Document:

Exhibit 10.38

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(this “Agreement”) is made and entered into as of the 31st day of July, 2014 (the “Effective Date”),
by and between Campus Crest Communities, Inc. (the “Company”), and Aaron Halfacre, an individual (“Employee”)
(the Company and Employee are hereinafter sometimes collectively referred to as the “Parties”).

 

RECITALS

 

A.The Company desires
to employ Employee as Executive Vice President – Capital Markets of the Company on the terms and conditions hereinafter set
forth.

 

B.Employee desires
to accept such employment on the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and agreements of the Parties hereinafter set forth, and for other good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto, intending to be legally
bound, hereby agree as follows:

 

1.Employment.
The Company hereby employs Employee as Executive Vice President – Capital Markets of the Company, and Employee hereby accepts
such employment, upon the terms and conditions hereinafter set forth. Employee shall be responsible for investor relations interactions,
earnings preparation, financial planning and analysis, capital markets transactions executions, investor strategies, improving
and delivering consistent messaging to the public, participating in Company growth strategies, and shall have such other duties
and authority as are customary for such position and as shall from time to time be assigned to Employee by the Chief Financial
Officer, the Chief Executive Officer and the Board of Directors (“Board”) of the Company in their discretion.
Employee shall faithfully and to the best of his ability fulfill such duties and shall devote his full business time, attention,
skill and efforts with undivided loyalty to the performance of such duties. Employee shall abide by all of the rules, regulations
and policies established or promulgated (whether communicated in writing, electronically or orally) by the Company from time to
time. Employee agrees that so long as he is an employee of the Company he shall not, without obtaining the express prior approval
in writing of the Chief Executive Officer and the Board of the Company, engage in any employment, consulting activity or business
other than for the Company. Notwithstanding the other provisions of this Section 1, Employee is authorized to make and manage
personal business investments of his choice, including, without limitation, the management of family-owned companies and investments,
subject to the limitations set forth in the Confidentiality and Noncompetition Agreement (as defined below) and provided that such
activities do not materially interfere with the performance of the Employee’s duties under the Agreement.

 

2.Compensation
and Benefits. During his employment under this Agreement, Employee shall receive the compensation and benefits more particularly
described on Exhibit A attached hereto and made a part hereof. In the event the Company terminates the Incentive Compensation
Plan provided for in Exhibit A hereto, the Company shall establish a new plan or such other arrangement as shall be mutually
agreeable to the Company and Employee which shall provide Employee with substantially similar economic benefits to those provided
under the Incentive Compensation Plan. Furthermore, no amendment or modification to the Incentive Compensation Plan during a performance
cycle shall reduce the potential benefits to be provided thereunder as established at the beginning of such performance cycle without
the consent of Employee. Any payments referenced hereunder shall be subject to applicable taxes and other withholdings.

 

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3.Term.
This Agreement shall be for an initial term of two years, expiring on the second anniversary of the date hereof; provided, however,
it shall automatically renew for additional one year terms on each anniversary date hereof unless notice of expiration is given
in writing at least 90 days prior to expiration of the then current term. For the sake of clarity, notification of a non-renewal
by the Company within the prescribed 90 day period shall not be considered a "termination" by the Company and as such,
shall not invoke the Payment Upon Termination provisions described in Section 3(B), below, which are only applicable for a termination
of employment occurring during the term.

 

The Company may terminate this Agreement
at any time for Cause or without Cause (as defined below). Employee may terminate this Agreement at any time with or without Good
Reason (as defined below) upon delivery to the Company of thirty (30) days written notice. Termination of this Agreement shall
terminate completely Employee’s employment with the Company, including, but not limited to, his role as an officer. If Employee
is serving as a member of the Company’s Board, Employee agrees to resign from the Board effective immediately upon termination
of this Agreement.

 

(A)Termination
Date. The date which the Board of the Company designates as the termination date or, if Employee terminates this Agreement,
the date designated by Employee as stated in the written notice delivered to the Company, shall be referred to herein as the “Termination
Date.”

 

(B)Payment Upon
Termination.

 

(i)Termination
By Employee. In the event Employee terminates this Agreement, the Company shall be obligated to pay Employee that pro-rata
portion of his current bi-weekly Base Salary payment, as adjusted for any increase thereto, which is earned but unpaid as of the
Termination Date, any earned but unpaid incentive compensation, any accrued but unpaid paid time off (“PTO”)
due to him through the Termination Date and any unreimbursed expenses. Employee will not be entitled to, nor will he receive, any
type of severance payment, unless he has Good Reason, as defined below, to terminate this Agreement. If Employee has Good Reason
then he shall receive the severance outlined in subsection (B)(ii)(b) below addressing Termination by the Company without Cause,
subject to its requirements for receipt of such payment. If Employee terminates Employee’s employment pursuant to this subsection
(B)(i), then the Company, at its option, may require Employee to cease providing services during the thirty (30) day notice period
required therein; provided, however, for purposes of calculating payment upon termination under this Agreement, Employee shall
be treated as if he was employed during such thirty (30) day period. “Good Reason” shall mean (1) a material
involuntary reduction in Employee’s duties, authority, reporting responsibility or function by the Company, (2) a material
reduction in Employee’s compensation package other than as mutually agreed, (3) Employee’s involuntary relocation to
a principal place of work more than thirty (30) miles from Charlotte, North Carolina or (4) a material breach by the Company of
its obligations hereunder, provided that, upon the occurrence of any of these acts or omissions, Employee gives the Company notice
of his belief that he has Good Reason to terminate this Agreement and the Company fails to cure within thirty (30) business days
of receipt of Employee’s notice, and the Employee resigns within thirty (30 days after the end of such thirty (30) day cure
period.

 

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(ii)Termination
By Company.

 

(a)Cause.
The Company may terminate this Agreement for Cause effective immediately upon written notice to Employee stating the facts
constituting such Cause. If Employee is terminated for Cause, the Company shall be obligated to pay Employee that pro-rata portion
of his current bi-weekly Base Salary payment, as adjusted for any increase thereto, which is earned but unpaid as of the Termination
Date, any earned but unpaid incentive compensation, any accrued but unpaid PTO due to him through the Termination Date and any
unreimbursed expenses. Employee will not be entitled to, nor will he receive, any type of severance payment. The term “Cause”
shall mean: (1) Employee’s act of gross negligence or misconduct that has the effect of injuring the business of the Company
or its parent, subsidiaries or affiliates, taken as a whole, in any material respect, (2) Employee’s conviction or plea of
guilty or nolo contendere to the commission of a felony by Employee, (3) the commission by Employee of an act of fraud or
embezzlement against the Company, its parent, subsidiary or affiliates, or (4) Employee’s willful breach of any material
provision of this Agreement or that certain Confidentiality and Noncompetition Agreement between Employee and the Company which
shall be entered into contemporaneously with this Agreement (the “Confidentiality and Noncompetition Agreement”).

