Document:

exv10w1

Exhibit 10.1

Execution Version

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

     THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”), executed on July 15, 2010
and effective as of July 6, 2010 (the “Effective Date”), amends and restates that certain
Employment Agreement effective as of October 1, 2009 by and between Delta Petroleum Corporation, a
Delaware corporation (hereafter “Company”), and Carl Lakey (hereafter “Employee”). The Company and
Employee may sometimes hereafter be referred to singularly as a “Party” or collectively as the
“Parties.”

W I T N E S S E T H:

     WHEREAS, the Company desires to continue to secure the employment services of Employee subject
to the terms and conditions hereafter set forth; and

     WHEREAS, the Employee is willing to enter into this Agreement upon the terms and conditions
hereafter set forth;

     NOW, THEREFORE, in consideration of Employee’s employment with the Company, and the premises
and mutual covenants contained herein, the Parties hereto agree as follows:

     1. Employment. During the Employment Period (as defined in Section 4 hereof),
the Company shall employ Employee, and Employee shall serve as, Chief Executive Officer of the
Company. Employee’s principal place of employment shall be at the main corporate offices of the
Company in Denver Colorado.

     2. Compensation.

          (a) Base Salary. The Company shall pay to Employee during the Employment Period a base salary
of $390,000.00 per year, as adjusted pursuant to the subsequent provisions of this paragraph (the
“Base Salary”). The Base Salary shall be payable in accordance with the Company’s normal payroll
schedule and procedures for its Employees. The Base Salary shall be subject to at least annual
review and may be increased (but not decreased without Employee’s express consent) by the
Compensation Committee (the “Compensation Committee”) of the Board of Directors of the Company (the
“Board”) at any time. Nothing contained herein shall preclude the payment of any other
compensation to Employee at any time as determined by the Compensation Committee.

          (b) Bonus. In addition to the Base Salary in Section 2(a), for each annual period
based on each fiscal year of the Company during the Employment Period (as defined in Section
4) (each such annual period being referred to as a “Bonus Period”), Employee shall be entitled
to a bonus equal to a percentage of Employee’s Base Salary paid during each such one (1) year
period (referred to herein as the “Bonus”); provided, however, Employee shall be entitled to the
Bonus only if Employee has met the performance criteria set by the Compensation
Committee for the applicable period. In the event that the Employment Period ends before the

 

 

end
of the Bonus Period, Employee shall be entitled to a prorata portion of the Bonus for that year
(based on the number of days in which he was employed during the year divided by 365) as determined
based on satisfaction of the performance criteria for that period on a prorata basis, unless
Employee was terminated for Cause (as defined in Section 6(e)) in which event he shall not
be entitled to any Bonus for that year. Employee acknowledges that the amount and performance
criteria for Employee’s Bonus to be earned for each Bonus Period shall be set on or before the
beginning of the applicable Bonus Period in the form of a Target Bonus award expressed as a
percentage of the then current base salary. The Target Bonus will be determined from competitive
data and reviewed and approved by the Compensation Committee and will be in force for the duration
of the Agreement. Each year prior to the performance period, the Employee shall have the
opportunity to meet with and discuss the general award criteria with the Compensation Committee
prior to the finalization of such criteria. If Employee successfully meets the performance
criteria established by the Compensation Committee the exact bonus payment will be determined based
upon performance against the award criteria expressed as a percent of the Target Bonus. The
Company shall pay Employee the earned Bonus amount within the earlier of: (i) thirty days (30) from
the submission of the preliminary audit results for the end of the fiscal year; (ii) ninety days
(90) days after the end of the Bonus Period; (iii) thirty (30) days after his Employment Period, as
applicable; or, (iv) March 15 of the year following the end of the Bonus Period.

          (c) Stock Options. Employee shall be eligible from time to time to receive grants of stock
options and/or other long-term equity incentive compensation, as commensurate with his employment
position, under the terms of the Company’s equity compensation plans.

     3. Duties and Responsibilities of Employee. During the Employment Period, Employee
shall devote his services full-time to the business of the Company and perform the duties and
responsibilities assigned to him under the Company’s certificate of incorporation or bylaws, or as
assigned by the Chairman of the Board, the Board, or the Compensation Committee, to the best of his
ability and with reasonable diligence. In determining Employee’s duties and responsibilities,
Employee shall not be assigned duties and responsibilities that are inappropriate for his position.
This Section 3 shall not be construed as preventing Employee from (a) engaging in
reasonable volunteer services for charitable, educational or civic organizations, or (b) investing
his assets in such a manner that will not require a material amount of his time or services in the
operations of the businesses in which such investments are made; provided, however, no such other
activity shall conflict with Employee’s loyalties and duties to the Company. Employee shall at all
times use his best efforts to in good faith comply with United States laws applicable to Employee’s
actions on behalf of the Company and its Affiliates (as defined in Section 6(e)). Employee
understands and agrees that he may be required to travel from time to time for purposes of the
Company’s business.

     4. Term of Employment. Employee’s initial term of employment with the Company under
this Agreement shall be for the period from the Effective Date through December 31, 2010 (the
“Initial Term of Employment”). Thereafter, the Employment Period hereunder shall be automatically
extended repetitively for an additional one (1) year period on
January 1, 2011, and each one-year anniversary thereof, unless Notice of Termination (pursuant to
Section 7) is given by either the Company or Employee to the other Party at least sixty
(60)

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days prior to the end of the Initial Term of Employment or any one-year extension thereof, as
applicable, that the Agreement will not be renewed for a successive one-year period after the end
of the current one-year period. The Company and Employee shall each have the right to give Notice
of Termination at will, with or without cause, at any time subject, however, to the terms and
conditions of this Agreement regarding the rights and duties of the Parties upon termination of
employment. The Initial Term of Employment, and any one-year extension of employment hereunder,
shall each be referred to herein as a “Term of Employment.” The period from the Effective Date
through the date of Employee’s termination of employment with the Company and all Affiliates, for
whatever reason, shall be referred to herein as the “Employment Period.”

     5. Benefits. Subject to the terms and conditions of this Agreement, during the
Employment Period, Employee shall be entitled to all of the following:

          (a) Reimbursement of Business Expenses. The Company shall pay or reimburse Employee for all
reasonable travel, entertainment and other business expenses paid or incurred by Employee in the
performance of his duties hereunder. The Company shall also provide Employee with suitable office
space, including staff support, and paid parking.

          (b) Other Employee Benefits. Employee shall be entitled to participate in any pension,
retirement, 401(k), profit-sharing, and other employee benefits plans or programs of the Company to
the same extent as available to any other officers of the Company under the terms of such plans or
programs. Employee shall also be entitled to participate in any group insurance, hospitalization,
medical, dental, health, life, accident, disability and other employee benefits plans or programs
of the Company to the extent available to any other officers of the Company under the terms of such
plans or programs.

