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China SHESAYS Medical Cosmetology Inc.: Exhibit 10.12 - Filed by newsfilecorp.com

Exhibit 10.12

Call Option Agreement

THIS CALL OPTION AGREEMENT (this "Agreement") is made on April 27th, 2010 by and among Kwai Man Yip,a Hong Kong (the "Grantor") , who is the sole shareholder of Bondy Nominees Limited, a Hong Kong corporation (the
“Bondy”), which Bondy is the sole member of Leading Pioneer Limited, a British Virgin Islands company (the “Company”), which the Company is one of the shareholders of Perfect Support Limited, a British Virgin
Islands company (the “Perfect Support”) and Yixiang Zhang, a PRC (the “Grantee”).  

RECITALS

Whereas, the Grantor owns 100% issued and outstanding shares of the Company through Bondy;

Whereas, the Company is one of the shareholders of Perfect Support, which intends to complete a reverse merger with SN STRATEGIES CORP, a public shell company, whose common stock is traded on the OTCBB market (the
"Public Company"), as a result of which Perfect Support will be a wholly-owned subsidiary of the Public Company and the Company will become one of the shareholders of the Public Company; 

Whereas, the Grantor has agreed to grant to each Grantee, and each Grantee has agreed to accept from the Grantor, an option (the “Option”) to purchase certain number of ordinary shares of the Company
(the "Option Shares") as set forth in Schedule A to this Agreement. 

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual promises hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties
hereby agree as follows: 

1. 

DEFINITIONS

Defined Terms : In this Agreement (including the Recitals and the Schedules), unless the context otherwise requires, the following words and expressions shall have the following meanings:  

"Business Day" means a day (other than Saturdays, Sundays and public holidays) on which banks are generally open for business in China; 

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"China" or "PRC" means the People's Republic of China;

	
	 	 	 
		
"Completion Date" means the date falling seven (7) Business Days after the service of the Exercise Notice by each Grantee on the Grantor;

	
	 	 	 
		
"Completion" means the completion of the sale to and purchase by each Grantee of the Option Shares under this Agreement;

	
	 	 	 
		
"Effective Date" means the date of Share Exchange;

	
	 	 	 
		
"Exercise" means the exercise by each Grantee or his/her Nominee(s) of the Option pursuant to the terms of this Agreement;

	
	 	 	 
		
"Exercise Notice" means the notice substantially in the form set out in Part I of Schedule B;

	
	 	 	 
		
"Exercise Price" means the exercise price to be paid by each Grantee (or his/her Nominee(s), as the case may be) to the Grantor in respect of the Option Shares issued to such Grantee as set forth opposite his name in
Schedule A;

	
	 	 	 
		
"Nominee" means such person nominated by a Grantee in the Transfer Notice to be the transferee of the Option or Option Shares;

	
	 	 	 
		
"Option Effective Date" has the meaning ascribed to it in Clause 2.3;

	
	 	 	 
		
"RMB" means the lawful currency of China;

	
	 	 	 
		
“Share Exchange” means the transaction, by means of one or more agreements, among the shareholders of Perfect Support,, on the one hand and the Public Company, on the other hand, by which the shareholders of
Perfect Support shallcontribute their shares of stock of Perfect Support, to the Public Company, and the Public Company shall issue stock to the shareholders of Perfect Support, with the result that Perfect Support shall become a wholly-owned
subsidiary of the Public Company and the former shareholders of Perfect Support, and their designees shall hold about 98.5 % of the outstanding capital stock of the Public Company.

	
	 	 	 
		
"Transfer Notice" means the notice substantially in the form set out in Part II of Schedule B;

	
	 	 	 
		
"US$" or "United States Dollar" means the lawful currency of the United States of America.

	

	 	 	 	 
	
 	
1.1. 		
Interpretation: Except to the extent that the context requires otherwise:

	
	 	 	 	 
	 		
1.1.1 		
words denoting the singular shall include the plural and vice versa; words denoting any gender shall include all genders; words denoting persons shall include firms and corporations and vice versa;

	
	 	 	 	 
	 		
1.1.2 		
any reference to a statutory provision shall include such provision and any regulations made in pursuance thereof as from time to time modified or re-enacted whether before or after the date of this Agreement and (so far as
liability thereunder may exist or can arise) shall include also any past statutory provisions or regulations (as from time to time modified or re-enacted) which such provisions or regulations have directly or indirectly replaced;

	

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1.1.3 		
the words "written" and "in writing" include any means of visible reproduction;

	
				
			
1.1.4 		
any reference to "Clauses", "Recitals" and "Schedules" are to be construed as references to clauses and recitals of, and schedules to, this Agreement; and

	
				
			
1.1.5 		
any reference to a time of day is a reference to China time unless provided otherwise.

