EMPLOYMENT AGREEMENT
Exhibit 10.20
This Employment Agreement (this “Agreement”), effective October 1, 2015 (the “Effective Date”), is between Hyperdynamics Corporation (“Employer”), and Xxxxx Xxxxxx (“Executive”) (each a “Party” and together the “Parties”).
WHEREAS, the Parties wish to set forth the terms and conditions of such employment;
NOW, THEREFORE, the Parties hereto agree as follows:
1. Definitions. As used in this Agreement, the following terms have the following meanings:
(a) “Affiliate” means, with respect to any entity, any other corporation, organization, association, partnership, sole proprietorship or other type of entity, whether incorporated or unincorporated, directly or indirectly controlling or controlled by or under direct or indirect common control with such entity.
(b) “Annual Period” means the time period of each year beginning on the first day of the Employment Term and ending on the day before the anniversary of that date, except that the first Annual Period under this Agreement shall have been deemed to have commenced on July 1, 2015 and will end on June 30, 2016. Accordingly, the second Annual Period will commence on July 1, 2016 and will end on June 30, 2017.
(c) “Board” means the Board of Directors of Employer.
(d) “Cause” means a finding by the Board of acts or omissions constituting, in the Board’s reasonable judgment, any of the following occurring during the Employment Term:
(i) a material breach of duty by Executive in the course of his employment with Employer or its Affiliates involving fraud, acts of dishonesty (other than inadvertent acts or omissions), disloyalty to Employer or its Affiliates or moral turpitude constituting criminal felony;
(ii) conduct by Executive that is materially detrimental to Employer or its Affiliates, monetarily or otherwise, or that reflects unfavorably on Employer or Executive to such an extent that Employer or its Affiliates have been materially harmed or would be materially harmed if Executive’s employment were not terminated;
(iii) acts or omissions of Executive that are materially in violation of his obligations under this Agreement or at law and that have a material adverse effect on Employer or its Affiliates;
(iv) Executive’s material failure to comply with or enforce the personnel policies of Employer or its Affiliates, specifically including those concerning equal employment opportunity and those related to harassing conduct;
(v) Executive’s material insubordination to the Board;
(vi) subject to the details of Paragraph 4(b), Executive’s failure to devote his full working time and best efforts to the performance of his responsibilities to Employer or its Affiliates;
(vii) Executive’s conviction of, or entry of a plea agreement or consent decree or similar arrangement with respect to a felony or any material violation of federal or state securities laws, in either case, having a material adverse effect on Employer or its Affiliates; or
(viii) Executive’s material failure to cooperate with any investigation or inquiry authorized by the Board or conducted by a governmental authority related to Employer’s or an Affiliate’s business or Executive’s conduct related to Employer or an Affiliate.
(e) “Code” means the Internal Revenue Code of 1986, as amended.
(f) “Competitor” means any person or entity that is engaged in the acquisition, development, production and marketing of crude oil and natural gas, chemicals and other hydrocarbon commodities in competition with the activities of Employer or an Affiliate.
(g) “Confidential Information” means, without limitation, all documents or information, in whatever form or medium, concerning or evidencing seismic data, geological data; geophysical data; energy exploration data; oil and gas production data; sales; costs; pricing; strategies; forecasts and long range plans; financial and tax information; personnel information; business, marketing and operational projections, plans and opportunities; customer, vendor, and supplier information; project and prospect locations and leads; and production information; but excluding any such information that is or becomes generally available to the public other than as a result of any breach of this Agreement or other unauthorized disclosure by Executive.
(h) “Employment Termination Date” means the effective date of termination of Executive’s employment as established under Paragraph 6(g).
(i) “Fully Earned” shall have the meaning set forth in Paragraph 7(e)(ii)(B).
