Document:

Offer letter to Milam Randolph Pharo

 Exhibit 10.5 

November 16, 2011 
 Mr. Milam Randolph Pharo 
 401 Aspen Pl. 

Golden, CO 80403 
 Dear Randy: 

Magellan Petroleum Corporation (the “Company”) is pleased to offer you employment as its Vice President – General Counsel and Secretary
effective November 30, 2011 (the “effective date of employment”), on the following terms and conditions: 
  

	 	•	 	 Your base salary for your first year will be $175,000. 

 

	 	•	 	 Upon the effective date of employment, the Company will grant you 500,000 stock options to purchase common stock of the Company. The exercise price per
share for these options shall be the closing price for the Company’s common stock as reported on the NASDAQ Capital Market on the effective date of employment. The vesting for such options shall be one third on the effective date of employment,
and, provided you remain an employee of the Company on the following respective vesting dates, the second one third shall vest on the first anniversary of the effective date of employment, and the final one third shall vest on the second anniversary
of the effective date of employment. The options shall have a ten (10) year term and unexercised but vested options shall not terminate because of your termination of employment, unless such termination by the Company is for good cause such as
malfeasance, documented poor job performance (with prior notice and an opportunity to cure), or the like. After the termination of employment for reasons other than “for cause,” you may exercise your vested options (unless previously
terminated or exercised) for a period until the earlier of: (1) November 30, 2021 or (2) twelve (12) months from the last business day of the calendar month in which the Company determines (and so informs you of such
determination in writing) that you no longer possess material non-public information about the Company. Notwithstanding the foregoing, in the event of termination due to death or disability, vested options (unless previously terminated or exercised)
may be exercised within the one (1) year period following your death or disability, but in no event later than November 30, 2021. In the event of any change of control event (to be defined in a manner consistent with the definition(s)
applicable to other stock options granted by the Company), all unexercised options shall be immediately vested in full. Unexercised options shall not entitle you to any dividend participation with respect to the option shares that have not then been
acquired. 

 It is understood and agreed that such stock options are being issued as an inducement award
that is to be exempt from the NASDAQ stockholder approval requirements, and not as options authorized by the stockholders pursuant to the Company’s Stock Incentive Plan. Both parties recognize that shares acquired upon the exercise of such
options will be restricted securities under Rule 144 of the Securities and Exchange Commission (“SEC”) unless covered by an effective S-8 or other appropriate registration statement. The Company agrees to include the shares of common stock
covered by your options in any S-8 or other appropriate registration statement the Company files regarding any other shares if the shares underlying this grant of stock options are then considered or would be considered restricted securities under
the provisions of Rule 144 and your option shares may be included in such registration statement in accordance with SEC rules. 
  

	 	•	 	 You will participate in all Company benefit plans such as health, dental, and vision insurance, 401(k), sick or personal time, cash bonus, and long
terms incentive plan, and any other benefit plan of the Company in accordance with the terms and conditions of each such plan and at a level consistent with other executive officers of the Company. 

 

	 	•	 	 All salary adjustments and all other remuneration such as cash bonus and long term incentive plan participation shall be subject to your performance as
determined by the CEO and the Board of Directors and consistent with the terms and provisions of such plans and adjustments as such terms and provisions exist at the time of such salary adjustment or plan participation. 

 

	 	•	 	 The Company understands and agrees that at this time your position is believed to be a part-time position, averaging thirty (30) hours per week.
Both parties agree however that various projects may require a greater time commitment and that such shall not provide a basis for an out of cycle adjustment to the base salary proposed hereby unless the position clearly becomes a full time
position. In that event, the parties will endeavor to reach a mutually satisfactory solution to this change of status. 

  

	 	•	 	 Your vacation time will be as determined by the mutual agreement of you and the CEO with the understanding that you have informed the Company that your
prior commitments for 2012 will necessitate at least six weeks off. This time off notwithstanding, you agree to schedule and take such time in a manner so as to not disrupt the orderly conduct of the Company’s business.

  

	 	•	 	 The Company will pay dues and membership fees for you to maintain membership in appropriate professional organizations as reasonably agreed to by you
and the CEO. 

  

	 	•	 	 You understand and agree that your employment is “at will” in accordance with Colorado law. 