	
				
	
    	
1.2. 		
Headings: The headings in this Agreement are inserted for convenience only and shall be ignored in construing this Agreement.

	
				
	
2. 		
OPTION

    
				
	
 	
2.1. 		
Option: The Grantor hereby irrevocably and unconditionally grants to each Grantee an Option for such Grantee to acquire from the Grantor, at the Exercise Price, at any time during the Exercise Period (defined below), to the
extent that the Option has vested, any or all of the Option Shares set forth opposite his/her name in Schedule A hereto, free from all claims, liens, charges, pledges, mortgages, trust, equities and other encumbrances, and with all rights
attaching thereto on the Completion Date.

	
				
	
    	
2.2. 		
Vesting Schedule: Subject to the terms and conditions hereto, the Option may be exercised, in whole or in part, in accordance with the following schedule:

	
				
	 		
34% of the Option Shares subject to the Option shall vest and become exercisable on October 1, 2010, 33% of the Option Shares subject to the Option shall vest and become exercisable on October 1, 2011 and 33% of the Option Shares
subject to the Option shall vest and become exercisable on October 1, 2012.

	
				
	
 	
2.3. 		
Exercise Period: The Option shall vest and become effective and exercisable at the times commencing on the dates set forth in Section 2.2 (the “Option Effective Date”) and shall expire five years from the
date of the Option. The Option may be exercised by each Grantee (or his Nominee on behalf of each Grantee), to the extent that the Option shall have vested, and only to that extent, at any time prior to five years from the date of this Option
(“Exercise Period”).

	
				
	
 	
2.4. 		
Nominees: The Grantee may, at any time during the Exercise Period, at his sole discretion, nominate one or more person(s) (each a “Nominee”) to be the transferee(s) of whole or part of the shares subject to
his Option, who shall hold and/or exercise the transferred Option on behalf of each Grantee.

	
				
	
    	
2.5. 		
Exercise Notice: The Option may be exercised by each Grantee or his Nominee(s), in whole or in part, at any time during the Exercise Period, by serving an Exercise Notice on the Grantor.

	
				
	
 	
2.6. 		
Exercise: The Grantor agrees that he shall, upon receipt of the Exercise Notice, transfer to each Grantee (or his/her Nominee(s), as the case may be) any and all of the Option Shares specified in the Exercise Notice, free
from all claims, liens, charges, pledges, mortgages, trust, equities and other encumbrances, and with all rights now or hereafter attaching thereto. The Option shall be exercisable only in compliance with the laws and regulations of the PRC and the British Virgin Islands, and such Grantee (or his
Nominee(s), as the case may be) shall complete any and all approval or registration procedures regarding the exercise of his Option at PRC competent authorities in accordance with applicable PRC laws and regulations.

	

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2.7. 		
Transfer Notice: In case that a Grantee transfers any or all of his/her Option to one or more Nominee(s) in accordance with Clause 2.4 above, each Grantee shall serve a Transfer Notice on the Grantor.

	
	 	 	 	 
	
 	
2.8. 		
Transfer to Nominees: The Grantor agrees that he shall, upon receipt of the Transfer Notice, take all actions necessary to allow the Nominee(s) to be entitled to any or all of Option Shares specified in the Transfer
Notice.

	
	 	 	 	 
	 		
Upon exercise by any Nominee(s) of the transferred Option on behalf of each Grantee, each Grantee shall serve the Exercise Notice on the Grantor in his own name for the exercising Nominee(s). Upon receipt of such Exercise Option,
the Grantor shall issue to such Nominee(s) any and all of the relevant Option Shares in the same manner as specified in Clause 2.6.

	
	 	 	 	 
	
 	
2.9. 		
Payment of Exercise Price: Upon Exercise of the Option in whole or in part, each Grantee (or his Nominee(s), as the case may be) shall pay the Exercise Price to the Grantor.

	
	 	 	 	 
	
 	
2.10. 		
The Grantor’s Obligation upon Exercise: The Grantor agrees that upon the Exercise of any Option by each Grantee (or his Nominee(s)), he shall cause and procure the number of Option Shares provided in the Exercise
Notice to be transferred to each Grantee (or his Nominee(s)) within seven (7) Business Days after the date of the Exercise Notice.

