Document:

exv10w6

Exhibit 10.6

RETIREMENT AND TRANSITION AGREEMENT

     This RETIREMENT AND TRANSITION AGREEMENT (“this Agreement”) is made and entered into by and
between William A. Long, Sr. (“Long”) of Statesville, North Carolina, on the one hand, and Yadkin
Valley Financial Corporation, a North Carolina corporation (the “Company”) and Yadkin Valley Bank
and Trust (the “Bank”), a North Carolina state bank and wholly owned subsidiary of the Company (the
Company and the Bank collectively referred to herein as the “Employer”), on the other hand.

     WHEREAS, Long is employed by Employer under the terms of an Amended and Restated Employment
Agreement dated December 31, 2008 (the “Employment Agreement”).

     WHEREAS the Employment Agreement was amended by letter agreements dated January 16, 2009 and
July 24, 2009, which were executed by Long and the Company in connection with the Company’s
participation in the United States Department of Treasury’s Capital Purchase Program (“CPP”) as
part of the federal Troubled Asset Relief Program (“TARP”) established pursuant to the Emergency
Economic Stabilization Act of 2008, as amended (the “TARP Waiver Agreements”).

     WHEREAS, Long desires to retire from his employment with Employer on July 31, 2011 (the
“Retirement Date”).

     WHEREAS, Employer desires that Long remain engaged to assist with the transition of his duties
to his successor.

     WHEREAS, Employer and Long have agreed to certain changes in his position and duties to be
effective from the date of this Agreement until the Retirement Date.

     WHEREAS, Long and Employer wish to memorialize their agreement and to resolve any and all
claims, disputes and other matters that may exist between them, if any, whether they have been
raised or not.

     NOW, THEREFORE, the parties, intending to be legally bound and for and in consideration of the
promises and agreements contained herein, hereby stipulate and agree as follows:

1. Retirement and Transition. In connection with Long’s retirement and the transition of
his duties to his successor, the parties agree that:

(a) Long shall retire from his employment with Employer on the Retirement Date.

(b) Long hereby resigns as Chief Executive Officer of the Company, as a director of the
Bank, as a director of the Company and as an officer or director of any other subsidiary or
affiliate of the Company, all of which resignations are effective immediately.

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(c) Long shall continue to serve as Chief Executive Officer of the Bank until the
Retirement Date. From the date of this Agreement until the Retirement Date (the “Transition
Period”), Long shall serve as senior advisor to Joseph H. Towell, successor Chief Executive
Officer of the Bank and of the Company, and shall work to transition his knowledge, duties
and responsibility to Mr. Towell. Additionally, Long shall have such appropriate
transition, customer relations, investor relations and capital development duties as may be
assigned by the Board of Directors from time to time.

(d) During the Transition Period, Long shall continue to receive base salary at his current
rate and shall continue to receive his current benefits (subject to any generally applicable
changes the Company may make during the Transition Period); provided, however, (i) with
respect to Long’s membership expenses associated with Statesville Country Club, The Point
Country Club, one civic club, and family membership in a health facility, Employer will
continue to pay for membership and dues only, but will not pay for associated
personal charges and expenses; and (ii) Long will have continued use of the current
automobile provided by Employer, the 2008 Lexus. During the Transition Period, Long will
not be eligible to receive any bonuses. Long will not be entitled to any severance or any
special separation pay upon or following his retirement. The Bank will continue to cover
Long under its directors and officers liability insurance policy during the Transition
Period. After Long’s retirement, Long will have the same coverage under this policy (or
successor policies) and the same entitlement to corporate indemnification as other retired
officers and directors. The benefits and payments Long receives under this Agreement are
conditioned upon (A) his employment through the Retirement Date not being terminated by Long
for any reason or by the Bank for Cause (as such term is defined by the Employment
Agreement) and (B) Long’s performance of and compliance with the terms of this Agreement and
any continued post-employment obligations under the Employment Agreement as provided in
Section 4 of this Agreement.

