Document:

Exhibit 10.2

Exhibit 10.2

RUSH ENTERPRISES, INC.

AMENDED AND RESTATED

2006 NON-EMPLOYEE DIRECTOR STOCK PLAN

(as amended May 18, 2010)

1. Purpose. This Rush Enterprises, Inc. Amended and Restated 2006 Non-Employee Director Stock
Plan (the “Plan”) sponsored by Rush Enterprises, Inc., a Texas corporation (the “Company”), is
adopted for the benefit of the directors of the Company who at the time of their service are not
employees of the Company or any of its subsidiaries (“Non-Employee Directors”), and is intended to
advance the interests of the Company by providing the Non-Employee Directors with additional
incentive to serve the Company by increasing their proprietary interest in the success of the
Company.

2. Administration. The Plan shall be administered by the Board of Directors of the Company
(the “Board”) or a committee of the Board which shall consist solely of two or more directors
appointed by the Board who are not employees of the Company (the Board acting in such capacity or
such committee being referred to as the “Committee”). For the purposes of the Plan, a majority of
the members of the Committee shall constitute a quorum for the transaction of business, and the
vote of a majority of those members present at any meeting shall decide any question brought before
that meeting. In addition, the Committee may take any action otherwise proper under the Plan by
the affirmative vote, taken without a meeting, of a majority of its members. No member of the
Committee shall be liable for any act or omission of any other member of the Committee or for any
act or omission on his own part, including but not limited to the exercise of any power or
discretion given to him under the Plan, except those resulting from his own gross negligence or
willful misconduct. Except as otherwise expressly provided for herein, all questions of
interpretation and application of the Plan, or as to an option (“Option”) or stock award (“Stock
Award”) granted hereunder (an “Option” and “Stock Award” sometimes hereinafter referred to as an
“Award” or collectively as “Awards”), shall be subject to the determination, which shall be final
and binding, of a majority of the whole Committee. The Committee may not amend or replace
outstanding Options in a transaction that constitutes a repricing without the approval of the
shareholders of the Company. For these purposes, a cancellation, exchange or other modification to
an outstanding Option that occurs in connection with a merger, acquisition, spin-off or other
corporate transaction, including under Section 12 will not be deemed a repricing.

3. Shares Available for Awards.

(a) Aggregate Number of Shares Available for Awards. The aggregate number of shares of
the Company’s Class A Common Stock, $.01 par value (or such other par value as may be
designated by act of the Company’s shareholders) (the “Common Stock”), with respect to which
Options or Stock Awards may be granted under the Plan shall not exceed 500,000 shares (as
adjusted pursuant to the 3-for-2 stock split effected by the Company on October 10, 2007);
provided, that the class and aggregate number of shares which may be subject to such Options
or Stock Awards granted hereunder shall be subject to adjustment in accordance with the
provisions of Section 8 hereof. Such shares may be treasury shares or authorized but
unissued shares.

 

 

 

(b) Expired, Terminated or Forfeited Shares. In the event that any outstanding Option
or Stock Award for any reason shall expire, terminate, or be forfeited by reason of (i) the
death of a Non-Employee Director, (ii) the fact that the Non-Employee Director ceases to be
a director, (iii) the surrender of any such Award, or (iv) any other cause, the shares of
Common Stock allocable to the unexercised or unvested portion of such Option or Stock Award
may again be subject to an Award under the Plan.

4. Options.

(a) Grant of Options. Subject to the terms and provisions of the Plan, the Committee,
at any time and from time to time, may grant Options to a Non-Employee Director in such
amounts as the Committee shall determine, in its sole and absolute discretion.

(b) Exercise Price of Options. The exercise price per share of Common Stock covered by
an Option granted pursuant to the Plan shall be not less than 100% of the fair market value,
as defined in paragraph (e) of this Section 4, of a share of Common Stock on the date such
Option is granted.

(c) Duration of Options. Each Option granted under the Plan shall be exercisable for a
term of ten years from the date of grant, subject to earlier termination as provided in
paragraph (g) of this Section 4.

(d) Amount Exercisable. Each Option granted pursuant to the Plan shall be fully
exercisable on the date of grant.

(e) Exercise of Options. Payment of the purchase price of the shares of Common Stock
subject to an Option granted hereunder may be made (i) in cash or cash equivalents
(including certified check or bank check payable to the order of the Company), (ii) by
tendering previously acquired shares of Common Stock (either actually or by attestation,
valued at their then “fair market value”), (iii) in shares of Common Stock withheld by the
Company from the shares of Common Stock otherwise issuable to the optionee as a result of
the exercise of the Option, or (iv) by any combination of any the foregoing. Subject to the
terms and conditions of this Plan, an Option may be exercised by written notice to the
Company at its principal office, attention of the Secretary. Such notice shall (i) state
the election to exercise such Option, the number of shares in respect of which it is being
exercised and the manner of payment for such shares and (ii) be signed by the person or
persons so exercising such Option and, in the event such Option is being exercised pursuant
to paragraph (f) of this Section 4 by any person or persons other than the optionee,
accompanied by appropriate proof of the right of such person or persons to exercise such
Option. If payment of the purchase price of the shares is being paid in cash or by
tendering previously acquired shares of Common Stock, such notice shall be accompanied by
payment of the full purchase price of such shares. All cash and Common Stock payments
shall, in either case, be delivered to the Company at its principal office, attention of the
Secretary. All shares issued as provided herein will be fully paid and nonassessable.

