Document:

trunityexh108.htm

 Exhibit 10.8

 

 

DIRECTORS’ AND OFFICERS’ INDEMNIFICATION AGREEMENT

THIS AGREEMENT made as of this _____ day of ________, 2013.

B E T W E E N:

TRUNITY HOLDINGS, INC.

A body corporate incorporated

under the laws of the State of Delaware

(hereinafter called the “Corporation” or the “Indemnifying Party”)

- and –

_________________________, of the _______________________,

in the ___________________________

(hereinafter called the “Indemnified Party”)

WHEREAS:

	
(a)

	
The Indemnified Party is agreeing to serve as, or to continue to serve as, a director or officer of the Corporation;

	
(b)

	
The Corporation wishes to indemnify the Indemnified Party (to the fullest extent permitted by law) from losses, costs or damages incurred or sustained by the Indemnified Party acting in the capacity of director or officer of the Corporation; and

	
(c)

	
The Indemnified Party is willing to serve or continue to serve the Corporation on the condition that he or she be indemnified to the fullest extent permitted by law.

NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency whereof is mutually acknowledged, the Indemnified Party and the Corporation (hereinafter called the “Parties”) covenant and agree as follows:

	
1.  

	
Indemnity

 

	
(a)  

	
Within 30 days after written demand is presented to the Corporation, the Corporation shall indemnify and save harmless the Indemnified Party and his or her heirs and legal representatives against all costs, charges and expenses, including (a) an amount paid to settle an action or satisfy a judgment (including, without limitation, any penalties or fines levied), (b) any interest payable by the Indemnified Party thereon and (c) all damages, whether punitive, exemplary or otherwise, reasonably incurred by the Indemnified Party in respect of any civil, criminal or administrative action or proceeding to which the Indemnified Party is made a party by reason of being or having been a director or trustee or fiduciary or officer of the Corporation or for action taken by or for on behalf of the Corporation (together with Expenses (as hereinafter defined), the “Indemnified Liabilities”) if:

 

  

  

  

 

	
(i)  

	
The Indemnified Party acted honestly and in good faith and in a manner the Indemnified Party reasonably believed to be in or not opposed to the best interests of the Corporation; and

 

	
(ii)  

	
In the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, the Indemnified Party had reasonable grounds for believing that his conduct was lawful.

 

	
(b)  

	
For the purposes of this Agreement, the termination of any civil, criminal or administrative action or proceeding by judgment, order, settlement or conviction (whether with or without court approval) shall not, of itself, create a presumption either that the Indemnified Party did not act honestly and in good faith and in a manner the Indemnified Party reasonably believed to be in or not opposed to the best interests of the Corporation as required by the laws governing the Corporation or that, in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, the Indemnified Party did not have reasonable grounds for believing that his or her conduct was lawful.

 

	
(c)  

	
In connection with any determination as to whether the Indemnified Party is entitled to be indemnified under any provision of this Agreement or to receive contribution pursuant to this Agreement, to the extent permitted by law the burden of proof shall be on the Corporation to establish that the Indemnified Party is not so entitled.

 

	
(d)  

	
The Corporation shall indemnify the Indemnified Party if he or she fulfills the conditions contained in (a) and (b) above in the defense of any civil, criminal or administrative action or proceeding which the Indemnified Party is made a party by reason of his or her being or having been a director or officer of the Corporation, against all costs, charges and expenses, including legal and other professional fees on a full indemnification basis and expert witness fees (“Expenses”), actually and reasonably incurred by the Indemnified Party in connection with the defense of such action or proceeding within ten business days after written demand reasonably evidencing the Expenses incurred by the Indemnified Party is presented to the Corporation accompanied by an undertaking of the Indemnified Party to repay such amounts if it shall ultimately be determined that the Indemnified Party is not entitled to be indemnified against such Expenses, and the Corporation shall be required to make such payments in advance of the final disposition or conclusion of any claim against the Indemnified Party.

 

  

  

  

 

	
2.  

	
Partial Indemnity

 

If the Indemnified Party is entitled under any provisions of this Agreement to indemnification by the Corporation for some, but not all, of the Indemnified Party’s Indemnified Liabilities, the Corporation shall indemnify the Indemnified Party for the portion thereof to which the Indemnified Party is entitled.

 

	
3.  

