Document:

hybridexh4_93.htm

    
      

    

    EXHIBIT
4.9.3

     

     

    FORM OF
CLASS B WARRANT AGREEMENT

    

    NEITHER
THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY STATE
SECURITIES LAWS AND MAY NOT BE TRANSFERRED IN VIOLATION OF SUCH ACT OR LAWS, THE
RULES AND REGULATIONS THEREUNDER AND THE PROVISIONS OF THIS
WARRANT.

    

    

    WARRANT
TO PURCHASE SHARES

    OF COMMON
STOCK OF

    HYBRID
DYNAMICS CORPORATION

    

    Issued
to

    

    ______________________________________

    Name of
Warrant Holder

    

    ______________________________________

    Date

    

    ______________________________________

    Number of
Shares

    

    Warrant
No. #B-2009-[____]

    

    HYBRID
DYNAMICS CORPORATION

    (Incorporated
under the laws of the State of Nevada)

    

    

    This
certifies that (the "Warrant Holder") is the owner of a Warrant, subject to
adjustment as provided in Section 3 hereof, which entitles the owner thereof to
purchase, in whole or in part, and from time to time, as provided in Section 1
hereof, fully paid and nonassessable shares of the common stock, $.00015 par
value (the "Common Stock") of HYBRID DYNAMICS CORPORATION, a Nevada corporation
(the "Company"), at the purchase price of $5.00 per share (the "Purchase
Price"), subject to adjustment as provided in Section 3 hereof, payable in
lawful money of the United States of America upon surrender of this Warrant at
the principal office of the Company (currently 52-66 Iowa Avenue, Paterson, NJ
07503) or at such other place as the Company may designate by written notice to
the Warrant Holder. On the date hereof, the Warrant Holder paid the Company an
aggregate price of $100 in consideration for the Warrant.

    

    1.           Exercise.

    

    1.1.        The
Warrant evidenced hereby is immediately exercisable as to the number of shares
of Common Stock as set forth above and shall terminate at 5:00 p.m., New York
time, on June 30, 2014; provided, however, that in no event may any fractional
share of the Common Stock be issued.

    

    1.2.        Upon
any exercise of the Warrant evidenced hereby, the form of election to purchase
set forth as Exhibit A hereto shall be properly completed, executed, and
delivered to the Company,

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    together
with a certified check or wire transfer in full payment to the Company of the
Purchase Price for the shares as to which the Warrant is
exercised.  In the event that there is only a partial exercise of the
Warrant evidenced hereby, there shall be issued to the Warrant Holder a new
Warrant Certificate, in all respects similar to this Warrant Certificate,
evidencing the number of shares of the Common Stock still available for
exercise.

    

    1.3.        As
soon as practicable after the warrant exercise and upon the receipt of full
payment and properly completed documentation, but in any event within five (5)
business days from the date of such receipt, the Company, at its sole cost and
expense (including the payment of any applicable issuance taxes) shall then
cause the Transfer Agent for the Common Stock to issue and deliver certificates
evidencing fully paid and nonassessable shares of the Common Stock in the
amounts and in such names as are represented by the exercise.

    

    1.4.        If
this Warrant shall be surrendered upon exercise within any period during which
the transfer books for the Common Stock are closed for any purpose, the Company
shall not be required to make delivery of certificates for shares of the Common
Stock until the date of the reopening of said transfer books.

    

    2.           Expiration
Date.

    

    The
Warrant evidenced hereby may not be exercised after the expiration date set
forth in Section 1 hereof with respect to the shares of the Common Stock as to
which the Warrant may be exercised and, to the extent any such shares are not
exercised by such expiration date, the Warrant evidenced hereby shall become
void.

    

    3.           When
Exercise Effective.

    

    Each
exercise of this Warrant shall be deemed to have been effected immediately prior
to the close of business on the Business Day on which this Warrant shall have
been surrendered to the Company as provided in Section 1.1. At such time, the
person or persons in whose name or names any certificate or certificates for
shares of Common Stock shall be issuable upon such exercise as provided in
Section 1.3 shall be deemed to have become the stockholder(s) of record
thereof.

