BRIGUSGOLD CORPORATION 2000Barrington Street Suite501, Cogswell Tower Halifax,Nova Scotia, Canada B3J 3K1 July 31,2010

	Very truly yours,
	BRIGUS GOLD CORPORATION
	By:	/s/ Melvyn Williams
		Name:  Melvyn Williams
		Title:    Chief Financial Officer

	Confirmed, acknowledged and agreed
	as of the date first set forth above:
		/s/ Timothy G. Smith
		Timothy G. Smith

 

This SEVERANCE AGREEMENT AND MUTUAL RELEASE (this “Agreement”) is made by and between (i) Timothy G. Smith (the “Officer”) and (ii) Brigus Gold Corporation (the “Company”).  The Company and the Officer are referred to herein collectively as the “Parties” and individually as a “Party.”

 

 

WHEREAS, this Agreement sets forth below, among other things, the terms and conditions of (i) the termination of the Officer’s employment with the Company, (ii) the Officer’s provision of consulting services, (iii) an amicable settlement and a full accord and satisfaction of all existing and all potential claims and disputes between the Officer and the Company and, (iv) subject to satisfaction of the terms and conditions set forth in this Agreement, the payment to the Officer by the Company of $200,000 in connection with the termination of his employment (the “Severance Amount”) and a lump sum payment of $16,994.40 representing twelve months of certain insurance costs (the “Insurance Amount”); and

 

WHEREAS, in order to accomplish the foregoing, the Parties are willing to enter into this Agreement.

 

NOW THEREFORE, in consideration of the mutual promises and undertakings contained herein, the sufficiency of which is acknowledged by the Parties, the Parties to this Agreement, intending to be legally bound, agree as follows:

 

 

1.	TERMINATION OF EMPLOYMENT; SEVERANCE

 

(a)           The Parties hereby agree that the Officer shall be terminated at 5:00 p.m. (Eastern time) on July 31, 2010 (the “Effective Time”) (unless such employment shall be earlier terminated in the manner set forth in the Employment Agreement dated February 15, 2004 (the “Employment Agreement”) among the Officer, the Company and Montana Tunnels Mining, Inc. (“MTMI”)).

 

(b)           The Company hereby agrees to pay the Severance Amount  and the Insurance Amount to the Officer on or prior to November 1, 2010; provided, however, the Company shall not have any obligation to pay the Severance Amount or Insurance Amount if (i) the Company terminates the Officer’s employment for cause (as defined in the Employment Agreement) prior to July 31, 2010 or (ii) the Officer terminates his employment prior to the Effective Time.  The Parties agree that the Severance Amount and Insurance Amount, subject to Section 1(b), shall be deemed to represent all amounts owing to the Officer under the Employment Agreement (including, without limitation, pursuant to Sections 6(e), 6(f) and 6(g) thereof) or otherwise, less applicable withholdings and deductions (the “Severance Payment”), and Officer agrees that no further amounts are owing to him by the Company or any Affiliate (as defined below) thereof under the Employment Agreement or otherwise (other than the Consulting Payment described below).  The Severance Payment shall be in check form and delivered to the Officer or direct deposited to an account designated by the Officer on or prior to the November 1, 2010.

 

(b)           Any stock option granted to the Officer and outstanding as of October 31, 2010 (or such earlier date as the Severance Payment is made) shall remain exercisable until the earlier to occur of (i) its normally scheduled expiration date, (ii) the first anniversary following the Effective Time or (iii) the first anniversary following such date as the Severance Payment is made (in the case of (i) and (ii), notwithstanding the terms of any option plan or agreement pursuant to which such options were granted).

 

2.	CONSULTING SERVICES

 

(a) For the period from August 1, 2010 until October 31, 2010 (the “Consulting Period”), Officer shall act as a consultant to assist with the transition of his duties to a new Chief Operating Officer and, in connection therewith, shall perform such duties as Brigus reasonably requests to assist in such transaction.

