Document:

Exhibit
10.2

 

EXECUTION COPY

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT
AGREEMENT (the “Agreement”) is made as of January 1, 2017 by and between Cyclacel Pharmaceuticals, Inc. (the “Company”),
a Delaware corporation, and Paul McBarron (the “Executive”).

 

WHEREAS, Company
and Executive were parties to an Employment Agreement dated January 1, 2014, which expires by its terms on January 1, 2017;

 

WHEREAS, Company
and Executive mutually extended the term of the Employment Agreement dated January 1, 2014 through December 31, 2017;

 

WHEREAS, Company
desires to continue to retain the Executive’s services as its Executive Vice President,
Finance, Chief Financial Officer, Chief Operating Officer and Secretary; and 

 

WHEREAS, Company
and the Executive are desirous of agreeing the terms and conditions of the Executive’s employment with the Company as set
forth herein.

 

NOW, THEREFORE,
in consideration of the foregoing and the mutual covenants and conditions herein contained, the parties hereby agree as follows:

 

1.             Employment.
Company hereby employs the Executive and the Executive accepts such employment according to the terms and conditions set forth
in this Agreement.

 

2.             Term.
Except for earlier termination as hereinafter provided for, the term of the Executive’s employment hereunder shall be for
a period commencing on January 1, 2017 (the “Commencement Date”) and continuing through January 1, 2019, the second
anniversary of the Commencement Date. Notwithstanding the foregoing, the Executive’s employment by the Company hereunder
may be earlier terminated, subject to Section 9 hereof, upon the occurrence of any one of the following events: (i) the
Company’s decision to terminate the Executive, (ii) the Executive’s decision to voluntarily resign or retire at any
time or (iii) the parties’ mutual agreement in writing to terminate the Executive’s employment hereunder at any time.
The period of time between the Commencement Date and termination of the Executive’s employment hereunder shall be referred
to herein as the “Employment Period”.

 

3.             Position
and Services. (i) The Executive will hold the position of Executive Vice President,
Finance, Chief Financial Officer, Chief Operating Officer and Secretary. The Executive will report directly to the Company’s
President and Chief Executive Officer and shall have such duties, responsibilities and authority with respect to such positions
as are set forth in the Bylaws of the Company, which duties and responsibilities shall in all events include, but not be limited
to, management responsibility for the operations, finance and administration of the Company.

 

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(ii)         The
Executive will be expected to be in the full-time employment of the Company, to devote substantially all of his business time,
attention and efforts to the performance of his duties hereunder. Notwithstanding the foregoing, the Executive may make and manage
personal business investments of his choice and serve in any capacity with any civic, educational or charitable organization, or
any trade association, without seeking or obtaining approval from the Board and/or the President and Chief Executive Officer, provided
such activities and service do not materially interfere or conflict with the performance of his duties hereunder or violate the
non-competition provisions of Section 12 hereof.

 

(iii)        The
Executive expressly agrees that during the Employment Period he will not be interested, directly or indirectly, in any form, fashion
or manner, as a partner, officer, director, advisor, employee, consultant, controlling stockholder or in any other form or capacity,
in any other business or company, except that he would not be prohibited by Section 12 hereof to serve as (a) member of
one other Board of Directors of a commercial organization, or (b) a member of one or more Boards of Directors or Trustees of a
charitable organization, as may, upon advance notice from the Executive be approved by the Board in its discretion after consideration
of possible conflicts, reputation(al) effects, time requirements and other interests of the Company.

 

The Executive is currently serving as a
Class 3 director on the Company’s Board for a term ending at the 2018 annual meeting. At the 2018 annual meeting of the Company’s
shareholders, the Board will use its best efforts to cause the nomination of the Executive to serve as a Class 3 director of the
Board for a term ending at the 2021 annual meeting. The Board will use its best efforts to cause the nomination of the Executive
thereafter for reelection as a Class 3 director to the Board for successive terms, at every time at which Class 3 directors are
nominated to the stockholders for election, as long as the Executive serves as Executive Vice
President, Finance, Chief Financial Officer, Chief Operating Officer and Secretary unless the Executive declines such nomination
in writing to the Board. As with all members of the Board, the Executive’s continuation as a director requires election as
a director by the stockholders whenever directors are to be elected by the stockholders. If the Executive ceases to serve as Executive
Vice President, Finance, Chief Financial Officer, Chief Operating Officer and Secretary for any reason, and the Board thereafter
requests that the Executive resigns as a director of the Board, the Executive shall immediately resign as a director of the Board.

 

4.             Base
Salary. Company shall pay to the Executive an initial base salary at an annual rate of £208,859, subject to applicable
income and employment tax withholdings and all other required and authorized payroll deductions and withholdings. The Executive’s
salary shall be payable at the same time and basis as the Company pays its payroll in general. Increases in the Executive’s
annual base salary during the Employment Period may be effected from time to time based upon the review and approval of the Compensation
Committee of the Board (the “Compensation Committee”). During the Employment Period, the Executive’s base salary
rate shall not be reduced below the initial base salary rate provided hereunder, nor below any increased base salary rate that
may be effected as provided hereunder, except if the Board, in response to exceptionally adverse business circumstances makes a
general temporary reduction in the compensation of the executives of the Company.

 

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5.             Annual
Incentive Bonus. In addition to the Executive’s base salary as provided above, the Executive will be eligible for
an annual cash incentive bonus for each calendar year of the Employment Period. The bonus for which the Executive is eligible for
each such year will be based on a target percentage of the then current base salary, which target percentage shall be at least
50% of Executive’s then current base salary. The determination of the amount of the annual cash incentive bonus will be based
upon the satisfaction of performance criteria established by the Compensation Committee in its discretion and upon consultation
with the Executive at the beginning of each year and subject to the approval of the Board. Depending on the Executives performance
against the performance criteria, the actual annual cash incentive bonus may be more, equal to or less than the target. Such performance
criteria will include corporate performance goals consistent with the Company’s business plan for the year, as well as individual
objectives for the Executive’s performance that may be separate from, but are consistent with, the Company’s business
plan. The final determinations as to the actual corporate and individual performance against the pre-established goals and objectives,
and the amount of the bonus payout in relationship to such performance, will be made by the Compensation Committee in its sole
discretion. To the extent the Company awards the Executive a cash bonus, the bonus, if payable, shall be calculated and paid no
later than two and a half months following the later of the close of the calendar or Company fiscal year to which such bonus relates.

 

6.             Executive
Benefits. The Executive shall be entitled to receive employment benefits in accordance with the Company’s benefit
policies in effect for senior executives employed in the United Kingdom from time to time, including, without limitation, personal
pension plan, private medical, dental and life insurance, accidental death, travel accident, long term disability insurance, profit
sharing and long term incentive plans, 25 working days of paid vacation and 10 days of UK public holidays annually, as established
from time to time by the Company.

 

7.             Expenses.
The Company shall reimburse the Executive for all reasonable and necessary expenses incurred by him in connection with the performance
of his services for the Company upon submission of expense reports and documentation in accordance with the Company’s policies.
The Company may request additional documentation or a further explanation to substantiate any expense submitted for reimbursement,
and retains the discretion to approve or deny a request for reimbursement.

 

8.             Indemnification.
The Company shall indemnify the Executive in accordance with the Company’s By-laws. The Company agrees that it will make
all commercially reasonable efforts to keep in full force and effect, for the duration of all applicable statute of limitations
periods, directors and officers liability insurance policies on terms at least as favorable to the Executive as those in effect
on the date hereof.

 

9.             Termination.
This Agreement does not grant the Executive any right or entitlement to be retained by the Company. In the event of termination
by the Company of the Executive’s employment under the circumstances described below in this Section 9, the Executive
shall be entitled to the severance pay and benefits so specified.

 

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(a)           Certain
Definitions. For purposes of this Section 9, the following terms shall have the meanings given below:

 

(i)            Termination
For Cause. The employment of the Executive hereunder shall be deemed to have been terminated “For Cause” if the
Company shall have terminated the Executive as a result of any of the following: (A) any act committed by the Executive which shall
represent a breach in any material respect of any of the terms of this Agreement and which breach is not cured within thirty (30)
days of receipt by the Executive of written notice from the Company of such breach; (B) improper conduct, consisting of any willful
act or omission with the intent of obtaining, to the material detriment of the Company, any benefit to which the Executive would
not otherwise be entitled; (C) gross negligence, consisting of wanton and reckless acts or omissions in the performance of the
Executive’s duties to the material detriment of the Company; (D) addiction to drugs or chronic alcoholism or (E) any conviction
of, or plea of nolo contendere to, a crime (other than a traffic violation) under the laws of the United States, the United Kingdom,
or any of their respective political subdivisions, provided that the Executive receives a copy of a resolution duly adopted by
a two thirds majority affirmative vote of the membership of the Board excluding the Executive, at a meeting of the Board called
and held for such purpose after the Executive has been given reasonable notice of such meeting and has been given an opportunity,
together with his counsel, to be heard by the Board, finding that in the good faith opinion of the Board the Executive was guilty
of the conduct set forth and specifying the particulars thereof in detail.

 

(ii)           Termination
Without Cause. The employment of the Executive hereunder shall be deemed to have been terminated “Without Cause”
upon (A) termination of employment by the Company for any reason other than the reasons specified in Section 9(a)(i) hereof
as termination “For Cause” or the reasons specified in Section 9(a)(iii) hereof as termination because of the
Executive’s Death or Disability, (B) termination of employment by the Company by virtue of the expiry of the Employment Period
on 1 January 2019 (or any specific extension thereof), unless the Company has offered in writing to renew the Executive’s
employment after the expiry of the Employment Period on terms no less favorable than those provided in this Agreement (in which
case if the Executive does not accept renewal of his employment, the termination of his employment by virtue of expiry of the Employment
Term will be deemed a resignation by the Executive), or (C) termination of employment by the Executive within thirty (30) days
following a “Constructive Termination” event. For purposes hereof, the following shall constitute Constructive Termination
events: (1) any removal of the Executive from the position of Executive Vice President, Finance,
Chief Financial Officer and Chief Operating Officer, (2) any material reduction of the Executive’s duties, responsibilities
or authority, including any change in the Executive’s positions as Executive Vice President,
Finance, Chief Financial Officer and Chief Operating Officer that results in such a reduction, (3) a material reduction
by the Company in the Executive’s base salary in effect on the date hereof or as may be increased from time to time except
if the Board in response to exceptional adverse business circumstances makes a general temporary reduction in the compensation
of the executives of the Company, (4) the Company’s requiring the Executive without the Executive’s express written
consent to be based anywhere other than within 50 miles of the Executive’s present office location in the United Kingdom,
except for required travel on the Company’s business to an extent substantially consistent with the Executive’s present
business travel obligations, or (5) a material breach of this Agreement by the Company.