	
Contribution

 

	
(a)  

	
Contribution payment.  To the extent the indemnification provided for under any provision of this Agreement is determined (in the manner hereinabove provided) not to be permitted under applicable law, the Corporation, in lieu of indemnifying the Indemnified Party, shall, to the extent permitted by law, contribute to the amount of any and all Indemnified Liabilities incurred or paid by the Indemnified Party for which such indemnification is not permitted.  The amount the Corporation contributes shall be in such proportion as appropriate to reflect the relative fault of the Indemnified Party, on the one hand, and of the Corporation and any and all other parties (including officers and directors of the Corporation other than the Indemnified Party) who may be at fault (collectively, including the Corporation, the “Third Parties”), on the other hand.

 

	
(b)  

	
Relative Fault.  The relative fault of the Third Parties and the Indemnified Party shall be determined by reference to the relative fault of the Indemnified Party as determined by the court or other governmental agency or to the extent such court or other governmental agency does not apportion relative fault, by another party acceptable to the Indemnified Party and the Corporation after giving effect to, among other things, the relative intent, knowledge, access to information, and opportunity to prevent or correct the relevant events, of each party, and other relevant equitable considerations.  The Corporation and the Indemnified Party agree that it would not be just and equitable if contribution were determined by pro rata allocation or by any other method of allocation that does take account of the equitable considerations referred to in this section 3(b).

 

	
4.  

	
Insurance

 

	
(a)  

	
Unless otherwise agreed between the Parties hereto and subject to the limitations contained in the Delaware General Corporation Law, , the Corporation shall purchase and maintain directly for so long as the Indemnified Party remains a director or officer of the Corporation, directors’ and officers’ liability insurance covering the Corporation for the benefit of the Indemnified Party with limits of not less than U.S. _______________ per occurrence. The Corporation shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that the Indemnified Party has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

 

  

  

  

 

	
(b)  

	
At least 60 days prior to the expiry of any such insurance, the Corporation will notify the Indemnified Party in writing whether of not it proposes to renew the insurance and whether or not it has any reason to believe the issuer of the insurance may not be prepared to renew the insurance.  The Corporation shall promptly notify in writing the Indemnified Party if at any time the insurance referred to above is not renewed, cancelled or adversely changed or if the Corporation receives any communication (whether oral or written) from the issuer of the insurance or any agent or other person acting on its behalf that the insurance will or may be cancelled or adversely changed.

 

	
5.  

	
Assignment

 

The Duties and obligations of the Corporation under this Agreement shall be binding upon, and enforceable by the Indemnified Party and the Indemnified Party’s heirs and legal representatives, against the Corporation and its successors and assigns.

 

	
6.  

	
Defense of Claims

 

	
(a)  

	
The Indemnified Party covenants and agrees, that upon becoming aware of any facts of circumstances which may give rise to any potential liability for which the Corporation may be required to indemnify the Indemnified Party pursuant to the provisions of this Agreement (a “Claim”), the Indemnified Party shall immediately deliver written notice to the President of the Corporation setting out in reasonable detail the nature of the facts relating to such Claim including therein or therewith such documentation and information as is reasonably available to the Indemnified Party and is reasonably necessary to determine whether and to what extent the Indemnified Party is entitled to indemnification hereunder; providing that failure to so notify shall not affect the Corporation’s liability under this Agreement if and except only to the extent that such omission materially prejudices the Corporation.

 

	
(b)  

	
Upon written request by the Indemnified Party for indemnification pursuant hereto, a determination, if required by applicable law, with respect to the Indemnfied Party’s entitlement thereto shall be made in the specific case by one of the following four methods, which shall be at the election of the board of directors of the Corporation (the “Board”): (1) by a majority vote of the directors of the Corporation who are not and were not a party to the Claim in respect of which indemnification is sought by the Indemnified Party (the “Disinterested Directors”), even though less than a quorum, (2) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum, (3) if there are no Disinterested Directors or if the Disinterested Directors so direct, by independent counsel (selected by the Board) in a written opinion to the Board, a copy of which shall be delivered to the Indemnified Party, or (4) if so directed by the Board, by the stockholders of the Corporation holding a majority of the outstanding voting stock of the Corporation.

 

  

  

  

 

	
(c)  

	
If any Claim is made or brought against the Indemnified Party in connection with any of the matters against which the Indemnified Party would be indemnified pursuant to this Agreement, upon receipt of the notice of the Claim, the Corporation shall, at its expense and in a timely manner, contest and defend against any such Claim and take all such steps as may be necessary or proper to prevent the resolution thereof in a manner adverse to the Indemnified Party.