(j) “Good Reason” means, with respect to Executive, any of the following actions or failures to act:
(i) a material diminution in Executive’s authority, duties, or responsibilities in effect immediately prior to the effective date of such change, but excluding any such change that occurs in connection with Executive’s death, Inability to Perform or retirement;
(ii) a material reduction by Employer of Executive’s compensation in effect immediately prior to the effective date of such reduction;
(iii) any change of more than 75 miles in the location of Executive’s principal place of employment immediately prior to the effective date of such change; or
(iv) any material breach by Employer of this Agreement.
(k) “Inability to Perform” means and shall be deemed to have occurred if Executive has been determined under Employer’s long-term disability plan, if any, to be eligible for long-term disability benefits. In the absence of Executive’s participation in, application for benefits under, or existence of such a plan, “Inability to Perform” means Executive’s inability to perform the essential functions of his position with Employer because of an illness or injury for (i) a period of six consecutive months or (ii) an aggregate of six months within any period of 12 consecutive months.
(l) “Section 409A” means Code Section 409A and the regulations and other guidance promulgated thereunder.
(m) “Work Product” means all ideas, works of authorship, inventions, and other creations, whether or not patentable, copyrightable, or subject to other intellectual property protection, that are made, conceived, developed or worked on in whole or in part by Executive while employed by Employer and/or any of its Affiliates, that relate in any manner whatsoever to the business, existing or then-proposed, of Employer and/or any of its Affiliates, or any other business or research or development effort in which Employer and/or any of its Affiliates engages during Executive’s employment.
3. Term. Executive’s employment under this Agreement shall continue from the Effective Date until June 30, 2016 (the “Employment Term”), unless sooner terminated as provided in this Agreement. The Employment Term shall be extended automatically for a one-year period beginning July 1, 2016 and each successive Annual Period thereafter on which Executive remains employed by Employer; provided, however, that if, prior to May 31 during any such Annual Period, either Party shall give written notice to the other that no such automatic extension shall occur, then Executive’s employment shall terminate on the last day of the Annual Period during which such notice is given unless sooner terminated as provided in this Agreement.
(a) During the Employment Term, Executive shall be employed as Vice President and Chief Financial Officer, under the direction and subject to the control of the Chief Executive Officer and the Board (which direction shall be such as is customarily exercised over Executive), and Executive shall have all such powers and authority with respect to the business, affairs, properties and operations as may be reasonably incident to Executive’s duties and responsibilities. In addition, Executive shall have such other duties, functions, responsibilities, and authority as are from time to time delegated to Executive by the Chief Executive Officer and the Board; provided, however, that such duties, functions, responsibilities, and authority are reasonable and customary for a person serving in the same or similar capacity of an enterprise comparable to Employer. The assignment to Executive of duties and/or responsibilities that are materially inconsistent with Executive’s status, positions, duties, responsibilities and functions with Employer immediately prior to the effective date of such assignment or the removal of Executive from, or the failure to re-elect Executive to, any material corporate office of Employer held by Executive immediately prior to such effective date shall constitute a material breach of this Agreement by Employer.
(b) During the Employment Term, Executive shall devote his full business time, skill, and attention and his best efforts to the business and affairs of Employer to the extent necessary to discharge fully, faithfully, and efficiently the duties and responsibilities delegated and assigned to Executive in or pursuant to this Agreement, except for usual, ordinary, and customary periods of vacation and absence due to illness or other disability and as otherwise specified in this Paragraph. Employer agrees that it shall not be a violation of this Paragraph for Executive to (i) serve on corporate, civic or charitable boards or committees, (ii) deliver lectures, fulfill speaking engagements or teach at educational institutions, and (iii) manage personal investments, so long as in the case of (i), (ii) and (iii) above such activities do not significantly interfere or conflict with the performance of Executive’s responsibilities under this Agreement or the interests of Employer. Executive shall not become a member of the board of directors or committees of any other for profit business organization without prior written consent of the Board.
(c) In connection with Executive’s employment under this Agreement, Executive shall be based in Houston, Texas, or at any other place where the principal executive offices of Employer may be located during the Employment Term, subject to the provisions of Paragraph 1(j)(iii). Executive also will engage in such travel as the performance of Executive’s duties in the business of Employer may require.
