Document:

Exhibit 10.3 - Consulting Agreement with Woodburn Holdings Ltd.

Exhibit 10.3

CONSULTING AGREEMENT

This Consulting Agreement ("Agreement") is made and entered into effective as of February 1st, 2006 by HIGH GRADE MINING CORP., a Nevada corporation ("Corporation"), and WOODBURN HOLDINGS LTD. (the "Consultant")

WHEREAS, the Corporation desires to retain the services of a corporate consultant and the services of its designated representative and the Consultant has agreed to accept such appointment on the terms and conditions herein contained:

NOW THEREFORE, IT IS AGREED AS FOLLOWS:

Section 1-Duties.  

The Consultant agrees to the appointment hereunder and during the term of this Agreement, the Consultant agrees to appoint its sole shareholder, Robert Baker, to serve the Corporation as its Corporate Secretary.  The Consultant's designated representative shall provide such managerial, administrative and other services as are customarily associated with or incidental to the Chief Administrative Officer position and the representative shall perform such other duties and responsibilities for the Corporation as the Corporation may reasonably require, consistent with such position.  The services to be provided by the Consultant and its designated representative shall be provided from the consultant's head office or chief place of business located in the Municipality of West Vancouver, Province of British Columbia.  The Consultant shall ensure that a substantial amount of time is devoted to the business and affairs of the Corporation. 

Section 2-Term of Appointment

2.1 Definitions.  For the purposes of this Agreement the following terms shall have the following meanings:

2.1.1  "Termination For Cause" shall mean termination by the Corporation of the Consultant's engagement by reason of any representative or designated appointee of the Consultant engaging in acts of willful dishonesty towards, fraud upon, or deliberate injury or attempted injury to the Corporation.

2.1.2  "Termination Other Than For Cause" shall mean termination by the Corporation of the Consultant's engagement by the Corporation (other than in a Termination for Cause) and shall include constructive termination by reason of a material breach of this Agreement by the Corporation, such constructive termination to be effective upon notice from the Consultant to the Corporation of such constructive termination.

2.1.3  "Voluntary Termination" shall mean termination by the Consultant of its engagement other than (i) constructive termination as described herein, (ii) "Termination Upon a Change in Control," and (iii) termination by reason of the death or disability of the Consultant's representative as described herein.

2.1.4  "Termination Upon a Change in Control" shall mean a termination by the Consultant of the Consultant's engagement with the Corporation within 120 days following a "Change in Control."

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2.1.5  "Change in Control" shall mean (i) the time that the Corporation first determines that any person and all other persons who constitute a group (within the meaning of ' 13(d)(3) of the Securities Exchange Act of 1934 ("Exchange Act")) have acquired direct or indirect beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of twenty percent (20%) or more of the Corporation's outstanding securities, unless a majority of the "Continuing Directors" approve the acquisition not later than ten (10) business days after the Corporation makes that determination, or (ii) the first day on which a majority of the members of the Corporation's board of directors are not "Continuing Directors."

2.1.6  "Continuing Directors" shall mean, as of any date of determination, any member of the Corporation's board of directors who (i) was a member of that board of directors on the date of commencement of this Agreement, or (ii) was nominated for election or elected to the Corporation's board of directors with the affirmative vote of the greater of a majority of the Continuing Directors who were members of the Corporation's board of directors at the time of such nomination or election.

2.2 Initial Term.  The term of engagement of the Consultant by the Corporation shall be for a period of 24 months beginning with the Effective Date ("Initial Term"), unless terminated earlier pursuant to this Agreement.  At any time prior to the expiration of the Initial Term, the Corporation and the Consultant may by mutual written agreement extend the Consultant's engagement under the terms of this Agreement for such additional period as may be agreed.

2.3 Termination For Cause.  Termination For Cause may be effected by the Corporation at any time during the term of this Agreement and shall be effected by written notification to the Consultant and its representatives. 

2.4 Termination Other Than For Cause.  Notwithstanding anything else in this Agreement, the Corporation may effect a Termination Other Than For Cause at any time upon giving written notice to the Consultant of such termination.  Upon any Termination Other Than For Cause, the Consultant and its designated representative shall promptly be paid all accrued salary, bonus compensation to the extent earned, vested deferred compensation (other than pension plan or profit sharing plan benefits which will be paid in accordance with the applicable plan), any benefits under any plans of the Corporation in which the Consultant  or its designated representative is a participant to the full extent of the Consultant's rights under such plans (including accelerated vesting, if any, of awards granted to the Consultant under the Corporation's stock option plan) and any appropriate business expenses incurred by the Consultant in connection with its duties hereunder, all to the date of termination, and all Severance Compensation provided, but no other compensation or reimbursement of any kind.