 

	
(d)  

	
The Indemnified Party shall fully co-operate with the Corporation in taking all such steps, and hereby consents to the taking of such steps by or on behalf of the Corporation and the Indemnified Party.  If the Corporation does not in a timely manner undertake the contestation or defense of the Claim, the Indemnified Party may do so and such contestation or defense shall be at the expense and risk of the Corporation.

 

	
(e)  

	
If the outcome of any litigation or proceeding establishes that the Indemnified Party was not entitled to have the Claim contested or defended at the risk and expense of the Corporation, the Indemnified Party shall be liable to repay the Corporation all amounts paid by the Corporation in connection with such contestation or defense pursuant to this Section 6.

 

	
7.  

	
Scope of Agreement

 

	
(a)  

	
This Agreement is absolute and unconditional and the obligations of the Indemnifying Party will not be affected, discharged, impaired, mitigated or released by:

 

	
(i)  

	
any extension of time, indulgence or modification which the Indemnified Party may extend or make with any person making any claim against the Indemnified Party; or

 

  

  

  

 

	
(ii)  

	
the discharge or release of the Indemnified Party in any bankruptcy, insolvency, receivership, or other proceedings of creditors.

 

	
(b)  

	
No action or proceeding brought or instituted under this Agreement and no recovery pursuant thereto will be a bar or defense to any further action of proceeding, which may be brought under this Agreement.

 

	
(c)  

	
The rights of the Indemnified Party hereunder will be in addition to any other rights the Indemnified Party may have under the Bylaws or Certificate of Incorporation of the Corporation or the law or otherwise.  To the extent that a change in the law (whether by statute or judicial decision) permits greater indemnification by agreement than would be afforded currently under the Bylaws or Certificate of Incorporation of the Corporation and this Agreement, it is the intent of the parties hereto that the Indemnified Party shall enjoy by this Agreement the greater benefits so afforded by that change.  The Indemnified Party’s rights under this Agreement shall not be diminished by any amendment to the Certificate of Incorporation or Bylaws, or of any other agreement or instrument to which the Indemnified Party is not a party, and shall not diminish any other rights that the Indemnified Party now or in the future has against the Corporation.

 

	
8.  

	
Exception to Right of Indemnification

 

Notwithstanding any provision in this Agreement, the Corporation shall not be obligated under this Agreement to make any indemnity in connection with any claim made against the Indemnified Party:

 

	
(a)  

	
for which payment has actually been made to or on behalf of the Indemnified Party under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision;

 

	
(b)  

	
for an accounting of profits made from the purchase and sale (or sale and purchase) by the Indemnified Party of securities of the Corporation within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of state statutory law or common law; or

 

	
(c)  

	
in connection with any Claim (or any part of any Claim) initiated by the Indemnified Party, including any Claim (or any part of any Claim) initiated by the Indemnified Party against the Corporation or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Claim (or any part of any Claim) prior to its initiation or (ii) the Corporation provides the indemnification, in its sole discretion, pursuant to the powers vested in the Corporation under applicable law.

 

  

  

  

 

	
9.  

	
Severability

 

If any part of this Agreement or the application of such part to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such part to any other or person or circumstance, shall not be affected thereby and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 

	
10.  

	
Choice of Law

 

This Agreement shall be governed and construed in accordance with the laws of the State of Delaware and the parties attorn to the non-exclusive jurisdiction of the courts of the State of Delaware in respect of any court action arising hereunder.

 

	
11.  

	
Miscellaneous

 

The Indemnifying Party and the Indemnified Party agree that they will do all such further acts, deeds and things and execute, deliver all such the documents as may be reasonably necessary or advisable for the purposes of ensuring and confirming unto the Indemnified Party the rights hereby created or intended, and of giving effect to and carrying out the intention or facilitating the performance of the terms of this Agreement.  The Indemnifying Party represents and warrants to the Indemnified Party that this Agreement constitutes a legal, valid and binding obligation of the Indemnifying Party.

 

IN WITNESS WHEREOF the Parties have executed this Agreement to have effect as of the date first above mentioned.

 

	  	
Trunity Holdings, Inc.