(d) All services that Executive may render to Employer or any of its Affiliates in any capacity during the Employment Term shall be deemed to be services required by this Agreement and the consideration for such services is that provided for in this Agreement.
(e) Executive hereby acknowledges that he has read and is familiar with Employer’s policies regarding business ethics and conduct, and will comply with all such provisions, and any amendments thereto, during the Employment Term.
5. Compensation and Related Matters.
(i) Beginning with the Effective Date, Executive will participate in any incentive compensation plan (“ICP”) applicable to Executive’s position, as may be adopted by Employer from time to time and in accordance with the terms of such plan. Executive’s annual cash target award opportunity under the ICP will be 75% of Executive’s Base Salary (as in effect at the end of the Annual Period) with a threshold of 50% and a 100% maximum, and shall be subject to such other terms, conditions and restrictions as may be established by the Board or the Compensation, Nominating, and Corporate Governance Committee of the Board (“ICP Bonus Award”). Executive and the Board have agreed that the performance metrics for the ICP Bonus Award applicable to the first Annual Period will mirror the metrics of the Chief Executive Officer as approved by the Compensation, Nominating, and Corporate Governance Committee in May 2015 subject to the above minimum and maximum thresholds. With respect to any subsequent Annual Period(s), Executive and the Chief Executive Officer will develop and submit to the
Compensation, Nominating, and Corporate Governance Committee of the Board, for review and approval, proposed performance metrics by no later than May 1 of the then-current Annual Period, and the Board and Executive will strive to have the performance metrics finalized by no later than May 15. Any ICP Bonus Award determined earned will be paid to Executive within 30 days after the end of the Annual Period to which it relates.
(ii) In addition to any ICP Bonus Award that he earns under the ICP, Employer will also grant Executive an annual award of stock options under its equity incentive plan then in effect in an amount equal to 25% of the number of dollars of the cash award (e.g., if the cash award is $100,000, Executive would receive an award of options to purchase 25,000 shares of Employer’s common stock) (the “ICP Options”). The ICP Options will have an exercise price equal to the fair market value of Employer’s common stock on the grant date, with vesting and expiration as set by the Board or the Compensation, Nominating, and Corporate Governance Committee, it being understood that the agreement for the ICP Options may include a provision that the ICP Options may not be exercised unless the Company’s stockholders approve an amendment to the Company’s equity incentive plan that increases the number of shares authorized under the plan. In addition to the equity award grants provided for in this Paragraph, Employer may grant Executive additional grants based on achieving longer-term performance metrics.
(g) Directors and Officers (D&O) Liability Insurance. Employer has obtained a D&O insurance policy and provided Executive a copy of the policy.
(a) Death. Executive’s employment shall terminate automatically upon his death.
(b) Inability to Perform. Employer may terminate Executive’s employment for Inability to Perform.
case of a termination for Inability to Perform, Cause, or Good Reason, set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision invoked; and (iii) if the termination is by Executive under Paragraph 6(e), or by Employer for any reason, specify the Employment Termination Date. The failure by Employer or Executive to set forth in the Notice of Termination any fact or circumstance that contributes to a showing of Cause or Good Reason shall not waive any right of Employer or Executive or preclude either of them from asserting such fact or circumstance in enforcing or defending their rights.
(i) Investigation: Suspension. Employer may suspend Executive with pay pending (a) an investigation as described in Paragraph 1(d)(viii), or (b) a determination by the Board whether Executive has engaged in acts or omissions constituting Cause. Such a paid suspension shall not constitute a termination of Executive’s employment, or Good Reason. Executive agrees to cooperate with Employer in connection with any such investigation.
7. Compensation Upon Termination of Employment.
beneficiary will have twelve months after the Employment Termination Date to exercise all Employer stock options, provided that in no event may such stock options be exercised after the latest date upon which the options would have expired by their original terms.
(i) Employer shall pay to Executive the Compensation Payment, the Vacation Payment, and any unreimbursed Business Expenses, at the time and in the manner required by applicable law but in no event later than 30 business days after the Employment Termination Date.