Provided these provisions accurately set forth the terms of your initial employment by the Company, please so indicate by signing below in the space
provided. 
 Very truly yours, 

Magellan Petroleum Corporation 

/s/ J. Thomas Wilson 
 J. Thomas Wilson 
 President and CEO 

Agreed to and accepted this 30th day of November, 2011. 
 /s/ Milam Randolph Pharo                            

 Milam Randolph PharoNonqualified Stock Option Award and Subscription Agreement

 Exhibit 10.6 
 THE OPTIONS GRANTED PURSUANT TO THIS AGREEMENT AND THE SHARES OF STOCK ISSUABLE UPON THE EXERCISE THEREOF HAVE NOT AS OF THE DATE HEREOF BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
UNDER THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, ASSIGNED, PLEDGED, OR OTHERWISE TRANSFERRED IN ABSENCE OF AN EFFECTIVE REGISTRATION UNDER SUCH LAWS COVERING SUCH TRANSFER OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT
REGISTRATION UNDER SUCH LAWS IS NOT REQUIRED. 
 MAGELLAN PETROLEUM CORPORATION 

NONQUALIFIED STOCK OPTION AWARD 
 AND SUBSCRIPTION AGREEMENT 
 THIS
AGREEMENT is made as of the grant date indicated in Section 3 below (the “Grant Date”) between Magellan Petroleum Corporation, a Delaware corporation (the “Company”), and the undersigned
individual (the “Optionee”). 
 WHEREAS, effective the date hereof the Optionee
has been appointed as the Vice President—General Counsel and Secretary of the Company; and 

WHEREAS, the Company, acting through the Compensation, Nominating and Governance (“CNG”)
Committee and the full Board of Directors (“Board”) has approved the award of Nonqualified Stock Options (the “Options”) to the Optionee (the “Award”) as an inducement for the Optionee to accept employment with the
Company. 
 NOW, THEREFORE, in consideration of the terms and conditions of
this Agreement, the parties agree as follows: 
  

	1.	Grant of Options. The Company hereby grants to the Optionee the right and option to purchase from the Company, at the exercise price set forth in
Section 3 below, all or any part of the aggregate number of shares of common stock, par value $0.01 per share, of the Company, as such common shares are presently constituted (the “Stock”), set forth in said Section 3.

  

	2.	Terms and Conditions. It is understood and agreed that the Options evidenced hereby shall at all times be subject to the following terms and conditions:

  

	 	(a)	Expiration Date. The Options evidenced hereby shall expire on the date specified in Section 3 below; provided, however, that:

 (i) Terminations of Employment for Cause. In the event of the termination of employment
of the Optionee that is for cause, the Options, to the extent vested, but not theretofore exercised, shall terminate immediately. For purposes of this Agreement, the term “cause” means (A) the willful refusal by the 

 Optionee to perform proper responsibilities of the Optionee’s position with the
Company, (B) a violation of law by the Optionee which adversely affects the assets, financial position or reputation of the Company or one of its subsidiaries or affiliates, or (C) a material violation by the Optionee of any code of
ethics, code of conduct or similar policy maintained by the Company, or one of its subsidiaries or affiliates, from time to time. 
 (ii) Other Terminations of Employment. In the event of termination of employment of the Optionee for any reason, other than terminations described in Section 2(a)(i) above or in
Section 2(a)(iii) below, the Optionee may exercise the Options (unless previously terminated or exercised) at any time until the earlier of: (1) November 30, 2021; or (2) twelve (12) months from the last business day of the
calendar month in which the Company determines (and so informs Optionee of such determination in writing) that Optionee no longer possess material non-public information about the Company. 

(iii) Termination of Employment by Death or Disability. In the event of the death or Disability of the Optionee,
the Options (unless previously terminated or exercised) may be exercised (but only to the extent exercisable by the Optionee as of the date of his death or Disability) within the one (1) year period following the Optionee’s death or
Disability, but in no event later than ten (10) years from the Grant Date, by the person or persons designated in the Optionee’s will for that purpose or in the absence of any such designation, by the legal representative of the
Optionee’s estate, or by the Optionee or the Optionee’s legal representative, as the case may be. For purposes of this Agreement, the term “Disability” shall mean disability as defined in Section 22(e)(3) of the Internal
Revenue Code of 1986, as amended (the “Code”). 
  