    

    4.           Representations
of Warrant Holder.

    

    The
Warrant Holder represents, warrants and acknowledges to the Company
that:

    

    (a)         it
is an accredited investor within the meaning of Regulation D promulgated under
the Securities Act of 1933;

    

    (b)      
  it has been furnished with and has carefully read all documents that
the Holder has deemed necessary in connection with its investment in the Warrant
and is aware of the merits and risks of an investment in the Warrant to be
purchased by it and, due to its knowledge and experience in financial and
business matters, is capable of evaluating the merits and risks of such
investment;

    

    (c)    
    it has been given the opportunity to ask questions of,
and receive answers from, the Company (including its authorized representatives)
concerning the terms and conditions of the Warrant to be purchased by it and
other matters pertaining to an investment in the Warrant, in order for the
Warrant holder to evaluate the merits and risks of an investment in the Warrant
to be

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    purchased
by it to the extent the Company possesses such information or can acquire it
without unreasonable effort or expense;

    

    (d)       
 it is aware this Warrant has not been registered under the Securities Act,
or any state securities or blue sky laws and, therefore, the Warrant cannot be
resold unless it is registered under such laws or unless an exemption from
registration thereunder is available;

    

    (e)    
    it is purchasing the Warrant for its own account for
investment, and not with a view to, or for resale in connection with the
distribution thereof, and has no present intention of distributing or reselling
the Warrant; and

    

    (f)       
  in making the foregoing representations, it is aware that it must
bear, and is able to bear, the economic risk of such investment for an
indefinite period of time.

    

    5.           Representations
of the Company.

    

    The
Company represents, warrants and acknowledges to the Warrant Holder
that:

    

    (a)         it
is a corporation duly formed and validly existing in the State of
Nevada;

    

    (b)         the
Company will at all times reserve and keep available, solely for issuance and
delivery upon the exercise of the Warrants, the number of shares of common stock
from time to time issuable upon the exercise of all Warrants at the time
outstanding. All such securities shall be duly authorized and, when issued upon
such exercise, shall be validly issued and, in the case of shares, fully paid
and non-assessable with no liability on the part of the holders
thereof.

    

    (c)         this
Warrant has been duly authorized and approved by all requisite action of the
Company, and constitutes a valid and binding agreement of the Company;
and

    

    (d)         when
issued in accordance with the terms of this Warrant, the shares of Common Stock
covered by this Warrant will be duly authorized and validly issued, fully paid
and non-assessable.

    

    6.           Adjustments

    

    Unless
otherwise provided, this Section 6 shall have full force and effect until the
expiration of the Warrants.  Subject to the provisions of this Section
6, the Purchase Price and the shares of the Common Stock as to which the Warrant
may be exercised shall be subject to adjustments from time to time as
hereinafter set forth:

    

    (a)           In
the case if Company at any time for from time to time conduct a capital
reorganization, declare a dividend, or make a distribution, on the outstanding
shares of common stock in shares of common stock or subdivide or reclassify the
outstanding shares of common stock into a greater number of shares or combine or
reclassify the outstanding shares of common stock into a smaller of shares of
common stock, and in each case,

     

      (i)        the
number of shares of common stock into which the Warrant is exercisable shall be
adjusted so that the holder shall be entitled to receive, upon the exercise
thereof, the number of shares of common stock which the holder would have been
entitled to receive after the happening of any of the events described above had
the Warrant been exercised immediately prior to the happening of such event or
the record date therefore, whichever is earlier.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)         Irrespective
of any adjustments or change in the Purchase Price or the number of securities
actually purchasable under the Warrant, the Warrant theretofore and thereafter
issued may continue to express the exercise price and the number of securities
purchasable thereunder as the Purchase Price and the number of securities
purchasable as expressed in the Warrant when initially issued.

    

    (d)         If
at any time while the Warrant is outstanding, the Company shall consolidate
with, or merge into, another corporation, firm, or entity, or otherwise enter
into a form of business combination, the Warrant Holder shall thereafter be
entitled upon exercise thereof to purchase, with respect to each security
purchasable thereunder immediately prior to the date on which such consolidation
or merger or other form of business combination shall become effective, the
securities or property to which a holder of one such security would have been
entitled upon such consolidation or merger or other form of business
combination, without any change in, or payment in addition to, the Purchase
Price in effect immediately prior to such consolidation or merger
or  other form of business combination, and the Company shall take
such steps in connection with such consolidation or merger or other form of
business combination as may be necessary to assure that all the provisions of
the Warrant shall thereafter be applicable, as nearly as reasonably may be, in
relation to any securities or property thereafter deliverable upon the exercise
of the Warrants. The Board of Directors of the Company, in its discretion, may,
at any time during the exercise period of the Warrant, extend the exercise
period or reduce the Purchase Price for the Warrants) Upon the happening of any
event requiring the adjustment of the exercise price hereunder, the Company
shall forthwith give written notice thereof to the registered holder of the
Warrant stating the adjusted Purchase Price and the adjusted number of
securities purchasable upon the exercise thereof resulting from such event and
setting forth in reasonable detail the method of calculation and the facts upon
which such calculation is based. The certificate of the Company's independent
public accountants shall be conclusive evidence of the correctness of any
computation made hereunder.

