INDEPENDENT CONTRACTOR AGREEMENT
Exhibit
99.1
This
Agreement is entered into as of the 2nd day of July 2008, between Osage
Exploration and Development, Inc. (the "Company”) and E. Xxxxx Xxxxxxx, Jr. (the
"Contractor”).
1. |
Independent
Contractor.
Subject to the terms and conditions of this Agreement, the Company
hereby
engages the Contractor as an independent contractor to perform
the
services set forth herein, and the Contractor hereby accepts such
engagement.
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2. |
Duties,
Term, and Compensation.
The Contractor’s duties and term of engagement, are detailed in the
attached Exhibit A, which may be amended in writing from time to
time by
the Contractor and agreed to by the Company, and which collectively
are
hereby incorporated by reference. In order to induce Contractor
to enter
into this Agreement, the Company shall issue to the Contractor
1,000,000
shares of the Company's Common Stock (the "Shares") which Shares
will not
be registered under the Securities Act of 1933. Contractor agrees
to
perform the required services without any further compensation.
Contractor
will make a Section 83(b) election with respect to the Shares which
will
be subject to restrictions on trading under Section 16(b) of the
Securities Exchange Act of 1934. The Company represents and warrants
to
the Contractor that the Shares will be validly issued, fully paid
and
non-assessable and are being issued free of any preemptive rights
or any
claims of any other parties. All necessary corporate action for
the
issuance of the Shares has been taken and the issuance of the Shares
does
not violate any agreement to which the Company is a party or require
the
consent of any other person or governmental authority. The Shares
are not
subject to any restrictions on transfer other than those arising
under
applicable state or federal securities laws. The Company shall
deliver
certificates for the Shares within three (3) business days after
the date
of this Agreement.
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3. |
Expenses.
During the term of this Agreement, the Contractor shall xxxx and
the
Company shall reimburse the Contractor for all reasonable and approved
out-of-pocket expenses which are incurred in connection with the
performance of the duties hereunder. Notwithstanding the foregoing,
expenses for the time spend by Consultant in traveling to and from
Company
facilities shall not be
reimbursable.
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4. |
Confidentiality.
The Contractor acknowledges that during the engagement he will
have access
to and become acquainted with various trade secrets, inventions,
innovations, processes, information, records and specifications
owned or
licensed by the Company and/or used by the Company in connection
with the
operation of its business including, without limitation, the Company’s
business and product processes, methods, customer lists, accounts
and
procedures. The Contractor agrees that he will not disclose any
of the
aforesaid, directly or indirectly, or use any of them in any manner,
either during the term of this Agreement or at any time thereafter,
except
as required in the course of this engagement with the Company.
All files,
records, documents, blueprints, specifications, information, letters,
notes, media lists, original artwork/creative, notebooks, and similar
items relating to the business of the Company, whether prepared
by the
Contractor or otherwise coming into his possession, shall remain
the
exclusive property of the Company. The Contractor shall not retain
any
copies of the foregoing without the Company’s prior written permission.
Upon the expiration or earlier termination of this Agreement, or
whenever
requested by the Company, the Contractor shall immediately deliver
to the
Company all such files, records, documents, specifications, information,
and other items in his possession or under his control.
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5. |
Conflicts
of Interest; Non-hire Provision.
The Contractor represents that he is free to enter into this Agreement,
and that this engagement does not violate the terms of any agreement
between the Contractor and any third party. Further, the Contractor,
in
rendering his duties shall not utilize any invention, discovery,
development, improvement, innovation, or trade secret in which
he does not
have a proprietary interest. During the term of this Agreement,
the
Contractor shall devote as much of his productive time, energy
and
abilities to the performance of his duties hereunder as he believes
is
reasonably necessary to perform the required duties in a timely
and
productive manner. The Contractor is expressly free to perform
services
for other parties while performing services for the Company and
to conduct
other independent business activities.
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6. |
Merger.
This Agreement shall not be terminated by the merger or consolidation
of
the Company into or with any other
entity.
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7. |
Termination.
The Company may terminate this Agreement at any time by 30 days’ written
notice to the Contractor. Any such termination will not affect
the
Contractor's rights to retain the Shares. The Contractor may terminate
this Agreement by 30 days written notice if there is a change in
control
of the Company or a material change in
management.
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8. |
Independent
Contractor.
This Agreement shall not render the Contractor an employee, partner,
agent
of, or joint venturer with the Company for any purpose. The Contractor
is
and will remain an independent contractor in his relationship to
the
Company. The Company shall not be responsible for withholding taxes
with
respect to the Contractor’s compensation hereunder. The Contractor shall
have no claim against the Company hereunder or otherwise for vacation
pay,
sick leave, retirement benefits, social security, worker’s compensation,
health or disability benefits, unemployment insurance benefits,
or
employee benefits of any kind.
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9. |
Successors
and Assigns.
All of the provisions of this Agreement shall be binding upon and
inure to
the benefit of the parties hereto and their respective heirs, if
any,
successors, and assigns.
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10. |
Choice
of Law.
The laws of the state of California shall govern the validity of
this
Agreement, the construction of its terms and the interpretation
of the
rights and duties of the parties
hereto.
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11. |
Arbitration.
Any controversies arising out of the terms of this Agreement or
its
interpretation shall be settled in San Diego, California in accordance
with the Commercial Arbitration Rules of the American Arbitration
Association, and the judgment upon award may be entered in any
court
having jurisdiction thereof.