	 	(b)	Exercise of Option. The Options evidenced hereby shall be exercisable from time to time by (i) providing written notice of exercise ten
(10) days prior to the date of exercise specifying the number of shares for which the Options are being exercised, addressed to the Company at its principal place of business, and (ii) either: 

 

	 	(A)	Cash Only Exercise – submitting the full cash purchase price of the exercised Stock; or 

 

	 	(B)	 Cashless Exercise – subject to the provisions of Rule 144 promulgated under the Securities Act of 1933, as amended (“Securities
Act”), submitting appropriate authorization for the sale of Stock in an amount sufficient to provide the full purchase price, including, if applicable, the delivery of stock certificate or certificates for the shares of Stock for which the
Options are exercised to a licensed broker acceptable to the Company as the agent for the individual exercising the Options and, at the time such Stock certificate or certificates are delivered, the broker tenders to the Company an amount in cash
(or cash equivalents 

  
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acceptable to the Company) equal to the exercise price for the shares of Stock purchased pursuant to the exercise of the Options; or 

 

	 	(C)	Combination – tendering a combination of (A) and (B) above. 

 

	 	(c)	Tax Matters. Without regard to the method of exercise and payment, the Optionee shall pay to the Company, upon notice of the amount due, any withholding
taxes payable with respect to such exercise, which payment, subject to the provisions of Rule 144 promulgated under the Securities Act, may be made with shares of Stock which would otherwise be issued pursuant to the Options. The Optionee shall be
solely responsible for the payment or satisfaction of all taxes and penalties that may arise in connection with the Options (including any taxes arising under Section 409A of the Code), and the Company shall have no obligation to indemnify or
otherwise hold the Optionee harmless from any or all of such taxes and penalties. The CNG Committee shall have the discretion to take any actions to unilaterally modify the grant of the Options or to modify any exercise election by the Optionee in
order to comply with Section 409A of the Code. 

  

	 	(d)	Vesting. The shares of Stock covered by the Options shall vest as follows: 

 

	 	(i)	One Hundred Sixty-six Thousand Six Hundred Sixty-six (166,666) Option shares shall vest in full on the date hereof; 

 

	 	(ii)	One Hundred Sixty-six Thousand Six Hundred Sixty-seven (166,667) Option shares shall vest in full on November 30, 2012; and 

 

	 	(iii)	One Hundred Sixty-six Thousand Six Hundred Sixty-seven (166,667) Option shares shall vest in full on November 30, 2013. 

 

	 	(e)	Adjustments Upon Change of Control. If a “Change of Control” (as defined below) occurs with respect to the Company, then the vesting periods of
the Options shall immediately be accelerated in full and the Optionee shall have the immediate, fully vested right to purchase, receive and/or own without risk of forfeiture any and all Stock that is the subject of the Options on the terms and
conditions set forth in this Agreement. 

 The term “Change of Control” shall mean the occurrence of any
of the following events: 
 (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (“Exchange Act”) (other than the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any company owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their ownership of the Stock of the Company), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),

  
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directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such person any securities acquired directly from the Company or its affiliates)
representing more than 15% of the combined voting power of the Company’s then outstanding voting securities; provided, however, a Change of Control shall not be deemed to occur solely because such person acquired beneficial
ownership of more than 15% of the combined voting power of the Company’s then outstanding voting securities as a result of the acquisition of voting securities by the Company, which by reducing the number of voting securities outstanding,
increases the proportional number of shares beneficially owned by such person, provided that if a Change of Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, and after
such share acquisition by the Company, such person becomes the beneficial owner of any additional voting securities which increases the percentage of the then outstanding voting securities beneficially owned by such person, then a Change of Control
shall occur; 
 (ii) During any period of twenty-four (24) consecutive months (not including any period
prior to the Grant Date), individuals who at the beginning of such period constitute the Board and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in
subsection (i), (iii) or (iv) of this Section 2(e) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in
office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority of the Board; 

(iii) Upon consummation of a merger, consolidation or reorganization of the Company with any other corporation, other than
a merger, consolidation or reorganization which would result in the stockholders of the Company immediately before such merger, consolidation or reorganization, owning, directly or indirectly immediately following such merger, consolidation or
reorganization, at least 60% of the combined voting power of the voting securities of the Company or such surviving entity outstanding in immediately after such merger, consolidation or reorganization in substantially the same proportion as their
ownership of the voting securities immediately before such merger, consolidation, or reorganization; or 
 (iv)
The stockholders of the Company approve a plan of complete liquidation of the Company or upon consummation of a sale or disposition by the Company of all or substantially all of the Company’s assets. 

