Document:

exh101.htm

Exhibit 10.1

SOLAR POWER SYSTEMS AGREEMENT

 

THIS AGREEMENT is made effective the 31st day of March, 2011.

AMONG:

CORONUS SOLAR INC., a company incorporated under the laws of Canada and having a registered office at 1600 – 609 Granville Street, Vancouver, British Columbia, Canada, V7Y 1C3

 

(hereinafter called “Coronus Solar”)

 

OF THE FIRST PART

AND:

CORONUS ENERGY CORP., a company incorporated under the laws of the state of Delaware and having a registered office at 600 – 1201 Orange Street, Wilmington, Delaware, U.S.A., 19801

 

(hereinafter called “Coronus Energy”)

 

OF THE SECOND PART

AND:

BELECTRIC, INC., a company incorporated under the laws of the state of California and having a registered office at 8076 Central Avenue, Newark, California, U.S.A., 94560

 

(hereinafter called “Belectric”)

 

OF THE THIRD PART

WHEREAS:

 

	
A.  

	
Coronus Energy is a company founded to deploy and operate utility-scale solar photovoltaic power systems in the State of California;

 

	
B.  

	
Coronus Energy is a wholly-owned subsidiary of Coronus Solar;

 

	
C.  

	
Belectric designs, builds and sells turnkey, utility-scale solar photovoltaic power systems; and,

 

	
D.  

	
Coronus Energy has offered to purchase from Belectric and Belectric has agreed to sell to Coronus Energy certain turnkey, utility-scale solar photovoltaic power systems on the terms and conditions set forth herein.

 

 

NOW THEREFORE THIS AGREEMENT WITNESSES that for good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree each with the other as follows:

 

	
1.  

	
INTERPRETATION

 

  

  

  

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1.1  

	
Definitions

 

Where used herein or in any amendments or schedules hereto, the following terms shall have the following meanings:

 

	
(a)  

	
“Agreement” means this Solar Power Systems Agreement including all schedules, and all instruments supplemental to or in amendment or confirmation of this Agreement;

 

	
(b)  

	
“Closing” means the execution of this Agreement by all parties;

 

	
(c)  

	
“Closing Date” means the date on which the Closing occurs;

 

	
(d)  

	
“Energy Property” means collectively, fourteen Energy Units;

 

	
(e)  

	
“Energy Unit” means a Solar System with an actual total peak output (AC) of 1.5 MWp;

 

	
(f)  

	
“Solar System” means a utility-scale, ground-mount, solar photovoltaic power system; and,

 

	
(g)  

	
“United States” means the United States of America, its territories and possessions and any State of the United States and the District of Columbia.

 

	
1.2  

	
Deemed Currency

 

In the absence of a specific designation of any currency, any undescribed dollar amount herein will be deemed to refer to United States dollars.

 

	
1.3  

	
Governing Law

 

This Agreement will be governed by and interpreted in accordance with the laws of the State of California and the federal laws of the United States of America applicable therein.

 

	
2.  

	
PURCHASE AND SALE

 

	
2.1  

	
Purchase and Sale

 

Based on the representations and warranties contained in this Agreement, Belectric agrees to sell, assign and transfer to Coronus Energy and, Coronus Energy agrees to purchase from Belectric, the Energy Property, for the price and in accordance with and subject to the terms and conditions set forth in this Agreement.

 

	
2.2  

	
Multiple Units of Property

 

The Energy Units may be constructed together, or independently, and may be constructed at the same, or at different, sites.

 

	
2.3  

	
Purchase Price

 

	
(a)  

	
Belectric will sell the Energy Property to Coronus Energy for $76,818,000, exclusive of taxes (the “Basic Price”).

 

  

  

  

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(b)  

	
15% of the Basic Price, or $11,522,700, will be paid on the Closing Date by way of Coronus Solar issuing 10,974,000 common shares (the “Payment Shares”) to Belectric, at a deemed price of $1.05 per share.