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12. |
Headings.
Section
headings are not to be considered a part of this Agreement and
are not
intended to be a full and accurate description of the contents
hereof.
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13. |
Waiver.
Waiver by one party hereto of breach of any provision of this Agreement
by
the other shall not operate or be construed as a continuing
waiver.
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14. |
Assignment.
The Contractor shall not assign any of his rights under this Agreement,
or
delegate the performance of any of his duties hereunder, without
the prior
written consent of the Company.
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15. |
Notices.
Any and all notices, demands, or other communications required
or desired
to be given hereunder by any party shall be in writing and shall
be
validly given or made to another party if personally served, or
if
deposited in the United States mail, certified or registered, postage
prepaid, return receipt requested. If such notice or demand is
served
personally, notice shall be deemed constructively made at the time
of such
personal service. If such notice, demand or other communication
is given
by mail, such notice shall be conclusively deemed given five days
after
deposit thereof in the United States mail addressed to the party
to whom
such notice, demand or other communication is to be given as
follows:
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If to the Contractor: |
E.
Xxxxx Xxxxxxx, Jr.
0000
X. Xxxxxxx, Xxxxx 000
Xxxxxxxx
Xxxx, XX 00000
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If to the Company: |
Osage Exploration and Development,
Inc.
Attn:
Xxx Xxxxxxxx, President and CEO
0000
Xxxxx Xxxxxx
Xxxxx
000
Xxx
Xxxxx, XX 00000
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Any
party
hereto may change its address for purposes of this paragraph by written notice
given in the manner provided above.
16. |
Modification
or Amendment.
No
amendment, change or modification of this Agreement shall be valid
unless
in writing signed by the parties
hereto.
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17. |
Entire
Understanding.
This document and any exhibit attached constitute the entire understanding
and agreement of the parties, and any and all prior agreements,
understandings, and representations are hereby terminated and canceled
in
their entirety and are of no further force and
effect.
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18. |
Unenforceability
of Provisions.
If
any provision of this Agreement, or any portion thereof, is held
to be
invalid and unenforceable, then the remainder of this Agreement
shall
nevertheless remain in full force and
effect.
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19. |
Investment
Representations. The Contractor represents and warrants to, and
agrees
with, the Company as follows:
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(a) He
has
such knowledge and experience in financial and business matters as to be
capable
of evaluating the merits and risks of an investment in the Company. He
recognizes that his investment involves certain risks. He is acquiring the
Shares for his own account for investment and not with a view to the
distribution or resale thereof. He has not offered or sold any portion of
the
Shares and has no present intention of dividing the Shares with others or
of
reselling or otherwise disposing of any portion of the Shares either currently
or after the passage of a fixed or determinable period of time or upon the
occurrence or nonoccurrence of any predetermined event or
circumstance.
(b)
He is
aware that he it must bear the economic risk of his investment in the Company
for an indefinite period of time because the Shares have not been registered
under the Securities Act of 1933, as amended ("Act"), or under the securities
laws of any states, and therefore, cannot be sold unless they are subsequently
registered under the Act and any applicable state securities laws or an
exemption from registration is available, and further that only the Company
can
take action to so register the Shares and the Company is under no obligation
and
does not propose to attempt to do so.
(c)
He
has had access to such information about the Company as he believes necessary
to
make a decision to acquire the Shares. He has had the opportunity to obtain
any
additional information necessary to verify the accuracy of the information
furnished to him and has been given the opportunity to meet with the Company
and
its representatives and to have them answer any questions regarding the Company
and this particular investment, and all such questions have been answered
to his
full satisfaction.
(d)
He
understands and agrees that the Shares will not be sold, pledged, hypothecated
or otherwise transferred unless registered under the Act and applicable state
securities laws or an exemption from registration is available and that legends
indicating the restrictions on transferability have been placed on the
certificates representing the Shares.
20. |
Disclosure. The
Company will not publicly disclose by press release or public
filing with
the Securities and Exchange Commission the existence or terms
of this
Agreement without the consent of
Contractor.
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IN
WITNESS WHEREOF the undersigned have executed this Agreement as of the day
and
year first written above. The parties hereto agree that facsimile signatures
shall be as effective as if originals.
Osage
Exploration and Development, Inc.
By:_______________________ | ____________________ | |
Xxx Xxxxxxxx | E. Xxxxx Xxxxxxx, Jr. | |
Its: President & CEO |
SCHEDULE
A
DUTIES,
TERM, AND COMPENSATION
DUTIES: |
The
Contractor will perform all duties typically required of a Corporate
Finance Advisor, including providing advice and services with regards
to
financing transactions and mergers & acquisitions and other financing
matters for the Company. It is anticipated that Contractor may
accompany
Company personnel on certain trips to Colombia. Company acknowledges
that
Contractor is not a registered broker, dealer or investment advisor
and
none of his duties will require him to register as such.
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He
will
report directly to Xxx Xxxxxxxx, President and CEO and to any other party
designated by Xxx Xxxxxxxx in connection with the performance of the duties
under this Agreement and shall fulfill any other duties reasonably requested
by
the Company and agreed to by the Contractor.
TERM: |
This
engagement shall commence upon execution of this Agreement and
shall
continue in full force and effect for a period of twelve months.
The
agreement may only be extended thereafter by mutual agreement,
unless
terminated earlier by operation of and in accordance with this
Agreement.
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