Exhibit 10.2
CONSULTING SERVICES
AGREEMENT
This Consulting Services Agreement
(“Agreement”) is executed to be effective as of
June 1, 2009 by and between El Paso Electric Company, a Texas
corporation (“EPE”), and Scott D. Wilson, a Florida
resident (“Consultant”).
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1.1
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EPE desires
Consultant to perform certain services described in the statement
of work (the “Statement of Work”) appended to and
hereby incorporated into this Agreement by reference as Appendix 1,
all and in each instance in accordance with the provisions of this
Agreement and such Statement of Work.
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1.2
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Consultant is
ready, willing, and able to undertake the duties and obligations
set forth in this Agreement.
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1.3
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In
consideration of the foregoing recitals and the mutual covenants
contained in this Agreement, EPE and Consultant agree as provided
below.
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2.
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Services to
Be Performed.
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2.1
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All services
and deliverables to be performed and provided under this Agreement
are described in the Statement of Work. Consultant, as an
independent contractor, shall furnish all necessary supervision,
labor, materials, tools, and equipment to perform the services and
provide the deliverables specified in and in the manner prescribed
by this Agreement and the Statement of Work. Changes to the scope
of services or deliverables described in the Statement of Work
(including any corresponding increase or decrease in pricing
therefor) shall not be effective unless set forth in a written
document executed by EPE and Consultant.
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3.
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Term and
Termination of Agreement.
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3.1
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This Agreement
shall be for a term of twelve (12) months beginning
June 1, 2009 (the “Effective Date”) and continuing
through May 31, 2010 (the “Term”), unless earlier
terminated in accordance with Sections 3.2 or 3.3.
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3.2
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Either party
may upon written notice terminate this Agreement at any time if the
other party breaches a material provision of this Agreement and
such breach is not fully cured within thirty (30) days
following the non-performing party’s receipt of notice
describing the nature of such breach in reasonable detail. In such
event and subject to the restrictions and limitations prescribed by
Section 7.3 and Section 7.4, the non-breaching party may
take such action to enforce any other rights or remedies available
under this Agreement, applicable law, and/or principles of
equity.
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3.3
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EPE shall also
have the right and option to terminate this Agreement immediately
upon notice to Consultant if, during the Term, (i) Consultant
accepts full-time employment with any person or entity, or
(ii) Consultant interferes with the business of the Company or
holds any position or accepts any engagement that results in a
position adverse to that of the Company in any matter.
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4.
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Compliance
with Applicable Laws.
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4.1
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Consultant
shall perform all services in accordance and compliance with all
federal, state, and local statutes, laws, ordinances, codes, rules,
and regulations (collectively “Laws”) including,
without limitation, Laws governing workplace health and safety and
the protection of the environment.
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Consulting Services Agreement
– Wilson
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5.
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Inspection,
Acceptance, and Payment.
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5.1
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EPE shall pay
Consultant compensation for services and deliverables in accordance
with the provisions of this Agreement and the Statement of Work.
EPE agrees to pay Consultant a monthly retainer in the amount of
Twenty Eight Thousand Three Hundred Fifty Dollars ($28,350.00),
payable each month throughout the term of this
Agreement.
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5.2
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Consultant
shall deliver monthly invoices to EPE for services rendered. Each
invoice shall be mailed or hand delivered to:
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El Paso Electric Company
Attention: David W.
Stevens
100 N. Stanton
El Paso, Texas 79901
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5.3
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All payments or
reimbursements otherwise due Consultant under this Agreement shall
be subject to EPE’s right to contractual setoff solely for a
breach of Paragraph 5 of the Employment Retirement Agreement and
Release of even date which right of contractual setoff is hereby
granted by Consultant to EPE to the fullest extent allowed by
applicable law.
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5.4
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As set forth in
the Statement of Work, EPE agrees to reimburse Consultant for
reasonable out-of-pocket expenses incurred for out-of-town travel
which was requested and approved in advance by EPE and for other
incremental expenses necessary for Consultant to perform his duties
under this contract, such as overnight delivery services, long
distance phone charges, etc. No reimbursement will be made,
however, for (i) alcoholic beverages, (ii) hotel
pay-per-view movies or other entertainment expenses, or
(iii) undocumented costs or expenses. Consultant shall use
reasonable efforts to limit travel and living expenses by using
coach airfare, booked at least seven (7) days in advance
(unless otherwise approved in advance by EPE), staying in housing
identified by EPE as offering contractors a discounted rate, and
sharing rental cars.
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6.
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Services,
Deliverables, and Media Warranties.
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6.1
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All services
and deliverables shall conform to all descriptions, specifications,
and standards included or referenced in the Statement of Work and
be performed in good faith and with that level of care and skill
ordinarily exercised by members of Consultant’s
profession.
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6.2
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If, during the
one (1) year period following EPE’s acceptance (as
described in Section 5.3) of all services and deliverables to
be provided under this Agreement, any service or deliverable fails
to conform to the warranty prescribed by Section 6.1,
Consultant shall at its sole cost and expense and within thirty
(30) days following its receipt of written notice describing
such nonconformity in reasonable detail, re-perform such service or
repair or replace such deliverable to correct such
nonconformity.
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6.3
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THE REMEDY
PRESCRIBED BY SECTION 6.2 SHALL BE EPE’S SOLE AND EXCLUSIVE
REMEDY FOR CONSULTANT’S BREACH OF THE LIMITED WARRANTIES
PRESCRIBED BY SECTION 6.1.