    

    7.           De
Minimis Adjustments.

    

    No
adjustment in the number of shares of common stock purchasable hereunder shall
be required unless such adjustment would require an increase or decrease of at
least one percent (1%) in the number of shares of Common Stock purchasable upon
the exercise of each Warrant; provided, however, that any adjustments which by
reason of this Section 7 are not required to be made shall be carried forward
and taken into account in any subsequent adjustment. All calculations shall be
made to the nearest whole share.

    

    8.           Intentionally
Omitted

    

    9.           Notice
to Warrant Holder

    

    Nothing
contained herein shall be construed as conferring upon the Warrant Holder the
right to vote or to consent or to receive notice as a stockholder in respect of
the meetings of stockholders for the election of directors of the Company or any
other matter, or any other rights whatsoever as a stockholder of the Company;
provided, however, that in the event that:

    

    (a)         the
Company shall take action to make any distribution (other than cash dividends
payable out of earnings or earned surplus) on the Common Stock;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)         the
Company shall take action to offer for subscription pro rata to the holders of
the Common Stock any additional shares of stock of any class or other rights or
securities convertible into the Common Stock;

    

    (c)         the
Company shall take action to accomplish any capital reorganization, or
reclassification of the capital stock of the Company (other than a change in par
value, or a change from par value to no par value, or a change from no par value
to par value, or a subdivision or combination of the Common Stock), or a
consolidation or merger of the Company into, or a sale of all or substantially
all of its assets to, another corporation; and the Company shall take action
looking to a voluntary dissolution, liquidation or winding up of the
Company:

    

    Then, in
any one or more of such cases, the Company shall, (x) at least 10 days prior to
the date on which the books of the Company shall close or a record date shall be
taken for such distribution or subscription rights or for determining rights to
vote in respect of any such reorganization, reclassification, consolidation,
merger, sale, dissolution, liquidation or winding up, cause notice thereof to be
sent to the Warrant Holder at the address appearing on the Warrant register of
the Company and, (y) in the case of any such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or winding up, cause at
least 10 days' prior written notice of the date when the same shall take place
to be given to the Warrant Holder in the same manner. Such notice in accordance
with the foregoing clause (x) shall also specify, in the case of any such
distribution or subscription rights, the date on which the holders of the Common
Stock shall be entitled thereto, and such notice in accordance with the
foregoing clause (y) shall also specify the date on which the holders of the
Common Stock shall be entitled to exchange their shares of the Common Stock for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation or
winding up, as the case may be. Failure to give such notice or any defect
therein shall not affect the legality or validity of any of the matters set
forth in this Section 9.

    

    10.         Transfers
and Exchanges

    

    The
Company shall transfer, from time to time, any outstanding Warrant upon the
books to be maintained by the Company for that purpose, upon surrender thereof
for transfer properly endorsed or accompanied by appropriate instructions for
transfer. Upon any such transfer, a new Warrant shall be issued to the
transferee and the surrendered Warrant shall be canceled by the Company. The
Warrant so canceled shall be delivered to the Company from time to time upon
request. Warrants may be exchanged at the option of the holder thereof, when
surrendered at the office of the Company, for another Warrant, or other Warrants
of different denominations, of like tenor and representing in the aggregate the
rights to purchase a like number of shares. Anything in this Section 9 to the
contrary notwithstanding, no transfer shall be made if such transfer would
violate Section 5 of the Securities Act.

    

    11.         Payment
of Taxes

    

    The
Company will pay any documentary stamp taxes attributable to the initial
issuance of the Common Stock issuable upon the exercise of the Warrant;
provided, however, that the Company shall not be required to pay any tax or
taxes which may be payable in respect of any transfer involved in the issue or
delivery of any certificates for the Common Stock in a name other than that
of  the registered holder of the Warrant in respect of which shares
are issued, and in such case the Company shall not be required to issue or
deliver any certificates for the Common Stock or any Warrant for remaining
shares until the person requesting the same has paid to the
Company

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    the
amount of such tax or has established to the Company's satisfaction that such
tax has been paid.

    

    12.         Mutilated
or Missing Warrant

    

    In case
the Warrant shall be mutilated, lost, stolen, or destroyed, the Company may in
its discretion issue and deliver in exchange and substitution for, and upon
cancellation of, the mutilated Warrant, or in lieu of, and in substitution for,
the Warrant lost, stolen, or destroyed, a new Warrant of like tenor and
representing an equivalent right or interest, but only upon receipt of evidence
satisfactory to the Company of such loss, theft, or destruction of such Warrant.
Applicants for such substitute Warrant shall also comply with such other
reasonable regulations and pay such reasonable charges as the Company may
prescribe.