 

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For purposes of this paragraph (e), the “fair market value” of a share of Common Stock as of
any particular date shall mean:

(i) if the respective shares of Common Stock are listed on any established
stock exchange or a national market system, including without limitation, the NASDAQ ® Global Select Market,
NASDAQ ® Global Market or NASDAQ ® Capital Market, the
fair market value will be the closing sales price of such respective shares (or the
closing bid, if no sales were reported) as quoted on such system or exchange (or the
exchange or system with the greatest volume of trading in the respective Shares) on
the date of determination (or, if no closing sales price or closing bid was reported
on that date, as applicable, on the last trading date such closing sales price or
closing bid was reported), as reported in The Wall Street Journal or such other
source as the Committee deems reliable; or

(ii) if the respective shares of Common Stock are regularly quoted on an
automated quotation system (including the OTC Bulletin Board) or by a recognized
securities dealer, but selling prices are not reported, the fair market value of
such respective shares will be the mean between the high bid and high asked prices
for such shares on the date of determination (or, if no such prices were reported on
that date, on the last date such prices were reported), as reported in The Wall
Street Journal or such other source as the Committee deems reliable; or

(iii) in the absence of an established market for such respective shares of
Common Stock of the type described in (i) and (ii), above, the fair market value
thereof will be determined by the Committee in good faith.

(f) Transferability of Options. Options shall not be transferable by the optionee
other than by will or under the laws of descent and distribution, and shall be exercisable,
during his lifetime, only by the optionee.

(g) Termination. Except as may be otherwise expressly provided herein, each Option, to
the extent it shall not previously have been exercised, shall terminate on the earliest of
the following:

(i) On the last day of the thirty-day period commencing on the date on which
the optionee ceases to be a member of the Board, for any reason other than the death
or permanent disability of the optionee or his resignation after five years of
service;

(ii) On the last day of the one-year period commencing on the date on which the
optionee ceases to be a member of the Board because of permanent disability;

(iii) On the last day of the one-year period commencing on the date of the
optionee’s death while serving as a member of the Board (during which period the
executor or administrator of the optionee’s estate or the person or persons to
whom the optionee’s Option shall have been transferred by will or the laws of
descent or distribution, shall be entitled to exercise the Option in respect of the
number of shares that the optionee would have been entitled to purchase had the
optionee exercised the Option on the date of his death);

 

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(iv) On the last day of the one-year period commencing on the date an optionee
who has had at least five years of service on the Board resigns from the Board; and

(v) Ten years after the date of grant of such Option.

Unless otherwise specifically provided in an Award agreement, for purposes of this paragraph
(g), “permanent disability” means permanent and total disability within the meaning of section
22(e)(3) of the Internal Revenue Code of 1986, as amended.

(h) No Rights as Shareholder. No optionee shall have rights as a shareholder with
respect to shares of Common Stock covered by an Option until shares are issued to the
optionee upon the exercise of such Option; and, except as otherwise provided in Section 8
hereof, no adjustment for dividends, or otherwise, shall be made if the record date therefor
is prior to the date of issuance of such shares.

5. Stock Awards.

(a) Grant of a Stock Award. Subject to the terms and provisions of the Plan, the
Committee, at any time and from time to time, may grant a Stock Award in the form of an
outright grant of shares of Common Stock or in the form of restricted stock (“Restricted
Stock Awards”) to a Non-Employee Director in such amounts as the Committee shall determine,
in its sole and absolute discretion.

(b) Award Restrictions. The Committee may impose such terms, conditions, and/or
restrictions as the Committee deems appropriate on any Restricted Stock Award. Such terms,
conditions, and/or restrictions may include, but not be limited to, the requirement that a
Non-Employee Director pay a purchase price for each share of Common Stock subject to the
Award, restrictions on transferability, requirements regarding continued service as a member
of the Board or other time-based restrictions, or the achievement of individual performance
goals or attainment of pre-established performance targets. The period of vesting and the
lapsing of any applicable forfeiture restrictions shall be established by the Committee at
the time of grant.

(c) Transferability. Except as may otherwise be provided by the Committee or the terms
of any Restricted Stock Award agreement, shares subject to a Restricted Stock Award shall
generally not be transferable until all forfeiture restrictions applicable to such
Restricted Stock Award have lapsed or, in the sole and absolute discretion of the Committee,
cancelled. Once the forfeiture restrictions have lapsed or been cancelled, the shares of
Common Stock that were subject to the Restricted Stock Award shall, subject to any
restrictions under applicable securities laws, become freely transferable. Any Restricted
Stock Award granted under the Plan may be evidenced in such manner as the Committee deems
appropriate, including, without limitation, book entry registration or
issuance of a stock certificate or certificates. The Company may retain the
certificates, if any, representing the shares of Common Stock that are subject to a
Restricted Stock Award in the Company’s possession until such time as all conditions and/or
restrictions applicable to such shares of Common Stock have been satisfied.

