

 

The Company will reimburse the Consultant for reasonable expenses incurred by the Consultant expressly for the provision of the Services, including, but not limited to, reasonable fees and disbursements of legal counsel, provided that: (i) prior to the Consultant incurring any such expense, the Consultant obtains the consent of the Company by providing the Company with a detailed description of the expense and the manner in which the expense is to be incurred; and (ii) submitting such invoices, receipts and vouchers for any such expenses to the Company for reimbursement.  Invoices for expenses shall be paid within 15 days of receipt by the Company.

 

	
5.

	
Covenants of the Consultant

 

The Consultant agrees to comply with all applicable rules, laws, regulations and policies of any kind whatsoever having application to the carrying out and performance of its obligations under this Agreement.

 

	
6.

	
Covenants of the Company

 

If required, the Company agrees to obtain approval from any applicable regulatory authority for this Agreement and the Consultant agrees that this Agreement will not become effective until any such approval is obtained by the Company.

 

	
7.

	
Term and Termination

 

The term of this Agreement (the “Term”) shall commence on the Effective Date and shall terminate on the earlier of:  (a) a date which is 10 days following delivery of written notice of termination by one party to the other; and (b) twelve months from the Effective Date, unless renewed in writing.  The provisions of Sections 3, 4, 5, 6, 7, 12, 13, 15 and 22 of this Agreement shall survive the termination or expiration of this Agreement.

 

	
8.

	
Independent Contractor

 

(1)           The Consultant is not an employee of the Company for any purpose.  The Consultant understands and agrees that the Consultant’s relationship to the Company is one of an independent contractor.  As such, the Consultant acknowledges and agrees that it is not an agent of the Company and is not authorized to make any representation, contract, or commitment on behalf of the Company unless specifically requested and authorized in writing to do so by the Company.

 

(2)           The Consultant acknowledges and agrees that it shall be responsible for payment to the proper authorities of any and all income taxes, employment insurance premiums, pension/retirement plan contributions and workers’ compensation insurance premiums in respect of the remuneration paid hereunder.

 

  

  

  

- 4 -

 

 

	
9.

	
Communications

 

The Consultant shall not publish or distribute any notices advertising or concerning the Company without the Company’s prior written consent.

10.           Disclaimer of Liability

 

The Consultant expressly disclaims any liability or responsibility to any and all person (past, present or future) including, without limitation, the Company, the Company’s board of directors, any special committee of the board of directors and any shareholder or other stakeholder of the Company:

 

	
  

	
(a)

	
by reason of any unauthorized use, reliance, publication, distribution of or reference to the Consultant or any unauthorized reference to the Consultant or this engagement; or

 

	
  

	
(b)

	
by reason of or in connection with the performance by the Consultant of its engagement hereunder, except to the extent that a court of competent jurisdiction in a final judgment shall determine that the loss, claim, damage or liability resulted from the negligence, fraud or wilful misconduct of the Consultant.

 

	
11.

	
Indemnification

 

The Company hereby agrees to indemnify the Consultant in accordance with Schedule “A” hereto, which Schedule forms part of this Agreement and the consideration of which is the entering into of this Agreement.  Such indemnity (the “Indemnity”) shall be executed and delivered to the Consultant on the execution of this Agreement and shall be in addition to, and not in substitution for, any liability which the Company or any other person may have to the Consultant or other persons indemnified pursuant to the Indemnity apart from such Indemnity.  The Indemnity shall apply to all services contemplated herein.

 

	
12.

	
Limitation of Liability

 

Neither party shall have any liability to the other, by reason of the termination of this Agreement or otherwise, for any special, incidental or consequential damages of any kind, such as compensation for loss of present or prospective profits or revenues or loss of actual or anticipated fees, whether or not the Consultant was advised of the possibility of such damage.

 

	
13.

	
Acknowledgement of Other Activities

 

(1)           The Company acknowledges that the Consultant is engaged in providing services similar to the Services to other companies engaged in the exploration and mining sector, some of whom may be in competition with the Company.  The Company hereby consents to the Consultant’s consulting to such other companies and hereby waives any conflict arising or which may arise out of such consulting activities.  The Company further acknowledges that the Consultant may act in a manner adverse in interest to the Company and consents to such action.

