Document:

Unassociated Document

Exhibit 10.1

CHIEF FINANICIAL OFFICER

A Executive Officer of Hyperdynamics Corporation

EMPLOYMENT AGREEMENT

THIS AGREEMENT is made and entered into this 17th day of June, 2009, by and between HYPERDYNAMICS CORPORATION, a Delaware corporation (the "Company"), and Jason D. Davis ("Executive").

 

W I T N E S S E T H:

WHEREAS, Executive and the Company deem it to be in their respective best interests to enter into an agreement providing for the Company's employment of Executive pursuant to the terms herein stated;

 

NOW, THEREFORE, in consideration of the premises and the mutual promises and agreements contained herein, it is hereby agreed as follows:

1.          Effective Date. This Agreement shall be effective on the 1st day of July, 2009, which date shall be referred to herein as the "Effective Date".

2.          Position and Duties.

(a) Heretofore, Executive has served other companies in various financial and administrative roles and is currently winding up operations as Interim CFO for Particle Drilling Technologies, and has been instrumental to their financial SEC reporting and overall administration; and

Henceforth, the Company hereby employs Executive as its new Chief Financial Officer – VP of Accounting and Finance, and Corporate Secretary pursuant to the terms of this Agreement commencing as of the Effective Date for the "Term of Employment" (as herein defined below). In this capacity, the Executive shall devote his best efforts and
his full business time and attention to the performance of the services defined by the by-laws of the company, services customarily incident to such offices and position and to such other services of a senior executive nature as may be reasonably assigned by the Chief Executive Officer or requested by the Board of Directors (the "Board") of the Company which may include services for one or more subsidiaries or affiliates of the Company. Executive shall in his capacity as an employee and officer of the Company
be responsible to and obey the reasonable and lawful directives of the Chief Executive Officer and the Board of Directors of Hyperdynamics Corporation.

(b) Executive shall devote his full time (as defined below) and attention to such duties, except for sick leave, periodic personal trips and vacations as determined not to conflict with the material operations of the Company, and excused leaves of absences otherwise. Executive shall use his best efforts during the Term of Employment to protect,
encourage, and promote the interests of the Company.

  

  

  

 

Full time with respect to this agreement is understood to credit the Executive for his on-call status with regard to managing employees located around the world and recognizing that the Executive’s hours of specific work for the company are not limited to any specific range of time during a work day but can be accomplished around the
clock and on weekends and/or holidays if deemed necessary by the Chief Executive Officer or the  Executive his self, and certain responsibilities of Executive’s responsibilities, as approved by the Chief Executive Officer, may be done at any physical location including Executive’s home.  As approved by the Chief Executive Officer the company may establish full home computer system and access communications capabilities for Executive as deemed necessary by mutual agreement of the
Chief Executive Officer and Executive.

(c) Notwithstanding paragraph 2(b), Executive shall be entitled to sit as a director on other boards of directors so long as doing so presents no conflict of interest with Executive's performance of his duties or his positions at the Company, as determined and approved by the board of directors.

3.          Compensation.

(a) Base Salary. The Company shall pay to Executive during the

Term of Employment a minimum salary at the rate of One Hundred Seventy Five Thousand dollars ($185,000.00) per year. Executive has agreed to accept S8 registered common stock from the employees stock and stock option plan for the amount of this base salary over $92,500.  Thus, $92,500 of base salary per year will be paid with cash
and $92,500 per year will be paid in common stock based on the closing common stock price at the time of issuance for such payment. Such stock issuance may be part of a 10b5 plan. The company may at any time option to pay all base salary in cash.

Such salary shall be payable Bi-Weekly, Semi-monthly, or monthly in accordance with the Company's normal payroll procedures. (Executive's annual salary, as set forth above or as it may be increased from time to time as set forth herein, shall be referred to hereinafter as "Base Salary"). At no time during the Term of Employment shall Executive's
Base Salary be decreased from the amount of Base Salary then in effect.