          (c) Vacation and Holidays. Employee shall be entitled to no less than the 30 days of paid
vacation per year (prorated in any calendar year during which he is employed for less than the
entire year based on the number of days in such calendar year in which he was employed). Employee
shall also be entitled to all paid holidays and personal days provided by the Company for its
officers under the Company’s policy as then effective.

     6. Rights and Payments upon Termination. The Employee’s right to compensation and
benefits for periods after the date on which his employment terminates with the Company and all
Affiliates (the “Termination Date”), shall be determined in accordance with this Section 6,
as follows:

          (a) Minimum Payments. Employee shall be entitled to the following minimum payments under this
Section 6(a), in addition to any other payments or benefits to which he is entitled to
receive under the terms of any employee benefit plan or program or Section 6(b) or
Section 8:

     (1) his unpaid salary for the full month in which his Termination Date
occurred; provided, however, if Employee is terminated for Cause (as defined in
Section 6(e)), he shall only be entitled to receive his accrued but unpaid
salary through his Termination Date;

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     (2) his unpaid vacation days for that year which have accrued through his
Termination Date; and

     (3) reimbursement of his reasonable business expenses that were incurred but
unpaid as of his Termination Date.

     Such salary and accrued vacation days shall be paid to Employee within five (5)
business days following the Termination Date in a cash lump sum less applicable
withholdings. Business expenses shall be reimbursed in accordance with the Company’s normal
procedures.

          (b) Other Severance Payments. In the event that during the Term of Employment (i) Employee’s
employment is involuntarily terminated by the Company (except due to a “No Severance Benefits
Event” (as defined in Section 6(e)), (ii) Employee’s employment is terminated due to his
“Disability” or “Retirement” (as such terms are defined in Section 6(e)), or (iii) Employee
terminates his own employment hereunder for “Good Reason” (as defined in Section 6(e)),
then in any such event under clause (i), (ii) or (iii), the following severance benefits shall be
provided to Employee or, in the event of his death before receiving all such benefits, to his
“Designated Beneficiary” (as defined in Section 6(e)) following his death:

     (1) The Company shall pay to Employee as additional compensation (the “Additional
Payment”), an amount equal to two (2) times the sum of:

     (A) the Employee’s highest Base Salary in effect at any time within 12 months
before the Termination Date; plus

     (B) an amount equal to the annual average of the annual bonuses (includes any
incentive cash compensation) paid or payable to the Employee by the Company and any
Subsidiary for the three fiscal years of the Company immediately preceding the
fiscal year in which the Termination Date occurs, but not less than the greater of
(a) Employee’s highest annual Target Bonus during any of these three preceding
fiscal years or (b) the Employee’s Target Bonus for the fiscal year in which the
Termination Date occurs.

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     For clause (B) (above) of this definition: (a) the calculation of the average of the
annual bonuses of the Employee shall include a fiscal year during which the Employee was
employed by the Company and was a participant in a bonus or incentive cash compensation plan
even if the Employee did not earn any bonus or incentive cash compensation for that fiscal
year; (b) the bonus or incentive cash compensation paid or payable to the Employee for only
part of a fiscal year of the Company shall be annualized (on the same basis as the one on
which the bonus or compensation was prorated) for that fiscal year to calculate the average;
and (c) the “targeted bonus” for the fiscal year of the Company in which the Termination
Date occurs shall be the amount identified as a “target” by the Board (or the committee
thereof that administers the bonus or incentive cash compensation plan) for the Employee.

     The Company shall make the Additional Payment to Employee in a cash lump on the
sixtieth (60th) day following the Termination Date.

     (2) The Company shall maintain continued group health plan coverage following the
Termination Date under all plans subject to the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended (“COBRA”) (as codified in Code Section 4980B and Part 6 of Subtitle
B of Title I of ERISA), for Employee and his eligible spouse and dependents for the maximum
period for which such qualified beneficiaries are eligible to receive COBRA coverage.
However, Employee (and his spouse and dependents) shall not be required to pay more for such
COBRA coverage than is charged by the Company to its officers who are then in active service
for the Company and receiving coverage under such plan and, therefore, the Company shall be
responsible for the difference between the amount charged hereunder and the full COBRA
premiums. In all other respects, Employee (and his spouse and dependents) shall be treated
the same as other COBRA qualified beneficiaries under the terms of such plans and the
provisions of COBRA. In the event of any change to a group health plan following the
Termination Date, Employee and his spouse and dependents, as applicable, shall be treated
consistently with the then-current officers of the Company with respect to the terms and
conditions of coverage and other substantive provisions of the plan. Employee and his
spouse hereby agree to acquire and maintain any and all coverage that either or both of them
are entitled to at any time during their lives under the Medicare program or any similar
program of the United States or any agency thereof. Employee and his spouse further agree
to pay any required premiums for Medicare coverage from their personal funds.

     For purposes of clarity, in the event that (i) Employee voluntarily resigns or otherwise
voluntarily terminates his own employment, except for Good Reason or due to his death, Disability
or Retirement (as such terms are defined in Section 6(e)), or (ii) Employee’s employment is
terminated due to a No Severance Benefits Event (as defined in Section 6(e)), then, in
either such event under clause (i) or (ii), the Company shall have no obligation to provide the
severance benefits described in paragraphs (1) and (2) (above) of this Section 6(b), except
to offer COBRA coverage (as required by COBRA law) but not at the special discounted rate described
in paragraph (2). Employee shall still be entitled to the severance benefits provided
under Section 6(a). The severance payments provided under this Agreement or the

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Change in Control Agreement shall supersede and replace any severance payments under any severance
pay plan that the Company or any Affiliate maintains for employees generally.

          (c) Change in Control Agreement. Notwithstanding any provision hereof to the contrary, if
Employee is a party to the Change in Control Agreement (as defined in Section 6(e)), in the
event of a Severance Payment Event (as defined in the Change in Control Agreement) affecting
Employee, the severance benefits described in Sections 6(a) and 6(b) hereof shall not be
payable to or on behalf of Employee; rather severance benefits provided as the result of Severance
Payment Event shall be determined and provided by the Company pursuant solely to the terms and
conditions of the Change in Control Agreement. In addition, the post-termination restrictive
covenants imposed on Employee under Sections 15 and 16 hereof shall be superseded and
replaced by the restrictive covenants in the Change in Control Agreement if there is a Severance
Payment Event.

