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Here is what SIRG has done:
1. Increase their A/S to 990M from 440M.
http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=Uk5bViH2qqz99jcGYeuYwg%253d%253d&nt7=0
2. Increase the interest rate of the Grand View Ventures Note to 18%.
3. SIRG is required to if they haven't already filed a deed of trust to Grand View Ventures for their 80% interest in the Chloride Copper mine.
4. Extend their over $330,000 in notes due to Grand View Ventures all of 6 months, they now have just over 5 months until the notes are due. If they default, they lose the mine.
5. Increase the amount they owe Grand View Ventures by $17,500, due to the fact that SIRG is now required to pay the lawyer fees Grand View paid for the forbearance.
6. Take a new note out with Asher Enterprises in the amount of $32,500.
Effective January 10, 2012 the Company has entered into a Forbearance Agreement with Grand View (the “Agreement”). In consideration for entering into the Agreement, the Company has agreed that it shall perform (or agree to the terms of) the following material requirements: (a) the May Note shall bear an 18% interest rate from November 1, 2012 forward, (b) a deed of trust on the Company’s 80% interest in the Chloride Copper Mine shall be filed to secure the February and May Notes , (c) the exercise price associated with Warrants issued in connection with the February and May Notes shall be reset
both the February and May Notes are amended to extend the maturity date of each to July 15, 2013,
C. The Company has failed to pay principal and interest on the May Note at the Maturity Date for the May Note on November 1, 2012. In addition, Holder contends that Company is in default as a result of certain other events as specified in Section 2 below.
a. The Company has not made partial payments on the May Note upon the receipt to the Company of cash receipts as specified by Section 1(c) of the May Note. Specifically, the Company did not pay to Grand View 10% of the gross proceeds from the following borrowings as referenced in the Company’s most recent Form 10-Q:
i. The Company entered into a Convertible Promissory Note with Asher Enterprises Inc. on July 17, 2012 in the amount of $53,000. The note has an interest rate of 8% with a maturity date of April 19, 2013.
ii. The Company entered into a Promissory Note with FOGO, Inc. on July 31, 2012 in the amount of $200,000. The note has an interest rate of 12% with a maturity date of January 31, 2013.
iii. The Company entered into a Convertible Promissory Note with Asher Enterprises, Inc. on October 5, 2012 in the amount of $32,500. The note has an interest rate of 8% with a maturity date of July 10, 2013.
b. The Company has not filed a deed of trust securing the mining claim in the county of Arizona where the mining claims of the Company exist.
c. The Company has allowed certain property to be sold for scrap metal for consideration of $3,710.
d. The Company has not retired the Tangiers promissory note dated October 14, 2011 by July 14, 2012. According to page 13 of the Company’s most recent Form 10-Q, as of September 30, 2012, $15,900 was still outstanding.
e. The Company has not amended its articles of incorporation to increase the authorized Class A Common Shares (the “ Common Shares ”) to one billion shares.
f. The Company has not paid principal and interest on the May Note before, at or after the Maturity Date for the May Note on November 1, 2012.
c. Event of Default — Failure to Make Required Payments. In connection with, and as condition precedent to the extension of the Maturity Dates of the February Note and the May Note detailed in Section 5.b. above, Sections 4 of both the February Note and the May Note shall be amended as set forth in Exhibit C to state that an additional Event of Default shall be “the failure to pay interest or principal when due on any outstanding obligation of the Company (if such outstanding obligation is greater than $10,000) when due including but not limited to the FOGO, Inc. note or any Asher Enterprises, Inc. note, unless such failure is waived in writing by the holder of such obligation. Holder shall be able to rely on the terms of such obligations as provided to Holder previously or any of the Company’s SEC filings to determine when the Company is obligated to make such interest and principal payments and may presume such payments were not made or such obligations were not modified unless and until delivery of reasonable written evidence to Holder to the contrary.”
d. Event of Default — Failure to Pay Claim Maintenance Fees. In connection with, and as condition precedent to the extension of the Maturity Dates of the February Note and the May Note detailed in Section 5.b. above, Sections 4 of both the February Note and the May Note shall be amended as set forth in Exhibit C to state that an additional Event of Default shall be “failure of the Company to pay all 2013 Claim Maintenance Fees associated with the 51 Chloride Copper Mine claims with the BLM and to provide written documentation of such payment to Holder prior to July 1, 2013.”