 

(b)Without Cause.
The Company may terminate this Agreement without Cause effective immediately upon notice to Employee. In the event the Company
terminates this Agreement without Cause, the Company shall pay to Employee in addition to the amounts under the first sentence
of Subsection B(i) above, a cash payment equal to two times the sum of: (i) Employee’s then current annual Base Salary,
as adjusted for any increase thereto and (ii) an amount equal to the bonus paid to Employee for the prior year (provided
that, if no incentive bonus was paid in the prior year the amount shall be 50% of the “target amount” as defined in
the Company’s Incentive Compensation Plan for the year in which notice is given). Any amounts payable under this subparagraph
shall be paid in equal monthly installments over a period of 24 months commencing no later than sixty (60) days following Employee’s
Termination Date, shall be subject to applicable withholdings and shall be subject to Employee signing a Release (as defined below)
on or before the sixtieth (60th) day following Employee’s Termination Date and all revocation periods applicable
to such Release having expired on or prior to the sixtieth (60th) day following Employee’s Termination Date. Such
payments will commence within sixty (60) days following Executive’s termination, with the exact commencement of payments
to be determined in the sole discretion of the Company, provided that if such sixty (60) day period commences in one calendar year
and ends in the next, the payments will commence in the second calendar year with the first payment to include all payment that
would have otherwise been made but for the provisions of this sentence. For the avoidance of doubt, Employee shall not be entitled
to any severance and bonus payments if the Employee has not signed the Release, and if all revocation period applicable to the
Release have not expired on or prior to the sixtieth (60th) day following Employee’s Termination Date. In addition,
the severance and bonus payments outlined in this Section are contingent on Employee fully complying with the terms of the Confidentiality
and Noncompetition Agreement signed contemporaneously herewith. If Employee fails to so comply, Employee agrees that the Company
has the right to cease making the payments described in this Section and that the Company is entitled to recover from Employee
any payments it has already made to Employee.

 

 

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(iii)Change
in Control.  In the event, within 24 months following a Change in Control of the Company: (A) Employee is terminated
without Cause by the Company, or (B) Employee terminates his employment for Good Reason, in lieu of the severance payment outlined
in (b) above, Employee will receive, in addition to the amounts under the first sentence of Subsection B(i) above,
a cash payment equal to two times the sum of (i) Employee’s then current Base Salary, as adjusted for any increase thereto
and (ii) an amount equal to Employee’s previous year’s Incentive Compensation Plan payment. In the event Employee did
not receive an Incentive Compensation Plan payment the previous year, the incentive amount shall be 50% of the “target amount”
as defined in the Company’s Incentive Compensation Plan for the year in which termination occurs. Any amounts payable under
this subparagraph shall be paid in a lump sum within 60 days of the Termination Date subject to subsection 3(C) hereof, shall
be subject to applicable withholdings and shall be subject to Employee signing a Release on or before the sixtieth (60th)
day following Employee’s Termination Date and all revocation periods applicable to such Release having expired on or prior
to the sixtieth (60th) day following Employee’s Termination Date. Such payments will commence within sixty (60)
days following Executive’s termination, with the exact commencement of payments to be determined in the sole discretion of
the Company, provided that if such sixty (60) day period commences in one calendar year and ends in the next, the payments will
commence in the second calendar year with the first payment to include all payment that would have otherwise been made but for
the provisions of this sentence. For the avoidance of doubt, Employee shall not be entitled to any severance and bonus payments
if the Employee has not signed the Release, and if all revocation period applicable to the Release have not expired on or prior
to the sixtieth (60th) day following Employee’s Termination Date. “Change in Control” means
“a change in the ownership of the corporation,” “a change in effective control of the corporation,” or
“a change in the ownership of a substantial portion of the assets of the corporation” within the meaning of Section 1.409A-3(i)(5)
of the Treasury Regulations. The payments to Employee outlined in this Section are contingent on Employee fully complying with
the terms of the Confidentiality and Noncompetition Agreement signed contemporaneously herewith. If Employee fails to so comply,
Employee agrees that the Company has the right to cease making the payments described in this Section and that the Company is entitled
to recover from Employee any payments it has already made to Employee.

 

In the event it shall
be determined that any payment or distribution to or for the benefit of Employee under this subsection (iii) or the acceleration
thereof (the "Triggering Payment") would be subject to the excise tax imposed by Section 4999 of the Internal
Revenue Code of 1986, as amended (the “Code”), or any interest or penalties with respect to such excise tax
(collectively, such excise tax, together with any such interest or penalties, the "Excise Tax") (all such payments
and benefits, including any cash severance payments payable pursuant to any other plan, arrangement or agreement, hereinafter referred
to as the "Total Payments"), then, after taking into account any reduction in the Total Payments provided by reason
of Section 280G of the Code in such other plan, arrangement or agreement, the cash severance payments shall be reduced to the extent
necessary so that no portion of the Total Payments is subject to the Excise Tax but only if (A) the net amount of such Total Payments,
as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments and
after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments)
is greater than or equal to (B) the net amount of such Total Payments without such reduction (but after subtracting the net amount
of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which Employee would be subject
in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions
attributable to such unreduced Total Payments). All determinations required to be made under this subsection (iii) shall be
made in writing within ten (10) business days of the receipt of notice from Employee that there has been a Triggering Payment by
the independent accounting firm then retained by the Company in the ordinary course of business (which firm shall provide detailed
supporting calculations to the Company and Employee) and such determinations shall be final and binding on the Company and Employee.
Any fees incurred as a result of work performed by any independent accounting firm hereunder shall be paid by the Company.

 

 

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(iv)Vesting.
In the event of: (i) a termination by the Company without Cause, (ii) a termination by Employee for Good Reason, (iii) a Change
in Control, or (iv) the voluntary retirement of the Employee subsequent to reaching the age of 63, occurring prior to Employee
fully vesting in any options or restricted equity, then the vesting schedule shall be accelerated so that Employee will be deemed
fully vested with respect to such options or restricted equity.

 

(v)Disability.
The Company may terminate Employee’s employment upon Employee’s total disability. Employee shall be deemed to be totally
disabled for purposes of this Agreement if he is unable to perform his essential job duties under
this Agreement by reason of a mental or physical illness or condition lasting for a period of 120 consecutive days or more, taking
into consideration any reasonable accommodations under the Americans with Disabilities Act, if applicable. The determination as
to whether Employee is totally disabled shall be made by a licensed physician selected by the Company. Whether Employee is entitled
to receive his Base Salary during the period he is unable to work prior to termination hereunder is contingent on other Company
policies and the amount of leave Employee has available to him under those policies. Upon termination by reason of Employee’s
disability, the Company’s sole and exclusive obligation will be to pay Employee that pro-rata portion of his current bi-weekly
Base Salary payment, as adjusted for any increase thereto, which is earned but unpaid as of the Termination Date, any earned but
unpaid bonus and any accrued but unpaid PTO due to him through the Termination Date.

 

(vi)Death.
This Agreement shall terminate immediately and without any action on the part of the Company if Employee dies. In such an event,
Employee’s estate shall receive from the Company, in a single lump sum, an amount equal to (i) that pro-rata portion
of his current bi-weekly Base Salary payment, as adjusted for any increase thereto, which is earned but unpaid as of the date of
Employee’s death unless earlier terminated due to disability as set forth in subsection 3(B)(v) above and (ii) any bonus
compensation earned by Employee but unpaid prior to Employee’s death, plus other death benefits, if any, generally applicable
to the Company’s employees.