 

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The foregoing shall
be treated as Constructive Termination events hereunder following the expiration of 30 days from the date the Executive has notified
Company (within 90 days) of the occurrence of such event and the Executive’s intention to treat such event as a constructive
termination and terminate the Executive’s employment on the basis thereof, provided that Company has not cured the constructive
termination event before the expiration of such 30-day period. The Executive’s termination will be effective upon the expiration
of the 30-day period.

 

(iii)          Disability.
The Executive shall be treated as having suffered a “Disability” if the Executive is prevented from performing his
duties hereunder by reason of illness or injury for a period of either (A) six or more consecutive months from the First Date of
Disability (as defined below) or (B) eight months in the aggregate during any 12-month period. The date as of which the Executive
is first absent from employment as a result of such illness or injury shall be referred to herein as the “First Date of Disability”.

 

(iv)          Change
in Control. A “Change in Control” shall be deemed to have taken place if:

 

(A)         there
shall be consummated any consolidation or merger of the Company in which Company is not the continuing or surviving corporation
or pursuant to any transaction in which shares of the Company’s capital stock are converted into cash, securities or other
property, or any sale, lease, exchange or other transfer in one transaction or a series of transactions contemplated or arranged
by any party as a single plan of all or substantially all of the assets of the Company, or the approval of a plan of complete liquidation
or dissolution of the Company adopted by the stockholders of the Company; or

 

(B)         any
person (as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) shall after the date hereof become the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act),
directly or indirectly, of securities of the Company representing 35% or more of the voting power of all then outstanding securities
of the Company having the right under ordinary circumstances to vote in an election of the Board (including, without limitation,
any securities of the Company that any such person has the right to acquire pursuant to any agreement, or upon exercise of conversion
rights, warrants or options, or otherwise, shall be deemed beneficially owned by such person); or

 

(C)         individuals
who at the date hereof constitute the entire Board and any new directors whose election by the Board, or whose nomination for election
by the Company’s stockholders, shall have been approved by a vote of at least a majority of the directors then in office
who either were directors at the date hereof or whose election or nomination for election shall have been so approved (the “Continuing
Directors”) shall cease for any reason to constitute a majority of the members of the Board; and

 

provided further
that in each of the foregoing cases, the Change of Control also meets all of the requirements of a “change in the ownership
of a corporation” within the meaning of Treasury Regulation §1.409A-3(i)(5)(v), a “change in the effective control
of a corporation” within the meaning of Treasury Regulation §1.409A-3(i)(5)(vi) or a “a change in the ownership
of a substantial portion of the corporation’s assets” within in the meaning of Treasury Regulation §1.409A-3(i)(5)(vii).

 

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(b)           Termination
Without Cause. In the event of termination of the Executive’s employment hereunder by Company “Without Cause”
(other than for a Termination for a Change of Control hereinafter separately provided for) the Executive shall be entitled to the
following severance pay and benefits:

 

(i)            Severance
Pay - severance payments in the form of continuation of the Executive’s base salary as in effect immediately prior to
such termination for a period of twelve (12) months following the effective date of such termination;

 

(ii)           Benefits
Continuation – continued coverage under the Company’s private medical care and life insurance benefit plans in
which the Executive is participating at the time of termination, or equivalent coverage thereof, on the same terms as applicable
to other executive employees of the Company from time to time, over the same period with respect to which the Executive’s
base salary is continued as provided in Section 9(b)(i) hereof; provided, however, that the Company’s
obligation to provide such coverages shall be terminated if the Executive obtains substitute coverage from another employer of
the Executive at any time during the continuation period; the Executive shall be obligated to notify the Company of any such substitute
coverage and the date of commencement thereof promptly upon obtaining any such coverage; and

 

(iii)          Stock
Options - all options to purchase shares of the Company’s common stock held by the Executive and which are vested immediately
prior to termination of employment shall become exercisable for a period of six months following the effective date of termination
of employment.

 

(c)           Termination
following Change in Control. In the event of termination of the Executive’s employment within six months following a
Change of Control the Executive shall be entitled to the following severance pay and benefits:

 

(i)            Severance
Pay - Severance payments in the form of continuation as the Executive’s base salary as in effect immediately prior to
such termination for a period of twelve (12) months following the effective date of termination;

 

(ii)           Benefits
Continuation – continued coverage under the Company’s private medical care and life insurance benefit plans in
which the Executive is participating at the time of termination, or equivalent coverage thereof, on the same terms as applicable
to other executive employees of the Company from time to time, over the same period with respect to which the Executive’s
base salary is continued as provided in Section 9(c)(i) hereof; provided, however, that the Company’s
obligation to provide such coverages shall be terminated if the Executive obtains substitute coverage from another employer of
the Executive at any time during the continuation period; the Executive shall be obligated to notify the Company of any such substitute
coverage and the date of commencement thereof promptly upon obtaining any such coverage; and

 

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(iii)          Stock
Options - all options to purchase shares of the Company’s common stock held by the Executive shall be vested and be exercisable
for a period of 18 months following the effective date of termination.

 

(iv)          280G
Excise Tax - it is the intention of Executive and the Company that no payments made or benefits provided by the Company to
or for the benefit of Executive under this Agreement or any other agreement or plan pursuant to which Executive is entitled to
receive payments or benefits shall be subject to the excise tax imposed on the Executive by Section 4999 of the Code (the “280G
Excise Tax”), relating to golden parachute payments. The Company agrees that in the event any payments to Executive pursuant
to this Agreement would result in a payment to Executive that would trigger any 280G Excise Tax, if appropriate and permissible,
the Company shall submit to its stockholders for approval the transaction that may result in the imposition of the 280G Excise
Tax upon Executive in accordance with the regulations of the Internal Revenue Code governing shareholder approval of transactions
giving rise to 280G Excise Tax liability.

 

(d)           Termination
Upon Disability or Death. In the event of termination of the Executive’s employment hereunder on account of the Executive’s
“Disability” or death, the Executive or the Executive’s heirs, estate or personal representatives under law,
as applicable, shall be entitled to the following severance pay and benefits:

 

(i)            Severance
Pay - severance payments in the form of continuation of the Executive’s base salary as in effect immediately prior to
such termination for a period of 12 months following the First Date of Disability, reduced by the amounts of any payments received
from any long-term disability plan of the Company;

 

(ii)            Benefits
Continuation - the same benefits as provided in Section 9(c)(ii) above, to be provided during the Employment Period
while the Executive is suffering from Disability and for a period of twelve (12) months following the effective date of termination
of employment by reason of Disability; and

 

(iii)          Stock
Options - all options to purchase shares of the Company’s common stock held by the Executive which are exercisable immediately
prior to termination of employment shall remain exercisable for a period of twelve (12) months following the effective date of
termination of employment.

 

(e)           Other
Terminations. In the event of termination of the Executive’s employment hereunder for any reason other than those specified
in subsections (b) through (d) of this Section 9, the Executive shall not be entitled to any severance pay, benefits continuation
or stock option rights contemplated by the foregoing provisions of this Section 9, except as otherwise provided in the applicable
benefit plans of the Company that cover the Executive.

 

(f)            Accrued
Rights. Notwithstanding the foregoing provisions of this Section 9, in the event of termination of the Executive’s
employment hereunder for any reason, the Executive shall be entitled to payment of any unpaid portion of his base salary, computed
on a pro-rata basis through the effective date of termination, and payment of any accrued but unpaid rights in accordance with
the terms of any incentive bonus or employee benefit plan or program of the Company.

 

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(g)           Conditions
to Severance Benefits. (i) As conditions of the Executive’s entitlement and continued entitlement to the severance payments
and benefits provided by this Section 9, the Executive is required to (i) honor in accordance with their terms the provisions
of Sections 10, 11 and 12 hereof and (ii) execute and honor the terms of a waiver and release of claims against the Company
substantially in the form attached hereto as Exhibit A (as may be modified consistent with the purposes of such waiver and
release to reflect changes in law following the date hereof) and compromise agreement in the form attached hereto as Exhibit
B (as may be modified consistent with the purposes of such compromise agreement to reflect changes in law following the date
hereof). The parties hereto agree that the Executive is under no affirmative obligation to seek to mitigate or offset the severance
payments and benefits provided by this Section 9.

 

(ii)           For
purposes only of this Section, the Executive shall be treated as having failed to honor the provisions of Sections 10, 11 or
12 hereof only upon the passing of a resolution by a majority of the Board making such a determination following notice of
the alleged failure by Company to the Executive, an opportunity for the Executive to cure the alleged failure for a period of thirty
(30) days from the date of such notice and the Executive’s opportunity to be heard on the issue by the Board.

 

(iii)           Stock
Options - Notwithstanding any other provisions of this Agreement to the contrary, in the event that the Executive continues
to serve as a member of the Board following his termination of employment from Company, his rights with respect to the vesting
and exercisability of the options shall continue in the same manner as other non-executive members of the Board.

 

10.           Confidentiality.
The Executive agrees that he will not at any time during the term hereof or thereafter for any reason, in any fashion, form or
manner, either directly or indirectly, divulge, disclose or communicate to any person, firm, corporation or other business entity,
in any manner whatsoever, any confidential information or trade secrets concerning the business of the Company (including the business
of any unit thereof), including, without limiting the generality of the foregoing, the names of any of its customers, the prices
at which it obtains or has obtained any products or services, the techniques, methods or systems of its operation or management,
any customer proposals or other business opportunities, any information regarding its financial matters, or any other material
information concerning the business of the Company, its manner of operation, its plans or other material data. The provisions of
this paragraph shall not apply to (i) information disclosed in the performance of the Executive’s duties to the Company based
on his good faith belief that such a disclosure is in the best interests of the Company; (ii) information that is public knowledge;
(iii) information disseminated by the Company to others in the ordinary course of the Company’s business, in order to further
such business, provided the recipient of such information agrees to be subject to a confidentiality obligation at least comparable
to that herein; (iv) information or knowledge lawfully received by the Executive from a third party who, based upon due inquiry
by the Executive, is not bound by a confidential relationship to the Company; or (v) information disclosed under a requirement
of law or as directed by applicable legal authority having jurisdiction over the Executive.

