Document:

novz_ex102.htm

EXHIBIT 10.2
  
 OPERATING AGREEMENT FOR THE ACQUISITION OF TRANSPORT ASSETS
  
 THIS AGREEMENT is made the 28th day of August 2017.
  
 BETWEEN: Datspares - Toyaparts Pty Ltd of 118 Main Road, Clayton South, Victoria 3169 
 (“Vendor”)
  
 And Roadbees Transport Pty Ltd of 13, 9-15 Sinclair Street, Arundel, Queensland 4214 
 (“Operator”)
  
 And Novagen Finance and Leasing Pty Ltd of 13, 9-15 Sinclair Street, Arundel, Queensland 4214 
 (“Asset Purchaser”)
  
 And Novagen Ingenium Inc. of 3773 Howard Hughes Parkway, South Las Vegas, Nevada, USA 89169-6014 
 (“Parent”) 
  
 RECITALS:
  
  	  
	A.	Datspares – Toyaparts Pty Ltd (“Vendor”) is a proprietary company which operates a slate of business operations. One of those operations is the interstate transport and warehousing of various products related and unrelated to the vendor’s other business operations.
	  
	  
	  

	  
	B.	Roadbees Transport Pty Ltd (“Operator”) is a proprietary company which is a wholly owned subsidiary of the Parent which operates a transport and warehousing business in the State of Queensland.
	  
	  
	  

	  
	C.	Novagen Finance and Leasing Pty Ltd (Asset Purchaser) is a proprietary company which is a wholly owned subsidiary of the Parent which owns and manages transport and warehousing assets. 
	  
	  
	  

	  
	D.	Novagen Ingenium Inc. (Parent) is a public reporting and public traded USA company which has business interest in engine development, precision engineering services and transport operations in the USA and Australia. 
	  
	  
	  

	  
	E.	The Vendor and the Parent have agreed to merge transport operations into the Operator upon the terms and conditions set out in this Agreement.
	  
	  
	  

	  
	F.	The Vendor has agreed to sell certain transport assets and the Asset Purchaser has agreed to purchase those assets upon the terms and conditions set out in this Agreement.
	  
	  
	  

	  
	G.	The Vendor, Operator, Asset Purchaser and Parent acknowledge that this agreement is not a definitive document and agree to engage counsel to produce formal documents as soon as possible.

  
  	 
	1
	 
 
	 

  
 OPERATIVE PROVISIONS:
  
  	  
	1.	DEFINITIONS AND INTERPRETATIONS
	  
	  
	  

	  
	1.1 	Definitions 

 
 In this Agreement unless otherwise provided or unless there is something in the subject matter or context inconsistent therewith the expressions following have the definitions or meanings hereinafter respectively provided:
  
  	  
	(a)	“this Agreement” means this Agreement and any other agreement expressed to be supplemental to this Agreement and all amendments to any such document;
	  
	  
	  

	  
	(b)	“Business Day” means any day which is not a Saturday, Sunday or public holiday in Victoria;
	  
	  
	  

	  
	(c)	Business” means the transport and logistics business operated by the Vendor;
	  
	  
	  

	  
	(d)	“Completion” means completion of the sale and purchase of the transport assets and operations;
	  
	  
	  

	  
	(e)	“Consideration” means AUD$2,246,000.00 (two million, two hundred and forty-six thousand) to be paid to the Vendor on or before 31st October 2017.
	  
	  
	  

	  
	(f)	“Date for Completion” means the Business Day which is 31st October 2017 or such earlier date which is agreed by the parties hereto;
	  
	  
	  

	  
	(g)	“Transport and warehousing assets” means the assets listed an Annexure A.
	  
	  
	  

	  
	(h)	“Identified profits and costs” means the rationalization of costs and profits to the appropriate party during pre-and post transition period.
	  
	  
	  

	  
	(i)	“Legacy Shares” means 500,000 common shares in the Parent, Novagen Ingenium, Inc. to be issued to the Vendor or the Vendor’s nominee at completion.
	  
	  
	  

	  
	(j)	“writing” includes printing typing lithography and other modes of reproducing words in a visible form and “written” has a corresponding meaning.
	  
	  
	  

	  
	(k)	“Time”; time is of the essence.

   
 	  
	1.2	Interpretation

  
  	  
	(a)	Every agreement or obligation expressed or implied in this Agreement by which two or more persons agree or are bound shall (except where otherwise expressly stated) bind such persons jointly and each of them severally and every provision expressed or implied in this Agreement which applies to two or more persons shall (except where otherwise expressly stated) apply to such persons jointly and each of them severally.
	  
	  
	  

	  
	(b)	Words denoting the singular number only shall include the plural and vice versa. Words importing the masculine or neuter gender include all other genders.
	  
	  
	  

	  
	(c)	The headings in this Agreement are included for convenience only and shall not affect the construction of this Agreement.
	  
	  
	  

	  
	(d)	Reference to statutes (whether particular reference to sections or generally) includes all statutes amending or consolidating or replacing the statutes referred to.
	  
	  
	  

	  
	(e)	The expression “$” or “dollars” means Australian dollars.

  
  	 
	2
	 
 
	 

  
 	  
	2.	AGREEMENT FOR SALE AND PURCHASE

  
 On execution of this Agreement by all parties it is agreed by them that the Vendor shall sell to the Asset Purchaser the transport and warehousing assets from the Vendor free from all encumbrances for the Consideration and upon the terms and conditions set out in this Agreement.
  
 On execution of this Agreement by all parties it is agreed by them that the Vendor and the Operator shall begin joint operations in transport and warehousing under the trading name of the Operator, Roadbees Transport on 1st September 2017 at a pace comfortable with the merge of both operations and upon the terms and conditions set out in this Agreement. 
  
 On execution of this Agreement by all parties it is agreed by them that the joint operations under the Operator shall be subject to identified profit and costs until completion and upon the terms and conditions set out in this Agreement. 
  
  	  
	3.	MANNER OF PROVISION OF CONSIDERATION
	  
	  
	  

	  
	3.1 	On completion, the Consideration shall be provided to the Vendors as they or their solicitors shall in writing direct.
	  
	  
	  

	  
	3.2 	On completion, the Legacy Shares shall be issued to the Vendors as they or their solicitors shall in writing direct.
	  
	  
	  

	  
	4.	TRANSPORT AND WAREHOUSING OPERATING PROVISION AND FURTHER ASSURANCES
	  
	  
	  

	  
	4.1 	The Managing Director of the Operator, at the costs of the operator, shall prior to the Date of Completion and within such reasonable time as may allow, begin working with the Vendor to create a pre-completion transition period;
	  
	  
	  

	  
	4.2 	The Operator, Asset Purchaser and the Parent agree to cause an employment agreement, permanent employment, casual employment or consulting agreement for the director of the Vendor post Completion on terms to be agreed.
	  
