Document:

f8k101513ex10i_stratex.htm

Exhibit 10.1

 

 

CONSULTING AGREEMENT

This Consulting Agreement (this “Agreement”) is made effective as of the 15th   day of October, 2013 (the “Effective Date”), by and between Stratex Oil & Gas Holdings, Inc., a Colorado corporation (the “Company”) with offices located at 30 Echo Lake Road, Watertown CT 06795 (the “Premises”) and Alan Gaines, an individual residing at 23 Cardinal Road, Weston CT 06883 (the “Consultant”).

RECITALS

WHEREAS, Company desires to engage the Consultant to assist the Chairman of the Board/CEO review current projects, identify new oil & gas acquisitions; and aid in the financing of future acquisitions and/or business combinations, pursuant to the terms of this Agreement; and

WHEREAS, the Consultant accepts said engagement upon the terms and conditions set forth in this Agreement.

NOW THEREFORE, for good and valuable consideration, the receipt of which is acknowledged by the Parties, it is hereby agreed as follows:

AGREEMENT

1.           Hiring of Consultant.  Company hereby hires the Consultant, to review both current and future opportunities for the Company, which may include review of acquisitions and/or merger candidates, analysis of prospective leasehold purchases, and securing of financing for the aforementioned, if necessary. In performing his duties hereunder, Consultant shall serve only as an independent contractor and Consultant expressly acknowledges that he is not an employee of the Company and that nothing contained herein shall be construed as an offer of employment or confer any benefits of employment upon the Consultant.

2.           Expense Reimbursement.  Consultant shall be entitled to be reimbursed monthly for reasonable out-of-pocket costs and expenses related to any activity allowed by this Agreement.

 

    3.           Term. The term (“Term”) of this Agreement shall commence on the Effective Date and shall be in force for a period of one year, ending October 15, 2014, unless sooner extended by agreement of the parties.  The Agreement shall automatically extend an additional year unless the Company gives written notice to the Consultant at least sixty (60) days prior to the termination date of its intention to terminate this Agreement or to renegotiate its terms, the Agreement shall renew and continue in effect for successive one-year periods.  Either party shall have the right to terminate this Agreement prior to the expiration of the Term provided, however, that (i) in the event of termination by Consultant, Consultant shall no longer be entitled to compensation as set forth in Section 4 and (ii) in the event of termination by the Company, Consultant shall be entitled to receive a lump sum payment in an amount equal to the product of (x) his monthly compensation as set forth in Section 4 and (y) the number of months that would have been remaining in the Term had the Agreement not been terminated.

  

  

  

 

4.           Compensation.  During the Term of this Agreement, Consultant shall be entitled to receive as compensation, the sum of $15,000.00 per month.  Consultant shall bear the full responsibility of paying all taxes with respect to his compensation. Consultant will also receive 5 shares of preferred stock.

 

   5.           Grant of Stock Options. Concurrent with the execution of this Agreement, the Company shall grant a stock option (“Stock Option”) to the Executive, exercisable to purchase up to an aggregate of 8% of the Company’s fully diluted shares. Fully diluted shall be defined as common stock outstanding to include any options or warrants within 20% of exercise price at the time Consultant exercises this option. Fully diluted will not calculate any shares issued to extinguish the preferred shares outstanding. The Stock Option shall be exercisable at an exercise price of $0.15 per share for a period of five (5) years and shall permit for cashless exercise.

6.           Non-Competition. Consultant expressly acknowledges that, in order to protect the Company, and persons and entities that do business with the Company, it is essential condition of this Agreement that for so long as this Agreement remains in force and effect and for a period of six (6) months thereafter, Consultant will not:

	
(a)  

	
directly or indirectly, for his own account or on behalf of any other person or as an employee, consultant, manager, agent, broker, stockholder, director or officer of a corporation, investor, owner, lender, partner, joint venture, or otherwise engage in any business which is then engaged, or proposes to engage, in the drilling or production of natural gas or oil within any one (1) mile radius from any property in which the Company has an ownership interest;

	
(b)  

	
solicit, entice or induce any customer of the Company to cease or limit its business with the Company, or to become a customer of any other person (including, without limitation, Consultant) or entity engaged in any activity or business competitive with the Company if as a consequence thereof such party shall (i) reduce the business it does with the Company or (ii) interfere with the relationship between the Company and any customer, and Consultant shall not cause, assist or facilitate any person in taking any such prohibited actions; and

	
(c)  

	
solicit, attempt to solicit or entice away from the Company’s retention, any employee or consultant of the Company, or disrupt or interfere with, or attempt to disrupt or interfere with, the Company’s relationship with any such person, and the Consultant shall not cause, assist or facilitate any person or entity in taking such prohibited action.