2. Release. In exchange for the Company’s release of Long from his post-employment
noncompetition obligations as set forth in Section 4 below and the promises of continued
compensation and benefits by Employer set forth in Section 1 above, which release, promises,
compensation and benefits are beyond any to which Long is presently entitled, Long agrees to
release and forever discharge Employer, its shareholders, successors, predecessors, parents,
subsidiaries, affiliates, assigns, directors, officers, agents, attorneys, employees and former
employees, insurers, and all persons, corporations or other entities who might be claimed to be
jointly and severally liable with them (collectively, “the Released Parties”), from any and all
claims at law or in equity based upon, arising from, or relating to Long’s employment relationship
with Employer or the conclusion of that relationship, whether or not Long knows of the potential
existence of the claim, from the beginning of time to the date of execution of this Agreement.
This release shall include, but is not limited to, claims under the Age Discrimination in
Employment Act, Title VII of the Civil Rights Act of 1964, the Employee Retirement Income Security
Act of 1974, the Americans With Disabilities Act, the Family and Medical Leave Act, claims of
wrongful discharge, constructive discharge, breach of contract, tortious interference with
contract, negligent misrepresentation, negligent or intentional infliction of emotional distress,
retaliatory discharge, and any other state or federal statutory or common law theories, including
any claim for attorneys’ fees and costs, which Long or anyone claiming by, through or under him in
any way might have or could claim against the Released Parties. This release by Long is
specifically intended to release Employer from any and all obligations under the

138

 

Employment Agreement. In addition, Long knowingly and intentionally waives any rights to any
additional recovery that might be sought on his behalf against any one or more of the Released
Parties by any other person, entity, local, state or federal government or agency thereof. This
release is not intended to and shall not be construed to release any vested retirement/401(k)
benefits or rights to continuation of health coverage under COBRA.

3. Additional Representations. Long represents and warrants that as of the date of this
Agreement, he has been permitted by Employer to take all leave to which he has been entitled, that
he has been reimbursed for all allowances and expenses properly incurred on behalf of Employer,
that he has been properly paid for all time worked to date during his employment by Employer and
that he has received all benefits to which he was or is entitled. Long acknowledges, agrees and
hereby reaffirms that he is subject to the valid and enforceable noncompetition and confidentiality
obligations contained in the Employment Agreement that placed certain reasonable and necessary
restrictions on his actions following his employment with Employer and that, except as otherwise
provided in Section 4 below, such restrictions are currently and at all times have been fully
enforceable.

4. Release of Certain Post-Employment Obligations. Effective July 31, 2011, the Company
agrees that Long is released from his existing post-employment noncompetition obligation contained
in Section 6(b) of the Employment Agreement which restricts Long from certain competitive
activities for one year after termination of employment; provided, however, nothing contained in
this Section 4 will affect Long’s noncompetition obligations during his continued employment with
the Bank, or the obligations or remedies contained in Section 6(a), (c) or (d) of the Employment
Agreement and such obligations and remedies shall be deemed continuing beyond the Retirement Date.

5. No Admission of Liability. Nothing contained in this Agreement shall be construed as an
admission of any liability or violation of any federal, state or local statute, regulation, common
law, or of any duty owed by Long, Employer or any of the Released Parties. As stated above, the
forbearance, promises and compensation provided in consideration of the above release and the
obligations contained herein are intended to resolve any and all claims, disputes and other matters
that may exist between the parties, whether they are known or unknown and whether they have been
raised or not.

6. Non-disparagement; No Encouragement of Claims. Long agrees to refrain from any
disparagement, criticism, defamation, slander or libel of Employer, any of the Released Parties or
products, services or businesses. In addition, Long agrees that he shall not initiate or
participate in any contact or communications with any person or entity, including but not limited
to current or former employees, vendors, investors and customers of Employer or any of the Released
Parties, which has the effect of disrupting the orderly operations of or damaging the reputation of
Employer or any of the Released Parties, employees, products, services or their businesses, unless
required by law. Similarly, Long shall not, directly or indirectly, encourage or assist any person
or entity who may file or who has filed a lawsuit, charge, claim or complaint against any Released
Party; provided, however, nothing herein shall prevent Long from responding to a lawful subpoena,
reporting to a government agency or complying with any other legal obligation. If Long receives
any subpoena or becomes subject to any legal obligation that implicates this Section 6, Long will
provide prompt written notice of that fact to the Employer

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(consistent with the notice provisions of this Agreement), and enclose a copy of the subpoena and
any other documents describing the legal obligation. Employer agrees to instruct the following
individuals, Jan H. Hollar, Joseph H. Towell, F. Spencer Cosby, Patricia H. Wooten, T. Michele
Russell, William Mark DeMarcus, Edwin H. Shuford, Kristi A. Eller, Laura Blalock, Rick Patterson,
Joe K. Johnson, Edward L. Marxen, Dan W. Hill III, J.T. Alexander, Jr., James L. Poindexter, Larry
S. Helms, James A. Harrell, Jr., Thomas J. Hall, James N. Smoak, Dr. Ralph L. Bentley, Harry C.
Spell, Nolan G. Brown, Alison J. Smith, Morris L. Shambley, Harry M. Davis, and C. Kenneth Wilcox,
that that they shall refrain from any disparagement, criticism, defamation, slander or libel of
Long; provided, however, nothing herein shall prevent such individuals from responding to a lawful
subpoena, reporting to a government agency or complying with any other legal obligation.