 

(b) In consideration for the foregoing consulting services, the Company shall pay Officer an aggregate fee equal to $50,000 (the “Consulting Payment”), which shall be payable in three equal installments of $16,666.66 each (or $16,666.67 with respect to the last payment) for the months of August, September and October, with the payment to be made on the first day of each month.

 

3.	OFFICER RELEASE

 

(a)           Effective upon receipt of the Severance Payment and in consideration thereof and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Officer, individually and on behalf of the Officer’s successors, heirs, subrogees, assigns, principals, agents, partners, associates, attorneys, and representatives, voluntarily, knowingly, and intentionally releases, remises, waives, acquits, and discharges the Company and its predecessors, successors, parents, subsidiaries, Affiliates (as defined below), and assigns and each of their respective officers, directors, principals, shareholders, agents, attorneys, insurers, representatives, and employees, from any and all actions, causes of action, claims, demands, losses, damages, costs, expenses, judgments, liens, indebtedness, liabilities, and attorneys’ fees (including, but not limited to any claims of entitlement for attorneys’ fees under any contract, statute, or rule of law allowing a prevailing party or plaintiff to recover attorneys’ fees), of every kind and description from the beginning of time through the date hereof (the “Released Claims”).  The term “Affiliate” in this Agreement shall mean, with respect to any Person (as defined in Section 2(d) of this Agreement), a Person that, directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with such Person or is an officer, director, holder of 10% or more of the outstanding equity securities of such Person, or the parent, spouse or lineal descendant of any of the foregoing.

 

(b)           The Released Claims include, but are not limited to, those which arise out of, relate to, or are based upon: (i) the Officer’s employment with the Company or any Affiliate thereof (including, without limitation, MTMI) or the termination thereof; (ii) statements, acts, or omissions by the Parties, whether in their individual or representative capacities; (iii) express or implied agreements between the Parties and claims under any severance plan (except as provided herein); (iv) any stock or stock option grant agreement, or plan (except as provided herein); (v) all federal, state, and municipal statutes, ordinances, and regulations, including, but not limited to, claims of discrimination based on race, age, sex, disability, whistleblower status, public policy, or any other characteristic of Officer under the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Americans and Disabilities Act, the Fair Labor Standards Act, the Equal Pay Act, Title VII of the Civil Rights Act of 1964 (as amended), the Family and Medical Leave Act, the Employee Retirement Income Security of 1974, the Rehabilitation Act of 1973, the Worker Adjustment and Retraining Notification Act, the Employment Relations Act of 1999, or any other federal, state, or municipal law prohibiting discrimination or termination for any reason; (vi) state and federal common law; (vii) the Employment Agreement and (viii) any claim which was or could have been raised by the Officer, including any claim that this Agreement was fraudulently induced.

 

(c)           This Agreement and the Released Claims include claims of every nature and every kind, whether known or unknown, suspected or unsuspected, past or present.  The Officer hereby acknowledges that he may hereafter discover facts different from, or in addition to, those which the Officer now knows or believes to be true with respect to this Agreement, and the Officer agrees that this Agreement and the release contained herein shall be and shall remain effective in all respects, notwithstanding such different or additional facts or the discovery thereof.

 

(d)           The Officer hereby covenants and warrants that the Officer has not assigned or transferred  to any Person any portion of any claims which are released, remised, waived, acquitted, and discharged in this Section 2.  The term “Person” in this Agreement shall mean any individual, corporation (including any non-profit corporation), general partnership, limited partnership, limited liability partnership, limited liability limited partnership, joint venture, estate, trust, cooperative, foundation, society, political party, union, company (including any limited liability company or joint stock company), firm or other enterprise, association, organization or other entity, and any United States federal, state or local, or any supra-national or non-U.S., government, political subdivision, governmental, regulatory or administrative authority, instrumentality, agency body or commission, self-regulatory organization, court, tribunal or judicial or arbitral body.