I would hope that at least a few penny miners are smart enough not to get themselves into this kind of situation!
We can type "WRONG" in caps and bold font all day long, but that doesn't change the facts! SIRG is spiraling downward quickly!!!
Are you really trying to say that the majority of start-up companies have a lien against their SOLE ASSET with a maturity date of less than 6 months? They have all of 5 months now to pay Grand View back over $330K, or SIRG will lose their SOLE ASSET, 80% interest in the Chloride Copper Mine.
Perhaps you should take a closer look at the forbearance document.
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=9021095
No company with any other options would sign such a document. LOL...
The big difference there is that you have a source of revenue to pay for your house, and SIRG doesn't have any source of revenue to pay to keep their interest in the mine. Thus, you get to keep you home, and SIRG could easily lose their % ownership in the mine.
I think it comes down to the fact that Grand View had SIRG in the position to demand whatever they wanted to demand. By the looks of the document, Grand View had their lawyers write up the forbearance document and told SIRG either you sign here or we begin proceedings against you. SIRG had no choice but to sign the document. Things sure aren't looking good for SIRG!
When you can make $12,500 a month for doing NOTHING, why lift a finger to actually do something? J Rod will just find another company to run into the ground after this one IMO.
I think good ole J. Rod is doing a darn good job of stopping SIRG all on his own! He doesn't need any help from others to lose the companies SOLE ASSET! Lol...
VERY TRUE! The most recent update was the 8-K filed on 01/16/13.
I do believe that having to provide a a deed of trust on the Company’s 80% interest in the Chloride Copper Mine to secure the February and May Notes" out ways the importance of a "Daily Miner" article.
On one hand we have the fact that SIRG has a lien against their sole asset, and on the other hand, the BLM said the permitting process is going alright. It doesn't matter how the permitting process goes if they lose their 80% interest in the mine!
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=9021095
The only update that SIRG has had for quite some time is the fact that SIRG now has to provide a deed of trust to Grand View Ventures for their 80% of the Chloride Copper Mine, and that only gives them an additional 6 months to pay their notes to Grand View Ventures at an increase interest rate of 18%.
SIRG isn't "anticipating" the Finding of No Significant Impact certificate until April 15, 2013.
That only gives SIRG 3 months to find funding that will cover the greater than $330K they owe to Grand View Ventures.
If these are the kind of updates you are looking for, yep I see a HUGE update coming in 6 month telling investors that they defaulted on their Grand View Ventures note and no longer own 80% of the Copper Chloride Mine.
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=9021095
You sure know how to pick them Smitter! GO VDSC!
SIRG is continuing to acquire funding through Asher Enterprises, Inc.! SIRG is now in need of over $330K in funding by July, 2013, or they lose the 80% rights to the Copper Chloride Mine. I don't think even Asher is willing to give them that large of a note with a deed of trust on their mine. LOL...
iii. The Company entered into a Convertible Promissory Note with Asher Enterprises, Inc. on October 5, 2012 in the amount
of $32,500. The note has an interest rate of 8% with a maturity date of July 10, 2013.
Yes, just as many say, isn't it great to have a company that has to report everything in their filings? It shows just how deep of a hole they have dug for themselves!
Please provide a link to where it says Rod invested over $1M of his own money in this stock? J. Rod has been banking over $12,500 per month for sitting around and doing pretty much nothing. Why do something when you can get paid for doing nothing? LOL...
