Document:

EX-10.4

Exhibit 10.4

MAGELLAN PETROLEUM CORPORATION

NON-QUALIFIED STOCK OPTION

PERFORMANCE AWARD AGREEMENT

     This Agreement, made as of the grant date indicated in Section 3 below (the “Grant
Date”), and between Magellan Petroleum Corporation, a Delaware corporation (the “Company”), and the
undersigned individual (the “Optionee”), pursuant to the Magellan Petroleum Corporation 1998 Stock
Option Plan, as amended on October 24, 2007, as further amended and renamed the “1998 Stock
Incentive Plan” on December 11, 2008 (the “Plan”). Terms used but not defined herein shall have
the same meaning as in the Plan).

     Whereas, the Optionee is the President and Chief Executive Officer and a director of
the Company and the Company; and

     Whereas, the Company, acting through the Compensation Committee and the full Board of
Directors has approved the award of Nonqualified Stock Options (“Options”) under the Plan to the
Optionee (the “Award”).

     Now, Therefore, in consideration of the terms and conditions of this Agreement and
pursuant to the Plan, the parties agree as follows:

	1.	 	Grant of Options. The Company hereby awards to the Optionee the right and option to
purchase from the Company, at the exercise price set forth in Section 3 below, all or any part
of the aggregate number of shares of common stock, par value $0.01 per share, of the Company,
as such common shares are presently constituted (the “Stock”), set forth in said Section 3.
	 
	2.	 	Terms and Conditions. It is understood and agreed that the Options evidenced hereby
shall at all times be subject to the provisions of the Plan (which are incorporated herein by
reference) and the following terms and conditions:

	 	(a)	 	Expiration Date. The Options evidenced hereby shall expire on the
date specified in Section 3 below, or earlier as provided in Section 7 of the Plan.
	 
	 	(b)	 	Exercise of Option. The Options evidenced hereby shall be
exercisable from time to time by (i) providing written notice of exercise ten (10)
days prior to the date of exercise specifying the number of shares for which the
Options are being exercised, addressed to the Company at its principal place of
business, and (ii) either:

	 	(A)	 	Cash Only Exercise – submitting the full cash purchase price
of the exercised Stock; or

 

 

	 	(B)	 	Cashless Exercise – submitting appropriate authorization for
the sale of Stock in an amount sufficient to provide the full purchase price
in accordance with Section 5(d) of the Plan, or
	 
	 	(C)	 	Combination – tendering a combination of (i) and (ii) above.

	 	(c)	 	Withholding Taxes. Without regard to the method of exercise and
payment, the Optionee shall pay to the Company, upon notice of the amount due, any
withholding taxes payable with respect to such exercise, which payment may be made
with shares of Stock which would otherwise be issued pursuant to the Options.
	 
	 	(d)	 	Vesting. The shares covered by the Options shall vest in full upon
the attainment of either of the following mutually acceptable performance goals: (i)
upon monetizing the uncontracted gas reserves held by Magellan Petroleum Australia
Limited, the Company’s wholly-owned subsidiary), at the Amadeus Basin fields, or (ii)
upon the Closing Price of the Company’s Stock being at or above $1.50 per share of
Stock for a period of sixty (60) consecutive trading days. For purposes of this
Section 2(d), the term “Closing Price” shall mean either: (i) if the Stock is listed
on a national securities exchange or quoted on the NASDAQ National Market or NASDAQ
Capital Market, then the Closing Price per share of the shall be the last sale price
per share of the Common Stock in the principal trading market for the Common Stock on
such date, as reported by the exchange or NASDAQ, as the case may be; (ii)  if the
Stock is not listed on a national securities exchange or quoted on the NASDAQ National
Market or NASDAQ Capital Market, but is traded in the over-the-counter market, then
the “Closing Price” per share of the Stock shall be the closing bid price per share
for the Stock on such date, as reported by the OTC Bulletin Board or the National
Quotation Bureau, Incorporated or similar publisher of such quotations.
	 
	 	(e)	 	Acceleration. The Options evidenced hereby shall immediately be
accelerated and vest in full upon:

	 	(i)	 	a “change of control” of the Company as defined in Section 15 of the Plan;
	 
	 	(ii)	 	the Company’s termination of the Optionee’s employment with the Company
without “Cause” (as such term is defined in the Optionee’s Employment Agreement with
the Company); or
	 
	 	(iii)	 	upon the Optionee’s resignation from the Company for “Good Reason” (as such
term is defined in the Optionee’s Employment Agreement with the Company.
	 