 

	
(c)  

	
The payment of the balance of the Basic Price, or $65,295,300, will take place in instalments, and will be prorated on a per Energy Unit basis, in accordance with the following schedule:

 

	
(i)  

	
5% of the Basic Price, or $274,350 per Energy Unit, will be made on mobilization of the supporting structure to the installation site;

 

	
(ii)  

	
10% of the Basic Price, or $548,700 per Energy Unit, will be made on completion of the supporting structure on the installation site;

 

	
(iii)  

	
50% of the Basic Price, or $2,743,500 per Energy Unit, will be made on delivery of the solar modules to the installation site;

 

	
(iv)  

	
10% of the Basic Price, or $548,700 per Energy Unit, will be made on delivery of the inverters to the installation site;

 

	
(v)  

	
5% of the Basic Price, or $274,350 per Energy Unit, will be made on commissioning/grid-connection; and,

 

	
(vi)  

	
5% of the Basic Price, or $274,350 per Energy Unit, will be made on final acceptance (the “Solar System Acceptance”).

 

	
(d)  

	
The Basic Price includes the procurement of all necessary approvals for the Energy Units.

 

	
(e)  

	
The Basic Price does not include applicable sales taxes. Coronus Energy will pay the applicable sales taxes, when due.

 

	
2.4  

	
Interest Rate Contingency

 

Coronus Energy intends to finance the majority of the Basic Price with debt. If the interest rate on the permanent debt Coronus Energy secures is greater than, 6.25% per annum, compounded monthly, then the Basic Price, prorated on a per Energy Unit basis, will be reduced by one-half of the applicable sales taxes.

 

	
2.5  

	
Non-Refundability of Payment Shares

 

Coronus Solar and Coronus Energy acknowledge and agree that the Payment Shares are non-refundable.

 

	
2.6  

	
Restrictions on Transfer

 

Belectric acknowledges and agrees that the Payment Shares will be subject to restrictions on resale and transfer in accordance with applicable securities laws. Belectric further acknowledges and agrees that the Payment Shares may be subject to additional resale restrictions based upon Belectric’s jurisdiction of residence and the jurisdiction of residence of any proposed transferee of the Payment Shares, and it is Belectric’s responsibility to find out what these restrictions are and comply with same before selling, transferring or otherwise disposing of the Payment Shares. Belectric acknowledges and agrees that the certificate representing the Payment Shares will bear such legends as is required with respect to any such restrictions on resale and transfer.

 

  

  

  

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3.  

	
SITE SUITABILITY

 

Prior to the commencement of construction, Belectric must first approve each site, in respect of interconnection and site preparation, as Belectric will bear the costs related thereto. Belectric’s approval of each site shall not be unreasonably withheld.

 

	
4.  

	
SPECIAL PURPOSE ENTITIES

 

Coronus Energy is entitled to assign its rights to Energy Units to affiliated special purpose entities that will own the projects for which such Energy Units are to be used.

 

	
5.  

	
TURNKEY SOLAR SYSTEMS

 

Belectric covenants and agrees to deliver to Coronus Energy turnkey Solar Systems. “Turnkey” means that the Solar Systems will be constructed in accordance with the terms of this Agreement, and that the Solar Systems will be completely finished and ready for operation. Additionally, the Solar Systems will be connected to the grids of the utilities, so that the Solar Systems are available, without restriction, for their intended use. Included in the Basic Price, Belectric covenants and agrees to the following:

 

	
5.1  

	
Belectric is to engineer, procure and construct the Solar Systems.

 

	
5.2  

	
But for the interconnection agreements, the power purchase agreements, and the land use permits, Belectric is to obtain all necessary permits and approvals.

 

	
5.3  

	
Belectric is to observe and account for the conditions of the power purchase agreements of the utilities.

 

	
5.4  

	
Belectric is to connect the Solar Systems to the utilities’ grids, which involves the installation of the necessary lines,  the obtaining of the easements and approvals necessary for the laying of the lines, and, if required, the construction of substations.

