Document:

POTASH - Stock Option Agreement (Marcus) Apr. 21/11 (W0093399).DOC

STOCK OPTION AGREEMENT

POTASH AMERICA, INC.

THIS AGREEMENT is entered into as of the 21st day of April, 2011 (the “Date of Grant”)

BETWEEN:

POTASH AMERICA, INC., a company incorporated pursuant to the laws of the State of Nevada, of 8th Floor, 200 South Virginia Street, Reno, Nevada, 89501

(the “Company”)

AND:

NORMAN MARCUS, of 8181 W. Broward Blvd., Suite 350, Plantation, Florida,   33324

(the “Optionee”)

WHEREAS:

A.

The Board of Directors of the Company (the “Board”) has approved and adopted the 2011 Stock Option Plan (the “Plan”), pursuant to which the Board is authorized to grant to employees and other selected persons stock options to purchase common shares of the Company (the “Common Stock”);

B.

The Plan provides for the granting of stock options that either (i) are intended to qualify as “Incentive Stock Options” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or (ii) do not qualify under Section 422 of the Code (“Non-Qualified Stock Options”); and

C.

The Board has authorized the grant to the Optionee of options to purchase a total of 300,000 shares of Common Stock (the “Options”), which Options are intended to be (select one):

[X]

Incentive Stock Options;

[   ]

on Qualified Stock Options

NOW THEREFORE, the Company agrees to offer to the Optionee the option to purchase, upon the terms and conditions set forth herein and in the Plan, 300,000 shares of Common Stock.  Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Plan.

1.

Exercise Price.  The exercise price of the options shall be US $0.60 per share.

2.

Limitation on the Number of Shares.  If the Options granted hereby are Incentive Stock Options, the number of shares which may be acquired upon exercise thereof is subject to the limitations set forth in Section 5.1 of the Plan.

- 2 -

3.

Vesting Schedule.  The Options shall vest in accordance with Exhibit A.

4.

Options not Transferable.  The Options may not be transferred, assigned, pledged or hypothecated in any manner (whether by operation of law or otherwise) other than by will, by applicable laws of descent and distribution or, in the case of a Non-Qualified Stock Option, pursuant to a qualified domestic relations order, and shall not be subject to execution, attachment or similar process; provided, however, that if the Options represent a Non-Qualified Stock Option, such Option is transferable without payment of consideration to immediate family members of the Optionee or to trusts or partnerships established exclusively for the benefit of the Optionee and Optionee’s immediate family members.  Upon any attempt to transfer, pledge, hypothecate or otherwise dispose of any Option or of any right or privilege conferred by the Plan contrary to the provisions thereof, or upon the sale, levy or attachment or similar process upon the rights and privileges conferred by the Plan, such Option shall thereupon terminate and become null and void.

5.

Investment Intent.  By accepting the Options, the Optionee represents and agrees that none of the shares of Common Stock purchased upon exercise of the Options will be distributed in violation of applicable federal and state laws and regulations.  In addition, the Company may require, as a condition of exercising the Options, that the Optionee execute an undertaking, in such a form as the Company shall reasonably specify, that the Stock is being purchased only for investment and without any then-present intention to sell or distribute such shares.

6.

Termination of Employment and Options.  Vested Options shall terminate, to the extent not previously exercised, upon the occurrence of the first of the following events:

(a)

Expiration.  Five (5) years from the Date of Grant.

(b)

Termination for Cause.  The date of the first discovery by the Company of any reason for the termination of an Optionee’s employment or contractual relationship with the Company or any related company for cause (as determined in the sole discretion of the Plan Administrator), and, if an Optionee’s employment is suspended pending any investigation by the Company as to whether the Optionee’s employment should be terminated for cause, the Optionee’s rights under this Agreement and the Plan shall likewise be suspended during the period of any such investigation.

(c)

Termination Due to Death or Disability.  The expiration of one (1) year from the date of the death of the Optionee or cessation of an Optionee’s employment or contractual relationship by reason of disability (as defined in Section 5.1(g) of the Plan).  If an Optionee’s employment or contractual relationship is terminated by death, any Option held by the Optionee shall be exercisable only by the person or persons to whom such Optionee’s rights under such Option shall pass by the Optionee’s will or by the laws of descent and distribution.