	  
	  

	  
	4.3 	The Vendor and the Operator agree to work together on profit and costs for operations during the pre-transition period and until Completion.
	  
	  
	  

	  
	5.	MUTUAL INDEMNITY & RELEASES AND SUBSTITUTIONS OF GUARANTEES
	  
	  
	  

	  
	5.1 	The Vendor jointly and severally covenant with the Operator, Asset Purchaser and the Parent to jointly and severally indemnify and hold indemnified the Operator, Asset Purchaser and the Parent from and against all losses damages claims demands actions judgments costs and expenses reasonably and lawfully suffered or incurred by the Operator, Asset Purchaser and the Parent by reason of the breach of any warranty hereby given or by reason of the failure of the Vendor or any one or more of them to observe perform and fulfill their obligations under this Agreement.
	  
	  
	  

	  
	5.2 	The Operator, Asset Purchaser and the Parent covenants with the Vendors that the Operator, Asset Purchaser and the Parent shall indemnify and hold indemnified the Vendor from and against all losses damages claims demands actions judgments costs and expenses reasonably and lawfully suffered or incurred by the Vendor by reason of the failure of the Operator, Asset Purchaser and the Parent to observe and fulfill its obligations under this Agreement.

  
 	 
	3
	 
 
	 

     
 	  
	6.	FURTHER ASSURANCES

  Each party shall notwithstanding Completion execute and do or cause to be executed and done all such further acts and things as shall be necessary to fulfill their respective obligations under this Agreement.
  
 	  
	7.	RIGHT OF TERMINATION

  
 If it be considered on a reasonable basis that at any time prior to Completion any representation or warranty on the part of the Vendor was or is or shall be materially incorrect the Operator, Asset Purchaser and the Parent may in addition to and without prejudice to any other remedy available to the Operator, Asset Purchaser and the Parent at law or in equity by notice in writing to the Vendor stating that it is given pursuant to this clause terminate this Agreement in which case no party shall be under any further obligation to any other pursuant to this Agreement.
  
 	  
	8.	NOTICES

  
 10.1 Any notice demand consent in writing or other communication requiring to be given or made under or pursuant to this Agreement shall be deemed to have been duly given or made when delivered in writing or sent by post facsimile transmission or telex to the party to which such notice demand consent or other communication is required or permitted to be given or made under this Agreement at the following addresses:
  
 The Vendors: Datspares - Toyaparts Pty Ltd at 118 Main Road, Clayton South, Victoria 3169 
  
 The Operator: Roadbees Transport Pty Ltd at 13, 9-15 Sinclair Street, Arundel, Queensland 4214 
  
 The Asset Purchaser: Novagen Finance and Leasing Pty Ltd at 13, 9-15 Sinclair Street, Arundel, Queensland 4214 
  
 The Parent: Novagen Ingenium Inc. at 3773 Howard Hughes Parkway, South Las Vegas, Nevada, USA 89169-60143 
  
 or at such other addresses as may from time to time be notified by the relevant party to the other or others for the purpose of this clause.
  
 10.2 Any notice demand consent in writing or other communication sent by post shall be deemed to have been served on the second Business Day after the date of posting and if sent by telex shall be deemed to have been given or made on receipt by the sender of the receiver’s answer back code after transmission of the substance of the communication and if sent by facsimile transmission shall be deemed to have been given or made upon receipt by the sender of an acknowledgement or transmission report generated by the machine from which the facsimile was sent indicating that the facsimile was sent in its entirety to the recipient’s facsimile number PROVIDED ALWAYS that if a notice or other communication is served by hand or is received by telex or facsimile on a day which is not a Business Day or after 5.00pm on any Business Day, such notice or communication shall be deemed to be duly received by the recipient at 9.00am on the next following Business Day.
  
 10.3 In addition and without prejudice to any mode of delivery or service authorized by this clause any notice demand consent in writing or other communication requiring to be given or made to any corporate party under or pursuant to this Agreement shall be deemed to have been duly served when delivered or transmitted in writing to any director or secretary of the party as the case may be. 
  
  	 
	4
	 
 
	 

  
 	  
	9.	LEGAL FEES & OTHER COSTS
	  
	  
	  

	  
	9.1 	The Operator, Asset Purchaser and the Parent shall bear all legal costs of and incidental to the preparation and execution of this Agreement and of all documents required to be signed pursuant to the provisions of this Agreement.
	  
	  
	  

	  
	9.2 	Any stamp duties wherever assessed payable on this Agreement or on any documents executed pursuant to these provisions or in respect of any transaction evidenced by or undertaken pursuant to this Agreement shall be borne and paid by the Operator, Asset Purchaser and the Parent and any party paying the same may recover as a debt the amount thereof from the party required by this Agreement to pay the same.
	  
	  
	  

	  
	10.	CONFIDENTIALITY

  
 No party to this Agreement shall unless compelled by law so to do make any public statement or disclose information of or concerning any of the matters evidenced by this Agreement without the approval in writing of the other party.
  
 	  
	11.	DEFAULT OF PURCHASER

  
 If the Purchaser fails to provide the Consideration at Completion or otherwise fails to comply with any of the terms of this Agreement, then the Vendors in addition to any other right which may be conferred upon them pursuant to this Agreement or at law or at equity may:
  
  	  
	(a)	terminate the contract, and sue for damages;

  
 or
  
  	  
	(b)	affirm the Contract and sue the Operator, Asset Purchaser or Parent for specific performance of the Contract and damages in addition to or instead of damages for breach.

  
 	  
	12.	ENTIRE AGREEMENT

  
 This Agreement constitutes the sole and entire agreement between the parties relating to the sale of the Shares and no representations or terms of any nature not contained in this Agreement shall be of any force unless they are reduced to writing and executed by all parties and are expressed to be in modification of this Agreement.
  
 	  
	13.	GOVERNING LAW AND JURISDICTION

  
  	  
	13.1 	The Laws applicable in Victoria and Australia govern this Agreement.
	  
	  
	  

	  
	13.2 	The parties hereto submit to the non-exclusive jurisdiction of the Courts and Tribunals of Victoria and Australia and any Courts competent to hear appeals from those Courts and/or Tribunals.

