Document:

guinnessexh10_1.htm

Exhibit 10.1

Ansell Capital Corp.

3rd Floor, Bellevue Centre

235-15th Street

West Vancouver, BC

V7T 2X1

October 12, 2010

CONFIDENTIAL

Eagle Trail Properties Inc.

1140 Rose Street, Regina

Saskatchewan

S4R 1Z6

Guinness Exploration, Inc.

P.O. Box 1910- Level 7, Anzac House

181 Willis Street

Wellington, New Zealand 6140

Dear Sirs:

Re:  Mt. Nansen Property, Whitehorse Mining District, Yukon Territory

Earn-In and Acquisition Agreement 

This Letter of Intent will form the basis for and set out the terms and conditions pursuant to which Ansell Capital Corp. (“Ansell”) will receive the right to acquire from Eagle Trail Properties Inc. or its shareholders and designees in a tax structure that remains to be established (“Eagle Trail”)  and Guinness Exploration, Inc. (“Guinness”) up to an 85% undivided interest in and to the Mt. Nansen Property (the “Property”) as herein more particularly  described in Schedule “A” in staged increments.

 

Background

 

Eagle Trail acquired a 100% interest in and to the Property from PricewaterhouseCoopers Inc. on July 16, 2007 and November 21, 2008 pursuant to a sale sanctioned by the Supreme Court of the Yukon Territory (Whitehorse registry action # 04-A0004) for and in consideration of the total sum of $3,200,000, which amount has been paid.

 

Eagle Trail entered into two separate agreements dated November 19, 2009 with Guinness pursuant to which Guinness received the right to purchase under the first agreement (the “Purchase Agreement”) a 65% undivided interest in and to the Property and under a second agreement incorporated in the Purchase Agreement (the “Exploration Agreement”) the right to earn the remaining 35% interest in and to the Property subject to a 3% net smelter royalty reserved by Eagle Trail.

 

By virtue of a modification agreement entered into between Eagle Trail and Guinness, Eagle Trail and Guinness as parties to this Letter of Intent entered into an arrangement pursuant to which Guinness is now deemed to be the holder of a 49% undivided interest in and to the Property and Eagle Trail is deemed to be holder of 51% interest in and to the Property.

  

  

  

Ansell has approached Eagle Trail and Guinness and made an offer to acquire up to an 85% undivided interest in and to the Property (subject to the 3% net smelter return royalty burden due and payable to  Eagle Trail) which offer Eagle Trail and Guinness have conditionally agreed to accept as evidenced by this Letter of Intent.

Terms

The following are the terms agreed to between the Parties:

 

	
  

	
1.

	

Subject to fulfilment of conditions set out in Paragraph 22, Eagle Trail and Guinness agree to grant to Ansell the right to acquire a 49% undivided interest in and  to the Property for and in consideration of the following:

 

	
a)       

	
12,000,000 Units of Ansell to be issued to Eagle Trail at a deemed price of $0.20 per Unit on the Effective Date;

 

	
b)       

	
$500,000 to be paid to Eagle Trail on the Effective Date;

 

	
c)       

	
$500,000 to be paid to Eagle Trail fourteen months following the Effective Date; and

 

	
d)       

	
Ansell spending the aggregate sum of $5,000,000 in Expenditures on the Property on or before the expiry of three years from the Effective Date (of which no less than $2,000,000 shall be spent in the first year following the Effective Date).

	
  

	
2.

	
The Units to be issued to Eagle Trail under Paragraph 1(a) above shall each consist of one common share of Ansell and 0.67 share purchase warrants with one full warrant being exercisable to purchase one additional common share of Ansell at a price of $0.35 for a period of 2 years following the Effective Date.

	
  

	
3.

	
On the date Ansell has issued the Units, paid the sums and spent the amounts required to be spent under Paragraph 1 Ansell shall have earned a 49% undivided interest in and to the Property.

	
  

	
4.

	
Eagle Trail and Guinness further grant to Ansell a right to acquire an additional 36% undivided interest in and to the Property (being 18% from each of Eagle Trail and Guinness) by:

 

	
a)       

	
commissioning the preparation and delivery of a bankable feasibility study on the Property; and

 

	
b)       

	
placing the Property in commercial production.

 

	
  

	
5.

	

The additional interest referred to in section 4 shall be earned in accordance with this section on the date Ansell has:

 

	
a)       

	
obtained and delivered to Eagle Trail and Guinness a bankable feasibility study, Ansell shall have earned  and additional 26% undivided interest in and to the Property; and

 

	
b)       

	
placed the Property in commercial production, Ansell shall have earned an additional 10% undivided interest in and to the Property.

	
  

	
6.

	
Regardless of the interest earned by Ansell, the parties mutually agree that the 15% interest otherwise collectively reserved by Eagle Trail and Guinness and not made available for acquisition by Ansell (the “Reserved Interest”) shall be a carried non cost participating interest through to commercial production.  On the commencement of commercial production Ansell or Ansell, Eagle Trail and Guinness as the case may be shall be entitled to recover the full amount 

 

 

  

2

  

 

 

	
  

	
 

	
of the direct cost attributable to the Reserved Interest as they relate to any bankable debt required to take the Property into commercial production, the cost of constructing production facilities to take the Property into commercial production and all direct operating costs associated with placing the Property in commercial production before the holders of the Reserved Interest are entitled to receive a distribution from net profits derived from operating the Property as a mine.

 

	
  

	
7.

	
Ansell shall be the operator of the Property and sums required to be spent where reference is made to “Expenditures”, shall mean all expenses, obligations and liabilities of whatever kind or nature spent or incurred directly or indirectly by Ansell  from the Effective Date in connection with the exploration, development and mining of the Property; moneys expended toward assaying and metallurgical testing and engineering, environmental studies, data preparation and analysis; costs of acquiring research materials, reports and data; costs of paying the fees, wages, salaries, traveling expenses, and fringe benefits (whether or not required by law) of all persons engaged directly in work with respect to and for the benefit of the Property  and in paying for the food, lodging and other reasonable needs of such persons plus a fee equal to 10% of the amounts so expended as an operator’s fee but the term Expenditures shall specifically exclude general managerial costs, the costs of investor relation activities and other general and administrative costs of Ansell.

	
  

	
8.

	
Following acceptance of this Letter of Intent the parties agree to negotiate in good faith and settle the terms and conditions of a definitive agreement (the “Definitive Agreement”) which shall contain definitions of terms used in this Letter of Intent and terms and conditions customarily contained in such agreements for mining industry commercial transactions of a similar nature and size.  The Definitive Agreement shall contain provisions pursuant to which Ansell will assume, defend, indemnify and hold Eagle Trail and Guinness harmless from and against all obligations and liabilities associated with the Property as of an after the date of this Letter of Intent.

 

	
  

	
9.

	
On the Effective Date the parties will form a “Project Management Committee” consisting of 4 persons to work in concert for the purpose of overseeing the Expenditures which will be incurred on the Property as provided for under Paragraph 1(d) with the parties appointed to the Project Management Committee having the right to:

	
a)       

	
enter upon the Property;

 

	
b)       

	
have exclusive and quiet possession of the Property;

 

	
c)       

	
do such prospecting, exploration, development mining work as Ansell in its sole discretion may consider advisable and including without limitation the removal of ores, minerals and metals from the Property but only for the purpose of testing; and

 

	
d)       

	
bring upon and erect on the Property such equipment as Ansell may consider advisable to undertake work on the Property.

 

	
  

	
The Project Management Committee shall consist of appointees of each of Ansell, Guinness and Eagle Trail with Ansell having the right to appoint two members to the Project Management Committee and each of Eagle Trail and Guinness having the right to appoint one member.

	
  

	
10.

	
In the event Ansell elects to abandon or discontinue any portion of its rights under this Letter of Intent and the Definitive Agreement contemplated hereunder after acquiring a minimum 49% and less than an 85% undivided interest in and to the Property, Ansell, Guinness and Eagle Trail agree to associate themselves in a joint venture (the ”Joint Venture”) for the purpose of:

 

 

  

3

  

 

	
a)       

	
acquiring any mineral interests and equipment not yet acquired,

 

	
b)       

	
exploring for and developing ores, minerals and other products from the Property including opening, developing and operating mines on the Property,

 

	
c)       

	
processing (including beneficiating, leaching, concentrating, smelting, refining or otherwise treating) ores, minerals or other products mined or produced from the Property,

 

	
d)       

	
designing, engineering, constructing and operating production facilities to mine and remove ores, minerals or other products from the Property, and processing ores, minerals or other products mined or produced from the Property,

 

	
e)       

	
marketing, selling and delivering products derived from activities undertaken on the Property,

 

	
f)       

	
performing any other operation or activity necessary, appropriate or incidental to any of the foregoing, and

 

	
g)       

	
selling interests in all or part of the Property to third parties as may be approved unanimously by both parties.

	
  

	
11.

	
At the commencement of the Joint Venture, Ansell shall have a “Venture Share” equal to the interest acquired pursuant to paragraphs 3 or 5  and Eagle Trail and Guinness shall have the remaining Venture Shares in proportion to their respective interests in and to the Property.

	
  

	
12.

	
Each of the Participants shall contribute its pro rata portion of Venture Costs as determined by its Venture Share from time to time.  "Venture Costs" shall include all costs, expenses, liabilities, charges and property payments incurred or accrued on or off the Property within the scope of the Venture including the payment of royalties and performance deposits, determined in accordance with the generally accepted accounting principles consistently applied by excluding all administrative general costs of each Participant.

	
  

	
13.

	
The holder of the majority interest in the Joint Venture shall be appointed the operator (the “Operator”) of the Joint Venture.  Subject to section 16 below, the Operator shall have the sole right and responsibility to supervise and manage the exploration and the development of the Property and the engineering, design and construction of production facilities, and to supervise, manage and conduct activities of the Joint Venture on behalf of the Participants and for this purpose to organize and employ such operating and holding companies as the Operator may deem appropriate.

	
  

	
14.