 

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(C)The following
rules shall apply with respect to the distribution of payments and benefits, if any, to be provided to Employee under Section 3(B)
of this Agreement, as applicable:

 

(i)Notwithstanding
anything to the contrary contained herein, no payments shall be made to Employee upon Employee’s termination of employment
from the Company under this Agreement unless such termination of employment is a “separation from service” within the
meaning of Section 409A of the Code. For purposes of determining the timing of payments under this Section 3 only, “Termination
Date” shall be deemed to mean the date on which Employee experiences a “separation from service” within the meaning
of Section 409A of the Code.

 

(ii)It is intended
that each installment of the payments and benefits provided under this Section 3(B)(ii)(b), if any, shall be treated as a separate
“payment” for purposes of Section 409A of the Code.

 

(iii)Notwithstanding
anything herein to the contrary, in the event that Employee is deemed to be a "specified employee" for purposes of Section
409A(a)(2)(B)(i) of the Code, any payments to Employee hereunder that are subject to the provisions of Section 409A of the Code
shall not be made prior to the six-month anniversary of Employee’s Termination Date.  Thereafter, any payment that would
otherwise have been made during the six-month period beginning on Employee’s Termination Date will be paid, together with
interest at an annual rate (compounded monthly) equal to the federal short-term rate (as in effect under Section 1274(d) of the
Code on the termination date), to Employee immediately following such six-month anniversary and no later than thirty (30) days
following such anniversary.

 

(iv)The amount
of taxable expenses eligible for reimbursement during one calendar year shall not affect the expenses eligible for reimbursement
during any subsequent calendar year. Reimbursement of expenses for a given calendar year shall be made on or before the last day
of the immediately following calendar year. The right to reimbursement hereunder is not subject to liquidation or exchange for
another benefit.

 

4.Release.
Employee agrees that payment by the Company of the amounts set out above (in the event of a termination by the Company Without
Cause, termination by Employee for Good Reason or due to a Change in Control) is contingent upon Employee executing a mutual release,
acceptable to the Company and Employee (the “Release”) which shall recite that such payment is in full and final
settlement of any and all actions, causes of actions, suits, claims, demands and entitlements whatsoever which Employee has or
may have against the Company or which the Company may have against Employee, their respective affiliates and any of their respective
directors, officers, employees, shareholders, representatives, successors and assigns arising out of Employee’s hiring, his
employment and the termination of his employment or this Agreement.

 

5.Expenses.
The Company shall reimburse Employee for all necessary and reasonable out-of-pocket travel and other business expenses incurred
by Employee, which relate to Employee’s duties hereunder, in accordance with the Company’s relevant policies in effect
from time to time.

 

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6.Survival Of
Certain Provisions. Any provisions hereof that, by their nature, would survive the termination hereof shall not be discharged
or dissolved upon, but shall survive the termination of the employment of Employee with the Company.

 

7.Representations
And Warranties Of Employee. As of the date hereof and at all times during the term hereof, Employee represents and warrants
to the Company that (a) Employee has not entered into and is not bound by any agreement, understanding or restriction (including,
without limitation, any covenant restricting competition or solicitation or agreement relating to trade secrets or confidential
information) with any third party that in any way limits, restricts or would prevent the employment of him by the Company under
this Agreement or the full and complete performance by him of all his duties and obligations hereunder; and (b) the execution of
this Agreement by him and the employment of him by the Company under this Agreement will not result in, or constitute a breach
of, any term or condition of any other agreement, instrument, arrangement or understanding between him and any third party, or
constitute (or, with notice or lapse of time, or both, would constitute) a default, breach or violation of any such agreement,
instrument, arrangement or understanding, or which would accelerate the maturity of any duty or obligation of him thereunder.

 

8.Indemnity.
Employee acknowledges that the Company has relied upon the representations contained in Section 7 hereof. Employee agrees
to indemnify and hold the Company, its directors, officers, employees, agents, representatives, affiliates, parent, subsidiary
and related companies, representatives and consultants and their insurers and attorneys harmless against any and all claims, liabilities,
losses, damages, costs, fees or expenses including, without limitation, reasonable legal fees and costs incurred by the Company,
its directors, officers, employees, agents, representatives, affiliates, parent, subsidiary and related companies, representatives
and consultants and their insurers by reason of an alleged violation by Employee of any of the representations contained in Section
7 hereof.

 

9.Notices.
All notices and other communications under this Agreement shall be in writing and shall be deemed given upon receipt if delivered
personally, or when sent if mailed by registered or certified mail (return receipt requested) to the Parties at the following addresses
(or at such other address for a party as shall be specified by like notice):

 

	 	If to the Company	Campus Crest Communities, Inc.
	 	 	2100 Rexford Road, Suite 414
	 	 	Charlotte, NC 28211
	 	 	Attention: Donald L. Bobbitt Jr.
	 	 	 
	 	With copy to	Dawn H. Sharff, Esq.
	 	 	Bradley Arant Boult Cummings LLP
	 	 	One Federal Place
	 	 	1819 Fifth Avenue North
	 	 	Birmingham, AL 35203
	 	 	 
	 	If to Employee	Aaron Halfacre
	 	 	4415 Saint Davids Street
	 	 	Philadelphia, Pennsylvania 19127

 

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10.Enforceability
and Reformation; Severability. The Parties intend for all provisions of this Agreement to be enforced to the fullest extent
permitted by law. Accordingly, in the event that any provision or portion of this Agreement is held to be illegal, invalid or unenforceable,
in whole or in part, for any reason, under present or future law, such provision shall be severable and the remainder thereof shall
not be invalidated or rendered unenforceable or otherwise adversely affected. Without limiting the generality of the foregoing,
if a court or arbitrator should deem any provision of this Agreement to create a restriction that is unreasonable as to scope,
duration or geographical area, the Parties agree that the provisions of this Agreement shall be enforceable in such scope, for
such duration and in such geographic area as such court or arbitrator may determine to be reasonable.

 

11.Benefit.
The rights, obligations and interests of Employee hereunder may not be sold, assigned, transferred, pledged or hypothecated. Employee
shall have no right to commute, encumber or dispose of the right to receive payments hereunder, which payments and the right thereto
are non-assignable and non-transferable, and any attempted assignment or transfer shall be null and void and without effect. This
Agreement and its obligations shall inure to the benefit of and be binding and enforceable by the successors and assigns of the
Company, including, without limitation, any purchaser of the Company, regardless of whether such purchase takes the form of a merger,
a purchase of all or substantially all of the Company’s assets or a purchase of a majority of the outstanding capital stock
of the Company.

 

12.Dispute Resolution.
All controversies, claims, issues and other disputes (collectively, “Disputes”) arising out of or relating to
this Agreement or Employee’s employment hereunder shall be subject to the applicable provisions of this Section.

