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AMENDMENT TO CONSULTING AGREEMENT
THIS AGREEMENT is made as of the 1st day of January, 1998.
BETWEEN:
OPTIMA PETROLEUM CORPORATION,
Suite 600 - 000 Xxxx Xxxxxx,
Xxxxxxxxx, Xxxxxxx Xxxxxxxx,
X0X 0X0
(the "Company")
AND:
XXXXXXXXXX EQUITIES CORPORATION
Suite 600 - 000 Xxxx Xxxxxx,
Xxxxxxxxx, Xxxxxxx Xxxxxxxx,
X0X 0X0
(the "Consultant")
WHEREAS:
A. The Consultant and the Company entered into a Consulting Agreement made as
of February 1, 1996 (the "Consulting Agreement"), a copy of which appears as
Schedule "A" hereto;
B. The Consultant and the Company wish to amend the Consulting Agreement upon
the terms and conditions hereinafter set forth;
NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the premises
and of the covenants and agreements herein contained, the parties hereto
covenant and agree as follows:
1. Paragraph 2 of the Consulting Agreement is amended to extend the term of
the Agreement by a further 12 month period expiring on December 31, 1998.
2. Paragraph 7.2 of the Consulting Agreement is deleted in its entirety and
replaced with the following:
"7.2 In the event of a merger, takeover, amalgamation or change of
control of the Company which results in the termination of the
Consultant's services at any time prior to December 31, 1998, the
provisions of paragraph 7.1 will not apply to such a termination and
the Company will pay the Consultant an amount equal to 12 months of
fees under this Agreement. The Consultant agrees to accept the
termination payment in full satisfaction of any claim it may have
against the Company whether under the terms of this Agreement or
otherwise."
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3. Save and except as herein amended, the Consulting Agreement shall be and
remains in full force and effect on the terms set forth therein.
IN WITNESS WHEREOF the parties have executed this Agreement as of the day and
year first above written.
Optima Petroleum Corporation
Per: XXXXXX X. XXXXXXXXX
------------------------
Authorized Signatory
Xxxxxxxxxx Equities Corporation
Per: XXXXXX X. XXXXXXXXXX
------------------------
Authorized Signatory
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CONSULTING AGREEMENT
THIS AGREEMENT dated for reference the 1st day of February, 1996 (the
"Effective Date").
BETWEEN:
OPTIMA PETROLEUM CORPORATION
Suite 600 - 000 Xxxx Xxxxxx,
Xxxxxxxxx, Xxxxxxx Xxxxxxxx,
X0X 0X0;
(the "Company")
AND: XXXXXXXXXX EQUITIES CORPORATION
Suite 600 - 000 Xxxx Xxxxxx,
Xxxxxxxxx, Xxxxxxx Xxxxxxxx,
X0X 0X0;
(the "Consultant")
WHEREAS the Company has agreed to hire the Consultant and the Consultant has
agreed to provide his services to the Company on the terms and conditions
hereinafter set forth.
NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual
covenants and agreements herein contained, the parties hereto agree (the
"Agreement") as follows:
1. RETAINER
1.1 The Company hereby retains the services of the Consultant, and in
particular its principal shareholder, Xxxxxx X. Xxxxxxxxxx ("RLH") to provide
to the Company, the services normally expected of a president and chief
executive officer (the "services"), and the Consultant hereby agrees to provide
such services to the Company upon the terms and conditions contained in this
Agreement.
2. DURATION OF SERVICE
2.1 Subject to termination as provided for in section 7, this Agreement
shall be for an initial term of 23 months commencing on the Effective Date.
Provided that this Agreement has not been terminated by either party pursuant
to section 7, the Company may renew this Agreement for further one year terms
by providing to the Consultant written notice of same at least 30 days prior to
the expiration of the current term or the renewal term, as the case may be.
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3. REMUNERATION
3.1 The Consultant shall be paid a fee of $12,500 per month payable for
each calendar month on the last business day of such month.