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6.4
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EXCEPT AS
PROVIDED IN SECTION 6.1, CONSULTANT DISCLAIMS ALL OTHER WARRANTIES
WITH RESPECT TO THE SERVICES AND DELIVERABLES, INCLUDING WITHOUT
LIMITATION, WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE.
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7.
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Indemnification and Limitation of
Liability.
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7.1
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Each party shall indemnify and
hold harmless the other party and its respective owners, directors,
officers, and employees for, against, and from any and all claims,
liabilities, damages, losses, costs, and expenses of any kind or
nature (including reasonable attorneys’
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2
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Consulting
Services Agreement – Wilson
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fees) for personal injury (including
mental anguish) to or death of any person or for destruction or
loss of or damage to the property of any third person or entity in
each instance to the extent determined to be proportionately
attributable to the (i) negligence (including strict liability
in tort), gross negligence, or willful misconduct of the
indemnitor, its owners, directors, officers, employees, agents, or
contractors arising from, in connection with, or in any way related
to this Agreement (including the performance or nonperformance
thereof), or (ii) breach of this Agreement by the indemnitor,
its owners, directors, officers, employees, agents, or contractors.
It is the intention of the parties that the indemnitees shall be
entitled to reciprocal and comparative indemnification under this
Section 7.1.
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7.2
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Consultant
shall indemnify, defend, and hold EPE harmless against any loss,
cost, or expense arising out of any claim that Consultant’s
services or deliverables or EPE’s use of the deliverables
under this Agreement infringes any United States patent, copyright,
or trade secret. Should Consultant’s services or deliverables
be determined to have infringed, or, if in Consultant’s
judgment such use is likely to infringe, any such patent,
copyright, or trade secret, Consultant may, at its option and at
its sole cost and expense (i) obtain for EPE the right to
continue to use the affected services and deliverables, or
(ii) replace or modify the affected services and deliverables
to make such use non-infringing and substantially equivalent in
function. This indemnity does not cover infringement claims arising
from or caused by modifications to Consultant’s services or
the deliverables that are not made by Consultant, its agents,
affiliates or subcontractors or that result from the combination of
such matters with products or services not provided by Consultant.
Consultant’s obligations under this Section 7.2 are
conditioned upon:
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(i)
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EPE promptly
notifying Consultant in writing of any such claim;
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(ii)
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Consultant
being able to control the defense and settlement of such claim;
and
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(iii)
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EPE cooperating
with all reasonable requests of Consultant (at Consultant’s
expense) in defending or settling such claim. EPE shall have the
right, at its option and expense, to participate in the defense of
any action, suit or proceeding relative to such claims through
counsel of its own choosing.
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7.3
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EXCEPT FOR
CLAIMS FOR (i) INDEMNIFICATION UNDER SECTION 7.1 OR SECTION
7.2 OR BREACH OF THE CONFIDENTIALITY PROVISIONS OF SECTION 9, EACH
TO WHICH THE PROVISIONS AND LIMITATIONS OF THIS SECTION 7.3 SHALL
NOT APPLY, OR (ii) DAMAGE TO OR DESTRUCTION OF THE REAL
PROPERTY OR TANGIBLE PERSONAL PROPERTY OF A PARTY, WHICH SHALL BE
LIMITED TO THE AMOUNTS REQUIRED TO FULLY ABATE OR REPAIR SUCH
DAMAGE TO OR TO REPLACE SUCH PROPERTY, NOT TO EXCEED THE AGGREGATE
AMOUNT OF $1,000,000 REGARDLESS OF WHETHER SUCH AMOUNTS ARE
CONSIDERED SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, NEITHER
PARTY SHALL BE LIABLE TO THE OTHER FOR SPECIAL, INCIDENTAL,
CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES, LOSS OF PROFITS OR
REVENUE, LOSS OF USE OF PROPERTY, OR OTHER ECONOMIC DAMAGES. ALL
PAYMENTS DUE CONSULTANT UNDER THIS AGREEMENT FOR SERVICES,
DELIVERABLES, COSTS, AND EXPENSES SHALL BE DEEMED TO CONSTITUTE
DIRECT DAMAGES (AND NOT SPECIAL, INCIDENTAL, OR CONSEQUENTIAL
DAMAGES) FOR THE PURPOSES OF THIS SECTION 7.3.
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7.4
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EXCEPT FOR
CLAIMS FOR (i) INDEMNIFICATION UNDER SECTION 7.1 OR SECTION
7.2 OR BREACH OF THE CONFIDENTIALITY PROVISIONS OF SECTION 9, EACH
TO WHICH THE PROVISIONS OF THIS SECTION 7.4 SHALL NOT APPLY, OR
(ii) DAMAGE TO OR DESTRUCTION OF REAL PROPERTY OR TANGIBLE
PERSONAL PROPERTY OF EPE, WHICH SHALL BE SUBJECT TO THE PROVISIONS
AND LIMITATIONS PRESCRIBED BY SECTION 7.3, CONSULTANT SHALL IN NO
EVENT BE LIABLE TO EPE FOR AN AMOUNT EXCEEDING THE AGGREGATE AMOUNT
TO BE PAID TO CONSULTANT FOR SERVICES AND DELIVERABLES UNDER THIS
AGREEMENT.
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3
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Consulting
Services Agreement – Wilson
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8.1
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Neither party
shall be liable to the other for failure to perform or delay in
performance of its obligations under this Agreement if and to the
extent that such failure or delay is caused by or results from
causes beyond its control, including, without limitation, any act
(including delay, failure to act, or priority) of the other party
or any governmental authority, civil disturbances,
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