 

(e)           Notwithstanding anything contained herein, this Agreement shall not extend to or affect, or constitute a release of, the Officer’s right to sue, claim against or recover from the Company and shall not constitute an agreement to refrain from bringing, taking or maintaining any action against the Company in respect of (i) the right to receive the Consulting Payment or (ii) any corporate indemnity existing by statute, contract or pursuant to any of the constating documents of the Company and its subsidiaries provided in the Officer’s favor in respect of his having acted at any time as an officer executive, employee or consultant of the Company or any of its subsidiaries or Affiliates.

 

3.	COMPANY RELEASE

 

Effective upon payment of the Severance Payment and in consideration of the execution by the Officer (the “Releasee”) of this Agreement and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company hereby voluntarily, knowingly, and intentionally releases, remises, waives, acquits, and discharges the Releasee and his successors, Affiliates, and assigns and each of their respective officers, directors, principals, shareholders, agents, attorneys, insurers, representatives, and employees, from any and all actions, causes of action, claims, demands, losses, damages, costs, expenses, judgments, liens, indebtedness, liabilities, and attorneys’ fees (including, but not limited to any claims of entitlement for attorneys’ fees under any contract, statute, or rule of law allowing a prevailing party or plaintiff to recover attorneys’ fees), of every kind and description from the beginning of time through the date hereof.  Without in any way restricting the generality of the foregoing, this Section 3 shall apply to all manner of actions, causes of action, claims or demands directly or indirectly related to or arising out of or in connection with the Company’s relationship with the Releasee as an officer, executive, employee, or consultant, as the case may be, of the Company and its subsidiaries or the cessation of such relationship or relationships immediately following the Effective Time. Notwithstanding anything contained herein, this Agreement shall not extend to or affect, or constitute a release of, the Company’s right to sue, claim against or recover from the Releasee and shall not constitute an agreement to refrain from bringing, taking or maintaining any action against the Releasee in respect of (i) the consulting services set forth in Section 2 above or (ii) any grossly negligent conduct or fraudulent or criminal behaviour on the part of the Releasee or from any claims which the Company is not permitted by applicable law to release the Releasee.

 

4.	NO ADMISSION OF LIABILITY; ENFORCEMENT

 

The Parties agree that nothing contained herein, and no action taken by any Party hereto with regard to this Agreement, shall be construed as an admission by any Party of liability or of any fact that might give rise to liability for any purpose whatsoever.  The releases contained herein do not release any claims for enforcement of the terms, conditions, or warranties contained in this Agreement.  The Parties shall be free to pursue any remedies available to them to enforce this Agreement.

 

5.	OFFICER’S WARRANTIES

 

The Officer warrants and represents as follows:

 

(a)           The Officer has read this Agreement and agrees to the conditions and obligations set forth in this Agreement.

 

(b)           The Officer voluntarily executes this Agreement after having been advised by the Company to consult with independent legal counsel and after having had opportunity to consult with independent legal counsel and without being pressured or influenced by any statement or representation or omission of any Person acting on behalf of the Company, including, without limitation, the officers, directors, committee members, employees, agents, and attorneys for the Company.

 

(c)           The Officer has no knowledge of the existence of any lawsuit, charge, or proceeding against the Company or any of its officers, directors, committee members, employees, or agents arising out of or otherwise connected with any of the matters herein released.

 

(d)           The Officer has full and complete legal capacity to enter into this Agreement.

 

(e)           In connection with the Officer’s release of claims under the Age Discrimination in Employment Act, the Officer has had at least twenty-one (21) days in which to consider the terms of this Agreement.  In the event that the Officer executes this Agreement in less time, it is with the full understanding that the Officer was not pressured by the Company or any of its representatives or agents to take less time to consider the Agreement.  In such event, the Officer expressly intends such execution to be a waiver of any right the Officer had to review this Agreement for a full twenty-one (21) days.