(b) Performance Bonus. In addition to the compensation otherwise payable to Executive pursuant to this Agreement, Executive shall be eligible to receive performance bonus(es) as determined and agreed to from time to time by the Chief Executive Officer and the Board of Directors.

(c) Long Term Incentive/Stock Options. Upon execution of this Agreement, once approved by the Compensation Committee and recommended to the board of directors and then approved by the board of directors, the board of directors will take action to grant Executive 45,000 S8 registered stock options to purchase the common stock of the Company,
every quarter during the term of this Agreement, beginning the effective date of this Agreement, and then 23,000 S8 registered stock options on the first day of every quarter thereafter.  Thus, the total options to be granted to Executive under this Agreement shall be 206,000. These options are subject to the Company’s Employee Stock and Stock Option plan and shall be three (3) year options with a strike price equal to the closing stock price at the time the option is vested.

  

  

  

 

4.          Benefits During the Term of Employment:

(a) Executive shall be eligible to participate in any life, health and long-term disability insurance programs, pension and retirement programs, stock option and other incentive compensation programs, and other fringe benefit programs made available to senior executive employees of the Company from time to time, and Executive shall be entitled
to receive such other fringe benefits as may be granted to his from time to time by the Company's Board of Directors.

(b) Executive shall be allowed two (2) weeks of vacation with pay on the same basis as other senior executive employees of the Company. Executive shall devote his full time and attention to such duties, except for sick leave, and excused leaves of absences otherwise.

(c) The Company shall reimburse Executive for reasonable business expenses incurred in performing Executive's duties and promoting the business of the Company, including, but not limited to, reasonable entertainment expenses, travel and lodging expenses, following presentation of documentation in accordance with the Company's business expense
reimbursement policies.

(d) Executive shall be added as an additional named insured under all liability insurance policies now in force or hereafter obtained covering any officer or director of the Company in his or his capacity as an officer or director. Company shall indemnify Executive in his capacity as an officer or director and hold his harmless from any cost,
expense or liability arising out of or relating to any acts or decisions made by his on behalf of or in the course of performing services for the Company.

5.         Term; Termination of Employment. As used herein, the phrase "Term of Employment" shall mean the period commencing on the Effective Date and ending on the same date two (2) years later; provided, however, that as of the expiration date of each of (i) the initial Term of Employment and (ii)
if applicable, any Renewal Period (as defined below), the Term of Employment shall automatically be extended for a one (1) year period (each a "Renewal Period") unless either the Company or Executive provides Two (2) months' notice to the contrary. Notwithstanding the foregoing, the Term of Employment shall expire on the first to occur of the following:

(a) Termination by the Company. Notwithstanding anything to the contrary in this Agreement, whether express or implied, the Company may, at any time, terminate Executive's employment for any reason other than Cause, Death or Disability by giving Executive at least 60 days' prior written notice of the effective date of termination. Company
may terminate Employee's employment for Cause, Death or Disability without prior notice, except that Executive may not be terminated for substantial and willful failure to perform specific and lawful directives of the Board, unless and until the Board has given his reasonable written notice of its intended actions and specifically describing the alleged events, activities or omissions giving rise thereto and with respect to those events, activities or omissions for which a cure is possible, a reasonable opportunity
to cure such breach; and provided further, however, that for purposes of determining whether Cause is present, no act or failure to act by Executive shall be considered "willful" if done or omitted to be done by Executive in good faith and in the reasonable belief that such act or omission was in the best interest of the Company and/or required by applicable law.

  

  

  

 

(b) Termination by Executive. In the event that Executive's employment with the Company is voluntarily terminated by Executive, the Company shall have no further obligation hereunder from and after the effective date of termination. Executive shall give the Company at least 30 days' advance written notice of his intention to terminate his
employment hereunder.

