Exhibit
10.1


 


CONFIDENTIAL


 


HARKEN ENERGY CORPORATION


SEVERANCE AGREEMENT


 


THIS SEVERANCE AGREEMENT (the “Agreement”) is signed
on this 21st day of July 2006 by and between HARKEN
ENERGY CORPORATION, a Delaware corporation, whose principal
office is 180 State Street, Suite 200, Southlake, Texas 76092 (together with
its subsidiaries, including GULF ENERGY MANAGEMENT COMPANY (“the Company”), and JAMES W. DENNY, III, an individual
employee of the Company, whose home address is 9723 Briar
Forest Dr., Houston, Texas 77042, (the “Employee”).


 


WHEREAS, the Employee is, as of the date hereof, in the
employ of the Company; and


 


WHEREAS, the Company and Employee are entering into this
Agreement in order to induce the Employee to remain with
the Company by providing to Employee assurance of 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
Termination:


 


In the event that Employee is terminated by the Company during the Term
of this Agreement, then the Company will pay to Employee a sum of money, IN
LIEU OF any and all severance pay and related compensation
such Employee is entitled to receive under the policies then in effect by
the Company, in an amount equal to twenty-four (24) months of Employee’s
salary.


 


The salary used to compute this 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 Severance
will become due to Employee from the Company upon the Employee’s
involuntarily termination, in connection with, among other things, a layoff, operations
closing or workforce reduction.


 


2.             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.


 


3.             Effective Date:  The Effective Date for purposes of this
Agreement and specifically the term provided in the
following paragraph is June 30, 2006.


 


4.             Term of Agreement:  Unless otherwise agreed to in writing by the
parties hereto, this Agreement shall be in effect from the
Effective Date defined above and for one (1) calendar year thereafter.
At the expiration of the Term this Agreement may be extended, modified or renegotiated
only upon the mutual written agreement of both the Employee and the Company.


 


 

















 


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 abovewritten.


 


 


	
  HARKEN ENERGY CORPORATION (the Company)

  
	
   

  	
   

  
	
  By:

  	
  /s/ Mikel D. Faulkner

  	
   

  
	
  Name:

  	
  Mikel D. Faulkner

  
	
  Its:

  	
  President & CEO

  
				



 


James W. Denny, III (the
Employee)


 


	
  By:

  	
  /s/ James W. Denny

  	
   

  



 


 


 


 


JD Severance Agreement


7-10-06


 


 


 


2