(ii) In addition but subject to subparagraph (iii) of this Paragraph 7(e), Employer shall pay or provide to Executive in lieu of any other severance or separation benefits (including, without limitation, those set forth in Employer’s Involuntary Termination Severance Plan), the following if, within 45 days (or within the expiration of such other applicable review and revocation period as may then be mandated by law) after the Employment Termination Date, Executive has signed a general release agreement and does not revoke such release:
(A) An amount equal to Executive’s annual Base Salary as in effect on the Employment Termination Date;
(B) An amount equal to the greater of (i) Executive’s Fully Earned but unpaid annual ICP Bonus Award for the Annual Period in effect on the Employment
Termination Date, or (ii) if Executive’s ICP Bonus Award has not been Fully Earned, the annual ICP Bonus Award at the target level for the Annual Period in effect on the Employment Termination Date. For purposes of this Paragraph, “Fully Earned” means Executive has achieved (i) for the first Annual Period, the performance metrics of the Chief Executive Officer for the ICP Bonus Award applicable to the first Annual Period as approved by the Compensation, Nominating, and Corporate Governance Committee in May 2015, or (ii) for any subsequent Annual Period, the performance metrics of Executive Officer as approved by the Compensation, Nominating, and Corporate Governance Committee for the ICP Bonus Award applicable to the Annual Period in effect on the Employment Termination Date;
(C) Full and immediate vesting of all Employer stock options and restricted stock awards held by Executive as of the Employment Termination Date;
(D) Executive will have twelve months after the Employment Termination Date, to exercise all Employer stock options, provided that in no event may such stock options be exercised after the latest date upon which the options would have expired by their original terms.
(E) Amounts payable under Paragraphs 7(e)(ii)(A)—(B) shall be payable to Executive in a single lump sum payment in cash within 60 days after the Employment Termination Date; provided that if such 60-day period begins in one taxable year and ends in a subsequent taxable year, payment shall occur in the second taxable year of such 60-day period.
(iii) Employer’s obligation under Paragraph 7(e)(ii) is limited as follows:
(A) If Executive engages in any conduct that materially violates Paragraph 8 or engages in any of the Restricted Activities described in Paragraph 9, Employer’s obligation to make payments to Executive under Paragraph 7(e)(ii), if any such obligation remains, shall end as of the date Employer so notifies Executive in writing; provided that such obligation shall not end if an arbitrator finally determines in accordance with Paragraph 27 that Executive did not materially violate Paragraph 8 or engage in any of the Restricted Activities described in Paragraph 9; and
(B) If Executive is found guilty or enters into a plea agreement, consent decree, or similar arrangement with respect to any felony criminal offense or any material violation of federal or state securities laws, or has a cease-and-desist order, injunction, or other penalty or judgment issued or entered in any material civil enforcement action brought against him by any United States regulatory agency or by a court of competent jurisdiction in a proceeding commenced by such a regulatory agency (in either case, regardless of whether Executive admits or denies the substantive allegations, and in each case for actions or omissions related to his employment with Employer or any of its Affiliates), (1) Employer’s obligation to make payments to Executive under Paragraph 7(e)(ii) shall end as of the date that Employer so notifies Executive in writing, and (2) Executive shall repay to Employer any amounts paid to him pursuant to Paragraph 7(e)(ii) within 30 days after receipt of a written request to do so by Employer.