 

  

  

  

- 5 -

 

(2)           The Consultant agrees in the case of a serious conflict which arises as a result of its consulting activities that the Consultant will notify the Company that a serious conflict exists. Unless the Company agrees to the contrary, the Consultant will temporarily prorogue and suspend consulting activities for the Company under this Agreement until the conflict is resolved.  A serious conflict is specifically defined as:

 

	
  

	
(a)

	
the Consultant simultaneously advising the Company and any other party on the acquisition of an interest in the same, specific property or company;

 

	
  

	
(b)

	
the Consultant simultaneously advising the Company and any other party in the case of a takeover bid by the Company for the other party; and

 

	
  

	
(c)

	
the Consultant simultaneously advising the Company and any other party in the case of a takeover bid by the other party for the Company.

 

(3)           During the period of prorogation and suspension of consulting services, the Company will not be liable for the Consulting Fee, or a prorated portion thereof.

 

	
14.

	
Notices

 

(1)           All notices, requests, demands, and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered by hand or if sent by facsimile or e-mail transmission to the party to whom such notice is intended to be given and any notice so delivered or sent shall be deemed to have been duly given on the next succeeding business day following the day on which it was so delivered or sent.

 

(2)           Until changed by notice in writing as aforesaid, the addresses of the parties are:

 

 

	 	 
Consultant:

	 
Big Sky Management Ltd.

	 	 	 
307 - 1178 Hamilton Street

	 	 	 
Vancouver, BC  V6B 2S2

	 	 	 
	 	 	 
Telephone: (604) 484-2405

	 	 	 
	 	 
Company:

	 
Digital Valley Corp.

	 	 	Suite 100 - 1100 Dexter Ave North
	 	 	Seattle, WA 98109
	 	 	 
	 	 	Telephone: (206) 273-7892

 

 

	
  

	
with a copy to:

 

  

  

  

- 6 -

 

	
  

	
Confidentiality

 

(3)           Each party shall treat confidentially and not disclose, and shall cause each of its Representatives (as defined below) to treat confidentially and not disclose, other than as expressly contemplated by this Agreement, any Confidential Information (as defined below) of the other party.

(4)           Either party may disclose Confidential Information only to those of its Representatives who need to know such Confidential Information for the purpose of implementing the transactions contemplated by this Agreement.  Neither party shall use, nor permit its Representatives to use, Confidential Information for any other purpose nor in any way that is, directly or indirectly, detrimental to the other party.

 

(5)           If either party or any of its Representatives receives a request or is legally required to disclose all or any part of the Confidential Information, such party shall (i) immediately notify the other party of the request or requirement, (ii) consult with the other party on the advisability of taking legally available steps to resist or narrow the request or lawfully avoid the requirement, and (iii) if requested by the other party, take all necessary steps to seek a protective order or other appropriate remedy.  If a protective order or other remedy is not available, or if the other party waives compliance with the provisions of this Paragraph 15, (i) the party receiving the request for disclosure or its Representatives, as the case may be, may disclose to the person requiring disclosure only that portion of the Confidential Information which such party is advised by written opinion of counsel is legally required to be disclosed, and (ii) such party shall not be liable for such disclosure unless such disclosure was caused by or resulted from a previous disclosure by such party or its Representatives not permitted by this Agreement.

 

(6)           For purposes of this Paragraph 14, “Confidential Information” means all information, in whatever form communicated or maintained that one party (the “Discloser”) discloses to the other party in connection with the transactions contemplated by this Agreement, including the existence and terms of this Agreement, whether provided before or after the date of this Agreement, and any information provided to the Discloser by third parties under circumstances in which the Discloser has an obligation to protect the confidentiality of such information.  For purposes of this Paragraph 14, “Representatives” means each director, officer, employee, agent, consultant, advisor and other representative of a party who is involved in the transactions contemplated by this Agreement.

 

	
15.

