Document:

aecexh1002.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

	Exhibit 10.02

	ASPEN EXPLORATION CORPORATION

AMENDED ROYALTY AND WORKING INTEREST PLAN

     The Corporation believes that a portion of the compensation for executives and other personnel directly supporting exploratory or development ventures for oil and gas and other mineral should be measured by the success of such operations. The Royalty and Working Interest Plan (the “Plan”) has been established to provide this element of compensation.

	ARTICLE I

DEFINITIONS

     Section 1.01. The term “Corporation” means Aspen Exploration Corporation, a Delaware corporation.

     Section 1.02. The “Management Committee” shall have responsibility for administration of the Plan. The Management Committee shall be appointed by the board of directors of the Corporation and shall consist of three persons who shall serve until their successors are appointed and approved by the board of directors. Any action taken by the Management Committee shall require the concurrence of not less than two members of such committee. The Management Committee shall have the responsibility of reviewing and designating royalties and working interests hereunder.

     Section 1.03. The term “Participants” means employees of the Corporation who are designated by the Management Committee as having direct responsibility relating to:

     (a) Identification and selection of exploratory or development prospects in which the Corporation participates in oil and gas drilling;

     (b) Evaluating and operating exploratory or development wells;

     (c) Evaluation and acquisition of producing properties;

     (d) Originating, evaluating, assessing and sampling, testing and mapping of mineral prospects or properties other than oil and gas;

     (e) Identification and selection of mineral prospects and properties other than oil and gas.

	

	
ARTICLE II

PLAN PROPERTIES

     Section 2.01. Selection of Properties. The Management Committee shall select an overriding royalty or similar interest of an Exploratory or Development Property or Other Mineral Property for distribution to the Participants in the Plan. The basis for allocating an
interest shall be documented and placed in a file of the Management Committee. The selection of properties shall be based upon all relevant factors such as sound corporate management and existing royalty burdens on the property.

     Section 2.02. Limitation on Properties. The total overriding royalty or similar interest set aside for distribution to the Participants in an Exploratory of Development Property or Other Mineral Property shall be determined by the Management Committee.

	
ARTICLE III

	
PARTICIPANTS’ INTERESTS

     Section 3.01. Selection of Participants. The Participant (s) in a designated property shall be selected in the sole discretion of the Management Committee. Once an overriding royalty working interest of other interest is determined and the Participants for that
interest selected, the number of Participants may not be changed unless an additional interest is set aside for distribution to Participants in the Plan.

     Section 3.02. Notification and Assignment. The Management Committee shall promptly notify each Participant of his interest in the property. When all Participants in a property and their respective interests are determined, the Corporation shall cause an appropriate
assignment of each Participant’s interest to be made to him.

	
ARTICLE IV

MISCELLANEOUS

     Section 4.01. Decisions of the Corporation are final. All decisions concerning the Plan made by the Corporation shall be final and binding on all Participants in the Plan. Additional interests in Properties set aside for distribution to
Participants in the Plan may be assigned to additional Participants in the discretion of the Management Committee but no participant’s interest in a property, once assigned, may decrease.

     Section 4.02. Records of Management Committee. The Management Committee shall maintain records, available for inspection by Participants at all convenient times, showing all properties which form a basis for the interests in the Plan and the relative interests of the Participants in the properties.

	ARTICLE V

	TERMINATION AND AMENDMENT

     The Management Committee reserves the right to amend or terminate the Plan at any time, without prior notice. Each amendment or termination shall be effective on the date that the Management Committee shall determine. No amendment or termination of the Plan shall affect the interests in any properties assigned to the Participants.

Dated this __2nd____ day of _____February_________, 1986.

	ASPEN EXPLORATION CORPORATON

	/s/ R. V. Bailey______________________

R. V. Bailey, Chairman

	
/s/ Robert F. Sheldon_________________

Robert F. Sheldon, Director

/s/ R. G. Talley______________________

R. G. Talley, Directoraecexh1004.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

	Exhibit 10.04

	AMENDMENT TO AND EXTENSION OF

EMPLOYMENT AGREEMENT

     Aspen Exploration Corporation (“Aspen”) entered into an employment agreement with Robert A. Cohan on January 1, 2003 (the “Employment Agreement”).

     On April 22, 2005, the board of directors of Aspen approved an extension of the Employment Agreement from its current expiration date of December 31, 2005 and an increase in his compensation.

NOW, THEREFORE, for good and valuable consideration Aspen and Mr. Cohan agree to amend the Employment Agreement as follows:

	1.      	Paragraph 1 of the Employment Agreement is hereby amended to provide for an expiration date of December 31, 2008. 
	 
	2.      	Paragraph 2(a) of the Employment Agreement is hereby amended to reflect Mr. Cohan’s present positions as president, treasurer, chief executive officer, and chief financial officer of Aspen. 
	 
	3.      	Paragraph 3(a) is hereby amended to reflect that, commencing January 1, 2006, Mr. Cohan’s salary will be increased to $160,000 per year, to be paid in accordance with Aspen’s normal payroll procedures. 
	 
	4.      	If any provision of the Employment Agreement is inconsistent with the terms of this Amendment and Extension, the terms of this Amendment and Extension control. 
	 
	5.      	All other provisions of the Employment Agreement remain in effect and operative through the term of the Employment Agreement and thereafter, in accordance with its terms. 
	 

     IN WITNESS WHEREOF, the Board of Directors of Aspen approved this Amendment to and Extension of Employment Agreement by resolutions dated April 22, 2005, and the Parties have executed this Agreement to be effective immediately.