(c) Salary, Benefits, and Severance Pay Upon Termination. In the event of termination of employment, Executive shall receive all regular Base Salary due up to the date of termination, and if it has not previously been paid to Executive, Executive shall be paid any Bonus to which Executive had become entitled under Bonus(es) approved for Executive,
prior to the effective date of such termination. The Company shall have no further obligation hereunder from and after the effective date of termination except as to policies put in place for severance pay in certain situations where there is a termination not for cause and the board approves such severance pay.

Executive's stock options with respect to the Company's stock shall be subject to the terms of the Hyperdynamics’ Employee Stock and Stock Option Plan or any successor plan, which is a separate agreement. In the event of termination, Executive's rights to benefits other than severance shall be governed by the terms of the Company's retirement,
insurance and other benefit plans and programs then in effect in accordance with the terms of such plans.

6.         Confidential Information, Non-Solicitation and Non-Competition.

(a) During the Term of Employment and at all times thereafter, Executive shall not, except as may be required to perform his duties hereunder or as required by applicable law, disclose to others or use, whether directly or indirectly, any Confidential Information regarding the Company. "Confidential Information" shall mean information about
the Company, its subsidiaries and affiliates, and their respective clients and customers that is not available to the general public.

7.          Return of Company Documents: In the event Executive leaves the employment of Company for whatever reason, Executive agrees to deliver to Company any and all property situated on Company's premises and owned by Company including disks and other storage media, filing cabinets or other
work areas, is subject to inspection by Company personnel at any time, with or without notice, for the purpose of protecting Company's rights and interests in its intellectual property.

8.         Taxes. All payments to be made to Executive under this Agreement will be subject to any applicable withholding of federal, state and local income and employment taxes. Any withholding regarding exercise of stock options will be determined by including an opinion of a third party tax
attorney paid by the company as pertaining to any withholding that may be required or not required.

  

  

  

 

9.         Miscellaneous. This Agreement shall also be subject to the following miscellaneous considerations:

(a) Executive and the Company each represent and warrant to the other that he or it has the authorization, power and right to deliver, execute, and fully perform his or its obligations under this Agreement in accordance with its terms.

(b) This Agreement contains a complete statement of all the arrangements between the parties with respect to Executive's employment by the Company, this Agreement supersedes all prior and existing negotiations and agreements between the parties concerning Executive's employment, and this Agreement can only be changed or modified pursuant
to a written instrument duly executed by each of the parties hereto.

(c) If any provision of this Agreement or any portion thereof is declared invalid, illegal, or incapable of being enforced by any court of competent jurisdiction, the remainder of such provisions and all of the remaining provisions of this Agreement shall continue in full force and effect.

(d) This Agreement shall be governed by and construed in accordance with the internal, domestic laws of the State of Texas.

(e) Any rights of Executive hereunder shall be in addition to any rights Executive may otherwise have under benefit plans, agreements, or arrangements of the Company to which he is a party or in which he is a participant, including, but not limited to, any Company-sponsored employee benefit plans. Provisions of this Agreement shall not in
any way abrogate Executive's rights under such other plans, agreements, or arrangements.

(f) For the purpose of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed to the named Executive at the address set forth
below under his signature; provided that all notices to the Company shall be directed to the attention of the Board of Directors with a copy to the Secretary of the Company, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.

(g) Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

(h) Failure to insist upon strict compliance with any of the terms, covenants, or conditions hereof shall not be deemed a waiver of such term, covenant, or condition, nor shall any waiver or relinquishment of, or failure to insist upon strict compliance with, any right or power hereunder at any one or more times be deemed a waiver or relinquishment
of such right or power at any other time or times.

(i) This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

10.       Survival of Provisions: The executory provisions of this Agreement will survive the termination of this Agreement.