          (d) Release Agreement. Notwithstanding any provision of this Agreement to the contrary, in
order to receive the severance benefits payable under either Section 6(b) or
Section 8, as applicable, the Employee (or his beneficiary or estate) must first execute
and deliver to the Company, an appropriate release agreement (on a form provided by the Company)
whereby the Employee agrees to release and waive, in return for such severance benefits, any claims
that he may have against the Company including, without limitation, for unlawful discrimination
(e.g., Title VII of the Civil Rights Act) (the “Release”) and any revocation period therefor shall
have lapsed; provided, however, that the Release agreement shall not release any claim or cause of
action by or on behalf of the Employee for (a) any payment or benefit that may be due or payable
under this Agreement or any employee benefit plan prior to the receipt thereof, (b) any willful
failure by the Company to cooperate with Employee in exercising his vested stock options or other
equity incentives in accordance with their terms, (c) non-payment of salary or benefits to which he
is entitled from the Company as of the Termination Date, or (d) a breach of this Agreement by the
Company; provided further, that in the event that the Employee (or his beneficiary or estate) does
not deliver the executed Release to the Company, or the revocation period applicable to the Release
has not lapsed, on or prior to the sixtieth (60th) day following Employee’s termination,
any payments or benefits scheduled to be paid under Section 6(b) or Section 8, as applicable, on or
prior to the day that that the Employee delivers the executed Release to the Company (or, if later,
the day that any revocation period applicable to the Release lapses) shall be forfeited.

          (e) Definitions.

     (1) “Affiliate” has the same meaning ascribed to such term in Rule 12b-2 under
the Securities Exchange Act of 1934, as amended from time to time.

     (2) “Cause” means any of the following: (A) the Employee’s conviction by a
court of competent jurisdiction as to which no further appeal can be taken of a
crime involving moral turpitude or a felony or entering the plea of
nolo contendere to such crime by the Employee; (B) the commission by the
Employee of a material and demonstrable act of fraud, or a material and

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demonstrable misappropriation of funds or property, of or upon the Company or any Affiliate; (C)
the knowing engagement by the Employee, without the written approval of the Board or
Compensation Committee, in any material activity which directly competes with the
business of the Company or any Affiliate, or which would directly result in a
material injury to the business or reputation of the Company or any Affiliate; or
(D) (i) the material breach by Employee of any material provision of this Agreement,
or (ii) the willful, material and repeated nonperformance of Employee’s duties to
the Company or any Subsidiary (other than by reason of Employee’s illness or
incapacity), but only under clauses (C), (D) (i) or (D) (ii) after Notice from the
Board or Compensation Committee of such material breach or nonperformance (which
Notice specifically identifies the manner and sets forth specific facts,
circumstances and examples of which the Board or Compensation Committee believes
that Employee has breached this Agreement or not substantially performed his duties)
and his continued willful failure to cure such breach or nonperformance within the
time period set by the Board or Compensation Committee but in no event more than 60
calendar days after his receipt of such Notice; and, for purposes of clause (D), no
act or failure to act on Employee’s part shall be deemed “willful” unless it is done
or omitted by Employee without his reasonable belief that such action or omission
was in the best interest of the Company (assuming disclosure of the pertinent facts,
any action or omission by Employee after consultation with, and in accordance with
the advice of, legal counsel reasonably acceptable to the Company shall be deemed to
have been taken in good faith and to not be willful for purposes of this Agreement).

     (3) “Change in Control” of the Company has the same definition as set out in
the Change of Control Agreement.

     (4) “Change in Control Agreement” means the Change-in-Control Employee
Severance Agreement between Employee and the Company, originally effective as of
October 1, 2009, as may hereafter be amended or supplemented.

     (5) “Code” means the Internal Revenue Code of 1986, as amended, or its
successor. References herein to any Section of the Code shall include any successor
provisions of the Code.

     (6) “Designated Beneficiary” means the Employee’s surviving spouse, if any. If
there is no such surviving spouse at the time of Employee’s death, then the
Designated Beneficiary hereunder shall be Employee’s estate.

     (7) “Disability” shall mean that Employee is entitled to receive long-term
disability (“LTD”) income benefits under the LTD plan or policy maintained by the
Company that covers Employee. If, for any reason, Employee is not
covered under such LTD plan or policy, then “Disability” shall mean a
“permanent and total disability” as defined in Section 22(e)(3) of the Code and
Treasury regulations thereunder. Evidence of such Disability shall be certified by

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a physician acceptable to both the Company and Employee. In the event that the
Parties are not able to agree on the choice of a physician, each shall select one
physician who, in turn, shall select a third physician to render such certification.
All costs relating to the determination of whether Employee has incurred a
Disability shall be paid by the Company. Employee agrees to submit to any
examinations that are reasonably required by the attending physician or other
healthcare service providers to determine whether he has a Disability.

     (8) “Dispute” means any dispute, disagreement, claim, or controversy arising in
connection with or relating to the Agreement or the validity, interpretation,
performance, breach, or termination of the Agreement.

     (9) “Good Reason” means the occurrence of any of the following events, except
in connection with termination of the Employee’s employment for Cause or Disability,
without Employee’s express written consent:

(A) The assignment to the Employee of any duties inconsistent in any
material respect with the Employee’s position, within the 6 month
period prior to change in control or two years thereafter, which in
this definition includes status, reporting relationship to the
top-paid corporate executive, office, title, scope of responsibility
over corporate level staff or operations functions, or
responsibilities as an officer of the Company or any other material
diminution in the Employee’s position, authority, duties, or
responsibilities, other than (in any case or circumstance) an
isolated and inadvertent action not taken in bad faith that is
remedied by the Company promptly within 30 days after Notice thereof
to the Company by the Employee (for purposes of clarity and not
limitation, if (i) the Company becomes a division, a wholly or
majority-owned subsidiary, or other similar entity of another person
or entity or combination thereof and (ii) after such reorganization
the Employee is not placed in a substantially equivalent position
with the parent entity or reorganized combination entity as he had
with the Company immediately prior to such reorganization, then such
occurrence shall be deemed an assignment of duties materially
inconsistent with Employee’s position for purposes of this definition
of Good Reason); or

(B) in the event of a Change in Control, the Company requires the
Employee to be based at any office or location farther than 35 miles
from the Employee’s office or principal job location immediately
before the Change in Control, except for required
business travel to an extent substantially consistent with the
Employee’s travel obligations immediately before the Change in
Control; or

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(C) a reduction in the Employee’s Base Salary or annual bonus
opportunity of more than five percent (5%) from the highest amount in
effect at any time the prior year.

     Notwithstanding the foregoing definition of “Good Reason,” the Employee cannot
terminate his employment hereunder for Good Reason unless he (i) first notifies the
Board or Compensation Committee in writing of the event (or events) which the
Employee believes constitutes a Good Reason event under subparagraphs (A), (B) or
(C) above within 120 days from the date of such event, and (ii) provides the Company
with at least 30 calendar days to cure, correct or mitigate the Good Reason event so
that it either (1) does not constitute a Good Reason event hereunder or (2) Employee
agrees, in writing, that after any such modification or accommodation made by the
Company that such event shall not constitute a Good Reason event.

     (10) “No Severance Benefits Event” means termination of Employee’s employment
for Cause (as defined above).

     (11) “Retirement” means the termination of Employee’s employment for normal
retirement at or after attaining age sixty (60) provided that, on the date of his
retirement, Employee has accrued at least five years of active service as an
employee with the Company or its Affiliates.