excise tax imposed by Section 4999 of the Code (or any successor provision thereto) by reason of being considered “contingent on a change in ownership or control” of Employer, within the meaning of Section 280G of the Code or any successor provision thereto (such tax being hereafter referred to as the “280G Excise Tax”), then Executive will be entitled to receive an additional payment or payments (a “280G Gross-Up Payment”). The 280G Gross-Up Payment will be in an amount such that, after payment by Executive of all taxes, including any 280G Excise Tax imposed upon the 280G Gross-Up Payment, Executive retains an amount of the 280G Gross-Up Payment equal to the 280G Excise Tax imposed upon the Payment. For purposes of determining the amount of the 280G Gross-Up Payment, Executive will be considered to pay (x) federal income taxes at the highest rate in effect in the year in which the 280G Gross-Up Payment will be made and (y) state and local income taxes at the highest rate in effect in the state or locality in which the 280G Gross-Up Payment would be subject to state or local tax, net of the maximum reduction in federal income tax that could be obtained from deduction of such state and local taxes. The determination of whether the 280G Excise Tax would be imposed, the amount of such 280G Excise Tax, and the calculation of the amounts referred to in this Paragraph 7(f) will be made at the expense of Employer by Employer’s regular independent accounting firm (the “Accounting Firm”), which shall provide detailed supporting calculations. Any determination by the Accounting Firm will be binding upon Employer and Executive. The 280G Gross-Up Payment will be paid to Executive as soon as administratively practicable following, but no later than the end of the calendar year in which falls the date on which Executive remits the related taxes.
For purposes of Section 409A, each payment or amount provided for or due under this Agreement shall be considered a separate payment, and Executive’s entitlement to a series of payments under this Agreement is to be treated as an entitlement to a series of separate payments. Any payments to
be made under this Agreement in connection with Executive’s termination of employment shall only be made if such termination of employment constitutes a “separation from service” as defined in Section 409A.
If (i) Executive is a “specified employee,” as such term is defined in Section 409A and determined as described below in this Paragraph 7(j), and (ii) any payment due under this Agreement is subject to Section 409A and is required to be delayed under Section 409A because Executive is a specified employee, that payment shall be payable on the earlier of (A) the first business day that is six months after Executive’s separation from service, as such term is defined in Section 409A, (B) the date of Executive’s death, or (C) the date that otherwise complies with the requirements of Section 409A. This Paragraph 7(j) shall be applied by accumulating all payments that otherwise would have been paid within six months after Executive’s separation and paying such accumulated amounts on the earliest business day which complies with the requirements of Section 409A. For purposes of determining the identity of specified employees, the Board may establish procedures as it deems appropriate in accordance with Section 409A.
(a) Executive acknowledges and agrees that (i) Employer and its Affiliates are engaged in a highly competitive business; (ii) Employer and its Affiliates have expended considerable time and resources to develop goodwill with their customers, vendors, and others, and to create, protect, and exploit Confidential Information; (iii) Employer must continue to prevent the dilution of its and its Affiliates’ goodwill and unauthorized use or disclosure of its Confidential Information to avoid harm to its legitimate business interests; (iv) in the acquisition, development and marketing of crude oil and natural gas, chemicals or other hydrocarbon products, his participation in or direction of Employer’s or its Affiliates’ day-to-day operations and strategic planning are an integral part of Employer’s continued success and goodwill; (v) given his position and responsibilities, he necessarily will be creating Confidential Information that belongs to Employer and enhances Employer’s goodwill, and in carrying out his responsibilities he in turn will be relying on Employer’s goodwill and the disclosure by Employer to him of Confidential Information; and (vi) he will have access to Confidential Information that could be used by any Competitor of Employer in a manner that would harm Employer’s competitive position in the marketplace and dilute its goodwill. Employer acknowledges and agrees that nothing in this Agreement precludes Executive from accepting employment from any third party employer after termination of employment with Employer and its Affiliates for whatever reason, provided that Executive complies with his obligations under Paragraph 8(d) and at law with respect to the Confidential Information.
(b) Employer acknowledges and agrees that Executive must have and continue to have throughout his employment the benefits and use of its and its Affiliates’ goodwill and Confidential Information in order to properly carry out his responsibilities. Employer accordingly promises upon execution and delivery of this Agreement to provide Executive immediate and continuing access to Confidential Information and to authorize him to engage in activities that will create new and additional Confidential Information.