7. Remedies. It is stipulated that a breach by Long of the provisions of this Agreement or
Long’s continuing obligations under the Employment Agreement, as described in Section 4 above,
would cause irreparable damage to Employer and/or the Released Parties. In the event Long breaches
any of the obligations, representations or warranties contained in this Agreement or in the
Employment Agreement, the Company, the Bank or any of the Released Parties, as applicable, shall be
entitled to all remedies at law or in equity. If the Company, the Bank or any of the Released
Parties are required to employ attorneys and/or pursue litigation against Long for the breach or
enforcement of this Agreement or Long’s continuing obligations under the Employment Agreement, they
shall be entitled to recover from Long any attorneys’ fees and litigation expenses incurred in
connection with such efforts. In addition, Employer expressly reserves the right to seek
injunctive relief in the event of a breach or threatened breach of the obligations contained in
this Agreement or the Employment Agreement.

8. ADEA Waiver Acknowledgment. Long acknowledges that: (a) he has at least twenty-one (21)
days to consider this Agreement; (b) he has read and understands the terms of this Agreement and
its effect; (c) he has been advised to consult and has had the opportunity to consult with an
attorney prior to executing this Agreement; (d) he has signed this Agreement voluntarily and
knowingly in exchange for the consideration described herein, which he acknowledges as adequate and
more than he is otherwise entitled to receive; (e) this Agreement will become effective seven (7)
days after its signature by Long and will not be enforceable or effective until after that seven
(7) day period has expired (the “Effective Date”); (f) within seven (7) days of signature, Long may
revoke this Agreement by providing written notice of revocation to Laura Blalock at 204 S. Elm
Street, Statesville, NC 28687, before 12:01 a.m. Eastern Time of the Effective Date; and (g) no
attempted revocation after the expiration of the seven (7) day period shall have any effect on the
terms of this Agreement.

9. Cooperation. Long agrees that, on appropriate advance notice, he will, if so requested
by either Employer or any of the Released Parties, provide assistance or information related to any
claim, investigation, proceeding or litigation (threatened or pending) involving Employer or any of
the Released Parties and will freely cooperate and assist Employer or any of the Released Parties
in good faith and to the best of his ability. Further, Long agrees that, on appropriate advance
notice, he will, if so requested by either Employer or one of the Released Parties, provide
information and assistance as to any matter related to Long’s duties and responsibilities under the
Employment Agreement. The Employer agrees to reimburse Long for all of his reasonable expenses
associated with such cooperation, including travel expenses.

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10. Return of Company Property. Long agrees to return to Employer, within five (5) days of
the Retirement Date, any and all documents, materials and information (whether in hard copy, on
electronic media or otherwise) and all keys, access cards, credit cards, computer hardware and
software, telephones and telephone-related equipment and all other property of Employer or the
Released Parties in his possession or control. Further, Long shall not retain any copy of
documents, materials or information (whether in hard copy, on electronic media or otherwise)
belonging to Employer or any of the Released Parties.

11. Acknowledgment of Reasonableness. Long has carefully read and considered the
provisions of this Agreement, has had the opportunity to consult with an attorney of Long’s choice
and agrees that the restrictions set forth in this Agreement and in the Employment Agreement are
reasonably required for the protection of Employer and the Released Parties. In the event that any
provision relating to the scope of the restrictions contained in this Agreement or the Employment
Agreement shall be declared by a court of competent jurisdiction to exceed the maximum scope that
such court deems reasonable and enforceable under applicable law, such scope of restriction held
reasonable and enforceable by the court shall thereafter be the scope of the Employment Agreement
and/or this Agreement as may be applicable.