  
  	 
	5
	 
 
	 

  
 EXECUTED as an Agreement on 28th August 2017
  
 By;
  
 Datspares - Toyaparts Pty Ltd of 118 Main Road, Clayton South, Victoria 3169 
  
                                           
 Brian Murphy/ Director
  
 Roadbees Transport Pty Ltd of 13, 9-15 Sinclair Street, Arundel, Queensland 4214 
  
                                                               
 Sonny Nugent/ Managing Director
  
 Novagen Finance and Leasing Pty Ltd of 13, 9-15 Sinclair Street, Arundel, Queensland 4214 
  
                                             
 Garry Kinnaird/ Director
  
 Novagen Ingenium Inc. of 3773 Howard Hughes Parkway, South Las Vegas, Nevada, USA 89169-6014
  
                                      
 Micheal Nugent CEO 
  
  	 
	6
	 
 
	 

  
 Annexure A
  
 Vehicle Asset List
  
  	 Trucks
 Rego
	  
	 Year Description Value

	 1IT1YY
	  
	 2016 IVECO STRALIS ATI 360 

	 1AF1VV
	  
	 2013 IVECO POWER STAR 

	 YNW513
	  
	 2010 IVECO POWER STAR 

	 ZOY182
	  
	 2005 IVECO STRALIS 

	 1AF1VS
	  
	 2013 IVECO POWERSTAR 

	 1BF5HM
	  
	 2013 IVECO POWERSTAR 

	 1EM1NU
	  
	 2010 IVECO POWERSTAR 

	 1FV2QW
	  
	 2014 IVECO STRALIS 

	 CA89RV
	  
	 1999 HINO 10 TN RIGID GREEN 

	 1FV2RA
	  
	 2014 IVECO EUROCARGO 

	 1GR1HD
	  
	 2015 IVECO STRALIS 

	 WMZ046
	  
	 2007 IVECO 14 PAL BLUE T/LINER 

	 ODB683
	  
	 1997 IZUZU 8 PAL WHITE 

	 YARD
	  
	 IVECO 4700 - used as yard truck to move trailers around.

		  
	  

	 Trailers
	  
	  

	 Rego
	  
	 Year Description

	 61290S
	  
	 2008 TOPSTAR DROP DECK OPEN RAMP TRAILER 

	 83255S
	  
	 2002 KRUEGER A TRAILER 

	 83256S
	  
	 2002 KRUEGER B TRAILER 

	 T52256
	  
	 45FT DROP DECK 

	 24754S
	  
	 FREIGHTER CURTAINSIDER TRAILER 

	 82773S
	  
	 2010 TOPSTART open A Trailer blue straight deck 

	 89239S
	  
	 2009 TOPSTART A TRAILER 

	 89241S
	  
	 2009 TOPSTART B TRAILER 

	 93544S
	  
	 1999 22 Pal Blue Vawdry trailer – Sydney Local 

	 60602S
	  
	 2006 TOPSTART CUSTOM TRAILER 

	 89244S
	  
	 2013 TOPSTART DOUBLE DROP 

	 96067S
	  
	 2006 MAXITRANS ST3 A TRAILER

	 96068S
	  
	 2006 MAXITRANS ST3 B TRAILER

	 936885
	  
	 2006 TOPSTART TRAILER A 

	 7685
	  
	 2000 A TRAILER DOUBLE DROP 

	 7695
	  
	 2000 B TRAILER DOUBLE DROP 

		  
	  

	 Forklift
	  
	 Description 

	 CLARKE
	  
	 EXTENDABLE TINES QLD WAREHOUSE 

	 CLARKE
	  
	 VIC WAREHOUSE 

	 CLARKE
	  
	 VIC WAREHOUSE 

		  
	  

	 UTE 
	  
	  

	 SPT474
	  
	 HILUX METAL TRAY AND SIDES 

  
  
  	7dachesformofeacfocleansi

                       EXECUTIVE EMPLOYMENT AGREEMENT         This  Executive  Employment  Agreement  (“Agreement”)  is  entered  into  as  of January 23,  2017 (the  “Effective  Date”), by  and  between  Lilis  Energy,  Inc.  (the  “Company”)  and Joseph  C. Daches (“Executive”).  Executive and the Company are each referred to individually as a “Party” and collectively as the “Parties.”         NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements  contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby  acknowledged, the Parties agree as follows:         1.    Employment. Executive’s employment with the Company is subject to the terms set forth herein.          2.    Term. Subject to the remaining terms of this Section 2, this Agreement shall be for an initial term  that begins on the Effective Date and continues in effect through December 31, 2017 (the “Initial Term”) and, unless  terminated sooner as herein provided, shall continue on a year-to-year basis after the Initial Term (each year, a  “Renewal Term,” and each Renewal Term together with the Initial Term, the “Term”). If either Party elects not to  renew this Agreement for a Renewal Term, such Party must give a written Notice of Termination to the other Party  at least 180 days before the expiration of the then-current Initial Term or Renewal Term, as applicable. In the event  that one Party provides the other with a Notice of Termination pursuant to this Section 2, no further automatic  extensions shall occur and this Agreement shall terminate at the end of the then-existing Initial Term or Renewal  Term, as applicable, and such Termination shall not result in any entitlement to compensation pursuant to Section 6  or otherwise.         3.    Position. During the Term, Executive shall be employed as and hold the title of Executive Vice  President, Chief Financial Officer and Treasurer of the Company, with such duties and responsibilities that are  customary in that position for public companies. Executive’s principal place of employment shall be at the main  business offices of Company in Fort Worth, Texas.         4.    Scope  of  Services.  During  the  Term,  Executive  shall  devote  substantially  all  of  Executive’s  business time, energy and best efforts to carry out Executive’s responsibilities with respect to the business and  affairs of the Company and its affiliates. In addition, the Parties acknowledge that Executive may (i) engage in and  manage Executive’s passive personal investments, (ii) engage in charitable and civic activities and (iii) engage in  such other activities that the Parties mutually agree to; provided, however, that such activities shall be permitted so  long as such activities do not conflict with the business and affairs of the Company or interfere with the performance  of Executive’s duties hereunder.          5.    Compensation and Benefits. In each case during the Term:               5.1   Base Salary. The Company shall pay, or cause to be paid, to Executive a base salary (the  “Base Salary”) as established by or pursuant to authority granted by the Board at the following rates:                     (a)   $300,000 for services rendered from the Effective Date to the one-year  anniversary of the Effective Date;                     (b)   $350,000 for services rendered from the one-year anniversary of the Effective  Date to the two-year anniversary of the Effective Date; and                      (c)   $375,000 for services rendered following the two-year anniversary of the  Effective Date.                The Base Salary shall be reviewed annually by or pursuant to authority granted by the Board in  connection with its annual review of executive compensation to determine if such Base Salary should be increased                                            1  

 