 

(f)           The Officer understands that this Agreement waives any claim the Officer may have under the Age Discrimination in Employment Act.  The Officer may revoke this waiver for up to seven (7) days following the Officer’s execution of this Agreement.  If the Officer chooses to revoke such waiver, the Officer must provide written notice to the Senior Vice President - Finance and Corporate Development and Chief Financial Officer of the Company by hand delivery and by facsimile within seven (7) calendar days of the Officer’s execution of this Agreement.  If Officer does not revoke within the seven (7) day period, the right to revoke is lost.

 

(g)           The Officer acknowledges and agrees that, in connection with his acceptance of the Severance Payment and as a condition precedent to the payment thereof, he will execute such additional documents and agreements, in a form satisfactory to the Company, as may be requested by the Company in order to reaffirm the provisions of this Agreement, including such additional documents to the effect that (if true) the Officer has been fully and finally paid or provided all wages, compensation, bonuses, stock, stock options, or other benefits from the Company, its Affiliates and predecessors which are or could be due to him under the terms of his Employment Agreement or otherwise.

 

6.	CONFIDENTIAL INFORMATION

 

The Officer shall not use, nor disclose to any third party, any of the Company’s or its Affiliates’ or predecessors’ business, personnel, or financial information that the Officer learned during employment with the Company (the “Confidential Information”).  The Company’s “Confidential Information” shall include, without limitation, the whole or any portion or phase of any confidential, proprietary, trade secret, scientific, technical, business, or financial information, whether pertaining to the Company or its Affiliates or predecessors, or their clients and customers.  Confidential Information also shall include but shall not be limited to the following: designs, methods, strategies, techniques, systems, and processes; software programs; marketing and business development plans, concepts, or ideas; know-how; present and prospective customer lists and strategies; supplier lists and strategies; projects, plans and proposals; technical strategies, concepts, ideas, or plans; research data, reports, or records; general financial information about or proprietary to the Company or its Affiliates or predecessors, including costs, fees, and pricing; personnel or human resources information; and any and all other trade secrets or proprietary information, and all concepts or ideas in or reasonably related to the Company’s or its Affiliates’ or predecessors’ businesses, various products and/or services.  Confidential Information includes, but is not limited to, any improvements, modifications, or enhancements thereto, whether or not in tangible or intangible form, and whether or not subject to copyright or patent protection.  All such Confidential Information is extremely valuable and is intended to be kept secret to the Company, its Affiliates and predecessors, and their customers, is the sole and exclusive property of the Company, its Affiliates and predecessors, or their customers, and is subject to the restrictive covenants set forth herein.  Confidential Information is not limited to information designated or marked as such through use of such words as “classified,” “confidential” or “restricted.”  The Officer agrees not to provide or disclose to any Person, firm, or corporation any of the Company’s Confidential Information.  The Officer hereby expressly acknowledges that any breach of this Section 6 shall be deemed a material breach of this Agreement entitling the Company to immediate injunctive relief, damages, attorneys’ fees and all other remedies available hereunder and under the law.

 

7.	NON-SOLICITATION

 

(a)           The Officer agrees that, beginning upon the execution of this Agreement and for a period of one (1) year after the Consulting Period, the Officer shall not engage in the following conduct, either directly or indirectly, on the Officer’s own behalf or on behalf of, or in conjunction with, any Person, unless otherwise agreed to in advance and in writing by the Company:

 

i.

hire, solicit, induce, recruit or encourage any of the Company’s or any of its Affiliate’s employees, consultants or business relations to leave their employment or terminate their relationship with the Company or any of its Affiliates; or

 

ii.

enter into an agreement to do any of the foregoing.

 

(b)           The Officer acknowledges that the covenants contained in this Section 7, including those related to duration, geographic scope, and the scope of prohibited conduct, are reasonable and necessary to protect the legitimate interests of the Company.  The Officer further acknowledges that he is an executive and management level employee as referenced in C.R.S. 8-2-113(2)(d) and that the covenants contained in this Section 7 are necessary to protect, and reasonably related to the protection of, the Company’s Confidential Information and trade secrets, to which the Officer has been exposed.