	
A committee (the "Management Committee") will be formed on the commencement of the Joint Venture composed of two representatives from the holder of the majority interest in the Joint Venture and one from each of the minority interests and such Committee shall make decisions on those matters specified below.  Action by the Management Committee shall be taken on a majority vote of the members of the Management Committee, each member being entitled to one vote for each one percent Venture Share held by the applicable Participant.  Approval of the Management Committee shall be required for the following:

	
a)       

	
any work program and corresponding budget ("Approved Program and Budget"), or  the making of any material revision to any Approved Program and Budget,

 

	
b)       

	
material revision of any recommendations contained in any engineering report,

 

  

4

  

 

 

	
c)       

	
material revision of any construction program,

 

	
d)       

	
any debt incurred on behalf of the Joint Venture, as obligor, to either Participant, the Operator or their affiliates, in any amount, or to any other person in an amount in excess of $100,000 outstanding at any one time, and any guarantee, directly or indirectly, by the Joint Venture of any obligations or undertaking of any other person,

 

	
e)       

	
any suspension or substantial curtailment of Joint Venture activities after production facilities are deemed to be completed, except by reason of force majeure,

 

	
f)       

	
any settlement of any suit or claim involving the Joint Venture for an amount in excess of $100,000, and

 

	
g)       

	
any mutually agreed fee customarily paid to the Operator for acting as Operator.

	
  

	
15.

	
If mutually agreed, the Participants will operate the Joint Venture through a joint venture company to be formed under the laws of the Province of British Columbia or the Yukon Territory and the parties agree that the provisions of this Letter of Intent as embodied in the Definitive Agreement shall apply with any necessary changes as indicative of an agreement between shareholders of the joint venture company.  Specifically, the rights and obligations of the Management Committee shall be performed by the Board of Directors of the Joint Venture Company.

	
  

	
16.

	
The Venture Costs shall be paid out of contributions by the Participants and such contributions shall be allocated and charged to the accounts of the Participants in accordance with their respective Venture Shares as adjusted for the 15% carried interest reserved by Eagle Trail and Guinness as defined under Paragraph 6.

	
  

	
17.

	
Profits and losses of the Joint Venture shall be shared by the Participants in proportion to their respective Venture Shares excepting always for distributions required to be made on the 15%  Reserved Interest as set out in Paragraph 6.  Should a Participant’s Venture Share excluding the Reserved Interest  be diluted by reason of failure to contribute its share of Venture Costs to less than a 10% Venture Share, such Participant’s interest in the Joint Venture will be deemed to terminate and convert into a 1.0% net smelter return royalty interest, and the Joint Venture will thereupon cease.

	
  

	
18.

	
The Participants agree to establish an “Area of Interest” being any part of the lands lying within two kilometers of the external perimeter of the Property, or being subject to an agreement that is, part of the Property and any interest in any lands in the Area of Interest not held by either of the Participants on the date of this Letter of Intent and acquired by or on behalf of any of the Participants thereafter shall be deemed to have been acquired on behalf of all Participants and form part of the Joint Venture and shall be subject to this Letter of Intent, provided that if a Joint Venture has then been formed, the Management Committee agrees to cause the Joint Venture to acquire the same for cost from the Participant holding an interest therein.  Specifically the rights and option of Eagle Trail and Guinness to the Dome 12:73698 claim shall become part of the area of interest and included as part of the Property.  The Area of Interest will however exclude any properties, leases, claims or other interests acquired by Eagle Trail from Aurchem Exploration, a private BC company with whom Eagle Trail has been in discussions on various Yukon claims over the past 18 months, which is greater specificity will be set out in a schedule to be attached to the Definitive Agreement

	
  

	
19.

	
All data, reports, records and other information relating to this Letter of Intent and Definitive Agreement and the parties activities hereunder  as members of the Project Management Committee,  the Management Committee or Participants hereunder shall be treated by the parties as confidential, and, while this Letter of Intent or the Definitive Agreement is in effect, neither Party shall, without the prior approval of the other Party, disclose to any other entity 

 

  

5

  

 

 

	
  

	
 

	
any information concerning the results of exploration operations hereunder or issue any press release concerning this Letter of Intent or its performance, except as such disclosure may be deemed by a Party to be mandatory as a matter of law or regulations issued pursuant thereto.

 

	
  

	
20.

	
Ansell represents, warrants and covenants to and in favour of Eagle Trail and acknowledges that Eagle Trail and Guinness are relying upon such representations and warranties in connection with the Definitive Agreement and entering into this Letter of Intent, that:

 

	
  a)       

	
Ansell has been duly incorporated and organized, and is validly existing as a  corporation, under the Business Corporations Act (British Columbia) and has full corporate power and authority to own its assets and conduct its businesses as now owned and conducted;

 

	
  b)       

	
to the knowledge of Ansell, Ansell has all requisite corporate power and authority to enter into this Letter of Intent and all documents to be delivered pursuant hereto, including the Definitive Agreement and, subject to the terms hereof, to perform its obligations hereunder and thereunder; and

 

	
  c)       

	
to the knowledge of Ansell, there are no claims, actions, suits, judgments, litigation or proceedings pending against or affecting Ansell which will, or which may prevent the completion of the Definitive Agreement, and Ansell is not aware of any existing ground on which any such claim, action, suit, judgment, litigation or proceeding might be commenced;

	
  

	
21.

	
Eagle Trail and Guinness severally represent, warrant and covenant to and in favour of Ansell and acknowledges that Ansell is relying upon such representations and warranties in connection with the Definitive Agreement and entering into this Letter of Intent, that:

	
a)       

	
each has been duly incorporated and organized, and is validly existing as a corporation, under the applicable Corporate legislation of their jurisdiction of incorporation and has full corporate power and authority to own its assets and conduct its business as now owned and conducted, including activities with respect to the Property;

 

	
b)       

	
each is duly qualified to carry on business, and is in good standing, in the Yukon Territory where the nature of its activities makes such qualification necessary;

 

	
c)       

	
each has all requisite corporate power and authority to enter into this Letter of Intent and all documents to be delivered pursuant hereto, including the Definitive Agreement and, subject to the terms hereof, to perform its obligations hereunder and thereunder;

 

	
d)       

	
the Property is in good standing in all respects and held by Eagle Trail free of all liens, charges and encumbrances save and except for the 3% net smelter return Royalty reserved by Eagle Trail of which 1% can be purchased by Ansell or the Joint Venture on or before the expiry of 30 days after Ansell has acquired no less than a 75% undivided interest in and to the Property for $1,500,000; and

 

	
e)       

	
Neither Eagle Trail nor Guinness will breach any other agreement or arrangement by entering into or performing its obligations under this Letter of Intent.

 

 

  

6

  

 

 

	
  

	
22.

	
The terms of this Letter of Intent are subject to the following:

	
  a)       

	
Ansell shall have received a technical report in compliance with Canadian Securities Administrators National Instrument 43-101, Standards of Disclosure for Mineral Projects, on the Property (the “Technical Report”), satisfactory to the TSXV and the TSXV having accepted the Technical Report.

 

	
  b)       

	
the proposed terms of this Letter of Intent and the Definitive Agreement being accepted for filing by the TSXV on or before February 1, 2011;

	
   c)       

	
Ansell shall have completed its due diligence inquiries to its satisfaction on or before October 22, 2010;

	
  d)       

	
each of the Boards of Ansell, Eagle Trail and Guinness approving the terms of this Letter of Intent and the formal Definitive Agreement  provided for herein on or before November 15, 2010; and

	
  e)       

	
applicable securities exemptions being available for the issuance of the share consideration required to be issued to Guinness.

The date on which the last of the conditions set out in this paragraph is fulfilled shall for the purpose of this agreement be defined as the “Effective Date”.

	
  

	
23.

	
Eagle Trail and Guinness shall immediately cease and cause to be terminated all existing discussions and negotiations (including, without limitation, through any advisors or other parties on its behalf), if any, with any parties conducted before the date of this Letter of Intent with respect to any Business Proposal (as defined hereafter) and shall immediately request the return or destruction of all Confidential Information provided to any third parties relating to a Business Proposal and shall use all reasonable commercial efforts to ensure that such requests are honoured.

 

	
  

	
24.

	
Neither Ansell, Eagle Trail or Guinness shall, directly or indirectly (and will ensure that none of its subsidiaries, if any, shall directly or indirectly), through any officer, director, employee, representative or agent of such company or any of its subsidiaries: (i) solicit, initiate or encourage any transaction or transactions in respect of the Property (including any part of Guinness’s interest thereunder) or the Property (any of the foregoing inquiries or proposals being referred to herein as an “Business Proposal”); or (ii) provide any Confidential Information to, participate in any discussions or negotiations relating to any such transactions with, or otherwise cooperate with or assist or participate in any effort to take such action by, any corporation, person or other entity or group prior to the termination of this Letter of Intent as provided in section 27 herein.

 

	
  

	
25.

	
The parties agree that all third party costs and expenses incurred by the parties in connection with the matters and the Definitive Agreement contemplated hereby, including without limitation, all legal, accounting, tax, and financial advisory fees, shall be borne by the party that incurs the same.

 

	
  

	
26.

	
Ansell, Eagle Trail and Guinness shall each use their reasonable best efforts to ensure that the transactions contemplated in this Letter of Intent receive all required regulatory, TSXV, third party consents, and shareholder approvals where required.

 

	
  

	
27.

	
In the event Ansell defaults in any of its obligations set out in this Letter of Intent or the Definitive Agreement as provided for herein either Eagle Trail or Guinness shall give written notice to Ansell specifying the default and Ansell

 

 

  

7

  

 

 

	
  

	
 

	
shall not loose any rights granted under this Letter of Intent or the Definitive Agreement, unless within 10 days after giving of notice of default by either Eagle Trail or Guinness, Ansell  has failed to take reasonable steps to cure the default by the appropriate performance and if Ansell fails to take reasonable steps to cure any such default, Eagle Trail and Guinness as the case may be shall be entitled to seek any remedy it may have on account of such default.  If Ansell does not make the payments provided in sections 1 (a),(b) and (c), Eagle Trail shall give written notice to Ansell specifying the default and Ansell shall not lose any rights granted under this Agreement if within 10 days after the receipt of such notice from Eagle Trail, Ansell remedies the default in full.

 

	
  

	
28.

	
The mutual obligations set forth herein shall terminate in the event that:

 

	
a)       

	
the Definitive Agreement as contemplated hereby has not been entered into on or before November 15, 2010 or such later date as may be mutually agreed to by the parties, acting reasonably;

 

	
b)       

	
Ansell is not satisfied with the results of its due diligence review on or before October 22, 2010; or

 

	
c)       

	
the conditions of either party contained herein are not satisfied or waived in writing by the party entitled to the benefit of such condition.