	  	  
	  	  
	  	
By:

	  	
Authorized Officer

	  	  
	  	  
	  	
Indemnified Party:

	 	 
	 	 
	 	 
	 	Director and/or OfficerExhibit 10.1

 

SEPARATION AGREEMENT AND RELEASE

 

This Separation Agreement and Release (this “Agreement”) is entered into as of April 2, 2013 between Brian W. Wallace (“Employee”), on the one hand, and Prospect Global Resources Inc., a Nevada corporation, together with each of its successors, subsidiaries, affiliates, directors, officers, shareholders, agents and employees (collectively the “Company”) on the other hand.  Employee and the Company are jointly referred to as the “Parties.”

 

WHEREAS, Employee has been employed by the Company as Executive Vice President and Chief Operating Officer pursuant to the terms of an Employment Agreement dated as of June 13, 2012 (the “Employment Agreement”);

 

WHEREAS, Employee voluntarily resigned from this position effective Tuesday April 2, 2013 and the Company and Employee desire to mutually, amicably and finally resolve and compromise all issues and claims surrounding Employee’s employment with the Company and separation from the Company.

 

NOW THEREFORE, the Company and Employee have agreed as follows:

 

1.             Separation; Termination of Employment Agreement.  Employee’s employment with the Company terminated upon Employee’s resignation effective April 2, 2013 (the “Separation Date”).  Employee and the Company hereby agree that as of the Separation Date the Employment Agreement is terminated by mutual agreement, of no further force and effect, and superseded by this Agreement.

 

2.             Effective Date.  The effective date of this Agreement is the eighth day after the date on which Employee executes this Agreement, but no later than May 1, 2013 (the “Effective Date”), unless earlier revoked as provided below.

 

3.             Benefits.  The Company agrees to accept Employee’s resignation on the Separation Date and further to provide Employee the following benefits (collectively the “Benefits”) as consideration for the promises contained in this Agreement and only upon Employee’s execution, delivery and non-revocation of this Agreement:

 

a.                                      Extension of Option Expiration Date.   Employee holds vested option to purchase 500,000 shares of the Company’s common stock at $2.60 per share (the “Vested Options”).  Pursuant to the terms of the Vested Options they expire on July 1, 2013.  The Company hereby extends the expiration date of the Vested Options to July 1, 2022.  Employee acknowledges that his unvested options to purchase 500,000 shares of the Company’s common stock at $2.60 per share expired as of the Separation Date.  For the avoidance of doubt, Employee hereby acknowledges that he has no additional rights to any equity interests of the Company arising from or in connection with the Employment Agreement.

 

b.                                      Cash Payments.  The Company will (i) pay Employee a single cash payment for accrued vacation that is unused as of the Separation Date at the time specified in Section 4(a), below, and (ii) reimburse Employee for all business and professional development expenses incurred by him through the Separation Date but not yet

 

 

reimbursed. Employee has seven days after the Separation Date to present the Company a final expense report.  The Company will promptly reimburse Employee for all reasonable business expenses on such report.  If there is an outstanding amount due and owing on Employee’s corporate credit card account(s), the Company has the right to deduct from any of the payments due under this clause b any amount that constitutes personal expenditures.

 

c.                                       Mobile Phone.  Employee may retain the I-Phone issued to him by the Company and retain the phone number associated with such phone.  Employee agrees to be responsible for all charges related to such phone following the Separation Date.

 

d.                                      Welfare Benefits. Employee shall be provided by separate notice information explaining his rights to continue, at his own expense, health insurance coverage under COBRA. Employee shall be solely responsible for deciding, in his own discretion, whether to exercise and, if exercised, whether to continue to exercise COBRA rights.

 

e.                                       Additional Consideration.  Employee acknowledges the receipt and sufficiency of the foregoing consideration, which further includes but is not limited to the Company’s obligations herein, including its release of Employee pursuant to paragraph 7 below.

 

4.             Acknowledgment of Paid Wages.  Employee acknowledges that on the first pay period following the Separation Date, the Company will pay Employee his final paycheck, which will include payment for accrued and unused vacation through the Separation Date less all applicable deductions and withholdings at Employee’s previous rates. Employee acknowledges that after such final paycheck, he will not be due, owed, nor entitled to any other wages, salary, reimbursement, accrued or unused vacation time or benefits other than as set forth in this Agreement.