SIRG couldn't even pay Grand View the 10% they owed them from each new note they took out with other financing companies. What makes you think they can now pay them $330K by July?
Considering SIRG never actually had to pay anything for the Copper Chloride property other than a few shares, since the debt was written off, SIRG doesn't have much to worry about loosing.
Yep, all of 6 months before the Grand View Venture notes totaling over $330K with interest rates of 15% & 18% must be paid in full, or the 80% of the Copper Chloride Mine will no longer belong to SIRG.
SIRG has all of 6 months left afloat.
SIRG now has to provide a deed of trust to Grand View Ventures for their 80% of the Chloride Copper Mine, and that only gives them an additional 6 months to pay their notes to Grand View Ventures.
There is also the fact that SIRG is not "anticipating" the Finding of No Significant Impact certificate until April 15, 2013.
That leaves approximately 3 months for SIRG to find funding that will cover the greater than $330K it owes to Grand View Ventures.
Over the next six months SIRG must make all payments to all of the companies that have loaned them money, including but not limited to FOGO ($200K note). Seeing as SIRG couldn't even pay the interest on the Grand View note or for that matter even follow any of the guidelines set forth by the note, it is highly unlikely that they will be able to make payments on the Fogo note.
Once they default, they will no longer have the 80% of the Copper Chloride mine, and what do they have left then?
Effective January 10, 2012 the Company has entered into a Forbearance Agreement with Grand View (the “Agreement”). In consideration for entering into the Agreement, the Company has agreed that it shall perform (or agree to the terms of) the following material requirements: (a) the May Note shall bear an 18% interest rate from November 1, 2012 forward, (b) a deed of trust on the Company’s 80% interest in the Chloride Copper Mine shall be filed to secure the February and May Notes
In consideration for entering into the agreement, Grand View has agreed to the following material terms:;(i) Grand View waives any defaults and breaches of the Company or all dates prior to the date of the Forbearance Agreement, (ii) both the February and May Notes are amended to extend the maturity date of each to July 15, 2013, and (iii) revisions to the February and May Securities Purchase Agreements and February Warrant modify the calculation of anti-dilution shares.
Extension of the May Note and February Note. Sections 1.a.i of both the February Note and the May Note shall be amended as set forth in Exhibit C to state that the Maturity Date is July 15, 2013 or the BLM Extension Date (as defined below), whichever is later. To the extent that the date the Bureau of Land Management (the “ BLM ” ) issues its Finding of No Significant Impact certificate (the “ FONSI Date ”) for the Company (currently scheduled for April 15, 2013)
In connection with, and as condition precedent to the extension of the Maturity Dates of the February Note and the May Note detailed in Section 5.b. above, Sections 4 of both the February Note and the May Note shall be amended as set forth in Exhibit C to state that an additional Event of Default shall be “the failure to pay interest or principal when due on any outstanding obligation of the Company (if such outstanding obligation is greater than $10,000) when due including but not limited to the FOGO, Inc. note or any Asher Enterprises, Inc. note, unless such failure is waived in writing by the holder of such obligation. Holder shall be able to rely on the terms of such obligations as provided to Holder previously or any of the Company’s SEC filings to determine when the Company is obligated to make such interest and principal payments and may presume such payments were not made or such obligations were not modified unless and until delivery of reasonable written evidence to Holder to the contrary.”
The A/S increase from 440M to 990M has been processed by the Nevada SOS. Now SIRG has plenty of shares to dump!
http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=Uk5bViH2qqz99jcGYeuYwg%253d%253d&nt7=0
SIERRA RESOURCE GROUP INC
FORM DEF 14C
(Information Statement - All Other (definitive))
Filed 12/27/12 for the Period Ending 12/26/12
SIERRA RESOURCE GROUP, INC.