	
	 	 	 	 
	
3. 		
COMPLETION

    
	 	 	 	 
	
 	
3.1. 		
Time and Venue: Completion of the sale and purchase of the Option Shares pursuant to the Exercise shall take place at such place decided by each Grantee on the Completion Date and reasonably acceptable to the Grantor. The
parties agree that Hong Kong is a reasonable place for the completion of the sale.

	
	 	 	 	 
	
 	
3.2. 		
Business at Completion: At Completion of each Exercise, all (but not part only) of the following shall be transacted:

	
	 	 	 	 
	 		
3.2.1 		
the exercising Grantee shall pay the Exercise Price to the Grantor by wire transfer or such other method as shall be reasonably acceptable to Grantor;

	
	 	 	 	 
	 		
3.2.2 		
the Grantor shall, and to the extent that any action on the part of other shareholders or the directors is required, procure the then existing shareholders and directors of the Company to, within seven (7) Business Days after the
date of Exercise Notice, deliver to the exercising Grantee (or his Nominee(s), same below) the following documents and take all corporate actions necessary to give effect to such delivery:

	

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(a) 		
a share certificate or share certificates in respect of the number of the Option Shares exercised by each Grantee;

	
	 	 	 	 	 
	 	 		
(b) 		
a certified true copy of the register of members of the Company updated to show the entry of each Grantee as the holder of the Option Shares so exercised; and

	
	 	 	 	 	 
	 	 		
(c) 		
any other documents as each Grantee may reasonably believe necessary to give effect to the transfer of the exercised Option Shares.

	

				
	
4. 		
CONFIDENTIALITY

    
				
	 		
The transaction contemplated hereunder and any information exchanged between the Parties pursuant to this Agreement will be held in complete and strict confidence by the concerned Parties and their respective advisors, and will
not be disclosed to any person except: (i) to the Parties’ respective officers, directors, employees, agents, representatives, advisors, counsel and consultants that reasonably require such information and who agree to comply with the
obligation of non-disclosure pursuant to this Agreement; (ii) with the express prior written consent of the other Party; or (iii) as may be required to comply with any applicable law, order, regulation or ruling, or an order, request or direction of
a government agency; provided, however, that the foregoing shall not apply to information that: (1) was known to the receiving Party prior to its first receipt from the other Party; (2) becomes a matter of public knowledge without the fault of the
receiving Party; or (3) is lawfully received by the Party from a third person with no restrictions on its further dissemination.

	
				
	
5.	
GRANTOR’S UNDERTAKINGS

    
				
	 		
Without the prior written consent of each Grantee, the Grantor shall not and shall procure the Company not to(i) issue or create any new shares, equity, registered capital, ownership interest, or equity-linked securities, or any
options or warrants that are directly convertible into, or exercisable or exchangeable for, shares, equity, registered capital, ownership interest, or equity-linked securities of the Company, or other similar equivalent arrangements, (ii) alter the
shareholding structure of the Company (other than as a result of the transfer of existing shares pursuant to this agreement), (iii) cancel or otherwise alter the Option Shares, (iv) amend the register of members or the memorandum and articles of
association of the Company, (v) liquidate or wind up the Company, or (vi) act or omit to act in such a way that would be detrimental to the interest of each Grantee in the Option Shares. The Grantor shall disclose to each Grantee true copies of all
the financial, legal and commercial documents of the Company and the resolutions of the shareholders and the board of directors.

	
				
	
6. 		
MISCELLANEOUS

    
				
	
    	
6.1. 		
Indulgence, Waiver Etc: No failure on the part of any Party to exercise and no delay on the part of such Party in exercising any right hereunder will operate as a release or waiver thereof, nor will any single or partial exercise of any right under this Agreement preclude any other or further exercise of it or any other right or remedy.

	

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6.2. 		
Effective Date and Continuing Effect of Agreement: This Agreement shall take effect from the Effective Date. All provisions of this Agreement shall not, so far as they have not been performed at Completion, be in any
respect extinguished or affected by Completion or by any other event or matter whatsoever and shall continue in full force and effect so far as they are capable of being performed or observed, except in respect of those matters then already
performed.