- 3 -

(d)

Termination for Any Other Reason.  The expiration of three (3) months from the date of an Optionee’s termination of employment or contractual relationship with the Company or any Related Corporation for any reason whatsoever other than termination of service as a director, cause, death or Disability (as defined in Section 5.1(g) of the Plan).

Each unvested Option granted pursuant hereto shall terminate immediately upon termination of the Optionee’s employment or contractual relationship with the Company for any reason whatsoever, including Disability unless vesting is accelerated in accordance with Section 5.1(f) of the Plan.

7.

Stock. In the case of any stock split, stock dividend or like change in the nature of shares of Stock covered by this Agreement, the number of shares and exercise price shall be proportionately adjusted as set forth in Section 5.1(m) of the Plan.

8.

Exercise of Option.  Options shall be exercisable, in full or in part, at any time after vesting, until termination; provided, however, that any Optionee who is subject to the reporting and liability provisions of Section 16 of the Securities Exchange Act of 1934 with respect to the Common Stock shall be precluded from selling or transferring any Common Stock or other security underlying an Option during the six (6) months immediately following the grant of that Option.  If less than all of the shares included in the vested portion of any Option are purchased, the remainder may be purchased at any subsequent time prior to the expiration of the Option term.  No portion of any Option for less than fifty (50) shares (as adjusted pursuant to Section 5.1(m) of the Plan) may be exercised; provided, that if the vested portion of any Option is less than fifty (50) shares, it may be exercised with respect to all shares for which it is vested.  Only whole shares may be issued pursuant to an Option, and to the extent that an Option covers less than one (1) share, it is unexercisable.

Each exercise of the Option shall be by means of delivery of a notice of election to exercise (which may be in the form attached hereto as Exhibit B) to the President of the Company at its principal executive office, specifying the number of shares of Common Stock to be purchased and accompanied by payment in cash by certified check or cashier’s check in the amount of the full exercise price for the Common Stock to be purchased.  In addition to payment in cash by certified check or cashier’s check, an Optionee or transferee of an Option may pay for all or any portion of the aggregate exercise price by complying with one or more of the following alternatives:

(a)

by delivering to the Company shares of Common Stock previously held by such person, duly endorsed for transfer to the Company, or by the Company withholding shares of Common Stock otherwise deliverable pursuant to exercise of the Option, which shares of Common Stock received or withheld shall have a fair market value at the date of exercise (as determined by the Plan Administrator) equal to the aggregate purchase price to be paid by the Optionee upon such exercise; or

(b)

by complying with any other payment mechanism approved by the Plan Administrator at the time of exercise.

- 4 -

It is a condition precedent to the issuance of shares of Common Stock that the Optionee execute and/or deliver to the Company all documents and withholding taxes required in accordance with Section 5.1 of the Plan.

9.

Holding period for Incentive Stock Options.  In order to obtain the tax treatment provided for Incentive Stock Options by Section 422 of the Code, the shares of Common Stock received upon exercising any Incentive Stock Options received pursuant to this Agreement must be sold, if at all, after a date which is later of two (2) years from the date of this agreement is entered into or one (1) year from the date upon which the Options are exercised.  The Optionee agrees to report sales of shares prior to the above determined date to the Company within one (1) business day after such sale is concluded.  The Optionee also agrees to pay to the Company, within five (5) business days after such sale is concluded, the amount necessary for the Company to satisfy its withholding requirement required by the Code in the manner specified in Section 5.1(l) of the Plan.  Nothing in this Section 9 is intended as a representation that Common Stock may be sold without registration under state and federal securities laws or an exemption therefrom or that such registration or exemption will be available at any specified time.

10.

Resale restrictions may apply.  Any resale of the shares of Common Stock received upon exercising any Options will be subject to resale restrictions contained in the securities legislation applicable to the Optionee.  The Optionee acknowledges and agrees that the Optionee is solely responsible (and the Company is not in any way responsible) for compliance with applicable resale restrictions.

11.