    

    13.         Reserve

    

    The
Company covenants and agrees that, from time to time, there will be authorized
and available for delivery a sufficient number of its shares of the Common Stock
or other securities into which the Warrant is then exercisable to permit the
exercise of the Warrant at the time outstanding as and when the certificates
shall, from time to time, be deliverable in accordance with Section 1 hereof. In
the event that there are insufficient shares or other securities for such
purpose, the Company shall use its best efforts to seek stockholder approval for
an Amendment to the Company's Certificate of Incorporation and/or to take such
other action as is necessary or appropriate to cause such shares or other
securities to be authorized.

    

    14.         Governing
Law

    

    The
Warrant evidenced hereby shall be construed and enforced in accordance with the
laws of the State of Nevada applicable to contracts made and to be performed in
that State, without giving effect to any principles of conflicts of
laws.

    

    IN
WITNESS WHEREOF, the undersigned has caused this Warrant to be signed manually
by a duly authorized officer.

    

    
      	
              HYBRID
      DYNAMICS CORPORATION

               

            	 
      	 
      
	 
      	 
      	 
      
	
              By:_________________________

            	 
      	
              ___________________

            
	
              Print
      Name:

            	 
      	
              Date

            
	
              Print
      Title

            	 
      	 
      

    

    

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Exhibit
A

    to

    WARRANT

    

    ELECTION
TO PURCHASE

    

    To:        
 Hybrid Dynamics Corporation

    892 North
340 East

    American
Fork, UT 84003

    

    (A)              The
undersigned registered holder of the within Warrant hereby irrevocably exercises
the Warrant pursuant to Section 1(2) of the Warrant with respect to
_________________(_____) shares of the Common Stock, at an exercise price per
share of Common Stock of $____, which the holder would be entitled to receive
upon the cash exercise hereof, and requests that the certificates for such
shares be issued in the name of, and delivered to, whose address
is:

    

    (B)              The
undersigned registered holder of the within Warrant hereby irrevocably exercises
the Warrant pursuant to Section 1(2) of the Warrant with respect to
_________________(_____) shares (the “Shares”) of the Common Stock, and hereby
authorizes Hybrid Dynamics Corporation. to withhold ________ shares of Common
Stock having a total value of $__________, such value being determined in
accordance with the terms of this Warrant, from the Shares otherwise to be
received, and requests that the certificates for the Shares be issued in the
name of, and delivered to ______________, whose address is:

    

    Dated:
_______________

    

     

    ________________________________________

    Print or
Type Name

     

    ________________________________________

    (Signature
must conform in all respects to name of holder as specified on the face of
Warrant)

     

    ________________________________________

    (Street
Address)

     

    ________________________________________

    (City)                      (State)      (Zip
Code)

    

    

    Note:    The
above signature must correspond with the name as written upon the face of this
Warrant Certificate in every particular, without alteration or enlargement or
any change whatever.ex10_9.htm

Exhibit 10.9

 
Employment Agreement

 

James Ledbetter

 

 

 

 

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (this "Agreement") by and between ERHC Energy Inc, a Colorado corporation ("Company"), and James Ledbetter ("Employee") is effective from December 18 2006.

 

The Company and the Employee agree as follows:

 

1.      Employment. Subject to the provisions for termination as hereinafter provided, Employee's employment with Company shall be pursuant to the terms of this Agreement and shall be for the period commencing on December 18
2006 (the "date of Commencement") and expiring 24 months after the date of Commencement, which period is hereinafter called "the Primary Term."

 

2.      Renewal. Subject to the provisions for termination as hereinafter provided, the Company and the Employee may, at any time before the expiration of the Primary Term, mutually agree that the Employment shall be renewed
at the expiration of the Primary Term on the same terms and conditions as are contained herein or on such other terms and conditions as the Company and the Employee may then mutually agree.

 

3.      Duties. The Employee shall serve as Vice-President Technical of the Company and shall faithfully and diligently perform such duties and responsibilities as shall be assigned to the position from time to time by the
Board of Directors of the Company ("the Board"). The Employee shall devote his full time and attention to his employment with the Company. The Employee may, with the written approval of the Board or the President/CEO, serve in a non-executive capacity on the boards of directors of not more than two other companies or corporations.

