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EXHIBIT 10.3
 
INDEMNIFICATION AGREEMENT
 
 This Indemnification Agreement ("Agreement"), dated as of the 3rd day of May, 2010, is entered into between Black Hills Corporation, a South Dakota corporation ("Black Hills"), and John B. Vering ("Agent"), who, in addition to serving as a director of Black Hills Corporation, is serving as an interim officer of one or more subsidiaries of Black Hills. Agent will perform services as an interim officer according to the terms of a Independent Contractor Agreement between Black Hills and Lone Mountain Investments, Inc., and with reference to the following facts:
 
A. The Agent is more willing to continue to serve as an interim officer of one or more of Black Hills' subsidiaries provided that he is furnished the indemnity provided under this Agreement; provided the Agent reserves the right to terminate any of such positions or refuse to accept any new positions.
 
B. The South Dakota corporation law (the "SDCL") empowers Black Hills to indemnify its directors, officers, employees and agents and to indemnify persons who serve, at the request of Black Hills, as the directors, officers, employees or agents of other corporations or enterprises. The SDCL and the Bylaws of Black Hills both specifically provide that the indemnification provided for therein is not exclusive, and the Bylaws specifically authorize Black Hills to enter into agreements with officers and directors providing indemnification rights and procedures different from those set forth therein.
 
C. Black Hills has purchased Directors and Officers Liability Insurance ("D&O Insurance") as shown in the schedule attached hereto as Appendix A (the "Coverage") insuring against certain litigation and related expenses and liabilities which may be incurred by its directors and officers and those of its subsidiaries in the performance of their duties for Black Hills or its subsidiaries (when "subsidiaries" is used herein it shall also mean subsidiaries of subsidiaries). The Coverage attached as Appendix A may have been issued subsequent to the date of this Agreement due to the fact that the execution of the Agreement may have occurred following the date of the Agreement. Notwithstanding, Appendix A shall be considered the applicable Coverage as if the same had been attached and executed on the date of the Agreement.
 
D. Recent developments with respect to the terms and availability of D&O Insurance and with respect to the application, amendment and enforcement of statutory and bylaw indemnification provisions generally have raised questions concerning the adequacy and reliability of the protection afforded thereby.
 

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E. Black Hills desires that the Agent remain free in his service as an interim officer of one or more of Black Hills' subsidiaries to exercise his best judgment in the performance of his duties without undue concern for litigation claims for damages arising out of or related to the performance of such duties.
 NOW, THEREFORE, in order to induce the Agent to continue to serve as an interim officer of one or more of Black Hills' subsidiaries and in consideration of his continued service after the date hereof, Black Hills and the Agent agree as follows:
 1. Actions, Suits or Proceedings Other Than By or In the Right of Black Hills. Black Hills shall indemnify the Agent against all liabilities, costs, charges, expenses (including, without limitation, attorneys' fees and related disbursements), judgments, fines and amounts paid in settlement actually and reasonably incurred by him or on his behalf in connection with the investigation, defense or settlement of any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of Black Hills covered by Section 2 of this Agreement) and any appeal therefrom to which the Agent was or is a party or is threatened to be made a party by reason of the fact that he is or was or has agreed to become an interim officer of one or more of Black Hills' subsidiaries or in any capacity with respect to any contract payments made by Black Hills, or one if its subsidiaries pursuant to its Independent Contractor Agreement with Lone Mountain Investments, Inc., or by reason of any action alleged to have been taken or omitted in any such capacity, if he acted in good faith and in a manner he reasonably believed to be within the scope of his authority and in, or not opposed to, the best interests of Black Hills and, if applicable, such subsidiary, and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his conduct was unlawful.
 2. Actions or Suits By or In the Right of Black Hills. Black Hills shall indemnify the Agent against all costs, charges and expenses (including, without limitation, attorneys' fees and related 