	
	 	 	 	 
	
 	
6.3. 		
Successors and Assigns: This Agreement shall be binding on and shall ensure for the benefit of each of the Parties' successors and permitted assigns. Any reference in this Agreement to any of the Parties shall be construed
accordingly.

	
	 	 	 	 
	
 	
6.4. 		
Further Assurance: At any time after the date of this Agreement, each of the Parties shall, and shall use its best endeavors to procure that any necessary third party shall, execute such documents and do such acts and
things as any other Party may reasonably require for the purpose of giving to such other Party the full benefit of all the provisions of this Agreement.

	
	 	 	 	 
	
 	
6.5. 		
Remedies: No remedy conferred by any of the provisions of this Agreement is intended to be exclusive of any other remedy which is otherwise available at law, in equity, by statute or otherwise, and each and every other
remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law, in equity, by statute or otherwise. The election of any one or more of such remedies by any Party shall not constitute a
waiver by such Party of the right to pursue any other available remedies.

	
	 	 	 	 
	
 	
6.6. 		
Severability of Provisions: If any provision of this Agreement is held to be illegal, invalid or unenforceable in whole or in part in any jurisdiction, this Agreement shall, as to such jurisdiction, continue to be valid as
to its other provisions and the remainder of the affected provision; and the legality, validity and enforceability of such provision in any other jurisdiction shall be unaffected.

	
	 	 	 	 
	
 	
6.7. 		
Governing Law: This Agreement shall be governed by, and construed in accordance with, the laws of the British Virgin Islands.

	
	 	 	 	 
	
 	
6.8. 		
Dispute Resolution: In the event of any dispute, claim or difference (the "Dispute") between any Parties arising out of or in connection with this Agreement, the Dispute shall be resolved in accordance with the
following:

	
	 	 	 	 
	 		
(a) 		
Negotiation between Parties; Mediations. The Parties agree to negotiate in good faith to resolve any Dispute. If the negotiations do not resolve the Dispute to the reasonable satisfaction of all parties within thirty (30)
days, subsection (b) below shall apply.

	
	 	 	 	 
	 			
(b) Arbitration. In the event the Parties are unable to settle a Dispute in accordance with subsection (a) above, such Dispute shall be referred to and finally settled by arbitration at Hong Kong International Arbitration
Centre in accordance with the UNCITRAL Arbitration Rules (the “UNCITRAL Rules”) in effect, which rules are deemed to be incorporated by reference into this subsection (b). The arbitration tribunal shall consist of three arbitrators
to be appointed according to the UNCITRAL Rules. The language of the arbitration shall be English.

	

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6.9. 		
Counterparts: This Agreement may be signed in any number of counterparts, all of which taken together shall constitute one and the same instrument. Any Party hereto may enter into this Agreement by signing any such
counterpart.

	

[SIGNATURE PAGE FOLLOWS]

 

 

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IN WITNESS WHEREOF the Parties hereto have executed this Agreement on the date first above written and witnessed by Leung Yim.  . 

The Grantor

Signature: ________________________

                                   
Kwai Man Yip

Bondy Nominees Limited

Signature: ________________________

Name:     ________________________

Title: ________________________

Leading Pioneer Limited

Signature: ________________________

Name:     ________________________

Title: ________________________

Perfect Support Limited

Signature: ________________________

Name:     ________________________

Title: ________________________

The Grantee

Signature: ________________________

                                
Yixiang Zhang

Witness: 

Signature:________________________

                                
Leung Yim Ting

SCHEDULE A 

Grantee and Option
Shares

	
    Grantee 
	ID Card/Passport 	Number of 	Exercise Price 
	
      
	Number 	Option Shares 	 
    
	
    

    Yixiang Zhang 
	  	
    

    2,670,012 	
    

    total exercise 
	  	 
    	 
    	price is US$1.00 

 

SCHEDULE B

Part I

Form of Exercise Notice

To: Kwai Man Yip (the “Grantor”) 

From: Yixiang Zhang (the “Transferee”)

We refer to the Call Option Agreement (the "Option Agreement") dated April 27, 2010made among between the Grantee, the Grantor, Bondy Nominees Limited, Leading Pioneer Limited and Perfect Support Limited. Terms
defined in the Option Agreement shall have the same meanings as used herein. 

We hereby give you notice that we require you to sell to us / [Nominees' names] in accordance with the terms and conditions of the Option Agreement, the following Option Shares at the Exercise Price set out
below, subject to the terms and conditions set out in the Option Agreement. Completion shall take
place at [         ] on [                                      
] at the office of [                                             
]. 