 

4.      Compensation and Benefits.

 

(a)     Salary. During the employment term, the Company will pay Employee a monthly gross salary of $19,166.67 ("Salary"). The Salary is payable monthly, less state and federal withholding, social security, and other standard payroll
deductions as shall be required to be withheld by applicable law or regulations, and shall be payable to Employee in accordance with the policies of the Company as from time to time in effect.

 

(b)     Incentive Compensation. Subject to the provisions contained in Paragraph 5 hereof, the Employee shall receive incentive compensation in the form of an option (the "Option") to purchase up to 1,000,000 originally issued shares
of Rule 144 restricted stock in the Company ("Stock"). The Option shall vest in the Employee and become exercisable on the "Vesting Date" which shall be the last day of the 12th consecutive calendar month after the date of Commencement provided always that the grant of the Option hereby is subject to the terms and conditions contained in the Company's 2004 Compensatory Stock Option Plan 2004. The exercise price per share of stock subject
to the Option shall be the closing price of the Company stock on the date of Commencement (the "Strike Price"). It is also understood and agreed that the Option granted aforesaid shall not in any circumstances vest in the Employee unless the Employee shall at the Vesting Date have attained to the satisfaction of the Board such performance targets as may have been fixed by the Board within three months of the date of Commencement of this Agreement. For the purpose of performance targets based on stock price performance,
it is hereby agreed that the baseline price for assessing stock price performance is the Strike Price.  The Employee shall be responsible for all federal, state and local taxes applicable to or arising from any incentive compensation accruing to the Employee.

  

  

  

 

(c)     Vehicle Allowance. The Employee shall be entitled to a reasonable monthly vehicle allowance as may be approved by the Board at the Board's discretion.

 

(d)     General Business Expenses. Subject to sub-paragraphs (e) and (g) of this paragraph 4, the Company shall pay or reimburse the Employee for all authorized reasonable
expenses authorized under Company's reimbursement policies that are necessarily incurred by the Employee during the Employment in the performance of the Employee's service under this Agreement. Such payment shall be made upon presentation of such documents as the Company customarily requires of its employees prior to making such payments or reimbursements.

 

(e)     Travel expenses. Where travel by commercial carriage is required by the Employee for the purposes of performance of the Employee's duties under this Agreement,
the Employee shall be entitled to travel on that class of ticket that is commonly known as "business class." The Employee may undertake travel by a higher class of ticket only where there is no business class ticket available.

 

(f)      Annual Vacation. Subject to the provisions of paragraph 5 hereof, the Employee shall be entitled to a vacation of five (5) weeks in every consecutive
period of 12 months from the date of Commencement provided always that the specific dates on which the vacation is taken shall be approved by the Board or the President/CEO. The accrual and payment of the Employee's salary shall not be affected or withheld by reason of the fact only that the Employee is on vacation in accordance herewith.

 

(g)     Relocation Allowance. The Company will reimburse to the Employee the cost of the Employee's relocation to Houston up to a maximum reimbursement of $10,000.
"Employee's relocation" in the preceding sentence includes relocation of the Employee and of the Employee's spouse, dependents and household items as well as any other relocation efforts or activities undertaken by the Employee in respect or as a result of the Employment.

 

(h)     Other Benefits. Other than the compensation and benefits specified in the preceding sub-paragraphs of paragraph 4 hereof, the Employee disclaims, disavows
and relinquishes any entitlement to any other allowances and benefits from the Company provided that the Employee may contribute to and benefit from mutual compensation schemes that are generally open to participation by all employees of the company.

 

5.      Termination of Employment.

 

(a)     The Employee's status as an employee of the Company will terminate immediately and automatically upon the earliest to occur of: (i) the death or "Disability" (as defined below) of the Employee; (ii) the discharge of the Employee by the Company "For Cause" (as defined below); (iii) termination
of this Agreement by notice by the Employer or Company as stated herein or (iv) the expiration, without renewal, of the Employment term.

 

The Employee hereby accepts such employment subject to the terms and conditions hereof.

  

  

  

(b)     As used herein, "For Cause" shall mean any one or more of the following: (i) material or repeated violations by the Employee (after notice thereof from the Company) of the terms of this Agreement or the Employee's material or repeated failure (after notice thereof from the Company) to
perform the Employee's duties in a manner consistent with the Employee's position; (ii) excessive absenteeism on the part of the Employee not related to illness or disability; (Hi) the Employees indictment for a felony or conviction of a misdemeanor involving moral turpitude; (iv) the Employee's commission of fraud, embezzlement, theft or other acts involving dishonesty, or crimes constituting moral turpitude, in any case whether or not involving the Company, that in the opinion of the Board, renders the Employee's
continued employment harmful to the Company; (v) substance abuse on the part of the Employee; or (vi) knowing and material failure by the Employee to comply with applicable laws, regulations and policies relating to the business of the Company or its Affiliates; or (vii) the Employee acting in bad faith relative to the Company's business interests. In the event the Company terminates this Agreement For Cause, Employee shall be entitled to receive only that Salary earned and Benefits accrued up to the date of
termination.