9550 S. Eastern Avenue, Suite 253
Las Vegas, Nevada 89123
DEFINITIVE INFORMATION STATEMENT
December 26, 2012
Enclosed please find an Information Statement providing information to you regarding actions taken by our Board of Directors and by stockholders holding more than a majority of our voting power to authorize an amendment to our Articles of Incorporation increasing the shares of authorized common stock, par value $0.001 per share, from 460,000,000 to 990,000,000, consisting of:
a. 970,000,000 shares of Class A common stock
b. 10,000,000 shares of Class B common stock, and
c. 10,000,000 shares of preferred stock.
These actions were approved by our Board of Directors and by approximately 51.60% of the outstanding shares of our Company entitled to vote, constituting the majority voting power necessary to approve these actions on September 7, 2012.
Nevada law and our Bylaws permit holders of a majority of the voting power to take stockholder action by majority written consent in lieu of a meeting of stockholders. In order to eliminate the costs and management time involved in holding a special meeting and in order to effect the proposed corporate actions as quickly as possible, we have proceeded with the corporate actions by obtaining a written consent to action from stockholders holding a majority of the voting power of the Company. Accordingly, we will not hold a meeting of our stockholders to consider or vote upon the foregoing actions as described in this Information Statement.
Your vote is not required to approve any of these actions, and the enclosed Information Statement is not a request for your vote or a proxy. We encourage you to read the attached Information Statement carefully, including the exhibits, for further information regarding these corporate actions which are going to be implemented by the Company. The accompanying Information Statement is furnished only to inform stockholders of the actions taken by written consent described above before they take effect in accordance with Rule 14c-2 promulgated under the Securities Exchange Act of 1934, as amended, which actions will be deemed ratified and effective at a date that is at least twenty (20) days after the date this Information Statement has been mailed or furnished to our stockholders.
This Information Statement is first being mailed on or about December 27, 2012 to all stockholders of record as of September 20, 2012 and we anticipate the effective date of the amendment to our Articles of Incorporation to be January 16, 2013, or as soon thereafter as practicable in
accordance with applicable law.
WE ARE NOT ASKING YOU FOR A PROXY AND YOU ARE REQUESTED NOT TO SEND US A PROXY.
Background
At the meeting of December 28, 2011, all then board members, Timothy Benjamin, Ricardo Cordon, Luis Munoz, and Michel Rowland, were present. The Company’s dire financial situation was discussed. At the time, the Company had negligible cash on hand and many overdue bills, including respecting the mine property that is the Company’s principal asset. Our Board of Directors reviewed the Company’s funding needs, and concluded that continued working capital from Asher was the only alternative. Board members detailed personal efforts each had made to secure short term funding, all unsuccessful to that point. Since all possible options had been explored with no success, our Board members considered how to move the Company forward by increasing the amount of authorized shares of the Company’s Class A Common Stock in order to facilitate further funding from Asher. The increase of the Company’s authorized shares was required both for compliance with the Company’s then current contractual obligations to Asher and for additional short term funding from Asher. The Board members also discussed how to accomplish an increase in the authorized shares, by calling a special shareholders’ meeting and submitting a proposal to a shareholder vote. The Board was advised that it would take approximately 60 days to complete. The board recognized that given the current active funding discussions and pending site visits by engineers preparing the Company’s Mining Plan of Operation and other permitting documentation, the Company did not have the time for a special shareholder meeting and vote. In light of the severe negative consequences to the Company of not complying with the funding requirement of increasing the authorized shares, the Board discussed the option of creating a series of preferred shares which would give a limited number of individuals the voting powers to execute a shareholder written consent in order to execute the needed increase in the amount of authorized Class A common shares, as well as any other decisions requiring shareholder approval necessary to execute both short term financing as well as long term financing that has been approved by the board.
The A/S increase to 990M has been processed by the Nevada SOS. Now SIRG has plenty of shares to dump!
http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=Uk5bViH2qqz99jcGYeuYwg%253d%253d&nt7=0
I picked up some shares for pretty cheap today! Now let's see just how high it can go!
GO VDSC!!!