  

  

  

 

7.           Company Property.  All inventions, improvements, systems, designs, ideas, business plans, sales techniques, approaches, surveys, customer lists, files, notes, records and any other business documentation or products (whether written or electronic) that Consultant makes or conceives (either individually or with others) or that are made available to Consultant during the period that this Agreement is in force and effect, relating to and connected with his retention hereunder, or that Consultant utilizes in carrying out his duties or responsibilities to the Company, shall be the Company’s exclusive property, and Consultant assigns to the Company all of his rights, if any, in and to all such property.

8.           Injunctive Relief.  Consultant expressly acknowledges and agrees that a breach by the Consultant of the covenants set forth in paragraphs 6 and 7 above will cause the Company irreparable injury and damage for which there is no adequate remedy available at law.  Consultant further expressly acknowledges and agrees that the Company shall be entitled, in addition to any remedies available at law, to injunctive or other equitable relief to prevent a breach of any provision of this Agreement by Consultant without any requirement or showing that the Company has suffered damages from such breach.

8.           Governing Law.   This Agreement shall be governed by and construed in accordance with the domestic laws of the Connecticut without giving effect to any choice or conflict of law provision or rule (whether of the State of Connecticut or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Connecticut.

9.           Entire Agreement.  This Agreement constitutes the entire agreement between the parties and supersedes any prior understandings, agreements, or representations by or between the parties, written or oral, to the extent they related in any way to the subject matter hereof.

 

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IN WITNESS WHEREOF, the parties hereto have caused the Agreement to be executed under seal as of the day and year first written above.

 

COMPANY:

 

STRATEX OIL & GAS, INC.,

By:   /s/ Stephen Funk                                                                           

Its:  Chief Executive Officer and Chief Financial Officer

CONSULTANT:

 /s/ Alan Gaines                                                                

ALAN GAINESEX-10.1

SECOND AMENDMENT TO MASTER REPURCHASE AGREEMENT

THIS SECOND AMENDMENT TO MASTER REPURCHASE AGREEMENT (this “Amendment”), dated as of October 11,
2013 (the “Effective Date”), is made by and among CITIBANK, N.A. (together with its successors
and/or assigns, “Buyer”), RAIT CMBS CONDUIT I, LLC, a Delaware limited liability company (“Seller”)
and, for the purpose of acknowledging and agreeing to the provision set forth in Section 3
hereof, RAIT FINANCIAL TRUST., a Maryland real estate investment trust (“Guarantor”).

W I T N E S S E T H:

WHEREAS, Seller and Buyer have entered into that certain Master Repurchase Agreement, dated as
of October 27, 2011, as amended by that certain First Amendment to Master Repurchase Agreement and
Other Transaction Documents, dated as of June 30, 2013 (as the same may be further amended,
supplemented, extended, restated, replaced or otherwise modified from time to time, the “Repurchase
Agreement”);

WHEREAS, all capitalized terms used herein and not otherwise defined shall have the respective
meanings set forth in the Repurchase Agreement;

WHEREAS, Seller and Buyer desire to modify certain terms and provisions of the Repurchase
Agreement as set forth herein.

NOW, THEREFORE, in consideration of ten dollars ($10) and for other good and valuable
consideration, the receipt and legal sufficiency of which are hereby acknowledged, Seller and Buyer
covenant and agree as follows as of the Effective Date, and Guarantor acknowledges and agrees as to
the provision set forth in Section 3 as of the Effective Date:

1. Modification of Repurchase Agreement. The Repurchase Agreement is hereby modified
as of the Effective Date as follows:

(a) The definition of “Facility Expiration Date” in Section 2 of the Repurchase Agreement is
hereby deleted in its entirety and replaced with the following:

“Facility Expiration Date” shall mean October 27, 2015.