 

	
5.5  

	
Belectric is to supply and install all components necessary to bring the Solar Systems into operation, including, but not limited to, the following:

 

	
(a)  

	
the solar modules (the DC output of the Solar Systems must correspond to or exceed the total rated module output of the manufacturer’s data sheet);

 

	
(b)  

	
the central inverters;

 

	
(c)  

	
the low-loss, low-voltage side cabling of the Solar Systems to the transformer stations;

 

	
(d)  

	
the supporting construction in accordance with the structural requirements of the relevant authorities;

 

	
(e)  

	
the equipment and devices required for the safety and security of the Solar Systems, including, but not limited to, fencing and webcams;

 

	
(f)  

	
the equipment, devices and instruments required for Solar Systems performance monitoring, inspection and maintenance; and,

 

	
(g)  

	
the DC- and AC-side cabling of the Solar Systems, including the cabling of the inverters.

 

  

  

  

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5.6  

	
Belectric is to oversee and undertake construction site setup and is responsible for traffic safety on the site during construction.

 

	
5.7  

	
Belectric is to conduct any necessary site landscaping and ground compaction. The preparation of the site for construction, in particular necessary woodland clearance, excavation and compaction of earth, including any possibly necessary construction and/or extension of access routes, is the responsibility of Belectric.

 

	
5.8  

	
Belectric is to perform trial operations of the Solar Systems.

 

	
5.9  

	
Belectric is to carry out all acceptance procedures (in particular those of the utilities) for the turnkey construction of the Solar Systems and connection to the grids of the utilities.

 

	
6.  

	
SOLAR SYSTEM ACCEPTANCE

 

Following completion of the installation work of a Solar System, an acceptance review will be conducted by Belectric and Coronus Energy to determine whether the Solar System complies with the stipulations of this Agreement and is not subject to any major faults.

 

	
6.1  

	
Acceptance must be granted by Coronus Energy if the Solar System is not subject to any major faults. A major fault is considered to exist if the operability or safety of the Solar System is impaired, irrespective of the amount of the fault rectification costs. Otherwise, major faults are deemed to exist only if the total fault rectification costs exceed $25,000 per MWp.

 

	
6.2  

	
If the Solar System proves to be faulty on the acceptance review, Belectric must rectify all faults immediately, and bear the costs of said rectification.

 

	
7.  

	
IMPAIRMENT OF PERFORMANCE

 

	
7.1  

	
Belectric, irrespective of other guarantee agreements, guarantees the proper construction and installation of each Solar System, pursuant to the terms of this Agreement and the applicable legal requirements, for a period of 10 years following the acceptance of the Solar System.

 

	
7.2  

	
Belectric, irrespective of other guarantee agreements, guarantees the supporting construction for a period of 20 years following the acceptance of the Solar System.

 

	
7.3  

	
Coronus Energy and/or Coronus Solar shall make and pursue any claim covered by a third-party guarantee against such third-party, without making or pursuing a claim against Belectric. In the event Coronus Energy and/or Coronus Solar make and pursue a claim against a third-party, Belectric will assist Coronus Energy and/or Coronus Solar in the assertion of their claims.

 

	
8.  

	
OPERATIONS AND MAINTENANCE

 

Pursuant to Operations and Maintenance Agreements (the “O&M Agreements”), to be negotiated in good faith between Coronus Energy and Belectric, Belectric shall be responsible for managing the operation of the Solar Systems, throughout the duration of the power purchase agreement underlying each Solar System, and will receive, in remuneration for the services to be provided under the O&M Agreements, remuneration in the amount of $25 per kWp (DC rated output) per year.

 

	
9.  

	
PERFORMANCE GUARANTEE

 

For the Solar Systems, Coronus Energy and Belectric will negotiate performance guarantees in good faith that meet the requirements of the project financiers.

 

  

  

  

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10.  

	
TERM

 

This Agreement shall be effective as of the day and year first above written, and shall remain in full force and effect to December 31, 2013.

 

	
11.  

