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UNITED STATE
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): June 1, 2010
SYNERGY RESOURCES CORPORATION
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(Exact name of registrant as specified in its charter)
Colorado None 20-2835920
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(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification No.)
20203 Highway 60
Platteville, Colorado 80651
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(Address of principal executive offices, including Zip Code)
Registrant's telephone number, including area code: (970) 737-1073
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N/A
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(Former name or former address if changed since last report)
Check appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below)
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-14(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangement of Certain
Officers.
On June 1, 2010 Synergy entered into a new employment agreement with Ed
Holloway, Synergy's President and Chief Executive Officer. The employment
agreement, which expires on May 31, 2013, provides that Synergy will pay Mr.
Holloway a monthly salary of $25,000 and requires Mr. Holloway to devote
approximately 80% of his time to Synergy. In addition, for every 50 wells that
begin producing oil and/or gas after June 1, 2010, whether as the result of
Synergy's successful drilling efforts or acquisitions, Synergy will issue Mr.
Holloway shares of common stock in an amount equal to $100,000 divided by the
average closing price of Synergy's common stock for the 20 trading days prior to
the date the 50th well begins producing.
The employment agreement will terminate upon Mr. Holloway's death,
disability or for cause. If the employment agreement is terminated for any of
these reasons, Mr. Holloway, or his legal representatives as the case may be,
will be paid the salary provided by the employment agreement through the date of
termination.
For purposes of the employment agreement, "cause" is defined as:
(i) the conviction of Mr. Holloway of any crime or offense involving
fraud or moral turpitude which significantly harms Synergy;
(ii) the refusal of Mr. Holloway to follow the lawful directions of
Synergy's Board of Directors;
(iii) Mr. Holloway's negligence which shows a reckless or willful
disregard for the reasonable business practices and significantly
harms Synergy; or
(iv) a breach of the employment agreement by Mr. Holloway.
On June 1, 2010 Synergy entered into a new employment agreement with
William E. Scaff, Jr., Synergy's Vice President and Secretary/Treasurer. The
employment agreement, which expires on May 31, 2013, provides that Synergy will
pay Mr. Scaff a monthly salary of $25,000 and requires Mr. Scaff to devote
approximately 80% of his time to Synergy. In addition, for every 50 wells that
begin producing oil and/or gas after June 1, 2010, whether as the result of
Synergy's successful drilling efforts or acquisitions, Synergy will issue Mr.
Scaff shares of common stock in an amount equal to $100,000 divided by the
average closing price of Synergy's common stock for the 20 trading days prior to
the date the 50th well begins producing.
The provisions regarding the termination of Mr. Scaff's employment
agreement due to Mr. Scaff's death or disability, or for cause, are the same as
those in Mr. Holloway's employment agreement.
The employment agreements with Mr. Holloway and Mr. Scaff were approved by
Synergy's Compensation Committee and Board of Directors.
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Item 9.01 Financial Statements and Exhibits
Exhibit Number Description
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10.7 Employment Agreement with Ed Holloway
10.8 Employment Agreement with William E. Scaff, Jr.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: June 4, 2010
SYNERGY RESOURCES CORPORATION
By: /s/ William E. Scaff, Jr.
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William E. Scaff, Jr., Vice President
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SYNERGY RESOURCES CORPORATION
FORM 8-K
EXHIBITS
