Document:

EMPLOYMENT AGREEMENT

 

[Letterhead of Paramount Energy Operating Corp.]

Exhibit 10.4

October 31, 2002

Clayton H. Riddell

c/o Paramount Energy Operating Corp.

500, 630 – 4 Avenue S.W.

Calgary, AB

T2P 0J9

Dear Clay:

Re: Employment with Paramount Energy Operating Corp. (“PEOC”)

You have been employed as the Chairman and Chief Executive Officer, with PEOC,
the trustee for the Paramount Operating Trust, pursuant to the provisions of a
verbal agreement, the terms of which PEOC and you wish to supersede by this
letter agreement (the “Agreement”).

I am pleased to confirm that PEOC and you have agreed, for and in consideration
of the sum of $10.00 now paid by each party to the other party and the mutual
covenants and agreements outlined in this Agreement, that your employment with
PEOC will be governed by the following terms and conditions:

	 	 	 
	Commencement Date:	 	
Your employment with PEOC commenced effective June
28, 2002. For the purposes of determining your
entitlement to benefits and vacation and other
issues relating to your employment, PEOC agrees to
recognize your prior service with Paramount
Resources Ltd.
	 	 	 
	Compensation:	 	
You will receive a base remuneration of $175,000.00
(including allowances) per annum. PEOC agrees to
review your base remuneration annually and agrees
that following each such review, the then current
base remuneration may be increased to reflect your
performance, the company’s performance and other
relevant factors.
	 	 	 
	Benefits:	 	
You shall be entitled to participate in the PEOC
employee benefits plan as may be in effect at any
given time, subject to satisfying any insurability
requirements established by the carrier or carriers
that provide the benefits.
	 	 	 
	Unit Incentive Rights:	 	
Subject to regulatory approval and the terms and
conditions of the Unit Incentive Plan, you will be
granted 200,000 Incentive Rights, initially
exercisable at $5.05 per Trust Unit.
	 	 	 
	Vacation:	 	
Your vacation entitlement for the year 2002 and
thereafter will be governed by the PEOC employee
handbook.

 

2

We look forward to you continuing with PEOC as an integral part of our
Management Team, working together to bring continued value to unitholders and
growth to the organization.

Yours truly,

PARAMOUNT ENERGY OPERATING CORP.

 

/s/ Susan Riddell Rose

Susan Riddell Rose

/bmg

I, Clayton H. Riddell, hereby agree to the terms set out in this Agreement.

	 	 	 	 	 	 
	 	 	 	 	 
	/s/ Clayton H. Riddell
	 	 
	 	November 5, 2002
	
	 	 	 	

	Clayton H. Riddell
	 	 
	 	DateFIRST AMENDING AGREEMENT

 

Exhibit 10.5(a)

FIRST AMENDING AGREEMENT TO COMMITMENT LETTER

between

COMPUTERSHARE TRUST COMPANY OF CANADA, as Trustee of

Paramount Energy Trust

(as Borrower)

and

PARAMOUNT ENERGY OPERATING CORP., as Trustee of

Paramount Operating Trust

(the “Guarantor”)

and

BANK OF MONTREAL,

CANADIAN IMPERIAL BANK OF COMMERCE and

THE BANK OF NOVA SCOTIA

(as Lenders)

and

BANK OF MONTREAL

(as Agent for the Lenders)

Dated as of September 30, 2002

 

 

-2-

         THIS FIRST AMENDING AGREEMENT TO COMMITMENT LETTER is dated and effective
as of the 30th day of September, 2002.

