EXHIBIT 10.12
HARKEN ENERGY CORPORATION
SEVERANCE AGREEMENT
THIS SEVERANCE AGREEMENT (the "Agreement") is made and entered into this 10/th/
day of June, 2002 by and between HARKEN ENERGY CORPORATION, a Delaware
corporation, whose principal office is 000 XxxxXxxx Xxxx Xxxx., Xxxxx 000,
Xxxxxxx, Xxxxx 00000 ("the Company") and XXXXX XXXXXXX JR. an individual
employee of the Company, whose home address is 0000 Xxxxxxx Xxx Xxxxx, Xxxxxx,
Xxxxx 00000, (the "Employee").
WHEREAS, the Employee is, as of the Date here of, in the employ of the Company
and is a employee on whom the Company relies and whom the Company desires to
retain in its employment; and
WHEREAS, the Company and Employee are entering into this Agreement in order to
provide inducement to Employee to remain with the Company by providing to
Employee assurance of additional severance that would be paid by the Company to
Employee should the Company terminate Employee's employment during the term of
this Agreement.
NOW THEREFORE, for and in the mutual considerations recited and acknowledged by
both parties hereto, the Company and the Employee agree as follows:
1. Severance Upon Involuntary Termination:
In the event that Employee is Involuntarily terminated by the Company during the
Term of this Agreement, then the Company will pay to Employee a sum of money, IN
ADDITION TO any and all severance pay and related compensation such Employee is
entitled to receive under the policies in effect by the Company on the date of
this Agreement, the additional amount equal to six (6) months salary at
Employee's rate of pay as of the date of this Agreement.
The payment of this Additional Severance will become due to Employee from the
Company upon any event of involuntarily termination during the Term, whether it
be with or without cause, or an event of individual involuntary termination or
in connection with a layoff, plant closing or force reduction.
2. Voluntary Termination:
In the event that Employee elects for any reason to voluntarily terminate
his/her employment with the Company during the Term, then in such event Employee
will not be entitled to receive the Additional Severance and will be only
entitled to receive such severance and compensation benefits, if any, Employee
may be entitled to receive pursuant to the policies of the Company in effect as
of that date of voluntarily termination.
3. Term of Agreement:
Unless otherwise agreed to in writing by the parties hereto, this Agreement
shall be in effect from the date first set forth above for one (1) calendar
year. At the expiration of the Term this Agreement may be extended, modified or
renegotiated only upon the mutual written agreement of both.
4. No Guaranty of Employment:
This Agreement shall not constitute nor be construed nor interpreted as any
guarantee nor contract for continued employment of Employee with the Company,
any subsidiary or any successor company. The parties stipulate that as to any
rights of ongoing or future employment, that the Employee is an employee at
will.
5. Parties:
This Agreement shall be binding on the parties hereto and shall further be
binding upon the successors, assigns, parent corporations or subsidiary
corporations of the Company, and shall further inure to the benefit of the heirs
and assigns of Employee.
6. Governing Law:
This Agreement shall be governed by and interpreted in accordance with the laws
of the State of Texas, without giving effect to the principles of conflicts of
law thereof.
7. Entire Agreement:
This Agreement constitutes the entire agreement between the parties with respect
to the subject matter hereof and replaces, restates in full and supersedes all
other prior agreements and understandings, both written and oral.
IN WITNESS whereof this Agreement has been executed the day and year first above
written.
HARKEN ENERGY CORPORATION (the Company)
By: /s/ Xxxx Xxxxxxxx
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Name: Xxxx Xxxxxxxx
Its: Executive Vice President and CFO
XXXXX XXXXXXX JR. (the Employee)
/s/ Xxxxx Xxxxxxx Jr.
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