 

(A)Arbitration.
Except for actions seeking relief for violations of the Confidentiality and Noncompetition Agreement, all Disputes shall be settled
exclusively by final and binding arbitration in Charlotte, North Carolina, before a neutral arbitrator in an arbitration proceeding
administered by the American Arbitration Association (“AAA”) according to the National Rules for the Resolution
of Employment Disputes of AAA or, alternatively, upon mutual agreement, to an arbitrator selected by Employee and the Company.
Any dispute regarding whether a Dispute is subject to arbitration shall be resolved by arbitration.

 

(B)Interstate
Commerce. The Parties hereto acknowledge that (i) they have read and understood the provisions of this Section regarding arbitration
and (ii) performance of this Agreement will be in interstate commerce as that term is used in the Federal Arbitration Act, 9 U.S.C.
§ 1 et seq., and the parties contemplate substantial interstate activity in the performance of this Agreement including,
without limitation, interstate travel, the use of interstate phone lines, the use of the U.S. mail services and other interstate
courier services.

 

(C)Waiver of
Jury Trial. If any Dispute is not arbitrated for any reason, the parties desire to avoid the time and expense relating to a
jury trial of such Dispute. Accordingly, the parties, for themselves and their successors and assigns, hereby waive trial by jury
of any Dispute. The Parties acknowledge that this waiver is knowingly, freely, and voluntarily given, is desired by all Parties
and is in the best interests of all Parties.

 

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13.Amendment.
This Agreement may not be amended, modified or changed, in whole or in part, except by a written instrument signed by a duly authorized
officer of the Company and by Employee.

 

14.Waiver.
No failure or delay by either of the Parties in exercising any right, power, or privilege under this Agreement shall operate as
a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power, or privilege.

 

15.Access To
Counsel. Employee acknowledges that he has had full opportunity to review this Agreement and has had access to independent
legal counsel of his choice to the extent deemed necessary to interpret the legal effect hereof.

 

16.Governing
Law. This Agreement shall be interpreted, construed and governed according to the laws of the State of North Carolina. For
any claims for relief which are excepted from the arbitration provision as set out above, the Parties submit to the service and
exclusive personal jurisdiction of the federal or state courts of Charlotte, North Carolina and irrevocably waive all defenses
inconsistent with the terms of this Section.

 

17.Fees And
Costs. If either Party initiates any action or proceeding (whether by arbitration or court proceeding) to enforce any of its
rights hereunder or to seek damages for any violation hereof, then, the Parties shall bear their respective costs and expenses
of any such action or proceeding; provided, that, in addition to all other remedies that may be granted, the prevailing Party shall
be entitled to recover its reasonable attorneys’ fees and all other costs that it may sustain in connection with such action
or proceeding. If a dispute is arbitrated, all costs and fees of the arbitrator(s) shall be paid by the Company.

 

18.Offset.
The Company shall have the right to offset against any sums payable to Employee, any amounts owing to the Company as a result of
expense account indebtedness, failure to return Company property, or other advances or debts due.

 

19.Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. Execution and delivery by facsimile shall constitute good and valid execution and
delivery unless and until replaced or substituted by an original executed instrument.

 

20.Interpretation.
The language used in this Agreement shall not be construed in favor of or against either of the Parties, but shall be construed
as if both of the Parties prepared this Agreement. The language used in this Agreement shall be deemed to be the language chosen
by the Parties to express their mutual intent, and no rule of strict construction shall be applied against any such Party.

 

21.Execution
of Further Documents. The Parties covenant and agree that they shall, from time to time and at all times, do all such further
acts and execute and deliver all such further documents and assurances as shall be reasonably required in order to fully perform
and carry out the terms of this Agreement.

 

 

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22.Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company, its successors and assigns, including,
without limitation, any entity which may acquire all or substantially all of the Company’s assets and business or into which
the Company may be consolidated or merged, and Employee, his heirs, executors, administrators and legal representatives. Employee
may not assign any of his obligations under this Agreement.

 

23.Entire Agreement.
This Agreement and the Exhibit attached hereto represent the entire understanding and agreement between the Parties with respect
to the subject matter hereof and shall supersede any prior agreements and understanding between the Parties with respect to that
subject matter.

 

24.Compliance
with Section 409A of the Code. This Agreement is intended to comply with, or otherwise be exempt from Section 409A of the Code,
and any regulations and Treasury guidance promulgated thereunder and all ambiguities shall be interpreted in a manner consistent
with such intent.

 

IN WITNESS WHEREOF,
each of the Parties has executed this Agreement as of the date first above written.

 

 

	 	CAMPUS CREST COMMUNITIES, INC.
	 	 
	 	By: /s/ Donnie Bobbitt
	 	Name: Donnie Bobbitt
	 	Title: Chief Financial Officer
	 	 
	 	 
	 	EMPLOYEE:
	 	 
	 	/s/ Aaron Halfacre
	 	AARON HALFACRE

 

 

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Exhibit A

Compensation and Benefits

 

(A)Employee’s
employment with the Company shall become effective on July 31, 2014. Within thirty days of the Effective Date, Employee shall receive
a signing bonus of $50,000, payable in shares of the Company, with the number of shares determined by the price of Company shares
at the close of trading on the Effective Date. If Employee voluntarily terminates his employment with the Company prior to the
one year anniversary of the Effective Date, he will forfeit to the Company the shares prior to his last day of employment. The
Company shall reimburse Employee up to $20,000 toward the costs of his relocation to Charlotte, North Carolina, upon the receipt
of appropriate moving transaction receipts. If Employee voluntarily terminates his employment with the Company prior to the one
year anniversary of the Effective Date, he must repay to the Company the amount of the reimbursed relocation expenses, prior to
his last day of employment.

 

(B)On the Effective
Date, Employee shall be granted 30,000 Company restricted shares under the Company’s Amended and Restated Equity Incentive
Plan (the “EICP”), which shares shall be eligible to vest over a three year period following the Effective Date
and which shares shall be subject to the terms and conditions of separate award agreement. Any unvested Company restricted shares
will immediately vest at the time of a Change in Control. If the Employee is terminated by the Company without Cause, the Employee
terminates for Good Reason, the Employee dies or the Employee is terminated due to his disability as set forth in Section 3(B)(v)
of the Agreement, any unvested Company restricted shares will immediately vest.

 

(C)On the Effective
Date, Employee shall be granted 50,000 Company performance shares under the EICP which shall be eligible to vest as follows and
which performance shares shall be subject to the terms and conditions of a separate award agreement:

 

(i)10,000 Company
performance shares shall vest, and fully vested Company common shares shall promptly thereafter be delivered to Employee, upon
the Company's common share price closing at or above $9.00 per share;

 

(ii)15,000 Company
performance shares shall vest, and fully vested Company common shares shall promptly thereafter be delivered to Employee, upon
the Company's common share price closing at or above $10.00 per share;

 

(iii)15,000 Company
performance shares shall vest, and fully vested Company common shares shall promptly thereafter be delivered to Employee, upon
the Company's common share price closing at or above $11.50 per share; and

 

(iv)10,000 Company
performance shares shall vest, and fully vested Company common shares shall promptly thereafter be delivered to Employee, upon
the Company's common share price closing at or above $13.00 per share.