3.2 Subject to all necessary regulatory approvals, the Consultant shall be
entitled to:
(a) the grant of 200,000 stock options pursuant the Company's stock
option plan, such stock options to have the following terms:
(i) they will be non-transferable and have a term of three
years commencing from the date regulatory approval is
obtained;
(ii) they will be exercisable at the lowest price permitted
by the applicable regulatory authorities;
(iii) they will otherwise be subject to the terms and
conditions normally required by the applicable
regulatory authorities in order to secure regulatory
approval.
3.3 The Consultant shall be reimbursed for all reasonable travelling and
other out-of-pocket expenses actually and properly incurred by him in
connection with his duties hereunder provided that the Consultant first
furnishes statements and vouchers for all such expenses to the Company.
Individual expense items in excess of $12,500 must be pre-approved by the
Company.
4. DUTIES OF CONSULTANT
4.1 The Consultant shall have, subject always to the general or specific
instructions and directions of the board of directors of the Company (the
"Board"), full power and authority to manage the business and affairs of the
Company that would normally be managed by a senior officer having the title and
capacity of RLH, except in respect of such matters and duties as by law must be
transacted or performed by the Board.
4.2 The Consultant shall:
(a) conform to all lawful instructions and directions from time to
time given to him by the Board;
(b) devote sufficient time and attention to the business and
affairs of the Company, as would typically be expected of a
president and chief executive officer;
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(c) well and faithfully serve the Company and use his best efforts to
promote the interests of the Company;
(d) provide to the Company those services normally expected of a
president and chief executive officer; and
(e) consent to serve as a director of the Company and, if requested, of
any of the Company's affiliates or subsidiaries.
4.3 Subject to the provisions of the Canada Business Corporations Act,
the bylaws of the Company and provided that RLH acted honestly and in good
faith with a view to the best interests of the Company, or, in the case of a
criminal or administrative action or proceeding that is enforced by a monetary
penalty, he had reasonable grounds for believing that his conduct was lawful,
and the directors of the Company shall cause the Company to indemnify the
Consultants and RLH and his heirs and personal representatives against all
costs, damages, charges and expenses, including an amount paid to settle an
action or satisfy a judgment, reasonably incurred by him or them and resulting
from RLH acting as a director and officer of the Company in his normal course
of duties. In addition, should the directors cause the Company to purchase and
maintain insurance for the benefit of any person who is or was serving as a
director of the Company then the directors shall also cause the Company to
purchase and maintain insurance for the benefit of the Consultant against any
and all liability incurred by him as a director and officer of the Company.
5. CONFIDENTIALITY
5.1 Unless permitted by resolution of the Directors of the Company
(excluding RLH if he is a Director), the Consultant shall not, during the term
of this Agreement or at any time thereafter, use for his own purposes or for
any purposes other than those of the Company any intellectual property or
knowledge or confidential information of any kind whatsoever he may acquire in
relation to the Company's business or the business of its subsidiaries, and
such shall be and remain the property of the Company.
6. NON-COMPETITION
6.1 Subject to paragraph 7.2, the Consultant shall not, without the prior
written consent of the Company, which consent (given by a Director other than
the Consultant), will not be unreasonably withheld, during the term of this
Agreement and during the six month period immediately following the termination
of this Agreement, within the area in which the Company operated at the time of
termination (the "Prohibited Area"):
(a) directly or knowingly indirectly engage in or become financially
interested in (otherwise then through an investment in a publicly
traded or private entity in
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which the Consultant has no other interest or control), either
individually or as a partner, shareholder, agent, manager, owner,
advisor or financial backer of any person, persons, firm, association,
venture, entity or corporation of any kind whatsoever that carries on
the business of oil and gas exploration, development or production
(collectively the "Prohibited Businesses"); or
(b) divert or attempt to divert any business of the Company or any of its
subsidiaries, to any other competitive establishment, by direct or
indirect inducement or otherwise.
6.2 The Company acknowledges and consents to the ongoing participation of
the Consultant and RLH in Australian Oilfields Pty Ltd. as a consultant,
director, officer and shareholder.