(but not decreased) for the following year in recognition of services to the Company. The Base Salary shall be  payable at such intervals in conformity with the Company’s prevailing practice as such practice shall be established  or modified from time to time..                5.2   Cash Incentive  Bonus. Executive  shall receive  a  lump-sum cash  payment if and to the  extent that during the period between the Effective Date and the one-year anniversary of the Effective Date (the  “Measurement Period”), any of the following conditions set forth in Section 5.3.1 are satisfied, provided that, in  addition, at least one of the conditions set forth in Section 5.3.2 is also satisfied (the “Incentive Bonus”), in each  case as determined by the Board in its sole discretion, to be paid within 30 days after achievement of such conditions:                     5.2.1                     (a)   Executive shall be granted a bonus equal to 50% of Base Salary in the event that,  during the Measurement Period, the Company has determined that its annualized gross production average for a  consecutive 90-day period is equal to or exceeds 1,500 barrels of oil equivalent (“BOE”) per day;                     (b)   without duplication of the amount described in the preceding clause (a), Executive  shall be  granted  a  bonus  equal to 100% of Base Salary in the event that, during the  Measurement Period, the  Company has determined that its annualized gross production average for a consecutive 90-day period is equal to  or exceeds 2,000 BOE per day;                     (c)   without duplication of the amounts described in the preceding clauses (a) and (b),  Executive shall be granted a bonus equal to 150% of Base Salary in the event that, during the Measurement Period,  the Company has determined that its annualized gross production average for a consecutive 90-day period is equal  to or exceeds 3,000 BOE per day;                     (d)   without duplication of the amounts described in the preceding clauses (a), (b) and  (c), Executive shall be granted a bonus equal to 200% of Base Salary in the event that, during the Measurement  Period, the Company has determined that its annualized gross production average for a consecutive 90-day period  is equal to or exceeds 4,000 BOE per day;                     (e)   without duplication of the amounts described in the preceding clauses (a), (b), (c)  and (d), Executive shall be granted a bonus equal to 300% of Base Salary in the event that, during the Measurement  Period, the Company has determined that its annualized gross production average for a consecutive 90-day period  is equal to or exceeds 5,000 BOE per day; and                     (f)   without duplication of the amounts described in the preceding clauses (a), (b), (c),  (d)  and  (e),  Executive  shall  be  granted  a  bonus  equal  to  400%  of  Base  Salary  in  the  event  that,  during  the  Measurement Period, the Company has determined that its annualized gross production average for a consecutive  90-day period is equal to or exceeds 6,000 BOE per day.                     5.2.2                     (a)   The Company’s common stock maintains a 10-consecutive-day volume weighted  average price of:                           (1)   $2.30 per Share upon 1,500 BOE per day;                           (2)   $3.00 per Share upon 2,000 BOE per day;                           (3)   $4.50 per Share upon 3,000 BOE per day;                                              2  

 

                        (4)   $6.00 per Share upon 4,000 BOE per day;                           (5)   $7.50 per Share upon 5,000 BOE per day; or                           (6)   $9.00 per Share upon 6,000 BOE per day.                     (b)   The  Company  maintains an  aggregate  debt  to  earnings  before  interest,  taxes,  depreciation, depletion, amortization and exploration expenses (“EBITDAX”) ratio of 4.5 to 1. EBITDAX shall be  calculated by multiplying the Company’s 90-day EBITDAX during the applicable period set forth in Section 5.3.1  by 4.                     (c)   The Company maintains cash on hand (or equivalents) and/or availability of 10  times (i) the Incentive Bonus payable to Executive plus (ii) any substantially similar incentive bonuses payable to  any other service providers of the Company.               5.3   Performance Bonus. Executive will be granted a cash bonus equal to $50,000 when the  Company succeeds in timely filing its annual report on Form 10-K with the United States Securities and Exchange  Commission for the year ended December 31, 2016.               5.4   Annual Bonuses; Additional Compensation. Without limitation of Section 5.1, Executive  shall be eligible to receive bonuses and awards of equity and non-equity compensation and to participate in annual  and long-term compensation plans of the Company in accordance with any plan or decision that the Board, or any  committee or other person authorized by the Board, may in its sole discretion determine from time to time. The  target annual bonus for Executive as of the Effective Date shall be 250,000 shares of restricted stock.               5.5   Welfare and Benefit Plans. (i) Executive shall be entitled to participate in all savings and  retirement plans, practices, policies and programs of the Company and (ii) Executive and Executive’s family, as the  case  may  be,  shall  be  eligible  to  participate  in,  and  shall  receive  all  benefits  under,  all  welfare  benefit plans,  practices, policies and programs provided by the Company (including, to the extent provided, medical, prescription,  dental, vision, disability, life, accidental death and travel accident insurance plans and programs) (all such plans,  practices, policies and programs, the “Plans”), in each case pursuant to all terms and conditions of the Plans. Except  as provided herein, the Company shall not be required to establish or continue the Plans or take any action to cause  Executive to be eligible for any Plans on a basis more favorable than that applicable to its other executive-level  employees generally.               5.6   Reimbursement.  The  Company  shall  reimburse  Executive  (or,  in  the  Company’s  sole  discretion, shall pay directly), upon presentation of vouchers and other supporting documentation as the Company  may reasonably require, for reasonable out-of-pocket expenses incurred by Executive relating to the business or  affairs of the Company or the performance of Executive’s duties hereunder, including reasonable expenses with  respect to mileage, entertainment, travel and similar items, dues for membership in professional organizations, and  similar professional development expenses, provided that the incurring of such expenses shall have been approved  in accordance with the Company’s regular reimbursement procedures and practices in effect from time to time.                5.7   Vacation. In addition to statutory holidays, Executive shall be entitled to no less than 20  days of paid vacation each calendar year during the Term. Vacation shall accrue pursuant to the Company’s vacation  accrual policy applicable to all employees of the Company, provided that no more than 20 vacation days may be  carried over from one calendar year to a subsequent calendar year.                5.8   Reservation of Rights. The Company reserves the right to modify, suspend or discontinue  any and all of its employee benefit plans, practices, policies and programs at any time in its sole discretion without  recourse by Executive so long as such changes are similarly applicable to executive employees at a similar level.                                             3  

 