12. Tax Liability. Long understands and agrees that to the extent any tax liability may
now or hereafter become due because of this Agreement, such liability shall be his sole
responsibility. On behalf of himself, his heirs, executors, administrators, successors and
assigns, he agrees to pay any taxes, penalties or interest that may be determined to be due and
payable, other than such taxes as may be withheld from Long’s compensation during the Transition
Period. In addition, on behalf of himself, his heirs, executors, administrators, successors and
assigns, Long agrees to indemnify and hold Employer harmless for any and all taxes, penalties,
interest or other costs and expenses that may be or become due as a result of this Agreement, other
than such taxes as may be withheld from Long’s compensation during the Transition Period.

13. Notices. Any notice contemplated, required, or permitted under this Agreement shall be
sufficient if in writing and shall be deemed given when delivered personally or mailed by
registered or certified mail, return receipt requested, to the addresses listed below:

	 	 	 	 	 
	 

	 	(a) To Long:
	 	William A. Long, Sr.

125 Wickersham Dr.

Statesville, NC 28265

	 
	 	 	 	 
	 

	 	(b) To the Company:
	 	Yadkin Valley Financial Corporation

204 South Elm Street

Statesville, NC 28687

Attn: Laura Nelson Blalock
	 
	 	 	 	 
	 

	 	(c) To the Bank:
	 	Yadkin Valley Bank and Trust

204 South Elm Street

Statesville, NC 28687

Attn: Laura Nelson Blalock

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14. Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of North Carolina, without regard to its conflicts of laws provisions.

15. Severability. Each provision of this Agreement is intended to be severable. If any
term or provision other than Section 2 of this Agreement is held to be invalid, void or
unenforceable by a court of competent jurisdiction for any reason whatsoever, such ruling shall not
affect the remainder of this Agreement.

16. Voluntary Execution. The parties, intending to be legally bound, apply their
signatures voluntarily and with full understanding of the contents of this Agreement and after
having had ample time to review and study this Agreement.

17. Affirmation of TARP Waiver Agreements. For purposes of clarity, nothing in this
Agreement or in any other agreement, plan, program or arrangement will entitle Long to any
payments, rights or benefits to the extent they are prohibited as a result of the Company’s
participation in the CPP under TARP. To that end, Long expressly reaffirms the TARP Waiver
Agreements executed by him on January 16, 2009 and July 24, 2009 as a condition of the Company’s
participation in the CPP.

18. Entire Agreement. This Agreement constitutes the entire agreement between Long and
Employer as of the date hereof with respect to the subject matter hereof and supersedes any
previous understandings, representations, statements and agreements, whether oral or written,
between or among the parties with respect to the subject matter hereof; provided, however, the
provisions contained in this Agreement shall be in addition to and not in lieu of any obligations
of confidentiality or noncompetition contained in the Employment Agreement. This Agreement shall
not be modified or changed in any way except by a writing executed by both parties hereto or as
otherwise set forth herein this Agreement.

	 	 	 	 	 
	 	 	 
	 	     /s/ William A. Long, Sr.
 	(Seal)
	 	William A. Long, Sr. 	 
	 	 	 
	 	Date: 2/14/2011

 	 

	 	 	 	 	 	 	 

	ATTEST:	 	YADKIN VALLEY FINANCIAL CORPORATION
	 
	By: 	 /s/ Patricia H. Wooten	 	By: 	 /s/ Ralph L. Bentley
	 
	 	 	 
	 	Name: 	 Patricia H. Wooten	 	 	Ralph L. Bentley, Chairman of the Board
	 
	 	 	 	 	Date:   2/14/2011
	 	 	 	 	 	 	 
	ATTEST:	 	YADKIN VALLEY BANK AND TRUST
	 
	By: 	 /s/ Patricia H. Wooten	 	By: 	 /s/ Ralph L. Bentley
	 
	 	 	 
	 	Name: 	 Patricia H. Wooten	 	 	Ralph L. Bentley, Chairman of the Board
	 
	 	 	 	 	Date:   2/14/2011

142exv10w22

Exhibit 10.22

ENDEAVOUR INTERNATIONAL CORPORATION

RESTRICTED STOCK AWARD AGREEMENT

     THIS RESTRICTED STOCK AGREEMENT (this “Agreement”) is made and entered into by and between
Endeavour International Corporation (the “Company”) and James Emme, an employee of the Company
(“Grantee”), dated as of January 20, 2010 and effective as of the grant date(s) shown in Appendix A
attached hereto.

     WHEREAS, effective James Emme, Grantee shall be an employee of the Company and as an
inducement for such employment and in connection with Grantee providing services to the Company as
an employee, the Compensation Committee of the Board of Directors of the Company, on behalf of the
Company, desires to grant to Grantee a number of restricted shares of the Company’s common stock,
par value $.001 per share (the “Common Stock”), subject to the terms and conditions of this
Agreement, with a view to increasing Grantee’s interest in the Company’s welfare and growth.