	 	(f)	 	Compliance with Laws and Regulations. The Options evidenced hereby
are subject to restrictions imposed at any time on the exercise or delivery of

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	 	 	 	shares in violation of the By-Laws of the Company or of any law or governmental
regulation that the Company may find to be valid and applicable.
	 
	 	(g)	 	Interpretation. Optionee hereby acknowledges that this Agreement is
governed by the Plan, a copy of which Optionee hereby acknowledges having received,
and by such administrative rules and regulations relative to the Plan and not
inconsistent therewith as may be adopted and amended from time by the Committee (the
“Rules”). Optionee agrees to be bound by the terms and provisions of the Plan and the
Rules.

	3.	 	Option Data.

	 	 	 
	Optionee’s Name:

	 	William H. Hastings
	 
	 	 
	Number of shares of Stock Subject to this Option:

	 	875,000 shares
	 
	 	 
	Grant Date:

	 	December 11, 2008
	 
	 	 
	Exercise Price Per Share:

	 	$1.20 per share
	 
	 	 
	Expiration Date:

	 	December 11, 2018

	4.	 	Award of Options Contingent Upon Shareholder Approval. The award of the Options to
the Optionee hereby are expressly conditioned upon, and shall only take effect, if the
Company’s shareholders approve an amendment and restatement of the Plan at either (i) the
Company’s 2008 annual meeting of shareholders to be held in the near future, or (ii) at any
subsequent annual or special meeting of shareholders of the Company held on or before December
31, 2009, which approval is required under the terms of the Plan and the listing requirements
of the Nasdaq Stock Market, Inc. Optionee acknowledges and agrees that, should the required
shareholder approval of the Plan not be obtained on or prior to December 31, 2009, then the
Award of Options evidenced hereby shall be null and void and of no further force and effect.
	 
	5.	 	Miscellaneous. This Agreement and the Plan (a) contains the entire Agreement of the
parties relating to the subject matter of this Agreement and supersedes any prior agreements
or understandings with respect thereto; and (b) shall be binding upon and inure to the benefit
of the Company, its successors and assigns and the Optionee, his heirs, devisees and legal
representatives. In the event of the Optionee’s death or a judicial determination of his
incompetence, reference in this Agreement to the Optionee shall be deemed to refer to his
legal representative, heirs or devisees, as the case may be.

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* * * * * *

     In Witness Whereof, the Company has caused this instrument to be executed by its
authorized officer, as of the date identified below.

	 	 	 	 	 	 	 	 	 
	Agreed to:	 	 	 	MAGELLAN PETROLEUM CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ William H. Hastings

	 	 	 	By:
	 	/s/ Walter McCann	 	 
	 

	 	 	 	 	 	 	 	 
	Optionee: William H. Hastings

	 	 	 	 	 	Name: Walter McCann	 	 
	 

	 	 	 	 	 	Title: Chairman of the Board	 	 

Date: February 3, 2009

-4-EX-10.1

Exhibit 10.1

EXECUTION COPY

February 6, 2009

Mr. Jeffrey F. Sagansky

53 East 80th Street

New York, NY 10021

     Re:      Non-Executive Chairman of the Board

Dear Jeff:

     This letter agreement (the “Agreement”) confirms the understanding reached between you
and RHI Entertainment, Inc., a Delaware corporation (the “Company”) regarding the terms of
your services with the Company and its affiliates.

     1. During the term of your services under this Agreement, you will serve as Non-Executive
Chairman of the Company’s Board of Directors (the “Board”). In connection with your
services as Chairman of the Board, you will be an employee of RHI Entertainment, LLC, a Delaware
limited liability company (“RHI LLC”), but you will not be an executive or an officer of
the Company, RHI LLC, or any of their respective affiliates (collectively, “RHI”). You
will devote your substantial efforts and time to the business of RHI, as reasonably appropriate to
satisfy your duties as Chairman of the Board (it being understood that you will not be required to
devote your exclusive efforts and time to the business of RHI under this Agreement) and will use
your efforts, skills and abilities to promote the interests of RHI.

     2. Your employment with RHI LLC and your services as Non-Executive Chairman of the Board will
commence as of February 9, 2009 (the “Effective Date”).

     3. You will be paid a base salary at the rate of $500,000 per year, which will be payable in
accordance with RHI LLC’s customary payroll practices and subject to applicable deductions and
withholding. You may also be awarded an annual or other bonus at the sole discretion of the Board.