 

(v)Notwithstanding
the foregoing or anything in Section 3(B)(iv) of the Agreement to the contrary, the performance shares shall not vest any earlier
than the first anniversary of the Effective Date and if the applicable share price thresholds are satisfied prior to the first
anniversary of the Effective Date, the relevant portion of the Company performance shares shall not vest, and Company common shares
shall not be delivered, until the first anniversary of the Effective Date, provided the Employee remains in service until such
date. If prior to the first anniversary of the Effective Date but after a time when the Company’s common share price equals
or exceeds one or more of the share price thresholds above, the Employee is terminated by the Company without Cause, the Employee
terminates for Good Reason, the Employee dies or the Employee is terminated due to his disability as set forth in Section 3(B)(v)
of the Agreement, the portion of the performance shares for which the share price thresholds have been satisfied shall immediately
vest and the Company common shares shall promptly be delivered to the Employee. Notwithstanding anything in the EICP or the Agreement
to the contrary, in no event shall any of the performance shares vest if Employee’s employment is terminated for any reason
prior to the attainment of the applicable share price thresholds.

 

    	11

    	 

    

 

(vi)If the share
prices set forth above are not achieved prior to the third anniversary of the Effective Date, the grants referenced in this Section
(C) shall be immediately forfeited.

 

(vii)Until such
time as the Company performance shares may be forfeited, the Employee will be paid an amount in dividends each quarter on the unvested
Company performance shares.

 

(viii)Notwithstanding
anything in the EICP to the contrary, any unvested Company performance shares will immediately vest at the time of a Change in
Control, and fully vested Company common shares shall promptly thereafter be delivered to Employee, only if the share price thresholds
have been satisfied prior to the Change in Control.

 

(D)Employee shall
initially receive a base salary of $275,000 per year (as such base salary may hereafter from time to time be adjusted as provided
herein, the “Base Salary”). Thereafter, Employee’s Base Salary shall be reviewed annually by the Company’s
Compensation Committee and the Board of the Company and may be adjusted upward in its sole discretion. The Base Salary shall be
paid during the period of employment, by direct deposit according to the Company’s current standard pay practice of 26 pay
periods per year (bi-weekly) or in accordance with the Company’s relevant policies and practices in effect from time to time,
including normal payroll practices. The Base Salary and all other payments hereunder shall be subject to all applicable employment
and withholding taxes.

 

(E)In addition
to the Base Salary, Employee is eligible to participate in the Company’s Incentive Compensation Plan (the “Plan”)
with an initial target potential bonus equal to seventy five percent (75%) of his Base Salary, with the potential to achieve one
hundred (100%) of Base Salary if stretch performance targets are achieved. This plan shall be approved annually by the Compensation
Committee and approved by the Board of the Company, which may include adjustment in the target and stretch performance bonus amounts.
Employee’s eligibility for or entitlement to any payments under the Plan shall be subject to the terms of the Plan.

 

(F)In accordance
with its terms, Employee is eligible to participate in the Company’s EICP with an annual target equity award with a value
equal to seventy five percent (75%) of his Base Salary, with the potential to achieve one hundred (100%) of Base Salary if stretch
performance targets are achieved. The annual target shall be adjusted annually by the Compensation Committee and approved by the
Board of the Company. Employee’s eligibility for or entitlement to any payments under the EICP shall be subject to the terms
of the EICP.

 

    	12

    	 

    

 

(G)Contingent upon
Board of Directors approval, you will be eligible for an annual Long Term Incentive Plan grant equal to seventy five percent (75%)
of Base Salary each year. Subject to the approval of the Board of Directors, such plan will provide for a three year rolling performance
period pursuant to which bonuses can be earned based upon the performance of the Company as measured by Funds From Operations per
share growth and other shareholder value creation measurements, as determined by the Board of Directors.

 

(H)Subject to,
and in accordance with, their terms, Employee shall be entitled to participate in any plans, insurance policies or contracts maintained
by the Company relating to retirement, health, disability, auto, and other related benefits, as they may be amended from time to
time. These currently include health, dental and life insurance, and 401K. Employee’s rights and entitlements with respect
to any such benefits shall be subject to the provisions of the relevant plans, contracts or policies providing such benefits. In
addition, Employee shall be entitled to participate in the executive life insurance, disability and non-qualified deferred compensation
plans of the Company, as they may be amended from time to time. In addition, Employee shall accrue vacation and other paid time
off benefits in accordance with the terms of the applicable Company policy, as it may be amended from time to time. Nothing contained
herein or in any employment offer shall be deemed to impose any obligation on the Company to maintain or adopt any such plans,
policies or contracts or to limit the Company’s right to modify or eliminate such plans, policies or contracts in its sole
discretion.

 

(I)Employee hereby
acknowledges and agrees that, except as set forth in this Exhibit, he shall not be entitled to receive any other compensation,
payments or benefits in connection with his employment under this Agreement.

 

 

    	13SN Separation Agreement (03-2015)

March 31, 2015
Mr. Steven Newman
[Address]
[Address]
[Address]

Dear Steven:
This letter agreement (the “Agreement”) states the terms and conditions applicable to the termination of your employment with Transocean Offshore Deepwater Drilling Inc. (“TODDI”) and your status as an officer and director of Transocean Ltd. and its affiliates and, except as specifically stated herein, supersedes any previous agreement between you and Transocean, including your Employment Agreement with TODDI dated December 13, 2013 (the “Employment Agreement”).  All references in this Agreement to “Transocean” or “Company” shall mean Transocean Ltd. and its affiliates. 
		
	1.
	Resignation.  You hereby confirm your resignation as President and Chief Executive Officer and as a member of the Board of Directors of Transocean Ltd., and from any and all other officer or director positions with Transocean, effective February 16, 2015 (the “Resignation Date”). 

		
	2.
	Termination.  Your employment with Transocean shall terminate effective May 31, 2015 (the “Termination Date”).  Your base salary shall continue to be paid at an annual rate of $1,250,000 through your Termination Date.  

		
	3.
	Severance Pay.  You shall receive a lump sum cash payment equal to $1,250,000 gross (the “Compensation”), subject to and contingent upon your timely execution of the waiver and release attached hereto as Annex I (the “Waiver and Release”).  In order to be considered timely, the Waiver and Release must be signed by you and delivered to Transocean no earlier than one month and one day from your Termination Date but no later than two months after your Termination Date.  Payment of the Compensation shall be made within ten days after delivery by you to Transocean of your duly executed Waiver and Release.  Except for those obligations created by, arising out of or referred to in the Agreement, the payment of the Compensation shall discharge any claims and rights you may have against Transocean, including any right you may have to payment arising in connection with earned but unused vacation time or with overtime work. 