	
Successor and Assigns

 

The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the parties and their respective successors and permitted assigns. Neither the Consultant nor the Company may assign their rights or delegate their obligations under this Agreement without the prior written consent of the other party, provided that the Company may assign this Agreement to an affiliate without the Consultant’s consent.

  

  

  

- 7 -

 

	
16.

	
Invalid Provisions

 

If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws by any court of competent jurisdiction, such illegality, invalidity or unenforceability shall not affect the legality, enforceability or validity of any other provisions or of the same provision as applied to any other fact or circumstance and such illegal, unenforceable or invalid provision shall be modified to the minimum extent necessary to make such provision legal, valid or enforceable, as the case may be.

 

17.           Further Assurances

 

Each party shall promptly do, execute, deliver or cause to be done, executed and delivered all further acts, documents and things in connection with this Agreement that the other party may reasonably require, for the purposes of giving effect to this Agreement.

 

	
18.

	
Time of Essence

 

Time shall be of the essence of this Agreement in all respects.

 

	
19.

	
Entire Agreement

 

This Agreement constitutes the entire agreement between the parties pertaining to the subject matter of this Agreement and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written.  There are no conditions, warranties, representations or other agreements between the parties in connection with the subject matter of this Agreement (whether oral or written, express or implied, statutory or otherwise) except as specifically set out in this Agreement.

 

	
20.

	
Waiver

 

A waiver of any default, breach or non-compliance under this Agreement is not effective unless in writing and signed by the party to be bound by the waiver.  No waiver shall be inferred from or implied by any failure to act or delay in acting by a party in respect of any default, breach or non-observance or by anything done or omitted to be done by the other party.  The waiver by a party of any default, breach or non-compliance under this Agreement shall not operate as a waiver of that party’s rights under this Agreement in respect of any continuing or subsequent default, breach or non-observance (whether of the same or any other nature).

 

	
21.

	
Attornment

 

Each party agrees (i) that any action or proceeding relating to this Agreement may (but need not) be brought in any court of competent jurisdiction in the Province of British Columbia, and for that purpose now irrevocably and unconditionally attorns and submits to the jurisdiction of such British Columbia court; (ii) not to oppose any such British Columbia action or proceeding on the basis of forum non conveniens or for any other reason; and (iii) not to oppose the enforcement against it in any other jurisdiction of any judgment or order duly obtained from a British Columbia court as contemplated by this Paragraph 21.

  

  

  

- 8 -

 

	
22.

	
Governing Law

 

This Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein.

23.           Counterparts

 

This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which taken together shall be deemed to constitute one and the same instrument.  Counterparts may be executed either in original or faxed form and the parties adopt any signatures received by a receiving fax machine as original signatures of the parties; provided, however, that any party providing its signature in such manner shall promptly forward to the other party an original of the signed copy of this Agreement which was so faxed.

 

	
24.

	
Amendments

 

This Agreement may only be amended, supplemented or otherwise modified by written agreement signed by both parties.

 

By signature below, the parties are bound to the terms and conditions of this Agreement:

 

	 	BIG SKY MANAGEMENT LTD.	 
	 	 	 	 
	
 

	
Per: 

	 	 
	 	Name:	Eric Boehnke	 
	 	Title:	President 	 
	 	 	 	 
	 	 	I have authority to bind the corporation	 

 

 

 

	 	DIGITAL VALLEY CORP.	 
	 	 	 	 
	
 

	
Per: 

	 	 
	 	Name:	J. David Brow	 
	 	Title:	Chief Executive Officer	 
	 	 	 	 
	 	 	I have authority to bind the corporation	 

 

 

 

 

 

  

  

  

 

SCHEDULE “A”

 

INDEMNITY

 