AMONG:

	 	 	 	COMPUTERSHARE TRUST COMPANY OF CANADA as Trustee of Paramount
Energy Trust (the “Borrower")

AND:

	 	 	 	PARAMOUNT ENERGY OPERATING CORP., as Trustee of Paramount Operating
Trust (the “Guarantor”)

AND:

	 	 	 	BANK OF MONTREAL, CANADIAN IMPERIAL BANK OF COMMERCE and THE BANK
OF NOVA SCOTIA (collectively, in their capacities as Lead Arrangers
and Lenders called the “Lenders")

AND:

	 	 	 	BANK OF MONTREAL in its capacity as agent for the Lenders (the
“Agent")
	 
	 	 	 	WHEREAS:

1.                  The Borrower, the Guarantor Canadian Imperial Bank of Commerce and The Bank
of Nova Scotia (each in its capacity as a Lender) and Bank of Montreal (in its
capacity as Agent and as a Lead Arranger) are parties to a letter agreement
dated as of August 15, 2002 (the “Commitment Letter"); and

2.                    The Borrower and Guarantor wish to obtain the consent and agreement of the
Lenders to amend the Commitment Letter.

                        NOW THEREFORE, in consideration of the premises, the covenants herein
contained and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged by each of the parties hereto, the
parties agree as follows:

1.                    Definitions

                        Capitalized terms used herein, including the recitals hereto, shall have
the meanings ascribed thereto in the Commitment Letter, unless otherwise
defined herein.

2.                    Amendments to Commitment Letter

The Commitment Letter is amended in the section entitled “Conditions Applicable
to Commitments” on page 3 thereof by deleting the reference in the final
paragraph of that section to “September 30, 2002” and inserting November 29,
2002;

 

-3-

	3.	 	                    Representations and Warranties

Each of the Borrower and the Guarantor hereby represents and warrants to and in
favour of the Agent and the Lenders that this First Amending Agreement has been
duly authorized, executed and delivered by it and constitutes a legal, valid
and binding obligation of it, enforceable in accordance with its terms.

	4.	 	                    Miscellaneous
	 
	(a)	 	Save and except as amended aforesaid, the Commitment Letter remains in
full force and effect and unamended and time remains of the essence
thereunder, as amended hereby.
	 
	(b)	 	For the purposes of the Commitment Letter, this First Amending Agreement
shall be read together with the Commitment Letter as one instrument.
	 
	(c)	 	This First Amending Agreement shall be governed by and construed in
accordance with the laws of the Province of Alberta.
	 
	(d)	 	This First Amending Agreement may be executed in any number of
counterparts and by different parties and separate counterparts, each of
which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same instrument.
	 
	(e)	 	This First Amending Agreement shall, notwithstanding its actual date of
execution, be effective as of September 30, 2002.

IN WITNESS WHEREOF the parties hereto have caused this First Amending Agreement
to be duly executed as of the 30th day of September, 2002.

	 	 	 	 	 	 	 
	BANK OF MONTREAL	 	BANK OF NOVA SCOTIA
	
	
	
	

	 	 	 	 	 	 	 
	
	
	
	

	Per:	 	 	 	Per:	 	 
	 	 	

	 	 	 	

	 	 	
Name:

Title:
	 	 	 	Name:

Title:
	
	
	
	

	 	 	 	 	 	 	 
	
	
	
	

	 	 	 	 	Per:	 	 
	 	 	 	 	 	 	

	 	 	 	 	 	 	Name:

Title:
	
	
	
	

	 	 	 	 	 	 	 
	
	
	
	

	CANADIAN IMPERIAL BANK OF COMMERCE	 	 	 	 
	
	
	
	

	Per:	 	 	 	 	 	 
	 	 	

	 	 	 	 
	 	 	
Name:

Title:	 	 	 	 
	
	
	
	

	 	 	 	 	 	 	 
	
	
	
	

	Per:	 	 	 	 	 	 
	 	 	

	 	 	 	 
	 	 	
Name:

Title:	 	 	 	 

 

-4-

	 	 	 	 	 	 	 
	COMPUTERSHARE TRUST COMPANY OF

CANADA, as Trustee of Paramount

Energy Trust, by its agent Paramount

Energy Operating Corp.	 	PARAMOUNT ENERGY OPERATING CORP., as

Trustee of Paramount Operating

Trust, and in its own right
	
	
	
	

	 	 	 	 	 	 	 
	
	
	
	

	By:	 	 	 	By:	 	 
	 	 	

	 	 	 	

	 	 	
Name:
	 	 	 	Name:
	
	
	
	

	 	 	
Title:
	 	 	 	Title:EMPLOYMENT AGREEMENT

 

[Letterhead of Paramount Energy Operating Corp.]