2.5 Voluntary Termination.  In the event of a Voluntary Termination, the Corporation shall promptly pay all accrued salary, bonus compensation to the extent earned, vested deferred compensation (other than pension plan or profit sharing plan benefits which will be paid in accordance with the applicable plan), any benefits under any plans of the Corporation in which the Consultant or its designated representative is a participant to the full extent of the Consultant's rights under such plans and any appropriate business expenses incurred by the Consultant or its designated representative in connection with their respective duties hereunder, all to the date of termination, but no other compensation or reimbursement of any kind, including without limitation, Severance Compensation.

 

 

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2.6 Termination Upon a Change in Control.  In the event of a Termination Upon a Change in Control, the Consultant and its designated representative shall immediately be paid all accrued salary, bonus compensation to the extent earned, vested deferred compensation (other than pension plan or profit sharing plan benefits which will be paid in accordance with the applicable plan), any benefits under any plans of the Corporation in which the Consultant is a participant to the full extent of the Consultant's rights under such plans (including accelerated vesting, if any, of any awards granted to the Consultant under the Corporation's Stock Option Plan) and any appropriate business expenses incurred by the Consultant in connection with its duties hereunder, all to the date of termination, and all Severance Compensation, but no other compensation or reimbursement of any kind.

2.7 Notice of Termination.  The Corporation may effect a termination of this Agreement pursuant to the provisions of this Section upon giving thirty (30) days' written notice to the Consultant of such termination.  The Consultant may effect a termination of this Agreement pursuant to the provisions of this Section upon giving thirty (30) days' written notice to the Corporation of such termination.

Section 3-Compensation

3.1 Annual Base.  As payment for the services to be rendered by the Consultant as provided in Section 1 and subject to the terms and conditions of Section 2, the Corporation agrees to pay to the Consultant a "Base Compensation" of US$30,000 per annum payable in equal monthly installments of $2,500 each.

3.2 Additional Compensation.  The Consultant's designated representative shall receive options to acquire 675,000 shares of common stock under the Company's nonqualified incentive stock option plan filed on a Form S-8 with the United States Securities and Exchange Commission with an exercise price of $0.50 per share.  

3.3.  Automobile Allowance.  For the term of this Agreement and any extensions thereof the Corporation will reimburse the Consultant for mileage accumulated upon its motor vehicle while being used for corporate matters..

3.4  Reimbursement for Expenses.  During the term of this Agreement, the Corporation shall reimburse the Consultant for reasonable and properly documented out-of-pocket business and/or entertainment expenses incurred by the Consultant in connection with its duties under this Agreement.

Section 4 - Severance Compensation.

4.1 Severance Compensation in the Event of a Termination Upon a Change in Control.  In the event the Consultant's employment is terminated in a Termination Upon a Change in Control, the Consultant shall be paid as severance compensation ("Severance Compensation") his Base Salary (at the rate payable at the time of such termination), for a period of twelve (12) months from the date of such termination.  Notwithstanding anything in this Section to the contrary, the Consultant may in the Consultant's sole discretion, by delivery of a notice to the Corporation within thirty (30) days following a Termination Upon a Change in Control, elect to receive from Compensation a lump sum Severance Compensation payment by bank cashier's check equal to the present value of the flow of cash payments that would otherwise be paid to the Consultant pursuant to this Section.  The Consultant shall also be entitled to an accelerated vesting of any awards granted to the Consultant under the Corporation's Stock Option Plan to the extent provided in the stock option 

CONSULTING AGREEMENT

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agreement entered into at the time of grant.  The Consultant shall continue to enjoy any benefits under any plans of the Corporation in which the Consultant is a participant to the full extent of the Consultant's rights under such plans, including any perquisites provided under this Agreement, though the remaining term of this Agreement.

4.2 Severance Compensation in the Event of a Termination Other Than for Cause.  In the event the Consultant's employment is terminated in a Termination Other Than for Cause, the Consultant shall be paid as Severance Compensation his Base Salary (at the rate payable at the time of such termination), for a period of twelve (12) months from the date of such termination, on the dates specified in Section 3.1. 

4.3 Limit on Aggregate Compensation Upon a Change in Control.  Notwithstanding anything else in this Agreement, solely in the event of a Termination Upon a Change in Control, the amount of Severance Compensation paid to the Consultant, but exclusive of any payments to the Consultant in respect of any stock options then held by the Consultant (or any compensation deemed to be received by the Consultant in connection with the exercise of any stock options at any time) or by virtue of the Consultant's exercise of a Limited Right under the Option Plan upon a Change in Control, shall not include any amount that the Corporation is prohibited from deducting for federal income tax purposes by virtue of ' 280G of the Internal Revenue Code or any successor provision.