Subject to 2011 Stock Option Plan.  The terms of the Options are subject to the provisions of the Plan, as the same may from time to time be amended, and any inconsistencies between this Agreement and the Plan, as the same may be from time to time amended, shall be governed by the provisions of the Plan, a copy of which has been delivered to the Optionee, and which is available for inspection at the principal offices of the Company.

12.

Professional Advice.  The acceptance of the Options and the sale of Common Stock issued pursuant to the exercise of Options may have consequences under federal and state tax and securities laws which may vary depending upon the individual circumstances of the Optionee.  Accordingly, the Optionee acknowledges that he or she has been advised to consult his or her personal legal and tax advisor in connection with this Agreement and his or her dealings with respect to Options.  Without limiting other matters to be considered with the assistance of the Optionee’s professional advisors, the Optionee should consider: (a) whether upon the exercise of Options, the Optionee will file an election with the Internal Revenue Service pursuant to Section 83(b) of the Code and the implications of alternative minimum tax pursuant to the Code; (b) the merits and risks of an investment in the underlying shares of Common Stock; and (c) any resale restrictions that might apply under applicable securities laws.

13.

No Employment Relationship.  Whether or not any Options are to be granted under this Plan shall be exclusively within the discretion of the Plan Administrator, and nothing contained in this Plan shall be construed as giving any person any right to participate under this Plan.  The grant of an Option shall in no way constitute any form of agreement or understanding binding on the Company or any Related Company, express or implied, that the Company or any Related Company will employ or contract with an Optionee, for any length of time, nor shall it interfere 

- 5 -

in any way with the Company’s or, where applicable, a Related Company’s right to terminate Optionee’s employment at any time, which right is hereby reserved.

14.

Entire Agreement.  This Agreement is the only agreement between the Optionee and the Company with respect to the Options, and this Agreement and the Plan supersede all prior and contemporaneous oral and written statements and representations and contain the entire agreement between the parties with respect to the Options.

15.

Notices.  Any notice required or permitted to be made or given hereunder shall be mailed or delivered personally to the addresses set forth below, or as changed from time to time by written notice to the other:

The Company:

Potash America, Inc.

8th Floor, 200 South Virginia Street,

Reno, Nevada, 89501

Attention:  President

With a copy to:

Macdonald Tuskey

Corporate and Securities Lawyers

4th Floor – 570 Granville Street

Vancouver, British Columbia V6C 3P1

Attention: William Macdonald

The Optionee:

Norman Marcus

8181 W. Broward Blvd. 

Suite 350

Plantation, Florida, 33324

POTASH AMERICA, INC.

Per:

/s/ “Barry Wattenberg”

Authorized Signatory

/s/ “Norman Marcus

NORMAN MARCUS

- 6 -

EXHIBIT A

TERMS OF THE OPTION

		
	Name of the Optionee:

	Norman Marcus

	Date of Grant:

	April 21, 2011

	Designation:

	Incentive Stock Options

	
1.

Number of Options granted:

	300,000 stock options

	
2.

Purchase Price:

	$0.60 per share

	
3.

Vesting Dates:

	100,000 options upon execution of the Stock Option Agreement; 

100,000 options on the first anniversary (April 21, 2012); and 

100,000 options on the second anniversary (April 21, 2013)

	
4.

Expiration Date:

	April 21, 2016

 

- 7 -

EXHIBIT B

To:

Potash America, Inc.

8th Floor, 200 South Virginia Street,

Reno, Nevada, 89501

Attention:  President

Notice of Election to Exercise

This Notice of Election to Exercise shall constitute proper notice pursuant to Section 5.1(h) of Potash America, Inc.’s (the “Company”) 2011 Stock Option Plan (the “Plan”) and Section 8 of that certain Stock Option Agreement (the “Agreement”) dated as of the  day of , 20___, between the Company and the undersigned.

The undersigned hereby elects to exercise Optionee’s option to purchase  shares of the common stock of the Company at a price of US$ per share, for aggregate consideration of US$, on the terms and conditions set forth in the Agreement and the Plan.  Such aggregate consideration, in the form specified in Section 8 of the Agreement, accompanies this notice.