     (12) “Subsidiary” means a corporation or other entity, whether incorporated or
unincorporated, of which at least a majority of the voting securities is owned,
directly or indirectly, by the Company.

     7. Notice of Termination. Any termination by the Company or the Employee shall be
communicated by Notice of Termination to the other Party hereto. For purposes of this Agreement,
the term “Notice of Termination” means a written notice which indicates the specific termination
provision of this Agreement relied upon and sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Employee’s employment under the
provision so indicated.

     8. Severance Benefits Following Nonrenewal of Agreement. In the event that (a) this
Agreement is not renewed by the Company (pursuant to Section 4) for any reason other than a
“No Severance Benefits Event” (as defined in Section 6(e)) and (b) the employment of
Employee is subsequently terminated by the Company for any reason other than a No Severance
Benefits Event or due to his Disability within two (2) years following the expiration of the Term
of Employment hereunder due to nonrenewal by the Company, then Employee shall be entitled to
severance benefits (hereafter, the “Nonrenewal Severance Benefits”) provided that, he first enters
into a release agreement pursuant to Section 6(d). The
Nonrenewal Severance Benefits shall be computed in the same manner as severance benefits are computed under Section
6(b)(1); provided, however, the Additional Payment under that subsection shall be reduced by
the number of months that have elapsed between the last day of the Term of Employment due to
nonrenewal and the Employee’s actual termination of employment date. For example, if the

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Employee’s employment is terminated (other than due to a No Severance Benefits Event or his
Disability) nine months after the end of the Term of Employment due to the Company’s nonrenewal, he
shall be entitled to an Additional Payment pursuant to Section 6(b)(1) that is computed
based on 15 months (24 – 9 = 15) instead of 24 months. In the event of a termination of employment
as described in this Section 8, Employee shall still be entitled to the benefits under
Section 6(b)(2) for discounted COBRA coverage. Notwithstanding the foregoing, this
Section 8 shall be null and void if there is a Severance Payment Event as defined in the
Change in Control Agreement.

     9. No Mitigation. Subject to Section 6(b)(2), Employee shall not be required
to mitigate the amount of any payment or other benefits provided under this Agreement by seeking
other employment or in any other manner.

     10. Restrictive Covenants. As an inducement to the Company to enter into this
Agreement, Employee represents to, and covenants with or in favor of, the Company his compliance
with the restrictive covenants in Sections 11 through 19, as a condition to the Company’s
obligation to provide any benefits to Employee under this Agreement.

     11. Trade Secrets.

          (a) Access to Trade Secrets. As of the Effective Date and on an ongoing basis, the Company
agrees to give Employee access to Trade Secrets which the Employee did not have access to, or
knowledge of, before the Effective Date.

          (b) Access to Specialized Training. As of the Effective Date and on an ongoing basis, the
Company has provided, and agrees to provide on an ongoing basis, Employee with Specialized Training
which the Employee does not have access to, or knowledge of, before the Effective Date.

          (c) Agreement Not to Use or Disclose Trade Secrets. In exchange for the Company’s promises to
provide Employee with access to Trade Secrets and Specialized Training and the other benefits
provided under this Agreement, Employee agrees that he will not during the Employment Period, or at
any time thereafter, disclose to anyone, including, without limitation, any person, firm,
corporation or other entity, or publish or use for any purpose, any Trade Secrets and Specialized
Training, except as required in the ordinary course of the Company’s business or as authorized by
the Board.

          (d) Agreement to Refrain from Defamatory Statements. Employee shall refrain, both during the
Employment Period and thereafter, from publishing any oral or written statements about any
directors, officers, employees, agents, investors or representatives of the Company or any
Affiliate that are slanderous, libelous, or defamatory; or that disclose private or confidential
information about the business affairs, directors, officers,
employees, agents, investors or representatives of the Company or any Affiliate; or that constitute an intrusion
into the seclusion or private lives of any of such directors, officers, employees, agents,
investors or representatives; or that give rise to unreasonable publicity about the private lives
of such persons; or that place any such person in a false light before the public; or that
constitute a

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 misappropriation of the name or likeness of any such person. A violation or
threatened violation of these restrictive covenants may be enjoined by a court of law
notwithstanding the arbitration provisions of Section 30.

          (e) Definitions. The following terms, when used in this Agreement, are defined below:

     (1) “Restricted Territory” means, collectively, Denver, Colorado (and within a 100-mile
radius of the boundaries of Denver, Colorado); each county (or equivalent subdivision) of
any state, district, or territory of the United States of America as to which the Company
conducts its business; and each county (or equivalent territory) adjacent to any of the
preceding counties (or equivalent territories).

     (2) “Specialized Training” includes the training the Company provides to Employee that
is unique to its business and enhances Employee’s ability to perform Employee’s job duties
effectively. Specialized Training includes, without limitation, sales methods/techniques
training; operation methods training; engineering and scientific training; and computer and
systems training.

     (3) “Trade Secrets” means any and all information and materials (in any form or medium)
that are proprietary to the Company or a Subsidiary, or are treated as confidential by the
Company or Subsidiary as part of, or relating to, all or any portion of its or their
business, including information and materials about the products and services offered, or
the needs of customers served, by the Company or Subsidiary; compilations of information,
records and specifications, properties, processes, programs, and systems of the Company or
Subsidiary; research of or for the Company or Subsidiary; and methods of doing business of
the Company or Subsidiary. Trade Secrets include, without limitation, all of the Company’s
or Subsidiary’s technical and business information, whether patentable or not, which is of a
confidential, trade secret or proprietary character, and which is either developed by the
Employee alone, with others or by others; lists of customers; identity of customers;
existing or prospective oil or gas properties, investors, participation agreements, working,
royalty or other interests; contract terms; bidding information and strategies; pricing
methods or information; computer software; computer software methods and documentation;
hardware; the Company’s or Subsidiary’s methods of operation; the procedures, forms and
techniques used in servicing accounts or properties; seismic, geophysical, petrophysical, or
geological data; well logs and other well data; and other documents, information or data
that the Company requires to be maintained in confidence for the Company’s business success.

     12. Duty to Return Company Documents and Property. Upon termination of the Employment
Period, Employee shall immediately return and deliver to the Company any and all
papers, books, records, documents, memoranda and manuals, e-mail, electronic or magnetic
recordings or data, including all copies thereof, belonging to the Company or relating to its
business, in Employee’s possession, whether prepared by Employee or others. If at any time after
the Employment Period, Employee determines that he has any Trade Secrets in his

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possession or
control, Employee shall immediately return them to the Company, including all copies thereof.

     13. Best Efforts and Disclosure. Employee agrees that, while he is employed with the
Company, he shall devote his full business time and attention to the Company’s business and shall
use his best efforts to promote its success. Further, Employee shall promptly disclose to the
Company all ideas, inventions, computer programs, and discoveries, whether or not patentable or
copyrightable, which he may conceive or make, alone or with others, during the Employment Period,
whether or not during working hours, and which directly or indirectly:

          (a) relate to a matter within the scope, field, duties or responsibility of Employee’s
employment with the Company; or

          (b) are based on any knowledge of the actual or anticipated business or interests of the
Company; or

          (c) are aided by the use of time, materials, facilities or information of the Company.