 

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(d) Rights as Shareholders. During the period in which any restricted shares of Common
Stock are subject to forfeiture restrictions imposed under paragraph (b) of this Section 5,
the Committee may, in its sole discretion, grant to the Non-Employee Director to whom such
restricted shares have been awarded, all or any of the rights of a shareholder with respect
to such shares, including, but not limited to, the right to vote such shares and to receive
dividends.

6. Written Agreement. Each Option or Stock Award granted hereunder shall be, to the extent
necessary, embodied in a written Award agreement, which shall be subject to the terms and
conditions of this Plan, as applicable, and shall be signed by the Non-Employee Director and by the
appropriate officer of the Company for and in the name and on behalf of the Company. Such an Award
agreement shall contain the specific terms applicable to the Non-Employee Director’s Award and
shall contain such other provisions as the Committee in its sole discretion shall deem advisable.

7. Requirements of Law. The Company shall not be required to sell or issue any shares under
any Option or Stock Award if the issuance of such shares shall constitute a violation by the
Non-Employee Director or the Company of any provisions of any law or regulation of any governmental
authority. Each Option and Stock Award granted under the Plan shall be subject to the requirement
that, if at any time the Board or the Committee shall determine that the listing, registration or
qualification of the shares subject thereto upon any securities exchange or under any state or
federal law of the United States or of any other country or governmental subdivision thereof, or
the consent or approval of any governmental regulatory body, or investment or other
representations, are necessary or desirable in connection with the issue or purchase of shares
subject thereto, no such Option or Stock Award may be exercised in whole or in part unless such
listing, registration, qualification, consent, approval or representation shall have been effected
or obtained free of any conditions not acceptable to the Board. If required at any time by the
Board or the Committee, an Option may not be exercised and any restrictions applicable to a Stock
Award shall not lapse until the Non-Employee Director has delivered an investment letter to the
Company. In addition, specifically in connection with the Securities Act of 1933 (as now in effect
or hereafter amended), upon exercise of any Option, or the lapsing of any restrictions applicable
to a Stock Award, the Company shall not be required to issue the underlying shares unless the
Committee has received evidence satisfactory to it to the effect that the holder of such Award will
not transfer such shares except pursuant to a registration statement in effect under such Act or
unless an opinion of counsel satisfactory to the Company has been received by the Committee to the
effect that such registration is not required. Any determination in this regard by the Committee
shall be final, binding and conclusive. In the event the shares issuable on exercise of an Option
or Stock Award are not registered under the Securities Act of 1933, the Company may imprint on the
certificate for such shares the following legend or any other legend which counsel for the Company
considers necessary or advisable to comply with the Securities Act of 1933:

 

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The shares of stock represented by this certificate have not been registered under
the Securities Act of 1933 or under the securities laws of any state and may not be
sold or transferred except upon such registration or upon receipt by Rush
Enterprises, Inc., a Texas corporation (the “Corporation”) of an opinion of counsel
satisfactory, in form and substance, to the Corporation that registration is not
required for such sale or transfer.

The Company may, but shall in no event be obligated to, register any securities covered hereby
pursuant to the Securities Act of 1933 (as now in effect or as hereafter amended) and, in the event
any shares are so registered, the Company may remove any legend on certificates representing such
shares. The Company shall not be obligated to take any other affirmative action in order to cause
the exercise of an Option or the issuance of shares pursuant thereto, or pursuant to the terms of a
Stock Award to comply with any law or regulation of any governmental authority.

8. Changes in the Company’s Capital Structure. In the event of any stock dividends, stock
splits, recapitalizations, combinations, exchanges of shares, mergers, consolidation, liquidations,
split-ups, split-offs, spin-offs, or other similar changes in capitalization, or any distribution
to shareholders, including a rights offering, other than regular cash dividends, changes in the
outstanding stock of the Company by reason of any increase or decrease in the number of issued
shares of Common Stock resulting from a split-up or consolidation of shares or any similar capital
adjustment or the payment of any stock dividend, any share repurchase at a price in excess of the
market price of the Common Stock at the time such repurchase is announced or other increase or
decrease in the number of such shares, the Committee shall make appropriate adjustment (a) in the
aggregate number and kind of shares authorized by the Plan and (b) in the number, kind and price,
as applicable, of any outstanding Awards granted under the Plan (or, if deemed appropriate, the
Committee may, where applicable, make provision for a payment of cash or property to the holder in
cancellation of an outstanding Award with respect to which Common Stock has not been previously
issued); provided, however, that no such adjustment shall increase the aggregate value of any
outstanding Option or Stock Award.

In the event of any adjustment in the number of shares covered by any Award, any fractional
shares resulting from such adjustment shall be disregarded and each such Award shall cover only the
number of full shares resulting from such adjustment.

9. Amendment or Termination of Plan. The Board may at any time and from time to time modify,
revise or amend the Plan in such respects as the Board may deem advisable in order that Options or
Stock Awards granted hereunder may conform to any changes in the law or in any other respect that
the Board may deem to be in the best interests of the Company; provided, however, that without
approval by the shareholders of the Company, no such amendment shall make any change in the Plan
for which shareholder approval is required in order to comply with any rules for listed companies
promulgated by any national securities exchange on which the Common Stock is traded or any other
applicable rule or law. All Options and Stock Awards granted under the Plan shall be subject to
the terms and provisions of the Plan and, except as otherwise provided in the Plan, any amendment,
modification or revision of the Plan shall be deemed to amend, modify or revise all Options and
Stock Awards outstanding under the Plan at the time of the amendment, modification or revision. The Board may terminate the Plan at any
time. The rights of any Non-Employee Director with respect to any Award granted under the Plan
that is outstanding at the time of the termination of the Plan shall not be affected solely by
reason of the termination of the Plan and shall continue in accordance with the terms of the Award
and of the Plan.