 

(c)     As used herein, "Disability" shall mean a physical or mental incapacity of the Employee that, in the good faith determination of the Company has prevented the Employee from performing the essential functions of his office and position or functions assigned the Employee by the Company
for 30 consecutive days or for a period of more than 60 days in the aggregate in any 12-month period and that, in the determination of the Company after consultation with a medical doctor appointed by the Company, may be expected to prevent the Employee for any period of time thereafter from devoting the Employee's full time and energies (or such lesser time and energies as may be acceptable to the Company in its sole discretion) to the Employee's duties as provided hereunder. The Employee's employment hereunder,
except as otherwise agreed to in writing between the Company and the Employee, shall cease as of the date of such determination. The Employee agrees to submit to medical examinations, at the Company's sole cost and expense, to determine whether a Disability exists pursuant to reasonable requests that the Company may make from time to time. In the event this Agreement is terminated by the Company under sub-paragraph 5 (a) (i) hereof, Employee or his legal representatives, as applicable, shall be entitled to receive
any outstanding Salary earned and Benefits then accrued, up to the date of the employee's death, or the date of termination in the event of disability, as applicable.

 

(d)     Additional Grounds for Termination by Company. The Company may terminate Employee's employment: (i) upon the bankruptcy or insolvency of Company; or (ii) in connection with the dissolution or liquidation of the Company.
In event of termination by the company under this sub-paragraph 5(d), the Company shall be obligated to Employee for the payment, at the times and upon the terms provided for herein, of the Employee's Salary for the number of full months remaining in the Primary Term of this Agreement, together with all unpaid Benefits awarded or accrued up to the date of termination.

 

(e)     Termination without Cause by Company. Notwithstanding the foregoing, Company shall have the right to terminate this Agreement and Employee's employment with the Company, without cause, at any time and such termination shall
become effective upon written notice by the Board to the Employee or at such later time as may be specified in the notice. If such termination occurs:

  

  

  

(i)     within 6 (six) months from the date of Commencement of the Primary Term, the Employee shall be entitled to the amount that would have accrued as his Salary for 1 (one) month from the date of termination;

 

(ii)    after the first 6 months from the date of Commencement of the Primary Term but before the expiration of 12 months from the date of Commencement of the Primary Term, the Employee shall be entitled to the amount that would have accrued as his Salary for 3 (three) months from the date of termination;

 

(iii)   after 12 months from the date of Commencement of the Primary Term, the Employee shall be entitled to any incentive compensation accrued up to the date of termination plus the amount that would have accrued as his Salary for 6 (six) months provided that if the period from the date of termination to the
expiration of the Primary Term is less than 6 (six) months, the Employee shall only be entitled to the amount that would have accrued as his Salary for the period left till the date of expiration of the Primary Term.

 

It is hereby agreed that any payment to which the Employee is entitled under this paragraph 5(e) shall be deemed to be the Employee's full and final termination entitlement including but not limited to severance remuneration (and hereinafter called "Termination Entitlement") in the circumstances. The Company shall have
the option of paying the Termination Entitlement in monthly installments as it customarily pays the Employee's Salary.

 

(f)     Termination by Employee. The Employee may terminate this Agreement at any time by giving the Company three months' prior notice in writing whereupon the Employment shall terminate at the expiration of the notice. Any termination
of this Agreement by the Employee shall entitle the Company to discontinue payment of all Compensation and Benefits, described in Paragraph 4 of this Agreement, accruing from and after the date of termination, and without limitation, the Employee will not be entitled to receive any incentive compensation not then vested in accordance with Paragraph 4 of this Agreement.

 

6.      Confidential Information. The Employee shall hold, both during the Employment and for a period of three (3) years thereafter, in a fiduciary capacity for the benefit of the Company all secret or confidential information,
knowledge or data relating to the Company or any of its subsidiaries or corporate affiliates and their respective businesses and operations, including, without limitation, customer lists, pricing, bid strategy, business strategies, computer files and addresses, and corporate planning, which shall have been obtained by the Employee during the Employee's employment (whether prior to or after the date hereof) and which shall not have become public knowledge (other than by acts of the Employee or his representatives
in violation of this Agreement or by third parties in violation of an obligation of confidentiality to Company). The Employee agrees (i) that, without the prior written consent of the Company or as may be otherwise required by law or legal process, he will not communicate or divulge any such information, knowledge or data to any party other than the Company and (ii) to deliver promptly to the Company upon its written request any confidential information, knowledge or data in his possession, whether produced by
the Company or any of its subsidiaries and corporate and joint ventures or any past, current or prospective activity of the Company or any of its subsidiaries and joint ventures. The obligations of the Employee set forth in this Paragraph 6 shall apply during the Employment and shall survive termination of this Agreement and/or the termination of the Employee's services for a period of three (3) years thereafter, regardless of the reason for such termination.