7. TERMINATION
7.1 Either of the parties hereto may, subject to paragraph 7.2 hereof,
give to the other three months notice in writing of its intention to terminate
this Agreement and on the expiration of such period this Agreement shall be
wholly terminated. Such three months notice may expire on any day of the month
and any remuneration payable hereunder shall be proportioned to the date of
such termination.
7.2 In the event of a merger, takeover or amalgamation or change of
control of the Company which results in a termination of the Consultant's
services at any time prior to December 31, 1997, the provisions of paragraph
6.1 will not apply to such a termination and the Company will pay to the
Consultant an amount equal to 24 months of fees under this Agreement. The
Consultant agrees to accept the termination payment in full satisfaction of any
claim it may have against the Company whether under the terms of this Agreement
or otherwise.
7.3 Notwithstanding anything else contained herein, the Company may at
any time terminate the Consultant's services for cause or if the Consultant
fails to perform or comply with any material term or condition of this
Agreement. In the event the Consultant's services are terminated under the
provisions of this paragraph 7.4, or in the event the Consultant gives the
Company notice of termination, no compensation whatever shall be payable to the
Consultant after such termination.
8. REGULATORY APPROVAL
8.1 This Agreement is subject to all necessary regulatory approvals. If
such approvals are not obtained, this Agreement shall terminate and be of no
further force and effect.
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8.2 The Company agrees to use its reasonable best efforts as to implement the
terms of this Agreement including, but not limited to, obtaining all approvals
from the Company's shareholders to the allocation of stock options to the
Officer as provided for in paragraph 3.2 hereof.
9. GENERAL
9.1 The headings and section references in this Agreement are for convenience
of reference only and do not form a part of this Agreement and are not intended
to interpret, define or limit the scope, extent or intent of this Agreement or
any provision thereof.
9.2 Time is hereby expressly made of the essence of this Agreement with
respect to the performance by the parties of their respective obligations under
this Agreement.
9.3 This Agreement shall enure to the benefit of and be binding upon the
parties hereto and their respective heirs, executors, administrators, personal
representatives, successors and permitted assigns. This Agreement may not be
assigned by either party hereto without the prior express written consent of
the other party.
9.4 This Agreement supersedes all prior agreements entered into between the
parties and constitutes the entire agreement between the parties hereto
relating to the subject matter hereof and may not be amended, waived or
discharged except by an instrument in writing executed by the party against
whom enforcement of such amendment, waiver or discharge is sought and this
Agreement supersedes all prior agreements between the parties.
9.5 Each of the parties hereto hereby covenants and agrees to execute such
further and other documents and instruments and do such further acts and other
things as may be necessary to implement and carry out the intent of this
Agreement.
9.6 All notices, requests, demands and other communications hereunder shall be
in writing and shall be deemed to have been duly given if delivered by hand or
mailed by postage prepaid double registered mail addressed as follows:
To the Company:
OPTIMA PETROLEUM CORPORATION,
Suite 600 - 000 Xxxx Xxxxxx,
Xxxxxxxxx, Xxxxxxx Xxxxxxxx,
X0X 0X0;
Attention: The President
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To the Consultant:
XXXXXXXXXX EQUITIES CORPORATION,
Suite 600 - 000 Xxxx Xxxxxx,
Xxxxxxxxx, Xxxxxxx Xxxxxxxx,
X0X 0X0;
Attention: The President
or such other address as may be given in writing by the Company or the
Consultant and shall be deemed to have been received, if delivered, on the date
of delivery and if mailed as aforesaid at Vancouver, British Columbia then on
the third business day following the posting thereof.
IN WITNESS WHEREOF the parties have executed this Agreement as of the day and
year first above written.
OPTIMA PETROLEUM CORPORATION
Per: /s/ XXXXXX X. XXXXXXXXXX
------------------------
Xxxxxx X. Xxxxxxxxxx
Authorized Signatory
XXXXXXXXXX EQUITIES CORPORATION
Per: /s/ XXXXXX X. XXXXXXXXXX
------------------------
Xxxxxx X. Xxxxxxxxxx
Authorized Signatory
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