 

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11.           Inventions.
(i) To the extent that any of the Company’s current or future products or services relate to, embody or incorporate concepts,
technology or products of any kind relevant to the Company or its subsidiaries or affiliates that the Executive directly or indirectly
conceived or developed prior to the date hereof during the period of his employment by Company (“Prior Technology”),
the Executive assigns in perpetuity to Company any and all of his rights, title and interests, if any, to utilize, without any
cost to the Company, such Prior Technology, and the Executive agrees to assist Company in taking all action that may be reasonably
required, at the Company’s expense, to secure for the Company the benefits of the Executive’s ownership or rights,
if any, to use all such Prior Technology.

 

(ii)            The
Executive is hereby retained in a capacity such that the Executive’s responsibilities include the making of technical, managerial
and promotional contributions of value to the Company. The Executive hereby assigns to Company all rights, title and interest in
such contributions and inventions made or conceived by the Executive alone or jointly with others which relate to the business
of the Company. This assignment shall include (a) the right to file and prosecute patent applications on such inventions in any
and all countries, (b) the patent applications filed and patents issuing thereon, and (c) the right to obtain copyright, trademark
or trade name protection for any such work product. The Executive shall promptly and fully disclose all such contributions and
inventions to the Company and assist the Company in obtaining and protecting the rights therein (including patents thereon), in
any and all countries; provided, however, that said contributions and inventions will be the property of the Company, whether or
not patented or registered for copyright, trademark or trade name protection, as the case may be. Inventions conceived by the Executive
which are not related to the business of the Company (as determined in good faith by the Board), will remain the property of the
Executive.

 

12.           Non-Competition.
(i) the Executive agrees that he shall not during the Employment Period and for a period of one year after the termination or end
thereof for any reason, without the approval of the Board which, after the end of the Employment Period, shall not unreasonably
be withheld or delayed, directly or indirectly, alone or as partner, joint venturer, officer, director, employee, consultant, agent,
independent contractor or controlling stockholder (other than as provided below) of any Company or business, engage in any “Competitive
Business” within the United States or within the United Kingdom and which directly competes with the business of the Company
and/or Cyclacel Limited. For purposes of the foregoing, the term “Competitive Business” shall mean any business involved
in the research, development, or sale of anticancer targeted therapeutics that are nucleoside analogues, CDK inhibitors or Aurora/VEGFR2
inhibitors and/or medicines for the treatment of radiation dermatitis or xerostomia or any other business in which the Company
has been engaged up to and until the relevant time (as determined by the Board of Directors); provided that, this provision shall
in no way prevent the Executive, after the end of the Employment Period, from being employed as a consultant.

 

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(ii)            Notwithstanding
the provisions of clause (i) above or any other provision of this Agreement to the contrary, the Executive shall not be prohibited
during the period applicable under clause (i) above from acting as a passive investor where (a) in the case of a Competitive Business
being a public corporation, the Executive owns not more than five percent (5%) of the issued and outstanding capital stock or such
higher percentage or amount as may be approved by the Board upon notice from the Executive prior to obtaining such interest; provided,
however, that the Executive shall not be treated as having violated the provisions of this Section 12 if in good faith
he is unaware that an entity in which he has an investment interest would be treated as a Competitive Business and, upon becoming
aware of such involvement, the Executive makes reasonable efforts to divest himself of his interest in such business; (b) in the
case of any employer or entity other than a Competitive Business that is engaged in, or whose affiliates are engaged in, the development
or marketing of products or technologies that are directly or indirectly competitive with any product or technology that is developed
or marketed or proposed to be developed or marketed by Company during the Employment Period, the Executive owns not more than five
percent (5%) of the issued and outstanding capital stock; or (c) receiving stock, options or warrants from any entity with which
the Executive can have a relationship pursuant to clause (i) above as part of the Executive’s compensation for services rendered
or to be rendered.

 

13.           Breach
of Restrictive Covenants. The parties agree that a breach or violation of Sections 10, 11 or 12 hereof will result
in immediate and irreparable injury and harm to the innocent party, who shall have, in addition to any and all remedies of law
and other consequences under this Agreement, the right to an injunction, specific performance or other equitable relief to prevent
the violation of the obligations hereunder.

 

14.           Non-Disparagement.
The Executive agrees that he will not, whether during his provision of services to the Company or thereafter, directly or indirectly,
make, cause to be made, or ratify any statement, public or private, oral or written, to any person that disparages, either professionally
or personally, the Company or any of its affiliates, past and present, and each of them, as well as its and their trustees, directors,
officers, agents, attorneys, insurers, employees, stockholders, representatives, assigns, and successors, past and present, and
each of them.

 

15.           Notices.
Any notice required to be given pursuant to the provisions of this Agreement shall be in writing and, if mailed, sent by registered
mail, postage prepaid, to the party named at the address set forth below, or at such other address as each party may hereafter
designate in writing to the other party:

 

		Company:	200 Connell Drive #1500

Berkeley Heights, NJ 07922

Attention: Chairman of the Board

 

with a copy to (which copy will
not constitute notice):

Mintz Levin Cohn Ferris Glovsky & Popeo, P.C.

666 Third Avenue

New York, New York 10017

Attention: Joel Papernik, Esq.

 

		Executive:	c/o Cyclacel Pharmaceuticals, Inc.

200 Connell Drive #1500

Berkeley Heights, NJ 07922

 

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Any such notices shall be deemed to have
been delivered when served personally in the manner specified above.

 

16.           Dispute
Resolution. The parties shall waive trial by jury in any dispute between them.

 

17.           Entire
Agreement. (a) Change, Modification, Waiver. No change or modification of this Agreement shall be valid unless it
is in writing and signed by each of the parties hereto. No waiver of any provision of this Agreement shall be valid unless it is
in writing and signed by the party against whom the waiver is sought to be enforced. The failure of a party to insist upon strict
performance of any provision of this Agreement in any one or more instances shall not be construed as a waiver or relinquishment
of the right to insist upon strict compliance with such provision in the future.

 

(b)            Integration
of All Agreements. This Agreement constitutes the entire Agreement between the parties and is intended to be an integration
of all agreements between the parties with respect to the Executive’s service with Company. Except as provided in Section
8 hereof concerning the Indemnification Agreement, any and all prior agreements between the Executive and the Company with
respect to the Executive’s service with the Company are hereby revoked.

 

(c)            Severability
of Provisions. If for any reason any provision of this Agreement should be declared void or invalid, such declaration shall
not affect the validity of the rest of this Agreement, which shall remain in force as if executed with the void or invalid provision
eliminated.

 

18.           Binding
Effect. This Agreement shall be binding upon all parties hereto and their heirs, successors and assigns. This Agreement
shall be assignable by Company to any entity acquiring all or substantially all of the assets of the Company.

 

19.           Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey, except that,
and only to the extent applicable, England law shall govern the working conditions and the like.

 

20.           Miscellaneous.
(a) Form. As employed in this Agreement, the singular form shall include, if appropriate, the plural.

 

(b)           Headings.
The headings employed in this Agreement are solely for the convenience and reference of the parties and are not intended to be
descriptive of the entire contents of any paragraph and shall not limit or otherwise affect any of terms, provisions, or construction
thereof.

 

    	 	11	 

     

    

 

(c)            Modifications.
Notwithstanding any other provision with respect to the timing of payments under this Agreement, if, at the time of Executive’s
expiration of the Employment Period, the non-renewal of the Executive’s employment is deemed to be dismissal or termination
(within the meaning of the UK law or any other applicable law), limited only to the extent necessary to comply with the requirements
of the UK law, any payment to which Executive may become entitled under the UK law will be withheld, but no later than the first
(1st) business day of the 11th week following the expiration of the Employment Period, at which time the parties to this Agreement
will be negotiate in good faith a mechanism effective under the UK law to carry out the intent and purpose of this Agreement.

 

21.           Additional
Terms of Statement of Main Terms and Conditions of Employment. The parties shall execute and deliver a Statement of Main
Terms and Conditions of Employment as required by UK law and conforming, to the extent practicable, with the terms and conditions
of the foregoing .

 

[signature page follows]

 

    	 	12	 

     

    

 

IN WITNESS WHEREOF,
this Agreement is executed as of the date first above written.

 

	 	Cyclacel Pharmaceuticals, Inc.:
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 
	 	Paul McBarron:
	 	 	 
	 	 	 

 

    	 	13	 

     

    

 

EXECUTION COPY

 

Exhibit A

 

Waiver and Release

 

1.            Your
Release of Claims. You hereby agree and acknowledge that by signing this Agreement, and for other good and valuable consideration,
you are waiving your right to assert any and all forms of legal claims against the Company1/ of any kind whatsoever,
whether known or unknown, arising from the beginning of time through the date you execute this Agreement (the “Execution
Date”). Except as set forth below, your waiver and release herein is intended to bar any form of legal claim, complaint or
any other form of action (jointly referred to as “Claims”) against the Company seeking any form of relief including,
without limitation, equitable relief (whether declaratory, injunctive or otherwise), the recovery of any damages, or any other
form of monetary recovery whatsoever (including, without limitation, back pay, front pay, compensatory damages, emotional distress
damages, punitive damages, attorneys fees and any other costs) against the Company, for any alleged action, inaction or circumstance
existing or arising through the Execution Date.

 

Without limiting the foregoing general waiver
and release, you specifically waive and release the Company from any Claim arising from or related to your prior employment relationship
with the Company or the termination thereof, including, without limitation:

 

		**	Claims under any state or federal discrimination, fair employment practices or other employment related statute, regulation
or executive order (as they may have been amended through the Execution Date) prohibiting discrimination or harassment based upon
any protected status including, without limitation, race, national origin, age, gender, marital status, disability, veteran status
or sexual orientation. Without limitation, specifically included in this paragraph are any Claims arising under the Age Discrimination
in Employment Act, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans With Disabilities Act
and any similar Federal and state statute.

 

		**	Claims under any other state or federal employment related statute, regulation or executive order (as they may have been amended
through the Execution Date) relating to wages, hours or any other terms and conditions of employment.

 

		**	Claims under any state or federal common law theory including, without limitation, wrongful discharge, breach of express or
implied contract, promissory estoppel, unjust enrichment, breach of a covenant of good faith and fair dealing, violation of public
policy, defamation, interference with contractual relations, intentional or negligent infliction of emotional distress, invasion
of privacy, misrepresentation, deceit, fraud or negligence.

