Document:

EXHIBIT 10.3

 

Equity Incentive Plan Non-Qualified Stock Option Grants to Directors

 

On February 8, 2014, as approved by the Compensation Committee of  the Pernix Group, Inc. Board of Directors, stock option grants were awarded  in the amount and upon the terms and conditions set forth below.

 

General Terms of Grant:

 

·                                          Form of grant: Stock option awards for non-employee Directors of Pernix Group, Inc. 

 

·                                          Term and vesting of stock options: The stock option grants vest equally over a 3 year period and are coterminous with the expiration date of the plan or 10 years from the date of the grant, whichever occurs sooner. 

 

·                                          Grant date: February 8, 2014. 

 

·                                          Exercise Price for Stock Options: To be determined based on fair market value. 

 

·                                          Number of stock options:

 

	
 
    	
 
    	
 
    	
 
    	
Stock Option
    	
 
    
	
Don Gunther, Chairman
    	
 
    	
-
    	
 
    	
25,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
C. Robert Campbell, Director
    	
 
    	
-
    	
 
    	
26,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Trudy Clark, Director
    	
 
    	
-
    	
 
    	
13,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Max Engler, Director
    	
 
    	
-
    	
 
    	
13,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ibrahim Ibrahim, Director
    	
 
    	
-
    	
 
    	
13,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Carl Smith, Director
    	
 
    	
-
    	
 
    	
13,000Exhibit 10.1

 

ADVISORY SERVICES AGREEMENT

 

THIS ADVISORY SERVICES AGREEMENT (the “Agreement”), is made and entered into as of the 5th day of March, 2014 (the “Effective Date”), by and between HELMERICH & PAYNE, INC. (the “Company”) and Hans C. Helmerich (“Helmerich”).

 

W I T N E S S E T H:

 

WHEREAS, Helmerich possesses extensive expertise and experience in the area of oil and gas contract drilling;

 

WHEREAS, Helmerich has agreed to provide certain advisory services to the Company and to receive payment therefor pursuant to this Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants herein, the parties agree as follows:

 

1.                                      Term.  The term of this Agreement shall be March 5, 2014 to February 28, 2017 (the “Term”) unless terminated earlier as provided herein.

 

2.                                      Services.  During the Term of this Agreement, Helmerich shall provide advice and counsel on those matters identified by the Company’s Board of Directors.  It is anticipated that Mr. Helmerich shall provide advice on corporate strategy and business development as well as supporting stakeholder relations.  It is estimated that Helmerich will provide approximately 35 hours of services to the Company per month.  Helmerich shall not be prevented from engaging in other consulting projects or endeavors which are not in direct conflict with the business of the Company or its subsidiaries or his duties under this Agreement.

 

3.                                      Fee.

 

(a)         In consideration for the performance of the services described in Section 2 hereof, during the Term, Helmerich shall be paid a monthly fee as described below, payable at the end of each month:

 

·                  $41,667 monthly (March 2014 through February 2015)

 

·                  $33,333 monthly (March 2015 through February 2016)

 

·                  $25,000 monthly (March 2016 through February 2017)

 

(b)         Expenses.  Helmerich shall be entitled to receive reimbursement for all reasonable business and travel expenses incurred for the benefit of the Company (including first 

 

 

class travel for international air flights), all under and in accordance with the policies, practices and procedures of the Company as approved and interpreted by the Board of Directors.

 

4.                                      Independent Contractor.  Helmerich is retained by the Company as an independent contractor and not as an “agent” or “employee” of the Company.  During the Term of this Agreement, Helmerich shall hold himself out as an independent contractor and not as an “agent” or “employee” of the Company.  Accordingly, the Company will not provide nor will it be responsible to pay for, wages or benefits to Helmerich pursuant to this Agreement.  Further, Helmerich shall be responsible for withholding of applicable federal and state income tax and such other insurance and payroll deductions as required by law.  Helmerich is responsible, where necessary, to secure at his sole cost, worker’s compensation insurance, disability benefits or any other insurance as may be required by law.