	
COVENANTS, REPRESENTATIONS AND WARRANTIES OF CORONUS SOLAR

 

Coronus Solar covenants, represents and warrants to Belectric (and acknowledges that Belectric is relying upon such covenants, representations and warranties in entering into this Agreement) that as at the date of this Agreement and the Closing Date:

 

	
11.1  

	
Coronus Solar has been duly incorporated and organized and is validly subsisting under the laws of Canada.

 

	
11.2  

	
The authorized capital of Coronus Solar consists of an unlimited number of common shares without par value of which, immediately prior to Closing, 15,775,086 common shares are issued and outstanding.

 

	
11.3  

	
Coronus Solar is a reporting issuer under applicable United States securities laws and is in good standing with respect to material filings required to be made under such statutes.

 

	
11.4  

	
Coronus Solar has good right, full corporate power and absolute authority to enter into this Agreement and to perform all of its obligations under this Agreement.

 

	
11.5  

	
Coronus Solar has taken all necessary actions, steps and corporate and other proceedings to approve or authorize, validly and effectively, the entering into, and the execution, delivery and performance of this Agreement.

 

	
11.6  

	
All necessary corporate actions will at Closing have been duly taken by Coronus Solar to authorize the creation, allotment and issue of the Payment Shares and upon issuance, the Payment Shares will have been duly and validly allotted and issued as fully paid and non-assessable common shares in the capital of Coronus Solar.

 

	
11.7  

	
This Agreement has been duly executed and delivered by Coronus Solar and the Agreement will constitute a legal, valid and binding obligation of Coronus Solar enforceable against Coronus Solar in accordance with its terms.

 

	
12.  

	
COVENANTS, REPRESENTATIONS AND WARRANTIES OF CORONUS ENERGY

 

Coronus Energy covenants, represents and warrants to Belectric (and acknowledges that Belectric is relying upon such covenants, representations and warranties in entering into this Agreement) that, under this Agreement:

 

	
12.1  

	
Coronus Energy is to provide the sites for the Solar Systems, along with the necessary land use permits.

 

	
12.2  

	
Coronus Energy is to pay for the utility interconnection requests and studies.

 

	
12.3  

	
Coronus Energy is to obtain the power purchase agreements from the utility.

 

	
12.4  

	
Coronus Energy is to provide Belectric with proof of secured financing, on a per Energy Unit basis, prior to the commencement of construction of each of the Solar Systems, and that this proof must be satisfactory to Belectric.

 

  

  

  

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12.5  

	
Coronus Energy has good right, full corporate power and absolute authority to enter into this Agreement and to perform all of its obligations under this Agreement.

 

	
12.6  

	
This Agreement has been duly executed and delivered by Coronus Energy and the Agreement will constitute a legal, valid and binding obligation of Coronus Energy enforceable in accordance with its terms.

 

	
13.  

	
COVENANTS, REPRESENTATIONS AND WARRANTIES OF BELECTRIC

 

Belectric covenants, represents and warrants to Coronus Solar and Coronus Energy (and acknowledges that Coronus Solar and Coronus Energy are relying upon such covenants, representations and warranties in entering into this Agreement) that, under this Agreement:

 

	
13.1  

	
Belectric is to provide all services necessary for delivery to Coronus Energy of turnkey, operation ready Solar Systems, and for connection of the Solar Systems to the utilities’ grids.

 

	
13.2  

	
Belectric is to provide, without special remuneration, all services required for the fulfilment of its obligations under this Agreement.

 

	
13.3  

	
Belectric covenants and agrees to design the Solar Systems to optimize revenue, with emphasis placed on the utilities’ time of delivery periods and factors.

 

	
13.4  

	
During the construction phases, Belectric will take out and maintain construction/installation insurance coverage, with the risks of property loss transferred to Coronus Energy upon acceptance.

 

	
13.5  

	
Belectric is an accredited investor as defined under Rule 501 of Regulation D of the United States Securities Act of 1933, as amended, and as defined under National Instrument 45-106, as adopted by the Canadian Securities Administrators.