 

		**	Any other Claim arising under state or federal law.

 

 

 

		1/	For purposes of this Agreement, the Company includes the Company and any of its divisions, affiliates
(which means all persons and entities directly or indirectly controlling, controlled by or under common control with the Company),
subsidiaries and all other related entities, and its and their directors, officers, employees, trustees, agents, successors and
assigns.

 

    	 	A-1	 

     

    

  

Notwithstanding the foregoing, nothing contained
in this Release constitutes a waiver of any Claims you may have against the Company arising from or related to the Indemnification
Agreement and By-laws provisions referenced in Section 8 of the Employment Agreement, dated January 1, 2014, entered into between
you and the Company.

 

You acknowledge and agree that, but for
providing this waiver and release, you would not be receiving the economic benefits being provided to you under the terms of this
Agreement.

 

It is the Company’s desire and
intent to make certain that you fully understand the provisions and effects of this Agreement. To that end, you have been encouraged
and given the opportunity to consult with legal counsel for the purpose of reviewing the terms of this Agreement. Also, because
you are over the age of 40 and consistent with the provisions of the Age Discrimination in Employment Act (“ADEA”),
which prohibits discrimination on the basis of age, the Company is providing you with twenty-one (21) days in which to consider
and accept the terms of this Agreement by signing below and returning it to me at: [name], [address].

 

You may rescind your assent to this Agreement
if, within seven (7) days after you sign this Agreement, you deliver by hand or send by mail (certified, return receipt and postmarked
within such 7 day period) a notice of rescission to me at the Company. The eighth day following your signing of this Agreement
is the Effective Date.

 

Also, consistent with the provisions of
Federal and state discrimination laws, nothing in this release shall be deemed to prohibit you from challenging the validity of
this release under such discrimination laws (the “ Discrimination Laws”) or from filing a charge or complaint of age
or other employment related discrimination with the Equal Employment Opportunity Commission (“EEOC”) or state equivalent,
or from participating in any investigation or proceeding conducted by the EEOC or state equivalent. Further, nothing in this release
or Agreement shall be deemed to limit the Company’s right to seek immediate dismissal of such charge or complaint on the
basis that your signing of this Agreement constitutes a full release of any individual rights under the Discrimination Laws, or
to seek restitution to the extent permitted by law of the economic benefits provided to you under this Agreement in the event that
you successfully challenge the validity of this release and prevail in any claim under the Discrimination Laws.

 

	 	By: 	 
	 	 	Paul McBarron

 

	 	Date signed: 	 

 

    	 	A-2	 

     

    

 

Exhibit B

 

Compromise Agreement

 

COMPROMISE
AGREEMENT

 

THIS COMPROMISE AGREEMENT (the “Agreement”)
is made as of [•] by and between Cyclacel Pharmaceuticals,
Inc. (the “Employer”) and Paul McBarron (the “Executive”).

 

WHEREAS, the Employer has employed the
Executive as Executive Vice President, Finance, Chief Financial Officer, Chief Operating Officer and Secretary since [•];
and

 

WHEREAS, the Executive may have certain
claims against the Employer in respect of the Executive’s employment during the period of the Executive’s employment
with the Employer and up to the date of signing of this Agreement by the parties, and

 

WHEREAS, without admitting the validity
of all or any of these claims, the Employer wishes to settle with the Executive;

 

NOW THEREFORE THE PARTIES AGREE AS FOLLOWS:-

 

		1.	Claims against the Employer

 

		a.	The Executive asserts that the Executive may have the following
particular claims (the “Asserted Claims”), and no other claims, against the Employer, its directors, officers
or employees, or against any associated company or person, or any affiliates of the Employer (collectively, the “Affiliates”)
arising from the Executive’s employment with the Employer or the termination thereof:

 

		i.	Any claim for damages for breach of contract for notice
or pay in lieu of notice;

 

		ii.	Any claim for holiday pay; or payment of an accrued untaken
holiday entitlement;

 

		iii.	Any claim for outstanding pay, overtime, expenses, ex-gratia
or discretionary payments, use of Company vehicle, Directors’ fees, bonuses or commission and also including a claim under
the Equal Pay Act 1970 or Article 119 of the Treaty of Rome (as amended by the Treaty of Amsterdam);

 

		iv.	A claim by the Executive for breach of contract by the
Employer;

 

		v.	Any claim for unfair dismissal; or unfair constructive
dismissal;

 

		vi.	Any claim for unlawful deduction from wages under Part
II of the Employment Rights Act 1996;

 

    	 	B-1	 

     

    

 

		vii.	Any claim for redundancy payment whether statutory or otherwise;

 

		viii.	Any claim for a failure to follow the statutory dispute
resolution procedures under the Employment Act 2002 and the Employment Act 2002 (Dispute Resolution) Regulations 2004;

 

		ix.	Any claim for breach of the Working Time Regulations 1998
including non-payment of holiday pay;

 

		x.	Any claim for failure to give a Statement of Main Terms
and Conditions of Employment or dispute resolution procedures in terms of Part I of the Employment Rights Act 1996;

 

		b.	The Executive confirms that the Executive’s only
claims or complaints against the Employer or Affiliates are the Asserted Claims and that the Executive is aware of no other claim
or grounds to make a claim against the Employer or Affiliates in relation to any other matters howsoever arising.

 

		c.	The Executive accepts the terms of this Agreement in full
and final settlement of the Asserted Claims and all other claims, complaints, costs, expenses or rights of action of any kind,
present, future or contingent, which the Executive may have against the Employer or Affiliates, whether under statute, contract
or at common law or under legislation or directives of the European Union, arising from the Executive’s employment with
the Employer or the termination thereof, including, but not limited to:

 

		i.	Any claim for sex discrimination or victimisation, or harassment
under the Sex Discrimination Act 1975;

 

		ii.	Any claim for race discrimination or victimisation, or
harassment under the Race Relations Act 1976;

 

		iii.	Any claim for disability discrimination or victimisation
or harassment under the Disability Discrimination Act 1995;

 

		iv.	Any claim for discrimination, victimisation or harassment
under the Employment Equality (Sexual Orientation) Regulations 2003;

 

		v.	Any claim for discrimination, victimisation or harassment
under the Employment Equality (Religion or Belief) Regulations 2003;

 

		vi.	Any claim for discrimination, victimisation or harassment
under the Employment Equality (Age) Regulations 2006;

 

    	 	B-2	 

     

    

 

		vii.	Any claim for less favourable treatment, detriment, unfair
dismissal or victimisation under the Part Time Workers (Prevention of Less Favourable Treatment) Regulations 2000;

 

		viii.	Any claim for less favourable treatment, detriment, unfair
dismissal or victimisation under the Fixed Term Executives (Prevention of Less Favourable Treatment) Regulations 2002;

 

		ix.	Any claim under the National Minimum Wage Act 1998;

 

		x.	Any claim in relation to trade union membership, unfair
dismissal or detriment on the grounds they are a trade union member under the Trade Union and Labour Relations (Consolidation)
Act 1992;

 

		xi.	Any claim for a protective award under Trade Union and
Labour Relations (Consolidation) Act 1992;

 

		xii.	Any claim for harassment under the Protection from Harassment
Act 1997;

 

		xiii.	Any claim under Part VII of the Transnational Information
and Consultation of Executives Regulations 1999;

 

		xiv.	Any claim for compensation under the Data Protection Act
1998;

 

		xv.	Any claim under Part VIII of the Information and Consultation
of Executives Regulations 2004;

 

		xvi.	Any claim for a protective award under the Transfer of
Undertakings (Protection of Employment) Regulations 2006;

 

		xvii.	Any claim for a guarantee payment in terms of Part III
of the Employment Rights Act 1996;

 

		xviii.	Any claim by the Executive that they have suffered a detriment
on the grounds of provisions relating to:

 

		(a)	health and safety;

 

		(b)	Sunday working;

 

		(c)	the Working Time Regulations 1998;

 

		(d)	undertaking duties of an Occupational Pension Scheme Trustee;

 

		(e)	undertaking duties as an Executive representative;

 

		(f)	time off work for study or training;

 

		(g)	protected disclosures;

 

		(h)	family leave;

 

		(i)	dependant leave;

 

		(j)	flexible working;

 

    	 	B-3	 

     

    

  

		(k)	enforcing or securing the benefit of or right conferred
under the Tax Credits Act 2002.

 

all in terms of Sections 44
to 48 of the Employment Rights Act 1996;

 

		xix.	Any claim for compensation under Section 80H of the Employment
Rights Act 1996 (flexible working), but excluding any claims in relation to accrued pension rights or any claims for damages for
personal injuries, in respect of the latter of which the Executive warrants that the Executive is not aware of any such claims.

 

		d.	The Executive warrants that, at the date of this Agreement,
the Executive has not issued any proceedings against the Employer or Affiliates, whether in an Employment Tribunal or otherwise,
and agrees to withdraw any such proceedings instituted on their behalf.

 

		e.	If the waiver of the Asserted Claims or any other
claims contained in this Clause is judged to be void or unenforceable, but would be valid if any one or more of the waivers were
reduced, the waiver(s) shall be deemed to apply with such modification(s) as may be necessary to make them valid and effective.
Any such modification of any one waiver of a claim shall not affect the validity of any other waiver of claim contained in this
contract.

 

		2.	Executive warranties

 

		a.	The Executive warrants that he is not aware of any matters
relating his employment which if disclosed to the Employer might affect the Employer’s decision to enter into this Agreement.

 

		b.	The Executive warrants that the Executive has complied
with all of his obligations to the Employer and have not done or failed to do anything which would have allowed the Employer to
terminate the Executive employment with immediate effect.

 

		3.	Legal Advice

 

		a.	The Executive warrants to the Employer that before signing
this Agreement the Executive received independent legal advice from [                                            ]
Solicitor, [                                                      ]
a qualified lawyer (“The Advisor”), as to the terms and effects of this Agreement, and, in particular, its effect
on the Executive’s ability to pursue the Executive’s rights before an Employment Tribunal or a Court. The Advisor
has in force a Policy of Insurance covering the risk of a claim by the Executive in respect of any loss arising in consequence
of the said legal advice.

 

    	 	B-4	 

     

    

 

		b.	The Executive warrants to the Employer that the Executive
has provided the Advisor with all available information which the Advisor requires or may require to advise whether the Executive
has any claims, and in particular any of the claims listed in Clause 1 of this Agreement, against the Employer or Affiliates.

 

		c.	The Executive warrants to the Employer that the Advisor
has advised the Executive that on the basis of the information available to the Advisor the Executive’s only claims or particular
complaints against the Employer or Affiliates are the Asserted Claims and that he has no other claim against the Employer whether
statutory or otherwise.