     NOW, THEREFORE, in consideration of the premises, mutual covenants and agreements contained
herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

     1. Grant of Common Stock. Subject to the restrictions, forfeiture provisions and
other terms and conditions set forth herein (a) the Company hereby grants to Grantee the number of
shares of Common Stock (“Restricted Shares”) as set out in Appendix A hereto, and (b) subject to
the terms hereof, Grantee shall have and may exercise rights and privileges of ownership of such
Restricted Shares, including, without limitation, the voting rights of such shares and the right to
receive dividends declared in respect thereof. This Agreement and the grant of Restricted Shares
are subject to administration by and the rules and procedures established by the Board of Directors
of the Company (the “Board”) or a committee appointed by the Board to administer this Agreement
(the “Committee”) and the Board or the Committee, if so appointed, shall have the authority to
construe and interpret the terms of this Agreement and to provide omitted terms to carry out this
Agreement. Except with respect to Section 3(v), any authority provided to the Company, the Board
or Committee herein shall also be provided to the Committee, if one is appointed by the Board. The
Committee shall have the authority to take all actions that it deems advisable for the
administration of this Agreement.

     2. Transfer Restrictions; Vesting.

     (a) Generally. Grantee shall not sell, assign, transfer, exchange, pledge, encumber, gift,
devise, hypothecate or otherwise dispose of (collectively, “Transfer”) any Restricted Shares prior
to their vesting in accordance with the Vesting Schedule set out in Appendix A. Further, even
after such Restricted Shares become vested, such vested Restricted Shares may not be sold or
otherwise disposed of in any manner which would constitute a violation of any applicable federal or
state securities or other applicable law or Company policies as determined

 

 

by Company on advice of counsel chosen by the Company in its sole discretion. Restricted
Shares shall vest as of each of the Vesting Dates set out in Appendix A provided that Grantee
remains an employee through the Vesting Date, except as may otherwise be provided herein.

     (b) Dividends, etc. If the Company (i) declares a dividend or makes a distribution on Common
Stock in shares of Common Stock or (ii) subdivides or reclassifies outstanding shares of Common
Stock into a greater number of shares of Common Stock or (iii) combines or reclassifies outstanding
shares of Common Stock into a smaller number of shares of Common Stock, then the number of shares
of Grantee’s Common Stock subject to the transfer restrictions in this Agreement shall be
proportionally increased or reduced as to prevent enlargement or dilution of Grantee’s rights and
duties hereunder. The determination of the Company’s Board of Directors regarding such adjustment
should be final and binding.

     3. Vesting on Change in Control. Notwithstanding the provisions in Section 2, on the
date immediately preceding the date of a Change in Control of the Company (as defined below), the
Restricted Shares shall be 100% vested. For purposes of this Agreement, a “Change in Control”
shall mean the occurrence of any of the following events:

          (i) the Company (A) shall not be the surviving entity in any merger, consolidation or other
reorganization (or survives only as a subsidiary of an entity other than a previously wholly-owned
subsidiary of the Company) or (B) is to be dissolved and liquidated, and as a result of or in
connection with such transaction, the persons who were directors of the Company before such
transaction shall cease to constitute a majority of the Board, or

          (ii) any person or entity, including a “group” as contemplated by Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended, acquires or gains ownership or control (including,
without limitation, power to vote) of 30% or more of the outstanding shares of the Company’s voting
stock (based upon voting power), and as a result of or in connection with such transaction, the
persons who were directors of the Company before such transaction shall cease to constitute a
majority of the Board, or

          (iii) the Company sells all or substantially all of the assets of the Company to any other
person or entity (other than a wholly-owned subsidiary of the Company) in a transaction that
requires shareholder approval pursuant to applicable corporate law; or

          (iv) During a period of two consecutive calendar years, individuals who at the beginning of
such period constitute the Board, and any new director(s) whose election by the Board or nomination
for election by the Company’s stockholders was approved by a vote of at least a majority of the
directors then still in office, who either were directors at the beginning of the two (2) year
period or whose election or nomination for election was previously so approved, cease for any
reason to constitute a majority of the Board; or

          (v) any other event that a majority of the Board, in its sole discretion, shall determine
constitutes a Change in Control hereunder.