	ASPEN EXPLORATION CORPORATION

					
	By:  	  	/s/ R. V. Bailey  	  	May 16, 2005  
	                                       R. V. Bailey, Chairman  	  	  

	EMPLOYEE

					
	By:  	  	/s/  Robert A. Cohan  	  	May 12, 2005  
	                                        Robert A. Cohanaecexh1007.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

	Exhibit 10.06

OPTION PLAN #2

ACTION BY THE UNANIMOUS WRITTEN CONSENT OF

THE BOARD OF DIRECTORS OF

ASPEN EXPLORATION CORPORATION

     Pursuant to the provisions of Delaware corporate law that provide that any action which may be taken at a meeting of the directors of the corporation may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by all the directors entitled to vote with respect to the subject matter thereof, the undersigned, being all of the directors of Aspen Exploration Corporation (hereinafter the "Company") waive any and all notice that may be required to be given with respect to a meeting of directors of the Corporation and take, ratify, confirm and approve the following action by unanimous written consent:

     The following actions by Unanimous Written Consent are adopted by the Board of Directors of Aspen Exploration Corporation ("the Company"), effective as of March 14, 2002:

     The following resolutions formalize the decisions made by the Board of Directors of Aspen Exploration Corporation (the "Company") to grant options to certain officers, directors, employees and consultants during telephonic conversations on March 14, 2002, and should be incorporated into the minutes of that meeting.

     WHEREAS, the directors, officers, employees and consultants have been working for the Company for a significant period of time, and the Company would like to encourage their continued performance with option grants as described herein:

	Option Grant

RESOLVED, that non-qualified stock options expiring as set forth below, to purchase shares of the Company's restricted common stock be and hereby are granted to the following persons, on the following terms, pursuant to the Stock Option Agreement in the form attached hereto, subject to his execution be required to execute and return to the Company such option agreement (which form be and hereby is authorized and approved):

                  R. V. Bailey, options to acquire 150,000 shares 

                  Robert A. Cohan, options to acquire 250,000 shares 

                  Robert F. Sheldon, options to acquire 150,000 shares 

                  Ray K. Davis, options to acquire 75,000 shares 

                  Judith L. Shelton, options to acquire 51,000 shares

and further

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RESOLVED, that each of the options issuable to Ms. Shelton and Messrs. Bailey, Sheldon and Davis shall vest and each of the options shall be exercisable at exercise prices as follows

	·     	1/3 of such options on August 15, 2003 and are exercisable at $0.57 per share; 
	·     	1/3 of such options on August 15, 2004 and are exercisable at $0.57 per share; and 
	·     	1/3 of such options on August 15, 2005 and are exercisable at $0.57 per share 
	 

and all of such options expire, unless exercised, at 5:00 pm Mountain time on
August 15,2006.

RESOLVED, that each of the options issuable to Mr. Cohan shall vest and each of the options shall be exercisable at exercise prices as follows:

	·     	1/5 of such options on August 15, 2003 and are exercisable at $0.57 per share;
	·     	1/5 of such options on August 15, 2004 and are exercisable at $0.57 per share;
	·     	1/5 of such options on August 15, 2005 and are exercisable at $0.57 per share;
	·     	1/5 of such options on August 15, 2006 and are exercisable at $0.57 per share; and
	·     	1/5 of such options on August 15, 2007 and are exercisable at $0.57 per share
	 

and all of such options expire, unless exercised, at 5:00 pm Mountain time on August 15, 200
face="TimesNewRomanPSMT,Times New Roman,Times,serif" color=#ff0
0ff>8.

RESOLVED, there be and hereby are reserved for issuance pursuant to the options being granted hereby 676,000 shares of the Company's common stock to allow for the issuance of the stock underlying the options upon the exercise thereof; and further

RESOLVED, that upon exercise of the options and receipt of consideration in accordance with the option agreement, the shares issuable pursuant thereto, will be legally and validly issued, fully paid, and non-assessable; and further

	Miscellaneous Resolutions

RESOLVED, that the exercise price of the options granted was determined based on the average bid price of the Company’s common stock for the ten trading days preceding the date of this consent, and as a result the Board of Directors has determined that there is no compensation element to the grant; and further

RESOLVED, that each of the recipients of options shall be responsible for their own obligations pursuant to the Internal Revenue Code of 1986, as amended (the "Code") and appropriate state taxation laws, and that the appropriate officers of the Company be and hereby are authorized and directed to issue to such persons appropriate reports reporting the grants to the Internal Revenue Service and appropriate state authorities; and further

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RESOLVED, that each of the recipients shall be responsible for their personal reporting requirements under the Securities Exchange Act of 1934, as amended including (without limitation) Section 16(a) thereof; and further

RESOLVED, that the proper officers of the Company hereby are authorized to make all required regulatory filings with the Securities and Exchange Commission (the "SEC"), if any, related to the issuance of the stock options referenced in the foregoing resolutions;

RESOLVED, that the proper officers of the Company are hereby authorized and directed to take all such further action and to execute and deliver all such instruments and documents in the name and on behalf of the Company, and under its corporate seal or otherwise, as in their judgment shall be necessary, proper or advisable in order to fully carry out the intent and to accomplish the purposes of the foregoing resolutions;

RESOLVED, that if or when any of the parties, whether they be directors, employees or consultants, ceases to be affiliated with, or ceases to be employed by the Company, the unexercised options attributed to that person shall expire within three (3) months of such event and shall not thereafter be exercisable. Any unexercised options shall also expire upon the death of any of the parties.

The foregoing resolutions were approved by the undersigned at the meeting held as stated above.

 

			
	March 14, 2002 	 	           /s/ R. V. Bailey 
	 	 	R.V. Bailey, Chairman 

			
	March 14, 2002 	 	         /s/ Robert A. Cohan 
	 	 	Robert A. Cohan, Director 

			
	March 14, 2002 	 	          /s/ Robert F. Sheldon 
	 	 	Robert F. Sheldon, Director 

 

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