  

  

  

7.      No Soliciting. While Employee is employed by the Company and for two (2) years following the termination of Employee's employment with the Company, the Employee shall not request, induce or attempt to influence any
customers of the Company that have done business with or potential customers which have been in contact with the Company to curtail or cancel any business they may transact with the Company or request, induce or attempt to influence any employee of the Company to terminate his or her employment with the Company. The obligations of the Employee set forth in this Paragraph 7 shall apply during the Employment and shall survive termination of this Agreement and/or the termination of the Employee's services under
this Agreement for a period of two (2) years thereafter, regardless of the reason for such termination.

 

8.      Limited Covenant Not to Compete.

 

(a)     While Employee is employed by the Company and for a period of two (2) years following the Employment Term, the Employee will not, directly or indirectly, own, manage, operate, control, be employed by, participate in, or be connected in any manner with the ownership, management, operation
or control of any company or other business enterprise (all of which are hereinafter referred to as "entity") engaged in competition with the Company in the Federal Republic of Nigeria, the Joint Development Zone established by treaty between the Federal Government of Nigeria and the Democratic Republic of Sao Tome and Principe or within the Exclusive Economic Zone of the Democratic Republic of Sao Tome and Principe, so long as the Company and its Parent or any of its Affiliates or joint ventures is engaged in
such business; provided, however, that nothing contained herein shall prohibit the Employee from making investments in any entity which has securities listed in any national securities exchange or quoted on a daily listing of over-the-counter-market securities provided that at any one time the Employee and members of the Employee's immediate family do not own more than two percent (2%) of any voting securities of such entity.

 

(b)     As part of the consideration for the compensation and benefits to be paid to the Employee hereunder; to protect the trade secrets and confidential information of Company and its affiliates that have been and will in the future be disclosed or entrusted to the Employee, the business goodwill
of the Company and its affiliates that has been and will in the future be developed in the Employee, or the business opportunities that have been and will in the future be disclosed or entrusted to the Employee by the Company and its affiliates; and, as an additional incentive for the Company to enter into this Agreement, the Company and the Employee agree to the non-competition obligations hereunder. The obligations of the Employee set forth in this Section 8 shall apply during the Employment and shall survive
termination of this Agreement and/or the termination of the Employee's services under this Agreement for a period of two (2) years.

 

9.      Statements Concerning the Company. The Employee shall refrain, both during the Employment and following the termination of Employee's employment by the Company for any reason, from publishing any oral or written statement
about the Company, any of its affiliates, or any of such entities' officers, employees, agents or representatives that are slanderous, libelous or defamatory; or that disclose private or confidential information about the Company, any of its affiliates, or any of such entities' business affairs, officers, employees, agents or representatives; or that constitute an intrusion into the seclusion or private lives of the Company, any of its affiliates, or any of such entities' officers, employees, agents or representative
or that give rise to unreasonable publicity about the private lives of the Company, any of its affiliates, or any of such entities' officers, employees, agents or representatives; or that place the Company, any of its affiliates, or any of such entities' officers, employees, agents or representatives in a false light before the public; or that constitute a misappropriation of the name or likeness of the Company, any of its affiliates, or any of such entities, officers, employees, agents or representatives. A
violation or threatened violation of this prohibition may be enjoined by the courts. The rights afforded the Company and its affiliates under this provision are in addition to any and all rights and remedies otherwise afforded by law. The obligations of the Employee set forth in this paragraph 9 shall apply during the Primary Term and shall survive termination of this Agreement and/or the termination of the Employee's services, regardless of the reason for such termination.

  

  

  

 

10.    Property of the Company. All memoranda, lists, notes, records, manuals and related documents and other documents or papers (and all copies thereof) relating to the Company or its Affiliates, including such items stored in computer
memories, microfiche or by any other means, made or compiled by or on behalf of Employee, or made available to the Employee relating to the Company and its Affiliates, shall be the property of the Company and its Affiliates, and shall be delivered to the Company and its Affiliates promptly upon termination of the Employee's employment with the Company and its Affiliates or at any other time upon request; provided, however, that Employee's address books,
diaries, and rolodex files shall be deemed to be property of Employee.