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disbursements) actually and reasonably incurred by him or on his behalf in connection with the investigation, defense or settlement of any threatened, pending or completed action or suit by or in the right of Black Hills to procure a judgment in its favor and any appeal therefrom, to which the Agent was or is a party or is threatened to be made a party by reason of the fact that he is or was or has agreed to become an interim officer of one or more of Black Hills' subsidiaries or in any capacity with respect to any contractual payments made by Black Hills, or any of its subsidiaries, pursuant to its Independent Contractor Agreement with Lone Mountain Investments, Inc., or by reason of any action alleged to have been taken or omitted in any such capacity if he acted in good faith and in a manner he reasonably believed to be within the scope of his authority and in, or not opposed to, the best interests of Black Hills, and if applicable, such subsidiary, except that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable to Black Hills unless and only to the extent that the Courts of South Dakota or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of such liability but in view of all the circumstances of the case, the Agent is fairly and reasonably entitled to indemnity for such costs, charges and expenses which the Court or such other court shall deem proper. 
 3. Indemnification for Costs, Charges and Expenses of Successful Party. Notwithstanding any other provision of this Agreement, to the extent that the Agent has been successful, on the merits or otherwise, including, without limitation, the dismissal of an action without prejudice, in defense of any action, suit or proceeding referred to in Sections 1 or 2 of this Agreement, or in defense of any claim, issue or matter therein, he shall be indemnified against all costs, charges and expenses (including attorneys' fees) actually and reasonably incurred by him or on his behalf in connection therewith.

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 4. Determination of Right to Indemnification. Any indemnification under Sections 1 or 2 of this Agreement (unless ordered by a court) shall be paid by Black Hills unless a determination is made (i) by the board of directors of Black Hills by a majority vote of the directors who were not parties to such action, suit or proceeding, or if such majority of disinterested directors so directs, (ii) by independent legal counsel in a written opinion, or (iii) by the shareholders, that indemnification of the Agent is not proper in the circumstances because he has not met the applicable standard of conduct set forth in Sections 1 or 2 of this Agreement.
 5. Termination of Actions, Suits or Proceedings. For purposes of determining whether the Agent has met the applicable standard of conduct set forth in Sections 1 or 2 of this Agreement, the termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create any presumption that the Agent did not act in good faith and in a manner which he reasonably believed to be within the scope of his authority and in, or not opposed to, the best interests of, Black Hills and if applicable, any subsidiary, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his conduct was unlawful.
 6. Advance of Costs. Charges and Expenses. Costs, charges and expenses (including, without limitation, attorneys' fees and related disbursements) incurred by the Agent in defending a civil or criminal action, suit or proceeding shall be paid by Black Hills in advance of the final disposition of such action, suit or proceeding; provided, however, that the Agent agrees that the Agent will repay all amounts so advanced in the event that it shall ultimately be determined by final judicial decision from which there is no further right of appeal that the Agent is not entitled to be indemnified by Black Hills for such costs, charges and expenses as authorized in this Agreement.

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 7. Procedure of Indemnification. Any indemnification under Sections 1, 2, or 3 of this Agreement, or advance of costs, charges and expenses under Section 6 of this Agreement shall be made promptly upon, and in any event within 60 days after, the written request of the Agent therefor. The right to indemnification or advances granted by this Agreement shall be enforceable by the Agent in any court of competent jurisdiction if Black Hills denies such request, in whole or in part, or if no disposition thereof is made within 60 days. It shall be a defense to any such action (other than an action brought to enforce a claim for the advance of costs, charges and expenses under Section 6 of this Agreement where the required undertaking, if any, has been received by Black Hills) that the claimant has not met the standard of conduct set forth in Sections 1 and 2 of this Agreement, but the burden of proving such defense shall be on Black Hills. Neither the failure of Black Hills (including its board of directors, its independent legal counsel and its shareholders) to have made a determination prior to the commencement of such action that indemnification of the Agent is proper in the circumstances because he has met the applicable standard of conduct set forth in Sections 1 or 2 of this Agreement, nor the fact that there has been an actual determination by Black Hills (including its board of directors, its independent legal counsel and its shareholders) that the Agent has not met such applicable standard of conduct, shall be a defense to the action or create any presumption that the Agent has not met the applicable standard of conduct. 
 8. Settlement. Black Hills shall not be obligated to reimburse the costs of any settlement to which it has not agreed. If any action, suit or proceeding, including any appeal, within the scope of Sections 1 or 2 of this Agreement, the Agent shall have unreasonably failed to enter into a settlement thereof offered or assented to by the opposing party or parties in such action, suit or proceeding, then notwithstanding any other provision hereof, the indemnification obligation of Black Hills to the Agent in connection with such action, suit or proceeding shall not exceed the total of the amount at which such offered or agreed upon settlement could have been made and the expenses incurred by the Agent prior to the time such settlement could reasonably have been effected. 
 