 

		4.	Compliance with statutory provisions

 

		a.	The Executive declares and acknowledges that the Executive
has carefully read and fully understands all of the provisions of this Agreement and voluntarily agrees to and intends to be legally
bound by all its terms and in particular the Executive acknowledges that this Agreement is a Compromise Agreement within the meaning
of s.203(2)(f) of the Employment Rights Act 1996 and that by entering into this Agreement the Executive has agreed not to institute
or continue any proceedings before an Employment Tribunal or the Courts arising out of the termination of the Executive’s
employment.

 

		b.	The Employer and the Executive agree and acknowledge that
the conditions regulating Compromise Agreements under Section 203(3) of the Employment Rights Act 1996, Section 288 of the Trade
Union and Labour Relations (Consolidation) Act 1992; Section 77(4A) of the Sex Discrimination Act 1975; Section 72(4A) of the
Race Relations Act 1976; Schedule 3A of the Disability Discrimination Act 1995 and Regulation 35(3) of the Working Time Regulations
1998, Section 49 of the National Minimum Wage Act 1998, Regulation 10 of the Fixed Term Executives (Prevention of less favourable
Treatment) Regulations 2002; Regulation 9 of the Part Time Workers (Prevention of Less favourable Treatment) Regulations 2000,
Schedule 4 of the Employment Equality (Religion or Belief) Regulations 2003, Schedule 4 of the Employment Equality (Sexual Orientation)
Regulations 2003; Schedule 5 of the Employment Equality (Age) Regulations 2006; Regulation 40 of the Information and Consultation
of Executives Regulations 2004; and Regulation 41 of the Transnational information and Consultation of Executives Regulations
1998 all as maybe re-enacted or amended are intended to be and have been satisfied and that the Executive has intimated the foregoing
claims.

 

IN WITNESS
WHEREOF these presents consisting of this and the [        ] preceding pages are executed
as follows:

 

    	 	B-5	 

     

    

 

They
are subscribed for and on behalf of the Employer at [            
 ] on the
                     day
of [           ] 20__ the presence of the following witness by:-

 

		 
	(Witness)	 
	 	 
	 	(Authorised Signatory)
	 	 
	(Full Name)	 
	 	 
	(Address)	 
	 	 
	 	 
	 	 
	(Occupation)	 
	 	 
	They
    are subscribed by the Executive at [      ] on the                  
    day of [       ] 20__ in the presence of the following witness:-
		 
	 	 
	(Witness)	 
	 	 
	 	[Executive’s name]
	 	 
	(Full Name)	 
	 	 
	(Address)	 
	 	 
	 	 
	 	 
	(Occupation)	 

 

    	 	B-6	 

     

    

 

 

		22.	Solicitor’s Certificate
under Section 203 of the Employment Rights Act 1996

 

I, [                               ]
hereby certify as follows:-

 

		1.	I am a solicitor holding a current Practising Certificate.

 

		2.	I have advised [       Executive              ]
of the terms and effects of the attached Agreement and in particular its effect on the Executive’s ability to pursue a claim
to an Employment Tribunal and/or the Courts following its signing.

 

		3.	I am not acting and have not acted in relation to this
matter for [              employer                        ]

 

		4.	There is in force a policy of insurance covering the risk
of a claim by the Executive in respect of loss arising in consequence of the advice I have given.

 

		5.	The conditions regulating Compromise Agreements under Section
203(3) of the Employment Rights Act 1996, Section 288 of the Trade Union and Labour Relations (Consolidation) Act 1992; Section
77(4A) of the Sex Discrimination Act 1975; Section 72(4A) of the Race Relations Act 1976; Schedule 3A of the Disability Discrimination
Act 1995 and Regulation 35(3) of the Working Time Regulations 1998, Section 49 of the National Minimum Wage Act 1998, Regulation
10 of the Fixed Term Executives (Prevention of less favourable Treatment) Regulations 2002; Regulation 9 of the Part Time Workers
(prevention of Less favourable Treatment) Regulations 2000, Schedule 4 of the Employment Equality (Religion or Belief) Regulations
2003, Schedule 4 of the Employment Equality (Sexual Orientation) Regulations 2003; Schedule 5 of the Employment Equality (Age)
Regulations 2006; Regulation 40 of the Information and Consultation of Executives Regulations 2004; and Regulation 41 of the Transnational
Information and Consultation of Executives Regulations 1998 have accordingly been satisfied.

 

	(Sgd.)	 	 	Date	 	 

 

    	 	B-7EXHIBIT 10.1

EXECUTIVE AGREEMENT

This Executive Agreement ("Agreement") is entered into by and between Joe D. Rainey ("Employee") and Halliburton Worldwide Resources, LLC, for and on behalf of itself, its subsidiaries and its affiliated companies, including, without limitation, Halliburton Company (collectively, "Employer" or "Company") as of December 6, 2017 (the "Effective Date").

RECITALS

WHEREAS, Employer desires to continue to employ Employee pursuant to the terms and conditions and for the consideration set forth in this Agreement, and Employee desires to be employed by Employer pursuant to such terms and conditions and for such consideration.

NOW THEREFORE, for and in consideration of the mutual promises, covenants, and obligations contained herein, Employer and Employee agree as follows:

ARTICLE 1: EMPLOYMENT AND DUTIES:

1.1          Employer agrees to employ Employee, and Employee agrees to be employed by Employer, as of the Effective Date and continuing until the date of termination of Employee's employment pursuant to the provisions of Article 3, subject to the terms and conditions of this Agreement.

1.2          As of the Effective Date, Employee will be employed as President – Eastern Hemisphere.  Employee agrees to serve in the assigned position and to perform diligently and to the best of Employee's abilities the duties and services relating to such position as reasonably determined by Employer, as well as such additional or different duties and services appropriate to such positions which Employee from time to time may be reasonably directed to perform by Employer.

1.3          Employee shall at all times comply with and be subject to such policies and procedures as Employer may establish from time to time, including, without limitation, the Halliburton Company Code of Business Conduct (the "Code of Business Conduct"), Company Policy 3-90020, "Director and Executive Compensation Administration" (with respect to the prohibition of discretionary payments in certain situations), Company Policy 3-90040, "Recoupment of Incentive Compensation", and Company Policy 3-90050, "Termination of Officers Who Participate in Violations or Disregard Supervisory Responsibilities", all of which have been made available to Employee and are available under "COBC" or "Policies" as posted on Halworld located at http://halworld.corp.halliburton.com, as well as Section 36(a) of the Halliburton Company By-Laws (with respect to the limitations on the advancement of legal expenses), a copy of which has been made available to Employee.  By signing this Agreement, Employee hereby represents and warrants that he has read, understood and agrees to the terms and conditions contained in such Code of Business Conduct, policies, and By-Laws.

 

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1.4          Employee shall, during the period of Employee's employment by Employer, devote Employee's full business time, energy, and best efforts to the business and affairs of Employer. Employee may not engage, directly or indirectly, in any other business, investment, or activity that interferes with Employee's performance of Employee's duties hereunder, is contrary to the interest of Employer or any of its affiliated companies (collectively, the "Halliburton Entities" or, individually, a "Halliburton Entity"), or requires any significant portion of Employee's business time.  The foregoing notwithstanding, the parties recognize and agree that Employee may engage in passive personal investments and other business activities which do not conflict with the business and affairs of the Halliburton Entities or interfere with Employee's performance of his duties hereunder. Employee may not serve on the board of directors of any entity other than a Halliburton Entity while employed by Employer without the approval thereof in accordance with Employer's policies and procedures regarding such service. Employee shall be permitted to retain any compensation received for approved service on any unaffiliated corporation's board of directors to the extent permitted under a Halliburton Entity's policies and procedures.

1.5          Employee acknowledges and agrees that Employee owes a fiduciary duty of loyalty, fidelity and allegiance to act at all times in the best interests of the Employer and the other Halliburton Entities and to do no act which would, directly or indirectly, injure any such entity's business, interests, or reputation. It is agreed that any direct or indirect interest in, connection with, or benefit from any outside activities, particularly commercial activities, which interest might in any way adversely affect Employer, or any Halliburton Entity, involves a possible conflict of interest. In keeping with Employee's fiduciary duties to Employer, Employee agrees that Employee shall not knowingly become involved in a conflict of interest with Employer or the Halliburton Entities, or upon discovery thereof, allow such a conflict to continue. Moreover, Employee shall not engage in any activity that might involve a possible conflict of interest without first obtaining approval in accordance with the applicable Halliburton Entity's policies and procedures.

1.6          Nothing contained herein shall be construed to preclude the transfer of Employee's employment to another Halliburton Entity ("Subsequent Employer") as of, or at any time after, the Effective Date and no such transfer shall be deemed to be a termination of employment for purposes of Article 3 hereof; provided, however, that, effective with such transfer, all of Employer's obligations hereunder shall be assumed by and be binding upon, and all of Employer's rights hereunder shall be assigned to, such Subsequent Employer and the defined term "Employer" as used herein shall thereafter be deemed amended to mean such Subsequent Employer. Except as otherwise provided above, all of the terms and conditions of this Agreement, including without limitation, Employee's rights and obligations, shall remain in full force and effect following such transfer of employment.

ARTICLE 2: COMPENSATION AND BENEFITS:

2.1          Employee's base salary as of January 1, 2018 will be $875,000 and shall be paid in accordance with the Employer's standard payroll practice for its executives. Employee's base salary may be increased from time to time at the discretion of the Board of Directors, its Compensation Committee (the "Compensation Committee"), or its delegate, as applicable. Such increased base salary shall become the minimum base salary under this agreement and may not be decreased thereafter without the written consent of Employee, unless comparable reductions in salary are effective for all similarly situated executives of Employer.

 

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2.2          Employee shall be eligible to participate in the Annual Performance Pay Plan and the Performance Unit Program, or any successor incentive plans approved by the Compensation Committee; provided, however, that all determinations relating to Employee's participation, including, without limitation, those relating to the performance goals applicable to Employee and Employee's level of participation and payout opportunity, shall be made in the sole discretion of the person or committee to whom such authority has been granted pursuant to such plan's terms.

2.3          Employer shall pay or reimburse Employee for all actual, reasonable and customary expenses incurred by Employee in the course of his employment; including, but not limited to, travel, entertainment, subscriptions and dues associated with Employee's membership in professional, business and civic organizations; provided that such expenses are incurred and accounted for in accordance with Employer's applicable policies and procedures. Any reimbursement provided hereunder during one calendar year shall not affect the amount or availability of reimbursements in another calendar year.  Any reimbursement provided hereunder shall be paid no later than the earlier of (i) the time prescribed under Employer's applicable policies and procedures, or (ii) the last day of the calendar year following the calendar year in which Employee incurred the reimbursable expense.

