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EMPLOYMENT AGREEMENT

Employment Agreement

EMPLOYMENT AGREEMENT | Document Parties: ERHC ENERGY INC You are currently viewing:
This Employment Agreement involves

ERHC ENERGY INC

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Title: EMPLOYMENT AGREEMENT
Governing Law: Texas     Date: 7/8/2009
Industry: Oil Well Services and Equipment     Sector: Energy

EMPLOYMENT AGREEMENT, Parties: erhc energy inc
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Exhibit 10.20

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (this "Agreement") by and between ERHC Energy Inc, a Colorado corporation ("Company"), and Sylvan Odobulu ("Employee") is effective from July 3, 2008 (the "date of Commencement").

 

WHEREAS the Employee has been employed for the two years immediately preceding the date of Commencement as the Company's Internal Accountant/Auditor;

 

WHEREAS the Company and the Employee have agreed that the Employee should be appointed the Company's Controller and Head-Office Administrator upon the terms and conditions hereinafter following;

 

NOW THIS AGREEMENT WITNESSES

 

The Company and the Employee are agreed as follows:

 

1.             Employment . Subject to the provisions for termination as hereinafter provided, Employee's employment with Company shall be pursuant to the terms of this Agreement and shall be for the period commencing on 3 July 2008 ("the date of commencement") and expiring 24 months after the date of commencement, which period is hereinafter called "the Primary Term."

 

2.              Renewal. Subject to the provisions for termination as hereinafter provided, the Company and the Employee may, at any time before the expiration of the Primary Term, mutually agree that the Employment shall be renewed at the expiration of the Primary Term on the same terms and conditions as are contained herein or on such other terms and conditions as the Company and the Employee may then mutually agree. Unless either party expresses in writing and delivers a notice of intention not to renew, at least sixty (60) days in advance, this Agreement shall be deemed to have automatically renewed for a term equal to the Primary Term.

 

3.             Duties . The Employee shall serve as the Controller and Head Office Administrator of the Company and shall perform, faithfully and diligently, such duties, and shall have such responsibilities appropriate for such position, as shall be assigned to him from time to time by the CFO, the Chief Executive Officer ("CEO") or the Board of Directors of the Company ("the Board"). As part of the said duties and responsibilities, Employee may from time to time be required to provide Internal Control and Administrative services to any of the Company's affiliates and subsidiaries. The Employee shall devote his full time and attention to his employment with the Company. The Employee may, with the approval of the Chief Executive Officer or the Board of Directors, serve on the boards of directors of the Company's affiliates and subsidiaries.

 

4.             Compensation and Benefits .

 

(a) Salary . During the Employment Term, the Company will provide Employee a base salary of $13,500 per month. The base salary shall be payable in bi-weekly installments, less state and federal withholding, social security, and other standard payroll deductions as shall be required to be withheld by applicable law or regulations, payable to Employee in accordance with the policies of the Company as from time to time in effect.

 

 

 


 

 

 

(b) Incentive Compensation. Subject to the provisions contained in Paragraph 5 hereof, Employee shall from time to time receive such incentive compensation as may be approved by the Board. Incentive compensation under this Agreement shall not be payable at any time earlier than the end of 6 months from the Commencement of the Primary Term. It is agreed that the period of assessment and accrual for determination of amount payable as compensation shall commence on the date of Commencement of this Agreement. It is understood and agreed that the accrual of such incentive compensation shall be based on the attainment of performance targets as mutually agreed between the Chief Executive Officer and the Employee and approved by the board. For the purpose of incentive compensation based on stock price performance, it is hereby agreed that the baseline price for the Company stock is the closing price of the Company stock on the OTC Bulletin Board on the date of commencement. The Employee shall be responsible for all federal, state and local taxes applicable to or arising from any incentive compensation accruing to the Employee.

 

(c) Vehicle Allowance. The Employee shall be entitled to a monthly vehicle allowance of $1,250.

 

(d) General Business Expenses. Subject to sub-paragraph (e) of this paragraph 4, the Company shall pay or reimburse the Employee for all authorized reasonable expenses authorized under Company's reimbursement policies that are necessarily incurred by the Employee during the Employment in the performance of the Employee's service under this Agreement. Such payment shall be made upon presentation of such documents as the Company customarily requires of its employees prior to making such payments or reimbursements.