  

  

  

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

	
EXECUTIVE
	
COMPANY
	  
	  	  	  	  
	  	  	
HYPERDYNAMICS CORPORATION
	  
	  	  	  	  
	  	  	  	  
	
BY:
	  	
BY:
	  
	  	  	  	  
	
JASON D. DAVIS
	
KENT P. WATTS
	  
	
TITLE:
	
TITLE:
	  
	
CHIEF FINANCIAL OFFICER
	
CHIEF EXECUTIVE OFFICER
	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	
ADDRESS:
	
ADDRESS:
	  
	  	  	
One Sugar Creek Center Boulevard
	  
	  	  	
Suite 125
	  
	  	  	
Sugar Land, Texas 77478Unassociated Document

Exhibit 10.2

 

HYPERDYNAMICS CORPORATION

 

STOCK OPTION AGREEMENT

 

O-120

 

THIS OPTION AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, OR AN OPINION OF COUNSEL SATISFACTORY
TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT.

 

Date of Grant:    July 1, 2009

 

THIS GRANT, dated as of the date of grant first stated above (the "Date of Grant"), is delivered by Hyperdynamics Corporation (the "Company") to Jason Davis (the "Grantee"), who is an employee, consultant, officer or director of the Company or one of its subsidiaries (the Company is sometimes referred to herein as the "Employer").

 

WHEREAS, the Board of Directors of the Company (the "Board") granted to Grantee the right to purchase shares of the Common Stock of the Company, par value $0.001 per share (the "Stock"), in accordance with the terms and provisions hereof.

 

NOW, THEREFORE, the parties hereto, intending to be legally bound hereby, agree as follows:

 

	
1.
	
Grant of Option.

 

Subject to the terms and conditions hereinafter set forth, the Company, with the approval and at the direction of the Board, hereby grants to the Grantee, as of the Date of Grant, an option to purchase up to 45,000 shares of Stock at a price of $.42 per share which shall be the Fair Market Value on the Date of Grant (subject to paragraph
7).  Such option is hereinafter referred to as the "Option" and the shares of stock purchasable upon exercise of the Option are hereinafter sometimes referred to as the "Option Shares."

 

	
2.
	
Option Type

 

It is the intent of the Board that the Option is to be a Non-Statutory Option.

 

	
3.
	
Vesting.

 

All shares vest immediately

 

	
4.
	
Acceleration of Expiration Date Of This Option

 

In the event of a corporate action in the nature of a merger in which the corporation is not the surviving entity, the sale of substantially all of the assets of the corporation or an exchange or purchase from shareholders of their stock of the corporation, that requires the vote or consent of shareholders, then the expiration date
of these options shall accelerate to be the date of such a corporate action."

  

  

  

 

	
5
	
Termination of Option.

 

	
  
	
(a)
	
The Option and all rights hereunder with respect thereto, to the extent such rights shall not have been exercised, shall terminate and become null and void after the expiration of three years from the Date of Grant (the "Option Term").

 

	
  
	
(b)
	
In the event of the death of the Grantee, the Option may be exercised by the Grantee's legal representative(s), but only to the extent that the Option would otherwise have been exercisable by the Grantee.

 

	
6.
	
Exercise of Options.

 

	
  
	
(a)
	
The Grantee may exercise the Option with respect to all or any part of the number of Option Shares then exercisable hereunder by giving the Secretary of the Company   written notice of intent to exercise.  The notice of exercise shall specify the number of Option Shares as to which the Option is to be exercised and the date of exercise thereof, which date shall be at least five
days after the giving of such notice unless an earlier time shall have been mutually agreed upon.

 

	
  
	
(b)
	
Full payment (in U.S. dollars) by the Grantee of the option price for the Option Shares purchased shall be made on or before the exercise date specified in the notice of exercise by wire transfer, check, or money order, or, with the prior written consent of the Board, in whole or in part through the surrender of previously acquired shares of Stock at their fair market value on the exercise date, or cashless
exercise using the intrinsic value of the option itself.

 

On the exercise date specified in the Grantee's notice or as soon thereafter as is practicable, but not to exceed ten (10) business days, the Company shall cause to be delivered to the Grantee, a certificate or certificates for the Option Shares then being purchased (out of theretofore unissued Stock or reacquired Stock, as the Company
may elect) upon full payment for such Option Shares.

