EMPLOYMENT AGREEMENT
THIS AGREEMENT made as of the 1st day of April, 2006
BETWEEN:
US Geothermal Inc., a body corporate having an xxxxxx xx Xxxxx X, 0000 Xxxxxx Xxxx Xxxxx, Xxxxx 00000
(the "Company")
AND:
Xxxxx Xxxxxxx of 0000 Xxxxxx Xxxx, Xxxxx X: Xxxxx, Xxxxx 00000
(the "Employee")
WHEREAS:
(A) the Company is in the business of developing the Raft River geothermal property;
(B) the Company wishes to engage the Employee as Chief Financial Officer; and
(C) the parties hereto wish to enter into this Agreement for the purpose of fixing the compensation and terms applicable to the employment of the Employee during the period hereinafter set out.
NOW THEREFORE THIS AGREEMENT WITNESSES that the parties hereto, in consideration of the respective covenants and agreements on the part of each of them herein contained, do hereby covenant and agree as follows:
1. Employment
The
Company hereby engages the Employee as Chief Financial Officer of the Company
and the Employee hereby accepts such employment, upon the terms and conditions
hereinafter set out.
2. Term
This
Agreement will be effective from April 1, 2006 and will remain in full force and
effect until December 31, 2008 or until terminated as hereinafter provided.
3. Responsibility
The
Employee will devote one hundred percent of his working time to his Employment
hereunder, and while engaged in his employment will have the authority and duty
to perform and carry out such duties and responsibilities as are customarily
carried out by persons holding similar positions in other development companies
comparable in size to the Company and such additional and related duties as may
from time to time be assigned, delegated, limited or determined by the
President.
4. Other
Business Activities
It is agreed that the Employee's employment
hereunder shall constitute one hundred percent of his working time which shall
be devoted exclusively for the benefit of the
Company, and therefore, the Employee may not engage in any other business activities that would interfere with, or impede, in any significant manner, the performance of his duties as Chief Financial Officer of the Company.
5. Compensation
In
consideration of the performance by the Employee of his responsibilities and
duties as Chief Financial Officer hereunder:
(a) the Company will pay the Employee the sum of US$96,000 per annum, payable in monthly installments of $8,000 no later than the last working day of the month.
(b) the Company will grant the Employee incentive stock options in such amount and on such conditions as the Board of Directors of the Company may determine from time to time; and
(c) the Company will provide the Employee and his immediate family (consisting of spouse and children) with medical, dental and related coverage as are available to the other employees of the Company.
6. Expenses
The
Company will reimburse the Employee for any and all reasonable and documented
expenses actually and necessarily incurred by the Employee in connection with
the performance of his duties under this Agreement. The Employee will furnish
the Company with an itemized account of his expenses in such form or forms as
may reasonably be required by the Company and at such times or intervals as may
be required by the Company.
7. Vacation
Employee
will be entitled to a paid vacation of three weeks within each 12 month period
under the terms of this Agreement, to be calculated from the date of the
commencement of employment set forth in Section 2 herein. This vacation must be
taken on dates which do not adversely compromise the Employee’s performance of
his duties under this Agreement.
8. Termination
This
Agreement and the Employee's employment may be terminated by the Company
summarily and without notice, payment in lieu of notice, severance payments,
benefits, damages or any sums whatsoever, on the occurrence of any one or more
of the following events:
| (a) |
The Employee's failure to carry out his duties hereunder in a competent and professional manner; | |
| (b) |
The Employee's appropriation of corporate opportunities for the Employee's direct or indirect benefit or his failure to disclose any material conflict of interest; |
| (c) |
The Employee's plea of guilty to, or conviction of, an indictable offence once all appeals (if any) have been completed without such conviction having been reversed; | |
| (d) |
The existence of cause for termination of the Employee at common law including but not limited to cause related to fraud, dishonesty, illegality, breach of statute or regulation, or gross incompetence; | |
| (e) |
Failure on the part of the Employee to disclose material facts concerning his business interests or employment outside of his employment by the Company, provided such facts relate to the Employee's duties hereunder; | |
| (f) |
Refusal on the part of the Employee to follow the reasonable and 1awfull directions of the Company; | |
| (g) |
Breach of fiduciary duty to the Company on the part of the Employee; | |
| (h) |
Material breach of this Agreement or gross negligence on the part of the Employee in carrying out his duties under this Agreement; or | |
| (i) |
A declaration of bankruptcy on the part of the Employee by a court of competent jurisdiction. |
8.1 In the event of the early termination of the Agreement for any reason set out in Section 8 above, the Employee shall only be entitled to such compensation as would otherwise be payable to the Employee hereunder up to and including such date of termination, as the case may be.