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 9. Maintenance of Insurance.
 
(a) Subject only to the provisions of Section 9(b) of this Agreement, Black Hills hereby agrees that, so long as the Agent shall continue to serve as an interim officer of one or more of Black Hills' subsidiaries and thereafter so long as the Agent shall be subject to any possible claim or any threatened, pending or completed action, suit or proceeding, whether civil, criminal or investigative, by reason of the fact that he is or was or has agreed to become an interim officer of one or more of Black Hills' subsidiaries or in any capacity with respect to any contracual payments made by Black Hills pursuant to its Independent Contractor Agreement with Lone Mountain Investments, Inc., Black Hills will purchase and maintain in effect for the benefit of the Agent one or more valid, binding and enforceable policies of D&O Insurance providing, in all respects, coverage at least comparable to that provided by the Coverage.
 
(b) Black Hills shall not be required to maintain any policies of D&O Insurance described in Section 9(a) of this Agreement in effect if, in the reasonable business judgment of the directors of Black Hills (i) such insurance is not reasonably available, or (ii) the premium cost for such insurance is substantially disproportionate to the amount of coverage provided, or (iii) the coverage provided by such insurance is so limited by exclusions that there would be insufficient benefit from such insurance.
 
(c) Notwithstanding any other provision of this Agreement, in the event Black Hills does not purchase and maintain in effect a policy or policies of D&O Insurance meeting the requirements specified in Section 9(a) of this Agreement, whether for reasons of availability, cost or otherwise, Black Hills agrees to hold harmless and indemnify the Agent to the full extent of the coverage that would otherwise have been provided for the benefit of the Agent pursuant to the Coverage. The obligation of Black Hills to indemnify set forth in this Section 9(c) is in addition to and not in limitation of those other obligations to indemnify which are set forth in Sections 1, 2, 3 and elsewhere in this Agreement.
 10. Subsequent Amendment. No amendment, termination or repeal of Article V of Black Hills' Bylaws, or any successor Bylaws thereto, or of any relevant provisions of the SDCL or any other applicable laws shall affect or diminish in any way the rights of the Agent to indemnification or the obligation of Black Hills arising under this Agreement whether the alleged actions or conduct giving rise to the necessity of such indemnification arose before or after any such amendment, termination or appeal.

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 11. Other Rights: Continuation of Right to Indemnification. The indemnification provided by this Agreement shall not be deemed exclusive of, or to diminish or otherwise restrict, any other rights to which the Agent may be entitled under any law (common or statutory), provision of Black Hills' Bylaws or Restated Articles of Incorporation, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in any other capacity while holding office or while acting as agent for Black Hills or any of its subsidiaries or in any capacity with respect to actions performed in accordance with Black Hills' Independent Contractor Agreement with Lone Mountain Investments, Inc., and shall continue as to the Agent after he has ceased to be an interim officer of one or more of Black Hills' subsidiaries and to act in any of the foregoing capacities. The indemnification provided by this Agreement likewise shall not be deemed exclusive of, or to diminish or otherwise restrict the rights to which Agent may be entitled with respect to his actions as a director of Black Hills Corporation, whether provided by Black Hills' Bylaws, Restated Articles of Incorporation, the director Indemnification Agreement dated May 25, 2005, between Black Hills and Agent, under any law (common or statutory), vote of shareholders or disinterested directors or otherwise. 
 12. Notification and Defense of Claim. Promptly after receipt by the Agent of notice of the commencement of any action, suit or proceeding, the Agent will, if a claim in respect thereof is to be made against Black Hills under this Agreement, notify Black Hills of the commencement thereof. With respect to any such action, suit or proceeding.
 