		
	4.
	Bonus.  In lieu of payment of a 2015 bonus under the Performance Award and Cash Bonus Plan of Transocean Ltd., you shall receive a lump sum cash payment equal to $651,402 gross (the “Cash Bonus”).  Payment of the Cash Bonus is subject to and contingent upon 

1

your timely execution of the Waiver and Release as described above in Section 3 herein.  Payment of the Cash Bonus shall be made within ten days after delivery by you to Transocean of your duly executed Waiver and Release. 

		
	5.
	Long-Term Incentive Plan Awards.  You will not receive any additional awards under the Long-Term Incentive Plan of Transocean Ltd. (the “LTIP”).  You should refer to the applicable award letters as to the specific treatment of any awards previously granted to you under the LTIP.  In addition, the following terms shall apply to any awards previously granted to you under the LTIP that remain outstanding as of the Termination Date.

Deferred Units.  All Deferred Units (“DUs”) previously granted to you under the LTIP will be treated as if Transocean terminated your employment for the Convenience of the Company (as defined by and determined in accordance with the terms of the LTIP and the applicable award agreement) on the Termination Date.  For the avoidance of doubt, the following provides details regarding the status of your outstanding DU awards if you continue to be employed by Transocean through the Termination Date:

	
				
	Grant Date
	DUs Granted
	Number of DUs that were Vested Prior to 
Termination Date 
	Number of DUs that will Vest on the Termination Date

	2/14/2013
	46,020
	30,680
	15,340

	2/13/2014
	90,365
	30,121
	60,244

*In accordance with the LTIP and the applicable award agreements, the portion of your DU awards that vest on the Termination Date shall be distributed to you within sixty days after the Termination Date. 

Non-qualified Stock Options.  All non-qualified stock options (“NQ Options”) previously granted to you under the LTIP will be treated as if Transocean terminated your employment for the Convenience of the Company (as defined by and determined in accordance with the terms of the LTIP and the applicable award agreement) on the Termination Date.  In accordance with the LTIP and the applicable award agreements, your NQ Options will remain exercisable until the first anniversary of the Termination Date.  For the avoidance of doubt, the following provides details regarding the status of your NQ Options if you continue to be employed by Transocean until the Termination Date:

2

	
						
	Grant Date
	Exercise Price
 (in USD)
	Number Awarded
	Vested as of Termination Date
	Forfeited on Termination Date
	Exercise Period Ends

	11/27/2007
	$73.21
	17,248
	17,248
	n/a
	5/31/2016

	11/27/2007
	$83.70
	17,248
	17,248
	n/a
	5/31/2016

	7/9/2008
	$144.32
	27,728
	27,728
	n/a
	5/31/2016

	2/12/2009
	$60.19
	56,000
	56,000
	n/a
	5/31/2016

	3/1/2010
	$80.26
	63,675
	63,675
	n/a
	5/31/2016

	2/10/2011
	$78.76
	57,621
	57,621
	n/a
	5/31/2016

	2/17/2012
	$50.79
	132,244
	132,244
	n/a
	5/31/2016

	2/14/2013
	$59.30
	123,512
	82,341
	41,171
	5/31/2016

Contingent Deferred Units.  All contingent deferred units (“CDUs”) previously granted to you under the LTIP will be treated as if Transocean terminated your employment for the Convenience of the Company (as defined by and determined in accordance with the terms of the LTIP and the applicable award agreement) on the Termination Date.  In accordance with the LTIP and the applicable award agreements, you will receive a pro-rata portion of the CDUs that are outstanding as of your Termination Date.  For the avoidance of doubt, the following provides details regarding the status of your outstanding CDUs if you continue to be employed by Transocean until the Termination Date:
	
					
	Grant Date
	CDUs Held
	Forfeited as of Termination Date
	Outstanding as of Termination Date
	Earned

	2/14/2013
	46,020
	9,379
	36,641
	TBD*

	2/13/2014
	90,365
	49,821
	40,544
	TBD*

*In the event of a termination of employment for the Convenience of the Company, you receive a pro-rata portion of outstanding CDUs.  The pro-rata portion of the CDUs determined above is calculated by multiplying the number of CDUs held by a fraction, the numerator of which is the number of calendar days of employment during the performance cycle after the grant date and the denominator of which is the total number of calendar days in the performance cycle after the grant.  The determination of the earned and vested awards will be made within the first 60 days of 2016 and 2017 for the 2013 CDU award and 2014 CDU award, respectively, and the distribution of the earned and vested portion of such CDU awards will be made on March 15, 2016 and 2017, respectively.

3

		
	6.
	Benefits.

Transocean Ltd. Pension Equalization Plan and Transocean U.S. Supplemental Savings Plan (the “Non-qualified Plans”).  You will receive a lump sum payment in full satisfaction of your benefits under each of the Non-qualified Plans in accordance with the payment timing provisions of each of such plans, including, but not limited to, the provisions applicable to “specified employees” pursuant to Section 409A of the Internal Revenue Code of 1986, as amended. 

Expatriate Allowances.  You will continue to be entitled to all Expatriate Allowances outlined in Section 6 of your Employment Agreement through your Termination Date.  

Repatriation.  Transocean will provide repatriation benefits incurred on or before December 31, 2015, in accordance with Transocean policy.

Severance.  You will not be eligible to participate in any severance plan or arrangement established by Transocean, including but not limited to the Transocean Executive Severance Policy, and you agree that you will have no right to claim a benefit under any severance plan or arrangement.

Vacation.  Any entitlement for vacation and overtime work shall be fully discharged by the Compensation payment and the other benefits outlined in this Agreement.

Outplacement Services.  You will be eligible to receive outplacement services in accordance with the current Human Resources’ practice at a cost to Transocean not to exceed $62,500.

Health & Welfare Benefits.  Following your Termination Date you will continue to be eligible to participate in the Transocean International Medical Plan and Transocean International Dental Plan administered by MSH (or such medical and dental plans available to similarly situated U.S. employees) at the post-employment premium rates, through November 30, 2016, at which time such coverage shall cease.  

You are hereby informed that the mandatory accident insurance coverage provided by Transocean will cease thirty (30) days after the Termination Date and that after this period, if you remain in Switzerland; you are to provide your own accident insurance. Within thirty (30) days of the Termination Date, you may, at your own expense, request an extension of such coverage for a maximum of one hundred eighty (180) days after the Termination Date. In any event, you must inform your health insurance company about the termination of your employment with Transocean.
Other Benefits and Perquisites.  Except as otherwise provided in this Agreement, the terms and conditions of each Transocean benefit plan or program in which you participate as of the Termination Date shall continue to apply to any payments due and owing to you under the terms of such plan or program.  Nothing in this Agreement shall limit or constrain 

4

in any way Transocean’s ability to amend the terms and/or conditions of any such plan or program.

		
	7.
	Tax Treatment.  Transocean shall use commercially reasonable efforts to secure an extension of your certificate of coverage.  You acknowledge that in order to secure such extension the U.S. Social Security Administration may require confirmation by you of your intent to return to live in the United States on or before July 31, 2015.  Tax treatment during any period of extension of certificate of coverage will be handled consistent with past practice.  Notwithstanding the foregoing, tax withholding and reporting shall be handled in a manner consistent with applicable law.  The parties agree that Section 8 of the Employment Agreement is hereby incorporated by reference. 