8.2 This Agreement and the Employee's employment may be terminated on notice by the Company to the Employee for any reason other than for the reasons set out in Section 8 above of this Agreement upon one month notice to the Employee. In such event, the Employee will be entitled to payment of salary and expenses until the date one month after which notice was given.
8.3 This Agreement and the Employee's employment may be terminated on notice by the Employee to the Company for any reason upon one month notice to the Company. In such event, the Employee will be entitled to payment of salary and expenses until the date one month after which notice was given.
9. Confidential
Information
The
Employee agrees to keep the affairs and Confidential Information (as defined
below) of the Company strictly confidential and shall not disclose the same to
any person, company or firm, directly or indirectly, during or after his
employment by the Company except as authorized in writing by the Board.
"Confidential Information" includes, without limitation, the following types of
information or material, both existing and contemplated, regarding the Company
or its parent, affiliated or subsidiary
companies: corporate information, including contractual licensing arrangements, plans, strategies, tactics, policies, resolutions, patent, trademark and trade name applications; any litigation or negotiations; information concerning suppliers; marketing information, including sales, investment and product plans, customer lists, strategies, methods, customers, prospects and market research data; financial information, including cost and performance data, debt arrangements, equity structure, investors and holdings; operational and scientific information, including trade secrets; technical information, including technical drawings and designs; any information relating to any mineral projects in which the Company has an actual or potential interest; and personnel information, including personnel lists, resumes, personnel data, organizational structure and performance evaluations. The Employee agrees not to use such information, directly or indirectly, for his own interests, or any interests other than those of the Company, whether or not those interests conflict with the interests of the Company during or after his employment by the Company. The Employee expressly acknowledges and agrees that all information relating to the Company, whether financial, technical or otherwise shall, upon execution of this Agreement and thereafter, as the case may be, be the sole property of the Company, whether arising before or after the execution of this Agreement. The Employee expressly agrees not to divulge any of the foregoing information to any person, partnership, Company or other legal entity or to assist in the disclosure or divulging of any such information, directly or indirectly, except as required by law or as otherwise authorized in writing by the Board. The provisions of this Section 9 and Section 9.1 below shall survive the termination of this Agreement for a period of one year.
9.1 The Employee agrees that all documents of any nature pertaining to the activities of the Company or its related corporate entities, including Confidential Information, in the Employee's possession now or at any time during the Employee's period of employment, are and shall be the property of the Company and that all such documents and copies of them shall be surrendered to the Company when requested by the Company.
10. Non-Competition
During the Non-Competition Period (as defined below), the Employee shall not, either individually or in partnership or jointly or in conjunction with any other person, entity or organization, as principal, agent, consultant, lender, contractor, employer, employee, investor, shareholder or in any other manner, directly or indirectly, advise, manage, carry on, establish, control, engage in, invest in, offer financial assistance or services to, or permit the Employee's name or any part thereof to be used by, any business in geothermal resources that competes with the business of the Company, its parent, affiliated or subsidiary companies, or any business in which the Company, its parent, affiliated or subsidiary companies is engaged. Competition, for purposes of this paragraph is defined as a 100-mile radius around any and all geothermal properties acquired by the Company up to and inclusive of the date of termination. For purposes of this Agreement, "Non-Competition Period" means a period ending twelve (12) months after the end of the termination of this Agreement.