 (a) Black Hills will be entitled to participate therein at its own expense; and
 
(b) Except as otherwise provided below, to the extent that it may wish, Black Hills will be entitled to assume the defense thereof, with counsel reasonably acceptable to the 

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Agent. After notice from Black Hills to the Agent of its election so to assume such defense, Black Hills shall not be liable to the Agent under this Agreement for any legal or other expenses subsequently incurred by the Agent in connection with such action, suit or proceeding, other than reasonable costs of investigation or as otherwise provided below. The Agent shall have the right to employ his own counsel in such action, suit or proceeding but the fees and expenses of such counsel incurred after notice from Black Hills of its assumption of the defense thereof shall be at the expense of the Agent unless (i) the employment of counsel by the Agent has been authorized by Black Hills, (ii) the Agent shall have reasonably concluded that there may be a conflict of interest or position between Black Hills and the Agent in the conduct of the defense of such action or (iii) Black Hills does not in fact employ counsel to assume the defense of such action, in each of which cases the fees and expenses of counsel for the Agent shall be at the expense of Black Hills. Black Hills shall not be entitled to assume the defense of any action, suit or proceeding brought by or on behalf of Black Hills or as to which the Agent shall have made the conclusion provided for in ii above.
 13. Other Payments. Black Hills shall not be liable to make any payment under this Agreement for any liabilities, costs, charges, expenses, attorneys' fees or disbursements for which payment is actually made to the Agent under any valid and collectible Coverage, or for which the Agent is indemnified by Black Hills or one or more of its subsidiaries otherwise than pursuant to this Agreement.
 14. Savings Clause. Each of the provisions of this Agreement is a separate and distinct agreement and independent of the others. If this Agreement or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then Black Hills shall nevertheless indemnify the Agent as to any liabilities, costs, charges, expenses (including, without limitation, attorneys' fees and related disbursements), judgments, fines and amounts paid in settlement with respect to any action, suit or proceeding, whether civil, criminal, administrative or investigative, including an action by or in the right of Black Hills, to the full extent permitted by any applicable portion of this Agreement that shall not have been invalidated and to the full extent permitted by applicable law. 
 

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15. Subsequent Legislation. If the SDCL is amended after the date of this Agreement to further expand the indemnification permitted to the Agent, then Black Hills shall indemnify such Agent to the fullest extent permitted by the SDCL, as so amended. 
 16. Enforcement.
 
(a) Black Hills expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on Black Hills hereby in order to induce the Agent to continue as an interim officer of one or more of Black Hills' subsidiaries, and acknowledges that the Agent is relying upon this Agreement in continuing in such capacity.
 
(b) Black Hills shall reimburse the Agent for all of the Agent's costs and expenses incurred in connection with successfully establishing his right to indemnification under this agreement, in whole or in part.
 17. Not an Agreement to Elect or Appoint. This Agreement does not constitute any agreement to reelect a director for any period of time, to engage Agent as a contractor or interim officer, or an agreement of the Agent to continue such position for any length of time or accept any new position.
 18. Governing Law. This Agreement shall be governed by and construed in accordance with South Dakota law.
 19. Binding Effect. This Agreement shall be binding upon the Agent and upon Black Hills, its successors and assigns (including any transferee of all or substantially all of its assets and any successor by merger or operation of law) and shall inure to the benefit of the Agent, his heirs, personal representatives, estate and assigns.
 20. Amendment and Termination. No amendment, modification, termination or cancellation of this Agreement shall be effective unless in writing signed by both parties hereto.
 21. Third Party Benefit. Nothing in this Agreement, whether express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any person other than parties to this Agreement and their respective heirs, personal representatives, successors and assigns.
 

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22. Effective Date. The effective date of this Agreement is the date set forth in the first paragraph hereof, notwithstanding that the execution of the Agreement may have occurred after the effective date.
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and signed as of the day and year first above written.
 BLACK HILLS CORPORATION
 
By: /s/ David R. Emery
David R. Emery
Chairman, President and Chief Executive Officer
 
 
 
/s/ John B. Vering
John B. Vering
 

10MD Filed by Filing Services Canada Inc.  (403) 717-3898

 

 

CONSULTING AGREEMENT

THIS AGREEMENT is made effective this 5th  day of August, 2010.