     4. Unless you decline, you will receive employee benefits commensurate with RHI’s other senior
executives at your level. Our Human Resources Department will provide you with information
regarding these benefits.

     5. As of the Effective Date, you will be granted 350,000 restricted stock units and an option
to purchase 350,000 shares of the Company’s common stock pursuant to the RHI Entertainment, Inc.
2008 Incentive Award Plan, evidenced by a Restricted Stock Unit Award Grant Notice and Restricted
Stock Unit Award Agreement in substantially the form attached hereto as Exhibit A and a
Stock Option

 

 

Grant Notice and Stock Option Agreement in substantially the form attached hereto as Exhibit
B. In addition, on, or as soon as reasonably practicable following, the Effective Date, you
will be awarded certain profits interests in KRH Investments LLC, a Delaware limited liability
company, pursuant to a Profits Interest Award Term Sheet in substantially the form attached hereto
as Exhibit C.

     6. Your employment with RHI LLC is for no specified period and constitutes “at-will”
employment. Your employment may be terminated by you or RHI LLC at any time, for any reason or for
no reason, upon a minimum of 60 days’ written notice. In the event of termination of your
employment, you agree that you will tender your resignation as Chairman of the Board, effective on
the date of your termination of employment with RHI LLC (or such earlier date as requested by the
Company), and you will not be entitled to any payments, benefits, damages, awards or compensation
other than as may otherwise be available in accordance with RHI’s established employee plans and
policies at the time of termination.

     7. You will have the use of a dedicated office at RHI while working on RHI business. We will
also provide space at our offices for your assistant, and will compensate her on a pro rata basis
for the time she devotes to RHI. You agree that you will bear full and complete responsibility and
liability for the payment and administration of your assistant’s compensation and the terms and
conditions of her employment, and you will comply with all applicable laws and regulations. You
agree to indemnify and hold RHI harmless for any claims or damages arising from your assistant’s
use of our office, unless the claim is based on wrongful conduct by an employee of RHI while your
assistant is performing work on behalf of RHI.

     8. You agree that you will not, during your services with RHI or thereafter, divulge to anyone
(other than RHI or any persons designated by RHI) any knowledge or information of any type
whatsoever of a confidential nature relating to the business of RHI, including, without limitation,
all types of trade secrets, business strategies, marketing and distribution plans. You further
agree that you will not disclose, publish or make use of any such knowledge or information of a
confidential nature (other than in the performance of your duties hereunder) without the prior
written consent of RHI. This provision does not apply to information which you are required to
disclose in legal proceedings, provided you give advance written notice to the Board and an
opportunity for RHI to resist such disclosure.

     9. You agree that during your services with RHI and for a period of one year thereafter, you
will not employ or attempt to employ or assist anyone else to employ any person who is, as of the
date of termination of your employment, working as an officer, policymaker or in creative
development (including without limitation executive employees) for or rendering services as such to
RHI. You agree not to disparage RHI, any of its products or practices, or any of its directors,
officers, agents, representatives, stockholders or affiliates, either orally or in writing, at any
time.

     10. The payments and benefits payable under this Agreement are not intended to constitute
“nonqualified deferred compensation” within the meaning of Section 409A of the Internal Revenue
Code of 1986, as amended, and any ambiguities in this Agreement should be interpreted accordingly.

     11. Notices to RHI under this Agreement should be sent or delivered to Henry S. Hoberman,
Executive Vice President, General Counsel & Secretary of RHI, at RHI’s New York office. Notices to
you will be sent or delivered to your residence address.

2

 

     Please indicate your acceptance of the terms and provisions of this Agreement by signing two
copies of this Agreement and returning one copy to me. The other copy is for your files. By
signing below, you acknowledge and agree that you have carefully read this Agreement in its
entirety, fully understand and agree to its terms and provisions, and intend and agree that it be
final and legally binding on you and the Company. This Agreement will be governed and construed
under the internal laws of the State of New York without regard to its conflicts of laws provisions
and may be executed in several counterparts.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	/s/ Henry S. Hoberman
 	 
	 	Name:  	Henry S. Hoberman 	 
	 	Title:  	Executive Vice President, General Counsel
& Secretary 	 
	 

Agreed and Accepted:

/s/ Jeffrey F. Sagansky                              

Jeffrey F. Sagansky

3

 

EXHIBIT A

Restricted Stock Unit Award Grant Notice and Restricted Stock Unit Award Agreement

 

 

EXHIBIT B

Stock Option Grant Notice and Stock Option Agreement

 

 

EXHIBIT C

Profits Interests Award Term Sheet

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