	
Grantee 
	
Option Shares 	
Exercise Price 

    

	
    Yixiang Zhang	 	 
	 	 	 
	 	 	 
	 	 	 

Dated [           
]

Yours faithfully

___________________________

Name: Yixiang Zhang [Grantee] 

Party II 

Form of Transfer Notice 

To: Kwai Man Yip (the “Grantor”) 

From:Yixiang Zhang (the “Grantee”) 

We refer to the Call Option Agreement (the "Option Agreement") dated April 27, 2010 made among the Grantee and the Grantor, Bondy Nominees Limited, Leading Pioneer Limited and Perfect Support Limited. Terms
defined in the Option Agreement shall have the same meanings as used herein. 

We hereby give you notice that we will transfer to [Nominees' names] the following portion of the Option, expressed in terms of the number of Option Shares represented by the portion of the Option transferred in
accordance with the terms and conditions of the Option Agreement. 

 

	
Grantee 

    
	
Nominees 

 	
Option Shares Represented 

    

	
    Yixiang Zhang	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 Dated [               
] 

Yours faithfully 

___________________________

Name: Yixiang Zhang [Grantee]f8k060710_recoveryex10i.htm

Exhibit 10.1

 

 

Independent Director Appointment Agreement

 

 

This Independent Director Appointment Agreement (“Agreement”) is entered into and made effective on June 1, 2010, by and between Recovery Energy, Inc. a Nevada corporation (the “Company”), and Timothy Poster (“Poster”).

 

WHEREAS, the Company and Poster wish to retain Poster's services under the terms set forth herein;

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants set forth below, the parties agree as follows:

 

1. Appointment:  The Company hereby agrees to appoint Poster as an Independent Director on the Board of Directors (the “Board”) of the Company, and Poster hereby accepts such position, on the terms and conditions set forth below.  Poster’s authority shall be consistent with that normally associated with and appropriate for such a position.

 

2. Start Date:  Poster’s appointment will be effective on June 1, 2010 (the “Effective Date”).

 

3. Compensation and Expenses:

 

(a) Stock Compensation:

 

(i) Initial Grant.  On January 1, 2011, the Company will issue to Poster 500,000 shares of common stock (the “Initial Grant”), which common stock shall vest, subject to acceleration as provided below, in the following increments on the specified dates, so long as Poster is a director on such date:

 

(A) 250,000 shares shall vest on January 1, 2011; and

 

(B) 250,000 shares shall vest on January 1, 2012.

 

Notwithstanding any provision to the contrary, the Initial Grant shall vest upon the earlier to occur of a “Change in Control” of the Company (provided Poster is a director immediately prior to the "Change in Control") or the termination of Poster’s service as an Independent Director other than by Poster’s voluntary resignation or for “Cause” (as each term is defined below).

 

For purposes of this Agreement, “Change in Control” shall mean the occurrence, subsequent to the Effective Date, of any of the following: (A) by a transaction or series of transactions, any “person” or “group” (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of more than 30% of the combined voting power of the Company’s then outstanding securities (provided such person or group was not a beneficial owner of more than 30% of the combined voting power of the Company’s then outstanding securities as of the Effective Date); (B) as a result of any merger, consolidation, combination or sale or issuance of securities of the Company, or as a result of or in connection with a contested election of directors, the persons who were directors of the Company as of the Effective Date cease to constitute a majority of the Board; (C) by a transaction or series of transactions, the authority of the Board over any activities of the Company becomes subject to the consent, agreement or cooperation of a third party other than shareholders of the Company.

 

  

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For purposes of this Agreement, “Cause” shall mean (A) Poster’s conviction by a court of competent jurisdiction as to which no further appeal can be taken of a felony (other than a violation based on operation of a vehicle) or entering the plea of nolo contendere to such crime by Poster; (B) Poster’s commission of a crime involving fraud or intentional dishonesty, which results in Poster’s substantial personal enrichment and material adverse effect to the Company; (C) Poster’s becoming subject to any securities related sanctions related to the Company other than those based on an act of the Company itself for which Poster is charged solely as a result of his position with the Company.

 

(b) Cash Compensation:  On a quarterly basis, the Company shall pay to Poster $2,500 in cash compensation as directors fees.

 

(c) Expenses for this Agreement:  Within 30 days of receipt of an invoice, the Company will reimburse Poster for reasonable legal expenses incurred in connection with this Agreement.