Section 6 - Payment Obligations.  

The Corporation's obligation to pay the Consultant the compensation and to make the arrangements provided herein shall be unconditional, and the Consultant shall have no obligation whatsoever to mitigate damages hereunder.  If litigation after a Change in Control shall be brought to enforce or interpret any provision contained herein, the Corporation, to the extent permitted by applicable law and the Corporations' articles of incorporation and bylaws, hereby indemnifies and will pay the Consultant for the Consultant's reasonable attorneys' fees and disbursements incurred in such litigation.

Section 7 - Confidentiality.  

The Consultant agrees that all confidential and proprietary information relating to the Corporation's business shall be kept and treated as confidential both during and after the term of this Agreement, except as may be permitted in writing by the Corporation's board of directors or as such information is within the public domain or comes within the public domain without any breach of this Agreement.

Section 8 - Indemnification.  

The Corporation shall indemnify the Consultant at all times during and after the term of this Agreement to the maximum extent permitted under Nevada Business Corporation Act or any successor provision thereof and any other applicable state law, and shall pay the Consultant's expenses in defending any civil or criminal action, suit, or proceeding in advance of the final disposition of such action, suit or proceeding, to the maximum extent permitted under such applicable state laws.

 

 

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Section 9 - Notices.  

Notice under this Agreement shall be in writing and shall be effective when actually delivered.  If mailed, notice shall be deemed effective 48 hours after mailing as registered or certified mail, postage prepaid, directed to the other party at the address set forth below or such other address as the party may indicate by written notice to the other:

Section 10 - Time.  

Time is of the essence of this Agreement.

Section 11 - No Release.  

Both parties agree that the termination of this Agreement or the expiration of the term of this Agreement shall not release either party from any obligations under Sections this Agreement.

Section 12 - Survival.  

Any of the terms and covenants contained in this Agreement which require the performance of either party after Termination shall survive such Termination. 

Section 13 - Waiver.  

Failure of either party at any time to require performance of any provision of this Agreement shall not limit the party's right to enforce the provision, nor shall any waiver of any breach of any provision be a waiver of any succeeding breach of any provision or a waiver of the provision itself for any other provision.

Section 14 - Assignment.  

Except as otherwise provided within this Agreement, neither party hereto may transfer or assign this Agreement without prior written consent of the other party.

Section 15 - Law Governing.  

This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada.

Section 16 - Attorney Fees.  

In the event a suit or action is brought by any party under this Agreement to enforce any of its terms, or in any appeal therefrom, it is agreed that the prevailing party shall be entitled to reasonable attorneys fees to be fixed by the trial court and/or appellate court.

Section 17 - Presumption.  

This Agreement or any section thereof shall not be construed against any party due to the fact that said Agreement or any section thereof was drafted by said party.

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Section 18 - Computation of Time.  

In computing any period of time pursuant to this Agreement, the day of the act, event or default from which the designated period of time begins to run shall be included, unless it is a Saturday, Sunday or a legal holiday, in which event the period shall begin to run on the next day which is not a Saturday, Sunday or a legal holiday, in which event the period shall run until the end of the next day thereafter which is not a Saturday, Sunday or legal holiday.

Section 19 - Titles and Captions.  

All articles, sections and paragraph titles or captions contained in this Agreement are for convenience only and shall not be deemed part of the context nor affect the interpretation of this Agreement.

Section 20 - Pronouns and Plurals.  

All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the Person or Persons may require.

Section 21 - Entire Agreement.  

This Agreement contains the entire understanding between and among the parties and supersedes any prior understandings and agreements among them respecting the subject matter of this Agreement.

Section 22 - Prior Agreements.  

This document is the entire, final and complete agreement of the parties and supersedes and replaces all prior or existing written and oral agreements. 

Section 23 - Agreement Binding.  

This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto.

Section 24 - Savings Clause.  

If any provision of this Agreement, or the application of such provision to any person or circumstance, shall be held invalid, the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.

Section 25 - Separate Counsel.  

The parties acknowledge that Consultant has not been represented in this transaction by counsel and the Company has been represented by Conrad C. Lysiak, Attorney and Counselor at Law.

 

 

CONSULTING AGREEMENT

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IN WITNESS WHEREOF, the parties have executed this Agreement, the 1st day of February, 2006. 

 

	 	
HIGH GRADE MINING CORP.

	 
	 
	 	
By: ELDEN SCHORN

	 
	 	
Title: C.E.O.