      6.    Payments upon Termination.               6.1   Accrued but Unpaid Salary and Bonus. In the event of a Termination for any reason during  the Term, the Company shall pay to Executive (or, in the event of Executive’s death, to Executive’s estate or named  beneficiary) (a) any Base Salary, vacation pay and expense reimbursements that are accrued but unpaid as of the  date of Termination and (b) (except upon a Termination by the Company for Cause) any earned but unpaid bonus  for any prior or current year.               6.2   Severance.                     (a)   Upon an Involuntary Termination during the Term and either prior to a Change in  Control or more than one year following a Change in Control, contingent upon Executive’s execution, delivery and  non-revocation of a release in form and substance satisfactory to the Company and consistent with the Company’s  standard  release  agreement,  which  contains  a  full release of all  claims  against the  Company  and  certain other  provisions, including a reaffirmation of the covenants in Section 12 and Section 13 (the “Release Agreement”),  Executive shall be entitled to (1) a lump sum severance payment in an amount equal to 12 months of Base Salary  in effect immediately prior to the date of Termination and (2) a lump sum payment equal to 12 months of COBRA  premiums based on the terms of Company’s group health plan and Executive’s coverage under such plan as of the  date of Termination (regardless of any COBRA election actually made by Executive or the actual COBRA coverage  period under the Company’s group health plan).                     (b)   Upon an Involuntary Termination during the Term and within one year following  a  Change  in  Control,  contingent  upon  Executive’s  execution,  delivery  and  non-revocation  of  the  Release  Agreement, Executive shall be entitled to (1) a lump sum severance payment in an amount equal to 24 months of  Base Salary in effect immediately prior to the date of Termination and (2) a lump sum payment equal to 24 months  of COBRA premiums based on the terms of Company’s group health plan and Executive’s coverage under such  plan as of the date of Termination (regardless of any COBRA election actually made by Executive or the actual  COBRA coverage period under the Company’s group health plan).                     (c)   Upon  a  Termination  due  to  Disability  during  the  Term,  contingent  upon  Executive’s execution, delivery and non-revocation of the Release Agreement, Executive shall be entitled to a lump  sum payment equal to six months of COBRA premiums based on the terms of the Company’s group health plan  and Executive’s coverage under such plan as of the date of Termination (regardless of any COBRA election actually  made by Executive or the actual COBRA coverage period under the Company’s group health plan).                     (d)   The Company’s obligations under this Section 6.2 are subject to the requirements  and  time  periods  set  forth  in  this Section 6.2 and  in  the  Release  Agreement.  Prior  to  receiving  the  payments  described in this Section 6.2, Executive shall execute the Release Agreement on or before the date 21 days (or such  longer period to the extent required by law) after the date of Termination. If Executive fails to timely execute and  remit the Release Agreement, Executive waives any right to the payments provided under this Section 6.2. Payments  under this Section 6.2 shall be made within fifteen 15 days of Executive’s execution and delivery of the Release  Agreement, provided that Executive does not revoke the Release Agreement.                     (e)   Executive’s rights following a Termination under the terms of any Plan, whether  tax-qualified or not, which are not specifically addressed in this Agreement, shall be subject to the terms of such  Plan, and this Agreement shall have no effect upon such terms except as specifically provided herein.                     (f)   Except as specifically provided under Section 6.1 and Section 6.2, the Company  shall have no further obligations to Executive under this Agreement following a Termination. Without limitation of  the foregoing, Executive shall not be entitled to any severance benefits under this Agreement in the event of a  Termination other than an Involuntary Termination (except as provided in Section 6.1). The foregoing shall not                                             4  

 

limit any of Executive’s rights with regard to any rights to indemnification, advancement or payment of legal fees  and costs, and coverage under directors and officers liability insurance.                     (g)   Notwithstanding anything in this Agreement to the contrary, the Company shall  have  the  right  to  terminate  all  payments  and  benefits  owing  to  Executive  pursuant  to Section 6.2 upon  the  Company’s discovery of any material breach by Executive of Executive’s obligations under the Release Agreement  or Section 12 or Section 13.         7.    Definitions. Capitalized terms used in this Agreement but not otherwise defined herein shall have  the meaning hereby assigned to them as follows:                7.1   “Cause” means a determination by the Board that Executive has:                     (a)   in the performance of Executive’s duties with respect to the Company or any of its  affiliates, engaged in reckless or willful misconduct or has violated the law, provided that no act or failure to act  shall be deemed “willful” unless done, or omitted to be done, by Executive not in good faith and without reasonable  belief that Executive’s action or omission was in the best interest of the Company;                     (b)   refused  without  proper  legal  reason  to  perform  Executive’s  duties  and  responsibilities to the Company or any of its affiliates, which continues after notice from the Company to perform  such duties and  responsibilities  (for the  purposes  of this  clause,  the  phrase  “proper legal reason” shall include  Executive’s delivery of a Notice of Termination for Good Reason where the assertion by Executive of Termination  for Good Reason is for an event that constitutes Good Reason under the terms of this Agreement);                     (c)   willfully and materially breached any material provision of this Agreement;                     (d)   committed  an  act  of  fraud,  embezzlement  or  breach  of  a  fiduciary  duty  to  the  Company  or  an  affiliate  of  the  Company  (including  the  unauthorized  disclosure  of  material  confidential  or  proprietary information of the Company or an affiliate of the Company);                     (e)   been convicted of (or pleaded no contest to) a felony (other than a crime involving  the operation of a motor vehicle not involving a serious injury or death to an individual); or                     (f)   entered  into  a  cease  and  desist  order  with  the  U.S.  Securities  and  Exchange  Commission alleging violation of U.S. or foreign securities laws.         Executive  shall  have  30  days  from  the  date  on  which  Executive  receives  the  Company’s  Notice  of  Termination for Cause under clause (a), (b) or (c) above to remedy any such occurrence otherwise constituting  Cause under such clause.         In connection with a determination of Cause, a majority of the Board shall make such determination at a  meeting of the Board called and held for such purpose (after reasonable notice to Executive and an opportunity for  Executive, together with counsel, to be heard before the Board).         A Termination for Cause shall be deemed to include a determination by the Board following a Termination  that  circumstances  existing  prior  to  the  Termination  would  have  entitled  the  Company  to  have terminated  Executive’s service for Cause.         All rights Executive has or may have under this Agreement shall be suspended automatically during the  pendency of any investigation by the Board, or during any negotiations between the Board and Executive, regarding  any actual or alleged act or omission by Executive of the type described in this definition of Cause.                                             5  

 