 

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10. Indemnification of Committee. The Company shall indemnify each present and future member
of the Committee against any action, suit or proceeding in which he may be involved by reason of
his being or having been a member of the Committee. Each member of the Committee shall be
entitled, without further act on his part, to indemnity from the Company for all expenses
(including the amount of judgments and the amount of approved settlements made with a view to the
curtailment of costs of litigation, other than amounts paid to the Company itself) reasonably
incurred by him in connection with or arising out of any action, suit or proceeding in which he may
be involved by reason of his being or having been a member of the Committee, whether or not he
continues to be such member of the Committee at the time of incurring such expenses. Such
indemnity, however, shall not include any expenses incurred by any such member of the Committee (i)
in respect of matters as to which he shall be finally adjudged in any such action, suit or
proceeding to have been guilty of gross negligence or willful misconduct in the performance of his
duty as such member of the Committee, or (ii) in respect of any matter in which any settlement is
effected, to an amount in excess of the amount approved by the Company on the advice of its legal
counsel. No right of indemnification under the provisions set forth herein shall be available to
or enforceable by any such member of the Committee unless, within sixty (60) days after institution
of any such action, suit or proceeding, he shall have offered the Company, in writing, the
opportunity to handle and defend same at its own expense. The foregoing right of indemnification
shall inure to the benefit of the heirs, executors or administrators of each such member of the
Committee and shall be in addition to all other rights to which such member of the Committee may be
entitled to as a matter of law, contract, or otherwise. Nothing in this Section 10 shall be
construed to limit or otherwise affect any right to indemnification, or payment of expense, or any
provisions limiting the liability of any officer or director of the Company or any member of the
Committee, provided by law, the Articles of Incorporation of the Company or otherwise.

11. Effective Date of Plan. The Plan as amended and restated shall become effective upon its
approval by the shareholders of the Company.

 

7sillenger8kex101052110.htm

CONSULTING AGREEMENT BY AND BETWEEN

SILLENGER EXPLORATION CORP AND ALLAN P. JUHAS

 

 

This Consulting Agreement (“Agreement”) is between Sillenger Exploration, Inc. (“SILLENGER”), and Allan P. Juhas having a place of business as set forth below (“Contractor”).  This Agreement is effective as of May 07, 2010 (the “Effective Date”).

 

 

WHEREAS, SILLENGER and Contractor desire to create a consulting relationship in connection with certain services to be provided by Contractor to SILLENGER, as described below.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties intending to be legally bound, agree as follows:

 

 

1.       Work and Compensation.  Contractor agrees to perform the work set forth in Exhibit A (“Statement of Work”) and to provide any work product resulting therefrom to SILLENGER.  Contractor will be paid compensation in the amount and at the times set forth in Exhibit B, subject to timely submission of any deliverables in accordance with the schedule in the applicable Statement of Work.  Unless other terms are set forth in Exhibit B, SILLENGER will pay Contractor for services within fifteen (15) days of the date of receipt of Contractor’s detailed invoice.  Contractor will provide SILLENGER with reasonable documentation and work description in connection with Contractor’s invoices, as requested by SILLENGER.

 

 

2.       Term.

 

 

2.1       Completion of Services. This Agreement will become effective on the Effective Date and will continue in effect until completion of the Statement of Work as set forth in Exhibit A or any subsequent Statements of Work as set forth in Section 2.2, unless terminated earlier as set forth in Section 7.1.

 

 

2.2       Subsequent Statements of Work.  Contractor and SILLENGER may from time to time execute subsequent Statements of Work in the form of Exhibit D, each of which will be deemed to be part of this Agreement upon the earlier of (a) the date of mutual execution of the subsequent Statement of Work or (b) the date when Contractor commences any work described on a subsequent Statement of Work that has been duly executed by SILLENGER.  To the extent any terms set forth on any subsequent Statement of Work conflict with the terms of this Agreement, the terms on the Statement of Work will prevail, but only with respect to the subject work described therein.

 

 

3.       Responsibilities. Contractor will perform and promptly complete the Statement of Work set forth in Exhibit A in a professional and timely manner consistent with industry standards at a location, place and time that Contractor deems appropriate.  Contractor, in his sole discretion, will determine the manner, method, details and means of performing work under a Statement of Work.  Except as otherwise indicated on Exhibit B attached hereto, Contractor will provide its own basic tools, but other materials, including communications equipment will be paid for by SILLENGER in performing work under the Statement of Work.

 

 

  

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3.1       Acceptance or Rejection of Work.  Although much of the work that the Contractor will perform, will include providing geological information to subcontractors, drilling staff, potential strategic partners and liaison work with various geological and extraction firms employed by SILLENGER, it is also possible that Contractor’s work will be submitted to SILLENGER in written form.  Contractor acknowledges that if unaccepted portions of the work product contains any Confidential Information or SILLENGER Materials, then SILLENGER will retain sole and exclusive ownership of such property, and Contractor will either return the unaccepted work product to SILLENGER or provide SILLENGER with satisfactory evidence that the unaccepted work product has been destroyed.