 

5.             Senior Advisor Services.  Employee agrees to serve as a Senior Advisor to the Company, reporting to the Company’s Chief Executive Officer, to provide consulting services as reasonably requested with respect potential transactions related to potash supply agreements (the “Services”).  The Services shall be provided in a manner that does not interfere or conflict with Employee’s then-current employment obligations Employee will provide the Services for no additional compensation.

 

6.             Release and Waiver by Employee.  Employee forever settles, releases, waives, and acquits the Company, and its predecessors, assigns, purchasers, subsidiaries, affiliates, past and present, as well as the employees, officers, directors, shareholders, agents, representatives and attorneys of each, past and present (collectively the “Released Entities”) of each and every claim, whether known or unknown, which exists as of the date of Employee’s signature on this Agreement, or which may hereafter arise against the Released Entities, arising out of or relating to Employee’s employment with the Company, separation from employment, or any potential claim against any of the Released Entities, other than the breach or alleged breach of this Agreement or Employee’s rights, if any, to indemnification, and/or defense under the Company’s certificate of incorporation, bylaw and/or policy or procedure, or under any insurance contract, in

 

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connection with Employee’s acts or omissions within the course and scope of his employment with the Company. This release specifically includes, without limitation, claims for the following:

 

a.                                      Alleged violation of the following laws: the Age Discrimination in Employment Act of 1967, 29 U.S.C. 621 et seq., as amended; the Older Workers Benefit Protection Act, Pub. Law 101-433, 104 Stat. 978 (1990); Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000-e, as amended; the Americans with Disabilities Act (ADA), including the ADA Amendments Act, effective January 1, 2009; the Civil Rights Acts of 1866, 1871, and 1991; the Equal Pay Act of 1963; the Lily Ledbetter Fair Pay Act of 2009; the Employee Retirement Income Security Act of 1974, as amended; the Occupational Safety and Health Act, as amended; Family Medical and Leave Act claims based upon past conduct; the Genetic Information Nondiscrimination Act of 2008 (Pub. L. 110-233, 122 Stat. 881 (2008)); the Immigration Reform and Control Act of 1986 (8 U.S.C. §§ 1101, et seq.) as amended; the Labor Management Relations Act, including Section 301 of the LMRA; the National Labor Relations Act; the Colorado Anti-Discrimination Act C.R.S. § 24-34-101 et seq.; Colorado Labor Relations claims, C.R.S. §§ 8-2-101 et seq., and any other federal, state, or local employment statute, law, or ordinance, including any and all claims of employment discrimination based on race, color, creed, religion, ancestry, national origin, sex, gender, age, marital status, disability, sexual orientation, lawful off-duty conduct, or retaliation;

 

b.                                      Any and all common law claims such as wrongful discharge, breach of contract, promissory estoppel, violation of public policy, defamation, negligence, infliction of emotional distress, any intentional torts, outrageous conduct, interference with contract, fraud, misrepresentation, invasion of privacy, and retaliation; and

 

c.                                       Any and all claims for any of the following: money damages, including actual, compensatory, liquidated or punitive damages, equitable relief such as reinstatement or injunctive relief, front or back pay, benefits, paid time off, liquidated damages, costs, interest, expenses, attorneys’ fees, or any other remedies.

 

d.                                      Employee acknowledges that nothing in this paragraph prevents Employee from filing a charge of discrimination with a federal or state agency, but Employee expressly agrees not to file any claim or lawsuit based upon or related to such charge of discrimination and expressly waives, releases and forgoes any damages, benefits, remedies, including reinstatement, costs, and attorneys fees to which Employee may otherwise be entitled under any claim, demand or lawsuit, including those initiated by a third party or federal or state agency. In addition to the releases stated in this paragraph, Employee expressly covenants that s/he will not take or accept any money, benefit or other relief from a settlement, finding of cause, conciliation or lawsuit obtained against the Company based upon a charge of discrimination or other agency complaint filed by Employee or any third party,

 

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including current or former Company employees, or based upon a proceeding or lawsuit filed by an agency. Employee also agrees and affirms that as of the date of Employee’s signature on this Agreement, he has not filed any charge of discrimination, claim, demand or lawsuit against any of the Released Entities.

 

7.             Release and Waiver by the Company.  The Company forever settles, releases, waives, and acquits Employee of each and every claim which exists as of the date of Employee’s signature on this Agreement.