	 
	 
	
Attest:

	 
	
[Seal]

	 
	 	
WOODBURN HOLDINGS LTD.

	 
	 
	 	
By: ROBERT M. BAKER

	 
	 	
Title: President

	 
	 
	
Attest:

	 
	
[Seal]

 

 

 

 

 

 

 

 

 

CONSULTING AGREEMENT

Page 7Exhibit 10.4 - Employment Agreement with Hugh Chisholm.

Exhibit 10.4

EMPLOYMENT AGREEMENT

This Employment Agreement (this "Agreement") dated January 18, 2006, is made by and between Hugh Chisholm and High Grade Mining Corp. ("High Grade"), a US corporation.

In consideration for their mutual promises and covenants and the terms and conditions contained in this Agreement, High Grade hereby offers and Chisholm hereby accepts employment with High Grade upon the terms and conditions set forth herein.

AGREEMENT

1.     Term; Termination of Employment.

1.1     The term of this employment pursuant to this Agreement shall be for a minimum of four (4) months and thereafter shall continue until terminated by High Grade or Chisholm.  Either party may terminate the employment as follows:

	Chisholm may terminate his employment at any time and for any reason upon sixty (60) days written notice to High Grade.

	High Grade may terminate Chisholm's employment at will.  If High Grade terminates Chisholm's employment without cause before April 30th, 2006, no further payments shall be due and payable to Chisholm.  If High Grade terminates Chisholm's employment following May 1st, 2006, Chisholm shall be entitled to severance pay equal to one half of the salary paid to Chisholm for the period of employment following May 1st, 2006 to a maximum of six (6) months severance pay.

	High Grade may terminate Chisholm's employment for cause after reasonable notice of any non-performance has been given by High Grade to Chisholm and an opportunity has been afforded to Chisholm to remedy any instance of non-performance.  For purposes of the preceding sentence, "cause" shall include, dishonesty, fraud, conviction or confession of a felony or of a crime involving moral turpitude, destruction or theft of High Grade's property, physical attach resulting in injury to a fellow employee, intoxication at work, use of narcotics or alcohol to an extent which impairs performance of duties, misconduct materially injurious to High Grade, or any breach or threatened breach of this Agreement.  No severance pay shall be due and payable if Chisholm's employment is terminated for cause.

1.2     If Chisholm's employment is terminated, under paragraph 1.1a or 1.1c he shall continue to be bound by the terms of paragraph 5,6 and 7 of this Agreement.

2.     Duties; Responsibilities.  Chisholm shall hold the offices of Director, President and Chief Operating Officer of High Grade and in such capacity shall carry out the duties and responsibilities commensurate with those offices as set forth in Schedule "A".

 

3.     Compensation.

3.1     During the term of this Agreement, Chisholm shall be paid an income equal to $72,000 per year on a twice-monthly basis.  This salary may be increased from time to time.

As additional compensation Chisholm shall receive the following benefits:

	Incentive Stock Options in such amounts and at such prices as may from time to time be established under a Stock Option Plan to be adopted by High Grade

	Paid vacation benefits of 3 weeks per year subject to the normal policies and procedures established by High Grade from time to time;

4.     Benefits.  Chisholm shall participate fully in all other benefits provided by High Grade to employees in his category of employment.

5.     Covenant Not to Compete.  Subject to Paragraph 1.2 in consideration for the employment granted to him by this Agreement, Chisholm agrees that he will not directly or indirectly compete with High Grade during the term of his employment with High Grade or for a period of three (3) years from the date on which his employment with High Grade terminates, whichever period is longer.  Said covenant not to compete shall include all geographical areas in which High Grade is actively marketing products as of the termination date and shall prohibit the following activities:

	design, develop, manufacture, produce, sell, market, solicit or accept orders with regard to any product, concept, know how or business line which is directly competitive with any aspect of the business of High Grade as conducted as of the termination date, whether or not using any Confidential Information; or

	anywhere in the world where High Grade is actively marketing products or services as of the date of termination of employment, have any business dealings or contacts except those which demonstrably do not relate to or complete with the business or interests of High Grade; or

	be an employee, employer, consultant, officer, director, partner, trustee or shareholder of more than 5% of the outstanding common stock of any person or entity that does any of the activities just listed.

The foregoing restrictive covenant shall not be considered to be breached by reason only of Chisholm holding any shares of a corporation where such shares are publicly traded.