BETWEEN:

Lexaria Corp., a body corporate duly incorporated under the laws of the State of Nevada, and having its Registered Office at 950-1130 West Pender, in the City of Vancouver, in the Province/State of British Columbia, V6E 4A4

(hereinafter called the "Company")

OF THE FIRST PART

AND:

Tom Ihrke, an individual in the State of South Carolina residing at 38 Krier Lane, Mount Pleasant, SC 29464. Phone 843.884.4358

(hereinafter called the "Consultant," or, “Ihrke”)

OF THE SECOND PART

WHEREAS:

A.

Ihrke has served as an Advisor to the Company since May 22, 2007;

B.

The Company is desirous of retaining the consulting services of Ihrke as a Senior Vice President – Business Development, on a continuing basis and the Consultant has agreed to serve the Company as an independent contractor upon the terms and conditions hereinafter set forth;

FOR VALUABLE CONSIDERATION it is hereby agreed as follows:

.

The Consultant shall provide corporate consulting services to the Company. Such duties and responsibilities  include;

 

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a)

Capital Introduction: . In addition to his other business development activities The Consultant will attempt to introduce to,  and make investors  aware of the Company and its activities. These investors may, of their own volition, consider investing capital in The Company to be used in  business or corporate purposes including oil & gas exploration and development; equity ownership of Company shares; and/or debt financing. The Consultant is in no way selling, or has responsibility for issuing securities of the company as defined by United States or Canadian regulations.  All contacts that the Consultant discusses Company business with, will thereafter be the property of the Company and all contact information must be provided to the Company on an ongoing basis.  

b)

Business Development. The Consultant will develop and use his network of contacts that could lead to new business opportunities in the oil & gas sector; JV’s; Partnerships; or any other arrangement that could lead to new or expanded business opportunities. All contacts that the Consultant discusses Company business with, will thereafter be the property of the Company and all contact information must be provided to the Company on an ongoing basis.

c)

General Operations. The Consultant shall serve the Company (and/or such subsidiary or subsidiaries of the company as the Company may from time to time require) in such consulting capacity or capacities as may from time to time be determined by resolution of the Board of Directors or senior management of the Company and shall perform such duties and exercise such powers as may from time be determined by resolution of the Board of Directors, as an independent contractor. The Consultant will work as needed with lawyers, partners, shareholders and other stakeholders as required by the Company. Financial modeling; presentation creation and delivery; meetings and more may all be considered to be General Operations.

2.

By virtue of this Agreement, the Company is expecting, and Ihrke is accepting, the responsibility of working, on average, 20 hours a week, on behalf of the Company.  Some weeks Ihrke may be required to work more than 20 hours and some weeks Ihrke may be required to work  less than 20 hours in order to fulfill the terms of this Agreement.  The Consultant shall not act in any capacity whatsoever, directly or indirectly for or for the betterment of any other oil & gas company,
oil & gas partnership, oil & gas project or oil & gas venture. 

 

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3.

The basic remuneration of the Consultant for its services hereunder shall be at the rate of three thousand one hundred and twenty five United States dollars (US$3,125) per month, together with any such increments thereto as the Board of Directors of the Company may from time to time determine, payable on the last business day of each calendar month. In the event the Company and Ihrke mutually agree to such, the basic remuneration may instead by paid through the issuance of restricted common shares. The basic compensation covers that time required by the Consultant to fulfill his tasks. Opportunities to earn additional compensation shall be as follows:

 

a)

If an investor Ihrke introduces to the company chooses to invest in the Company, then at the time the Company receives such capital the Company shall pay an amount, in US Dollars, of up to 5% of the amount of capital raised by the Consultant. If the source of capital demands a fee itself of more than 5%, then the total combined cost of capital shall not exceed 10%, with  Ihrke agreeing to adjust the fee on whatever sliding scale is necessary to not exceed the 10% overall cap.

b)

If Ihrke arranges a business combination, merger, takeover or other material business development that is accepted by the Board of Directors of the Company, then Ihrke shall be paid an amount, in US Dollars, of up to 5% of the amount of the business transaction arranged by Ihrke. If the source of the business transaction demands a fee itself of more than 5%, then the total combined cost of the business transaction shall not exceed 10%, with the Ihrke agreeing to adjust its fee on whatever sliding scale is necessary to not exceed the 10% overall cap.