 

	
  

	
29.

	
The parties acknowledge that this transaction is being entered into as a result of a third party introduction giving rise to the need for payment of a finder’s fee to be calculated in accordance with a formula normally accepted by the TSX Venture Exchange for transactions of this nature and that the finder’s fee shall be paid by Ansell.

 

	
  

	
30.

	
Any notice, direction or other instrument required or permitted to be given by any party under this Letter of Intent will be in writing and will be sufficiently given if delivered personally or by courier, or transmitted by facsimile during the transmission of which no indication or failure of receipt is communicated to the sender:

 

To Ansell at:

3rd Floor, Bellevue Centre

235-15th Street

West Vancouver, BC, V7T 2X1

Attention: Jevin Werbes, President

 

To Guinness:

1312 North Monroe Street

Spokane, Washington 99201

Attention: Alastair Brown

 

To Eagle Trail:

1140 Rose Street, Regina

Saskatchewan

S4R 1Z6

Attention: Mr. Curtis Sim

  

8

  

 

	
  

	
31.

	
This Letter of Intent will be governed by and construed in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable in British Columbia and the parties hereto irrevocably hereby attorn to the jurisdiction of the courts of British Columbia and all courts competent to hear appeals therefrom;

	
  

	
32.

	
The parties hereto agree that this Letter of Intent constitutes the entire agreement and understanding between them with respect to the subject matter hereof and supersedes any prior agreement, representation or understanding with respect thereto;

 

	
  

	
33.

	
Unless expressed to the contrary herein, all monetary figures are in Canadian Dollars ($).

 

	
  

	
34.

	
Time shall be of the essence in this Letter of Intent and in the Definitive Agreement.

 

	
  

	
35.

	
Neither party may transfer or assign its rights or obligations hereunder without the prior written consent of the other party.

 

	
  

	
36.

	
This Letter of Intent may be signed in two or more counterparts, any one of which need not contain the signature of more than one party, but all such counterparts taken together will constitute one and the same agreement.

 

 

REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK

 

 

 

 

 

 

 

 

 

 

  

9

  

 

If the foregoing accurately sets forth your understanding, please so indicate by executing and returning a copy of this letter to Ansell by courier or facsimile on or before 5:00 p.m. (Vancouver time) October 12, 2010.

 

Yours very truly,

 

ANSELL CAPITAL CORP.

 

Per:    /s/ Jevin Werbes

	
  

	
JEVIN WERBES

	
  

	
President

 

ACKNOWLEDGED AND AGREED TO BY EAGLE TRAIL PROPERTIES INC.  THIS 12TH DAY OF OCTOBER, 2010.

 

EAGLE TRAIL PROPERTIES INC.

 

Per:    /s/ Curtis Sim

	
  

	
CURTIS SIM

ACKNOWLEDGED AND AGREED TO BY GUINNESS EXPLORATION, INC. THIS 12TH DAY OF OCTOBER, 2010.

 

GUINNESS EXPLORATION, INC.

 

Per:   /s/ Alastair Brown

	
  

	
ALASTAIR BROWN

 

 

 

 

 

  

10

  

 

SCHEDULE “A”

SCHEDULE OF CLAIMS

Schedule A - Page 1of 4

	
No.

	
 

Claim

	
Registered Claim

Owner

	
Grant Number

	
Expiry Date

	
Area (Ha)

	
Comments

	
1

	
ROSE

	
Nantawa Resources Inc.

	
04241

	
09/10/2019

	
20.42

	
Lease

	
2

	
GOLDEN EAGLE

	
Nantawa Resources Inc.

	
04278

	
09/10/2019

	
20.96

	
Lease

	
3

	
WAR EAGLE

	
Nantawa Resources Inc.

	
04279

	
09/10/2019

	
20.77

	
Lease

	
4

	
SHAMROCK

	
Nantawa Resources Inc.

	
04354

	
09/10/2019

	
20.73

	
Lease

	
5

	
SPOT

	
Nantawa Resources Inc.

	
04361

	
09/10/2019

	
19.92

	
Lease

	
6

	
ARLEP

	
Nantawa Resources Inc.

	
04368

	
09/10/2019

	
14.48

	
Lease

	
7

	
PHYLLIS

	
Nantawa Resources Inc.

	
04369

	
09/10/2019

	
20.26

	
Lease

	
8

	
RUB

	
Nantawa Resources Inc.

	
55633

	
09/10/2019

	
1.84

	
Lease

	
9

	
PUB

	
Nantawa Resources Inc.

	
55663

	
09/10/2019

	
1.93

	
Lease

	
10

	
SUN DOG

	
Nantawa Resources Inc.

	
55665

	
09/10/2019

	
3.20

	
Lease

	
11

	
CUB

	
Nantawa Resources Inc.

	
55666

	
09/10/2019

	
1.29

	
Lease

	
12

	
JAM

	
Nantawa Resources Inc.

	
55890

	
09/10/2019

	
11.64

	
Lease

	
13

	
PAM

	
Nantawa Resources Inc.

	
55892

	
09/10/2019

	
2.64

	
Lease

	
14

	
DOME 1

	
Nantawa Resources Inc.

	
73537

	
06/02/2014

	
15.10

	
-

	
15

	
DOME 2

	
Nantawa Resources Inc.

	
73538

	
06/02/2014

	
15.51

	
-

	
16

	
DOME 3

	
Nantawa Resources Inc.

	
73539

	
06/02/2014

	
17.29

	
-

	
17

	
DOME 4

	
Nantawa Resources Inc.

	
73540

	
06/02/2014

	
17.98

	
-

	
18

	
DOME 6

	
Nantawa Resources Inc.

	
73542

	
06/02/2014

	
17.32

	
-

	
19

	
DOME 7

	
Nantawa Resources Inc.

	
73543

	
06/02/2014

	
25.34

	
-

	
20

	
DOME 8

	
Nantawa Resources Inc.

	
73694

	
06/02/2014

	
12.47

	
-

	
21

	
DOME 14

	
Nantawa Resources Inc.

	
73700

	
06/02/2014

	
21.07

	
-

	
22

	
DOME 16

	
Nantawa Resources Inc.

	
73702

	
06/02/2014

	
20.61

	
-

	
23

	
DOME 17

	
Nantawa Resources Inc.

	
73703

	
06/02/2014

	
18.41

	
-

	
24

	
DOME 18

	
Nantawa Resources Inc.

	
73704

	
06/02/2014

	
18.56

	
-

	
25

	
DOME 19

	
Nantawa Resources Inc.

	
73705

	
06/02/2014

	
16.73

	
-

	
26

	
DOME 20

	
Nantawa Resources Inc.

	
73706

	
06/02/2014

	
13.42

	
-

	
27

	
JOANNE 1

	
Nantawa Resources Inc.

	
74283

	
06/02/2014

	
19.79

	
-

	
28

	
JOANNE 2

	
Nantawa Resources Inc.

	
74284

	
06/02/2014

	
19.51

	
-

	
29

	
JOANNE 3

	
Nantawa Resources Inc.

	
74285

	
06/02/2014

	
20.36

	
-

	
30

	
JOANNE 4

	
Nantawa Resources Inc.

	
74286

	
06/02/2014

	
14.78

	
-

	
31

	
JOANNE 5

	
Nantawa Resources Inc.

	
74287

	
06/02/2014

	
19.83

	
-

	
32

	
JOANNE 6

	
Nantawa Resources Inc.

	
74288

	
06/02/2014

	
19.69

	
-

	
33

	
DOME 25

	
Nantawa Resources Inc.

	
77746

	
06/02/2014

	
15.19

	
-

	
34

	
DOME 26

	
Nantawa Resources Inc.

	
77747

	
06/02/2014

	
22.54

	
-

	
35

	
DOME 27

	
Nantawa Resources Inc.

	
77748

	
06/02/2014

	
20.32

	
-

	
36

	
DOME 28

	
Nantawa Resources Inc.

	
77749

	
06/02/2014

	
21.74

	
-

	
37

	
DOME 33

	
Nantawa Resources Inc.

	
77754

	
06/02/2014

	
25.50

	
-

	
38

	
DOME 34

	
Nantawa Resources Inc.

	
77755

	
06/02/2014

	
23.29

	
-

	
39

	
DOME 35

	
Nantawa Resources Inc.

	
77756

	
06/02/2014

	
22.39

	
-

	
40

	
DOME 36

	
Nantawa Resources Inc.

	
77757

	
06/02/2014

	
23.97

	
-

 

 

  

11

  

 

Schedule A - Page 2 of 4

	
No.

	
 

Claim

	
Registered Claim

Owner

	
Grant Number

	
Expiry Date

	
Area (Ha)

	
Comments

	
41

	
DOME 37

	
Nantawa Resources Inc.

	
77758

	
06/02/2014

	
14.23

	
-

	
42

	
DOME 38

	
Nantawa Resources Inc.

	
77759

	
06/02/2014

	
18.48

	
-

	
43

	
DOME 39

	
Nantawa Resources Inc.

	
77760

	
06/02/2014

	
14.95

	
-

	
44

	
DOME 40

	
Nantawa Resources Inc.

	
77761

	
06/02/2014

	
20.51

	
-

	
45

	
DOME 41

	
Nantawa Resources Inc.

	
77762

	
06/02/2014

	
20.76

	
-

	
46

	
DOME 42

	
Nantawa Resources Inc.

	
77763

	
06/02/2014

	
19.93

	
-

	
47

	
DOME 43

	
Nantawa Resources Inc.

	
77764

	
06/02/2014

	
20.47

	
-

	
48

	
DOME 49

	
Nantawa Resources Inc.

	
77770

	
06/02/2014

	
8.18

	
-

	
49

	
DOME 50

	
Nantawa Resources Inc.

	
77771

	
06/02/2014

	
18.83

	
-

	
50

	
DOME 51

	
Nantawa Resources Inc.

	
77772

	
06/02/2014

	
19.05

	
-

	
51

	
DOME 52

	
Nantawa Resources Inc.

	
77773

	
06/02/2014

	
21.85

	
-

	
52

	
DOME 53

	
Nantawa Resources Inc.