2.4          Employee shall be allowed to participate, on the same basis generally as other executive employees of Employer, in all general employee benefit plans and programs, including improvements or modifications of the same, which on the Effective Date or thereafter are made available by Employer to all or substantially all of Employer's similarly situated executive employees. Such benefits, plans, and programs may include, without limitation, medical, health, and dental care, life insurance, disability protection, and qualified and non‐qualified retirement plans. Except as specifically provided herein, nothing in this Agreement is to be construed or interpreted to increase or alter in any way the rights, participation, coverage, or benefits under such benefit plans or programs. While employed by Employer, Employee shall be eligible to receive awards under the Halliburton Company Stock and Incentive Plan ("SIP") or any successor stock-related plan adopted by the Board of Directors.  Employee's participation in and benefits under such plans or programs may not be decreased without the approval of the Board of Directors, its Compensation Committee or its delegate, as applicable.

2.5          As soon as practicable following the Effective Date, subject to the terms and conditions of the SIP and the applicable award agreements, Employee shall be awarded

 (i) Halliburton Company restricted stock units with a grant date value of $1,184,868 to vest 20% annually over a five (5) year period, and (ii) nonqualified stock options to purchase shares of Halliburton Company common stock with a grant date value of $506,736 that vest 33 1/3% annually over a three (3) year period, in each case beginning with the grant date of the award. Employee agrees that all awards of Halliburton Company restricted stock, restricted stock units and/or nonqualified stock options shall be subject to the other terms and conditions of the SIP as contained in the applicable award agreement.  Employee also agrees that the foregoing shall not be construed as a guarantee with respect to the type, amount or frequency of future awards, if any, such decisions being solely within the discretion of the Compensation Committee, or its delegate, as applicable.

 

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2.6          Employer shall not, by reason of this Article 2, be obligated to institute, maintain, or refrain from changing, amending or discontinuing, any incentive compensation, employee benefit or stock or stock option program or plan, so long as such actions are similarly applicable to covered employees generally.

2.7          Employer may withhold from any compensation, benefits, or amounts payable under this Agreement all federal, state, city, or other taxes as may be required pursuant to any law or governmental regulation or ruling.

	ARTICLE 3:	
TERMINATION OF EMPLOYMENT AND EFFECTS OF SUCH TERMINATION:

3.1          Employee's employment with Employer shall be considered an "at-will" relationship and shall be terminated (i) upon the Death (as defined below) of Employee, (ii) upon Employee's Retirement (as defined below), (iii) upon Employee's Early Retirement (as defined below), (iv) upon Employee's Permanent Disability (as defined below), (v) for Cause (as defined below), (vi) upon Participation in a Significant Violation or Failure to Supervise (as defined below), (vii) upon Employee's termination of employment for Good Reason (as defined below), or (viii) at any time by Employer upon written notice to Employee, or by Employee upon thirty (30) calendar days' written notice to Employer, for any or no reason.

3.2          Employee's entitlement to receive the benefits set forth in Section 3.4 is contingent on the reason or cause of the termination of Employee's employment.  Types of termination events and the definitions of those events used in this Agreement are as follows:

		(i)	
Death.  "Death" shall mean Employee's death.

		(ii)	
Retirement.  "Retirement" shall mean Employee's retirement at or after normal retirement age (either voluntarily or pursuant to the applicable Halliburton Entity's retirement policy).

		(iii)	
Early Retirement.  "Early Retirement" shall mean the voluntary termination of Employee's employment by Employee in accordance with Employer's early retirement policy for other than Good Reason (as defined below).

		(iv)	
Permanent Disability.  "Permanent Disability" shall mean Employee's physical or mental incapacity to perform his usual duties with such condition likely to remain continuously and permanently as reasonably determined by a qualified physician selected by Employer.

 

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		(vi)	
Cause.  "Cause" shall mean any of the following: (a) Employee's gross negligence or willful misconduct in the performance of the duties and services required of Employee pursuant to this Agreement; (b) Employee's final conviction of a felony; (c) a material violation of the Code of Business Conduct; or (d) Employee's material breach of any material provision of this Agreement which remains uncorrected for thirty (30) calendar days following written notice of such breach to Employee by Employer.  Determination as to whether or not Cause exists for termination of Employee's employment will be made by the Compensation Committee, or its delegate, acting in good faith.

 

		(vii)	
Participation in a Significant Violation or Failure to Supervise.  "Participation in a Significant Violation or Failure to Supervise" shall mean termination of Employee's employment by Employer following a determination, in accordance with the procedures set out in Company Policy 3-90050, that (a) in connection with the performance of Employee's duties as an officer, Employee Participated in a Significant Violation or both (A) had direct supervisory responsibility over an employee who Participated in such a violation and (B) Recklessly disregarded Employee's own supervisory responsibilities, and (b) Employee's conduct warrants termination.

3.3          Except as provided in Section 3.4, upon Employee's termination, all future compensation to which Employee is otherwise entitled and all future benefits for which Employee is eligible shall cease and terminate as of the date of termination.  Employee shall be entitled to pro rata base salary through the date of such termination, payment for any properly documented but unreimbursed business expenses, and, except as may be prohibited by Company policy, any individual annual incentive compensation not yet paid but earned and payable under Employer's plans for the year prior to the year of Employee's termination of employment, but shall not be entitled to any annual incentive compensation for the year in which he terminates employment or any other payments or benefits by or on behalf of Employer, except for those which may be payable pursuant to the terms of Employer's or Halliburton Entity's employee benefit plans (as defined in Section 3.5(b)), stock, stock option or incentive plans, or the applicable agreements underlying such plans.

 

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3.4          (a)          (i) If Employee's employment is terminated (x) by reason of Employee's  Death, Retirement, or Permanent Disability, (y) by Employee for Good Reason, or (z) by Employer for any reason other than for Cause or Participation in a Significant Violation or Failure to Supervise, and (ii) in all cases, Employee is in compliance with Employee's obligations under this Agreement, Employer shall cause the forfeiture restrictions with respect to any restricted shares of Halliburton Company's common stock or restricted stock units which were granted to Employee under the SIP to lapse and such shares, net of any shares withheld for taxes, shall become fully vested and outstanding restricted stock units shall be settled upon termination of employment, subject to the restrictions of Section 6.9.

(b)          If Employee's employment is terminated (i) by Employee for Good Reason or (ii) by Employer for any reason other than for Cause or Participation in a Significant Violation or Failure to Supervise, Employee shall, subject to the provisions of Section 3.5, be entitled to a single lump sum cash payment equal to two (2) years of Employee's base salary as in effect at the date of the termination of Employee's employment.  Such amount shall be paid as soon as administratively practicable, but no later than the sixtieth (60th) calendar day following the termination of Employee's employment.

            (c)          Should Employee breach any of the agreements and covenants in this Agreement, any amounts provided for in Section 3.4 remaining unpaid will be forfeited; provided, that forfeiture shall not be the exclusive remedy for any breach, and the Company shall be entitled to seek and obtain any additional remedy at law or equity, including without limitation actual damages, caused by any breach.

(d)          Notwithstanding the above, the vesting or settlement of any outstanding equity-based awards and cash payment provided for in this Section 3.4 shall be subject to the provisions of Company Policy 3-90010, "Future Severance Agreements".

3.5          (a)          The benefits paid to Employee pursuant to Section 3.4 shall be in consideration of Employee's continuing obligations hereunder after such termination, including, without limitation, Employee's obligations under Articles 4 and 5. Further, as a condition to the receipt of such benefits, Employee shall first execute a release, in the form established by Employer, releasing Employer and all other Halliburton Entities, and their officers, directors, employees, and agents, from any and all claims and from any and all causes of action of any kind or character, including, but not limited to, all claims and causes of action arising out of Employee's employment with Employer and any other Halliburton Entities or the termination of such employment.  The release must be executed by Employee within twenty-one (21) days from Employee's termination of employment.  The performance of Employer's obligations under Section 3.4 and the receipt of the benefits provided thereunder by Employee shall constitute full settlement of all such claims and causes of action.  Such release shall also include the restrictions contained in Sections 3.6, 3.7, and 3.8, and in Article 5.  Employee shall not be under any duty or obligation to seek or accept other employment following a termination of employment pursuant to which a benefit payment under Section 3.4 is owing and the amounts due Employee pursuant to Section 3.4 shall not be reduced or suspended if Employee accepts subsequent employment or earns any amounts as a self-employed individual. Employee's rights under Section 3.4 are Employee's sole and exclusive rights against the Employer or its affiliates and the Employer's sole and exclusive liability to Employee under this Agreement, in contract, tort, under statute or otherwise, for the termination of his employment relationship with Employer.

 

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            (b)          Employee agrees that all disputes relating to Employee's termination of employment, including, without limitation, any dispute as to the occurrence of the events listed in Section 3.2, and any claims or demands against Employer based upon Employee's employment for any monies other than those specified in Section 3.4, shall be resolved through the Halliburton Company Dispute Resolution Plan ("Dispute Resolution Plan") as provided in Section 6.6 hereof; provided, however, that decisions as to whether any of the events listed in Section 3.2 have occurred, will be made by the Board of Directors, the Compensation Committee, or its delegate, as required under the applicable Company policy, and in any dispute by Employee with any such determination, the arbitrator's decision shall be limited to whether the Board of Directors, the Compensation Committee, or its delegate, reached such decision in good faith.  Nothing contained in this Article 3 shall be construed to be a waiver by Employee of any benefits accrued for or due Employee under any employee benefit plan (as such term is defined in the Employee Retirement Income Security Act of 1974, as amended) maintained by Employer, except that Employee shall not be entitled to any severance benefits pursuant to any severance plan or program of the Employer.

3.6          In consideration of the access to "Confidential Information" as defined in Article 4 and the other consideration provided herein, Employee agrees that, for a period of two (2) years following termination of employment, the Employee shall not, anywhere in the world, directly or indirectly, either (a) solicit, encourage, or induce to terminate or reduce its business with Employer, or (b) provide any products and/or services that compete directly with products and/or services provided, marketed, and/or under development by Employer at any time during the two (2) years preceding the termination of Employee's employment, in both cases, to any person or entity who paid or engaged Employer for products and/or services, or who received the benefit of Employer's products and/or services, or with whom the Employee had any substantial dealings while Employee was employed by Employer, during the two (2) years preceding the Employee's termination of employment with Employer.

