Exhibit 10.2
May 13, 2019
BeMetals USA Corp.
Suite 3123 - 595 Burrard Street Vancouver, British Columbia Canada, V7X lJl
Attention: Derek lwanaka, President
Dear Mr. Wilton,
Re:Management Services Agreement between BeMetals USA Corp. ("BMET USA") and South Mountain Mines Inc. ("SMMI") (the "Management Services Agreement")
Reference is made to the option agreement dated February 27, 2019 (the "Option Agreement") between BeMetals Corp. ("BMET"), Thunder Mountain Gold, Inc. ("THMG"), BMET USA, Thunder Mountain Resources, Inc. and SMMI. Capitalized terms used but not otherwise defined herein shall have the same meanings given to them in the Option Agreement.
This Management Services Agreement is entered into by BMET USA and SMMI further to and as contemplated in the Option Agreement. Under this Management Services Agreement, SMMI will provide the management services described below to BMET USA in respect of the South Mountain Property as described in Schedule 1to the Option Agreement (the "Project") on the following terms and conditions:
1.Term of Management Services Agreement
The term of this Management Services Agreement will commence on the date of execution and will terminate automatically upon the first to occur of:
(i)the second anniversary of the date of this Agreement;
(ii)at any time upon the written agreement of SMMI and BMET USA; and
(iii)the date, if any, that the Option Agreement is terminated in accordance with its terms, other than in the event that BMET completes the exercise of the Option (as defined in the Option Agreement).
IntheeventthatBMET USA completes the exercise of the Option (as definedin the Option Agreement) in accordance with the Option Agreement, this Management Services Agreement may be terminated attheelectionof BMET USAat anytimeafter Completion bygiving 30 days'notice ofsame.
2.Management Services
(a)During the term ofthisManagement Services Agreement, SMMI willprovidemanagement services to BMET USA to enable the BMET Parties to performexplorationand development work inrespectof thePropertyinthemanner contemplatedintheOption Agreement(the
"ManagementServices")including, butnotlimitedto:
(i)assisting BMETUSApersonnel and the TechnicalCommitteein runningtheOperations in accordance withtheterms of the Option Agreement;
(ii)ensuringprovisionof allnecessary ExplorationDataand access totheTechnicalCommittee, the PEA Authorandany additionalsubcontractors and/or co-authorsinatimely manner withaview to completionofthePEAas soonaspracticable;
(iii)facilitating necessary access todata andSMMIpersonnel toaccommodatetheforegoing; and
(iv)suchadditionalservicesrelating to the Project astheTechnical Committee may reasonablyrequestconsistent with the scopeand intentoftheOptionAgreement.
Services performedandexpensesincurredby SMMIareatthedirectionofthe TechnicalCommittee'sreviewand consent.
(b)SMMIrepresents and warrants that ithasenteredintoamanagementservices agreementwith THMG (the"SMMl/THMGManagement Services Agreement")pursuant to which theservices of eachof the following employees ofTHMG (the"THMGEmployees")willbe madeavailableto SMMIinorder toenableSMMItoprovidetheManagement Services to BMET: (i) Eric Jones,(ii) LarryThackery,and(iii) Jim Collard. SMMI further agrees thatitwillcomply withits obligationsunder theSMMl/THMGManagementServices Agreement in ordertoensure the continued availability of the THMG Employeestoenable SMMI to provide the Management Services. SMMI willfurtherdirectthe THMG Employees withinthescopeof the SMMl/THMG Management Services Agreement to provideservicesto SMMIto enableSMMItoprovidetheManagement Services toBMET.
(c)SMMIwillengagetheTHMG Employeesfor projectsasinstructed bythe Chair of theTechnicalCommittee.
3.Payment
InconsiderationforSMMIproviding theManagement Services, BMET USA will pay toSMMIthe sumofUS$25,000 per month withoutset-offor deduction(the"Monthly ManagementServices Fee"), providedthat,in theeventthat (i) aTHMGEmployeeresigns,isterminatedorisotherwisenotavailabletoperform the ManagementServices and(ii)THMGisunableto provideareplacementemployeeacceptable to BMET,theMonthly ManagementService Feeshallbe automaticallyadjustedproportionally(basedontheproportion ofsuchdeparting THMGEmployee'semploymentsalarycompensationin relation to the aggregate of allTHMGEmployees'salarycompensation,as advisedby THMG) toreflect that theTHMG EmployeeisnolongerprovidingservicestoSMMI.
4.Insurance
(a)SMMIagrees that while this Agreement remainsin force, to take outandmaintainwithareputableinsurance company or companies,the followinginsurance(the"SMMI Insurance"),unlessotherwisedirectedbythe Technical Committee:
(i)automobileliabilityinsurancecoveringall motorvehicles, ownedornon-owned,operated and/orlicensedby theoperator,with bodilyinjury,death and propertydamagelimitof notlessthan US$300,000 inclusive,per occurrence; and
(ii)comprehensive generalliabilityinsurance with bodilyinjury,deathandproperty damage limit of not lessthan US$1,000,000, inclusive, per occurrence; and,without restrictingthe generalityof the forgoingprovisionsof this sub-clause,such coverage shall include contractual liability and tortious liability. Theaggregateamount being US$2,000,000.