 

	
13.6  

	
Belectric has good right, full corporate power and absolute authority to enter into this Agreement and to perform all of its obligations under this Agreement.

 

	
13.7  

	
This Agreement has been duly executed and delivered by Belectric and the Agreement will constitute a legal, valid and binding obligation of Belectric enforceable in accordance with its terms.

 

	
14.  

	
CLOSING ARRANGEMENTS

 

	
14.1  

	
The closing shall take place on the Closing Date at the offices of Anfield Sujir Kennedy & Durno, counsel to Coronus Solar, in the city of Vancouver, British Columbia.

 

	
14.2  

	
At Closing, Coronus Solar shall deliver to Belectric a certificate representing the Payment Shares duly registered in Belectric’s name.

 

	
15.  

	
COMPLIANCE WITH SECURITIES REGULATORY REQUIREMENTS

 

	
15.1  

	
The parties acknowledge that Coronus Solar may be required under applicable securities laws to prepare and file certain disclosure documents in respect of this Agreement or the transactions contemplated hereunder, and the parties hereby agree to assist in the preparation of such documents as required.

 

  

  

  

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15.2  

	
So long as Belectric beneficially owns any of the Payment Shares, Coronus Solar shall timely file all reports required to be filed with the SEC pursuant to the Securities Exchange Act of 1934 (the “1934 Act”), and Coronus Solar shall not terminate or suspend its status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would permit such termination or suspension.

 

	
16.  

	
LEGAL PROCEEDINGS

 

	
16.1  

	
In the event that any proceeding, litigation or action (an “Action”) is taken by any party or parties hereto against any other party or parties in respect of this Agreement or the transactions contemplated hereunder, any and all costs incurred by the prevailing party or parties in respect of such Action shall be paid by the unsuccessful party or parties to such Action.

 

	
17.  

	
GENERAL PROVISIONS

 

	
17.1  

	
Time shall be of the essence of this Agreement.

 

	
17.2  

	
This Agreement contains the whole agreement between the parties hereto in respect of the purchase and sale of the Solar Systems and the transactions contemplated herein and there are no warranties, representations, terms, conditions or collateral agreements expressed, implied or statutory, other than as expressly set forth in this Agreement.

 

	
17.3  

	
This Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns. Neither Coronus Solar nor Coronus Energy may assign this Agreement without the written consent of Belectric, which consent shall not be unreasonably withheld. Belectric may not assign this Agreement without the written consent of Coronus Solar and Coronus Energy, which consent shall not be unreasonably withheld.

 

	
17.4  

	
Any notice to be given under this Agreement shall be duly and properly given if made in writing and by delivering the same to each party at their respective address provided on page 1 of this Agreement.  Any notice given as aforesaid shall be deemed to have been given or made on the date on which it was delivered.  Any party hereto may change its address for notice from time to time by notice given to the other parties hereto in accordance with the foregoing.

 

	
17.5  

	
This Agreement may be executed in several counterparts and delivered by telecopier, each of which when so executed shall be deemed to be an original, and such counterparts or facsimile copies thereof together shall comprise one and the same instrument and, notwithstanding their date of execution, shall be deemed to bear the date as of the date above written.

 

	
17.6  

	
This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of California, and each of the parties hereto irrevocably attorns to the jurisdiction of the Courts of the State of California.

 

 

[REMAINDER OF PAGE INTENTIONALLY BLANK]

 

 

  

  

  

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IN WITNESS WHEREOF the parties hereto have executed this Agreement effective as of the day and year first above written.

 

	  	  	  
	  	
CORONUS SOLAR INC.

	  
	  	  	  
	  	  	  
	
Per:

	
JEFF THACHUK

	
3/31/11

	  	
Signature

	  
	  	
Jeff Thachuk

President

 

	  
	  	  	  
	  	
CORONUS ENERGY CORP.

	  
	  	  	  
	  	  	  
	
Per:

	
JEFF THACHUK

	
3/31/11

	  	
Signature

	  
	  	
Jeff Thachuk

Chairman

	  
	  	  	  
	  	  	  
	  	
BELECTRIC, INC.