6.     Ownership of Technology; Confidentiality.  Subject to Paragraph 1.2 Chisholm recognizes and acknowledges that during the course of his employment he will have access to certain information not generally known to the public, relating to the products, sales or business of High Grade, which may include without limitation software, literature, data, programs, customer or contact lists, sources of

 

 

supply, prospects or projections, manufacturing techniques, processes, formulas, research or experimental work, work in process, trade secrets or any other proprietary or confidential matter (collectively, the "Confidential Information").  Chisholm recognizes and acknowledges that this Confidential Information constitutes a valuable, special and unique asset of High Grade, access to and knowledge of which are essential to the performance of Chisholm's duties.  Chisholm acknowledges and agrees that all such Confidential Information, including without limitation that which Chisholm conceives or develops, either alone or with others, at any time during his employment by High Grade, is and shall remain the exclusive property of High Grade.  Chisholm further recognizes, acknowledges and agrees that in order to enable High Grade to perform services for its customers or clients, such customers or clients may furnish to High Grade Confidential Information concerning their business affairs, property, methods of operation or other data, that the goodwill afforded to High Grade depends upon High Grade and its employees preserving the confidentiality of such information, and that such information shall be treated as Confidential Information of High Grade and for all purposes under this Agreement.

6.1     Non-Disclosure.  Subject to Paragraph 1.2 Chisholm agrees that, except as directed by High Grade, Chisholm will not at any time, whether during or after his employment with High Grade, use or disclose to any person for any purpose other than for the benefit of High Grade any Confidential Information, or permit any person to use, examine and/or make copies of any documents, files, data or other information sources which contain or are derived from Confidential Information, whether prepared by Chisholm or otherwise coming into High Grade's possession or control, without the prior written permission of High Grade.

6.2     Possession.  Subject to Paragraph 1.2 Chisholm agrees that upon request by High Grade, and in any event upon termination of employment, Chisholm shall turn over to High Grade all confidential information in Chisholm's possession or under his control which was created pursuant to, is connected with or derived from Chisholm's services to High Grade, or which is related in any manner to High Grade's business activities or research and development efforts, whether or not such materials are in Chisholm's possession as of the date of this Agreement.

7.     Saving Provision.  Subject to Paragraph 1.2 High Grade and Chisholm agree and stipulate that the agreements and covenants not to compete contained in the preceding paragraphs 5 and 6, including the scope of the restricted activities described therein and the duration and geographic extent of such restrictions, are fair and reasonably necessary for the protection of High Grade's Confidential Information, goodwill, and other protectable interests, in light of all of the facts and circumstances of the relationship between Chisholm and High Grade.  In the event a court of competent jurisdiction should decline to enforce any provision of the preceding paragraphs, such paragraphs shall be deemed to be modified to restrict Chisholm's competition with High Grade to the maximum extent, in both time and geography, which the court shall find enforceable.

 

 

 

8.     Injunctive Relief.  Chisholm acknowledges that disclosure of any Confidential Information or breach or threatened breach of any of the non-competition and non-disclosure covenants or other agreements contained herein would give rise to irreparable injury to High Grade or clients of High Grade, which injury would be inadequately compensable in money damages.  Accordingly, High Grade or where appropriate, a client of High Grade, may seek and obtain injunctive relief from the breach or threatened breach of any provision, requirement or covenant of this Agreement, in addition to and not in limitation of any other legal remedies which may be available.  Chisholm further acknowledges, agrees and stipulates that, in the event of the termination of employment with High Grade, Chisholm's experience and capabilities are such that Chisholm can obtain employment in business activities which are of a different and non-competing nature with his activities as an employee of High Grade; and that the enforcement of a remedy hereunder by way of injunction shall not prevent Chisholm from earning a reasonable livelihood.  Chisholm further acknowledges and agrees that the covenants contained herein are necessary for the protection of High Grade's legitimate business interests and are reasonable in scope and content.

9.     General.

	This Agreement is made under and subject to the laws of the State of Nevada, USA;

	In the event it becomes necessary to enforce this Agreement through legal action, whether or not suit is actually commenced, the party which obtains substantial success in the legal action shall be entitled to his or its actual reasonable solicitor's fees and disbursements;

	There are no verbal or other agreements which modify or affect this Agreement; and

	All dollars expressed in this Agreement are in US dollars.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement.

	
Employer:
	
Employee:

	
High Grade Mining Corp.

	 
	 
	
Per:
	
ELDEN SCHORN
	
HUGH CHISHOLM

	 	 	
Hugh Chisholm

 

 

 

 

 

- SCHEDULE A-

EMPLOYMENT AGREEMENT

Schedule of Responsibilities: 

*     On site manager of Houston, Texas project office;

*     On site operations manager and supervisor for international emerging projects;

*     Director of Research and/or product development initiatives for securing Green credits; and

*     International manager of contractors, subcontractors and employees embarking on international projects

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