Document:

ex10_1.htm

 

 

	
  

	
Exhibit 10.1

April 14, 2010

Joel Bustos

 

Dear Joel:

 

It gives me great pleasure to extend an offer of employment to you.  Should you accept, your position title will be Sr. Vice President of Global Operations, located at the Company headquarters in Walla Walla, WA, reporting directly to me.

 

Joel, we believe this position will expand your career development and provide you an exciting opportunity to further the integrity, continuity, accomplishments and the common discipline of our Global Operations team.

 

Your compensation structure is as follows:

Exempt Annual Base Salary:

$225,000 per calendar year, paid bi-weekly at the rate of $8,623.84.

Bonus Plan:

Annual Performance Incentive Plan at 100% of base salary (prorated for FY’10).   A formal written performance plan document will be provided to you following the acceptance of this position;  however, the initial performance plan will be based on exceeding our operating income targets for fiscal 2010, which ends September 30, 2010.

Long-Term Incentive Plan:

Key has a Long-Term Incentive Plan that takes the form of restricted stock grants.  The restricted stock grants to management staff are awarded on a discretionary and periodic basis.  The number of shares awarded each individual is determined as a function of their personal contribution and the stock price at point of grant.  Typically, a portion of management's stock grants are employment-based, and a portion are performance-based.

 

For your first restricted stock award, I am pleased to offer you the following employment-based restricted stock award valued at 162.5% of your starting annual base salary.  This award will be effective on your first day of employment and the number of shares will be determined by the market price (close) for Key's Common Stock on that day.  The restrictions on 8% of the shares will lapse on October 1, 2010.  The restrictions on the next 31% of the shares will lapse on October 1, 2011, and the restriction on the remaining 61% of the shares will lapse on October 1, 2012.  Each vesting is subject to your continued employment through the specified date.  This is an adjustment from the previous letter reflecting the shorter employment in fiscal 2010.

 

You will receive a performance evaluation at the conclusion of six months of service.

Please note that your employment with Key Technology is contingent upon successfully completing a pre-employment drug screen, criminal history, social security, education and reference check.  Human Resources will make the necessary arrangements with you once you have accepted the position.  In the meantime, please complete and return to HR the enclosed employment application and background authorization.

 

  

  

  

 

Benefits:

Provided we receive your completed enrollment forms, your group health, life, disability, and other standard benefit coverage will begin on your first day of employment.  Beginning with your first pay period, you will accrue vacation at the rate of 6.154 hours per pay period (160 hours per year).  You must complete six months of service prior to using any accrued vacation time.  You will be eligible to participate in our 401(k) and Employee Stock Purchase Plan the first of the month following 30-days of employment in accordance with the plan documents.

Relocation:

Human Resources will arrange for packing and transport of normal household goods to Walla Walla through Swartz Moving/ United Van Lines.  We will also pay for up to three house hunting trips and temporary housing in Walla Walla for you for up to six months from your date of hire.  This temporary housing allowance will include the cost of up to six trips home on weekends during that period, but excludes meals or other normal living expenses.

 

To assist in covering expenses related to selling your current home or expenses related to the purchase of a home in Walla Walla, Key will provide an Incidental Relocation Expense Allowance in the amount of up to $37,500 to be paid to you within 30 days of completing the purchase of a home that serves as your primary residence in Walla Walla.  Having our senior executives established in the Walla Walla community is important to us.  In addition to this specific Relocation Expense Allowance, all of the incentive and bonus compensation described in this offer letter is contingent upon your completing the transition of your primary residence to the Walla Walla community within 12 months of your first day of work.  Any incentive compensation that might otherwise be earned during the first 12 months of your employment prior to completing the transition will be held in a suspense account and will remain contingent upon completing the transition prior to the expiration of the 12-month period.

 

Relocation costs will be provided without tax consequence to you.  Expenses viewed as taxable income under IRS guidelines will be grossed up for tax purposes.