3.7          In consideration of the access to Confidential Information and the other consideration provided herein, Employee further agrees that Employee will not, during the two (2) years period following termination of employment, solicit, directly or indirectly, or cause or permit others to solicit, directly or indirectly, any person (i) formerly employed by Employer during the six (6) month period immediately preceding or following Employee's termination of employment ("Former Employee") or (ii) employed by Employer ("Current Employee").  The term "solicit" includes, but is not limited to, the following (regardless of whether done directly or indirectly):  (a) requesting that a Former or Current Employee change employment; (b) informing a Former or Current Employee that an opening exists elsewhere; (c) assisting a Former or Current Employee in finding employment elsewhere; (d) inquiring if a Former or Current Employee "knows of anyone who might be interested" in a position elsewhere; (e) inquiring if a Former or Current Employee might have an interest in employment elsewhere; (f) informing others of the name or status of, or other information about, a Former or Current Employee; or (g) any other similar conduct, the intended or actual effect of which is that a Former Employee affiliates with another employer or a Current Employee leaves the employment of Employer.

 

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3.8          (a)  In consideration of the access to Confidential Information and the other consideration provided herein, and so as to enforce the confidentiality obligations contained in Article 4, the Employee specifically agrees that, for a period of two (2) years following termination of employment, except as permitted by Section 3.8(b) below, Employee will not engage, directly or indirectly, either as proprietor, stockholder, partner, director, officer, member, employee, consultant, or otherwise, (i) in any existing or future business or in any existing or future division or unit of a commercially diverse business enterprise, anywhere in the world that is owned in whole or in part or  effectively  controlled by any of the following companies:  Baker Hughes, a GE company, BJ Services, Black Mountain Oil and Gas, C&J Energy Services, Calfrac Well Services Ltd., Expro International Group, Plc., Exterrna Holding Inc, FTS International, General Electric, Keane Group, Liberty, Nabors Industries Ltd, National Oilwell Varco, Inc., Noble Corporation, OneStim (the proposed Schlumberger/Weatherford joint venture), Patterson-UTI Energy, Inc., ProPetro Services, Inc., RockPile Energy Services, RPC, Inc (Cudd Energy Services), Schlumberger Ltd, Superior Energy Services, Inc., Tidewater Inc, Trican, Transocean Ltd., U.S. Well Services, Vista, Weatherford International Ltd. or any of their respective successors; or (ii) in any existing or future business operating in North America or in any of the ten countries outside of North America that produced the highest revenues for the Employer in the year preceding Employee's termination of employment that offers, sells, or provides equipment, products or services that compete with Employer's equipment, products or services.

(b)  The above Section 3.8(a) notwithstanding, nothing in this Section 3.8 shall prohibit Employee and his affiliates from owning, as passive investors, in the aggregate not more than five percent of equity securities of any of the companies listed in such Section 3.8(a).

3.9          Termination of the employment relationship, regardless of reason or circumstances, does not terminate those obligations imposed by this Agreement which are continuing obligations, including, without limitation, Employee's obligations under Sections 3.6, 3.7, and 3.8 and Articles 4 and 5.

	ARTICLE 4:	
OWNERSHIP AND PROTECTION OF INTELLECTUAL PROPERTY AND CONFIDENTIAL INFORMATION:

4.1          All information, ideas, concepts, improvements, discoveries, works of authorship, and inventions, whether patentable or copyrightable or not, which are conceived, reduced to practice, authored, made, developed or acquired by Employee, individually or in conjunction with others, in the scope of Employee's employment by Employer or any of its affiliates, and/or during the term of Employee's employment (whether during business hours or otherwise and whether on Employer's premises or otherwise) which relate to the business, products or services of Employer or its affiliates (including, without limitation, all such information relating to any corporate opportunities, research, financial and sales data, pricing and trading terms, evaluations, opinions, interpretations, acquisition prospects, the identity of customers

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 or their requirements, the identity of key contacts within the customer's organizations or within the organization of acquisition prospects, or marketing and merchandising techniques, prospective names, and marks), and all documents, things, writings and items of any type or in any media embodying any of the foregoing (collectively, "Developments"), and any and all proprietary rights of any kind thereto, including without limitation all rights relating to patents, copyrights, trade secrets, and trademarks, shall be the sole and exclusive property of Employer or its affiliates, as the case may be.  Employee hereby assigns to Employer any and all rights Employee might otherwise have in and to any such Developments, and any and all proprietary rights of any kind thereto, including without limitation all rights relating to patents, copyrights, trade secrets, and trademarks.  Employee acknowledges that the assignment of Employee's entire right, title and interest in and to any and all such Developments to Employer is deemed effective upon the earliest of the conception, development, first reduction to practice, or creation of the Development by Employee.  Employee agrees, without further consideration and upon request by Employer, to assist and cooperate with Employer by executing any and all documents, and by performing any and all lawful acts, necessary to document the assignment to Employer (or Employer's designee) of Employee's right, title and interest in and to any and all such Developments and to assist Employer (or Employer's designee) in perfecting such rights.

4.2          In connection with its employment of Employee, Employer shall provide to Employee such Confidential Information of Employer as is reasonably necessary for Employee to perform Employee's obligations hereunder.  Employee agrees that "Confidential Information" as used herein shall include, without limitation, Employer's trade secrets, confidential and/or proprietary information, and all other information and data that is not generally known to third persons who could derive economic value from its use or disclosure, including, but not limited to, Employer's strategies, methods, products, software, books, records, data and technical information concerning its products, equipment, services, and processes, procurement procedures and pricing techniques, and the names of and other information (such as credit and financial data) concerning its vendors, customers and business affiliates.  Employee agrees that such Confidential Information constitutes valuable, special, and unique assets which Employer or its affiliates use in their business to obtain a competitive advantage over their competitors.  Employee further agrees that protection of such Confidential Information against unauthorized disclosure and use is of critical importance to Employer and its affiliates in maintaining their competitive position.  Employee shall not, at any time during or after the term of employment, use, publish, disclose, claim ownership of, communicate, divulge or send to others, access, or take, any Confidential Information of Employer or its affiliates, including Employer's vendors, consultants, joint ventures, or customers, except to the extent needed to carry out Employee's obligations hereunder, or as otherwise authorized in writing by Employer.  Employee also agrees that Employee will not upload or cause to be uploaded to any online electronic data storage site (e.g., "cloud" storage sites) any Confidential Information.  Employee acknowledges and agrees that any unauthorized use or disclosure of such Confidential Information would cause irreparable harm to Employer.  Confidential Information shall not include information in the public domain (but only if the same becomes part of the public domain through a means other than a use or disclosure prohibited hereunder).  The above notwithstanding, a disclosure shall not be unauthorized to the extent (i) it is required by law or by a court of competent jurisdiction or (ii) it is required in connection with any judicial, arbitration, dispute resolution or other legal proceeding in which Employee's legal rights and obligations as an employee or under this Agreement are at issue; provided, however, that Employee shall, to the extent practicable and lawful in any such event, give prior notice to Employer of Employee's intent to disclose any such confidential business information in such context so as to allow Employer or its affiliates an opportunity (which Employee will not oppose) to obtain such protective orders or similar relief with respect thereto as may be deemed appropriate, and that Employee shall limit any such disclosure to that required by the foregoing circumstances.

 

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4.3          All written and electronic materials, records, and other documents and information made by, or coming into the possession of, Employee during the term of Employee's employment that contain or disclose any Confidential Information of Employer or its affiliates, and any and all proprietary rights of any kind thereto, including without limitation all rights relating to patents, copyrights, trade secrets, and trademarks, shall be and remain the sole and exclusive property of Employer, or its affiliates, as the case may be.  Upon termination of Employee's employment, Employee promptly shall deliver the same, and all copies thereof, to Employer.

4.4          If, in the performance of Employee's duties for Employer, it is necessary to temporarily remove documents or information from Employer's premises, Employee will remove only such documents or information as necessary to perform such duties and will immediately return such documents or information to Employer's premises upon completion of such duties and at any time upon request.  Employee further agrees not to commingle such documents or information with Employee's personal records and documents.  Employee agrees to maintain any back-up copies of documents or information at Employer's premises and not to maintain any back-up copies away from Employer's premises.  All documents or information (including computer records, facsimile and e-mail) and materials created, received or transmitted in connection with Employee's work or using Employer facilities are presumptively Employer's property and subject to inspection by Employer at any time.  Any computer media (e.g., disks, tapes, external thumb drives, flash drives, external hard drives, DVDs or CDs), personally owned computers of Employee (including the contents of such computer's hard drive) and data storage accounts on which any Employer documents or information has been stored may also be reviewed by Employer to determine if they contain any Confidential Information.

4.5          Pursuant to the Defend Trade Secrets Act of 2016, Employee acknowledges that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

4.6          For purposes of this Article 4, "affiliates" shall mean entities in which Employer has a 20% or more direct or indirect equity interest.

ARTICLE 5:  POST-EMPLOYMENT COVENANTS

5.1          In consideration of the access to the Confidential Information provided by Employer, the payment made under Sections 2.5 and 3.4 and the other consideration provided herein, and to protect Employer's Confidential Information, and the goodwill, customer and employee base, and contractual relationships of Employer, Employee agrees to the provisions of Sections 5.2, 5.3 and 5.4.

 

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5.2          Employee agrees that, for a period of two (2) years following termination of employment, Employee shall not, anywhere in the world, directly or indirectly, either (a) solicit, encourage, or induce to terminate or reduce its business with Employer, or (b) provide any products and/or services that compete directly with products and/or services provided, marketed, and/or under development by Employer at any time during the two (2) years preceding the termination of Employee's employment, in both cases, to any person or entity who paid or engaged Employer for products and/or services, or who received the benefit of Employer's products and/or services, or with whom the Employee had any substantial dealings while Employee was employed by Employer, during the two (2) years preceding the Employee's termination of employment with Employer.

5.3          Employee further agrees that, for a period of two (2) years following termination of employment, Employee shall not, anywhere in the world, solicit, directly or indirectly, or cause or permit others to solicit, directly or indirectly, any Former or Current Employee.  The term "solicit" as used in this Section 5.3 shall have the same meaning provided for such term in Section 3.7 above.