The Optionee hereby directs the Company to issue, register and deliver the certificates representing the shares as follows:

			
	Registration Information:

	 
	Delivery Instructions:

	 
	 
	 

	Name to appear on certificates

	 
	Name

	 
	 
	 

	Address

	 
	Address

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	Telephone Number

DATED at ____________________________________, the  day of ________________________, 20___.

___________________________________________

(Name of Optionee – Please type or print)

___________________________________________

 (Signature and, if applicable, Office)

___________________________________________

 (Address of Optionee)

___________________________________________

 (City, State, and Zip Code of Optionee)Potash -  Director's Association Agreement (Brass) (W0093431).DOCX

DIRECTOR’S ASSOCIATION AGREEMENT

     THIS AGREEMENT (this "Agreement"), dated as of the 21st day of April, 2011 and effective as of the Effective Date (as defined herein), is made and entered into by and between Potash America, Inc. (hereinafter "the Company") and Alan B. Brass (hereinafter the "Director").

     WHEREAS, the Company desires to appoint the Director as a Director on 

the Company’s Board of Directors; and

     WHEREAS, the Director and the Company desire to memorialize the terms and conditions of the Director's relationship with the Company in a written binding contract.

     NOW, THEREFORE, in consideration of the mutual promises contained herein, and for other good and valuable consideration, the adequacy of which is hereby acknowledged, the parties agree as follows:

     1.  Appointment

         The Company hereby agrees to appoint the Director to the Company’s Board of Directors upon the terms and conditions stated herein, to perform and discharge such services and duties as are reasonably required of a member of the Board of Directors by the Company may designate.  The Director agrees to accept such appointment on the Company’s Board of Directors as of the Effective Date on the terms and conditions stated herein, and to devote appropriate efforts, energies and abilities to the Company’s Board on an “as-needed” basis.  Provided, however, that the Director may maintain employment elsewhere and/or may serve as a director of any company that is not directly or indirectly in competition with the Company, as long as such service as a director does not interfere with his duties and obligations to the Company’s Board.

     2.  Term; Effective Date

         The term of this Agreement shall commence as of April 21, 2011, "Effective Date") and shall continue until this Agreement is terminated pursuant to Section 8 below.  The Director may be terminated by the Company at will at any time. However, a termination of the Director shall be governed by the provisions of Section 8 below

     3.  Compensation

         As compensation for services rendered by the Director during his

tenure under this Agreement, the Company shall, commencing with the

Effective Date, compensate the Director as set out in Schedule “A” attached hereto.

     4.  Benefits

         The Company shall provide the Director with the following benefits:

N/A

     5.  Expenses

         The Company shall reimburse the Director for all reasonable and necessary business expenses incurred by him in the performance of his duties hereunder, in accordance with its policies, and provided they are vouchered in a form satisfactory to the Internal Revenue Service and consistent with company policy for the deduction of such expenses.

     6.  Compliance with Other Agreements

         The Director represents and warrants that his performance hereunder shall not conflict with any other agreements to which he is a party. The Director agrees not to enter into any agreement, either written or oral, which may conflict with this Agreement, and he authorizes the Company to make known the terms of this Agreement to any person or entity.

     7.   Confidential Information 

          The Director agrees to maintain all confidentiality with respect to any and all work product derived from the Director’s activities on behalf of the Company.

     8.  Termination

         If, for any reason, the Director's appointment by the Company is

terminated, the appointment by the Company shall be governed by the following:

          (a)  By the Company

               (i)  Termination for Cause

          The Company may terminate the appointment of the Director for Cause at any time. For purposes of this Agreement, "Cause" for termination shall mean the commission of a material act of fraud, theft or dishonesty against the Company, or willful non-performance of material duties which is not cured within sixty (60) days after receipt of written notice to the Director from the Company. In the event of a termination pursuant to this Section 8(a)(i), the Company may relieve the Director of his duties. In the event of termination pursuant to this Section 8(a)(i), the Director shall not be entitled to any further compensation or benefits from the Company, except such compensation or benefits which have been earned prior to the date of termination pursuant to the express terms of this Agreement, any Stock Option Agreement(s), as between the Company and the Director.