	  
	  	  	  
	  	  	  
	
Per:

	
DAVID TAGGART

	
3/31/11

	  	
Signature

	  
	  	
David Taggart

Presidentsunriver8kex101040411.htm

 

AMENDED AND RESTATED CONSULTING AGREEMENT

THIS AMENDED AND RESTATED CONSULTING AGREEMENT (the “Agreement”) is effective as of the 1st day of February, 2011 by and between Sun River Energy, Inc., a Colorado corporation (the “Company”), with executive offices located at 5950 Berkshire Lane, Suite 1650, Dallas, Texas 75225, and Cicerone Corporate Development, LLC, a Texas limited liability company (the “Consultant”), with executive offices located at 501 Trophy Lake, 314 PMB 106, Trophy Club, Texas 76262.

WHEREAS, the Company is a development-stage oil and gas exploration and production company and desires advice regarding business strategies, capital raising and business planning;

WHEREAS, Consultant has expertise in the areas of corporate structuring, strategic planning and capital raising;

WHEREAS, the Company desires to engage Consultant to provide consulting services relating to implementation of corporate strategies, achievement of market listing standards, debt and equity financings, and corporate governance and shareholder matters (the “Consulting Services”);

WHEREAS, the Company and Consultant had previously entered into consulting agreements dated as of July 31, 2009, July 15, 2010, and November 29, 2010 (the “Prior Consulting Agreements”);

WHEREAS, the Company and Consultant desire to amend and restate the Prior Consulting Agreements in their entirety and desire to set forth in this Agreement the terms and conditions of the Company’s engagement of Consultant;

NOW, THEREFORE, in consideration of the foregoing and the mutual promises herein contained, the parties hereto agree as follows:

1.  Services to Be Provided, Scope of Agreement, and Relationship of the Parties

 

(a) The Company hereby agrees to engage Consultant to provide the Consulting Services, and Consultant agrees to such engagement, on the terms and conditions set forth in this Agreement.  In that regard, Consultant agrees to make itself available to the Company during normal business hours for reasonable periods of time, subject to reasonable advance notice and mutually convenient scheduling, for the purpose of attending meetings of management and the Board of Directors, as may be requested by the Chairman of the Board of the Company; assisting the Company in the preparation of reports, summaries, profiles, due diligence packages, and other material and documentation in connection with proposed acquisitions in each case as and to the extent requested by the Chief Executive Officer of the Company.

 

(b) The Company acknowledges that Consultant has many other business interests and will devote as much time as in its discretion as necessary to perform its duties under this Agreement.  In addition, the Company acknowledges that Consultant’s efforts on behalf of his other interests are the sole and separate property of Consultant.

 

 

 

 

	Amended and Restated Consulting Agreement 	 Page 1 of 5	 

	  	
/s/HM

	  	
/s/DRS

	  	
Initials

	  	
Initials

 

  

  

  

 

(c) The services rendered by Consultant to the Company pursuant to this Agreement shall be as an independent contractor, and this Agreement does not make Consultant the employee, agent, or legal representative of the Company for any purpose whatsoever, including without limitation, participation in any benefits or privileges given or extended by the Company to its employees.  No right or authority is granted to Consultant to assume or to create any obligation or responsibility, express or implied, on behalf of or in the name of the Company, expect as may be set forth herein.  In that regard, Consultant agrees that it shall act solely at the express direction of the Company’s Chief Executive Officer and shall coordinate all contacts with third parties, including without limitation potential sources of capital, through the Chief Executive Officer.  The Company shall not withhold for Consultant any federal or state taxes from the amounts to be paid to Consultant hereunder, and Consultant agrees that it will pay all taxes due on such amounts.

 

(d) Consultant shall provide the Company with such other advisory and consulting services as the Company may specifically request.  Specific fees for each separate service rendered by Consultant shall be established at the time Consultant is requested to undertake each service.