 

 

3.2       Modification of Work Product.  If SILLENGER requires a change to the work product, for instance because it desires to modify the scope of Contractor’s mining or geological report or because it requires additional information, it will notify Contractor of the requested change and the due date as agreed to by the parties for resubmitting the revised work product.  SILLENGER may accept or reject all or part of the corrected work product at its sole discretion.  SILLENGER will have no obligation to return any accepted work product to Contractor.

 

 

4.       Ownership of Property.

 

 

4.1       Works Assigned to SILLENGER.  Contractor will promptly make full disclosure to SILLENGER, will provide and deliver to SILLENGER, will hold in trust for the sole right and benefit of SILLENGER, and will assign, and does hereby assign, to SILLENGER all Contractor’s right, title and interest in and to any and all inventions, original works of authorship, developments, designs, improvements, trade secrets and other work product related to any Statements of Work, including tangible embodiments thereof, which Contractor may solely or jointly conceive, develop, make or reduce to practice, at any time during the term of this Agreement, together with all patent, copyright, trademark and other rights, including tangible embodiments thereof, that Contractor has or may acquire in all countries arising in performance of any Statement of Work (collectively, the “Works”).

4.2     Intellectual Property Rights Registration. Although the nature of the services Contractor will be performing are not generally of the sort that product intellectual property rights, it is conceivable that the services rendered by Contractor will produce innovations within the field of mineral extraction, including processes, methods of extraction and terminology and brand names associated with these processes and methods, which could also include software designs or algorithms which improve the efficiency of mineral extraction.  Some of these processes or methods may be patentable or otherwise protectable.   Contractor agrees to assist SILLENGER in every lawful way to obtain, prepare and prosecute applications for letters patent, trademark, mask work and copyright registrations covering the Works assigned hereunder to SILLENGER, in order to perfect SILLENGER’s title to the Works, and to protect and enforce SILLENGER’s rights in the Works in the U.S. or foreign countries, including promptly executing additional separate assignment(s) for any of the Works, whenever requested by SILLENGER.  Such obligations will continue beyond the completion of the Statement of Work and beyond the termination of this Agreement, but SILLENGER will compensate Contractor at a reasonable rate for time actually spent by Contractor at SILLENGER’s request on such assistance after such termination.  If SILLENGER is unable for any reason to secure Contractor’s signature to apply for or to pursue any application for any U.S. or foreign letters patent, trademark, mask work or copyright registrations covering Work assigned to SILLENGER, then Contractor hereby irrevocably designates and appoints SILLENGER and its duly authorized officers and agents as Contractor’s agent and attorney-in-fact, to act for and in Contractor’s behalf and stead to execute and file any such application and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent, trademark, copyright or mask work registrations with the same legal force and effect as if executed by Contractor.

 

 

  

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4.3       Other Rights.  If Contractor has any rights to any Works that cannot be assigned to SILLENGER, Contractor unconditionally and irrevocably waives the enforcement of such rights, and all claims and causes of action of any kind against SILLENGER with respect to such rights, and agrees, at SILLENGER’s request and expense, to consent to and join in any action to enforce such rights.  If Contractor has any right to any Works that cannot be assigned to SILLENGER or waived by Contractor, Contractor unconditionally grants to SILLENGER during the term of such rights, an exclusive, irrevocable, perpetual, worldwide, fully paid and royalty-free license, with rights to sublicense through multiple levels of sublicensees, to reproduce, create derivative works of, distribute, publicly perform and publicly display by all means now known or later developed, such rights and tangible embodiments thereof.

 

 

4.4       Exceptions to Assignments.  Contractor understands that the provisions of this Agreement requiring assignment to SILLENGER do not apply to any invention as to which Contractor can prove the following:  (a) no equipment, supplies, facility or trade secret of SILLENGER was used in its development and (b) it does not relate to the Statement of Work or to SILLENGER’s actual or demonstrably anticipated research and development, and does not result from any work performed by Contractor for SILLENGER.  Contractor will advise SILLENGER promptly in writing of the existence and general nature of (but not any confidential subject matter of) any inventions that Contractor believes meet the criteria in this Section 4.4, and if so requested, the subject matter of the invention and all evidence necessary to substantiate such belief.

5.       Representations and Warranties.  Contractor hereby represents and warrants with respect to each Work and to the services Contractor provides hereunder that Contractor is a qualified, trained geologist, skilled in the type of services provided under this Agreement.  Any Works or other reports produced under this Agreement are prepared in a manner consistent with industry best practices throughout the field of mineral exploration.  SILLENGER relies on, and Contractor represents that SILLENGER can rely on Contractor’s expertise in the field of Geology generally and mineral exploration in particular.  It is the understanding of SILLENGER that Contractor will personally perform the services required under this Agreement.  However, If Contractor uses third parties to create any products or to perform any services related to the Work, then Contractor represents and warrants that Contractor has (I) obtained all of the necessary rights to the Work from all such third parties to the same extent as warranted above and (II) caused such third parties to enter into confidentiality agreements that contain the same language as contained in this Agreement with respect to protecting SILLENGER’s Confidential Information.