Exhibit 10.6

 

October 31, 2002

Susan Riddell Rose

c/o Paramount Energy Operating Corp.

500, 630 – 4 Avenue S.W.

Calgary, AB

T2P 0J9

Dear Susan:

Re: Employment with Paramount Energy Operating Corp. (“PEOC”)

You are currently on maternity leave and are employed as the President and Chief Operating Officer, with PEOC,
the trustee for the Paramount Operating Trust, pursuant to the provisions of a
verbal agreement, the terms of which PEOC and you wish to supersede by this
letter agreement (the “Agreement”).

I am pleased to confirm that PEOC and you have agreed, for and in consideration
of the sum of $10.00 now paid by each party to the other party and the mutual
covenants and agreements outlined in this Agreement, that your employment with
PEOC will be governed by the following terms and conditions:

	 	 	 
	Commencement Date:	 	
Your employment with PEOC commenced effective June
28, 2002. For the purposes of determining your
entitlement to benefits and vacation and other
issues relating to your employment, PEOC agrees to
recognize your prior service with Paramount
Resources Ltd.
	 	 	 
	Compensation:	 	
You will receive a base remuneration of $225,000.00
per annum. PEOC agrees to review your base
remuneration annually and agrees that following
each such review, the then current base
remuneration may be increased to reflect your
performance, the company’s performance and other
relevant factors.
	 	 	 
	Benefits:	 	
You shall be entitled to participate in the PEOC
employee benefits plan as may be in effect at any
given time, subject to satisfying any insurability
requirements established by the carrier or carriers
that provide the benefits.
	 	 	 
	Unit Incentive Rights:	 	
Subject to regulatory approval and the terms and
conditions of the Unit Incentive Plan, you will be
granted 200,000 Incentive Rights, initially
exercisable at $5.05 per Trust Unit.
	 	 	 
	Vacation:	 	
Your vacation entitlement for the year 2002 and
thereafter will be governed by the PEOC employee
handbook.

 

 

2

We look forward to you continuing with PEOC as an integral part of our
Management Team, working together to bring continued value to unitholders and
growth to the organization.

Yours truly,

PARAMOUNT ENERGY OPERATING CORP.

/s/ Clayton H. Riddell

Clayton H. Riddell

/bmg

I, Susan Riddell Rose, hereby agree to the terms set out in this Agreement.

 

	 	 	 
	/s/ Susan Riddell Rose

Susan Riddell Rose	 	
November 5, 2002

DateEMPLOYMENT AGREEMENT

 

[Letterhead of Paramount Energy Operating Corp.]

Exhibit 10.7

October 31, 2002

Gary Jackson

119 Strathcona Road S.W.

Calgary, AB

T3H 1N2

Dear Gary:

Re: Employment with Paramount Energy Operating Corp. (“PEOC”)

You have been employed as the Vice-President, Land, Legal and Acquisitions,
with PEOC, the trustee for the Paramount Operating Trust (“Trust”), pursuant to
the provisions of an employment letter agreement, the terms of which PEOC and
you wish to supersede by this letter agreement (the “Agreement”).

I am pleased to confirm that PEOC and you have agreed, for and in consideration
of the sum of $10.00 now paid by each party to the other party and the mutual
covenants and agreements outlined in this Agreement, that your employment with
PEOC will be governed by the following terms and conditions:

	 	 	 	 	 
	Commencement Date:	 	
Your employment with PEOC commenced effective June
28, 2002. For the purposes of determining your
entitlement to benefits and vacation and other
issues relating to your employment, PEOC agrees to
recognize your prior service with Summit Resources
Limited which commenced on May 15, 2000.
	 	 