	
77774

	
06/02/2014

	
22.80

	
-

	
53

	
DOME 54

	
Nantawa Resources Inc.

	
77775

	
06/02/2014

	
14.69

	
-

	
54

	
DOME 55

	
Nantawa Resources Inc.

	
77776

	
06/02/2014

	
13.09

	
-

	
55

	
DOME 56

	
Nantawa Resources Inc.

	
77777

	
06/02/2014

	
13.35

	
-

	
56

	
DOME 57

	
Nantawa Resources Inc.

	
77778

	
06/02/2014

	
20.47

	
-

	
57

	
DOME 58

	
Nantawa Resources Inc.

	
77779

	
06/02/2014

	
19.41

	
-

	
58

	
DOME 60

	
Nantawa Resources Inc.

	
77781

	
06/02/2014

	
20.06

	
-

	
59

	
DOME 61

	
Nantawa Resources Inc.

	
77782

	
06/02/2014

	
18.91

	
-

	
60

	
DOME 63

	
Nantawa Resources Inc.

	
77784

	
06/02/2014

	
22.51

	
-

	
61

	
DOME 64

	
Nantawa Resources Inc.

	
77785

	
06/02/2014

	
22.88

	
-

	
62

	
DOME 65

	
Nantawa Resources Inc.

	
77786

	
06/02/2014

	
20.66

	
-

	
63

	
DOME 66

	
Nantawa Resources Inc.

	
77787

	
06/02/2014

	
21.18

	
-

	
64

	
DOME 78

	
Nantawa Resources Inc.

	
81842

	
06/02/2014

	
25.41

	
-

	
65

	
DOME 79

	
Nantawa Resources Inc.

	
81843

	
06/02/2014

	
24.10

	
-

	
66

	
DOME 80

	
Nantawa Resources Inc.

	
81844

	
06/02/2014

	
24.20

	
-

	
67

	
DOME 81

	
Nantawa Resources Inc.

	
81845

	
06/02/2014

	
22.52

	
-

	
68

	
DOME 82

	
Nantawa Resources Inc.

	
81846

	
06/02/2014

	
23.26

	
-

	
69

	
DOME 83

	
Nantawa Resources Inc.

	
81847

	
06/02/2014

	
18.72

	
-

	
70

	
DOME 84

	
Nantawa Resources Inc.

	
81848

	
06/02/2014

	
19.37

	
-

	
71

	
DOME 86

	
Nantawa Resources Inc.

	
81850

	
06/02/2014

	
20.76

	
-

	
72

	
HIW 9

	
Nantawa Resources Inc.

	
YA23835

	
06/02/2014

	
19.44

	
-

	
73

	
HIW 10

	
Nantawa Resources Inc.

	
YA23836

	
06/02/2014

	
20.83

	
Fractions

	
74

	
HIW 11

	
Nantawa Resources Inc.

	
YA23837

	
06/02/2014

	
21.55

	
Fractions

	
75

	
HIW 12

	
Nantawa Resources Inc.

	
YA23838

	
06/02/2014

	
19.93

	
Fractions

	
76

	
HIW 13

	
Nantawa Resources Inc.

	
YA23839

	
06/02/2014

	
20.72

	
-

	
77

	
HIW 14

	
Nantawa Resources Inc.

	
YA23840

	
06/02/2014

	
19.55

	
-

	
78

	
HIW 15

	
Nantawa Resources Inc.

	
YA23841

	
06/02/2014

	
20.15

	
-

	
79

	
HIW 16

	
Nantawa Resources Inc.

	
YA23842

	
06/02/2014

	
19.86

	
-

	
80

	
HIW 17

	
Nantawa Resources Inc.

	
YA23843

	
06/02/2014

	
19.92

	
-

	
81

	
HIW 1

	
Nantawa Resources Inc.

	
YA24813

	
06/02/2014

	
4.74

	
Fractions

	
82

	
HIW 2

	
Nantawa Resources Inc.

	
YA24814

	
06/02/2014

	
5.15

	
Fractions

 

 

  

12

  

 

Schedule A - Page 3 of 4

	
No.

	
 

Claim

	
Registered Claim

Owner

	
Grant Number

	
Expiry Date

	
Area (Ha)

	
Comments

	
83

	
HIW 7

	
Nantawa Resources Inc.

	
YA24819

	
06/02/2014

	
3.01

	
Fractions

	
84

	
DD 1

	
Nantawa Resources Inc.

	
YA59596

	
06/02/2014

	
20.62

	
-

	
85

	
DD 2

	
Nantawa Resources Inc.

	
YA59597

	
06/02/2014

	
22.35

	
-

	
86

	
DD 15

	
Nantawa Resources Inc.

	
YA59610

	
06/02/2014

	
19.20

	
-

	
87

	
DD 16

	
Nantawa Resources Inc.

	
YA59611

	
06/02/2014

	
19.21

	
-

	
88

	
DD 17

	
Nantawa Resources Inc.

	
YA59612

	
06/02/2014

	
19.37

	
-

	
89

	
DD 18

	
Nantawa Resources Inc.

	
YA59613

	
06/02/2014

	
19.85

	
-

	
90

	
DD 19

	
Nantawa Resources Inc.

	
YA59614

	
06/02/2014

	
20.17

	
-

	
91

	
DD 20

	
Nantawa Resources Inc.

	
YA59615

	
06/02/2014

	
19.90

	
-

	
92

	
DD 21

	
Nantawa Resources Inc.

	
YA59616

	
06/02/2014

	
19.64

	
-

	
93

	
DD 22

	
Nantawa Resources Inc.

	
YA59617

	
06/02/2014

	
19.17

	
-

	
94

	
DD 23

	
Nantawa Resources Inc.

	
YA59618

	
06/02/2014

	
18.69

	
-

	
95

	
DD 24

	
Nantawa Resources Inc.

	
YA59619

	
06/02/2014

	
18.30

	
-

	
96

	
DD 25

	
Nantawa Resources Inc.

	
YA59620

	
06/02/2014

	
18.18

	
-

	
97

	
DD 26

	
Nantawa Resources Inc.

	
YA59621

	
06/02/2014

	
17.65

	
-

	
98

	
DD 27

	
Nantawa Resources Inc.

	
YA59622

	
06/02/2014

	
19.49

	
-

	
99

	
DD 28

	
Nantawa Resources Inc.

	
YA59623

	
06/02/2014

	
18.71

	
-

	
100

	
TBR 1

	
Nantawa Resources Inc.

	
YA86690

	
06/02/2014

	
8.92

	
-

	
101

	
TBR 2

	
Nantawa Resources Inc.

	
YA86691

	
06/02/2014

	
20.16

	
-

	
102

	
TBR 3

	
Nantawa Resources Inc.

	
YA86692

	
06/02/2014

	
20.03

	
-

	
103

	
TBR 4

	
Nantawa Resources Inc.

	
YA86693

	
06/02/2014

	
20.84

	
-

	
104

	
TBR 5

	
Nantawa Resources Inc.

	
YA86694

	
06/02/2014

	
18.34

	
-

	
105

	
TBR 6

	
Nantawa Resources Inc.

	
YA86695

	
06/02/2014

	
20.92

	
-

	
106

	
TBR 7

	
Nantawa Resources Inc.

	
YA86696

	
06/02/2014

	
15.96

	
-

	
107

	
TBR 8

	
Nantawa Resources Inc.

	
YA86697

	
06/02/2014

	
21.79

	
-

	
108

	
ONT 38

	
Nantawa Resources Inc.

	
YA87204

	
06/02/2014

	
20.26

	
-

	
109

	
ONT 40

	
Nantawa Resources Inc.

	
YA87206

	
06/02/2014

	
18.34

	
-

	
110

	
ONT 42

	
Nantawa Resources Inc.

	
YA87208

	
06/02/2014

	
5.73

	
-

	
111

	
EEK 1

	
Nantawa Resources Inc.

	
YA87210

	
06/02/2014

	
21.07

	
-

	
112

	
EEK 2

	
Nantawa Resources Inc.

	
YA87211

	
06/02/2014

	
20.08

	
-

	
113

	
EEK 3

	
Nantawa Resources Inc.

	
YA87212

	
06/02/2014

	
20.70

	
-

	
114

	
EEK 4

	
Nantawa Resources Inc.

	
YA87213

	
06/02/2014

	
20.68

	
-

	
115

	
EEK 5

	
Nantawa Resources Inc.

	
YA87214

	
06/02/2014

	
20.80

	
-

	
116

	
EEK 6

	
Nantawa Resources Inc.

	
YA87215

	
06/02/2014

	
19.58

	
-

	
117

	
EEK 7

	
Nantawa Resources Inc.

	
YA87216

	
06/02/2014

	
19.97

	
-

	
118

	
EEK 8

	
Nantawa Resources Inc.

	
YA87217

	
06/02/2014

	
21.91

	
-

	
119

	
EEK 9

	
Nantawa Resources Inc.

	
YA87218

	
06/02/2014

	
22.64

	
-

	
120

	
EEK 14

	
Nantawa Resources Inc.

	
YA87223

	
06/02/2014

	
21.36

	
-

	
121

	
EEK 15

	
Nantawa Resources Inc.

	
YA87224

	
06/02/2014

	
21.22

	
-

	
122

	
EEK 16

	
Nantawa Resources Inc.

	
YA87225

	
06/02/2014

	
21.76

	
-

	
123

	
EEK 17

	
Nantawa Resources Inc.

	
YA87226

	
06/02/2014

	
20.01

	
-

	
124

	
EEK 18

	
Nantawa Resources Inc.

	
YA87227

	
06/02/2014

	
20.74

	
-

 

  

13

  

 

Schedule A - Page 4 of 4

	
No.

	
 

Claim

	
Registered Claim

Owner

	
Grant Number

	
Expiry Date

	
Area (Ha)

	
Comments

	
125

	
ONT 44

	
Nantawa Resources Inc.

	
YA92655

	
06/02/2014

	
16.80

	
-

	
126

	
ONT 45

	
Nantawa Resources Inc.

	
YA92656

	
06/02/2014

	
12.91

	
-

	
127

	
ONT 46

	
Nantawa Resources Inc.

	
YA92657

	
06/02/2014

	
18.48

	
-

	
128

	
ONT 47

	
Nantawa Resources Inc.