(c) Employer and Executive thus acknowledge and agree that during Executive’s employment with Employer, and upon execution and delivery of this Agreement, he (i) will receive Confidential Information that is unique, proprietary, and valuable to Employer and/or its Affiliates; (ii) will create Confidential Information that is unique, proprietary, and valuable to Employer and/or its Affiliates; and (iii) will benefit, including without limitation by way of increased earnings and earning capacity, from the goodwill Employer and its Affiliates have generated and from the Confidential Information.
(d) Accordingly, Executive acknowledges and agrees that at all times during his employment by Employer and/or any of its Affiliates and thereafter:
(i) all Confidential Information shall remain and be the sole and exclusive property of Employer and/or its Affiliates;
(ii) he will protect and safeguard all Confidential Information;
(iii) he will hold all Confidential Information in strictest confidence and not, directly or indirectly, disclose or divulge any Confidential Information to any person other than an officer, director, or employee of, or legal counsel for, Employer or its Affiliates, to the extent necessary for the proper performance of his responsibilities unless authorized to do so by Employer or compelled to do so by law or valid legal process;
(iv) if he believes he is compelled by law or valid legal process to disclose or divulge any Confidential Information, he will notify Employer in writing sufficiently in advance of any such disclosure to allow Employer the opportunity to defend, limit, or otherwise protect its interests against such disclosure;
(v) at the end of his employment with Employer for any reason or at the request of Employer at any time, he will return to Employer all Confidential Information and all copies thereof, in whatever tangible form or medium, including electronic; and
(vi) absent the promises and representations of Executive in this Paragraph 8 and in Paragraph 9, Employer would require him immediately to return any tangible Confidential Information in his possession, would not provide Executive with new and additional Confidential Information, would not authorize Executive to engage in activities that will create new and additional Confidential Information, and would not enter or have entered into this Agreement.
(a) He will not, whether on his own behalf or on behalf of any other individual, partnership, firm, corporation or business organization, either directly or indirectly solicit, induce, persuade, or entice, or endeavor to solicit, induce, persuade, or entice, any person who is then employed by or otherwise engaged to perform services for Employer or its Affiliates to leave that employment or cease performing those services; and
(b) He will not, whether on his own behalf or on behalf of any other individual, partnership, firm, corporation or business organization, either directly or indirectly solicit, induce, persuade, or entice, or endeavor to solicit, induce, persuade, or entice, any person who is then a customer, supplier, or vendor of Employer or any of its Affiliates to cease being a customer, supplier, or vendor of Employer or any of its Affiliates or to divert all or any part of such person’s or entity’s business from Employer or any of its Affiliates.
Executive acknowledges and agrees that the restrictions contained in this Paragraph 9 are ancillary to an otherwise enforceable agreement, including without limitation the mutual promises and undertakings set forth in Paragraph 8; that Employer’s promises and undertakings set forth in Paragraph 8 and Executive’s position and responsibilities with Employer give rise to Employer’s interest in restricting Executive’s post-employment activities; that such restrictions are designed to enforce Executive’s promises and undertakings set forth in this Paragraph 9 and his common-law obligations and duties owed to Employer and its Affiliates; that the restrictions are reasonable and necessary, are valid and enforceable under Texas law, and do not impose a greater restraint than necessary to protect Employer’s goodwill, Confidential Information, and other legitimate business interests; that he will immediately notify Employer in writing should he believe or be advised that the restrictions are not, or likely are not, valid or enforceable under Texas law or the law of any other state that he contends or is advised is applicable; that the mutual promises and undertakings of Employer and Executive under Paragraphs 8 and 9 are not contingent on the duration of Executive’s employment with Employer; that absent the promises and representations made by Executive in this Paragraph 9 and Paragraph 8, Employer would require him to return any Confidential Information in his possession, would not provide Executive with new and additional Confidential Information, would not authorize Executive to engage in activities that will create new and additional Confidential Information, and would not enter or have entered into this Agreement; and that his obligations under Paragraphs 8 and 9 supplement, rather than supplant, his common-law duties of confidentiality and loyalty owed to Employer.