 

8.             No Revival.  The Parties understand and agree that any breach by either Party of the representations, guarantees or other obligations set forth in this Agreement shall not operate to revive any of the alleged claims or disputed issues with respect to Employee’s employment with or separation from the Company; rather, the sole remedy for such breach shall be an action for breach of this Agreement.

 

9.             Confidentiality.  Employee agrees that neither Employee nor Employee’s representatives, agents and immediate family members will reveal any confidential or highly sensitive information relating to Employee’s employment with or separation from the Company, Company operations or any confidential or proprietary matters entrusted to Employee as an employee of the Company.

 

10.          Non-disparagement.  Employee shall not disparage, orally or in writing, the Company, its officers, directors, representatives, employees, policies, operations, or any of the Released Entities. Likewise, the Company’s executive team, investor relations consultant and directors shall not disparage, orally or in writing, Employee.  In the event either Party receives a subpoena to testify or otherwise provide information about topics related to the other Party, the receiving Party shall immediately notify the other Party.

 

11.             No Admission of Liability.  By entering into this Agreement, neither of the Parties admits liability of any kind or nature whatsoever to any other Party, such liability being expressly denied.

 

12.          Return of Corporate Property.  Employee hereby covenants and agrees that Employee shall promptly return all documents, keys, credit cards, data devices, computer equipment, phones (except as provided in Section 3c), Company products, keycards, account information, and all other items which are the property of the Company and/or contains confidential information; and, in the case of documents, to return any and all materials of any kind and in whatever medium, including, without limitation, all manuals, handbooks, hard disk drive and diskette data, microfiche, photographs, geological or other resource information, accounting or financial information, emails or other Company communications, and any other Company information that Employee has obtained during the course of Employee’s employment with the Company.  Employee represents and warrants that he has done so and, further, that he has taken affirmative steps to inspect and cleanse his personal computer(s) and phone(s) of the same. Employee further agrees that he will allow the Company’s designee to inspect his personal computers and phone(s) and cleanse them of the same if any still remains; Employee releases the Company and its designee of any liability for any harm or damage that might be caused in that

 

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process and acknowledges it may be necessary for him to reset his systems to their original factory settings to ensure that such information has been cleansed of his systems; therefore, before then, Employee shall take such steps as he believes necessary to back-up his personal photographs, music, or other information from such systems, but will allow the Company’s designee to inspect such back-ups to confirm they do not contain any of the Company’s information either.

 

13.          Resignation Letter.  Employee agrees to sign the general resignation letter attached as Exhibit A to this Agreement. Employee forever waives and relinquishes any and all claim, right, or interest in reinstatement or future employment that Employee presently has or might in the future have with the Released Entities or their assigns.

 

14.          Non-Solicitation; Confidential Information.

 

a.             Employee will not at any time during the period ending on the date two years after the Separation Date without the prior written consent of the Company, directly or indirectly, whether for his own account or as a shareholder, partner, joint venturer, employee, consultant, investor, lender, advisor, and/or agent, of any person or business entity, solicit, recruit or hire any employees of the Company, or solicit or encourage any employee of the Company to leave the employment of the Company, as applicable. Notwithstanding the foregoing, Employee shall not be precluded from hiring any such person who (i) responds to general or public solicitation not targeted at such persons (including by a bona fide search firm) or (ii) has been terminated by the Company or any of its subsidiaries prior to commencement of employment discussions between Employee and such person.

 

b.             (i)  The term “Confidential Information” as used in this Agreement means all information, as described below, disclosed, before or after the commencement of Employee’s employment with the Company, by the Company to Employee, as well as any information to which Employee has access or that is learned, generated, or created by Employee, whether alone or jointly with others, whether in written, electronic, oral, or any other form.  Confidential Information includes Company trade secrets and further includes, but is not limited to: (i) information relating to computer software and code, whether owned or licensed by the Company; (ii) client lists, preferences and strategies, nonpublic contact information, contracts and all other client information transmitted on a confidential basis to the Company; (iii) competitive analysis and strategies; (iv) all other technical, marketing, operational, economic, business, management, or financial knowledge, information or data of any nature whatsoever relating to the business of the Company; and (v) any copies, extracts, or notes therefrom or relating thereto.  Confidential Information shall also include any information that is provided to the Company by third parties that is subject to obligations of confidentiality.  Notwithstanding, Confidential Information shall not include: (i) information that at the time of disclosure is publicly available, or information which later becomes publicly available through no act or omission of Employee or through no act of wrongdoing or inadvertent disclosure; (ii) information that Employee independently developed without the use of the Company’s Confidential Information that is unrelated to the Company’s business or anticipated business, including information that Employee developed while working for other clients or employers prior to the Effective Date; or (iii) information

 

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disclosed to Employee by a third party not in violation of any obligations of confidentiality to the Company.