Yes, in December 2011 they did agree to take the series A preferred stock "in lieu" of the compensation owed to them, which was made effective on Jan. 1, 2012!
The board of directors approved the current employment agreement with J. Rod on Feb. 20, 2012! AFTER THE SERIES A PREFERRED STOCK WAS ALREADY ISSUED!!!
It does not state they will not receive compensation until the mine opens!!!
On February 20, 2012 the board of directors approved and the Company agreed to an Employment agreement with J. Rod Martin, CEO. The employment agreement has a three-year term and is effective January 1, 2012. The agreement provides for an annual salary of $150,000 until the Company begins production at the Chloride Copper Mine at which time the rate shall increase to $250,000 per year. The agreement also includes a bonus to be determined in good faith by the Board of Directors at the end of each fiscal year with a target of $350,000 adjusted in accordance with performance.
Very true!
I don't know why there was such confusion. Lol...
That's why many people are here!
It's pretty clear that the statement is considered "BACKGROUND" information! Seeing as the Series A Preferred Stock was issued on Jan. 1, 2012, and the board of directors meeting was on Dec. 28, 2011, the fact that they did not make a salary in 2011 is old news. They don't state that they will not receive a salary in 2012.
The employment agreement would have stated that they were not going to draw a salary until the mine was open instead of $150K/year if they weren't planning on paying the officers!!!
Background
Creation of Series A Preferred Stock
Specifically, on December 28, 2011 our Board of Directors had authorized the designation of our Series A Preferred Stock, consisting of 1,000,000 shares par value $0.001 per share (the “ Series A Preferred Stock ”), in order to provide compensation to our chairman and chief executive officer for their ongoing services, in lieu of cash compensation required by their employment agreements, effective January 1, 2012. The Series A Preferred Stock bears no dividends, does not convert to any class of common stock, is subject to redemption at $0.10 per share at
The only thing that's actually clear is "that they had not been compensated up to December 28th 2011".
Other than that, you can't state with certainty that they aren't being paid under their current employment agreements. Their operating expenses definitely suggest that they are being paid!!!
OPERATING EXPENSES
For the Three Months Ended September 30,
$245,129
That's $81,710 per month!!!
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=8914764
Once again, look at the location and date of the board of directors meeting that corresponds to that statement!
Yes, in December 2011 they did agree to take the series A preferred stock "in lieu" of the compensation owed to them, which was made effective on Jan. 1, 2012!
The board of directors approved the current employment agreement with J. Rod on Feb. 20, 2012! AFTER THE SERIES A PREFERRED STOCK WAS ALREADY ISSUED!!!
There would be no employment agreement if they were not going to pay J. Rod for his services provided.
Background
Creation of Series A Preferred Stock
Specifically, on December 28, 2011 our Board of Directors had authorized the designation of our Series A Preferred Stock, consisting of 1,000,000 shares par value $0.001 per share (the “ Series A Preferred Stock ”), in order to provide compensation to our chairman and chief executive officer for their ongoing services, in lieu of cash compensation required by their employment agreements, effective January 1, 2012. The Series A Preferred Stock bears no dividends, does not convert to any class of common stock, is subject to redemption at $0.10 per share at
On February 20, 2012 the board of directors approved and the Company agreed to an Employment agreement with J. Rod Martin, CEO. The employment agreement has a three-year term and is effective January 1, 2012. The agreement provides for an annual salary of $150,000 until the Company begins production at the Chloride Copper Mine at which time the rate shall increase to $250,000 per year. The agreement also includes a bonus to be determined in good faith by the Board of Directors at the end of each fiscal year with a target of $350,000 adjusted in accordance with performance.
That seems like pretty common knowledge! Everyone knows GDSM is almost fully diluted.
What about this is confusing?
Employee shall be paid a base annual compensation initially at the rate of $100,000 per year, which rate of compensation shall be in effect until the Company begins production
I have shown where it states that J. Rod gets paid $150K annually until the mine goes into production many times now!