2. Seller’s Representations. Seller has taken all necessary action to authorize the
execution, delivery and performance of this Amendment. This Amendment has been duly executed and
delivered by or on behalf of Seller and constitutes the legal, valid and binding obligation of
Seller enforceable against Seller in accordance with its terms subject to bankruptcy, insolvency,
and other limitations on creditors’ rights generally and to equitable principles. No Event of
Default has occurred and is continuing, and no Event of Default will occur as a result of the
execution, delivery and performance by Seller of this Amendment. Any consent, approval,
authorization, order, registration or qualification of or with any Governmental Authority required
for the execution, delivery and performance by Seller of this Amendment has been obtained and is in
full force and effect (other than consents, approvals, authorizations, orders, registrations or
qualifications that if not obtained, are not reasonably likely to have a Material Adverse Effect).

3. Reaffirmation of Guaranty. Guarantor has executed this Amendment for the purpose
of acknowledging and agreeing that, notwithstanding the execution and delivery of this Amendment
and the amendment of the Repurchase Agreement hereunder, all of Guarantor’s obligations under the
Guaranty remain in full force and effect and the same are hereby irrevocably and unconditionally
ratified and confirmed by Guarantor in all respects.

4. Conditions Precedent. This Amendment and its provision shall become effective on
the first date on which all of the following conditions precedent are satisfied: (i) execution and
delivery of this Amendment by a duly authorized officer of each of Seller, Buyer and Guarantor and
(ii) payment by Seller to Buyer of the amount contemplated in that certain Fee Letter (Second
Amendment), dated as of the date hereof, by and between Seller and Buyer.

5. Agreement Regarding Expenses. Seller agrees to pay Buyer’s reasonable out of
pocket expenses (including reasonable legal fees) incurred in connection with the preparation and
negotiation of this Amendment promptly (and after Buyer or Buyer’s counsel gives Seller an invoice
for such expenses).

6. Full Force and Effect. Except as expressly modified hereby, all of the terms,
covenants and conditions of the Repurchase Agreement and the other Transaction Documents remain
unmodified and in full force and effect and are hereby ratified and confirmed by Seller. Any
inconsistency between this Amendment and the Repurchase Agreement (as it existed before this
Amendment) shall be resolved in favor of this Amendment, whether or not this Amendment specifically
modifies the particular provision(s) in the Repurchase Agreement inconsistent with this Amendment.
All references to the “Agreement” in the Repurchase Agreement or to the “Repurchase Agreement” in
any of the other Transaction Documents shall mean and refer to the Repurchase Agreement as modified
and amended hereby.

7. No Waiver. The execution, delivery and effectiveness of this Amendment shall not
operate as a waiver of any right, power or remedy of the Buyer under the Repurchase Agreement, the
Guaranty, any of the other Transaction Documents or any other document, instrument or agreement
executed and/or delivered in connection therewith.

8. Headings. Each of the captions contained in this Amendment are for the convenience
of reference only and shall not define or limit the provisions hereof.

9. Counterparts. This Amendment may be executed in any number of counterparts, and
all such counterparts shall together constitute the same agreement. Signatures delivered by email
(in PDF format) shall be considered binding with the same force and effect as original signatures

10. Governing Law. This Amendment shall be governed in accordance with the terms and
provisions of Section 20 of the Repurchase Agreement.

[No Further Text on this Page; Signature Pages Follow]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by
their duly authorized representatives as of the day and year first above written and effective as
of the Effective Date.

SELLER:

RAIT CMBS CONDUIT I, LLC

a Delaware limited liability company

	 	 	 	By:
RAIT Funding, LLC, a Delaware limited liability
company, its sole Member

	 	 	 	By:
Taberna Realty Finance Trust, a Maryland
real estate investment trust, its sole
Member

By: /s/ Kenneth R.
Frappier

	 	 	Name: Kenneth R. Frappier

Title: Executive Vice President

GUARANTOR:

RAIT FINANCIAL TRUST

a Maryland real estate investment trust

By: /s/ Kenneth R. Frappier

Name: Kenneth R. Frappier

Title: Executive Vice President

[Signatures Continued on Next Page]

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BUYER:

CITIBANK, N.A.

By: /s/ Richard B. Schlenger

Name: Richard B. Schlenger

Title: Authorized Signatory

2

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