 

 

  

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6.       Indemnification.  Contractor will indemnify and hold harmless SILLENGER, its parents, stockholders, officers, directors, employees, sub-licensees, customers and agents (collectively the “Indemnified Parties”) from any and all claims, losses, liabilities, damages, expenses and costs (including attorneys’ fees and court costs) that result from Contractor’s gross negligence or willful breach of any representation or warranty of Contractor (a “Claim”) set forth in Section 5 of this Agreement.  SILLENGER will indemnify and hold harmless Contractor from any and all claims, losses, liabilities, damages, expenses and costs (including attorneys’ fees and court costs) that result from Contractor’s performance of his duties under this Agreement, other than for Contractor’s gross negligence or willful breach of the terms of this Agreement.

 

 

7.       Termination.

7.1       Termination.  This Agreement may be terminated by SILLENGER with or without cause, effective upon delivery of written notice; provided that SILLENGER shall compensate Contractor the compensation Contractor would normally earn with SILLENGER for a sixty (60) day period.  Contractor may terminate this Agreement for any reason on seven (7) days’ written notice to SILLENGER or such longer period as may be specified in the attached exhibits.  In the event that Contractor gives notice of termination during the performance of the Statement of Work, the terms of the Agreement will govern completion, acceptance and payment by SILLENGER for any work product.

7.2       Return of Materials.  Following any notice of termination of this Agreement given pursuant to Section 7.1 or upon expiration of the term of this Agreement, Contractor will fully cooperate with SILLENGER in all matters relating to the winding up of Contractor’s pending work on behalf of SILLENGER and the orderly transfer of any work or documents to SILLENGER.   Contractor agrees that, at the time of terminating Contractor’s engagement with SILLENGER and at any other time SILLENGER requests, Contractor will deliver to SILLENGER any and all devices, materials, software, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, equipment, other documents or property, or reproductions of any aforementioned items (in whole or in part) belonging to SILLENGER, its successors, or assigns, or embodying SILLENGER’s Confidential Information or work product developed under this Agreement (collectively “SILLENGER Materials”).  Contractor may not retain any SILLENGER Materials without the written authorization of an authorized SILLENGER officer, which shall not be unreasonably withheld or delayed.  Contractor may retain copies of his work product for purposes of his own due diligence and to defend himself against any claims or lawsuits.

 

 

7.3       SILLENGER Materials. Contractor agrees it will not use SILLENGER Materials for any purpose other than in performance of the Statement of Work.  Upon termination, Contractor agrees to sign and deliver the “Termination Certification” attached hereto as Exhibit C. Contractor will not, during or after Contractor’s engagement with SILLENGER, deliver or transfer to any person, or use, without written authorization by an authorized SILLENGER officer any SILLENGER Materials or other property owned by SILLENGER.

 

 

  

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8.       Confidential Information.

 

 

8.1       SILLENGER Confidential Information. The term “Confidential Information” will be deemed to include all information obtained by Contractor from SILLENGER or disclosed to Contractor by SILLENGER, or which Contractor learned of or developed during the term of and in connection with Contractor’s engagement, which relates to SILLENGER’s past, present, and future research, product development or business activities or the results of such activities.  In particular, Confidential Information will be deemed to include any trade secret, idea, process, invention, improvement, know-how, information, characters, story lines, prices, technique, algorithm, computer program (source and object codes), database, design, drawing, formula or test data, relating to any research project, work in process, future development, engineering, manufacturing, marketing, servicing, financing or personnel matter relating to SILLENGER, its present or future products, sales, suppliers, clients, customers, employees, consultants, investors, licensees, licensors or business, whether in oral, written, graphic or electronic form, as well as any other information that SILLENGER labels or deems Confidential Information.  Confidential Information will not include information that Contractor can demonstrate by written record was previously known to Contractor or publicly disclosed without breach of an obligation of confidentiality, either prior or subsequent to Contractor’s receipt of such information.

 

 

           8.2       Promise Not to Disclose. Contractor agrees, at all times during the term of this Agreement and thereafter, to hold in strictest confidence, and not to use or disclose to any person, firm or corporation without written authorization of an authorized officer of SILLENGER, any Confidential Information, except such use and disclosure as is necessary in carrying out Contractor’s work for SILLENGER and authorized in writing by SILLENGER, which shall not be unreasonably withheld or delayed.  Contractor does not hereby receive any implied or granted rights or licenses to trademarks, inventions, copyrights or patents of SILLENGER or any third parties.  All Confidential Information (including all copies thereof) will at all times remain the property of SILLENGER and will be returned to SILLENGER after the Contractor’s need for it has expired, or upon request by SILLENGER.

 

 

8.3       Former and Current Client Information. Contractor agrees that Contractor will not, during Contractor’s engagement with SILLENGER, improperly use or disclose any proprietary information or trade secrets of third parties, such as Contractor’s other employers, clients or companies through which Contractor has access to such information, if any.  Contractor will not bring onto the premises of SILLENGER or use in the performance of the Statement of Work, any unpublished documents or any property belonging to third parties, such as Contractor’s former employers, clients or customers, if any, unless consented to in writing by such party and such consents are submitted to SILLENGER.