 

5.                                      Indemnity.  The Company shall indemnify and hold harmless Helmerich against and in respect of any and all damages, claims, losses, expenses, costs, obligations and liabilities (including reasonable attorney’s fees) incident to any suit, action, investigation, claim or proceeding which Helmerich may incur or may suffer as a direct result of providing services pursuant to this Agreement; provided, that the foregoing indemnification shall not include or apply to any loss or liability arising out of any act or omission of Helmerich which resulted from his fraud, gross negligence or willful misconduct or breach or default under this Agreement.

 

6.                                      Compliance with Applicable Laws.  During the Term of this Agreement, Helmerich will comply with all applicable laws, rules and regulations with regard to his performance of services hereunder.

 

7.                                      Termination.

 

(a)                                 Expiration.  This Agreement shall terminate, without further action of the parties hereto, upon the expiration of the Term as provided in Section 1.

 

(b)                                 Early Termination.  Either party can terminate this Agreement at any time for any reason upon 60 days prior written notice to the other party.

 

(c)                                  Death or Disability.  This Agreement will immediately terminate upon the death or disability of Helmerich.

 

8.                                      Obligations of Company Upon Termination.  If this Agreement is terminated as provided in Section 7 above, then this Agreement shall terminate without further obligation to Helmerich, other than those obligations accrued or earned by Helmerich as of the date of termination.  In the event of termination, Helmerich shall return all property of Company within thirty (30) days of termination.

 

9.                                      Confidentiality.  All information received by Helmerich regarding the Company including its business, operations, trade secrets or assets shall be confidential and shall not be disclosed to any third party except as specifically required for Helmerich to perform his services under this Agreement.

 

 

10.                               Successors and Binding Effect.

 

(a)                                 Assignment.  This Agreement shall not be assignable by either party without prior written consent of the other party.

 

(b)                                 Binding Effect.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective personal or legal representatives, executors, administrators and successors.

 

11.                               Miscellaneous.

 

(a)                                 Construction.  This Agreement shall be interpreted, construed and enforced in accordance with the laws of the State of Oklahoma.

 

(b)                                 Headings.  The captions of this Agreement are not part of the provisions hereof and shall have no force and effect.

 

(c)                                  Amendment.  This Agreement may not be amended or modified except by a written agreement executed by the parties hereto or their respective successors, assigns or the legal representatives as the case may be.

 

(d)                                 Notices.  All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid.  Notices and communications shall be effective when actually received by the addressee unless otherwise specifically provided in this Agreement.

 

(e)                                  Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provisions of this Agreement.

 

(f)                                   No Waiver.  The failure of either party to insist upon strict compliance with any provision hereof shall not be deemed to be a waiver of such provision or any other provision hereof.

 

(g)                                  Entire Agreement.  This Agreement contains the entire understanding of the Company and Helmerich with respect to the subject matter hereof.

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written.

 

 

	
 
    	
HELMERICH & PAYNE, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/ John W. Lindsay
    
	
 
    	
 
    	
JOHN W. LINDSAY, PRESIDENT & CEO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Hans C. Helmerich
    
	
 
    	
HANS C. HELMERICHExhibit 10.8

 

LOCK-UP AGREEMENT

 

	
 
    	
October 29, 2013
    

 

Blue Capital Reinsurance Holdings Ltd.

 

Deutsche Bank Securities Inc.
 Barclays Capital Inc.
 UBS Securities LLC

 

As Representatives of the
 Several Underwriters

 

c/o Deutsche Bank Securities Inc.
 60 Wall Street, 4th Floor
 New York, New York 10005

 

Ladies and Gentlemen:

 

Montpelier Reinsurance Ltd. (“Montpelier”) understands that Deutsche Bank Securities Inc. (“Deutsche Bank”), Barclays Capital Inc. and UBS Securities LLC, as representatives (the “Representatives”) of the several underwriters (the “Underwriters”), propose to enter into an Underwriting Agreement (the “Underwriting Agreement”) with Blue Capital Reinsurance Holdings Ltd. (the “Company”), providing for the public offering by the Underwriters, including the Representatives, of common shares, par value $1.00 per share (the “Common Shares”), of the Company (the “Public Offering”).