 

	 	(f)	 Adjustments Upon Change in Capitalization. Any adjustment to the number and class of shares of Stock subject to the Options and to the
exercise price of the Options in the event of changes in the outstanding Stock by 

  
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reasons of any stock dividend, split-up, recapitalization, rights offering, combination or exchange of shares, merger, consolidation, acquisition of property or stock, separation, reorganization,
divisive reorganization or liquidation and the like, shall be appropriately made by the CNG Committee, whose determination of such adjustment shall be conclusive. 

 

	 	(g)	Transfer of Options. Subject to Section 2(a)(iii), the Options shall be transferable only to members of the Optionee’s immediate family. For
purposes of this Section 2(g), the Optionee’s immediate family includes, and only includes, the parents, spouse and children of the Optionee. 

  

	 	(h)	Compliance with Laws and Regulations. The Options evidenced hereby are subject to restrictions imposed at any time on the exercise or delivery of shares
in violation of the By-Laws of the Company or of any law or governmental regulation that the Company may find to be valid and applicable. 

  

	3.	Option Data. 

  

			
	Optionee’s Name:	 	Milam Randolph Pharo
		
	Optionee’s Address:	 	 401 Aspen Place
 Golden,
Colorado 80403

		
	Number of shares of Stock Subject to this Option:	 	500,000 shares
		
	Grant Date:	 	November 30, 2011
		
	Exercise Price Per Share:	 	$1.13 per share
		
	Expiration Date:	 	November 30, 2021

  

	4.	Securities Law Matters. 

  

	 	(a)	 Restricted Securities. The Optionee acknowledges and understands that, unless the issuance of Stock that may be acquired upon exercise of
the Options is registered on Form S-8 before any exercise of the Options, the Stock acquired upon exercise of the Options will be characterized as “restricted securities” under the federal securities laws, as the shares will be acquired
from the Company in a transaction not involving a public offering, and that under such laws and applicable regulations the Stock may not be resold without registration under the Securities Act, except in certain limited circumstances. The Optionee
represents to the Company that he is either familiar with Rule 144 promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act, or has sought counsel from someone
with such knowledge. 

  
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The Optionee acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements, including, but not limited to, the time and manner
of sale, the holding period for the Stock, and on requirements relating to the Company that are outside the Optionee’s control, and which the Company is under no obligation to satisfy and may not be able to satisfy. Prior to any transfer of the
Stock by the Optionee, the Company retains the right to request and receive from the Optionee an opinion of counsel that the proposed transfer may be completed in compliance with all applicable federal and state securities laws.

  

	 	(b)	Registration Rights. The Company agrees that it will make commercially reasonable, good faith efforts to include the Optionee and any shares of Stock that
may be acquired by the Optionee under this Agreement as a selling stockholder in any appropriate registration statements (e.g., Form S-8 or Form S-3) filed by the Company from time to time. Notwithstanding the foregoing, the Optionee
acknowledges that nothing in this Agreement will be construed as granting a demand registration right to the Optionee. 

  

	 	(c)	Investment Intent at Grant. The Optionee represents and agrees that the Stock to be acquired upon exercising the Options will be acquired for investment
purposes only, and not with a view to the sale or distribution thereof. 

  

	 	(d)	Investment Intent at Exercise. In the event that the sale of the Stock issued upon exercise of the Options is not registered under the Securities Act but
an exemption is available which requires an investment representation or other representation, the Optionee shall represent and agree at the time of exercise that the Stock being acquired upon exercising the Options is being acquired for investment,
and not with a view to the sale or distribution thereof, and shall make such other representations as are deemed necessary or appropriate by the Company and its counsel. 

 

	 	(e)	Legends. All certificates evidencing the shares of Stock purchased under this Agreement in an unregistered transaction shall bear the following legend
(and such other restrictive legends as are required or deemed advisable under the provisions of any applicable law): 

 “THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, ASSIGNED,
PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH LAWS COVERING SUCH TRANSFER OR AN OPINION OF COUNSEL SATISFACTORY 

  
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TO THE ISSUER THAT REGISTRATION UNDER SUCH LAWS IS NOT REQUIRED.” 
  