Here is what it says for Budman:
2.1. Base Salary.
a. As compensation for his services hereunder and as compensation for his covenant not to compete provided for in Section 4 hereof, Employee shall be paid a base annual compensation initially at the rate of $100,000 per year, which rate of compensation shall be in effect until the Company begins production at the Chloride Copper Mine at which time the rate shall increase to $175,000 per year, which compensation shall be payable monthly in advance.
Of course they do!
These actions were approved by our Board of Directors and by approximately 51.60% of the outstanding shares of our Company entitled to vote, constituting the majority voting power necessary to approve these actions on September 7, 2012.
E ARE NOT ASKING YOU FOR A PROXY AND YOU ARE REQUESTED NOT TO SEND US A PROXY.
That pretty much sums it up!
The A/S increase from 440M to 990M should be in place any day now! The filing stated on or around Jan. 16th, 2013.
SIERRA RESOURCE GROUP, INC.
9550 S. Eastern Avenue, Suite 253
Las Vegas, Nevada 89123
DEFINITIVE INFORMATION STATEMENT
Enclosed please find an Information Statement providing information to you regarding actions taken by our Board of Directors and by stockholders holding more than a majority of our voting power to authorize an amendment to our Articles of Incorporation increasing the shares of authorized common stock, par value $0.001 per share, from 460,000,000 to 990,000,000, consisting of:
a. 970,000,000 shares of Class A common stock
b. 10,000,000 shares of Class B common stock, and
c. 10,000,000 shares of preferred stock.
These actions were approved by our Board of Directors and by approximately 51.60% of the outstanding shares of our Company entitled to vote, constituting the majority voting power necessary to approve these actions on September 7, 2012.
This Information Statement is first being mailed on or about December 27, 2012 to all stockholders of record as of September 20, 2012 and we anticipate the effective date of the amendment to our Articles of Incorporation to be January 16, 2013, or as soon thereafter as practicable in accordance with applicable law.
WE ARE NOT ASKING YOU FOR A PROXY AND YOU ARE REQUESTED NOT TO SEND US A PROXY.
Immediately upon effectiveness of the Articles Amendment, certificates for 21,390,799 shares Class A Common Stock shall be issued.
If The employment agreement has a three-year term and is effective January 1, 2012, and the agreement provides for an annual salary of $150,000 until the Company begins production at the Chloride Copper Mine, he is being paid $150K annually UNTIL the mine is in production! Otherwise it would state he will begin making $150K once the mine is opened.
It seems pretty clear to me!
The statement "non-payment to them of ANY compensation since taking over the responsibilities of running the Company" is from the "Background" section of the filing. It is in reference to the decision that was made on December 28, 2011! It isn't stating they have not received payment this year, it is stating that they did not receive payment in 2011!
Background
Creation of Series A Preferred Stock
Specifically, on December 28, 2011 our Board of Directors had authorized the designation of our Series A Preferred Stock, consisting of 1,000,000 shares par value $0.001 per share (the “ Series A Preferred Stock ”), in order to provide compensation to our chairman and chief executive officer for their ongoing services, in lieu of cash compensation required by their employment agreements, effective January 1, 2012. The Series A Preferred Stock bears no dividends, does not convert to any class of common stock, is subject to redemption at $0.10 per share at the company’s election at any time and automatically upon the company obtaining financing of $1 million or more or upon consummation of such other transaction that, in the opinion of the Board, allows for the generation of at least $1 million in revenue. A more detailed description of the terms of the Series A Preferred Stock is provided below
With a vote of a disinterested and independent majority of the Board members who would have no personal interest in or gain from the share issuance, the board determined that Mr. J. Rod Martin, our Chief Executive Officer, and Mr. Timothy Benjamin, our Board chair, were the logical choices to receive the Series A Preferred Stock, as the two primary individual involved in running the day-to-day operations of the Company. The board also discussed how to structure a compensation value to the proposed preferred shares for Mr. Benjamin and Mr. Martin in consideration for the non-payment to them of any compensation since taking over the responsibilities of running the Company after the passing of Company Chief Executive Officer Patrick Champney on August 23, 2011. Each board member stated that he did not see any alternative way to save the Company from imminent financial disaster. Each Board member agreed to continue to explore other funding opportunities that would be utilized if available to prevent further debt conversion financing from Asher. The Board (excluding Mr. Benjamin) then unanimously passed the resolution to create the Series A Preferred Stock with the following particulars:
They are also a company that owes over $500K in notes by Feb 2013!
