Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Garuda Capital Corp. - Exhibit 10.3

 

 Exhibit 10.3 

 CONSULTANT AGREEMENT 

 This Consultant Agreement (the "Agreement") is made and entered
  into effective as of the 6th day of May, 2005 (the "Effective Date"),
  between Garuda Capital Corp. a Company incorporated in the State of Nevada with
  offices at 502 –1978 Vine Street, Vancouver, British Columbia, V6K 4S1
  (the "Company") and Newhaven Resources Ltd., a corporation with offices at #101
  – 525 Seymour Street, Vancouver, BC, V6B 3H7 (the “Consultant”).

 WHEREAS: 

 A.               
  The Company intends to set up a corporation in Ghana, through which it intends
  to set up mining operations in Ghana. 

 B.                The
  Company desires to retain the Consultant to provide consultant services to the
  Company on the terms and subject to the conditions of this Agreement. 

 C.                The
  Consultant has agreed to provide the Company with a right of first refusal to
  participate with the Consultant on projects in Ghana.

 THIS AGREEMENT WITNESSES THAT in consideration of the
  premises and mutual covenants contained in this Agreement and other good and
  valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
  the parties, intending to be legally bound hereby, agree as follows: 

 1.                ENGAGEMENT
  AS A CONSULTANT 

 1.1               The
  Company hereby engages the Consultant as a consultant to provide the services
  of the Consultant in accordance with the terms and conditions of this Agreement
  and the Consultant hereby accepts such engagement. 

 2.                TERM
  OF THIS AGREEMENT 

 2.1               The
  term of this Agreement shall become effective and begin as of the Effective
  Date, and shall continue until the close of business on May 31, 2006 (the “Term”).

 3.                CONSULTANT
  SERVICES AND RIGHTS 

 3.1               The
  Consultant agrees to perform the following services and undertake the following
  responsibilities and duties to the Company to be provided by the Consultant
  to the Company as services, and to give the Company the following rights (the
  "Services and Rights"): 

 2

	 	 (a)      	 Ghana Incorporation 

	 
	 	 	  	 The Consultant shall help with the incorporation
        and licensing of a Ghanaian corporation for the Company’s planned
        mining operations in Ghana (the “Ghana Subsidiary”); 

	 
	 	 (b)      	 Provision of Offices 

	 
	 	 	  	 the Consultant shall provide a serviced
        office accommodation in Accra, Ghana for twelve months beginning on June
        1, 2005, which shall include a telephone answering service, facsimile
        services, and participation in a joint map room; 

	 
	 	 (c)      	 Management 

	 
	 	 	  	 the Consultant shall: 

	 
	 	 	 	 i.   
          
	 supervise and manage the Ghana Subsidiary’s
        projects in Ghana for 12 months; 

	 	 	 	 ii.      
	 assist in establishing a field operation on the
        property in Ghana referred to as the “Ho property”; 

	 	 	 	 iii.     
      
	 allow the Ghana Subsidiary to use equipment belonging
        to the Consultant for use in the field operation on the Ho property; 

	 	 	 	 iv.      
	 provide other services that relate to the Ghana
        Subsidiary and its potential projects in Ghana as requested by the Company
        and mutually agreed; and 

	 
	 	(d)	 Right of First Refusal 

	 
	 	 	 	 in the event of any offer acceptable
        to the Consultant relating to mining projects in Ghana at any time or
        times during the Term, the Consultant, prior to acceptance thereof, shall
        give the Company, with respect to each such offer, written notice thereof
        and a copy of said offer including the name and address of the proposed
        entity making the offer (the “Offeror”) and the name and location
        of the mining project (the “Project”), and the Company shall
        have the option and right of first refusal for sixty (60) days after receipt
        of such notice within which to elect to participate in the Project on
        the terms of said offer. If the Company shall elect to participate in
        the Project pursuant to the option and first refusal herein granted, it
        shall give notice of such election within such sixty (60) day period.
        The Company's failure at any time to exercise its option under this paragraph
        shall not affect this agreement and the continuance of the Company's rights
        and options under this and any other paragraph of this agreement. 

 3.1               In
  providing the Services and Rights, the Consultant will: 

 3

	 	 (a)      	 comply with all applicable federal, provincial,
        local and foreign statutes, laws and regulations; 

	 
	 	 (b)      	 not make any misrepresentation or omit to state
        any material fact that will result in a misrepresentation regarding the
        business of the Company; and 

	 
	 	 (c)      	 not disclose, release or publish any information
        regarding the Company without the prior written consent of the Company.
      

 3.4               The
  Consultant will at all times be an independent contractor and the Consultant
  will not be deemed to be an employee of the Company.

