Description of Employment Agreements:

 

All the Named Executive Officers currently employed by the Corporation and/or a subsidiary of the Corporation have agreements with the

Corporation in respect of their employment. The base salary amounts payable under these employment agreements (the ""Employment

Agreements'') are adjusted annually by such amount, if any, as the Board determines following annual reviews. The Employment Agreements

contain certain restrictions on the employment of the Named Executive Officers in the gold mining industry for twelve months after the

termination of employment.

 

The provisions of the Employment Agreements with the Named Executive Officers include the following:

Each expire on the occurrence of the earliest of the following:

(i) the employee attaining the age of 65 years;

(ii) the resignation of the employee;

(iii) the Corporation terminating the employee's employment for just cause; and

(iv) the Corporation giving written notice to the employee of the termination of his employment.

 

The terms of the Employment Agreements for each Named Executive Officer provide that if the employment of the Named Executive

Officer is terminated by the Corporation, for other than just cause, the Corporation will pay to him an amount equal to twice his current annual

base salary plus an amount equal to the previous two years' variable compensation payments. The Named Executive Officer will also be

reimbursed up to $10,000 for relocation, Financial counselling and tax planning services.

 

The Employment Agreements provide that if a Named Executive Officer's employment is terminated (including resignation in certain

""circumstances'') within two years after a change in control of the Corporation, the Named Executive Officer is entitled to a severance payment

equal to 1.5 times the general severance amount he would be entitled to as indicated above. In addition, the Named Executive Officer's stock

options vest immediately. The severance payment is reduced proportionately if employment is terminated within two years of the normal

retirement date (age 65). A "change in control'' includes an event that results in one group owning 20% or more of the voting shares of the

Corporation or an entity resulting from a merger or other transaction. The circumstances in which a resignation would entitle the Named

Executive Officer to the severance payment include resignation following an adverse change in the position, compensation or responsibilities of

the Named Executive Officer, and/or a fundamental change in the nature of the business of the Corporation.