		
	8.
	General Release.  In exchange for this Agreement you agree, on behalf of yourself, your heirs, relations, successors, executors, administrators, assigns, agents, representatives, attorneys, and anyone acting on your behalf as follows:

You irrevocably and unconditionally release, acquit, and forever discharge Transocean, and any predecessors or successors (collectively, the “Transocean Group”), and its and their past and present officers, directors, attorneys, insurers, agents, servants, suppliers, representatives, employees, affiliates, subsidiaries, parent companies, partners, predecessors and successors in interest, assigns and benefit plans (except with respect to vested benefits under such plans), and any other persons or firms for whom the Transocean Group could be legally responsible (collectively, “Released Parties”), from any and all claims, liabilities or causes of action, whether known or now unknown to you, arising from or related in any way to your employment or termination of your employment with Transocean and/or any of the Released Parties and occurring through the date you sign and return this Agreement; provided, however that this release shall not apply to the Transocean Group’s obligations to provide the severance pay and benefits described in Sections 3, 4, 5 and 6 of the Agreement, to your rights to defense and  indemnification as described below in Section 17 herein, or to any rights that you might have under any Transocean Group pension plan, 401(k) plan, retirement plan, health and welfare plan, or deferred compensation plan.
You acknowledge that this Agreement is your knowing and voluntary waiver of all rights or claims you may have against the Transocean Group.  In particular, you understand and agree that your waiver includes, but is not limited to, all waivable charges, complaints, claims, liabilities, actions, suits, rights, demands, costs, losses, damages or debts of any nature.  You further acknowledge and agree that your waiver of rights or claims is in exchange for valuable payments and other promises in addition to anything of value to which you may already be entitled.
You further acknowledge and agree that the Transocean Group has no obligation to reemploy, rehire or recall you, and promise that you shall not apply for re-employment with the Transocean Group.

5

		
	9.
	Miscellaneous.

You warrant, acknowledge and agree that:

Your acceptance of this Agreement is completely voluntary;

You are hereby being advised in writing by Transocean to consult with an attorney regarding the terms of this Agreement before accepting;

You are receiving under this Agreement consideration of value in addition to anything to which you are already entitled;

You understand that this Agreement includes a release and waiver of all claims, known and unknown, past or present, other than claims with respect to the rights arising under this Agreement;
    
You are fully competent to execute this Agreement, which you understand to be a binding contract;

You accept this Agreement including the waiver and release of your own free will, after having a reasonable period of time to review, study and deliberate regarding its meaning and effect, and without reliance on any representation of any kind or character not specifically included in writing in the Agreement;

You understand that Transocean is relying upon the truthfulness of the statements you make in the Agreement and you understand that Transocean would not enter into this Agreement if you did not make each of the representations and promises contained in the Agreement.

		
	10.
	Cooperation.  Following the termination of your employment with Transocean, you agree to reasonably cooperate with and make yourself available on a continuing basis to Transocean and its representatives and legal advisors in connection with any matters in which you are or were involved during your employment with Transocean or any existing or future claims, investigations, administrative proceedings, lawsuits and other legal and business matters as reasonably requested by Transocean.  You also agree to promptly send the General Counsel of Transocean Ltd. copies of all correspondence (for example, but not limited to, subpoenas) received by you in connection with any such matters involving or relating to Transocean, unless you are expressly prohibited by law from so doing.  You agree not to cooperate voluntarily in any third party claims against Transocean.  You agree that nothing in this Agreement restricts your ability to appropriately respond to a subpoena or other request from the government or regulators.  Transocean agrees to reimburse you for your reasonable out-of-pocket expenses incurred in connection with the performance of your obligations under this section.  

6

		
	11.
	Electronic Access.  Beginning on February 25, 2015 Transocean will terminate your user access from all Transocean systems including email and computer systems.  During the period beginning on the Resignation Date and ending on the Termination Date, the email address steven.newman@deepwater.com will remain active with the following auto-reply in effect: 

“Mr. Newman is no longer CEO of Transocean Ltd.  For issues related to Transocean Ltd., please contact Transocean’s Interim Chief Executive Officer at Ian.Strachan@deepwater.com.  Mr. Newman can be contacted at [e-mail redacted] +1 [phone number redacted].”
		
	12.
	Confidentiality.  You acknowledge that, in the course of your employment with Transocean, you have acquired Confidential Information which is and remains the exclusive property of Transocean. You agree not to divulge to any other person, firm, corporation or legal entity, any Confidential Information or trade secret of Transocean, except as required by law.  “Confidential Information” shall mean information:  (A) disclosed to or known by you as a consequence of or through your employment with Transocean; (B) not generally known outside of Transocean; and (C) which relates to any aspect of Transocean or their business, finances, operation plans, budgets, research, or strategic development.  “Confidential Information” includes, but is not limited to, Transocean’s trade secrets, proprietary information, financial documents, long range plans, customer information, employee compensation, marketing strategy, data bases, pricing and costing data, patent information, computer software developed by Transocean, investments made by Transocean, and any information provided to Transocean by a third party under restrictions against disclosure or use by Transocean or others.  

		
	13.
	Return of Transocean’s Property.  You acknowledge and agree that you will promptly return to Transocean no later than on the Termination Date all property pertaining to its business activities that is in your possession, as well as any other property of Transocean that you are expressly requested to return, including computers, files, documents, and other materials which were given to you by Transocean for your use during your employment or which are otherwise in your possession, custody or control.  Upon your return of such property, Transocean shall provide you with digital copies of the files and historical emails detailed in Annex 2. 

		
	14.
	Non-Disparagement.  You agree that, in acting alone or in concert with others, you will not (A) publicly criticize or disparage the Released Parties in a manner intended or reasonably calculated to result in public embarrassment to, or injury to the reputation of the Released Parties; (B) directly or indirectly, acting alone or acting in concert with others, institute or prosecute, or assist any person in any manner in instituting or prosecuting, any legal proceedings of any nature against the Released Parties; (C) commit damage to the property of Transocean or otherwise engage in any misconduct which is injurious to the business or reputation of Transocean; or (D) take any other action, or assist any person in taking any other action, that is adverse to the interests of Transocean or inconsistent with fostering the goodwill of Transocean.  Likewise, Transocean shall refrain, and shall use reasonable efforts 

7

to cause other Released Parties to refrain, from publishing any oral or written statements about you that are disparaging, slanderous, libelous, or defamatory; or that disclose private or confidential information about your business affairs.  Nothing in this Section 14 shall apply to or restrict in any way the communication of information by either party to any state or federal law enforcement agency, so long as you use your reasonable efforts to the extent reasonably practicable to provide prior notice to Transocean thereof, and neither party will be in breach of the covenants contained in this Section 14 solely by reason of testimony which is compelled by process of law.

		
	15.
	Non-Solicitation of Customers.  You agree that, during the one year period beginning on the Termination Date, you will not directly or indirectly, on your own behalf or on behalf of others, solicit or accept any business involving the provision of mobile offshore drilling units provided or produced by Transocean for the purpose of drilling offshore oil and gas wells from any person that was a customer or client or prospective customer or client of Transocean in any country during the period during which you were employed by Transocean.