11. Acknowledgement
The Employee acknowledges that damages would be an insufficient remedy for a breach by him of this Agreement and agrees that the Company may apply for and obtain any relief available to it in a court of law or equity, including injunctive relief, to restrain breach or threat of breach of this Agreement by the Employee or to enforce the covenants contained therein and, in particular, the covenants contained in Sections 9 and 10, in addition to rights the Company may have to damages arising from said breach or threat of breach.
12.
Representations and
Warranties
The
Employee represents and warrants to the Company that the execution and
performance of this Agreement will not result in or constitute a default,
breach, or violation, or an event that, with notice or lapse of time or both,
would be a default, breach, or violation, of any understanding, agreement or
commitment, written or oral, express or implied, to which the Employee is
currently a party or by which the Employee or Employee's property is currently
bound.
13. Governing
Law
This
Agreement shall be construed and enforced in accordance with the laws of the
State of Idaho, USA.
14. Entire
Agreement
This
Agreement constitutes the entire agreement between the parties hereto with
respect to the relationship between the Company and the Employee and supersedes
all prior arrangements and agreements, whether oral or in writing between the
parties hereto with respect to the subject matter hereof.
15. Amendments
No
amendment to or variation of the terms of this Agreement will be effective or
binding upon the parties hereto unless made in writing and signed by both of the
parties hereto.
16. Assignment
This
Agreement is not assignable by the Employee. This Agreement is assignable by the
Company to any other company, which controls, is controlled by, or is under
common control with the Company. This Agreement shall enure to the benefit of
and be binding upon the Company and its successors and permitted assigns and the
Employee and his heirs, executors and administrators.
17. Severability
Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to that jurisdiction, be ineffective to the extent of the
prohibition or unenforceability and shall be severed from the balance of this
Agreement, all without affecting the remaining provisions of this Agreement or
affecting the validity or enforceability of such provision in any other
jurisdiction.
18. Headings
The
division of this Agreement into Sections and the insertion of headings are
for
convenience or reference only and shall not affect the construction or interpretation of this Agreement.
19. Time
of
Essence
Time
shall be of the essence in all respects of this Agreement.
20. Independent
Legal
Advice
The
Employee agrees that he has had, or has had the opportunity to obtain,
independent legal advice in connection with the execution of this Agreement and
has read this Agreement in its entirety, understands its contents and is signing
this Agreement freely and voluntarily, without duress or undue influence from
any party.
21. Notice
Any
notice required or permitted to be made or given under this Agreement to either
party shall be in writing and shall b6 sufficiently given if delivered
personally, by facsimile, or if sent by prepaid registered mail to the intended
recipient of such notice at their respective addresses set forth below or to
such other address as may, from time to time, be designated by notice given in
the manner provided in this Section:
In the case of Company:
U.S. Geothermal Inc.
0000 Xxxxxx Xxxx, Xxxxx X
Xxxxx,
Xxxxx 00000
Attention: Corporate Secretary
Fax No.: 000-000-0000
In the case of Employee:
Xxxxx Xxxxxxx
0000 Xxxxxx Xxxx, Xxxxx X
Xxxxx, Xxxxx
00000
Fax No.: 000-000-0000
21.1 Any notice delivered to the party to whom it is addressed shall be deemed to have been given and received on the day it is so delivered or, if such day is not a business day, then on the next business day following any such day. Any notice mailed shall be deemed to have been given and received on the 10th business day following the date of mailing. In the case of facsimile transmission, notice is deemed to have been given or served on the party to whom it was sent at the time of dispatch if, following transmission, the sender receives a transmission confirmation report or, if the sender's facsimile machine is not equipped to issue a transmission confirmation report, the recipient confirms in writing that the notice has been received.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written.
U.S. GEOTHERMAL INC.
| By: | /s/ Xxxxxx Xxxx | |
| Xxxxxx Xxxx - President |
SIGNED by the Employee in the presence of:
| /s/ Xxx Xxxxxxxx | /s/ Xxxxx Xxxxxxx | |
| Witness | Xxxxx Xxxxxxx | |
| Xxx Xxxxxxxx | ||
| Printed Name of Witness |
