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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
Date: 7/8/2009
Industry: Oil Well Services and Equipment     Sector: Energy

EMPLOYMENT AGREEMENT, Parties: erhc energy inc
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Exhibit 10.21

EMPLOYMENT AGREEMENT

 

This Employment Agreement (this "Agreement") by and between ERHC Energy (Cayman) Limited, a Company incorporated in the Cayman ("Company"), and David Alan Bovell ("Employee") is effective from May 1, 2008.

 

The Company and the Employee agree 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 May 1, 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.

 

3              Duties The Employee shall serve as the Vice President Corporate Development of the Company and its subsidiaries. The Employee shall faithfully and diligently perform such duties and responsibilities appropriate to such position as may be determined by 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 executive management services to any of the Company's affiliates, subsidiaries and parent or holding companies.

 

4.              Compensation and Benefits .

 

(a) Salary . During the employment term, the Company will pay Employee a gross salary of US$235,000 per annum ("Salary"). The Salary is payable in equal monthly installments. The Employee shall be responsible for all personal taxes applicable to or arising from such Salary paid to the Employee.

 

(b) Incentive Compensation. Subject to the provisions contained in Paragraph 5 hereof, the Employee shall receive such incentive compensation as shall be determined by the Board in conjunction with the Board of Directors of ERHC Energy Inc (the "Parent Board"). For the purpose of performance targets based on stock price performance of any of the Company's affiliates, subsidiaries or parent or holding company, it is hereby agreed that the baseline price for assessing stock price performance is the closing price of the relevant stock on the date of Commencement and such price shall be the strike price of any stock options to be awarded to the Employee as incentive compensation under the Employment. The Employee shall be responsible for all personal taxes applicable to or arising from any incentive compensation accruing to the Employee.

 

(c) 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 and there is a definite and urgent commercial necessity in the corporate interest of the Employee that the travel be immediately undertaken.

 

(f) Annual Vacation. Subject to the provisions of paragraph 5 hereof, the Employee shall be entitled to a vacation of four (4) weeks in every consecutive period of 12 months from the date of Commencement. 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.

 

(q) Relocation Allowance . If by virtue of this Employment, it becomes necessary for the Employee to relocate permanently from his current city or country of abode for the purposes of the Employment, the Company will reimburse to the Employee the cost of the requisite relocation by the Employee up to a maximum reimbursement of US$15,000. "Employee's relocation" in the preceding sentence includes relocation of the Employee and of the Employee's spouse, dependents and household items as well as any other relocation efforts or activities undertaken by the Employee in respect or as a result of the Employment.

 

(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 and benefits schemes, including medical, dental, vision and life health-care benefits schemes and retirement plans that are generally open to participation by all employees of the Company. To the extent that the Employee is required by the terms of this engagement, or otherwise in the furtherance of the Company's interests, to engage in travel to remote or insecure locations where exceptional arrangements will be necessary to protect the Employee's security or health, the Company undertakes to cover all reasonable expenses relating thereto.

 

(i) Legal Costs . Subject to the provisions of the Company's Articles of Incorporation as of the date hereof on indemnification of officers and directors of the Company, if by virtue of the Employee fulfilling his duties under the terms of this Agreement, or otherwise engaging in activities in the furtherance of the interests of the Company, any legal proceedings are brought by third parties against the Employee in his capacity as an officer of the Company or personally, whether such proceedings are initiated before or after the termination of this Employment, the Company shall meet all the Employees legal costs reasonably and properly incurred in defending himself. For the avoidance of doubt the term legal proceedings shall be deemed to include any actions taken by any regulatory authority, properly constituted court of law, administrative tribunal, or governmental or professional investigatory body

 

5.               Termination of Employment .

 

(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 term.

 

 

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

 

(b) As used herein, "For 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 essential functions of his office and position or functions 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, to


 
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