In connection with the engagement (the “Engagement”) of Big Sky Management Ltd. (the “Consultant”) pursuant to a consulting agreement (the “Agreement”) between the Consultant and Digital Valley Corp. (the “Company”) dated June 15th, 2011, the Company agrees to indemnify and hold harmless the Consultant, each of its subsidiaries and each shareholder of the Consultant, each of its subsidiaries and each of their respective directors, officers, employees, partners, agents, each other person, if any, controlling the Consultant or any of its subsidiaries and each shareholder of the Consultant (collectively, the “Indemnified Parties” and individually, an “Indemnified Party”), from and against any and all losses, expenses, claims (including shareholder actions, derivative or otherwise), actions, damages and liabilities, joint or several, including the aggregate amount paid in reasonable settlement of any actions, suits, proceedings, investigations or claims and the reasonable fees and expenses of their counsel that may be incurred in advising with respect to and/or defending any action, suit, proceeding, investigation or claim that may be made or threatened against any Indemnified Party or in enforcing this indemnity (collectively the “Claims”) to which any Indemnified Party may become subject or otherwise involved in any capacity insofar as the Claims relate to, are caused by, result from, arise out of or are based upon, directly or indirectly, the Engagement.  The Company also agrees that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company or any person asserting claims on behalf of or in right of the Company for or in connection with the Engagement except to the extent any losses, expenses, claims, actions, damages or liabilities incurred by the Company are determined by a court of competent jurisdiction in a final judgment that has become non-appealable to have resulted from the negligence, fraud or wilful misconduct of such Indemnified Party.  The Company will not, with the Consultant’s prior written consent, settle, compromise, consent to the entry of any judgment in or otherwise seek to terminate any action, suit, proceeding, investigation or claim in respect of which indemnification may be sought hereunder (whether or not any Indemnified Party is a party thereto) unless such settlement, compromise, consent or termination includes a release of each Indemnified Party from any liabilities arising out of such action, suit, proceeding, investigation or claim.

 

Promptly after receiving notice of an action, suit, proceeding or claim against the Consultant or any other Indemnified Party or receipt of notice of the commencement of any investigation which is based, directly or indirectly, upon any matter in respect of which indemnification may be sought from the Company, the Consultant or any such other Indemnified Party will notify the Company in writing of the particulars thereof, provided that the omission so to notify the Company shall not relieve the Company of any liability which the Company may have to the Consultant or any other Indemnified Party except and only to the extent that any such delay in or failure to give notice as herein required prejudices the defence of such action, suit, proceeding, claim or investigation or results in any material increase in the liability which the Company has under this indemnity.

 

The foregoing indemnity shall not apply to the event that a court of competent jurisdiction or a final judgment that has become non-appealable shall determine that such losses, expenses, claim,

  

  

  

- 2 -

 

actions, damages or liabilities to which the Indemnified Party may be subject were primarily caused by the negligence, fraud or wilful misconduct of the Indemnified Party.

 

If for any reason the foregoing indemnity is unavailable (other than in accordance with the terms hereof) to the Consultant or any other Indemnified Party or is insufficient to hold the Consultant or any other Indemnified Party harmless, the Company shall contribute to the amount paid or payable by the Consultant or the other Indemnified Party as a result of such Claim in such proportion as is appropriate to reflect not only the relative benefits received by the Company on the one hand and the Consultant or any other Indemnified Party on the other hand but also the relative fault of the Company, the Consultant or any other Indemnified Party as well as any relevant equitable considerations, provided that the Company shall in any event contribute to the amount paid or payable by the Consultant or any other Indemnified Party as a result of such Claim any excess of such amount over the amount of the fees received by the Consultant under the Agreement.

 

The Company also agrees to reimburse the Consultant for the time spent by its personnel in connection with any Claim at their normal per diem rates.  The Consultant may retain counsel to separately represent it in the defence of a Claim, which shall be at the Company’s expense if (i) the Company does not promptly assume the defence of the Claim, (ii) the Company agrees to separate representation or (iii) the Consultant is advised by counsel that there is an actual or potential conflict in the Company’s and the Consultant’s respective interests or additional defences are available to the Consultant, which makes representation by the same counsel inappropriate.

 

The obligations of the Company hereunder are in addition to any liabilities which the Company may otherwise have to the Consultant, or any other Indemnified Party.

 

	
DATED effective as of the 15th day of June, 2011

 

 

DIGITAL VALLEY CORP.

 

 

	  	
 

 

 

BIG SKY MANAGEMENT LTD.

	
By:

	  	
By:

	  
	
Authorized Signatory

 

	
Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}]]