5.4          Employee further agrees that, for a period of two (2) years following termination of employment, Employee shall not engage, directly or indirectly, either as proprietor, stockholder, partner, director, officer, member, employee, consultant, or otherwise, (i) in any existing or future business, or in any existing or future division or unit of a commercially diverse business enterprise, anywhere in the world, that is owned in whole or in part or effectively  controlled by any of the companies listed or described in Section 3.8(a) above; or (ii) in any existing or future business operating in North America or in any of the ten countries outside of North America that produced the highest revenues for the Employer in the year proceeding Employee's termination of employment that offers, sells, or provides equipment, products or services  that compete with Employer's equipment, products or services, except as permitted by Section 3.8(b) above.

5.5          Employee agrees that (a) the covenants contained in this Agreement are necessary for the protection of Employer's business, goodwill, customer and employee relationships and Confidential Information, and (b) the compensation and other consideration received by Employee, including access to Confidential Information, are based on the parties' agreement to such covenants.  Employee represents and warrants that the time, scope of activity and geographic area restricted by Sections 3.6, 3.7, 3.8, 5.2, 5.3, and 5.4 are reasonable, especially in view of the worldwide scope of the business operations of Employer, Employee's position and responsibilities with Employer, and the nature of the Confidential Information, that the enforcement of those restrictions contained in Sections 3.6, 3.7, 3.8, 5.2, 5.3, and 5.4 would not be unduly burdensome to or impose any undue hardship on Employee, and that Employee will be able to earn a reasonable living while abiding by such covenants.  Employee agrees that the restraints and provisions of Sections 3.6, 3.7, 3.8, 5.2, 5.3, and 5.4 are no greater than necessary, and are as narrowly drafted as reasonably possible, to protect the legitimate interests of Employer, including the Confidential Information and trade secrets of

 

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 Employer.  Employee irrevocably waives all defenses to the strict enforcement of the covenants contained in Sections 3.6, 3.7, 3.8, 5.2, 5.3, and 5.4, and agrees that the breach or violation, or threat thereof, of the obligations and covenants set forth in any of such Sections shall entitle Employer, as a matter of right, to an injunction without the requirement of a bond, restraining any further or continued breach or violation of said obligations and covenants.  The parties agree and acknowledge that the nature of Employer's business, including the locations of its projects, vendors, customers, and potential customers, is global in nature.  Accordingly, the parties expressly agree that the foregoing restrictions on Employee need to be global in territorial scope to adequately protect Employer's business, goodwill, customer and employee relationships and Confidential Information, and that such global territorial restriction is reasonable in view of Employer's business, Employee's position and responsibilities with Employer, and Employee's access to the Confidential Information of Employer.  If the scope of any restriction contained in Sections 3.6, 3.7, 3.8, 5.2, 5.3, and 5.4 is deemed by a court or arbitrator to be broader than reasonable, which the parties agree should not be the case, then such restriction shall be enforced to the maximum extent permitted by law, and Employee and Employer hereby agree that such scope may be modified accordingly in any proceeding brought to enforce such restriction.

5.6          The provisions of Sections 3.6, 3.7, 3.8, 5.2, 5.3, and 5.4 are, and shall be construed as, independent covenants, and no claimed or actual breach of any contractual or legal duty by Employer shall excuse or terminate Employee's obligations under this Agreement or preclude Employer from obtaining injunctive relief for Employee's violation, or threatened violation, of any of those provisions.  The restrictive periods set forth in this Agreement shall not expire, and shall be tolled, during any period in which Employee is in violation of this Agreement.

5.7          Employee agrees that he shall not make, directly or indirectly, whether in writing, orally or electronically, any negative, derogatory or other comment that could reasonably be expected to be detrimental to the Halliburton Entities, their business or operations or any of their current or former employees, officers or directors.  Employee consents to Employer showing this Agreement to any third party believed by Employer to be a prospective or actual employer of Employee, and to insisting on Employee's compliance with the terms of this Agreement.  Notwithstanding the foregoing, nothing in this Agreement, including the non-disclosure provisions above, limits Employee's ability to communicate with the Securities and Exchange Commission (or any other governmental agency) regarding any possible violations of law, to otherwise participate in any investigation or proceeding that may be conducted by a governmental agency (including providing documents or other information without notice to Employer), or to receive any award for information provided to a governmental agency.  

ARTICLE 6: MISCELLANEOUS:

6.1          Except as otherwise provided in Section 4.5 hereof, for purposes of this Agreement, the terms "affiliate" or "affiliated" means an entity who directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with a Halliburton Entity or in which a Halliburton Entity has a 50% or more equity interest.

 

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6.2          For purposes of this Agreement, notices and all other communications provided for herein shall be in writing and shall be deemed to have been duly given when received by or tendered to Employee or Employer, as applicable, by pre-paid courier or by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

If to Employer, to Halliburton Company at 3000 North Sam Houston Parkway East, Houston, Texas 77032, to the attention of the General Counsel, or to such other address as Employee shall receive notice thereof.

If to Employee, to his last known personal residence.

6.3          This Agreement shall be governed by and construed and enforced in all respects in accordance with the law of the State of Texas, without regard to principles of conflicts of law, unless preempted by federal law, in which case federal law shall govern; provided, however, that the Dispute Resolution Plan and the Federal Arbitration Act shall govern in all respects with regard to the resolution of disputes hereunder.  Employee and Employer further agree that any lawsuit, arbitration, or other proceeding arising out of or related in any way to this Agreement or their relationship shall be commenced and maintained only in the federal or state courts or before an arbitrator in Harris County, Texas, and each party waives any current or future objection to such venue and hereby further agrees to submit to the jurisdiction of any duly authorized court or arbitrator in Harris County, Texas with respect to any such proceeding.

6.4          No failure by either party hereto at any time to give notice of any breach by the other party of, or to require compliance with, any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

6.5          It is a desire and intent of the parties that the terms, provisions, covenants, and remedies contained in this Agreement shall be enforceable to the fullest extent permitted by law. If any such term, provision, covenant, or remedy of this Agreement or the application thereof to any person, association, or entity or circumstances shall, to any extent, be construed to be invalid or unenforceable in whole or in part, then such term, provision, covenant, or remedy shall be construed in a manner so as to permit its enforceability under the applicable law to the fullest extent permitted by law. In any case, the remaining provisions of this Agreement or the application thereof to any person, association, or entity or circumstances other than those to which they have been held invalid or unenforceable, shall remain in full force and effect.

6.6          It is the mutual intention of the parties to have any dispute concerning this Agreement resolved out of court.  Accordingly, the parties agree that any such dispute shall, as the sole and exclusive forum, be submitted for resolution through the Dispute Resolution Plan; provided, however, that the Employer, on its own behalf and on behalf of any of the Halliburton Entities, shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any breach or the continuation of any breach of the provisions of Sections 3.6, 3.7, and 3.8, and Articles 4 and 5 pending initiation or completion of proceedings under the Dispute Resolution Plan. Employee hereby consents that such restraining order or injunction may be granted without the necessity of the Employer posting any bond.  The parties agree that

 

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 the resolution of any such dispute through such plan shall be final and binding.  A copy of the Dispute Resolution Plan, as currently in effect, has been made available to Employee and is available on Halworld under "DRP" located at http://halworld.corp.halliburton.com. Halliburton Company reserves the right to amend, or discontinue such plan, in accordance with, and subject to, the plan's provisions regarding same.  By signing this Agreement, Employee hereby represents and warrants that he has read, understood and agrees to the terms and conditions contained in such Dispute Resolution Plan.  THE PARTIES ACKNOWLEDGE THAT, BY SIGNING THIS AGREEMENT, THEY ARE KNOWINGLY AND VOLUNTARILY WAIVING ANY RIGHT THAT THEY MAY HAVE TO A JURY TRIAL.

6.7          This Agreement shall be binding upon and inure to the benefit of Employer, to the extent herein provided, Halliburton Entity and any other person, association, or entity which may hereafter acquire or succeed to all or substantially all of the business or assets of Employer by any means whether direct or indirect, by purchase, merger, consolidation, or otherwise. Employee's rights and obligations under this Agreement are personal and such rights, benefits, and obligations of Employee shall not be voluntarily or involuntarily assigned, alienated, or transferred, whether by operation of law or otherwise, without the prior written consent of Employer, other than in the case of Death or incompetence of Employee.

6.8          This Agreement replaces and merges any previous agreements, understandings and discussions pertaining to the subject matter covered herein and therein, including but not limited to that certain Employment Agreement by and between Employee and Halliburton Company entered into effective as of January 1, 2011. This Agreement constitutes the entire agreement of the parties with regard to the terms of Employee's employment, termination of employment and severance benefits, and contains all of the covenants, promises, representations, warranties, and agreements between the parties with respect to such matters.  Each party to this Agreement acknowledges that no representation, inducement, promise, or agreement, oral or written, has been made by either party with respect to the foregoing matters which is not embodied herein, and that no agreement, statement, or promise relating to the employment of Employee by Employer that is not contained in this Agreement shall be valid or binding. Any modification of this Agreement will be effective only if it is in writing and signed by each party whose rights hereunder are affected thereby, provided that any such modification must be authorized or approved by the Compensation Committee or its delegate, as appropriate.

6.9          Notwithstanding any provision of the Agreement to the contrary, the following provisions shall apply for purposes of complying with Section 409A of the Internal Revenue Code and applicable Treasury authorities ("Section 409A"):

 

  

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		(i)	
If Employee is a "specified employee," as such term is defined in Section 409A, any payments or benefits that are deferred compensation under Section 409A and are payable or provided as a result of Employee's termination of employment shall be payable on the date that is the earlier of (a) the date that is six months and one day after Employee's termination, (b) the date of Employee's Death, or (c) the date that otherwise complies with the requirements of Section 409A.

		(ii)	
It is intended that the provisions of this Agreement satisfy the requirements of Section 409A and that the Agreement be operated in a manner consistent with such requirements to the extent applicable.  Therefore, the Employer and Employee agree to construe the provisions of the Agreement in accordance with the requirements of Section 409A.

[SIGNATURE PAGE FOLLOWS]

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Signature Page to Executive Agreement

By and Between Halliburton Worldwide Resources, LLC and

Joe D. Rainey

IN WITNESS WHEREOF, Employer and Employee have duly executed this Agreement in multiple originals to be effective on the Effective Date.

 

 

	 	 Halliburton Worldwide Resources, LLC
	 	 By:  /s/  Eric J. Carre
	 	 Name:  Eric J. Carre
	 	 Title:  President 

 

 

	 	 EMPLOYEE
	 	 /s/ Joe D. Rainey
	 	 Name:  Joe D. Rainey

 

 

 

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