 

	
  
	
(c)
	
If the Grantee fails to pay for any of the Option Shares specified in such notice, the Grantee's right to purchase such Option Shares may be terminated by the Company.  The date specified in the Grantee's notice as the date of exercise shall be deemed the date of exercise of the Option, provided that payment in full for the Option Shares to be purchased upon such exercise shall have been received
by such date.

 

	
7.
	
Adjustment of and Changes in Stock of the Company.

 

In the event of a reorganization, recapitalization, change of shares, stock split, spin-off, stock dividend, reclassification, subdivision or combination of shares, merger, consolidation, rights offering, or any other change in the corporate structure or shares of capital stock of the Company, the Board shall make such adjustment  in
the number and kind of shares of Stock subject to the Option or in the option price; provided, however, that no such adjustment shall give the Grantee any additional benefits under the Option.

 

	
8.
	
Fair Market Value.

 

As used herein, "Fair Market Value" means (i) if the Common Stock is not listed or admitted to trade on a national securities exchange and if bid and ask prices for the Common Stock are not furnished through NASDAQ or a similar organization, the value established by the Committee, in its sole discretion, for purposes of the Plan;
(ii) if the Common Stock is listed or admitted to trade on a national securities exchange or a national market system, the closing price of the Common Stock, as published in the Wall Street Journal, so listed or admitted to trade on such date or, if there is no trading of the Common Stock on such date, then the closing price of the Common Stock on the next preceding day on which there was trading in such shares; or (iii) if the Common Stock is not listed or admitted to trade on a national securities exchange
or a national market system, the mean between the bid and ask price for the Common Stock on such date, as furnished by the National Association of Securities Dealers, Inc. through NASDAQ or a similar organization if NASDAQ is no longer reporting such information. If trading in the stock or a price quotation does not occur on the Date of Grant, the next preceding date on which the stock was traded or a price was quoted will determine the fair market value.

 

  

  

  

 

	
9.
	
No Rights of Stockholders.

 

Neither the Grantee nor any personal representative shall be, or shall have any of the rights and privileges of, a stockholder of the Company with respect to any shares of Stock purchasable or issuable upon the exercise of the Option, in whole or in part, prior to the date of exercise of the Option.

 

	
10.
	
Non-Transferability of Option.

 

During the Grantee's lifetime, the Option hereunder shall be exercisable only by the Grantee or any guardian or legal representative of the Grantee, and the Option shall not be transferable except, (i) in case of the death of the Grantee, by will or the laws of descent and distribution, and (ii) to a child, grandchild or stepchild
of the Grantee or to a trust or partnership created by the Grantee, who, in each case, will be subject to all of the provisions hereof, nor shall the Option be subject to attachment, execution or other similar process.  In the event of (a) any attempt by the Grantee to alienate, assign, pledge, hypothecate or otherwise dispose of the Option, except as provided for herein, or (b) the levy of any attachment, execution or similar process upon the rights or interest hereby conferred, the Company may terminate
the Option by notice to the Grantee and it shall thereupon become null and void and of no value to any such party.

 

	
11.
	
Notice.

 

Any notice to the Company provided for in this instrument shall be addressed to it in care of its Secretary at its executive offices at Hyperdynamics Corporation, and any notice to the Grantee shall be addressed to the Grantee at the current address shown on the records of the Company.  Any notice shall be deemed to be duly
given if and when properly addressed and posted by registered or certified mail, postage prepaid.

 

	
12.
	
Governing Law.

 

The validity, construction, interpretation and effect of this instrument shall exclusively be governed by and determined in accordance with the law of the State of Texas, except to the extent preempted by federal law, which shall to the extent govern.

 

	
13.
	
Stock and Stock Option Plan

 

This Option is subject to the terms and conditions of the Hyperdynamics Stock and Stock Option Plan, as amended, which is attached hereto.

 

IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute this Stock Option Agreement.

 

 

	  	
HYPERDYNAMICS CORPORATION

	 	 
	  	
By:
	  
	  	  	  
	 	 	 
	  	
Title:

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