               (ii)  Termination Without Cause

          The Company, in its sole discretion, may terminate the appointment of the Director at any time without "Cause" as defined by Section 8(a)(i) or

without any other cause whatsoever. For purposes of this Section 8(a)(ii), a

termination without cause shall not include a death or disability (as defined in Section 8(a)(iii) below) or a termination by the Director (as defined in

Section 8(b) below).

If the Company terminates the appointment of the Director without “cause”, pursuant to this Section 8(a)(ii), (A) (I) all of the options granted to the Director shall vest and immediately become exercisable and such options shall expire five years after such termination without Cause and (B) the Director shall not be entitled to any further compensation or benefits from the Company except for such compensation or benefits which have been earned prior to the date of termination. 

          (b)  Death or Disability

          The Director's appointment shall be terminated in the event of his death or disability. The term "disability" shall mean a serious and permanent medical incapacity or disability, which continues for at least 180 days, that precludes the Director from performing the designated obligations as a member of the Board of Directors. The Company, at its option and expense, shall be entitled to retain a physician reasonably acceptable to the Director to confirm the existence of such incapacity or disability. In the event of termination under this Section 8(b), neither the Director nor his estate shall be entitled to any compensation or benefits from the Company, except for such options and compensation or benefits which have been earned prior to the date of termination. 

          (c)  By the Director

          The Director may voluntarily resign from the Board of Directors at any time upon three (3) months' written notice to the Company. In the event of such voluntary termination, the Company may at any time prior to the expiration of the notice period relieve him of his duties and pay him any compensation which may be due in lieu of notice for the remainder of said notice period.  In the event of termination pursuant to this Section 8(c), the Director shall not be entitled to any compensation or benefits from the Company except for such compensation or benefits which have been earned prior to the date of termination. 

9.  Arbitration

This Agreement will be construed under Florida law. The parties shall endeavor to settle all disputes by amicable negotiations. However, with regard to any controversies, claims and other matters in question arising out of or relating to this Agreement or its breach which are not settled through informal negotiations, said matters shall be resolved by mediation in accordance with Chapter 44, Florida Statutes, or arbitration, as follows:

          (a)  The parties shall first submit all disputes to mediation. The parties shall, within thirty (30) days of a demand for mediation, exchange list of three persons who are certified by the Florida Supreme Court in civil matters, and the parties shall attempt to agree on a mediator. If the parties are unable to agree on a mediator among the persons listed, the mediator with the best settlement statistics (highest percentage of settled cases) during the prior one year period, among the persons whose names are listed, shall be designated to mediate the dispute. The cost of mediation shall be equally divided by the parties and it shall occur in Broward County, Florida. If the parties are unable to settle the dispute through mediation, the matter shall proceed to binding arbitration.

          (b)  Arbitration shall occur in Broward County, Florida before one  arbiter agreed upon by the parties or, if no agreement is reached, by a panel of three arbiters, each of whom shall be impartial. The arbitration shall proceed in accordance with the rules of the arbiter selected. If the parties are unable to agree on a arbiter, any arbitration shall be conducted in accordance with the rules of the American Arbitration Association (“AAA”) and the panel shall be selected by the AAA. In determining the appropriate background of the members of the panel, the AAA shall give due consideration to the issues to be resolved, but its decision as to the identity of the panel shall be final.

          (c)  An arbitration may be commenced by any party to this Agreement by the service of a written request for arbitration upon the other affected parties. Such request shall summarize the controversy or claim to be arbitrated. The party seeking to commence arbitration shall include in its request whether it proposes using one agreed upon arbitrator or a panel of three to be selected by AAA. If the request proposes one arbitrator, the parties shall have thirty (30) days to agree on the arbitrator. If no agreement is reached in that period, the matter shall be referred to AAA.

          (d)  The initial cost of the arbitration, i.e. filing and administration fees, shall be borne by the party seeking to arbitrate. All attorney’s fees shall be separately borne by the respective parties, but the arbitrator(s) shall have discretion to award attorney’s fees and costs in accordance with Florida law.

          (e)  The arbitrator(s) may not alter the terms of this Agreement or award any remedy not provided in this Agreement or awardable under Florida law. The award will be based on the greater weight of the evidence and it shall state findings of fact and authority upon which it is based. If the parties use discovery, it will be in accordance with the Florida Rules of Civil Procedure and the arbitrator(s) will resolve all discovery related disputes.