     Employee assigns to the Company, without further compensation, any and all rights, titles and
interest in all such ideas, inventions, computer programs and discoveries in all countries of the
world. Employee recognizes that all ideas, inventions, computer programs and discoveries of the
type described above, conceived or made by Employee alone or with others within 12 months after the
Termination Date (voluntary or otherwise), are likely to have been conceived in significant part
either while employed by the Company or as a direct result of knowledge Employee had of proprietary
information or Trade Secrets. Accordingly, Employee agrees that such ideas, inventions or
discoveries shall be presumed to have been conceived during his Employment Period, unless and until
the contrary is clearly established by the Employee.

     14. Inventions and Other Works. Any and all writings, computer software, inventions,
improvements, processes, procedures and/or techniques which Employee may make, conceive, discover,
or develop, either solely or jointly with any other person or persons, at any time during the
Employment Period, whether at the request or upon the suggestion of the Company or otherwise, which
relate to or are useful in connection with any business now or hereafter carried on or contemplated
by the Company, including developments or expansions of its present fields of operations, shall be
the sole and exclusive property of the Company. Employee agrees to take any and all actions
necessary or appropriate so that the Company can prepare and present applications for copyright or
Letters Patent therefor, and secure such copyright or Letters Patent wherever possible, as well as
reissue renewals, and extensions thereof, and obtain the record title to such copyright or patents.
Employee shall not be entitled to any additional or special compensation or reimbursement
regarding any such writings, computer
software, inventions, improvements, processes, procedures and techniques. Employee
acknowledges that the Company from time to time may have agreements with other persons or entities
which impose obligations or restrictions on the Company regarding inventions made during the course
of work thereunder or regarding the confidential nature of such work.

12

 

Employee agrees to be bound by all such obligations and restrictions, and to take all action necessary to discharge the
obligations of the Company.

     15. Non-Solicitation
Restriction. To protect Trade Secrets after termination of the
Employment Period, it is necessary to enter into the following restrictive covenants, which are
ancillary to the enforceable promises between the Company and Employee in Sections 11 through
14 and other provisions of this Agreement. Following the Termination Date (regardless of the
reason for termination), Employee hereby covenants and agrees that he will not, directly or
indirectly, without the prior written consent of the Board or the Compensation Committee, either
individually or as a principal, partner, agent, consultant, contractor, employee, or as a director
or officer of any entity, or in any other manner or capacity whatsoever, except on behalf of the
Company, solicit business, or attempt to solicit business, in products or services competitive with
any products or services offered or performed by the Company or any Subsidiary with respect to any
property, drilling program, or oil or gas development prospect, project or field, in which the
Company or any Subsidiary does business or has any business interest as of the Termination Date, or
either (a) from those individuals or entities with whom the Company or Subsidiary was involved
with, or participated in, any oil or gas exploration or development project or (b) with respect to
any property in which the Company or Subsidiary had any working, royalty or other interest, at any
time during the two-year period ending on the Termination Date. The prohibitions set forth in this
Section 15 shall remain in effect for a period of one (1) year following the Termination
Date.

     16. Non-Competition Restriction. Employee hereby agrees that in order to protect
Trade Secrets, it is necessary to enter into the following restrictive covenant, which is ancillary
to the enforceable promises between the Company and Employee in Sections 11 through 15 and
other provisions of this Agreement. Employee hereby covenants and agrees that during the
Employment Period, and for a period of one (1) year following the Termination Date (regardless of
the reason for termination except an involuntary termination of Employee by the Company without
Cause (as defined in Section 6(e)), Employee will not, without the prior written consent of
the Board or the Compensation Committee, become interested in any capacity in which Employee would
perform any similar duties to those performed while at the Company, directly or indirectly (whether
as proprietor, stockholder, director, partner, employee, agent, independent contractor, consultant,
trustee, or in any other capacity), with respect to any property, drilling program, oil or gas
leasehold, project or field, in which the Company or any Subsidiary participates, or has any
investment or other business interest in, within the Restricted Territory or within five (5)
miles of the boundary of any existing Company leasehold in the United States in which the Company
or Subsidiary has conducted business at any time within the two-year period immediately preceding
the Termination Date (a “Competing Enterprise”); provided, however, Employee shall not be deemed to
be participating or engaging in a Competing Enterprise solely by virtue of his ownership of not
more than one percent (1%) of any class of stock or other securities which are publicly traded on a national securities exchange or in a
recognized over-the-counter market.

     17. No-Recruitment Restriction. Employee agrees that during the Employment Period,
and for a period of one (1) year following the Termination Date (except in the event of Employee’s
voluntary termination for Good Reason or his involuntary termination without

13

 

Cause), Employee will not, either directly or indirectly, or by acting in concert with others, solicit or influence, or
seek to solicit or influence, any employee or independent contractor performing services for the
Company or any Subsidiary to terminate, reduce or otherwise adversely affect his or her employment
or other relationship with the Company or any Subsidiary.

     18. Tolling. If Employee violates any of the restrictions contained in Sections
11 through 17, then notwithstanding any provision hereof to the contrary, the restrictive
period will be suspended and will not run in favor of Employee from the time of the commencement of
any such violation until the time when the Employee cures the violation to the reasonable
satisfaction of the Board or Compensation Committee.

     19. Reformation. If a court or arbitrator rules that any time period or the
geographic area specified in any restrictive covenant in Sections 11 through 17 is
unenforceable, then the time period will be reduced by the number of months, or the geographic area
will be reduced by the elimination of such unenforceable portion, or both, so that the restrictions
may be enforced in the geographic area and for the time to the full extent permitted by law.

     20. No Previous Restrictive Agreements. Employee represents that, except as disclosed
in writing to the Company as of the Effective Date, he is not bound by the terms of any agreement
with any previous employer or other third party to (a) refrain from using or disclosing any
confidential or proprietary information in the course of Employee’s employment by the Company or
(b) refrain from competing, directly or indirectly, with the business of such previous employer or
any other person or entity. Employee further represents that his performance under this Agreement
and his work duties for the Company do not, and will not, breach any agreement to keep in
confidence proprietary information, knowledge or data acquired by Employee in confidence or in
trust prior to Employee’s employment with the Company, and Employee will not disclose to the
Company or induce the Company to use any confidential or proprietary information or material
belonging to any previous employer or others.

     21. Conflicts of Interest. In keeping with his fiduciary duties to Company, Employee
hereby agrees that he shall not become involved in a conflict of interest, or upon discovery
thereof, allow such a conflict to continue at any time during the Employment Period. In the
instance of a material conflict of interest, it may be necessary for the Board to terminate
Employee’s employment for Cause (as defined in Section 6(e)); provided, however, Employee
cannot be terminated for Cause hereunder unless the Board first provides Employee with notice and
an opportunity to cure such conflict of interest pursuant to the same procedures as set forth in
clause (D) of the definition of “Cause” in Section 6(e)(2).