 

2.  Compensation

 

(a) As compensation for its Consulting Services hereunder, the Company will issue to Consultant each month during the term of this Agreement shares of its Common Stock valued at $25,000 based on its price at the close on the last trading day of each month and 20,000 warrants to purchase Common Stock.  The warrants shall have an exercise price per share equal to the closing sale price of the Common Stock on the date of issue, shall be exercisable for two years from the date of issue, and shall provide for a “cashless” or “net issue” exercise.  The foregoing shares and warrants shall be issued as of the last business day of each month, and shall be delivered to Consultant as soon as reasonably practicable.

 

(b) Other forms of compensation may occur depending on the nature of a specific transaction and only upon the mutual agreement of both parties.  It is agreed that for oil and/or gas projects and acquisitions, acreage sales or leases introduced by Consultant, Consultant’s fee shall equal 5% of the price paid by the Company for any such projects, acquisitions, sales or leases, payable as follows: (1) 50% of such fee shall be paid in cash; and (2) 50% of such fee shall be paid in Company stock at then current price (BID).

 

3.  Expenses

 

The Company shall reimburse Consultant for all pre-approved reasonable and necessary expenses incurred by it in providing the Consulting Services under this Agreement. Consultant shall submit related receipts and documentation with its request for reimbursement.

 

 

 

 

	Amended and Restated Consulting Agreement 	 Page 2 of 5	 

	 	
/s/HM

	  	
/s/DRS

	  	
Initials

	  	
Initials

  

  

  

 

4.  Renewal; Termination

 

(a) This Agreement shall continue in effect until August 1, 2013.  Thereafter, this Agreement shall automatically renew for an additional one (1) year term unless either party to this Agreement notifies the other in writing at least ninety (90) days prior to August 1, 2013.  Thereafter, this Agreement shall automatically renew for additional one (1) year terms unless either party to this Agreement notifies the other in writing at least ninety (90) days prior to the end of the one (1) year term.,.

 

(b) Subject to the continuing obligations of Consultant under Section 5 below, either party may terminate this Agreement at any time if the other party shall fail to fulfill any material obligation under this Agreement and shall not have cured the breach within 10 days after having received written notice thereof by the other party.

 

(c) Termination or expiration of this Agreement shall not extinguish any rights of compensation that shall have accrued under paragraph 2 (a) or (b) prior to the termination.

 

5.  Confidential Information

 

(a)  “Confidential Information,” as used in this Section 5, means information that is not generally known and that is proprietary to the Company or that the Company is obligated to treat as proprietary.  This information includes, without limitation:

 

	
(i)  

	
Trade secret information about the Company and its operations, plans, strategies, sources of capital, acquisition targets and financial results;

 

	
(ii)  

	
Information concerning the Company’s business as the Company has conducted it since the Company’s incorporation or as it may conduct it in the future; and

 

	
(iii)  

	
Information concerning any of the Company’s past, current, or possible future products, including (without limitation) information about the Company’s research, development, engineering, purchasing, manufacturing, accounting, marketing, selling, or leasing efforts.

 

(b) Any information that Consultant reasonably considers Confidential Information, or that the Company treats as Confidential Information, will be presumed to be Confidential Information (whether Consultant or others originated it and regardless of how it obtained it).

 

(c) Except as required in its duties to the Company, Consultant will never, either during or after the term of this Agreement, use or disclose confidential Information to any person not authorized by the Company to receive it.

 

(d) If this Agreement is terminated, Consultant will promptly turn over to the Company all records and any compositions, articles, devices, apparatus and other items that disclose, describe, or embody Confidential Information, including all copies, reproductions, and specimens of the Confidential Information in its possession, regardless of who prepared them.  The rights of the Company set forth in this Section 5 are in addition to any rights of the Company with respect to protection of trade secrets or confidential information arising out of the common or statutory laws of the State of Colorado or any other state or any country wherein Consultant may from time to time perform services pursuant to this Agreement.  This Section 5 shall survive the termination or expiration of this Agreement.