	
YA92658

	
06/02/2014

	
14.41

	
-

	  	
Total

	  	  	  	
2,336,14

	  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

14ex10_1.htm

Exhibit 10.1

 

_________________________________

CHANGE IN CONTROL AGREEMENT

BETWEEN

ANDRE J. FERNANDEZ

AND

JOURNAL COMMUNICATIONS, INC.

_________________________________________________________________

  

 

  

CHANGE IN CONTROL AGREEMENT

	
1.

	
Certain Definitions

	
1

	
2.

	
Change in Control

	
2

	
3.

	
Employment Period

	
3

	
4.

	
Terms of Employment

	
3

	  	  	
(a)

	
Position and Duties

	
3

	  	  	
(b)

	
Compensation

	
4

	
5.

	
Termination of Employment

	
6

	  	  	
(a)

	
Death or Disability

	
6

	  	  	
(b)

	
Cause

	
6

	  	  	
(c)

	
Good Reason

	
7

	
6.

	
Obligations of the Company upon Termination

	
8

	  	  	
(a)

	
Termination by Executive for Good Reason; Termination by the Company Other Than for Cause or Disability

	
8

	  	  	
(b)

	
Death or Disability

	
9

	  	  	
(c)

	
Cause; Other than Good Reason

	
10

	  	  	
(d)

	
Expiration of Employment Period

	
10

	
7.

	
Non-exclusivity of Rights

	
10

	
8.

	
Full Settlement; No Mitigation

	
10

	
9.

	
Costs of Enforcement

	
10

	
10.

	
Limitation of Benefits

	
11

	
11.

	
Restrictions on Conduct of Executive

	
12

	
12.

	
Arbitration

	
14

	
13.

	
Successors

	
16

	
14.

	
Miscellaneous

	
16

	  	  	
(a)

	
Governing Law

	
16

	  	  	
(b)

	
Captions

	
16

	  	  	
(c)

	
Amendments

	
16

	  	  	
(d)

	
Notices

	
16

	  	  	
(e)

	
Severability

	
17

	  	  	
(f)

	
Withholding

	
17

	  	  	
(g)

	
Waivers

	
17

	  	  	
(h)

	
Status Before and After Effective Date

	
17

	
15.

	
Code Section 409A

	17

  

- i -

  

CHANGE IN CONTROL AGREEMENT

AGREEMENT by and between Journal Communications, Inc., a Wisconsin corporation (the “Company”) and Andre J. Fernandez (“Executive”), dated as of the 9th day of December, 2008, as amended and restated as of October 11, 2010.

The Board of Directors of the Company (the “Board”) has determined that it is in the best interests of the Company and its shareholders to assure that the Company will have the continued dedication of Executive, notwithstanding the possibility, threat or occurrence of a Change in Control (as defined below) of the Company.  The Board believes it is imperative to diminish the inevitable distraction of Executive by virtue of the personal uncertainties and risks created by a pending or threatened Change in Control and to encourage Executive’s full attention and dedication to the Company currently and in the event of any threatened or pending Change in Control, and to provide Executive with compensation and benefits arrangements upon a Change in Control which ensure that the compensation and benefits expectations of Executive will be satisfied and which are competitive with those of other corporations.  Therefore, in order to accomplish these objectives, the Board has caused the Company to enter into this Agreement.

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1.              Certain Definitions.

(a)            The “Effective Date” shall mean the first date during the Change in Control Period (as defined in Section l(b)) on which a Change in Control (as defined in Section 2) occurs.  Anything in this Agreement to the contrary notwithstanding, if Executive’s employment with the Company is terminated, and if it is reasonably demonstrated by Executive that such termination of employment (i) was at the request of a third party who has taken steps reasonably calculated to effect a Change in Control or (ii) otherwise arose in connection with or anticipation of a Change in Control, then for all purposes of this Agreement the “Effective Date” shall mean the date immediately prior to the date of such termination of employment.

(b)            The “Change in Control Period” shall mean the period commencing on the date hereof and ending on the second anniversary of the date hereof; provided, however, that commencing on the date one year after the date hereof, and on each annual anniversary of such date (such date and each annual anniversary thereof shall be hereinafter referred to as the “Renewal Date”), unless previously terminated, the Change in Control Period shall be automatically extended so as to terminate two years from such Renewal Date, unless at least 60 days prior to the Renewal Date the Company shall give notice to Executive that the Change in Control Period shall not be so extended.

  

 

  

2.              Change in Control  For the purposes of this Agreement, a “Change in Control” shall mean the occurrence of any of the following events:

(a)            individuals who, on the date of this Agreement, constitute the Board of Directors of the Company (the “Incumbent Directors”) cease for any reason to constitute at least a majority of such Board, provided that any person becoming a director after the date of this Agreement and whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then on the Board shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to the election or removal of directors (“Election Contest”) or other actual or threatened solicitation of proxies or consents by or on behalf of any “Person” (such term for purposes of this definition being as defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the “1934 Act”) and as used in Section 13(d)(3) and 14(d)(2) of the 1934 Act) other than the Board (“Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent Director; or

(b)            any Person becomes a “Beneficial Owner” (such term for purposes of this definition being as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of directors (the “Company Voting Securities”); provided, however, that for purposes of this subsection (b), the following acquisitions shall not constitute a Change in Control: (v) an acquisition directly from the Company, (w) an acquisition by the Company or a subsidiary of the Company (a “Subsidiary”), (x) an acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, (y) an acquisition by a Person who as of December 31, 2006 was a Beneficial Owner, directly or indirectly, of 15% or more of the Company Voting Securities, or (z) an acquisition pursuant to a Non-Qualifying Transaction (as defined in subsection (d) below); or

(c)            any Person who as of December 31, 2006 was a Beneficial Owner, directly or indirectly, of 15% or more of the Company Voting Securities becomes a Beneficial Owner, directly or indirectly, of 40% or more of the Company Voting Securities; provided, however, that for purposes of this subsection (c), an acquisition directly from the Company shall not constitute a Change in Control; or

(d)            the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or a Subsidiary (a “Reorganization”), or the sale or other disposition of all or substantially all of the Company’s assets (a “Sale”) or the acquisition of assets or stock of another entity (an “Acquisition”), unless immediately following such Reorganization, Sale or Acquisition: (A) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the outstanding shares of common stock of the Company (“Company Common Stock”) and outstanding Company Voting Securities immediately prior to such Reorganization, Sale or Acquisition beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Reorganization, Sale or Acquisition (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets or stock either directly or through one or more subsidiaries, the “Surviving Entity”) in substantially the same proportions as their ownership, immediately prior to such Reorganization, Sale or Acquisition, of the outstanding Company Common Stock and the outstanding Company Voting Securities, as the case may be, and (B) no Person (other than (w) any Person who as of December 31, 2006 is a Beneficial Owner, directly or indirectly, of 15% or more of the Company Voting Securities, (x) the Company or any Subsidiary of the Company, (y) the Surviving Entity or its ultimate parent, or (z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing) is the beneficial owner, directly or indirectly, of 20% or more of the total common stock or 20% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Surviving Entity, and (C) at least a majority of the members of the board of directors of the Surviving Entity were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); or

  

- 2 -

  

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

3.              Employment Period.  The Company hereby agrees to continue Executive in its employ, and Executive hereby agrees to remain in the employ of the Company subject to the terms and conditions of this Agreement, for the period commencing on the Effective Date and ending on the second anniversary of such date (the “Employment Period”).

4.              Terms of Employment.

(a)            Position and Duties.

(i)  During the Employment Period, (A) Executive’s position (including status, offices, titles and reporting requirements), authority, duties and responsibilities shall be at least commensurate in all material respects with the most significant of those held, exercised and assigned at any time during the 120-day period immediately preceding the Effective Date and (B) Executive’s services shall be performed at the location where Executive was employed immediately preceding the Effective Date or any office or location less than 35 miles from such location.

  

- 3 -

  

(ii)  During the Employment Period, and excluding any periods of vacation and sick leave to which Executive is entitled, Executive shall devote substantially all of his business time, attention and effort to the business and affairs of the Company and its affiliates and, to the extent necessary to discharge the responsibilities assigned to Executive under this Agreement, use Executive’s reasonable best efforts to carry out such responsibilities faithfully and efficiently. It shall not be considered a violation of the foregoing for Executive to serve on corporate, industry, civic or charitable boards or committees, so long as such activities do not significantly interfere with the performance of Executive’s responsibilities as an employee of the Company and its affiliates in accordance with this Agreement.  It is expressly understood and agreed that to the extent that any such activities have been conducted by Executive prior to the Effective Date, the continued conduct of such activities (or the conduct of activities similar in nature and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to interfere with the performance of Executive’s responsibilities to the Company.

(b)            Compensation.

(i)             Base Salary.  During the Employment Period, Executive shall receive an annual base salary (“Annual Base Salary”) at a rate at least equal to the rate of base salary in effect on the date of this Agreement or, if greater, on the Effective Date, paid or payable (including any base salary which has been earned but deferred) to Executive by the Company and its affiliated companies.  The Annual Base Salary shall be payable in accordance with the Company’s regular payroll practice for its senior executives, as in effect from time to time.  During the Employment Period, the Annual Base Salary shall be reviewed for possible increase no more than 12 months after the last salary increase awarded to Executive prior to the Effective Date and thereafter at least annually.  Any increase in the Annual Base Salary shall not limit or reduce any other obligation of the Company under this Agreement.  The Annual Base Salary shall not be reduced after any such increase, and the term “Annual Base Salary” shall thereafter refer to the Annual Base Salary as so increased. As used in this Agreement, the term “affiliated companies” shall include any company controlled by, controlling or under common control with the Company.

(ii)            Annual Bonus.  In addition to Annual Base Salary, Executive shall be provided, for each fiscal year ending during the Employment Period, an annual bonus opportunity at least equal to Executive’s highest bonus opportunity under the Company’s Annual Management Incentive Plan, or any comparable bonus opportunity under any predecessor or successor plans, for the last full fiscal year prior to the Effective Date (annualized in the event that Executive was not employed by the Company for the whole of such fiscal year).