     22. Remedies. Employee acknowledges that the restrictions contained in Sections
11 through 21 of this Agreement, in view of the nature of the Company’s business, are
reasonable and necessary to protect the Company’s legitimate business interests, and that any
violation of this Agreement would result in irreparable injury to the Company. Notwithstanding the
arbitration provisions in Section 30, in the event of a breach or a threatened breach by
Employee of any provision of Sections 11 through 21 of this Agreement, the Company shall be
entitled to a temporary restraining order and injunctive relief restraining Employee from the
commission of

14

 

any breach, and to recover the Company’s attorneys’ fees, costs and expenses related
to the breach or threatened breach. Nothing contained in this Agreement shall be construed as
prohibiting the Company from pursuing any other remedies available to it for any such breach or
threatened breach, including, without limitation, the recovery of money damages, attorneys’ fees,
and costs. These covenants and agreements shall each be construed as independent of any other
provisions in this Agreement, and the existence of any claim or cause of action by Employee against
the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to
the enforcement by the Company of such covenants and agreements.

     23. Withholdings; Right of Offset. The Company may withhold and deduct from any
benefits and payments made or to be made pursuant to this Agreement (a) all federal, state, local
and other taxes as may be required pursuant to any law or governmental regulation or ruling, (b)
all other normal employee deductions made with respect to Company’s employees generally, and (c)
any advances made to Employee and owed to Company.

     24. Nonalienation. The right to receive payments under this Agreement shall not be
subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge or
encumbrance by Employee, his dependents or beneficiaries, or to any other person who is or may
become entitled to receive such payments hereunder. The right to receive payments hereunder shall
not be subject to or liable for the debts, contracts, liabilities, engagements or torts of any
person who is or may become entitled to receive such payments, nor may the same be subject to
attachment or seizure by any creditor of such person under any circumstances, and any such
attempted attachment or seizure shall be void and of no force and effect.

     25. Incompetent or Minor Payees. Should the Board or the Compensation Committee
determine, in its discretion, that any person to whom any payment is payable under this Agreement
has been determined to be legally incompetent or is a minor, any payment due hereunder,
notwithstanding any other provision of this Agreement to the contrary, may be made in any one or
more of the following ways: (a) directly to such minor or person; (b) to the legal guardian or
other duly appointed personal representative of the person or estate of such minor or person; or
(c) to such adult or adults as have, in the good faith knowledge of the Board or the Compensation
Committee, assumed custody and support of such minor or person; and any payment so made shall
constitute full and complete discharge of any liability under this Agreement in respect to the
amount paid.

     26. Indemnification. The Company shall indemnify, defend and hold harmless the
Employee from and against any and all liability, costs and damages arising from his service as an
employee, officer or director of the Company or its Affiliates as required by the certificate of
incorporation or bylaws of the Company. This Section 26 shall be in addition to, and shall
not limit in any way, the rights of Employee to any other indemnification from the Company, as a
matter of law, contract or otherwise.

     27. Severability. It is the desire of the Parties hereto that this Agreement be
enforced to the maximum extent permitted by law, and should any provision contained herein be held
unenforceable by a court of competent jurisdiction or arbitrator (pursuant to Section 30),
the Parties hereby agree and consent that such provision shall be reformed to create a valid and

15

 

enforceable provision to the maximum extent permitted by law; provided, however, if such provision
cannot be reformed, it shall be deemed ineffective and deleted herefrom without affecting any other
provision of this Agreement. This Agreement should be construed by limiting and reducing it only
to the minimum extent necessary to be enforceable under then applicable law.

     28. Title and Headings; Construction. Titles and headings to Sections hereof are for
the purpose of reference only and shall in no way limit, define or otherwise affect the provisions
hereof. The words “herein,” “hereof,” “hereunder” and other compounds of the word “here” shall
refer to the entire Agreement and not to any particular provision.

     29. Governing Law; Jurisdiction. All matters or issues relating to the
interpretation, construction, validity, and enforcement of this Agreement shall be governed by the
laws of the State of Colorado, without giving effect to any choice-of-law principle that would
cause the application of the laws of any jurisdiction other than Colorado. Jurisdiction and venue
of any action or proceeding relating to this Agreement or any Dispute (to the extent arbitration is
not required under Section 30) shall be exclusively in Denver, Colorado.

     30. Mandatory Arbitration. Except as provided in subsection (h) of this Section
30, any Dispute (as defined in Section 6(e)) must be resolved by binding arbitration in
accordance with the following:

          (a) Party may begin arbitration by filing a demand for arbitration in accordance with the
Arbitration Rules and concurrently notifying the other Party of that demand. If the Parties are
unable to agree upon a panel of three arbitrators within ten days after the demand for arbitration
was filed (and do not agree to an extension of that ten-day period), either Party may request the
Denver, Colorado office of the American Arbitration Association (“AAA”) to appoint the arbitrator
or arbitrators necessary to complete the panel in accordance with the Arbitration Rules. Each
arbitrator so appointed shall be deemed accepted by the Parties as part of the panel.

          (b) The arbitration shall be conducted in the Denver, Colorado metropolitan area at a place
and time agreed upon by the Parties with the panel, or if the Parties cannot agree, as designated
by the panel. The panel may, however, call and conduct hearings and meetings at such other places
as the Parties may agree or as the panel may, on the motion of one Party, determine to be necessary
to obtain significant testimony or evidence.

          (c) The panel may authorize any and all forms of discovery upon a Party’s showing of need that
the requested discovery is likely to lead to material evidence needed to resolve the Dispute and is
not excessive in scope, timing, or cost.

          (d) The arbitration shall be subject to the Federal Arbitration Act and conducted in
accordance with the Arbitration Rules to the extent that they do not conflict with this Section
30. The Parties and the panel may, however, agree to vary the provisions of this Section
30 or the matters otherwise governed by the Arbitration Rules.

16

 

          (e) The arbitration hearing shall be held within 60 days after the appointment of the panel.
The panel’s final decision or award shall be made within 30 days after the hearing. That final
decision or award shall be made by unanimous or majority vote or consent of the arbitrators
constituting the panel, and shall be deemed issued at the place of arbitration. The panel’s final
decision or award shall be based on this Agreement and applicable law.

          (f) The panel’s final decision or award may include injunctive relief in response to any
actual or impending breach of this Agreement or any other actual or impending action or omission of
a Party under or in connection with this Agreement.

          (g) The panel’s final decision or award shall be final and binding upon the Parties, and
judgment upon that decision or award may be entered in any court having jurisdiction. The Parties
waive any right to apply or appeal to any court for relief from the preceding sentence or from any
decision of the panel made before the final decision or award.