 

(c)           The Officer hereby expressly acknowledges that any breach of this Section 7 shall be deemed a material breach of this Agreement entitling the Company to immediate injunctive relief, damages, attorneys’ fees and all other remedies available hereunder and under the law.

 

8.	NON-DISPARAGEMENT

 

The Officer agrees not to make to any Person any statement that disparages or reflects negatively on the Company, their predecessors, successors, parents, subsidiaries, Affiliates, or assigns or any of their respective officers, directors, principals, shareholders, agents, attorneys, board members, or employees, including, but not limited to, statements regarding the Company’s financial condition, employment practices, or business practices.  The Officer hereby expressly acknowledges that a breach of this Section 8 shall be deemed a material breach of this Agreement entitling the Company to immediate injunctive relief, damages, attorneys’ fees and all other remedies available hereunder and under the law.

 

9.	RETURN OF PROPERTY AND INFORMATION

 

The Officer represents and warrants that, upon the termination of his employment, he will return to the Company any and all property, documents, software, and files, including any documents (in any recorded media, such as papers, computer disks, copies, photographs, maps, transparencies, and microfiche) that relate in any way to the Company or the Company’s business.  The Officer agrees that, to the extent that he possesses any files, data, or information relating in any way to the Company or the Company’s business on any personal computer, he will either delete those files, data, or information (and will retain no copies in any form) or allow a representative of the Company to remove such files, data, or information from his personal computer.  The Officer also will return any tools, equipment, calling cards, credit cards, access cards or keys, any keys to any filing cabinets, vehicles, vehicle keys, and all other property in any form upon execution this Agreement.

 

10.	SEVERABILITY

 

If any provision of this Agreement is held illegal, invalid, or unenforceable, such holding shall not affect any other provisions hereof.  In the event any provision is held illegal, invalid, or unenforceable, such provision shall be limited so as to effect the intent of the Parties to the fullest extent permitted by applicable law.  Any claim by the Officer against the Company shall not constitute a defense to enforcement by the Company.

 

11.	ENTIRE AGREEMENT

 

This Agreement constitutes the entire agreement between the Parties with respect to the subject matter contained herein.  This Agreement supersedes any and all prior oral or written promises or agreements between the Parties, including the Employment Agreement.  To the extent of any conflict between the provisions of the Employment Agreement and this Agreement, the provisions of this Agreement shall govern. The Officer acknowledges that the Officer has not relied on any promise, representation, or statement other than those set forth in this Agreement.  This Agreement cannot be modified except in writing signed by all Parties.

 

12.	VENUE AND APPLICABLE LAW

 

This Agreement shall be interpreted and construed in accordance with the laws of the State of Colorado, without regard to its conflicts of law provisions.  Venue and jurisdiction shall be in the federal or state courts in Denver, Colorado.  If a Party is required to initiate an action in court to enforce this Agreement, the prevailing Party shall be entitled to its costs and attorneys’ fees from the other Party, to the extent such costs and fees are related to the enforcement of this Agreement.

 

13.	COUNTERPARTS

 

This Agreement may be executed in identical counterparts, which, when considered together, shall constitute the entire agreement among the Parties.

 

 

 

IN WITNESS WHEREOF, the parties have hereby executed this Agreement effective as of the ___ day of _______, 2010.

 

 

The foregoing instrument was acknowledged before me this ______ day of _________, 2010, by __________________.

 

 

Witness my hand and official seal.

 

 

My commission expires ____________________.

 

 

BRIGUS GOLD CORPORATION

 

____________________________________________________________

 

By: _________________________________________________________

 

Title: ________________________________________________________

 

 

The foregoing instrument was acknowledged before me this ______ day of, 2010, by ___________________________________, as ____________________ for Brigus Gold Corporation.

 

 

Witness my hand and official seal.

 

 

My commission expires ____________________.