HARKEN ENERGY CORPORATION AMENDED SEVERANCE AGREEMENT
Exhibit 10.47
HARKEN ENERGY CORPORATION
THIS SEVERANCE AGREEMENT (the “Agreement”) is made and entered into this 28 day of April, 2003 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 XXXX XXXXXXXX an individual employee of the Company, (the “Employee”).
WHEREAS, the Employee is, as of the Date here of, in the employ of the Company and is an executive officer of the Company on whom the Company relies and whom the Company desires to retain in its employment; and
WHEREAS, the Company and Employee, on June 19, 2002 entered into that certain Severance Agreement (the “Severance Agreement”) whereby both parties agreed as to the terms and conditions that would govern Employee’s severance from the employ of the Company; and
WHEREAS, the Company and Employee have reached an agreement that, pursuant to the terms of the Severance Agreement, requires the execution of this Amended Severance 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 nine (9) months salary.
The salary used to compute this Additional Severance will be the greater of either the Employee’s salary at the time of the termination or Employee’s salary 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 the Company will pay to Employee a sum of money equal to six and one-third (6.33) months salary.
The salary used to compute this Voluntary Termination Additional Severance will be the greater of either the Employee’s salary at the time of the termination or Employee’s salary as of the date of this Agreement.
| 3. | Constructive Termination: |
In the event that, during the term hereof, the Company shall decrease by more than ten percent (10%) Employee’s salary from the amount set as of the date hereof, such action shall be construed as a constructive termination under this Agreement which shall trigger the obligation of the Company to pay to Employee the Additional Severance amount irregardless of whether Employee’s actual employment is terminated or continued. Any single decrease of salary in excess of 10% or any series of decreases during the Term, which in the aggregate equal more than 10%, will be a constructive termination hereunder and give rise to the provisions of this Section 3.
| 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. | 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 and shall continue through and including June 1, 2004. At the expiration of the Term this Agreement may be extended, modified or renegotiated only upon the mutual written agreement of both.
| 6. | 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.
| 7. | 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.
| 8. | 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. The parties hereto further reaffirm that the previously executed Amendment to Agreement Regarding Compensation in Event of Change in Control terminated by agreement effective as of June 19, 2002.
IN WITNESS whereof this Agreement has been executed the day and year first above written.
HARKEN ENERGY CORPORATION (the Company)
| By: |
/s/ Xxxxx X. Xxxxxxxx | |
| Name: Xxxxx X. Xxxxxxxx Its: Chief Executive Officer and President | ||
Xxxx Xxxxxxxx (the Employee)
| /s/ Xxxx Xxxxxxxx |
2