 

(e) Travel expenses. Where travel by commercial carriage is required by the Employee for the purposes of performance of the Employee's duties under this Agreement, the Employee shall be entitled to travel on that class of ticket that is commonly known as "business class." The Employee may undertake travel by a higher class of ticket only where there is no business class ticket available.

 

(f) Annual Vacation. Subject to the provisions of paragraph 5 hereof, the Employee shall be entitled to a vacation of four weeks in every consecutive period of 12 months from the date of commencement provided always that the specific dates on which the vacation is taken shall be determined by the Chief Executive Officer. The accrual and payment of the Employee's salary shall not be affected or withheld by reason of the fact only that the Employee is on vacation in accordance herewith.

 

(g) Relocation Expense. Company agrees to reimburse the Employee for relocation associated with this employment in an amount to be agreed between the Chief Executive Officer and the Employee.

 

(h) Other Benefits . Other than the compensation and benefits specified in the preceding sub-paragraphs of paragraph 4 hereof, the Employee disclaims, disavows and relinquishes any entitlement to any other allowances and benefits from the Company provided that the Employee may contribute to and benefit from mutual compensation schemes that are generally open to participation by all employees of the company.

 

5.              Termination of Employment .

 

 

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(a) The Employee's status as an employee of the Company will terminate immediately and automatically upon the earliest to occur of: (i) the death or "Disability" (as defined below) of the Employee; (ii) the discharge of the Employee by the Company "For Cause" (as defined below); (iii) termination of this Agreement by notice by the Employer or Company as stated herein or (iv) the expiration, without renewal, of the Employment.

 

The Employee hereby accepts such employment subject to the terms and conditions hereof.

 

(b) As used herein, Tor Cause" shall mean any one or more of the following: (i) material or repeated violations by the Employee (after notice thereof from the Company) of the terms of this Agreement or the Employee's material or repeated failure (after notice thereof from the Company) to perform the Employee's duties in a manner consistent with the Employee's position; (ii) excessive absenteeism on the part of the Employee not related to illness or disability; (iii) the Employee's indictment for a felony or conviction of a misdemeanor involving moral turpitude; (iv) the Employee's commission of fraud, embezzlement, theft or other acts involving dishonesty, or crimes constituting moral turpitude, in any case whether or not involving the Company, that in the opinion of the Board, renders the Employee's continued employment harmful to the Company; (v) substance abuse on the part of the Employee; or (vi) knowing and material failure by the Employee to comply with applicable laws, regulations and policies relating to the business of the Company or its Affiliates; or (vii) the Employee acting in bad faith relative to the Company's business interests. In the event the Company terminates this Agreement For Cause, Employee shall be entitled to receive only that Salary earned and Benefits accrued up to the date of termination.

 

(c) As used herein, "Disability" shall mean a physical or mental incapacity of the Employee that, in the good faith determination of the Company has prevented the Employee from performing the duties assigned the Employee by the Company for 30 consecutive days or for a period of more than 60 days in the aggregate in any 12-month period and that, in the determination of the Company after consultation with a medical doctor appointed by the Company, may be expected to prevent the Employee for any period of time thereafter from devoting the Employee's full time and energies (or such lesser time and energies as may be acceptable to the Company in its sole discretion) to the Employee's duties as provided hereunder. The Employee's employment hereunder, except as otherwise agreed to in writing between the Company and the Employee, shall cease as of the date of such determination. The Employee agrees to submit to medical examinations, at the Company's sole cost and expense, to determine whether a Disability exists pursuant to reasonable requests that the Company may make from time to time. In the event this Agreement is terminated by the Company under sub-paragraph 5 (a) (i) hereof, Employee or his legal representatives, as applicable, shall be entitled to receive any outstanding Salary earned and Benefits then accrued, up to the date of the employee's death, or the date of termination in the event of disability, as applicable.

 

(d) Additional Grounds for Termination by Company . The Company may terminate Employee's employment: (i) upon the bankruptcy or insolvency of Company; or (ii) in connection with the dissolution or liquidation of the Company. In event of termination by the company under this sub-paragraph 5(d), the Company shall be obligated to Employee for the payment, at the times and upon the terms provided for herein, of the Employee's Salary for the number of full months remaining in the Primary Term of this Agreement, together with all unpaid Benefits awarded or accrued up to the date of termination.

 

 

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(e)  Termination without Cause by Company . Notwithstanding the foregoing, Company shall have the right to terminate this Agreement and Employee's employment with the Company, wit


 
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