            7.2   “Change in Control” has the meaning given to such term in the Lilis Energy, Inc. 2016  Omnibus Incentive Plan.               7.3   “Disability” means, if, during the Term, Executive is unable to perform substantially and  continuously the duties assigned to him due to a disability (as such term is defined or used for purposes of the  Company’s long-term disability plan then in effect, or, if no such plan is in effect, by virtue of ill health or other  disability for more than 180 consecutive or non-consecutive days out of any consecutive 12-month period).               7.4   “Good Reason” means the occurrence of any of the following events without Executive’s  consent:                     (a)   a material diminution in Executive’s Base Salary; or                     (b)   a  material  diminution  in  Executive’s  authority,  duties  or  responsibilities  as  an  officer, or the Board fails to re-nominate Executive for election to the Board if Executive is a Board member as of  the Effective Date or becomes a Board member thereafter;                      (c)   the relocation of Executive’s principal place of employment by more than 25 miles  from the location of Executive’s principal place of employment as of the Effective Date; or                     (d)   a material breach by the Company of a material provision of this Agreement.   Notwithstanding  the  foregoing  provisions  of  this Section 7.4 or  any  other  provision  in  this  Agreement  to  the  contrary, any assertion by Executive of a Termination for Good Reason shall not be effective unless all of the  following conditions are satisfied: (1) Executive provides written notice to the Company of such condition within  45 days of Executive gaining knowledge of the initial existence of the condition, (2) the condition specified in the  notice remains uncured for 30 days after receipt of the notice by the Company and (3) the date of Termination  occurs within 30 days after the expiration of the cure period set forth in (2) immediately above.               7.5   “Involuntary Termination” means a Termination by the Company without Cause or by  Executive for Good Reason.               7.6   “Notice of Termination” means a written notice delivered by either Party to the other Party  indicating  the  specific  Termination  provision  in  this  Agreement  relied  upon  for  Termination  and  the  date  of  Termination, and that sets forth in reasonable detail the facts and circumstances claimed to provide a basis for  Termination under the provision so indicated.               7.7   “Termination” means termination of Executive’s employment with the Company and all  affiliates.         8.    Removal from any Boards and Positions. Unless otherwise agreed to in writing by the Parties at  the time of Termination, upon a Termination, Executive shall be deemed to resign (i) if a member, from the Board  and the board of directors of any affiliate and any other board to which Executive has been appointed or nominated  by or on behalf of the Company or an affiliate, (ii) from each position with the Company and any affiliate, including  as an officer of the Company or an affiliate and (iii) as a fiduciary of any employee benefit plan of the Company  and any affiliate.         9.    Adjustments to Payments.               9.1   Notwithstanding anything in this Agreement to the contrary, in the event that any payment  or distribution by the Company to Executive or for Executive's benefit (whether paid or payable or distributed or  distributable pursuant to the terms of this Agreement or otherwise) (the “Payments”) would be subject to the excise                                             6  

 

tax imposed by Section 4999 of the Internal Revenue Code of 1986 (the “Code”), or any interest or penalty is  incurred by Executive with respect to such excise tax (such excise tax, together with any such interest and penalties,  the “Excise Tax”), then the Payments shall be reduced (but not below zero) if and to the extent that such reduction  would result in Executive retaining a larger amount, on an after-tax basis (taking into account federal, state and  local income taxes and the imposition of the Excise Tax), than if Executive received all of the Payments. The  Company shall reduce or eliminate the Payments, by first reducing or eliminating the portion of the Payments that  are not payable in cash and then by reducing or eliminating cash payments, in each case in reverse order beginning  with payments or benefits that are to be paid the farthest in time from the determination.               9.2   All determinations required to be made under this Section 9, including whether and when  an adjustment to any Payments is required and, if applicable, which Payments are to be so adjusted, shall be made  by an independent accounting firm selected by the Company from among the four largest accounting firms in the  United States or any nationally recognized financial planning and benefits consulting company (the “Accounting  Firm”), which shall provide detailed supporting calculations to both Parties within 15 business days of the receipt  of notice from Executive that there has been a Payment, or such earlier time as is requested by the Company. In the  event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the  relevant change  in control, Executive  shall appoint another nationally recognized  accounting firm to make the  determinations  required  hereunder  (which  accounting  firm  shall  then  be  referred  to  as  the  Accounting  Firm  hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company. If the Accounting  Firm determines that no Excise Tax is payable by Executive, it shall furnish Executive with a written opinion that  failure  to  report  the  Excise  Tax  on  Executive's  applicable  federal  income  tax  return  would  not  result  in  the  imposition of a negligence or similar penalty. Any determination by the Accounting Firm shall be binding upon the  Parties.         10.   Clawback. Notwithstanding anything in this Agreement to the contrary, if any provision of this  Agreement or any applicable statute, law, regulation or regulatory interpretation or other guidance legally requires  the Company or any affiliate to seek or demand repayment or return of any payments made to Executive for any  reason, Executive shall repay to the Company the aggregate amount of any such payments, with such repayment to  occur no later than 30 days following Executive’s receipt of a written notice from the Company indicating that  payments received by Executive are subject to repayment or return under this Section 10.          11.   Withholding. The Company may withhold from Executive’s compensation, under this Agreement  or otherwise, all applicable amounts required by law.          12.   Non-Competition; Non-Solicitation; Anti-Raiding.                12.1  Executive  hereby  covenants  that  during  the  period  of  Executive’s  employment  by  the  Company, and for a period of six months following a Termination, Executive shall not, without the prior written  consent of the Board, accept a position to perform duties similar to those performed by Executive while at the  Company, directly or indirectly (whether as proprietor, stockholder, director, partner, employee, agent, independent  contractor, consultant, trustee or in any other capacity), with respect to any property, drilling program, oil or gas  leasehold, project or field, in which the Company participates, or has any investment or other business interest in,  within five miles of the boundary of any existing Company leasehold in the United States in which the Company  has conducted business at any time within the one-year period immediately preceding Termination (a “Competing  Enterprise”); provided, however, that Executive shall not be deemed to be participating or engaging in a Competing  Enterprise solely by virtue of Executive’s ownership of not more than 4.9% of any class of stock or other securities  which are publicly traded on a national securities exchange or in a recognized over-the-counter market.               12.2  Executive may not avoid the purpose and intent of Section 12.1 by engaging in conduct  within the geographically limited area from a remote location through means such as telecommunications, written  correspondence, computer-generated or assisted communications or other similar methods.                                             7  

 