(iii)           Incentive, Savings and Retirement Plans.  Without limiting the foregoing, during the Employment Period, Executive shall be entitled to participate in all applicable incentive, savings and retirement plans, practices, policies and programs applicable generally to other senior executives of the Company and its affiliated companies (“Peer Executives”), but in no event shall such plans, practices, policies and programs provide Executive with incentive opportunities (measured with respect to both regular and special incentive opportunities, to the extent, if any, that such distinction is applicable), savings opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate, than the most favorable of those provided by the Company and its affiliated companies for Executive under such plans, practices, policies and programs as in effect at any time during the 120-day period immediately preceding the Effective Date or if more favorable to Executive, those provided generally at any time after the Effective Date to Peer Executives.

  

- 4 -

  

(iv)           Welfare Benefit Plans.  During the Employment Period, Executive and/or Executive’s eligible dependents, as the case may be, shall be eligible for participation in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided by the Company and its affiliated companies (including, without limitation, medical, prescription, dental, disability, employee life, group life, accidental death and travel accident insurance plans and programs) to the extent applicable generally to Peer Executives, but in no event shall such plans, practices, policies and programs provide Executive with benefits which are less favorable, in the aggregate, than the most favorable of such plans, practices, policies and programs in effect for Executive at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to Executive, those provided generally at any time after the Effective Date to Peer Executives.

(v)            Expenses.  During the Employment Period, Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by Executive in accordance with the most favorable policies, practices and procedures of the Company and its affiliated companies in effect for Executive at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to Executive, as in effect generally at any time thereafter with respect to Peer Executives.

(vi)           Fringe Benefits and Perquisites.  During the Employment Period, Executive shall be entitled to fringe benefits and perquisites in accordance with the most favorable plans, practices, programs and policies of the Company and its affiliated companies in effect for Executive at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to Executive, as in effect generally at any time thereafter with respect to Peer Executives.

  

- 5 -

  

(vii)          Vacation.  During the Employment Period, Executive shall be entitled to paid vacation in accordance with the most favorable plans, policies, programs and practices of the Company and its affiliated companies as in effect for Executive at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to Executive, as in effect generally at any time thereafter with respect to Peer Executives.

5.              Termination of Employment.

(a)            Death or Disability.  Executive’s employment shall terminate automatically upon Executive’s death during the Employment Period.  If the Company determines in good faith that the Disability of Executive has occurred during the Employment Period (pursuant to the definition of Disability set forth below), it may give to Executive written notice of its intention to terminate Executive’s employment.  In such event, Executive’s employment with the Company shall terminate effective on the 30th day after receipt of such written notice by Executive (the “Disability Effective Date”), provided that, within the 30 days after such receipt, Executive shall not have returned to full-time performance of Executive’s duties.  For purposes of this Agreement, “Disability” shall mean the inability of Executive, as determined by the Board, to perform the essential functions of his regular duties and responsibilities, with or without reasonable accommodation, due to a medically determinable physical or mental illness which has lasted (or can reasonably be expected to last) for a period of six consecutive months.  At the request of Executive or his personal representative, the Board’s determination that the Disability of Executive has occurred shall be certified by two physicians mutually agreed upon by Executive, or his personal representative, and the Company.  If Executive requests such independent certification of the Board’s determination and either (i) the Company does not seek such independent certification, or (ii) the two physicians do not certify the Board’s determination of Executive’s Disability, then, Executive’s termination shall be deemed a termination by the Company without Cause and not a termination by reason of his Disability.

(b)            Cause.  The Company may terminate Executive’s employment during the Employment Period for Cause or without Cause.  For purposes of this Agreement, a termination shall be considered to be for “Cause” if it occurs in conjunction with a determination by the Board that Executive has committed or engaged in either (i) any act that constitutes, on the part of Executive, fraud, dishonesty, breach of fiduciary duty, misappropriation, embezzlement or gross misfeasance of duty; (ii) willful disregard of published Company policies and procedures or codes of ethics; or (iii) conduct by Executive in his office with the Company that is grossly inappropriate and demonstrably likely to lead to material injury to the Company, as determined by the Board acting reasonably and in good faith; provided, that in the case of (ii) or (iii) above, such conduct shall not constitute “Cause” unless the Board shall have delivered to Executive notice setting forth with specificity (A) the conduct deemed to qualify as “Cause”, (B) reasonable action that would remedy such objection, and (C) a reasonable time (not less than 30 days) within which Executive may take such remedial action, and Executive shall not have taken such specified remedial action within the specified time.

  

- 6 -

  

(c)            Good Reason.  Executive’s employment may be terminated by Executive for Good Reason or without Good Reason.  For purposes of this Agreement, “Good Reason” shall mean:

(i)             the assignment to Executive of any duties inconsistent in any material respect with Executive’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by Section 4(a) of this Agreement, or any other action by the Company that results in a material diminution in Executive’s position, authority, duties or responsibilities, other than an isolated, insubstantial and inadvertent action that is not taken in bad faith and is remedied by the Company promptly after receipt of notice thereof from Executive;

(ii)            any material breach by the Company of Section 4(b)(i) or (ii) of this Agreement, other than an isolated, insubstantial and inadvertent failure that is not taken in bad faith and is remedied by the Company promptly after receipt of notice thereof from Executive;

(iii)           any failure by the Company to comply with and satisfy Section 13(c) of this Agreement; or

(iv)           any other material breach of this Agreement by the Company that either is not taken in good faith or is not remedied by the Company promptly after receipt of notice thereof from Executive.

A termination of employment by Executive for Good Reason shall be effectuated by giving the Company written notice (“Notice of Termination for Good Reason”) of the termination within 90 days after the event constituting Good Reason, setting forth in reasonable detail the specific conduct of the Company that constitutes Good Reason and the specific provisions of this Agreement on which Executive relies.  The Company shall have 30 days from the receipt of such notice within which to correct, rescind or otherwise substantially reverse the occurrence supporting termination for Good Reason as identified by Executive.  If such event has not been cured within such 30-day period, the termination of employment by Executive for Good Reason shall be effective as of the expiration of such 30-day period.  If the event of Good Reason is cured within such 30-day period, the Notice of Termination for Good Reason shall have no effect.  Any dispute as to whether a claimed event of Good Reason has been cured within the 30-day period shall be submitted to mediation by a third party selected by Executive and the Board.  If no mediated resolution is reach within 30-days after the end of the original 30-day cure period, the Notice of Termination for Good Reason shall have no effect.  The parties intend, believe and take the position that a resignation by the Executive for Good Reason as defined above effectively constitutes an involuntary separation from service within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and Treas. Reg §1.409A-1(n)(2).

  

- 7 -

  

6.              Obligations of the Company upon Termination.

(a) Termination by Executive for Good Reason; Termination by the Company Other Than for Cause or Disability.  If, during the Employment Period, the Company shall terminate Executive’s employment other than for Cause or Disability, or Executive shall terminate employment for Good Reason:

(i)  the Company shall pay to Executive in a lump sum in cash within 30 days after the date of termination (or any later date required by Section 15) the aggregate of the following amounts:

A.            Executive’s Annual Base Salary through the date of termination to the extent not theretofore paid (the “Accrued Obligations”); and

B.             a severance payment equal to 200% times the sum of (i) Executive’s Annual Base Salary as then in effect, plus (ii) Executive’s target annual incentive bonus for the year in which the date of termination occurs; and

(ii)  the Company shall pay to Executive a pro-rata bonus for the annual incentive plan performance period (“Plan Year”) in which the date of termination occurs (the “Prorata Final Year Bonus”), the calculation and payment of which shall depend upon when the date of termination occurs, as follows:

A.            if the date of termination occurs during the same Plan Year in which the Change in Control occurs, the Prorata Final Year Bonus shall equal the product of (x) Executive’s target annual bonus for the year of termination, and (y) a fraction, the numerator of which is the number of days in the Plan Year through the date of termination, and the denominator of which is 365; and such Prorata Final Year Bonus shall be paid a single lump sum cash payment within 30 days after the date of termination (or any later date that may be required pursuant to Section 15 hereof);

B.             if the date of termination occurs after the end of the Plan Year in which the Change in Control occurs, the Prorata Final Year Bonus shall equal product of (x) the amount Executive would have earned, if any, under the annual incentive bonus plan for the year of termination based on actual financial performance (as if the sole performance metrics were the financial performance metrics) for such Plan Year, and (y) a fraction, the numerator of which is the number of days in the Plan Year through the date of termination, and the denominator of which is 365; and such Prorata Final Year Bonus shall be paid a single lump sum cash payment at the time such bonus awards are normally paid for such Plan Year (or any later date that may be required pursuant to Section 15 hereof); and

(iii)  the Company shall continue to provide, for twenty-four (24) months after Executive’s date of termination (the “Welfare Benefits Continuation Period”), or such longer period as may be provided by the terms of the appropriate plan, program, practice or policy, any group health benefits to which Executive and/or Executive’s eligible dependents would otherwise be entitled to continue under COBRA, or benefits substantially equivalent to those group health benefits which would have been provided to them in accordance with the Welfare Plans described in Section 4(b)(iv) of this Agreement if Executive’s employment had not been terminated, provided, however, that (A) if Executive becomes employed with another employer (including self-employment) and receives group health benefits under another employer provided plan, the Company’s obligation to provide group health benefits described herein shall cease, except as otherwise provided by law; (B) the Welfare Benefits Continuation Period shall run concurrently with any period for which Executive is eligible to elect health coverage under COBRA; (C) for all months after the initial 18 months of the Welfare Benefits Continuation Period, the applicable monthly COBRA premium for such group health benefits, determined in accordance with Code Section 4980B and the regulations thereunder, shall be reimbursed to Executive by the Company as taxable compensation by including such amount in Executive’s income in accordance with applicable rules and regulations; (D) during the Welfare Benefits Continuation Period, the benefits provided in any one calendar year shall not affect the amount of benefits to be provided in any other calendar year; (E) the reimbursement of an eligible taxable expense shall be made on or before December 31 of the year following the year in which the expense was incurred; and (F) Executive’s rights pursuant to this Section 6(a)(iii) shall not be subject to liquidation or exchange for another benefit; and

  

- 8 -

  

(iv)  all of Executive’s equity or incentive awards outstanding on the date of termination shall be treated as follows: (A) all time-based restrictions on awards of restricted stock or unit awards shall lapse as of the date of termination, (B) each such option shall be fully vested and exercisable as of the date of termination and shall remain in effect and exercisable through the end of its original term, without regard to the termination of Executive’s employment; and (C) any performance shares or units shall be governed by the terms and conditions of the Company’s long-term incentive plan under which they were awarded; and

(v)  to the extent not theretofore paid or provided, the Company shall timely pay or provide to Executive any other amounts or benefits required to be paid or provided or which Executive is eligible to receive under any plan, program, policy or practice or contract or agreement of the Company and its affiliated companies (such other amounts and benefits shall be hereinafter referred to as the “Other Benefits”).