 

(d) Registration of Shares.  Upon request of Poster from time to time, the Company will promptly file a registration statement with the Securities and Exchange Commission covering the shares of Common Stock contained in the Initial Grant, provided, that each such registration statement must cover a minimum of 100,000 shares of Common Stock.  The Company may include shares of Common Stock owned by other persons or to be issued by the Company  in each such registration statement.

 

4. Scope of Responsibilities.  As an Independent Director, subject to the terms of the immediately following paragraph, Poster shall be responsible for contributing to the development and implementation of the Company’s strategic plan, locating and reviewing prospective acquisition targets, overseeing the development plan of acquired properties, and providing input on the Company’s development plan.  Poster will initially serve on the Company’s Compensation Committee. Poster shall provide those services required of an Independent Director under the Company’s articles of incorporation and bylaws, as both may be amended from time to time, and under the General Corporation Law of Nevada, the federal securities laws and other state and federal laws and regulations, as applicable; provided, however, in the event of a conflict or inconsistency between this Agreement and any governing document of the Company, this Agreement shall control.  In performing such activities, Poster will devote only such time as he in his sole discretion deems necessary and appropriate.

 

Poster for his own account and in collaboration with others is engaged in and will continue to be engaged in oil and gas exploration, development and production outside of the Company’s business.  The Company expressly acknowledges and agrees that if Poster becomes aware of a business opportunity, he shall have no affirmative duty to present or make such opportunity available to the Company.  Furthermore, in the event Poster pursues an opportunity for his own account or in collaboration with others, the Company shall not be entitled to any interest in or profits from such property or otherwise claim any right or damages resulting from Poster’s pursuit of such opportunity.

 

The relationship between the parties shall be that of independent contracting parties. The Board and the Company expressly acknowledge and agree that neither shall have the right to direct Poster with respect to the means or manner in which he fulfills his obligations and responsibilities under this Agreement. The Board and the Company are solely interested in the results obtained by Poster in connection with his performance of services required hereunder.  Except as specifically provided in this Agreement, the Company hereby waives any conflict or potential conflict resulting from Poster’s activities conducted apart from the business of the Company.

 

  

2

  

 

5. Representations and Warranties.  The Company represents and warrants to Poster that this Agreement has been duly authorized, executed and delivered by the Company and, upon execution by Poster, constitutes a legal, valid and binding agreement of the Company, enforceable against the Company in accordance with its terms.

 

6. Indemnity.  The Company agrees that if Poster is made a party to or is threatened to be made a party to any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that Poster is or was a trustee, director or officer of the Company or any predecessor or successor to the Company or any of their affiliates or is or was serving at the request of the Company, any predecessor or successor to the Company or any of their affiliates as a trustee, director, officer, member, employee or agent of another corporation or a partnership, joint venture, limited liability company, trust or other enterprise, including, without limitation, service with respect to employee benefit plans, whether or not the basis of such Proceeding alleges action in an official capacity as a trustee, director, officer, member, employee or agent while serving as a trustee, director, officer, member, employee or agent, Poster shall be indemnified and held harmless by the Company to the fullest extent authorized by Nevada law, as the same exists or may hereafter be amended, against all Costs (as defined below) incurred or suffered by Poster in connection therewith, and such indemnification shall continue as to Poster even if he has ceased to be an officer, director, trustee or agent, or is no longer employed by the Company and shall inure to the benefit of his heirs, executors and administrators.  The foregoing indemnity is contractual and will survive any adverse amendment to or repeal of the bylaws or any other governing document of the Company.

 

(a) Costs.  For purposes of this Section 8, the term “Costs” shall include, without limitation unless deemed for cause, damages, losses, judgments, liabilities, fines, penalties, excise taxes, settlements, and costs, attorneys’ fees, accountants’ fees, and disbursements and costs of attachment or similar bonds, investigations, and any expenses of establishing a right to indemnification under this Agreement.

 

(b) Enforcement.  If a claim or request under this Section 8 is not paid by the Company or on its behalf, within thirty (30) days after a written claim or request has been received by the Company, Poster may at any time thereafter bring suit against the Company to recover the unpaid amount of the claim or request and if successful in whole or in part, Poster shall be entitled to be paid also the expenses of prosecuting such suit. All obligations for indemnification hereunder shall be subject to, and paid in accordance with, applicable Nevada law.