          (f)  The parties hereby expressly waive punitive damages and under no circumstances shall an award contain an amount which reflects punitive damages. Judgment on the award maybe entered in any court having jurisdiction thereof, but the venue for any action is in Broward County, Florida.

          (g)  Controversies or claims submitted to arbitration under this section shall remain confidential, and to that end it is agreed that neither the facts disclosed in arbitration, the issues arbitrated nor the views or opinions of any persons concerning them shall be disclosed to third persons at any time, except to the extent necessary to enforce an award or judgment or as required by law or in response to legal process or in connection with such arbitration.

     10.  Non-Waiver

          It is understood and agreed that one party's failure at any time to

require the performance by the other party of any of the terms, provisions,

covenants or conditions hereof shall in no way affect the first party's right

thereafter to enforce the same, nor shall the waiver by either party of the

breach of any term, provision, covenant or condition hereof be taken or held to be a waiver of any succeeding breach.

     11.  Severability

          In the event that any provision of this Agreement conflicts with the law under which this Agreement is to be construed, or if any such provision is held invalid or unenforceable by a court of competent jurisdiction or any arbitrator, such provision shall be deleted from this Agreement and this Agreement shall be construed to give full effect to the remaining provisions thereof.

     12.  Governing Law

          This Agreement shall be interpreted, construed and governed

according to the laws of the State of Florida, without regard to the principle of conflicts of laws thereof.

     13.  Headings and Captions

          The paragraph headings and captions contained in this Agreement are

for convenience only and shall not be construed to define, limit or affect the scope or meaning of the provisions hereof.

     14.  Survival

          The provisions of the Stock Option Agreement (and any agreements incorporated therein by reference) shall survive the termination and/or expiration of this Agreement.

     15.  Entire Agreement

          This Agreement, contains and represents the entire agreement of the parties and supersedes all prior agreements, representations or understandings, oral or written, express or implied with respect to the subject matter hereof.  This Agreement may not be modified or amended in any way unless in writing signed by both the Director and the Company.

     16.  Assignability

          Neither this Agreement nor any rights or obligations hereunder may be assigned by either party without the prior written consent of the other. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the parties hereto and their heirs, successors and assigns.

17.  Notices

          All notices required or permitted hereunder shall be in writing and shall be deemed properly given if delivered personally or sent by certified or registered mail, postage prepaid, return receipt requested, or sent by Fedex or similar form of telecommunication, and shall be deemed to have been given when received.  Any such notice or communication shall be addressed to the Company at 200 South Virginia Street, Reno, Nevada 89501, and the Director at 8181 W. Broward Blvd., Suite 350, Plantation, Florida, 33324 or such other address as the parties shall have furnished to one another in writing.

     18.  Counterparts

          This Agreement may be executed in two or more counterparts all of which shall have the same force and effect as if all parties hereto had executed a single copy of this Agreement.

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, to be effective as of the Effective Date.

                                       POTASH AMERICA, INC.

/s/ “Alan B. Brass”

              By:   /s/ “Barry Wattenberg”

----------------------------               -----------------------------

Alan B. Brass

                    Name:    Barry Wattenberg

                                           Title:   President, CEO

SCHEDULE A – DIRECTOR’S ASSIGNMENT AGREEMENT

OPTIONS:

Name:  Alan Brass

Date of Grant:  April 21, 2011

Designation:  Incentive Stock Options

Number of Options Granted:  300,000

Purchase Price:  $0.60/share of common stock.

Vesting Date(s):  

  100,000 vests immediately;

  100,000 vesting on the first anniversary (4/21/12); and

  100,000 vesting on the second anniversary (4/21/13).

Expiration Date(s):  Options expire Five (5) Years from the date of vesting.

OTHER COMPENSATION:

Directors shall be paid a minimum of $500.00/board of directors meeting attended.

(Attendance may be via electronic means).

Directors shall be reimbursed for all reasonable expenses related to their physical attendance at the annual meeting; in addition to their director’s fees.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}]]