          (h) Nothing in this Section 30 limits the right of either Party to apply to a court
having jurisdiction to (i) enforce the agreement to arbitrate in accordance with this Section
30, (ii) seek provisional or temporary injunctive relief, in response to an actual or impending
breach of the Agreement or otherwise so as to avoid an irreparable damage or maintain the status
quo, until a final arbitration decision or award is rendered or the Dispute is otherwise resolved,
or (iii) challenge or vacate any final arbitration decision or award that does not comply with this
Section 30. In addition, nothing in this Section 30 prohibits the Parties from
resolving any Dispute (in whole or in part) by agreement.

     The panel may proceed to an award notwithstanding the failure of any Party to participate in
such proceedings. The prevailing Party in the arbitration proceeding may be entitled to an award of
reasonable attorneys’ fees incurred in connection with the arbitration in such amount, if any, as
determined by the panel in its discretion. The costs of the arbitration shall be borne equally by
the Parties unless otherwise determined by the panel in its award.

     The panel shall be empowered to impose sanctions and to take such other actions as it deems
necessary to the same extent a judge could impose sanctions or take such other actions pursuant to
the Federal Rules of Civil Procedure and applicable law. Each party agrees to keep all Disputes and
arbitration proceedings strictly confidential except for disclosure of information required by
applicable law which cannot be waived.

     This Section 30 shall not preclude the Parties at any time from mutually agreeing to
pursue non-binding mediation of the Dispute.

     31. Binding Effect: Third Party Beneficiaries. This Agreement shall be binding upon
and inure to the benefit of the Parties hereto, and to their respective heirs, executors,
beneficiaries, personal representatives, successors and permitted assigns hereunder, but otherwise
this Agreement shall not be for the benefit of any third parties.

     32. Entire Agreement; Amendment and Termination. This Agreement contains the entire
agreement of the Parties hereto with respect to the matters covered herein; moreover,

17

 

this Agreement supersedes all prior and contemporaneous agreements and understandings, oral or written,
between the Parties concerning the subject matter hereof. This Agreement may be amended, waived or
terminated only by a written instrument that is identified as an amendment, waiver or termination
hereto and that is executed on behalf of both Parties.

     33. Survival of Certain Provisions. Wherever appropriate to the intention of the
Parties, the respective rights and obligations of the Parties hereunder shall survive any
termination or expiration of this Agreement.

     34. Waiver of Breach. No waiver by either Party hereto of a breach of any provision
of this Agreement by any other Party, or of compliance with any condition or provision of this
Agreement to be performed by such other Party, will operate or be construed as a waiver of any
subsequent breach by such other Party or any similar or dissimilar provision or condition at the
same or any subsequent time. The failure of either Party hereto to take any action by reason of
any breach will not deprive such Party of the right to take action at any time while such breach
continues.

     35. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the Company and its Subsidiaries (and its and their successors), as well as upon any
person or entity acquiring, whether by merger, consolidation, purchase of assets, dissolution or
otherwise, all or substantially all of the capital stock, business and/or assets of the Company (or
its successor) regardless of whether the Company is the surviving or resulting corporation. The
Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation, dissolution or otherwise) to all or substantially all of the capital stock, business
or assets of the Company to expressly assume and agree to perform this Agreement in the same manner
and to the same extent that the Company would be required to perform it if no such succession had
occurred; provided, however, no such assumption shall relieve the Company of any of its duties or
obligations hereunder unless otherwise agreed, in writing, by Employee.

     This Agreement shall inure to the benefit of and be enforceable by Employee’s personal or
legal representative, executors, administrators, successors, and heirs. In the event of the death
of Employee while any amount is payable hereunder, all such amounts shall be paid to the Designated
Beneficiary (as defined in Section 6(e)).

     36. Notice. Each notice or other communication required or permitted under this
Agreement shall be in writing and transmitted, delivered, or sent by personal delivery, prepaid
courier or messenger service (whether overnight or same-day), or prepaid certified United States
mail (with return receipt requested), addressed (in any case) to the other Party at the address for
that Party set forth below that Party’s signature on this Agreement, or at such other address as
the recipient has designated by Notice to the other Party.

     Each notice or communication so transmitted, delivered, or sent (a) in person, by courier or
messenger service, or by certified United States mail shall be deemed given, received, and
effective on the date delivered to or refused by the intended recipient (with the return receipt,
or the equivalent record of the courier or messenger, being deemed conclusive evidence of delivery
or refusal), or (b) by telecopy or facsimile shall be deemed given, received, and effective on the

18

 

date of actual receipt (with the confirmation of transmission being deemed conclusive evidence of
receipt, except where the intended recipient has promptly Notified the other Party that the
transmission is illegible). Nevertheless, if the date of delivery or transmission is not a business
day, or if the delivery or transmission is after 5:00 p.m. on a business day, the notice or other
communication shall be deemed given, received, and effective on the next business day.

     37. Employee Acknowledgment. Employee acknowledges that (a) he is knowledgeable and
sophisticated as to business matters, including the subject matter of this Agreement, (b) he has
read this Agreement and understands its terms and conditions, (c) he has had ample opportunity to
discuss this Agreement with his legal counsel prior to execution, and (d) no strict rules of
construction shall apply for or against the drafter or any other Party. Employee represents that
he is free to enter into this Agreement including, without limitation, that he is not subject to
any covenant not to compete that would conflict with his duties under this Agreement.

     38. Section 409A. This Agreement is intended to comply with Section 409A of the Code,
as amended (“Section 409A”) and shall be construed accordingly. It is the intention of the
Parties that payments or benefits payable under this Agreement not be subject to the additional tax
or interest imposed pursuant to Section 409A. To the extent such potential payments or benefits
are or could become subject to Section 409A, the Parties shall cooperate to amend this Agreement
with the goal of giving Employee the economic benefits described herein in a manner that does not
result in such tax or interest being imposed. Notwithstanding anything in this Agreement to the
contrary, the following provisions shall apply.

     If Employee is a “specified employee” within the meaning of Treasury Regulation Section
1.409A-1(i) as of the date of Employee’s Separation from Service, as defined below, Employee shall
not be entitled to any severance payment or benefit pursuant to Section 6(b) or Section 8 until the
later of (i) eighteen (18) months following the Effective Date and (ii) the date which is six (6)
months after Employee’s Separation from Service; provided, however, that payment shall be made
within thirty (30) days of Employee’s death should he die within the applicable eighteen (18) or
six (6) month period, The provisions of this Section 38 shall only apply if, and to the extent,
required to avoid the imputation of any tax, penalty or interest pursuant to Section 409A. Any
payment that is delayed pursuant to this paragraph shall be paid on the day following the lapse of
the applicable eighteen (18) or six (6) month period.

     For purposes of this Agreement, the term “Separation from Service” means when Employee dies,
retires or otherwise has a termination of employment from the Company that constitutes a
“separation of service” within the meaning of Treasury Regulation Section 1.409A-1 (h)(1). For
purposes of this Agreement, the Employment Period ends only if Employee has
experienced a “separation of service” within the meaning of Treasury Regulation Section
1.409A-1 (h)(1).