 

(c) Payment of Costs.  Costs incurred by Poster in connection with any Proceeding shall be paid by the Company within thirty (30) days notice of Poster’s request for such payment, provided that Poster has delivered to the Company written notification of (i) his agreement to reimburse the Company for Costs with respect to which Poster is not eligible for payment or reimbursement, and (ii) a statement of his good faith belief that he has satisfied the standard of conduct necessary for indemnification under this Section 8.

 

(d) Insurance.  The Company will maintain a Director’s and Officer’s Insurance Policy naming Poster as a covered party in amount deemed mutually sufficient to the Company and Poster.

 

  

3

  

 

7. Survival of Certain Provisions.  The representations, warranties and covenants and indemnity provisions contained in Sections 5 and 6 of this Agreement and the Company’s obligation to pay or issue to Poster, or to cause Poster to vest in, any compensation or compensatory awards earned pursuant hereto shall remain operative and in full force and effect regardless of any completion or termination of this Agreement and shall be binding upon, and shall inure to the benefit of any successors, assigns, heirs and personal representatives of the Company, the indemnified parties and any such person.

 

8. Notices.  Notice given pursuant to any of the provisions of this Agreement shall be in writing and shall be mailed or delivered (a) if to the Company, at its offices at 1515 Wynkoop Street, Suite 200, Denver, CO 80202, with a copy to Jeffrey Knetsch, at his office at Brownstein Hyatt Farber Schreck, LLP, 410 17th Street, Suite 2200, Denver, CO  80202 and (b) if to Poster, at his offices at 3131 Las Vegas Boulevard South, Las Vegas, NV 89109.

 

9. Counterparts.  This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument.

 

10. Third Party Beneficiaries.  This Agreement has been and is made solely for the benefit of the Parties hereto, and their respective successors and assigns, and no other person shall acquire or have any right under or by virtue of this Agreement.

 

11. Severability.  Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

12. Legal Fees.  If any arbitration or litigation shall rise between the Company and Poster regarding any provision of this Agreement, the Company shall reimburse Poster for all legal fees and expenses incurred by him in connection with such contest or dispute unless an unlawful act has preceded, but only if Poster substantially prevails in such action. Such reimbursement shall be made as soon as practicable following the resolution of such contest or dispute (whether or not appealed) to the extent the Company receives reasonable written evidence of such fees and expenses.

 

13. Reimbursement of Expenses.  Poster shall be reimbursed by the Company for all ordinary and necessary expenses incurred by Poster in the performance of his duties or otherwise in furtherance of the business of the Company, as well as any expenses specified in this Agreement, in accordance with the policies of the Company in effect from time to time.  No reimbursement will be made later than the close of the calendar year following the calendar year in which the expense was incurred.  Expenses eligible for payment or reimbursement in any one taxable year shall not affect the amount of expenses eligible for payment or reimbursement in any other taxable year, and the right to expense payment or reimbursement shall not be subject to liquidation or exchange for any other benefit.

 

14. Modification; Entire Agreement.  No provisions of this Agreement may be amended, modified, or waived unless such amendment or modification is agreed to in writing signed by Poster and by a duly authorized officer of the Company, and such waiver is set forth in writing and signed by the party to be charged. No waiver by either party hereto at any time of any breach by the other party hereto of any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. The respective rights and obligations of the parties hereunder of this Agreement shall survive the termination of this Agreement to the extent necessary for the intended preservation of such rights and obligations. Except or otherwise provided in Section 8 herein, the validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Colorado without regard to its conflicts of law principles.

 

  

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15. Choice of Law, Jurisdiction and Venue.  This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Colorado, without regard to Colorado’s choice of law rules.  Any and all actions, suits, or judicial proceedings upon any claim arising from or relating to this Agreement, subject to Section 8 herein, shall be instituted and maintained in the State of Colorado. If it is judicially determined that either party may file an action, suit or judicial proceeding in federal court, such action, suit or judicial proceeding shall be in the Federal District Court for the District of Colorado.

 

 

The parties’ authorized representatives have executed this Agreement as of the date above.

 

 

	 Timothy Poster	 	 	Recovery Energy, Inc	 
	 	 	 	 	 
	 	 	 	 	 
	
By:   /s/   Timothy Poster

	 	 	
By:   /s/   Roger A. Parker

	 
	
 

	 	 	
Name:  Roger A. Parker

	 
	
 

	 	 	
Title:    Chief Executive Officer

	 

 

 

  

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