 

I-9 Requirement:

It is required by law that all persons working in the United States must provide proof of their employment eligibility by furnishing their employer with appropriate documentation on the first day of employment.  Therefore, should you accept our offer, you will need to provide us with the appropriate identification from the following lists (one from List A – or – one from List B and one from List C):

 

 

	
LIST A

	
LIST B

	
LIST C

	
U.S. Passport

	
Driver License or I.D. Card

	
Social Security Card

	
Permanent Resident Card

	
U.S. Military Card

	
Birth Certificate

	
Unexpired employment authorization document

	  	
Unexpired INS Employment

	
Unexpired foreign passport

	  	  
	
Alien Registration card with photograph

	  	  

 

Please let us know in advance of any complications.

 

Joel, we look forward to your acceptance and to your joining the Company.  Should you have any questions or need clarification about any of the terms in this offer, please don’t hesitate to contact me.

 

  

  

  

 

In order to officially confirm your acceptance of employment, please sign the attached confirmation page and return it to the Human Resources department as soon as possible.  The letter is yours to keep.  This offer shall remain open for seven (7) days from the date of this letter. Should you accept, we anticipate your start date to be on or around the week of June 14.

 

Joel, our intention is to keep your acceptance confidential until you have notified your current employer as to your decision to join Key Technology, and we will not make any public releases until you have advised us that you have communicated your intentions.

 

We look forward to having you on the team!

 

 

 

Sincerely

/s/ David M. Camp

President and CEO

 

 

cc:           Human Resources

 

 

BE ADVISED: Only offers that are made in writing and signed by an authorized Company representative will be considered valid and honorable by the Company.  Verbal offers will not be acknowledged or honored for any reason or from any person.

 

 

EMPLOYMENT CONFIRMATION

 

 

I, Joel Bustos, accept Key Technology, Inc.’s offer of employment for the position of Sr. Vice President of Global Operations.  I understand the terms and conditions of the employment offer as described in my offer letter.  I also acknowledge that the employment is of an “at will” nature, which means that I may resign at anytime and my Employer may discharge me at any time, with or without cause.

/s/ Joel Bustos________________________  4/21/10

Joel Bustos                                                                Date

/s/ David Camp_______________________ 4/15/10

David Camp                                                                Date

President and CEOexh10-1_promnote.htm

 

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT 10.1

 

SECURED PROMISSORY NOTE TO WEALTH PRESERVATION

DEFINED BENEFIT PLAN DATED JUNE 2, 2010

 

 

  

  

  

SECURED PROMISSORY NOTE

 

 

	$100,000.00	June 2, 2010 

 

 

FOR VALUE RECEIVED, PetroHunter Energy Corporation (the “Maker”), hereby promises to pay to the order of Wealth Preservation Defined Benefit Plan or its assigns (the “Holder”), in lawful money of the United States at the address of Holder set forth below, the principal amount of One Hundred Thousand Dollars (US $100,000.00), together with interest (as hereinafter defined).

This Promissory Note (the “Note”) has been executed by the Maker on the date set forth above (the “Effective Date”).

 

1.           Interest.  Interest shall accrue on this Note, commencing on the Effective Date, at the rate of Fifteen Percent (15%) per annum, and shall be payable when the principal amount is due and payable.

 

               2.           Maturity.  The entire balance of principal and accrued interest and other amounts then outstanding on this Note are due and payable forty-five (45) days from the Effective Date (such date being referred to herein as the “Maturity Date”).  Upon the occurrence of an Event of Default (as hereinafter defined), all unpaid principal and accrued interest on this Note shall immediately become due.

 

3.           Application of Payments.

 

3.1           Except as otherwise expressly provided herein, each payment of outstanding principal amount and interest on this Note shall be applied (i) first to the repayment of any sums incurred by the Holder for the payment of any expenses in enforcing the terms of this Note, (ii) then to the payment of interest, and (iii) then to the reduction of the principal.