	Compensation:	 	(a)	 	You will receive a base salary of $176,814.00
per annum. PEOC agrees to review your base salary
annually and agrees that following each such
review, the then current base remuneration may be
increased to reflect your performance, the
company’s performance and other relevant factors.
	 	 
	 	 	(b)	 	You will also receive group RRSP
contributions, on an annual basis, in the amount
of $6,750.00.
	 	 
	Benefits:	 	
You shall be entitled to participate in the PEOC
employee benefits plan as may be in effect at any
given time, subject to satisfying any insurability
requirements established by the carrier or
carriers that provide the benefits.
	 	 
	Club Membership:	 	
PEOC shall pay to you or on your behalf membership
fees in the Bow Valley Club or equivalent type of
club for business use.

 

 

2

	 	 	 	 	 
	Termination/Change of
Control:	 	
In the event that:
	 	 	(a)	 	your employment is terminated without cause, or
	 	 
	 	 	(b)	 	there is any material reduction in your
salary, benefits or status in relation to any
office or directorship you may hold in PEOC or the
Trust, or any subsidiary, or affiliated company,
or
	 	 
	 	 	(c)	 	if after completion of the proposed Rights
Offering of Paramount Energy Trust, the major
unitholder of the Paramount Energy Trust,
Paramount Oil & Gas Ltd., divests itself of more
than 60% of its units in the Paramount Energy
Trust,
	 	 
	 	 	
you shall be entitled to a termination payment of
the greater of one and one-half year’s salary and
benefits, or standard industry severance
compensation, provided however that the provisions
of (c) above shall only be available to you for a
period of 60 days following the change of control.
Any compensation payable to you will be paid by
PEOC, without any deductions except as required by
law, and in exchange for a complete release in
favour of PEOC, the Trust and Paramount Energy
Trust, in a form satisfactory to PEOC.
	 	 
	Summit Offer of
Employment:	 	
In consideration for the partial settlement of
your change of control severance payment rights
pursuant to an Offer of Employment letter
agreement dated April 14, 2000 between Summit
Resources Limited and Gary Jackson (“Summit Offer
of Employment”), a lump sum payment has been made
to you in the amount of $123,000.00, and a partial
release has been signed in exchange for such
compensation. You retain the right on or before
February 1, 2003 to exercise on the remainder of
your Change of Control severance payment rights
pursuant to the Summit Offer of Employment by
electing, in writing, to terminate your employment
with PEOC. In this event, PEOC agrees to make a
lump sum payment of $123,000.00, less applicable
tax and other statutory withholdings, and provide
six months benefits. A release in favour of PEOC,
the Trust and Paramount Energy Trust in a form
satisfactory to PEOC, will be signed in exchange
for the payment.
	 	 
	Unit Incentive Rights:	 	
Subject to regulatory approval and the terms and
conditions of the Unit Incentive Plan, you will be
granted 100,000 Incentive Rights, initially
exercisable at $5.05 per Trust Unit.
	 	 
	Vacation:	 	
Your vacation entitlement for the year 2002 will
be a prorated portion of 20 days and commencing
January 1, 2003 your vacation entitlement will be
25 days per year.

 

 

3

We look forward to you continuing with PEOC as an integral part of our
Management Team, working together to bring continued value to unitholders and
growth to the organization.

Yours truly,

PARAMOUNT ENERGY OPERATING CORP.

/s/ Susan Riddell Rose

Susan Riddell Rose

/bmg

I, Gary Jackson, hereby agree to the terms set out in this Agreement.

	 	 	 
	/s/ Gary Jackson	 	November 5, 2002
	
	 	

	Gary Jackson	 	Date

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