	 	(f)	Removal of Legends. If, in the opinion of the Company and its counsel, any legend placed on a stock certificate representing shares of Stock sold under
this Agreement is no longer required, the holder of such certificate shall be entitled to exchange such certificate for a certificate representing the same number of shares but without such legend. 

 

	 	(g)	Accredited Investor. By checking the appropriate category(ies) below, the Optionee hereby represents to the Company that he is an “accredited
investor” as that term is defined in Rule 501(a) of Regulation D, promulgated under the Securities Act. 

  

	 	x	The Optionee is a natural person whose individual net worth, or joint net worth with the Optionee’s spouse, exclusive of the Optionee’s personal
residence, at the time of purchase, exceeds One Million Dollars ($1,000,000). 

  

	 	x	The Optionee is a natural person who had an individual income in excess of Two Hundred Thousand Dollars ($200,000) in each of the two (2) most recent years or
joint income with the Optionee’s spouse in excess of Three Hundred Thousand Dollars ($300,000) in each of those years and has a reasonable expectation of reaching the same income level in the current year. 

 

	 	x	Any direct or executive officer of the Company. 

  

	 	 ̈	The Optionee is not an accredited investor. 

  

	 	(h)	Disclosure. The Optionee hereby represents to the Company that, at a reasonable time prior to acquisition of the Options, (i) the Company has
provided the Optionee with an opportunity to ask questions and receive answers regarding the terms and conditions of this Agreement and to obtain any additional information that is necessary to verify the accuracy of any information provided by the
Company, and (ii) the Company has provided to the Optionee the following: 

  

	 	(A)	The Company’s most recent Proxy Statement in connection with the 2011 Annual Shareholders’ Meeting; 

 

	 	(B)	The Company’s most recent Form 10-K for the fiscal year ended June 30, 2011; 

  
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	 	(C)	The Company’s Form 10-Q for the quarter ended September 30, 2011; 

 

	 	(D)	The Company’s current reports on Form 8-K filed on or after September 20, 2011 (i.e., the date of filing of the Form 10-K); and

  

	 	(E)	A copy of the Company’s prospectus dated November 17, 2011. 

  

	 	(i)	Administration. Any determination by the Company and its counsel in connection with any of the matters set forth in this Section 4 shall be
conclusive and binding on the Optionee and all other persons. 

  

	5.	No Employment or Service Rights. Nothing in this Agreement shall confer on the Optionee any right to continue in any capacity his relationship with the
Company or interfere in any way with the right of the Company to terminate such relationship at any time, with or without cause. 

  

	6.	Notice. Any notice required by the terms of this Agreement shall be given in writing. It shall be deemed effective upon (i) personal delivery,
(ii) deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid or (iii) deposit with Federal Express Corporation, with shipping charges prepaid. Notice shall be addressed to the Company
at its principal executive office and to the Optionee at the address that he provided to the Company in Section 3 or any subsequent change of address provided to the Company accordance with this Section 6. 

 

	7.	Miscellaneous. This Agreement (a) contains the entire agreement and understanding of the parties relating to the subject matter hereof and supersedes
any prior agreements or understandings with respect thereto; and (b) shall be binding upon and inure to the benefit of the Company, its successors and assigns and the Optionee, his heirs, devisees and legal representatives. In the event of the
Optionee’s death or a judicial determination of his incompetence, reference in this Agreement to the Optionee shall be deemed to refer to his legal representative, heirs or devisees, as the case may be. This Agreement shall be governed by the
laws of the State of Delaware. 

 * * * * * * 

  
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 IN WITNESS WHEREOF, the
Company has caused this instrument to be executed by its authorized officer, as of the date identified below. 
  

									
	Agreed to:	 		 	 MAGELLAN PETROLEUM

CORPORATION

				
	 /s/ Milam Randolph Pharo
	 		 	By:	 	J. Thomas Wilson
	Optionee: Milam Randolph Pharo	 		 		 	 Name: J. Thomas Wilson

Title: President and CEO

 Date: November 30, 2011 

  
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