The Company entered into a Promissory Note with Fogo, Inc. on July 31, 2012 in the amount of $200,000. The note has an interest rate of 12% with the maturity date of January 27, 2013.
The Company entered into a Convertible Promissory Note with Grand View Ventures on February 16, 2012 in the amount of $190,000. The note has an interest rate of 15% with the maturity date of February 16, 2013
The Company entered into a Convertible Promissory Note with Asher Enterprises Inc. on July 17, 2012 in the amount of $53,000. The note has an interest rate of 8% with the maturity date of April 19, 2013.
The Company entered into a Convertible Promissory Note with Grand View Ventures on May 3, 2012 in the amount of $133,000. The note has an interest rate of 15% with the maturity date of November 1, 2012.
Currently being renegotiated to avoid defaulting!
Perhaps you should read it again.
The employment agreement has a three-year term and is effective January 1, 2012. The agreement provides for an annual salary of $150,000 until the Company begins production at the Chloride Copper Mine at which time the rate shall increase to $250,000 per year.
It would be nice to sit back and do nothing while banking $150K /year!
NO, the filings state management will get paid prior to the mine opening!
On February 20, 2012 the board of directors approved and the Company agreed to an Employment agreement with J. Rod Martin, CEO. The employment agreement has a three-year term and is effective January 1, 2012. The agreement provides for an annual salary of $150,000 until the Company begins production at the Chloride Copper Mine at which time the rate shall increase to $250,000 per year. The agreement also includes a bonus to be determined in good faith by the Board of Directors at the end of each fiscal year with a target of $350,000 adjusted in accordance with performance. Included in the agreement, Mr. Martin shall also receive a stock bonus representing up to an additional 40 million option shares exercisable at $0.05 per share earned in the following manner; 25% upon opening the Chloride copper plant, 25% when the company begins production at the Chloride Copper Plant, 25% upon the Company’s generation of a cumulative $5 million in revenue, and 25% upon the Company’s generation of a cumulative $10 million in revenue. At the time of the execution of this agreement, the bonus stock option price significantly exceeded the current market price thus they currently hold no value. The employment agreement also calls for a standard benefits package.
a. As compensation for his services hereunder and as compensation for his covenant not to compete provided for in Section 4 hereof, Employee shall be paid a base annual compensation initially at the rate of $100,000 per year, which rate of compensation shall be in effect until the Company begins production at the Chloride Copper Mine at which time the rate shall increase to $175,000 per year, which compensation shall be payable monthly in advance. Thereafter, the base annual salary shall be at the rate determined in good faith by the Company's Board of Directors at the Board's regularly scheduled meeting next following the end of each fiscal year, based upon the Company's review of Employee's performance during the preceding fiscal year (which review shall be completed and the results thereof communicated to Employee not later than ten work days following such meeting), but shall not be reduced below the base annual salary in effect at the end of the immediately preceding fiscal year. The base annual salary shall be payable at such periodic intervals, not less than monthly, as from time to time are applicable with respect to salaried executive personnel of the Company, and shall be inclusive of all applicable income, Social Security, and other taxes and charges that are required by law to be withheld by the Company or that are requested to be withheld by Employee.
Once again, I think you may be looking at the wrong L2. There is quite a bit of bid support above .0008 on the GDSM L2.