4.

The Company shall grant 150,000 stock options with a strike price to be determined at the time of granting and in accordance with the Company’s stock option plan and all regulations, to the Consultant. Further details of the stock options, including vesting, will be included within a separate stock option agreement to be executed within twenty days of signing this Agreement.

5.

The Consultant shall be responsible for the payment of its income taxes and other remittances including but not limited to any form of insurance as shall be required by any governmental entity with respect to compensation paid by the Company to the Consultant.

 

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6.

The terms "subsidiary" and "subsidiaries" as used herein mean any corporation or company of which more than 50% of the outstanding shares carrying voting rights at all times (provided that the ownership of such shares confers the right at all times to elect at least a majority of the Board of Directors of such corporation or company) are for the time being owned by or held for the Company and/or any other corporation or company in like relation to the Company and include any corporation or company in like relation to a subsidiary.

7.

The Company agrees to reimburse 50% of the cost of a Bloomberg data terminal for use by the Consultant. The Bloomberg data terminal will be used by the Consultant to study the investment structure, investors, and participants in the oil and gas industry, and for business development purposes. The Consultant will submit to the Company an invoice for the Bloomberg data terminal which is expected to approximate a $2,000 expense to the Company over each 90-day period. At such time as the Company's financial condition allows it to do so without incurring significant financial strain, the Company intends to incur the entire cost of Bloomberg data terminal.

8.

The Consultant shall be reimbursed for all travelling and other expenses actually and properly incurred by it in connection with its duties hereunder.  For all such expenses the Consultant shall furnish to the Company statements, receipts and vouchers for such out-of-pocket expenses on a monthly basis. The Consultant is pre-authorized to incur up to $500 per month, cumulatively, in relevant expenses. Amounts over $500 per month must be approved by management of the Company. Both parties recognize that as the financial condition of the Company improves or deteriorates, this amount may be increased or decreased without making changes to this document, provided the Company makes Ihrke aware of the changed amount.

9.

The Consultant shall not, either during the continuance of its contract hereunder or at any time thereafter, disclose the private affairs of the Company and/or its subsidiary or subsidiaries, or any secrets of the Company and/or its subsidiary or subsidiaries, to any person other than the Directors of the Company and/or its subsidiary or subsidiaries or for the Company's purposes and shall not (either during the continuance of its contract hereunder or at any time thereafter) use for its own purposes or for any purpose other than those of the Company any information it may acquire in
relation to the business and affairs of the Company and/or its subsidiary or subsidiaries, unless required by law. 

 

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10.

The Consultant shall well and faithfully serve the Company or any subsidiary as aforesaid during the continuance of its contract hereunder and use its best efforts to promote the interests of the Company.

11.

The Consultant agrees with the Company that it will dur­ing the term of his contract hereunder, so long as the Board of Directors of the Company and Ihrke may so desire, request Ihrke to serve the Company as an officer and director without additional remuneration other than normal director's fees, if any, payable by virtue of the office of director and the provisions of the Articles of the Company.

12.

This Agreement may be terminated forthwith by the Com­pany or Ihrke without prior notice if at any time:

(a)

The
Company or Ihrke shall commit any material breach of any of the provisions herein contained; or

(b)

The Company or Ihrke shall be guilty of any misconduct or neglect in the discharge of its duties hereunder; or

(c)

The Company or Ihrke shall become bankrupt or make any arrangements or composition with its creditors; or

(d)

The Principals of the Company or Ihrke shall become of unsound mind or be declared incompetent to handle his own personal affairs; or

(e)

The Company or Ihrke shall be convicted of any criminal offence other than an offence which, in the reasonable opinion of the Board of Directors of the Company, does not affect their position as a Consultant or a director of the Company.