		
	16.
	Non-Solicitation of Employees.  You agree that during the term of your employment under this Agreement and for a period of one year following the Termination Date, you will not either directly or indirectly solicit, induce, recruit or encourage any of Transocean’s employees to leave their employment, or take away such employees, or attempt to solicit, induce, recruit, encourage, take away or hire Transocean’s employees, either for yourself or any other person or entity.

		
	17.
	Indemnification Agreement.  Nothing in this Agreement shall act as a release or waiver by you of any rights of defense or indemnification which would otherwise be afforded to you under the Articles of Association of Transocean Ltd. or the similar governing documents of any affiliate of Transocean Ltd., or any rights of defense or indemnification afforded to you under the indemnification agreement previously entered into between you and Transocean, or any rights of defense or indemnification which would be afforded to you under any officer liability or other insurance policy maintained by Transocean.

		
	18.
	Enforcement of Agreement.  No waiver or nonaction with respect to any breach by the other party of any provision of this Agreement, nor the waiver or nonaction with respect to any breach of the provisions of similar agreements with other employees or consultants shall be construed to be a waiver of any succeeding breach of such provision, or as a waiver of the provision itself.  Should any provisions hereof be held to be invalid or wholly or partially unenforceable, such holdings shall not invalidate or void the remainder of this Agreement.  Portions held to be invalid or unenforceable shall be revised and reduced in scope so as to be valid and enforceable, or, if such is not possible, then such portion shall be deemed to have been wholly excluded with the same force and effect as if they had never been included herein. 

		
	19.
	Choice of Law.  This Agreement shall be interpreted and construed in accordance with and shall be governed by the laws of Switzerland, notwithstanding any conflicts of law principles 

8

which may refer to the laws of any other jurisdiction.  The place of jurisdiction for any and all disputes arising out of or in connection with this Agreement shall be the courts of Geneva.

		
	20.
	Notices.  Notices provided for in this Agreement shall be in writing and shall either be personally delivered by hand or sent by:  (i) mail service, postage prepaid, properly packaged, addressed and deposited with the mail service system; (ii) via facsimile transmission or electronic mail if the receiver acknowledges receipt; or (iii) via Federal Express or other expedited delivery service provided that acknowledgment of receipt is received and retained by the deliverer and furnished to the sender.  Notices to you by Transocean shall be delivered to the last address you have filed, in writing, with Transocean, and notices by you to Transocean shall be delivered to Transocean, c/o General Counsel, Chemin de Blandonnet 10, CH-1214 Vernier, Switzerland.

		
	21.
	Assignment.  This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and any successors or assigns of Transocean.

		
	22.
	Section 409A. This Agreement is intended to be operated in compliance with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) or an exception thereto.  Each provision of this Agreement will be interpreted, to the extent possible, to comply with Section 409A of the Code or to qualify for an applicable exception to the requirements of Section 409A.  The parties believe that the payments and benefits due pursuant to Section 3, 4, and 5 are exempt from the requirements of Section 409A of the Code and that the payments and benefits due under the Non-Qualified Plans comply with Section 409A.  With respect to any payments owed to you that constitute “nonqualified deferred compensation” for purposes of Section 409A of the Code, the parties agree that the “Resignation Date” shall constitute the date of your “separation from service” for purposes of Section 409A.  Payments of any amounts under the Non-Qualified Plans will not be made prior to the first to occur of (i) the first business day of the seventh month following your “separation from service” or (ii) the date of your death.  Under no circumstances may the time or schedule of any payment made or benefit provided pursuant to this Agreement be accelerated or subject to further deferral except as otherwise permitted or required pursuant to Section 409A of the Code and you do not have the right to make any election regarding the time or form of any payment due under this Agreement. Any reimbursement or in-kind payment provided pursuant to this Agreement or otherwise that constitutes “nonqualified deferred compensation” shall (i) be reimbursed no later than the last day of the tax year following the tax year in which the expense was incurred; (ii) not affect or be affected by any other expenses that are eligible for reimbursement in any other tax year; and (iii) not be subject to liquidation or exchange for any other benefit. 

Please confirm your understanding and acceptance of the above terms and conditions by signing and returning to us a copy of this Agreement. 

9

TRANSOCEAN LTD.

                       /s/ Ian Strachan                                      Date:  March 31, 2015
Ian Strachan
Interim Chief Executive Officer                                

                       /s/ Lars Sjobring                             Date:  March 31, 2015
Lars Sjobring 
Senior Vice President and General Counsel                

TRANSOCEAN OFFSHORE DEEPWATER DRILLING INC.
                       /s/ Keelan Adamson                 Date:  March 31, 2015
Keelan Adamson
Vice President, Human Resources            

ACCEPTANCE OF AGREEMENT BY EMPLOYEE
I hereby accept this Agreement and agree to be bound by the terms and conditions stated in it.  
Accepted this   31   day of March, 2015.  

      /s/ Steven Newman                                     
Steven Newman

10

ANNEX 1
WAIVER AND RELEASE FROM LIABILITY
        
WHEREAS, I have been employed by Transocean Offshore Deepwater Drilling Inc. (“TODDI”); and
WHEREAS, after due and considerate negotiations TODDI and I have entered into a termination agreement on             (the “Agreement”)
NOW, THEREFORE, in consideration of the covenants undertaken by TODDI in the Agreement, and except for those obligations created by, arising out of or referred to in the Agreement, I knowingly and voluntarily release and forever discharge TODDI and Transocean Ltd. and any present or former parent corporation, affiliates, subsidiaries, divisions, joint ventures, insurers, attorneys, benefit plans, plan administrators, successors and assigns and the current and former employees, officers, directors, representatives and agents of Transocean Ltd. (the “Transocean Group”), as well as all otherwise affiliated or related entities or persons of and from any and all claims, known and unknown I have or may have against the Transocean Group arising out of or in connection with my employment relationship with the Transocean Group; provided, however that this release shall not apply to TODDI’s obligations to provide the severance pay and benefits described in Sections 3, 4, 5 and 6 of the Agreement, to my rights to defense and  indemnification as described in Section 17 of the Agreement or to any rights that I might have under any Transocean Group pension plan, 401(k) plan, retirement plan, health and welfare plan, or deferred compensation plan. 

AGREED AND ACCEPTED this ____ day of ___________________________.
    

____________________________________
Steven Newman

11

ANNEX 2
LIST OF DIGITAL FILES
		
	•
	All historical email labeled “Personal” or “Sent Items” archived in Transocean’s digital archive systems or located on the laptop hard drive.

		
	•
	The following sub-directories located on laptop hard drive:

My Documents/Excel/Doc/Church
My Documents/Excel/Doc/Personal
My Documents/Misc    
My Documents/Personal
My Documents/Powerpoint/Files/Mines
My Documents/Powerpoint/Files/Personal
My Documents/Powerpoint/Files/Scouting
My Documents/Winword/Doc/Personal

12

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