 

(ii)  Employee shall not disclose any Confidential Information except as provided in this Agreement.  All right, title and interest in and to Confidential Information will remain the property of the Company, and Employee has no rights to or license under the Confidential Information or under any related patent, patent application, trademark, copyright, know-how, or other intellectual property of the Company.

 

(iii)  In the event that Employee is requested or required by subpoena or court order to disclose any Confidential Information, it is agreed that Employee will provide immediate notice of such request(s) to the Company and will use reasonable efforts to resist disclosure, until an appropriate protective order may be sought, or a waiver of compliance with the provisions of this Agreement granted.  If, in the absence of a protective order or the receipt of a waiver hereunder, Employee is nonetheless, in the written opinion of his counsel, legally required to disclose Confidential Information received pursuant to this Agreement, then in such event Employee may disclose such information without liability hereunder, provided that the Company has been given a reasonable opportunity to review the text of such disclosure before it is made and that disclosure is limited to only the Confidential Information specifically required to be disclosed.

 

c.             Employee acknowledges that, in his former capacities at the Company, he was an executive employee, with a significant ownership interest in, and access to the confidential and trade secret information of the Company; therefore, Employee agrees, the foregoing covenants are reasonable and necessary to protect the business, trade secrets, and the goodwill of the Company.

 

15.          Remedy.  Employee acknowledges that in the event of any breach of this Agreement by Employee, the Company will not have an adequate remedy at law. Accordingly, the Company will be entitled to such equitable and injunctive relief, without bond, as may be available to restrain Employee and any other person or business entity involved in such breach or threatened breach from further violations of this Agreement. Nothing in this Agreement will be construed as prohibiting the Company from pursuing any other remedies available at law or in equity for breach or threatened breach, including the recovery of damages.

 

16.          Indemnification.  The Company agrees to provide Employee with the indemnification rights (and rights to advancement of expenses, if any) currently provided by the Company as described in the Company’s certificate of incorporation and bylaws, to its directors and officers.  Notwithstanding any future amendments to the Company’s certificate of incorporation or bylaws, the Company hereby agrees to continue to provide Employee with such indemnification rights so long as he is exposed to any potential liability by reason of his services as an officer and director of the Company.  The rights granted to Employee by the Company in this Agreement shall not be deemed exclusive of, or in limitation of, any rights to which he may be entitled under applicable law, the Company’s certificate of incorporation, or otherwise.  The Company will maintain the current or higher level of director’s and officer’s insurance naming

 

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Employee as a covered party in an amount deemed mutually sufficient to the Company and Employee.

 

17.          Tax Compliance; Section 409A.  The Company shall be entitled to withhold from any amounts payable under this Agreement any federal, state, local or foreign withholding or other taxes or charges which the Company is required to withhold pursuant to applicable law.  Notwithstanding any other provision herein: (i) the Parties hereto intend that payments and benefits under this Agreement comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance promulgated thereunder (collectively, “Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith or exempt therefrom, and, without the prior written consent of Employee, the Company may adopt such amendments to the Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Company determines are necessary or appropriate to exempt any payment hereunder from Section 409A and/or preserve the intended tax treatment of any payment provided hereunder, or comply with the requirements of Section 409A and thereby avoid the application of any penalty taxes under Section 409A; provided that, in no event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on Employee by Section 409A or damages for failing to comply with Section 409A; (ii) for all purposes of this Agreement, references herein to “termination” or other terms of similar import shall in each case mean a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h); (iii) each installment payment payable hereunder shall be deemed to be a separate and distinct payment for purposes of Section 409A; (iv) in no event shall any payment under this Agreement that constitutes nonqualified deferred compensation subject to Section 409A be subject to offset unless otherwise permitted by Section 409A; (v) to the extent that reimbursements or other in-kind benefits under this Agreement constitute “nonqualified deferred compensation” for purposes of Code Section 409A, (A) all expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by Employee, (B) any right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (C) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year; and (vi) payments made in accordance with the Company’s customary payroll practices shall be made within 30 days of each payroll date pursuant to the payroll schedule in effect on the Effective Date of this Agreement.  In no event does the Company guarantee any particular tax consequences, outcome or tax liability to Employee.  No provision of this Agreement shall be interpreted or construed to transfer any liability for failure to comply with the requirements of Section 409A from Employee or any other individual to the Company or its affiliates.  Whenever a payment under this Agreement specifies a payment period, the actual date of payment within such specified period shall be within the sole discretion of the Company, and Employee shall have no right (directly or indirectly) to determine the year in which such payment is made.  Whenever the payment period applicable to a payment spans two consecutive calendar years, such payment shall be made in the second of such calendars years.