2

 

     4. Forfeiture.

     (a) Termination of Employment. If Grantee’s employment with the Company is terminated by the
Company or Grantee for any reason, then Grantee shall immediately forfeit all Restricted Shares
which are unvested unless the Board of Directors, in its sole discretion, determines that any or
all of such unvested Restricted Shares shall not be so forfeited.

     (b) Forfeited Shares. Any Restricted Shares forfeited under this Section 4 shall
automatically revert to the Company and become canceled. Any certificate(s) representing
Restricted Shares which include forfeited shares shall only represent that number of Restricted
Shares which have not been forfeited hereunder. Upon the Company’s request, Grantee agrees for
himself and any other holder(s) to tender to the Company any certificate(s) representing Restricted
Shares which include forfeited shares for a new certificate representing the unforfeited number of
Restricted Shares.

     5. Issuance of Certificate.

     (a) The Company shall cause to be issued a stock certificate, registered in the name of the
Grantee, evidencing the Restricted Shares upon receipt of a stock power duly endorsed in blank with
respect to such shares. In addition to any other legends that may be required by applicable law or
otherwise, each such stock certificate shall bear the legends substantially as follows:

THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY
APPLICABLE STATE SECURITIES LAWS, AND THEY CANNOT BE OFFERED FOR
SALE, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE HYPOTHECATED EXCEPT IN
ACCORDANCE WITH THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH
STATE LAWS OR UPON DELIVERY TO THIS CORPORATION OF AN OPINION OF
LEGAL COUNSEL SATISFACTORY TO THE CORPORATION THAT AN EXEMPTION FROM
REGISTRATION IS AVAILABLE.

THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK
REPRESENTED HEREBY ARE SUBJECT TO THE RESTRICTIONS, TERMS AND
CONDITIONS (INCLUDING FORFEITURE AND RESTRICTIONS AGAINST TRANSFER)
CONTAINED IN THE RESTRICTED STOCK AGREEMENT ENTERED INTO BETWEEN THE
REGISTERED OWNER OF SUCH SHARES AND ENDEAVOUR INTERNATIONAL
CORPORATION. COPIES OF THE RESTRICTED STOCK AGREEMENT ARE ON FILE
IN THE OFFICE OF THE SECRETARY OF ENDEAVOUR INTERNATIONAL
CORPORATION,

3

 

LOCATED AT 1001 FANNIN STREET, SUITE 1600, HOUSTON, TEXAS 77002.

The latter legend shall not be removed from the certificate evidencing Restricted Shares until such
time as the restrictions thereon have lapsed.

     (b) The certificate issued pursuant to this Section 5, together with the stock powers relating
to the Restricted Shares evidenced by such certificate, shall be held by the Company. The Company
may issue to the Grantee a receipt evidencing the certificates held by it which are registered in
the name of the Grantee.

     6. Tax Requirements.

     (a) Tax Withholding. The Company shall have the power and the right to deduct or withhold, or
require the Participant to remit to the Company, an amount sufficient to satisfy federal, state,
and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to
any taxable event arising as a result of this grant.

     (b) Share Withholding. With respect to tax withholding required upon any taxable event
arising as a result of this grant, Participant may elect, subject to the approval of the Board or
Committee in its sole discretion, to satisfy the withholding requirement, in whole or in part, by
having the Company withhold shares of common stock having a fair market value on the date the tax
is to be determined equal to the statutory total tax which could be imposed on the transaction.
All such elections shall be made in writing, signed by the Participant, and shall be subject to any
restrictions or limitations that the Committee, in its discretion, deems appropriate. Any fraction
of a share of common stock required to satisfy such obligation shall be disregarded and the amount
due shall instead be paid in cash by the Participant.

     7. Miscellaneous.

     (a) Certain Transfers Void. Any purported transfer of Restricted Shares in breach of any
provision of this Agreement shall be void and ineffectual, and shall not operate to transfer any
interest or title in the purported transferee.

     (b) No Fractional Shares. All provisions of this Agreement concern whole shares of Common
Stock. If the application of any provision hereunder would yield a fractional share, the value of
such fractional share shall be paid to the Grantee in cash.

     (c) Not an Employment Agreement. This Agreement is not an employment agreement, and this
Agreement shall not be, and no provision of this Agreement shall be construed or interpreted to
create any employment relationship or right to continued employment with the Company, Company
affiliates, parent, subsidiary or their affiliates.