(b)SMMIshalladd theTHMG Employeesincluding thirdpartiesas additionalinsuredon the automobileandcomprehensivegeneralliabilityinsurancepolicies as setoutabove initems
4(a)(i)and(ii).
(c)SMMIshalldeliver tothe BMETParties aduplicateoriginal orcertifiedorphotostatic copy orcopiesofthepolicy or policiesofinsurance evidencing compliancewiththeprovisionscontainedin thisclause,toberetainedinSMMl'scustodyduring the continuanceof thisAgreement.
5.Indemnity
SMMI shall indemnify andsaveharmless the BMETPartiesagainst allactions proceedings, claims anddemandsfor personalinjuryor propertydamage taken or madeagainstthe BMETPartiesoritsproperty byanyGovernmentalAuthorityoranyperson,firmor corporationotherthan the BMETParties arising out of anynegligentactor omissionofSMMI, its agentsoremployees in anywayconnected withany work doneortobe done bySMMIunderthetermsofthisAgreement.
BMETUSAshall indemnifyandsaveharmless SMMIagainstallactionsproceedings,claimsanddemandsfor personal injuryorpropertydamagetakenormadeagainstSMMIoritsconsultants
orits propertyby anyGovernmentalAuthority or anyperson,firmor corporation other thanSMMIout of anynegligent act or omission ofBMETUSA, itsagentsoremployeesinany way connectedwith any workdoneortobe donebyBMET USAin connection withthis Agreement.
6.Expenses
(a)During thetermof this Agreement, BMETUSA shallreimburse SMMI for allreasonable and proper expenses incurredinproviding the Management Services, provided that suchexpenses weredirected and/or approvedbytheTechnicalCommitteepriortobeing incurred andSMMIsubmits toBMETUSAawritten statementof expensesincurred together withcopies ofallreceipts andbackup information.Suchexpenses willinclude thecost of obtaining theinsurance required tobeobtainedbySMMIunder thisAgreement.
(b)Wherever practicable BMET USA shall review, approve andreimburseSMMI for the said expenses within thirty (30} days fromthe dateon whichthewritten statement of expenses,receipts and backup is submitted.
7.Obligations of SMMIandthe THMG Employees
SMMIwarrants andagrees thatSMMIandtheTHMGEmployees willactin a professionalandhonest manner duringthetimeofthisAgreementtofulfilling faithfully and diligentlytheManagementServiceshereunderin accordancewithallreasonabledirections giventoSMMIbyBMET USA.
8.Guarantee
By execution of thisAgreement below,BMETagreestoguarantee to SMMIthedue and punctualperformance by BMETUSA ofeachcovenantandobligationtobe observed and performedby BMETUSAunder this Agreement.
9.Confidentiality
Each party willabide by theagreements with respect to confidentialityas setforthin the Option Agreement.
10.Entire Agreement
This Agreement, together with theOption Agreement, constitutes the entireagreementbetween the parties and supersedes all previous agreements andunderstandingsin any wayrelatingto the subject matter hereof. Itis expressly understoodand agreedthat no representations, inducements, promisesor agreements oral or otherwise betweenthepartiesnotembodiedhereinshall be ofany force oreffect.
11.Agreement Binding
Subject to the restrictionsonassignmenthereincontained,thisAgreement shallensure tothebenefit of and
bebindingupon the partiesheretoandtheirrespectivesuccessors,legal representatives and assigns.
12.Assignment
Other tha n as expressly contemplatedbythis Agreement,this Agreement shallnotbe assignablebyeither party.
13.Notice
All notices, requests,orother communications bytheterms hereofrequired orpermitted tobegiven by one party toanother shall be givenin writing byemail or by registeredmail,postage pre-paid, addressed as follows:
South Mountain Mines,Inc.
11770PresidentDr., Ste. F,Boise,ID83713
USA
Attention: FaxNo.:Email:
JamesCollord,President(208)322-5626
jim@thundermountaingold.com
and:
BeMetalsUSA Corp.andBeMetalsCorp.
Suite 3123-595 BurrardStreet Vancouver,British Columbia
Canada,V7X lJl
Attention:
FaxNo.:Email:
Derek lwanaka, PresidentofBMET USA
JohnWilton, CEOofBMET
{604) 609-6145
diwanaka@bemetalscorp.com
jwilton@bemetalscorp. com
Suchnotices shall be deemed to havebeengivenandreceivedifdelivered,onthedayof delivery or if sentbyemail or facsimile,onthebusiness dayfollowingthedateit wasso sent.
14.Governing Law
ThisAgreement willbe governed by and construed in accordance withthe lawsof the Stateof Idaho,USA and any proceeding relatingtoorarisingas a consequenceofthis Agreement willbe commencedor maintainedonly in the courts of the State ofIdaho, USA.
Yours truly,
BeMetals USA agrees to and acceptstheterms and conditions to this ManagementServices Contract on this13th day of May, 2019
BEMETALS USA CORP.
Per:
Dereklwanaka,President
BeMetalsCorp. herebyagreesto guaranteetheperformanceby BMET USAofits obligationshereunderpursuant to section8ofthis ManagementServicesContract.
BEMETALS CORP.
Per:
JohnWilton, CEO