 

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18.          Severability.  If any provision of this Agreement shall be held invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be impaired thereby.

 

19.          Successors and Assigns.  Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of and be enforceable by Employee, the Company, each of the Party’s respective successors and assigns, and the Released Entities.

 

20.          Counterparts.  This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same Agreement.

 

21.          Governing Law.  This Agreement shall be governed by the internal laws of the State of Colorado, without reference to principles of conflicts of laws.

 

22.          No Interpretation Against Drafter.  The Parties also acknowledge that this Agreement has been the subject of negotiations and discussions between the Parties.  This Agreement will be construed to have been drafted by all the Parties, so that any rule of construing ambiguities against the drafter will have no force or effect with respect to this Agreement.

 

23.          Attorney Fees.  Each party to this Agreement shall be fully responsible for his or its own costs and attorney’s fees associated with the negotiation and preparation of this Agreement.  In the event either Party brings a legal action to enforce any provision of this Agreement, the prevailing party shall be entitled to recover attorney fees, costs and expenses.

 

24.          Entire Agreement and Continuing Obligations.  This Agreement embodies the sole and entire agreement of the Parties with respect to its subject matter.  Except as noted in this paragraph, no other letter, verbal statement, agreement, promise, undertaking, understanding, or arrangement, made prior to or contemporaneously with the execution of this Agreement is binding on any of the Parties, unless expressly set forth herein.

 

25.          Acknowledgment Under the ADEA.  The Parties acknowledge that this is an important legal document.  Employee is advised to consult with an attorney before signing this Agreement.  Employee is also advised that Employee has 21 days after receiving this Agreement to consider it.  If Employee chooses to agree to the terms of this Agreement, Employee must sign and return the Agreement to the Company’s President and Chief Executive Officer Damon G. Barber, at the address below within 21 days of Employee’s receipt of this Agreement.  If Employee signs the Agreement, Employee will then have the right to revoke this Agreement by delivering written revocation to the Company’s President and Chief Executive Officer Damon G. Barber, but such notice must be received by Mr. Barber within seven days after the date Employee signed the Agreement.  The signed Agreement and/or any notice of revocation must be delivered personally, by an overnight delivery service or by certified mail, return receipt requested, to:

 

Damon G. Barber
 President and Chief Executive Officer

 

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Prospect Global Resources Inc.
 1401 17th Street, Suite 1550
 Denver, CO  80202

 

(Remainder of page intentionally left blank)

 

9

 

If this Agreement is not signed and delivered to Damon G. Barber within the 21-day period, or if it is revoked within the 7-day period, neither Employee nor the Company will have any rights or obligations under this Agreement.  This Agreement is binding upon and shall inure to the benefit of the Company, Employee and the Released Entities.  By signing this Agreement, the Parties represent that they have read and understand it, that they have discussed or had an opportunity to discuss it voluntarily with their respective attorneys, and that they enter into it knowingly and voluntarily.

 

WHEREFORE, Employee and the Company voluntarily enter into this Agreement by affixing their signatures on the date set forth above.

 

 

	
 /s/ Brian   W. Wallace 
    	
 
    	
/s/ Damon G. Barber 
    
	
Brian   W. Wallace
    	
 
    	
Damon   G. Barber, President and Chief Executive Officer 
    
	
 
    	
 
    	
Prospect   Global Resources Inc.
    

 

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Exhibit A

 

To Whom It May Concern:

 

I, Brian W. Wallace, effective as of April 2, 2013, voluntarily resign all employment with and as Executive Vice President and Chief Operating Officer of Prospect Global Resources Inc. and any of its direct or indirect subsidiaries.

 

 

	
 
    	
 
    
	
 
    	
 Brian W. Wallace
    

 

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