 

 

 

 

 

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This Agreement may also be terminated by either party upon thirty (30) days written notice to the other. Should the Company terminate this agreement for a reason not enumerated in items 12(a), 12(b), 12(c), 12(d), or 12(e), Ihrke will be entitled to any all remuneration, as it relates to transactions which were in process but had not yet closed at the date of his termination, to which he would have otherwise been entitled for a period of 9 months after the date of his termination.

13.

In the event this Agreement is terminated by reason of default on the part of the Consultant or the written notice of the Company, then at the request of the Board of Directors of the Company, the Consultant shall cause Ihrke to forthwith resign any position or office which he then holds with the Company or any subsidiary of the Company.  The provisions of paragraph 9 shall survive the termination of this Agreement for a period of 2 years thereafter.

14.

The Company is aware that the Consultant has now and will continue to have financial interests in other companies and properties and the Company recognizes that these companies and properties will require a certain portion of the Consultant's time.  The Company agrees that the Consultant may continue to devote time to such outside interests, PROVIDED THAT such interests do not conflict with or hinder Ihrke’s ability to perform its duties under this Agreement.

15.

The services to be performed by the Consultant pursuant hereto are personal in character, and neither this Agreement nor any rights or benefits arising thereunder are assignable by the Consultant without the previous written consent of the Company.

16.

With the express exception of outstanding options granted to Ihrke as a result of Advisory Services previously performed, and any prior investment made by Ihrke in the Company, any and all previous agreements, written or oral, between the parties hereto or on their behalf relating to the agreement between the Consultant and the Company are hereby terminated and cancelled and each of the parties hereto hereby releases and forever discharges the other party hereto of and from all manner of actions, causes of action, claims and demands whatsoever under or in respect of any such previous agreements.

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17.

Any notice in writing or permitted to be given to the Consultant hereunder shall be sufficiently given if delivered to the Consultant personally or mailed by registered mail, postage prepaid, addressed to the Consultant as its last residential address known to the Company.   Provided any such notice is mailed via guaranteed overnight delivery, as aforesaid shall be deemed to have been received by the Consultant on the first business day following the date of mailing.  Any notice in writing required or permitted to be given to the Company hereunder shall be given by registered mail, postage prepaid, addressed to the Company at the address shown on page 1 hereof.  Any such notice mailed as aforesaid shall be deemed to have been received by the Company on the first business day following the date of mailing provided such mailing is sent via guaranteed overnight delivery.  Any such address for the giving of notices hereunder may be changed by notice in writing given hereunder.

18.

The provisions of this Agreement shall enure to the benefit of and be binding upon the Consultant and the successors and assigns of the Company.  For this purpose, the terms "successors" and "assigns" shall include any person, firm or corporation or other entity which at any time, whether by merger, purchase or otherwise, shall acquire all or substantially all of the assets or business of the Company.

19.

Every provision of this Agreement is intended to be severable.  If any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of the provisions of this Agreement.

20.

This Agreement is being delivered and is intended to be managed from the Province of British Columbia and shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of such Province.   Similarly no provision within this contract is deemed valid should it conflict with the current or future laws of the United States of America or current or future regulations set forth by the United States Securities and Exchange Commission. This Agreement may not be changed orally, but only by an instrument in writing signed by the party against whom or which enforcement of any waiver, change, modification or discharge is sought.

 

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21.

This Agreement and the obligations of the Company herein are subject to all applicable laws and regulations in force at the local, State, Province, and Federal levels in both Canada and the United States. In the event that there is an employment dispute between the Company and Ihrke, Ihrke agrees to allow it to be settled according to applicable Canadian law in an applicable British Columbia jurisdiction.

22.

This Agreement is in effect for a period of three months unless otherwise terminated as noted above. This Agreement shall expire on November 2, 2010 unless renewed. It is the intention of both the Company and Ihrke to renew this Agreement, and the primary terms herein, provided there are no breaches of the terms enumerated in paragraph 12.

IN WITNESS WHEREOF this Agreement has been executed as of the day, month and year first above written.

		
	SIGNED by:

____________________________

Bal Bhullar, 

CFO and Director,

Lexaria Corp.

	

		
	SIGNED by:

____________________________

Chris Bunka, 

CEO and Director,

Lexaria Corp.

	

	

SIGNED by:

 

____________________________

Tom Ihrke

Consultant

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