(b)            Death or Disability.  If Executive’s employment is terminated by reason of Executive’s death or Disability during the Employment Period, this Agreement shall terminate without further obligations to Executive or Executive’s legal representatives under this Agreement, other than for payment of Accrued Obligations and the Prorata Final Year Bonus (calculated as described in Section 6(a)(ii)(A), regardless of when the date of termination occurs) and the timely payment or provision of Other Benefits.  Accrued Obligations and the Prorata Final Year Bonus shall be paid to Executive or Executive’s estate or beneficiary, as applicable, in a lump sum in cash within 30 days of the date of termination (or any later date required by Section 15).  With respect to the provision of Other Benefits, the term Other Benefits as used in this Section 6(b) shall include without limitation, and Executive or Executive’s estate and/or beneficiaries shall be entitled to receive, benefits under such plans, programs, practices and policies relating to death or disability benefits, if any, as are applicable to Executive on the date of termination.

  

- 9 -

  

(c)            Cause; Other than for Good Reason.  If Executive’s employment shall be terminated for Cause, or if Executive voluntarily terminates employment other than for Good Reason, during the Employment Period, this Agreement shall terminate without further obligations to Executive other than for payment of Accrued Obligations and the timely payment or provision of Other Benefits.

(d)            Expiration of Employment Period.  If Executive’s employment shall be terminated due to the normal expiration of the Employment Period, this Agreement shall terminate without further obligations to Executive, other than for payment of Accrued Obligations and the timely payment or provision of Other Benefits.

7.              Non-exclusivity of Rights.  Nothing in this Agreement shall prevent or limit Executive’s continuing or future participation in any employee benefit plan, program, policy or practice provided by Parent or its affiliated companies and for which Executive may qualify, except as specifically provided herein.  Amounts that are vested benefits or which Executive is otherwise entitled to receive under any plan, policy, practice or program of the Company or any of its affiliated companies at or subsequent to the date of termination shall be payable in accordance with such plan, policy, practice or program except as explicitly modified by this Agreement.

8.              Full Settlement; No Mitigation.  The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against Executive or others.  In no event shall Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Executive under any of the provisions of this Agreement and such amounts shall not be reduced whether or not Executive obtains other employment.

9.              Costs of Enforcement.  The Company shall reimburse Executive, on a current basis, up to $200,000 per year (not to exceed two years) for reasonable legal fees and related expenses incurred by Executive in connection with this Agreement, including without limitation, (i) such fees and expenses, if any, incurred by Executive in connection with any tax audit or proceeding to the extent attributable to the application of Section 4999 of the Code to any payment or benefit hereunder, or (ii) such fees and expenses, if any, incurred by Executive in contesting or disputing any termination of Executive’s employment, or Executive’s seeking to obtain or enforce any right or benefit provided by this Agreement, in each case, regardless of whether or not Executive’s claim is upheld by an arbitral panel or a court of competent jurisdiction; provided, however, Executive shall be required to repay to the Company any such amounts to the extent that an arbitral panel or a court issues a final and non-appealable order, judgment, decree or award setting forth the determination that the position taken by Executive was frivolous or advanced by Executive in bad faith.  The amount reimbursable by the Company under this Section 9 in any one calendar year shall not affect the amount reimbursable in any other calendar year, and the reimbursement of an eligible expense shall be made within five business days after delivery of Executive’s respective written requests for payment accompanied with such evidence of fees and expenses incurred as the Company reasonably may require, but in any event no later than December 31 of the year after the year in which the expense was incurred.  Executive’s rights pursuant to this Section 9 shall expire at the end of five years after the date of termination and shall not be subject to liquidation or exchange for another benefit.

  

- 10 -

  

10.            Limitation of Benefits.

(a)            Notwithstanding anything in this Agreement to the contrary, in the event it shall be determined that any benefit, payment or distribution by the Company to or for the benefit of Executive (whether payable or distributable pursuant to the terms of this Agreement or otherwise) (such benefits, payments or distributions are hereinafter referred to as “Payments”) would, if paid, be subject to the excise tax (the “Excise Tax”) imposed by Section 4999 of the Code, then the aggregate present value of the Payments shall be reduced (but not below zero) to an amount expressed in present value that maximizes the aggregate present value of the Payments without causing the Payments or any part thereof to be subject to the Excise Tax and therefore nondeductible by the Company because of Section 280G of the Code (the “Reduced Amount”).  The reduction of the Payments due hereunder, if applicable, shall be made by first reducing cash Payments and then, to the extent necessary, reducing those Payments having the next highest ratio of Parachute Value to actual present value of such Payments as of the date of the change of control.  For purposes of this Section 10, present value shall be determined in accordance with Section 280G(d)(4) of the Code.  For purposes of this Section 10, the “Parachute Value” of a Payment means the present value as of the date of the change of control of the portion of such Payment that constitutes a “parachute payment” under Section 280G(b)(2) of the Code.

(b)            All determinations required to be made under this Section 10, including whether an Excise Tax would otherwise be imposed, whether the Payments shall be reduced, the amount of the Reduced Amount, and the assumptions to be utilized in arriving at such determinations, shall be made by an independent, nationally recognized accounting firm or compensation consulting firm mutually acceptable to the Company and Executive (the “Determination Firm”) which shall provide detailed supporting calculations both to the Company and Executive within 15 business days of the receipt of notice from Executive that a Payment is due to be made, or such earlier time as is requested by the Company.  All fees and expenses of the Determination Firm shall be borne solely by the Company.  Any determination by the Determination Firm shall be binding upon the Company and Executive.  As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Determination Firm hereunder, it is possible that Payments hereunder will have been unnecessarily limited by this Section 10 (“Underpayment”), consistent with the calculations required to be made hereunder.  The Determination Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of Executive together with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code, but no later than March 15 of the year after the year in which the Underpayment is determined to exist.

  

- 11 -

  

(c)            In the event that the provisions of Code Section 280G and 4999 or any successor provisions are repealed without succession, this Section 10 shall be of no further force or effect.

11.            Restrictions on Conduct of Executive.

(a)            For purposes of this Section 11, the following definitions apply:

(i)             “Company” means the Company and/or any one or more of its affiliates that were within Executive’s management responsibility, including the responsibility of personnel reporting to Executive, at any time within two (2) years prior to Executive’s termination.

(ii)            “Competitive Business” means any corporation, partnership, association or other person or entity which directly competes or is planning to directly compete with the Company with respect to the operations of the Company that were within Executive’s management responsibility, including the responsibility of personnel reporting to Executive, at any time within two (2) years prior to Executive’s termination.

(iii)           “Confidential Information” means information of the Company that meets one or more of the following three conditions: (i) it has not been made available generally to the public or to the trade or industry by the Company or by another with the Company’s consent; (ii) it is related to, and useful or valuable in, the current or anticipated business of the Company and its value could be diminished by unauthorized disclosure or use; or (iii) it either has been identified as confidential to Executive by the Company (orally or in writing) or it has been maintained as confidential from outside parties or is recognized as intended for internal disclosure only.  Confidential Information includes but is not limited to strategic and other business plans and budgets, non-public financial data and forecasts, know-how, research and development programs, personnel information (including information about the identity, responsibilities, competence, compensation and satisfaction of the Company’s employees), information about planned or pending acquisitions or divestitures, sales methods, customer lists, customer usages and requirements, customer purchase histories, marketing programs, computer programs and other confidential technical or business information or data.

  

- 12 -

  

(iv)           “Trade Secret” means information of the Company, including a formula, pattern, compilation, program, device, method, technique or process, that derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and that is the subject of efforts to maintain its secrecy that are reasonable under the circumstances.

(b)            During employment with the Company, including employment prior to the Effective Date, Executive shall preserve and protect Confidential Information from unauthorized use or disclosure, and for a period of two (2) years after termination of such employment, Executive shall not use or disclose any Confidential Information in connection with or to benefit any person, company or other enterprise (including Executive) which is engaged in or is planning to become engaged in direct competition with the Company in any state of the United States of America where, at the time this Agreement is to be enforced, the Company is engaged, or has demonstrable plans to engage that were known to Executive during employment, in substantial business activities.

(c)            During employment with the Company, including employment prior to the Effective Date, Executive shall preserve and protect Trade Secrets from unauthorized use or disclosure, and after termination of such employment, Executive shall not use or disclose any Trade Secret indefinitely, or for so long as that Trade Secret remains a Trade Secret under applicable law.

(d)            The provisions of this Section 11(d) shall not apply: (i) if a Change in Control has not occurred, or (ii) if within 30 days after having received notice from the Company that a Change in Control has occurred, Executive shall have irrevocably waived his right to payments and benefits under Sections 6(a)(i)(B), 6(a)(ii), 6(a)(iii) and 6(a)(iv) of this Agreement (but not his rights to receive Accrued Obligations or Other Benefits, as defined in Sections 6(a)(i)(A) and 6(a)(v)).  If this Section 11(d) applies, Executive agrees that, at all times during the Employment Period, and for a period ending two (2) years following the date of termination of his employment for any reason, Executive will not directly or indirectly, participate in or assist in, the organization, planning, preparation, ownership, financing, management, operation or control, nor have any beneficial interest in more than 5% of the equity, of a Competitive Business, if:

(i)  said Competitive Business would utilize Executive’s services for the benefit of any broadcast, cable, print or other mass communications media operations serving any Metropolitan Statistical Area, as that term is defined by the United States Government, within the State of Wisconsin where, during two (2) years preceding Executive’s termination and at the time this Agreement is to be enforced, the Company is engaged, or has demonstrable plans to engage that were known to Executive during employment, in broadcast, cable, print or other mass communications media operations; and

  

- 13 -

  

(ii)  Confidential Information acquired by Executive during the two (2) years preceding Executive’s termination would reasonably be expected to be useful to the performance of Executive’s duties in such employment.