 4                
  CONSULTANT FEE 

 4.1               The
  Consultant Services described in paragraph 3.1(c)(iv) may be charged in cash
  by mutual agreement. In consideration for the provision of the balance of the
  Services and Rights during the Term, the Company will issue to Bruce Luckman,
  an employee of the Consultant, a flat fee of 1,000,000 shares of the common
  stock of Garuda Capital Corp., the sole shareholder of the Company, each share
  with a deemed price of $0.12 (US), the most recent price of the stock as
  of May 6, 2005, for total compensation of $112,000 (US). The shares shall
  be registered pursuant to Form S-8 and shall be free from any trading restrictions.

 5                 REIMBURSEMENT
  OF EXPENSES 

 5.1               The
  Company will pay to the Consultant the reasonable third party expenses incurred
  by the Consultant in provision of the Services and Rights, provided the Consultant
  has obtained the prior written approval of the Company.

 6.                TERMINATION

 6.1               The
  Company may terminate this Agreement at any time by giving 30 days notice to
  the Consultant.

 7.               PROPRIETARY
  INFORMATION  

 7.1               The
  Consultant will not at any time, whether during or after the termination of
  this Agreement for any reason, reveal to any person or entity any of the trade
  secrets or confidential information concerning the organization, business, products
  or finances of the Company or of any third party which the Company is under
  an obligation to keep confidential, except as may be required in the ordinary
  course of performing the Consultant Services to the Company, and the Consultant
  shall keep secret such trade 

 4

 secrets and confidential information and shall not use or
  attempt to use any such secrets or information in any manner which is designed
  to injure or cause loss to the Company. Trade secrets or confidential information
  shall include, but not be limited to, the Company's financial statements and
  projections, expansion proposals, product packaging, advertising and marketing,
  business plans and details of its business relationships with suppliers and
  distributors, agents and other parties not otherwise publicly available. 

 8.                RELIEF
  

 8.1              
  The Consultant hereby expressly acknowledges that any breach or threatened breach
  by the Consultant of any of the terms set forth in Section 7 of this Agreement
  may result in significant and continuing injury to the Company, the monetary
  value of which would be impossible to establish, and any such breach or threatened
  breach will provide the Company with any and all rights and remedies to which
  it may be entitled under the law, including but not limited to injunctive relief
  or other equitable remedies. 

 9.               
  INDEMNIFICATION 

 9.1               The
  Consultant will indemnify and defend and hold the Company harmless against any
  claims, actions, suits, proceedings, investigations, losses, expenses, demands,
  obligations, liabilities, judgments, fines, fees, costs and expenses (including
  costs and reasonable attorney fees) and any amounts paid in settlements in any
  of the foregoing which arise or result from or are related to any breach or
  failure of the Consultant to perform any of its covenants and agreements set
  forth in this Agreement. The indemnification provisions of this paragraph shall
  survive the termination and expiration of this Agreement.

 10.               PARTIES
  BENEFITED; ASSIGNMENTS 

 10.1              This
  Agreement shall be binding upon, and inure to the benefit of, the Consultant,
  his heirs and his personal representative or representatives, and upon the Company
  and its successors and assigns. Neither this Agreement nor any rights or obligations
  hereunder may be assigned by the Consultant. 

 11.               NOTICES
  

 11.1              Any
  notice required or permitted by this Agreement shall be in writing, sent by
  registered or certified mail, return receipt requested, or by courier, addressed
  to the Company at its then principal office, or to the Consultant, as the case
  may be, or to such other address or addresses as any party hereto may from time
  to time specify in writing for the purpose in a notice given to the other parties
  in compliance with this Section 11. Notices shall be deemed given when delivered.

 5

 12.               GOVERNING
  LAW 

 12.1              This
  Agreement shall be governed by and construed in accordance with the laws of
  the Province of British Columbia and each party hereto attorns to the exclusive
  jurisdiction of the courts of the Province of British Columbia.

 13.               REPRESENTATIONS
  AND WARRANTIES 

 13.1              The
  Consultant represents and warrants to the Company that (a) the Consultant is
  under no contractual or other restriction which is inconsistent with the execution
  of this Agreement, the performance of his duties hereunder or other rights of
  Company hereunder, and (b) the Consultant is under no physical or mental disability
  that would hinder the performance of his duties under this Agreement. 

 14.               MISCELLANEOUS
  

 14.1              This
  Agreement contains the entire agreement of the parties relating to the subject
  matter hereof.

 14.2              This
  Agreement supersedes any prior written or oral agreements or understandings
  between the parties relating to the subject matter hereof. 

 14.3              No
  modification or amendment of this Agreement shall be valid unless in writing
  and signed by or on behalf of the parties hereto. 