     (d) Investment Representation. Grantee represents and warrants to the Company as follows:

          (i) Grantee is acquiring the Restricted Shares granted pursuant to the terms hereof, for his
own account, for investment, and not with a view to (or for sale in connection

4

 

with) any distribution thereof, other than pursuant to any effective registration statement
filed under the Securities Act of 1933, as amended (the “Securities Act”), registering the of
resale of the Restricted Shares. Grantee has no present intention of selling, granting any
participation in or otherwise distributing the Restricted Shares. Grantee (a) has such knowledge
and experience in financial and business matters and with respect to investments in securities as
to be capable of evaluating the merits and risks of the investments contemplated by this Agreement,
(b) can bear the economic risk of the investments contemplated by this Agreement (including a
complete loss of its investment) for an indefinite period of time.

          (ii) Grantee is a bona fide resident of the State of Colorado and he has no present intention
of becoming a resident of any other state or jurisdiction.

          (iii) Grantee understands that the Registered Shares have not been registered under the
Securities Act, have not been registered under the securities laws of any state or jurisdiction and
may be required to be held indefinitely unless a subsequent disposition thereof is registered under
the Securities Act or applicable blue sky laws or unless an exemption from such registration is
available.

          (iv) Grantee believes it has received all the information it considers necessary or
appropriate for deciding whether to acquire the Restricted Shares. Grantee further represents that
it has had an opportunity to ask questions and receive answers from the Company regarding his
investment in the Company.

     (e) Dispute Resolution.

          (i) Arbitration. All disputes and controversies of every kind and nature between any parties
hereto arising out of or in connection with this Agreement or the transactions described herein as
to the construction, validity, interpretation or meaning, performance, non-performance,
enforcement, operation or breach, shall be submitted to arbitration pursuant to the following
procedures:

          (1) After a dispute or controversy arises, any party may, in a written notice delivered
to the other parties to the dispute, demand such arbitration. Such notice shall designate
the name of the arbitrator (who shall be an impartial person) appointed by such party
demanding arbitration, together with a statement of the matter in controversy.

          (2) Within 30 days after receipt of such demand, the other parties shall, in a written
notice delivered to the first party, name such parties’ arbitrator (who shall be an
impartial person). If such parties fail to name an arbitrator, then the second arbitrator
shall be named by the American Arbitration Association (the “AAA”). The two arbitrators so
selected shall name a third arbitrator (who shall be an impartial person) within 30 days, or
in lieu of such agreement on a third arbitrator by the two arbitrators so appointed, the
third arbitrator shall be appointed by the AAA. If any arbitrator appointed hereunder shall
die, resign, refuse or become unable to act before an arbitration decision is rendered, then
the vacancy shall be filled by the method set forth in this Section for the original
appointment of such arbitrator.

5

 

          (3) Each party shall bear its own arbitration costs and expenses. The arbitration
hearing shall be held in Houston, Texas at a location designated by a majority of the
arbitrators. The Commercial Arbitration Rules of the American Arbitration Association shall
be incorporated by reference at such hearing and the substantive laws of the State of Texas
(excluding conflict of laws provisions) shall apply.

          (4) The arbitration hearing shall be concluded within ten (10) days unless otherwise
ordered by the arbitrators and the written award thereon shall be made within fifteen (15)
days after the close of submission of evidence. An award rendered by a majority of the
arbitrators appointed pursuant to this Agreement shall be final and binding on all parties
to the proceeding, shall resolve the question of costs of the arbitrators and all related
matters, and judgment on such award may be entered and enforced by either party in any court
of competent jurisdiction.

          (5) Except as set forth in Section 7(e)(ii), the parties stipulate that the provisions
of this Section shall be a complete defense to any suit, action or proceeding instituted in
any federal, state or local court or before any administrative tribunal with respect to any
controversy or dispute arising out of this Agreement or the transactions described herein.
The arbitration provisions hereof shall, with respect to such controversy or dispute,
survive the termination or expiration of this Agreement.

No party to an arbitration may disclose the existence or results of any arbitration
hereunder without the prior written consent of the other parties; nor will any party to an
arbitration disclose to any third party any confidential information disclosed by any other
party to an arbitration in the course of an arbitration hereunder without the prior written
consent of such other party.

          (ii) Emergency Relief. Notwithstanding anything in this Section 7(e) to the contrary, any
party may seek from a court any provisional remedy that may be necessary to protect any rights or
property of such party pending the establishment of the arbitral tribunal or its determination of
the merits of the controversy or to enforce a party’s rights under Section 7(e).