      13.   Confidential Information.               13.1  For  the  purposes  of  this  Agreement,  “Confidential  Information”  means  all  proprietary  information,  data,  knowledge  and  know-how  relating,  directly  or  indirectly,  to  the  Company  and  its  business,  including:  (a) business  plans  and  strategies,  prospect  information,  financial  information,  investment  plans,  marketing plans and strategies and financial plans and strategies; (b) confidential personnel or human resources  data; (c) technical and business information, whether patentable or not, which is of a confidential, trade secret or  proprietary character; (d) the  identity of customers; (e) existing or prospective  oil or gas properties, investors,  participation  agreements,  working,  royalty  or  other  interests;  (f)  contract  terms;  (g)  bidding  information  and  strategies;  (h)  pricing  methods  or  information;  (i)  computer  software;  (j)  computer  software  methods  and  documentation; (k) hardware; (l) methods of operation; (m) procedures, forms and techniques used in servicing  accounts or properties; (n) seismic, geophysical, petrophysical or geological data; (o) well logs and other well data;  and (p) any other documents, information or data that the Company requires to be maintained in confidence for the  Company’s business success or that constitutes material non-public information. The list set forth above is not  intended by the Company to be a comprehensive list of Confidential Information. All Confidential Information shall  be  treated  as  Confidential  Information  regardless  of  whether  it  pertains  to  the  Company  or  its  customers  and  regardless of whether it is stamped as “confidential.”               13.2  Executive acknowledges that the success of the Company depends in large part on the  protection  of  the  Confidential  Information.  Executive  further  acknowledges  that  in  the  course  of  Executive’s  employment with the Company, Executive will become familiar with the Company’s Confidential Information.  Executive recognizes and acknowledges that the Confidential Information is a valuable, special and unique asset of  the Company’s business, access to and knowledge of which are essential to the performance of Executive’s duties  hereunder. Executive acknowledges that use or disclosure of the Confidential Information outside the performance  of Executive’s job duties for the Company would cause harm and/or damage to the Company.               13.3  Both  during  and  after  the  Term,  Executive  shall  not,  except  in  the  ordinary  course  of  Executive’s employment with the Company, disclose any Confidential Information to any person, firm, business,  company, corporation, association or any other entity for any reason or purpose whatsoever. Executive shall not  make use of any Confidential Information for Executive’s own purposes or for the benefit of any person, firm,  business, company, corporation or any other entity (except the Company) under any circumstances during or after  the Term. Executive shall consider and treat as confidential all Confidential Information in any way relating to the  Company’s business and affairs, whether created by Executive or otherwise coming into Executive’s possession  before, during, or after the Term. Executive shall secure and protect the Confidential Information in a manner  designed  to  prevent  all  access  and  uses  thereof  contrary  to  the  terms  of  this Agreement.  Executive  shall  use  Executive’s best efforts to assist the Company in identifying and preventing any use or disclosure of the Confidential  Information contrary to this Agreement.               13.4  Executive  represents  and  warrants  that,  upon Termination  (whether during  or  after the  Term),  and  without  any  request  by  the  Company,  Executive  shall  return  to  Company  any  and  all  property,  documents and files (including all recorded media, such as papers, computer disks or other data storage devices,  copies, photographs, maps, transparencies and microfiche) that contain Confidential Information or relate in any  way to the Company or its business. To the extent Executive possesses any files, data or information relating in any  way to the Company or its business on any personal computer, Executive shall delete such files, data or information  (and shall retain no copies in any form). Executive also shall return any Company tools, equipment, calling cards,  credit cards, access cards or keys, any keys to any filing cabinets or vehicles and all other Company property in any  form prior to Termination (whether during or after the Term).          14.   Equitable Remedies. The services to be rendered by Executive and the Confidential Information  entrusted to Executive as a result of Executive’s employment by the Company are of a unique and special character,  and,  notwithstanding  anything  in  this  Agreement  to the  contrary,  any  breach  by  Executive  of  this  Agreement,                                             8  

 

including  a  breach  of Section 12 or Section 13,  will cause  the  Company  immediate  and  irreparable  injury  and  damage, for which monetary relief would be inadequate or difficult to quantify. The Company shall be entitled to,  in addition to all other remedies available to it, injunctive relief, specific performance or any other equitable relief  to prevent a breach and to secure the enforcement of the provisions of this Agreement. The provisions of Section 12  and Section 13 are separate from and independent of the remainder of this Agreement and these provisions are  specifically enforceable  by the  Company notwithstanding any claim  made by Executive  against the  Company.  Injunctive relief may be granted immediately upon the commencement of any such action, and the Company need  not post a bond to obtain temporary or permanent injunctive relief.         15.   Business  Opportunities.  Executive  shall  promptly  disclose  to  the  Company  all  business  ideas,  prospects, proposals and other opportunities pertaining to any aspect of the Company’s business that are originated  by any third parties and brought to the attention of Executive after the Effective Date and before Termination.         16.   Representations and Warranties. Executive hereby represents and warrants to the Company, and  acknowledges, as follows.               16.1  The  success  of  the  Company’s  business  depends  in  large  part  on  the  protection  of the  Confidential Information and trade secrets.               16.2  Executive’s access to the Confidential Information, coupled with the personal relationships  and goodwill between the Company and its customers, would enable Executive to compete unfairly against the  Company.               16.3  Executive  has  full  power,  authority  and  capacity  to  enter  into  this  Agreement  and  to  perform Executive’s obligations hereunder.                16.4  This Agreement has been voluntarily executed by Executive and constitutes a valid and  binding agreement of Executive.               16.5  Executive has read this Agreement and has had the opportunity to have this Agreement  reviewed by Executive’s legal counsel.               16.6  Given  the  nature  of the  business in which the  Company is  engaged,  the  restrictions  in  Section 12 and Section 13, including their geographic scope and duration, are reasonable and necessary to protect  the legitimate business interests of the Company.               16.7  Executive’s continued employment with the Company is sufficient consideration for this  Agreement.               16.8  Executive is among the Company’s executive personnel, management personnel or officers  and employees who constitute professional staff to executive and management personnel.               16.9  This  Agreement  is  intended  to  protect  the  Company’s  trade  secrets  and  Confidential  Information.               16.10 To the best of Executive’s knowledge, Executive’s employment with the Company will  not (a) conflict with or result in a breach of, (b) constitute a default under, (c) result in the violation of, (d) give any  third party the right to terminate or to accelerate any obligation under, or (e) require any authorization, consent,  approval, execution or other action by or notice to any court or other governmental body under, the provisions of  any other agreement or instrument to which Executive is a party.                                             9  

 