 

11.    Injunctive Relief. If Employee breaches or threatens to breach Sections 6, 7, 8, 9 or 10 hereof, Employee specifically acknowledges that such breach or breaches shall be conclusively presumed to cause irreparable harm to the Company,
its affiliates, officers or directors entitling it to all equitable relief available at law or in equity including but not limited to a temporary restraining order, a temporary injunction and a permanent injunction. Employee stipulates and acknowledges that monetary recovery alone shall not be sufficient to compensate the Company in such events and waives proof thereof. Employee also waives the necessity for the Company to post a bond in any action sought to enforce the provision of this Agreement. Whenever a
bond is mandatory notwithstanding contractual exclusion otherwise, the minimum amount permitted by law shall be applicable.

 

12.    Binding Effect.

 

(a)     This Agreement shall be binding upon and inure to the benefit of the Company and any of its successors and assigns.

 

(b)     This Agreement is personal to the Employee and shall not be assignable by the Employee without the consent of the Company (there being no obligation to give such consent) other than such rights or benefits as are transferred by will or the laws of descent and distribution.

 

(c)     The Company will require any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the assets or business of the Company (i) to assume unconditionally and expressly this Agreement and (ii) to agree to perform all
of its obligations under this Agreement in the same manner and to the same extent as would have been required of the Company had no assignment or succession occurred, such assumption to be set forth in a writing reasonably satisfactory to the Employee. In the event of any such assignment or succession, the term "Company" as used in this Agreement shall refer also to such successor or assign.

  

  

  

13.    Notices. Any notice or other communication required under this Agreement shall be in writing, shall be deemed to have been given and received when delivered in person, or, if mailed, shall be deemed to have been given when deposited
in the United States mail, registered or certified, return receipt requested, with proper postage prepaid, and shall be deemed to have been received on the third business day thereafter, and shall be addressed as follows:

 

If to the Company, addressed to:

The President/CEO ERHC

Energy Inc 5444 Westheimer

Road, Houston, TX 77056

United States of America Tel:

713 626 4700 Fax: 713 626 4704

 

If to the Employee, addressed to:

 

James Ledbetter

331 W Birch Dr

Mustang, OK 73064

 

Fax No.:

 

or such other address as to which any party hereto may have notified the other in writing.

 

14.    Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Texas, exclusive of any conflict of law rules which may refer to the laws of the another jurisdiction.

 

15.    Entire Agreement. This Agreement and the documents referred to herein, contain or refer to the entire arrangement or understanding between the Employee and the Company relating to the employment of the Employee by the Company,
and all prior negotiations, communications, commitments, agreements, and understandings, written or verbal, are merged and incorporated herein. This Agreement supercedes any other employment or non-competition agreements existing between the parties. No provision of the Agreement may be modified or amended except by an instrument in writing signed by or for both parties hereto. The parties hereto acknowledge, stipulate and agree that this Agreement was jointly prepared, negotiated and drafted by the parties and
their respective counsel, and agree that the presumption of a favorable interpretation for the non-drafting party in the event of ambiguity or any other matter of interpretation shall not apply.

 

16.    Severability. If any term or provision of this Agreement, or the application thereof to any person or circumstance, shall at any time or to any extent be invalid or unenforceable, the remainder of this Agreement, or the application
of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term and provision of this Agreement shall be valid and enforced to the fullest extent permitted by law.

  

  

  

 

17.    Waiver of Breach. The waiver by either party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach thereof.

 

18.    Remedies Not Exclusive. No remedy specified herein shall be deemed to be such party's exclusive remedy, and accordingly, in addition to all of the rights and remedies provided for in this Agreement, the parties shall have all
other rights and remedies provided to them by applicable law, rule or regulation.

 

19.    Beneficiaries. Whenever this Agreement provides for any payment to be made to the Employee or his estate, such payment may be made instead to such beneficiary or beneficiaries as the Employee may have designated in writing and
filed with the Company. The Employee shall have the right to revoke any such designation from time to time and to re-designate any beneficiary or beneficiaries by written notice to the Company.

 

20.    Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. Facsimile signatures shall have
the effect of delivered originals.

 

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

 

	  	
EMPLOYER:

	 	 
	  	
ERHC Energy Inc

	 	 
	  	  	  
	  	
By:
	
/s/ Nicolae Luca

	  	
Name:
	
Nicolae Luca

	  	
Title:
	
Interim   CEO

	  	  	  
	  	  	  
	  	
EMPLOYEE:

	  	  
	  	
/s/ James M Ledbetter

	  	
11/14/2006

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