     (f) Notices. Any notice, instruction, authorization, request or demand required hereunder
shall be in writing, and shall be delivered either by personal in-hand delivery, by telecopy or
similar facsimile means, by certified or registered mail, return receipt requested, or by courier
or delivery service, addressed to the Company at the address indicated beneath its signature on the
execution page of this Agreement, and to Grantee at his address indicated on the Company’s stock
records, or at such other address and number as a party shall have previously designated by written
notice given to the other party in the manner herein set forth. Notices shall be deemed given when
received, if sent by facsimile means (confirmation of such receipt by confirmed facsimile
transmission being deemed receipt of communications sent by facsimile means), and when delivered
and receipted for (or upon the date of attempted delivery where delivery is refused), if
hand-delivered, sent by express courier or delivery service, or sent by certified or registered
mail, return receipt requested.

6

 

     (g) Amendment and Waiver. This Agreement may be amended, modified or superseded only by
written instrument executed by the Company and Grantee. Any waiver of the terms or conditions
hereof shall be made only by a written instrument executed and delivered by the party waiving
compliance. Any amendment or waiver agreed to by the Company shall be effective only if executed
and delivered by a duly authorized executive officer of the Company other than Grantee. The
failure of any party at any time or times to require performance of any provisions hereof shall in
no manner effect the right to enforce the same. No waiver by any party of any term or condition in
this Agreement, or breach thereof, in one or more instances shall be deemed a continuing waiver of
any such condition or breach, a waiver of any other condition, or the breach of any other term or
condition.

     (h) Independent Legal and Tax Advice. The Grantee has been advised and Grantee hereby
acknowledges that he or she has been advised to obtain independent legal and tax advice regarding
this grant of Restricted Shares and the disposition of such shares, including, without limitation,
the election available under Section 83(b) of the Internal Revenue Code of 1986, as amended.

     (i) Governing Law and Severability. This Agreement shall be governed by the internal laws,
and not the laws of conflict, of the State of Texas. The invalidity of any provision of this
Agreement shall not affect any other provision of this Agreement which shall remain in full force
and effect.

     (j) Successors and Assigns. Subject to the limitations which this Agreement imposes upon
transferability of Restricted Shares, this Agreement shall bind, be enforceable by and inure to the
benefit of the Company and its successors and assigns, and Grantee, and, upon his death, on his
estate and beneficiaries thereof (whether by will or the laws of descent and distribution).

     (k) Community Property. Each spouse individually is bound by, and such spouse’s interest, if
any, in any shares is subject to, the terms of this Agreement. Nothing in this Agreement shall
create a community property interest where none otherwise exists.

     (l) Entire Agreement. This Agreement supersedes any and all other prior understandings and
agreements, either oral or in writing, between the parties with respect to the subject matter
hereof and constitute the sole and only agreements between the parties with respect to the said
subject matter. All prior negotiations and agreements between the parties with respect to the
subject matter hereof are merged into this Agreement. Each party to this Agreement acknowledges
that no representations, inducements, promises, or agreements, orally or otherwise, have been made
by any party or by anyone acting on behalf of any party, which are not embodied in this Agreement
and that any agreement, statement or promise that is not contained in this Agreement shall not be
valid or binding or of any force or effect.

[Signature page follows]

7

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first
above written.

	 	 	 	 	 	 	 

	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	ENDEAVOUR INTERNATIONAL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ William L. Transier	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	William L. Transier	 	 
	 

	 	Title:
	 	Chairman, CEO and President	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	1001 Fannin Street, Suite 1600	 	 
	 

	 	 	 	Houston, Texas 77002	 	 
	 

	 	Telecopy No.:
	 	(713) 307-8700	 	 
	 

	 	Attention:
	 	Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	GRANTEE:	 	 
	 
	 	 
 /s/ James Emme	 		 	 
	 	 	 	 	 
	 	 	      James Emme	 	 

8

 

APPENDIX A TO

RESTRICTED STOCK AGREEMENT

Grantee’s Name: James Emme

	 	 	 	 	 
	 	 	Number of
	Grant Date:	 	Restricted Shares Granted
	01/20/2010
	 	 	600,000	 

Vesting Schedule:

	 	 	 	 	 
	Date	 	Number of Shares Vested
	01/20/2010
	 	 	200,000	 
	 
	01/20/2011
	 	 	200,000	 
	 
	01/20/2012
	 	 	200,000	 

Note: All vesting is subject to the terms and conditions of the Agreement.

9

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