(e)            Executive acknowledges that a duty of loyalty to the Company and a duty to protect the Company’s confidential information are imposed upon Executive by law, including section 134.90 of the Wisconsin Statutes.

(f)             Regardless of whether the Effective Date shall have occurred, for a period of two (2) years following the date of termination of his employment, Executive agrees not to solicit or induce, or to assist anyone else in soliciting or inducing, directly or indirectly, any employee of the Company who was supervised by Executive, or about whom Executive obtained any Confidential Information, during the last two (2) years of Executive’s employment by the Company, to terminate their employment with the Company or to accept employment with a Competitive Business.  This provision is not intended to restrict the employment opportunities of any employees of the Company who seek employment with a Competitive Business without any solicitation or inducement by Executive.

(g)            Executive acknowledges that the Company has disclosed that the Company is now, and may be in the future, subject to duties to third parties to maintain information in confidence and secrecy.  By executing this Agreement, Executive consents to be bound by any such duty owed by the Company to any third party.

(h)            At the date of termination, Executive shall deliver to the Company the original and all copies of all documents, records and property of any nature whatsoever which are in Executive’s possession or control and which are the property of the Company or which relate to the business activities, facilities or customers of the Company, including any records, documents or property created by Executive in said capacity.  Executive agrees to attend an exit interview upon termination of employment to ensure that the terms of this Agreement are complied with.

(i)             For the period of two (2) years immediately following the date of termination, Executive will inform each new employer, prior to accepting employment, of the existence of this Section 11 and provide that employer with a copy of it.  In addition, Executive hereby authorizes the Company to forward a copy of this Section 11 to any actual or prospective new employer.

12.            Arbitration.

(a)            The Company and Executive agree that any dispute in connection with this Agreement shall be settled by binding arbitration conducted pursuant to the National Rules for the Resolution of Employment Disputes of the American Arbitration Association (the “AAA”).  Notwithstanding the foregoing, (i) the assessment of legal fees and related costs of such arbitration incurred by Executive shall be governed by the provisions of Section 9 of this Agreement; (ii) the arbitration shall be determined by a single arbitrator, not a panel; (iii) both the Company and Executive shall be permitted to seek summary disposition prior to hearing; and (iv) the decision rendered by the arbitrator shall be in writing and set forth findings of fact and conclusions of law.

  

- 14 -

  

(b)            Executive agrees that his agreement to submit legal disputes through binding arbitration, includes any claim for any liability or obligation in any way related to this Agreement, for any expense, damage, or losses he might claim based on, among other things, the following: (i) any discipline, demotion, denied promotion, or discharge; (ii) any Company policy, practice, contract or agreement; (iii) any tort or personal injury; (iv) any policies, practices, laws or agreements governing the payment of wages, commissions or other compensation; (v) any laws governing employment discrimination including, but not limited to, Sections 1981, 1983 and Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, the Employee Retirement Income Security Act, the Americans with Disabilities Act, any state laws or statutes (including, but not limited to, the Wisconsin Fair Employment Act), and any ordinance or local authority; (vi) any laws or agreements that provide for punitive, exemplary or statutory damages; (vii) any laws or agreements that provide for payment of attorney fees, costs or expenses; and (viii) any claim contesting or seeking declaratory relief regarding the validity or enforceability of this Agreement or any of its provisions.

(c)            The Company agrees that it too shall submit all legal disputes that it may have against Executive in any way related to this Agreement for exclusive resolution through binding arbitration, and that the resolution of Executive’s legal dispute(s) through arbitration shall be binding upon it.

(d)            The Company and Executive acknowledge and agree that the agreement to arbitrate contained in this Section 12 does not apply to the following: (i) claims under any state worker’s compensation law; (ii) claims under any state unemployment compensation law; (iii) claims for injunctive relief that may otherwise be available for the violation of any state trade secrets act or unfair competition law; (iv) any claim that by law may not be required to be resolved by binding arbitration; or (v) any request to a court for a temporary restraining order or temporary or preliminary injunction to enforce this Agreement pending submission of the merits of the parties’ dispute to arbitration.

(e)            The Company and Executive acknowledge and agree that damages awarded, if any, in any arbitration shall be limited to those damages that are otherwise available at law.

(f)            The Company and Executive acknowledge and agree that by signing this Agreement, they release and waive any right either may have to resolve their legal disputes (including employment disputes and claims of discrimination or unlawful discharge) by filing a lawsuit in court, and to have the potential opportunity of having their claim heard by a jury, and agree instead that the disputes will be resolved exclusively through binding arbitration.  The Company and Executive acknowledge that although Executive agrees to resolve Executive’s legal dispute(s) exclusively through binding arbitration, nothing in this Agreement shall be interpreted as prohibiting Executive from filing a charge of discrimination with an appropriate administrative agency or participating in the investigation or prosecution of such a charge by an appropriate administrative agency; however, this Agreement does prohibit Executive from seeking and recovering an award on his own behalf through any administrative process.

  

- 15 -

  

13.            Successors.

(a)            This Agreement is personal to Executive and without the prior written consent of the Company shall not be assignable by Executive.  This Agreement shall inure to the benefit of and be enforceable by Executive’s legal representatives.

(b)            This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

(c)            The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  In the event of any such succession and assumption of this Agreement by the successor, the term “the Company” as used in this Agreement shall thereafter include such successor.

14.            Miscellaneous.

(a)            Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Wisconsin, without reference to principles of conflict of laws.

(b)            Captions. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.

(c)            Amendments.  This Agreement may not be amended or modified otherwise than-by a written agreement executed by the parties hereto or their respective successors and legal representatives.

(d)            Notices.  All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

  

- 16 -

  

If to Executive:                  Andre J. Fernandez

P.O. Box 170865

Milwaukee, Wisconsin 53217

If to the Company:               Journal Communications, Inc.

333 West State Street

Milwaukee, Wisconsin 53203

Attention: Corporate Secretary

or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notice and communications shall be effective when actually received by the addressee.

(e)            Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

(f)             Withholding.  The Company may withhold from any amounts payable under this Agreement such Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.

(g)            Waivers.  Executive’s or the Company’s failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right Executive or the Company may have hereunder, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

(h)            Status Before and After Effective Date.  Executive and the Company acknowledge that, except as may otherwise be provided under any other written agreement between Executive and the Company, the employment of Executive by the Company is “at will” and, subject to Section 1(a) hereof, Executive’s employment and/or this Agreement may be terminated by either Executive or the Company at any time prior to the Effective Date, in which case Executive shall have no further rights under this Agreement and no further obligations other than the applicable covenants in Section 11.  From and after the Effective Date this Agreement shall supersede any other agreement between the parties with respect to the subject matter hereof.

15.            Code Section 409A.

(a)            General.  This Agreement shall be interpreted and administered in a manner so that any amount or benefit payable hereunder shall be paid or provided in a manner that is either exempt from or compliant with the requirements Section 409A of the Code and applicable Internal Revenue Service guidance and Treasury Regulations issued thereunder (and any applicable transition relief under Section 409A of the Code). Nevertheless, the tax treatment of the benefits provided under the Agreement is not warranted or guaranteed.  Neither the Company nor its directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed by Executive as a result of the application of Section 409A of the Code.

  

- 17 -

  

(b)            Definitional Restrictions.  Notwithstanding anything in this Agreement to the contrary, to the extent that any amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or distributable hereunder by reason of Executive’s termination of employment, such amount or benefit will not be payable or distributable to Executive by reason of such circumstance unless (i) the circumstances giving rise to such termination of employment meet any description or definition of “separation from service” in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions that may be available under such definition), or (ii) the payment or distribution of such amount or benefit would be exempt from the application of Section 409A of the Code by reason of the short-term deferral exemption or otherwise.  This provision does not prohibit the vesting of any amount upon a termination of employment, however defined.  If this provision prevents the payment or distribution of any amount or benefit, such payment or distribution shall be made on the date, if any, on which an event occurs that constitutes a Section 409A-compliant “separation from service” or such later date as may be required by Subsection 15(c) below.

(c)            Six-Month Delay in Certain Circumstances.  Notwithstanding anything in this Agreement to the contrary, if any amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or distributable under this Agreement by reason of Executive’s Separation from Service during a period in which he is a Specified Employee (as defined below), then, subject to any permissible acceleration of payment by the Company under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment taxes):

  

- 18 -

  

(i)             if the payment or distribution is payable in a lump sum, Executive’s right to receive payment or distribution of such non-exempt deferred compensation will be delayed until the earlier of Executive’s death or the first day of the seventh month following Executive’s Separation from Service; and

(ii)            if the payment or distribution is payable over time, the amount of such non-exempt deferred compensation that would otherwise be payable during the six-month period immediately following Executive’s Separation from Service will be accumulated and Executive’s right to receive payment or distribution of such accumulated amount will be delayed until the earlier of Executive’s death or the first day of the seventh month following Executive’s Separation from Service, whereupon the accumulated amount will be paid or distributed to Executive and the normal payment or distribution schedule for any remaining payments or distributions will resume.

For purposes of this Agreement, the term “Specified Employee” has the meaning given such term in Code Section 409A and the final regulations thereunder (“Final 409A Regulations”), provided, however, that, as permitted in the Final 409A Regulations, the Company’s Specified Employees and its application of the six-month delay rule of Code Section 409A(a)(2)(B)(i) shall be determined in accordance with rules adopted by the Board of Directors or a committee thereof, which shall be applied consistently with respect to all nonqualified deferred compensation arrangements of the Company, including this Agreement.

(signatures on following page)

  

- 19 -

  

IN WITNESS WHEREOF, Executive has hereunto set Executive’s hand and, pursuant to the authorization from its Board of Directors, the Company has caused these presents to be executed in its name on its behalf.

	  	
/s/ Andre J. Fernandez

	  	
Andre J. Fernandez

	  	  	  
	  	  	  
	  	
JOURNAL COMMUNICATIONS, INC.

	  	  	  
	  	  	  
	  	
By:

	
/s/ Steven J. Smith

	  	  	
Steven J. Smith

	  	  	
Chief Executive Officer

 

 

20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00179-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00179-of-00352.parquet"}]]