            16.11 Executive  has  not  previously  and  shall  not  in  the  future  disclose  to  the  Company  any  proprietary information, trade secrets or other confidential information belonging to any previous employer.               16.12 Executive shall notify business partners and future employers of Executive’s obligations  under this Agreement.         17.   Waivers  and  Amendments.  The  respective  rights  and  obligations  of the  Parties  under  this  Agreement may be waived (either generally or in a particular instance, either retroactively or prospectively and  either for a specified period of time or indefinitely) or amended only with the written consent of a duly authorized  representative of the Parties. The waiver by either Party of a breach of any provision of this Agreement by the other  Party shall not operate or be construed as a waiver of any subsequent breach by such other Party. The failure of  either Party to insist upon strict performance of any of the terms or conditions of this Agreement shall not constitute  a waiver of any of such Party’s rights hereunder.         18.   Successors and Assigns. The provisions hereof shall inure to the benefit of, and be binding upon  and assignable to, successors of the Company by way of merger, consolidation or sale. Executive may not assign  or delegate to any third person Executive’s obligations under this Agreement. The rights and benefits of Executive  under this Agreement are personal to Executive (or, in the event of Executive’s death or Disability, Executive’s  personal  representative,  heirs  or  beneficiaries),  and  no  such  right  or  benefit  shall  be  subject  to  voluntary  or  involuntary alienation, assignment or transfer.          19.   Entire Agreement. This Agreement constitutes the full and entire understanding and agreement of  the  Parties  with  regard  to  the  subjects  hereof  and  supersedes  and  cancels  in  its  entirety  all  other  or  prior  or  contemporaneous  agreements,  whether  oral  or  written,  with  respect  thereto,  including  any  prior  employment  agreements between Executive and the Company in their entirety.         20.   Notices. Any notices, consents or other communications required to be sent or given hereunder by  either of the Parties shall in every case be in writing and shall be deemed properly served if (i) delivered personally,  (ii) sent by registered or certified mail, in all such cases with first class postage prepaid, return receipt requested, or  (iii) delivered by a nationally recognized overnight courier service to the Parties at the following addresses: if to the  Company, to its principal headquarters; and if to Executive, to Executive’s current address listed in the Company’s  records.         21.   Governing Law; Consent to Jurisdiction; Consent to Venue; Service of Process. This Agreement  shall be construed and interpreted in accordance with the internal laws of the State of New York without regard to  principles of conflicts of law thereof, or principles of conflicts of laws of any other jurisdiction that could cause the  application of the laws of any jurisdiction other than the State of New York. For purposes of resolving any dispute  that arises directly or indirectly from the relationship of the Parties evidenced by this Agreement, the Parties hereby  submit to and consent to the exclusive jurisdiction of the State of New York and agree that any related litigation  shall be conducted solely in the courts of New York County, New York or the federal courts for the United States  for the Southern District of New York, where this Agreement is made and/or to be performed, and no other courts.  Each Party may be served with process in any manner permitted under State of New York law, or by United States  registered or certified mail, return receipt requested.         22.   Waiver  of  Jury  Trial.  EACH  OF  THE  PARTIES  HEREBY  VOLUNTARILY  AND  IRREVOCABLY  WAIVES  ANY  RIGHT  IT  MAY  HAVE  TO  A  TRIAL  BY  JURY  IN  ANY  ACTION  OR  OTHER  PROCEEDING  BROUGHT  IN  CONNECTION  WITH  THIS  AGREEMENT  OR  ANY  OF  THE  TRANSACTIONS CONTEMPLATED HEREBY.          23.   Code Section 409A. It is intended that this Agreement comply with Code Section 409A (“Section  409A”), to the extent applicable. This Agreement shall be administered in a manner consistent with this intent, and  any provision that would cause this Agreement to fail to satisfy Section 409A shall have no force or effect until                                            10  

 

amended to comply with Section 409A. Notwithstanding anything in this Agreement to the contrary, in the event  any payment or benefit hereunder is determined to constitute nonqualified deferred compensation subject to Section  409A, then to the extent necessary to comply with Section 409A, such payment or benefit shall not be  made,  provided or commenced until six months after Executive’s separation from service. Lump sum payments shall be  made, without interest, as soon as administratively practicable following the six-month delay. Any installments  otherwise due during the six-month delay shall be paid in a lump sum, without interest, as soon as administratively  practicable following the six-month delay, and the remaining installments shall be paid in accordance with the  original schedule. For purposes of Section 409A, the right to a series of installment payments shall be treated as a  right to a series of separate payments. Each separate payment in the series of separate payments shall be analyzed  separately for purposes of determining whether such payment is subject to, or exempt from compliance with, the  requirements of Section 409A. Notwithstanding anything in this Agreement to the contrary, to the extent required  in  order  to  avoid accelerated  taxation  and/or  additional  taxes  under  Section  409A,  amounts  reimbursable  to  Executive under this Agreement shall be paid to Executive on or before the last day of the year following the year  in which the expense was incurred and the amount of expenses eligible for reimbursement (and in-kind benefits  provided to Executive) during any one year may not effect amounts reimbursable or provided in any subsequent  year.  The  Company  makes  no  representations  or  warranties  that  the  payments  provided  under  this  Agreement  comply with, or are exempt from, Section 409A, and in no event shall the Company be liable for any portion of any  taxes, penalties, interest or other expenses that may be incurred by Executive on account of non-compliance with  Section 409A.         24.   Severability. In case any provision of this Agreement shall be invalid, illegal or unenforceable, the  validity, legality and enforceability of the remaining provisions of this Agreement shall not in any way be affected  or impaired thereby. In the event any provision is held invalid, illegal or unenforceable, such provision shall be  limited or revised by a court of competent jurisdiction so as to give effect to the provision to the fullest extent  permitted by applicable law. If any of the covenants in Section 12 are held to be unreasonable, arbitrary or against  public policy, such covenants shall be considered divisible with respect to scope, time and geographic area, and in  such lesser scope, time and geographic area, shall be effective, binding and enforceable against Executive to the  greatest extent possible.          25.   Construction. In this Agreement, unless otherwise stated, the following uses apply: (i) references  to a statute or law refer to the statute or law and any amendments and any successor statutes or laws, and to all valid  and binding governmental regulations, court decisions and other regulatory and judicial authority issued or rendered  thereunder, as  amended, or their successors, as in effect at the relevant time; (ii) in computing periods from a  specified date to a later specified date, the words “from” and “commencing on” (and the like) mean “from and  including,” and the words “to,” “until” and “ending on” (and the like) mean “to and including”; (iii) indications of  time of day shall be based upon the time applicable to the location of the principal headquarters of the Company;  (iv) the words “include,” “includes” and “including” (and the like) mean “include, without limitation,” “includes,  without limitation” and “including, without limitation” (and the like), respectively; (v) all references to articles and  sections are to articles and sections in this Agreement; (vi) all words used shall be construed to be of such gender  or number as the circumstances and context require; (vii) the captions and headings of articles and sections have  been inserted solely for convenience of reference and shall not be considered a part of this Agreement, nor shall  any of them affect the meaning or interpretation of this Agreement or any of its provisions; (viii) any reference to  an agreement, plan, policy, form, document or set of documents, and the rights and obligations of the parties under  any such agreement, plan, policy, form, document or set of documents, shall mean such agreement, plan, policy,  form, document or set of documents as amended from time to time, and any and all modifications, extensions,  renewals,  substitutions  or  replacements  thereof;  and  (ix) all  accounting  terms  not  specifically  defined  shall  be  construed in accordance with generally accepted accounting principles.         26.   Survival.  The  provisions  of Section 12 and Section 13 shall  survive  the  termination  of  this  Agreement.                                             11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00286-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00286-of-00352.parquet"}]]