 

 

  

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8.4       Third Party Information.  Contractor recognizes that SILLENGER may have received and in the future may receive from third parties their confidential or proprietary information subject to certain duties on SILLENGER’s part to maintain the confidentiality of such information and to use it only for certain limited purposes.  Contractor agrees that Contractor owes SILLENGER and such third parties, during the term of Contractor’s engagement and thereafter, whatever duty exists between SILLENGER and such third parties to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm, or corporation (except as necessary in carrying out Contractor’s work for SILLENGER consistent with SILLENGER’s agreement with such third party) or to use it for the benefit of anyone other than for SILLENGER or such third party (consistent with SILLENGER’s agreement with such third party) without written authorization of an authorized officer of SILLENGER.

9.           Assignment.  The rights and obligations of Contractor may be assigned upon written notice to SILLENGER thereof, provided that, in SILLENGER’s sole discretion and judgment, such an assignee is acceptable to SILLENGER.  The rights and obligations of SILLENGER under this Agreement will inure to the benefit of and will be binding upon the successors and assignees of SILLENGER.

10.     Conflicting Work.  Contractor agrees that, during the term of this Agreement, Contractor will not engage in any other work, consulting, or other business activity that would create a conflict of interest with Contractor’s obligations to SILLENGER under this Agreement with SILLENGER.

 

 

11.     Independent Contractor Relationship. CONTRACTOR’s relationship with SILLENGER will be that of an independent contractor and nothing in this Agreement should be construed to create a partnership, joint venture, or employer-employee relationship.  Contractor is not the agent of SILLENGER and is not authorized to make any representation, contract, or commitment on behalf of SILLENGER.  If Contractor is an individual, then he or she will not be entitled to any of the benefits which SILLENGER may make available to its employees, including, but not limited to, group insurance, stock option plans, profit-sharing or retirement benefits.  If applicable, SILLENGER will regularly report amounts paid to Contractor by filing Form 1099-MISC with the Internal Revenue Service, as required by law.  Because Contractor is an independent contractor, SILLENGER will not withhold or make payments for social security, make unemployment insurance or disability insurance contributions, or obtain worker’s compensation insurance on Contractor’s behalf.  Contractor will be solely responsible for, and agrees to accept exclusive liability for, complying with all applicable foreign, federal and state laws governing self-employed individuals, including obligations such as payment of taxes, social security, disability and other contributions based on fees paid to Contractor or its agents under this Agreement.  Contractor hereby agrees to indemnify and hold harmless the Indemnified Parties against any and all such taxes or contributions, including penalties and interest.  Notwithstanding the foregoing or anything contrary in this Agreement, Contractor shall have authority to enter into agreements or incur obligations of up to Five Thousand dollars per week on behalf of SILLENGER, provided that such obligations are necessary for the performance of Contractors duties under this Agreement and are properly documented.

 

 

  

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12.     Governing Law. This Agreement will be governed and construed in accordance with the laws of the State of Nevada as applied to transactions taking place wholly within Nevada between Nevada residents.  In the event of a dispute, the parties agree to mediate in good faith before a neutral third party agreeable to both parties prior to instituting any legal action other than injunctive relief, such mediation to take place in the Clark County, Nevada.  Contractor hereby expressly consents to the exclusive personal and subject-matter jurisdiction of the state and federal courts located in the Clark County, Nevada, for any dispute arising from or related to this Agreement.

 

 

13.     Survival. Any respective obligations of Contractor or SILLENGER hereunder which by their nature would continue beyond the termination, cancellation or expiration of this Agreement will survive such termination, cancellation or expiration, including but not limited to the obligations set forth in the following provisions:  Section 4, Section 5, Section 6, Section 7, Section 8, Section 11, Section 12, Section 13, Section 14, Section 16 and Section 18.

 

 

14.     Entire Agreement; Amendment.  This Agreement together with any subsequent Statements of Work hereunder constitutes the entire agreement between the parties regarding the services rendered by Contractor to SILLENGER, and this Agreement supersedes all prior or contemporaneous agreements, commitments, representations, writings, and discussions between SILLENGER and Contractor, whether oral or written.  This Agreement may be amended only by a writing executed by Contractor and an authorized officer of SILLENGER.  Contractor expressly acknowledges that Contractor has read the terms of this Agreement, has had the opportunity to discuss those terms with his or her own legal counsel, and understands that this is a legally binding contract.

 

 

15.     Notices.  Any notice, request, demand or other communication hereunder will be in writing and will be deemed to be duly given (a) upon actual receipt when personally delivered to an officer of SILLENGER or to Contractor, as the case may be, (b) three days after deposit in the U.S. Mail by certified or registered mail, return receipt requested with postage prepaid, or (c) upon actual receipt or two days after being sent by reputable international overnight courier, delivery fees prepaid; in each case addressed to the addresses set forth on the signature page of this Agreement or to such other address as either party may specify by notice to the other as provided in this section.

 

 

  

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16.     Interpretation; Severability.  Section and other headings contained in this Agreement are for reference only and will not affect the meaning or interpretation of this Agreement.  If any provision of this Agreement is considered unclear or ambiguous, it will not be construed against the party that drafted the provision, but instead will be construed to effectuate the intent of both parties as expressed in this Agreement.  Should any valid federal or state law or final determination of any administrative agency or court of competent jurisdiction invalidate or otherwise affect any provision of this Agreement, any provision so affected will be conformed automatically and to the extent possible to the law or determination in question and enforced insofar as possible consistent with the intent of the parties, and in all events the remaining provisions of this Agreement will continue in full force and effect.