 

To induce the Underwriters that may participate in the Public Offering to continue their efforts in connection with the Public Offering, Montpelier agrees that, without the prior written consent of Deutsche Bank, Montpelier will not, directly or indirectly, offer, sell, pledge, contract to sell (including any short sale), grant any option to purchase or otherwise dispose of any Common Shares (including, without limitation, Common Shares of the Company which may be deemed to be beneficially owned by Montpelier currently or hereafter in accordance with the rules and regulations of the Securities and Exchange Commission (the “Commission”), Common Shares which may be issued upon exercise of a stock option or warrant and any other security convertible into or exchangeable for Common Shares) or enter into any Hedging Transaction (as defined below) relating to the Common Shares (each of the foregoing referred to as a “Disposition”) during the period commencing on the date hereof and continuing until, and including, the date that is 12 months after the date of the final prospectus relating to the Public Offering (the “Lock-Up Period”). The foregoing restriction described in the immediately preceding sentence shall not apply to (A) Dispositions of Common Shares to a controlled Affiliate of Montpelier or (B) Common Shares held on behalf of third parties or as part of

 

 

Montpelier’s Affiliates’ general investment portfolio, provided it shall be a condition to such Disposition or transfer that the transferee execute an agreement stating that the transferee is receiving and holding the securities subject to the provisions of this Lock-Up Agreement, and provided, further, that, during the period commencing on the date hereof and continuing until, and including, the date that is 180 days after the date of the final prospectus relating to the Public Offering, such Disposition or transfer does not trigger any filing or reporting requirement or obligation or result in any other voluntary or mandatory public disclosure, including but not limited to Form 4 of Section 16 of the Securities Exchange Act of 1934, as amended. The foregoing restrictions are expressly intended to preclude Montpelier from engaging in any Hedging Transaction or other transaction which is designed to or reasonably expected to lead to or result in a Disposition during the Lock-Up Period even if the securities would be disposed of by someone other than Montpelier.  “Hedging Transaction” means any short sale (whether or not against the box) or any purchase, sale or grant of any right (including, without limitation, any put or call option) with respect to any security (other than a broad-based market basket or index) that includes, relates to or derives any significant part of its value from the Common Shares. “Affiliate” means, as to Montpelier, any other person that, directly or indirectly, controls, is controlled by, or is under common control with, Montpelier. For this purpose, “control” (including, with its correlative meanings, “controlled by” and “under common control with”) shall mean the possession, directly or indirectly, of the power to direct or cause the direction of management or policies of a person, whether through the ownership of securities or partnership or other interests, by contract or otherwise.  Notwithstanding anything herein to the contrary, nothing in this Lock-Up Agreement shall prohibit Montpelier Re Holdings Ltd. from selling to the Company the 51,000 Common Shares issued by the Company in connection with its formation and capitalization.

 

Montpelier agrees that the Company may, and that Montpelier will, (i) with respect to any Common Shares or other Company securities for which the undersigned is the record holder, cause the transfer agent for the Company to note stop transfer instructions with respect to such securities on the transfer books and records of the Company and (ii) with respect to any Common Shares or other Company securities for which Montpelier is the beneficial holder but not the record holder, cause the record holder of such securities to cause the transfer agent for the Company to note stop transfer instructions with respect to such securities on the transfer books and records of the Company.

 

Montpelier hereby agrees that, to the extent that the terms of this Lock-Up Agreement conflict with or are in any way inconsistent with any registration rights agreement, including the Shareholder and Registration Rights Agreement (as defined in the Underwriting Agreement), to which Montpelier and the Company may be a party, this Lock-Up Agreement supersedes such registration rights agreement.

 

Montpelier hereby represents and warrants that it has full power and authority to enter into this Lock-Up Agreement.  Any obligations of Montpelier shall be binding upon the successors and assigns of Montpelier.

 

Notwithstanding anything herein to the contrary, if the closing of the Public Offering has not occurred prior to March 31, 2014, this agreement shall be of no further force or effect.

 

2

 

	
 
    	
Montpelier Reinsurance Ltd.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ CHRISTOPHER L. HARRIS
    
	
 
    	
Name:
    	
Christopher L. Harris
    
	
 
    	
Title:
    	
Chairman, Director and Chief Executive Officer
    

 

[Signature Page to Montpelier Lock-Up Agreement]

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