 

3.2           Upon payment in full of the principal of, and accrued and unpaid interest on, this Note, this Note shall be marked "Paid in Full" and returned to the Maker.

 

4.           Prepayment.  This Note may be prepaid in part or in full at any time without any penalty.

 

5.           Collateral.  Payment of this Note is secured by a number of shares of common stock of Falcon Oil & Gas Ltd. owned by Maker equal to three (3) times the principal amount of this Note.  The shares shall be valued on the last business day of each week that this Note is outstanding, using the average of the volume-weighted average prices for each of the trading days during that week.  Maker shall set aside a sufficient number of shares for this purpose.

 

6.           Events of Default.  The occurrence of any of the following events (each an “Event of Default”) shall constitute an Event of Default of the Maker: (i) the Maker defaults in the payment of interest or principal on the Note; (ii) the application for the appointment of a receiver or custodian for the Maker or the property of the Maker; (iii) the entry of an order for relief or the filing of a petition by or against the Maker under the provisions of any bankruptcy or insolvency law; (iv) any assignment for the benefit of creditors by or against the Maker; (v) the Maker becomes insolvent; (vi) the Maker fails or refuses to execute any document or instrument required pursuant to this Note, or violates any provision of such document or instrument.

 

7.           Miscellaneous.

 

7.1           Successors and Assigns.  Subject to the exceptions specifically set forth in this Note, the terms and conditions of this Note shall inure to the benefit of and be binding upon the respective executors, administrators, heirs, successors and assigns of the parties.

 

7.2           Titles and Subtitles.  The titles and subtitles of the Sections of this Note are used for convenience only and shall not be considered in construing or interpreting this agreement.

 

  

  

  

7.3           Notices.  Any notice, request or other communication required or permitted hereunder shall be in writing and shall be delivered personally or by facsimile (receipt confirmed electronically) or shall be sent by a reputable express delivery service or by certified mail, postage prepaid with return receipt requested, addressed as follows:

 

	
If to the Holder to:

	
If to the Maker to:

	 	 
	
Wealth Preservation Defined Benefit Plan

38 Windsor Lane

Ramsey, NJ 07446

Fax:  (201) 818-0672

	
PetroHunter Energy Corporation

1600 Stout Street, Suite 450

Denver, Colorado 80202

Fax:  (720) 889-8371

Either party hereto may change the above-specified recipient or mailing address by notice to the other party given in the manner herein prescribed.  All notices shall be deemed given on the day when actually delivered as provided above (if delivered personally or by facsimile, provided that any such facsimile is received during regular business hours at the recipient's location) or on the day shown on the return receipt (if delivered by mail or delivery service).

 

7.4           Governing Law.  The terms of this Note shall be construed in accordance with the laws of the State of Colorado.  Jurisdiction and venue shall be exclusively in a state or federal court located in Denver, Colorado.

 

7.5           Waiver and Amendment.  Any term of this Note may be amended, waived or modified with the written consent of the Maker and the Holder of this Note.

 

7.6           Remedies; Attorneys Fees.  No delay or omission by the Holder in exercising any of his rights, remedies, powers or privileges hereunder or at law or in equity and no course of dealing between the Holder and the Maker or any other person shall be deemed a waiver by the Holder of any such rights, remedies, powers or privileges, even if such delay or omission is continuous or repeated, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise thereof by the Holder or the exercise of any other right, remedy, power or privilege by the Holder.  The rights and remedies of the Holder described herein shall be cumulative and not restrictive of any other rights or remedies available under any other instrument, at law or in equity.  If an Event of Default occurs, the Maker agrees to pay, in addition to the principal and interest payable hereunder, reasonable attorneys’ fees and any other costs incurred by the Holder in connection with his pursuit of his remedies under this Note.

 

IN WITNESS WHEREOF, the Maker has caused this Note to be signed in its name as of the Effective Date.

 

MAKER:

PETROHUNTER ENERGY CORPORATION

By:  /s/ Paul Maniscalco                               

Paul Maniscalco

Corporate Secretary

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