 14.4              A
  waiver of the breach of any term or condition of this Agreement shall not be
  deemed to constitute a waiver of any subsequent breach of the same or any other
  term or condition.

 14.5              This
  Agreement is intended to be performed in accordance with, and only to the extent
  permitted by, all applicable laws, ordinances, rules and regulations. If any
  provision of this Agreement, or the application thereof to any person or circumstance,
  shall, for any reason and to any extent, be held invalid or unenforceable, such
  invalidity and unenforceability shall not affect the remaining provisions hereof
  and the application of such provisions to other persons or circumstances, all
  of which shall be enforced to the greatest extent permitted by law.

 14.6              The
  headings in this Agreement are inserted for convenience of reference only and
  shall not be a part of or control or affect the meaning of any provision hereof.

 6

 14.7              The
  Consultant may assign the benefit of this Agreement to a private corporation
  controlled by the Consultant, provided that such assignment will not relieve
  the Consultant from his obligations to the Company arising under this Agreement.

 14.8              This
  Agreement replaces and supercedes all other consultant and employment agreements
  between the Company and the Consultant and any amendments hereto. 

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

	GARUDA CAPITAL CORP. 	 
	 	 
	 	 
	/s/
      C. Robin Relph 	 
	per: C. Robin Relph, Chairman of the Board	 
	 	 
	 	 
	NEWHAVEN RESOURCES LTD. 	 
	 	 
	 	 
	/s/
      Bruce Luckman 	 
	per: Bruce Luckman, Executive DirectorExhibit 10.1

 

THIRD
AMENDMENT OF RIGHTS AGREEMENT

 

THIS THIRD AMENDMENT (the
“Amendment”) dated as of May 24, 2005, to that certain Rights
Agreement dated as of July 24, 1998, as amended by that First Amendment
thereto dated November 21, 2000 and the Second Amendment thereto dated as
of January 17, 2005 (as amended, the “Rights Agreement”), by and
between Computer Network Technology Corporation, a Minnesota corporation (the “Company”),
and Mellon Investor Services LLC, a New Jersey limited liability company (the “Rights
Agent”).

 

WITNESSETH:

 

WHEREAS, the Company
and the Rights Agent entered into the Rights Agreement; and

 

WHEREAS, in an
action by written consent, the Board of Directors of the Company, in accordance
with Sections 27 and 28 of the Rights Agreement, determined it to be desirable
and in the best interests of the Company and its shareholders to supplement and
amend certain provisions of the Rights Agreement.

 

NOW, THEREFORE, in
consideration of the premises and the mutual agreements herein set forth, the
parties hereby agree as follows:

 

1.                                      Amendment
to Paragraph 7(a).  Paragraph 7(a) of
the Rights Agreement is hereby amended and restated as follows:

 

“(a) The
registered holder of any Right Certificate may exercise the Rights evidenced
thereby (except as otherwise provided in Sections 7(e) and 24 hereof, in
whole or in part at any time after the Distribution Date upon surrender of the
Right Certificate, with the form of election to purchase on the reverse side
thereof duly executed, to the Rights Agent at the principal office of the
Rights Agent, together with payment of the Purchase Price for each one
one-thousandth of a Preferred Share as to which the Rights are exercised, at or
prior to the earliest of (i)  the time of filing of articles of merger
with the Minnesota Secretary of State which causes Condor Acquisition, Inc.,
a Minnesota corporation, to be merged with and into the Company, with the
Company continuing as the Surviving Corporation as a wholly owned subsidiary of
McDATA Corporation, (ii) the close of business on July 23, 2008 (“Final
Expiration Date”), (iii) the time at which the Rights are redeemed as
provided in Section 23 hereof (the “Redemption Date”), or (iv) the
time at which such Rights are exchanged as provided in Section 24 hereof.  The Company will promptly notify the Rights
Agent of any filing of the “articles of merger” referred to herein.”

 

2.                                      Continuing
Effect.  The Rights Agreement,
except as amended hereby, shall be

 

 

and remain in full force and effect.

 

3.                                      Counterparts.  This Amendment may be executed in any
number of counterparts and each of such counterparts shall for all purposes be
deemed an original, and all such counterparts shall together constitute but one
and the same instrument.  Signature pages delivered
by facsimile shall be binding to the same extent as an original.

 

IN WITNESS WHEREOF,
the parties have caused this Amendment to be executed as of the day and year
first above written.

 

	
   

  	
  COMPUTER NETWORK TECHNOLOGY CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By 

  	
  /S/ GREGORY T. BARNUM

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gregory T. Barnum

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MELLON INVESTOR SERVICES LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /S/ GEORG DRAKE

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Georg Drake

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

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