 

 

17.     Counterparts. This Agreement may be executed in counterparts, each of which will be deemed to be an original.

 

 

18.     Attorneys’ Fees. If an action is brought to interpret or enforce the terms of this Agreement, the prevailing party will be entitled to recover from the non-prevailing party, in addition to all other remedies at law and equity, all costs and expenses incurred by the prevailing party with respect to such action, including but not limited to attorneys’ fees, costs and disbursements.

In Witness Whereof, the parties hereto have caused this Consulting Agreement to be duly executed as of the date next to their respective signatures.

 

 

 

	SILLENGER Exploration Corp. 	 
	 	 
	 	 
	By: /s/ John Gillespie  	Date: May 21, 2010 
	Name: John Gillespie 	 
	Title: President and Chief Executive Officer 
	 	 
	 	 
	Consultant 	 
	 	 
	 	 
	/s/ Allan P. Juhas 	Date: May 21, 2010 
	Name: Allan P. Juhas 	 
	Title: Contractor 	 

 

 

 

 

  

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Address for Notices:

 

 

	SILLENGER 	CONTRACTOR 
	 	 
	Sillenger Exploration Corp.  	Allan P. Juhas 
	7839 17th Avenue 	4221 South Yukon Way 
	Burnaby, British Columbia V3N 1M1 	Lakewood, Colorado 80235 
	Phone:  (310) 860-5686 	USA 
	Attention:  President & CEO  	Telephone: 303-985-5722 
	 	 
	 	 
	 	 

 

 

Attachments:

Exhibit A—Statement of Work and Project Schedule

Exhibit B—Payment Schedule

Exhibit C—Contractor Termination Certification

Exhibit D—Form of Subsequent Statement of Work

  

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EXHIBIT A

STATEMENT OF WORK AND PROJECT SCHEDULE

1.  Title of Project: Director of Exploration.

2.  Scope of Work:  For the purpose of this Statement of Work, “Project” means that during the course of the assignment, as Director of Exploration, Contractor will be responsible for creating and performing the following deliverables and services pursuant to the schedules and conditions herein described:

a.  Scheduling, agenda, research, protocols, procedures and facilitation for exploration, staffing, drilling, security, mining liaison work and other full-time geological activities.

b.  Develop interim detailed drilling plans and complete geological exploration plans based on the above.

c.  Coordination with trademark, patent counsel and corporate counsel regarding all elements of intellectual property protection strategy with respect to any innovations that come from the work.

d.  Supervision of all geological and exploration work across all of SILLENGER’s mineral properties.

e.  A complete geological and drilling strategy in terms of the development of SILLENGER controlled properties.

3.  Services to be Provided:  Contractor will be responsible for completing the Project and providing all services necessary to accomplish the above goals, including:

a.  Continue to support SILLENGER’s public relations, environmental compliance and partnership relationships.

b.  All fees and costs associated with any professional training or licensure requirements of Contractor in order to perform the work.

c.  Methodology for conducting appropriate geological work.  This includes:

i.  All geological survey work and other determinations completed to the standards of the profession;

ii. use best efforts to be in regular contact and as needed office visits with SILLENGER personnel to support exploration and joint-venture efforts.

 

 

  

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iii.  any research assistance or meetings needed to be attended anywhere in the world required to carry out the goals of the project(s).

iv. any consultations with geological experts necessary to accomplish the project goals.

Project Dates: ________________________

Project start date:  _____________________

Project completion date:  ________________

Deliverables and Due Dates:  Services will begin on _________ and will be ongoing through ____________.

  

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EXHIBIT B

COMPENSATION

AMOUNT AND PAYMENT SCHEDULE

Payment will be due by SILLENGER to Contractor in the amounts of $1000.00 USD per day for a minimum of $4000.00 USD per month of services rendered to SILLENGER for geological consulting services rendered during the term of this Agreement.  Consultant shall provide SILLENGER with a detailed bill each month.

SILLENGER shall advance Consultant funds to cover costs and expenses incurred in connection with the performance of his duties under this Agreement.  Expenses shall be paid at cost and Contractor shall provide SILLENGER with all documentation and receipts for expenses or costs as available.

Contractor shall also be entitled to a stock bonus to be agreed to by the parties and pursuant to a separate compensation agreement.

 

 

  

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EXHIBIT C

CONTRACTOR TERMINATION CERTIFICATION

Any provision of this Agreement to the contrary notwithstanding, SILLENGER may terminate Contractor at any time or Contractor may quit at any time.  In the event of termination, any unearned cash or stock compensation will be forfeited by Contractor.  In the event of a termination where Contractor has been paid stock bonuses in advance under this Agreement or any other agreement, Contractor agrees to return the unearned shares immediately or compensate SILLENGER for the fair market value of the shares in cash as of the date of termination.

 

 

  

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EXHIBIT D

FORM OF SUBSEQUENT STATEMENT OF WORK

1.  Title of Project: Geological Consulting services.

2.  Scope of Work:

3.  Services to be Provided:

Project Dates: ________________________

Project start date:  _____________________

Project completion date:  ________________

 

 

 

  

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