 

 

 

 

 

	Amended and Restated Consulting Agreement 	 Page 3 of 5	 

	 	
/s/HM

	  	
/s/DRS

	  	
Initials

	  	
Initials

  

  

  

 

(e) Consultant hereby acknowledge, on behalf of its members, managers, affiliates, attorneys, advisors, agents and representatives (“Representatives”), that it is aware (and that its Representatives who are apprised of this matter have been advised) of Consultant’s responsibility under the U.S. federal securities laws with respect to purchasing or selling securities of a company about which Consultant (or its Representatives) have material nonpublic information and agree that Consultant and its Representatives will not use, nor cause any third party to use, any information in contravention of such securities laws or any rules or regulations promulgated thereunder.  Further, Consultant agrees not to sell short any securities issued by Company.

 

6.  False or Misleading Information

 

The Company agrees to use commercially reasonable efforts to provide Consultant with accurate financial, corporate, and other data reasonably requested by Consultant in connection with the performance with its services hereunder.  The Company hereby indemnifies Consultant from any and all out-of-pocket costs, expenses or damages incurred, and holds Consultant harmless from any and all claims and/or actions that may result solely and directly from the Company’s intentional breach of this covenant.

 

7.  Miscellaneous

 

(a) Successors and Assigns.  This Agreement is binding on and ensures to the benefit of the Company, its successors and assigns, all of which are included in the term the “Company” as it is used in this Agreement and upon Consultant, its successors and assigns.  Neither this Agreement nor any duty or right hereunder will be assignable or otherwise transferable by either party without the written consent of the other party, except that the Company shall assign this Agreement in connection with a merger, consolidation, assignment, sale or other disposition of substantially all of its assets or business.  This Agreement will be deemed materially breached by the Company if its successor or assign does not assume substantially all of the Company’s obligations under this Agreement.

 

(b) Modification.  This Agreement may be modified or amended only by a writing signed by both the Company and Consultant.

 

(c) Governing Law.  The laws of Texas will govern the validity, construction, and performance of this Agreement.  Any legal proceeding related to this Agreement will be brought in an appropriate court in Dallas county, Texas, and both the Company and Consultant hereby consent to the exclusive jurisdiction of that court for this purpose.

 

(d) Construction.  Wherever possible, each provision of this Agreement will be interpreted so that it is valid under the applicable law.  If any provision of this Agreement is to any extent invalid under the applicable law, that provision will still be effective to the extent it remains valid.  The remainder of this Agreement also will continue to be valid, and the entire Agreement will continue to be valid in other jurisdictions.

 

 

 

 

 

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(e) Waivers.  No failure or delay by either the Company or Consultant in exercising any right or remedy under this Agreement will waive any provision of the Agreement, nor will any single or partial exercise by either the Company or Consultant of any right or remedy under this Agreement preclude either of them from otherwise or further exercising these rights or remedies, or any other rights or remedies granted by any law or any related document.

 

(f) Captions.  The headings in this Agreement are for convenience only and do not affect this Agreement’s interpretation.

 

(g) Entire Agreement.  This Agreement supersedes all previous and contemporaneous oral negotiations, commitments, writings, and understandings between the parties concerning the matters in this Agreement.

 

(h) Notices.  All notices and other communications required or permitted under this Agreement shall be in writing and sent by registered first-class mail, postage prepaid, and shall be effective five days after mailing to the attention of the signatories to this Agreement at the addresses stated in the introductory paragraph to this Agreement.

 

IN WITNESS WHEREOF, the parties have executed this Agreement on  this 31st day of March, 2011.

	
COMPANY:

	  	
CONSULTANT

	  	  	  
	
Sun River Energy, Inc.

	  	
Cicerone Corporate Development, LLC

	
 

/s/ Donal R. Schmidt, Jr.

	  	
 

/s/ Harry McMillan

	
Name:  Donal R. Schmidt, Jr.

	  	
Name: Harry McMillan

	
Title:  CEO

	  	
Title: Managing Member

	
Date:  03/31/2011

	  	
Date: 03/31/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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