Employer agrees that any action that is undertaken by a subsequent employer of Executive will not be treated as an action by Executive for purposes of the foregoing provisions of this Paragraph 9 unless Executive personally engages in a Restricted Activity, whether directly or indirectly.
(a) In consideration of Employer’s promises and undertakings in this Agreement, Executive agrees that all Work Product will be disclosed promptly by Executive to Employer, shall be the sole and exclusive property of Employer, and is hereby assigned to Employer, regardless of whether (i) such Work Product was conceived, made, developed or worked on during regular hours of his employment or his time away from his employment, (ii) the Work Product was made at the suggestion of Employer; or (iii) the Work Product was reduced to drawing, written description, documentation, models or other tangible form. Without limiting the foregoing, Executive acknowledges that all original works of authorship that are made by Executive, solely or jointly with others, within the scope of his employment and that are protectable by copyright are “works made for hire,” as that term is defined in the United States Copyright Act (17 U.S.C., Section 101), and are therefore owned by Employer from the time of creation.
(b) Executive agrees to assign, transfer, and set over, and Executive does hereby assign, transfer, and set over to Employer, all of his right, title and interest in and to all Work Product, without the necessity of any further compensation, and agrees that Employer is entitled to obtain and hold in its own name all patents, copyrights, and other rights in respect of all Work Product. Executive agrees to (i) cooperate with Employer during and after his employment with Employer in obtaining patents or copyrights or other intellectual-property protection for all Work Product; (ii) execute, acknowledge, seal, and deliver all documents tendered by Employer to evidence its ownership thereof throughout the world; and (iii) cooperate with Employer in obtaining, defending, and enforcing its rights therein.
(c) Executive represents that there are no other contracts to assign inventions or other intellectual property that are now in existence between Executive and any other person or entity. Executive further represents that he has no other employment or undertakings that might restrict or impair his performance of this Agreement. Executive will not in connection with his employment by Employer, use or disclose to Employer any confidential, trade secret, or other proprietary information of any previous employer or other person that Executive is not lawfully entitled to disclose.
(i) If to Employer, at:
Hyperdynamics Corporation
Attn: Chairman of the Board of Directors
00000 Xxxxxxxxxxx Xxxx Xxxxx 000
Xxxxxxx, Xxxxx 00000
(ii) If to Executive, at Executive’s then-current home address on file with Employer.
Nothing in this Agreement, express or implied, is intended to or shall confer upon any person other than the Parties, and their respective heirs, legal representatives, successors, and permitted assigns, any rights, benefits, or remedies of any nature whatsoever under or by reason of this Agreement.
20. Assumption by Successor. Employer shall ensure that any successor or assignee (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all the business and/or assets of Employer or the oil and gas acquisition, exploration, development and production business of Employer, either by operation of law or written agreement, assumes the obligations of this Agreement (the “Assumption Obligation”). If Employer fails to fulfill the Assumption Obligation, such failure shall be considered a material breach of this Agreement for purposes of Paragraph 1(i)(iv); provided, however, that the compensation to which Executive would be entitled pursuant to Paragraph 7 upon a termination for Good Reason shall be the sole remedy of Executive for any failure by Employer to fulfill the Assumption Obligation. As used in this Agreement, “Employer” shall include any successor or assignee (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all the business and/or assets of Employer or the oil and gas exploration, development and production business of Employer that executes and delivers the agreement provided for in this Paragraph 20 or that otherwise becomes obligated under this Agreement by operation of law.
21. Governing Law. This Agreement and the employment of Executive, as well as any arbitration proceedings hereunder, shall be governed by the laws of the State of Texas except for its laws with respect to conflict of laws
EMPLOYER |
EXECUTIVE | |||
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HYPERDYNAMICS CORPORATION |
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By: |
/s/ XXX XXXXXXX |
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By: |
/s/ XXXXX XXXXXX |
Name: |
Xxx Xxxxxxx |
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Name: |
Xxxxx Xxxxxx, Individually |
Title: |
Chief Executive Officer |
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Title: |
Vice President and Chief Financial Officer |