     If a payment that could be made under this Agreement would be subject to additional taxes and
interest under Section 409A , the Company in its sole discretion may accelerate some or all of a
payment otherwise payable under the Agreement to the time at which such amount is includible in the
income of Employee, provided that such acceleration shall only be permitted to

19

 

the extent permitted under Treasury Regulation § 1.409A-3(j)(4)(vii) and the amount of such acceleration does not exceed
the amount permitted under Treasury Regulation Section 1.409A-3(j)(vii).

     No payment to be made under this Agreement shall be made at a time earlier than that provided
for in this Agreement unless such payment is (i) an acceleration of payment permitted to be made
under Treasury Regulation Section 1.409A-3(j)(4) or (ii) a payment that would otherwise not be
subject to additional taxes and interest under Section 409A of the Code.

     Each periodic payment of benefits pursuant to Section 6(b) or Section 8 shall be a separate
payment to the maximum extent permitted by Section 409A and the Treasury Regulations promulgated
thereunder.

     38. Counterparts. This Agreement may be executed in any number of counterparts, each
of which when so executed and delivered shall be an original, but all such counterparts shall
together constitute one and the same instrument. Each counterpart may consist of a copy hereof
containing multiple signature pages, each signed by one party hereto, but together signed by both
parties.

[Signature page follows.]

20

 

     IN WITNESS WHEREOF, Employee has hereunto set his hand and Company has caused this
Agreement to be executed in its name and on its behalf by its duly authorized officer, to be
effective as of the Effective Date.

	 	 	 	 	 	 	 	 	 

	WITNESS:	 	 	 	EMPLOYEE:
	 
	 	 	 	 	 	 	 	 
	Signature:

	 	/s/ Jennifer Seskar
	 	 	 	Signature:
	 	/s/ Carl Lakey
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name:  Jennifer Seskar

Date: 7/15/2010
	 	 	 	 	 	Name: Carl Lakey

            Chief Executive Officer
	 

	 	 
	 	 	 	 	 	Date: July 15, 2010
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Address for Notices:
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Carl Lakey
	 

	 	 	 	 	 	 	 	c/o Delta Petroleum Corporation
	 

	 	 	 	 	 	 	 	370 17th Street, 4300
	 

	 	 	 	 	 	 	 	Denver, Colorado, 80202

	 	 	 	 	 	 	 	 	 

	ATTEST:	 	 	COMPANY:
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Jennifer Seskar
	 	 	 	By:
	 	/s/ Stanley F. Freedman
	 

	 	 
	 	 	 	 	 	 
	 

	 	Title: HR Assistant
	 	 	 	 	 	Its: Executive Vice President and General Counsel
	 

	 	Name: Jennifer Seskar
	 	 	 	 	 	Name: Stanley F. Freedman
	 

	 	Date: 7/15/2010
	 	 	 	 	 	Date: July 15, 2010
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Address for Notices:
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Delta Petroleum Corporation
	 

	 	 	 	 	 	 	 	c/o Chairman of the Board
	 

	 	 	 	 	 	 	 	370 17th Street, Suite 4300
	 

	 	 	 	 	 	 	 	Denver, Colorado 80202

21exv10w1

Exhibit 10.1

Stock Holding Policy for

Executive Officers of the Company *

The Company’s Board of Directors has adopted the following stock holding policy reflecting
guidelines to align the interests of all of its executive officers with the interests of
shareholders:

Except as set forth below, all of the Company’s executive officers (except for the Chief Executive
Officer who continues to be subject to a previously adopted stock holding requirement policy) (the
“Executive Officers”) are required to retain, until the effective date of retirement or other
termination of employment, an amount equal to 50% of the outstanding “Net Shares” delivered to the
Executive Officer pursuant to awards granted under the Company’s equity programs (the “50% Stock
Holding Requirement”). “Net Shares” are those shares that remain after shares are sold or withheld
by the Company to pay the exercise price of stock options, withholding taxes and other transaction
costs. Net Shares shall include, but not be limited to, shares acquired through:

	 	(a)	 	stock option exercises;
	 	(b)	 	restricted stock, restricted stock unit or performance share awards;
	 	(c)	 	participation in the Graco Employee Stock Purchase Plan;
	 	(d)	 	dividend reinvestment programs including dividend reinvestments related to shares
acquired outside of Company incentive plans; and
	 	(e)	 	stock splits with respect to shares acquired through any of the foregoing.

Upon owning shares of the Company having a fair market value equal to three (3) times the current
base salary for Executive Officers reporting directly to the President and Chief Executive Officer
and two (2) times the current base salary for Executive Officers reporting to someone other than
the President and Chief Executive Officer (the “Ownership Threshold”), and so long as the Executive
Officer remains at or above this Ownership Threshold, transactions related to equity awards to
which this Policy applies shall be exempt from the 50% Stock Holding Requirement. Shares used to
calculate whether the Ownership Threshold has been met include:

	 	(a)	 	Net Shares retained upon option exercise;
	 	(b)	 	restricted stock, whether vested or unvested;
	 	(c)	 	Employee Stock Purchase Plan and Employee Stock Ownership Plan shares;
	 	(d)	 	shares acquired by open market purchase;
	 	(e)	 	shares owned by family members or entities if the Executive Officer would be deemed to
beneficially own the shares;
	 	(f)	 	shares obtained through dividend reinvestment or stock split.

To mitigate the effects of stock price volatility, compliance with these guidelines shall be
evaluated once each year using the average daily closing price of the Company’s common stock during
the previous one-year period commencing April 1 through March 31.

This Policy shall apply only to those equity awards made or granted to an Executive Officer after
the effective date of this Policy.

The foregoing Policy requirement shall be waived by the Company with regard to an individual
Executive Officer upon the effective date of (a) that Executive Officer’s “Disability”, (b) the
death of the Executive Officer, or (c) a “Change of Control”, as those terms are defined in that
certain Key Employee Agreement between the Company and the Executive Officer, as amended from time
to time.

 

 

Exhibit 10.1

The Board of Directors has delegated authority to the Company’s Chief Executive Officer to
determine whether and to what extent (a) special circumstances may warrant the grant by the Company
of an exception, hardship or otherwise, to the foregoing holding guidelines, or (b) the extent to
which a failure by an individual Executive Officer to comply with the stock holding guidelines set
forth in this Policy may warrant further reasonable action to effectuate its intent.

This Policy may be amended, modified, restated, suspended, eliminated, terminated or otherwise
changed at any time by the Board of Directors without prior notice to, or consultation with, any
Executive Officer.

The effective date of this Policy shall be April 23, 2010.

 

			
	* The Board previously adopted a stock holding requirement policy for the Company’s Chief Executive
Officer on February 13, 2009, which policy does not contain an ownership threshold. It is intended
that the terms of the previously adopted policy shall continue to apply to the Chief Executive
Officer.

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