Document:

Exhibit 10.3

 

 

April 16,2014

 

Mr. Brian F. Maxted
 4165 Walnut Meadow Ln.
 Dallas, TX 75229

 

Assignment Agreement: Chief Exploration Officer, Home Office, London, England

 

Dear Brian:

 

This agreement (“Agreement”) serves to document our mutual understanding and agreement concerning the terms pursuant to which you (the “Executive”) will undertake your new role as Chief Exploration Officer with Kosmos Energy LLC (the “Company”), on assignment to the Kosmos Energy LLC UK Branch.

 

1)                                     Title: Chief Exploration Officer.

 

2)                                     Employing Company: Kosmos Energy LLC, but with the Executive assigned to the Kosmos Energy LLC UK Branch.

 

3)                                     Term of the assignment: The assignment shall last no more than 5 years. It is agreed that the Executive shall not be required to relocate back to the US without his prior written consent.

 

4)                                     Work Location: The Executive’s primary work location shall be Surrey, England. However it is envisaged that the Executive will spend a portion of his working time in the Company’s Dallas, Texas office, as required and agreed with the Executive from time to time, consistent with the requirements of the attached CXO Job Description (attached as Exhibit A).

 

5)                                     Effective Date: March 1, 2014; provided, however that the UK aspect of the Executive’s work shall commence on April 7, 2014 (the “UK Start Date”). For the avoidance of doubt, the Executive’s continuous employment shall include his prior service with the Company which commenced in August 2003.

 

6)                                     Base Salary: US $653,328 per annum (as may be adjusted from time to time, the “Base Salary”), payable in regular installments in accordance with the Company’s usual payment practices. During the term of the assignment, the Base Salary may be increased (but not decreased) in the sole discretion of the Board of Directors of the Company or a committee thereof; provided that the Base Salary

 

Kosmos Energy, LLC

8176 Park Lane, Suite 500 Dallas, Texas 75231 Phone 214-445-9600 Fax 214 363 9024

 

 

may be decreased only if such reduction applies generally to other similarly senior employees of Kosmos Energy LLC.

 

7)                                     Target Bonus: 100% of the Base Salary (as may be adjusted from time to time, the “Target Bonus”), payable on terms no less favorable than those applicable generally to other similarly senior employees of Kosmos Energy LLC. During the term of the assignment, the Target Bonus may be increased (but not decreased) in the sole discretion of the Board of Directors of the Company or a committee thereof; provided that the Target Bonus may be decreased if such reduction applies generally to other similarly senior employees of Kosmos Energy LLC.

 

8)                                     Long Term Incentive Plan: For 2014, the Executive shall be entitled to receive a long-term incentive award no later than June 30,2014 with an aggregate value as of the grant date of not less than US $2,000,000 (the “2014 LTI Award”), to be awarded on terms no less favorable than those applicable generally to other similarly senior employees of the Company. The 2014 LTI Award shall be in the form of restricted shares of Kosmos Energy Ltd. Other long-term incentive awards, if any, granted during the term of the assignment shall be determined in the sole discretion of the Board of Directors of Kosmos Energy Ltd. or a committee thereof.

 

9)                                     Other Benefits: The Executive will continue to participate in all benefit plans and programs of the Company, which are now, or may hereafter be, available generally to the Company’s other senior executives and shall be entitled to at least the following fringe benefits: financial planning and executive health program. The Executive shall be provided health and dental coverage for the Executive and his eligible family members of generally equivalent quality and scope to the coverage provided by the Company to its other executives generally; provided, however that the Company shall ensure that such coverage applies both in the US and the UK. The Executive shall be entitled to sick leave and paid vacation in accordance with the Company’s policies applicable generally to its senior executives.

 

10)                              Expenses: The Company shall reimburse the Executive for all reasonable business expenses incurred by the Executive in performing services hereunder, including all travel and living expenses while away from London and/or Dallas on business or at the request of and in the service of the Company and professional body fees; provided, in each case, that such expenses are incurred and accounted for in accordance with the policies and procedures established by the Company. In addition, the Company shall reimburse the Executive for the reasonable costs incurred by him for travel (in accordance with the terms of the Company travel policy) between Dallas and the UK and travel, accommodation and related expenses in Dallas for purposes of undertaking services hereunder. In addition, the Company shall reimburse the Executive for all reasonable costs incurred in establishing and operating a home office (including but not limited to purchase of computer equipment, telephone charges and internet charges). Tax liabilities resulting from any expense reimbursements and/or benefits (if any) are the responsibility of the Executive.

 

 

11)                              Payments. The Executive will provide the account(s) where his compensation will be deposited as from the UK Start Date.

 

12)                              Social Security: The Executive will continue to participate in the United States Social Security system, as it is defined under the terms of the bilateral Social Security agreement (sometimes called a totalization agreement) between the US and the UK. The Company will be responsible for obtaining the Certificate of Coverage documenting the agreement to remain in the United States Social Security system. In addition, the Company will continue to contribute to the United States Social Security system for the required employer contributions due to be funded on the Executive’s taxable compensation.

 

13)                              Withholding of Payroll Taxes and Other Executive Deductions: The Executive will remain on US payroll during the term of the assignment and the costs of the assignment will be borne by the Company. In addition, the Company will adhere to the applicable UK shadow payroll reporting and withholding obligations during the term of the assignment. The Company shall withhold from any payments and benefits made pursuant to this Agreement all federal, state, city, foreign and other applicable taxes, social security, and other withholdings as may be required pursuant to any law or governmental regulation or ruling and all other customary deductions made with respect to the Company’s employees generally. To the extent that there is any overpayment of withholding tax or other contributions, the Company shall promptly pay to the Executive any refunds from any tax authorities which it receives on the Executive’s behalf in this regard. For the avoidance of doubt, the Company shall be solely responsible for the deductions of the corresponding withholdings and all corporate tax liabilities and/or employer taxes (including but not limited to social security) in the US and the UK

 

14)                              Individual Income Tax Returns: The Executive shall be personally responsible for his US and UK individual income tax return filing obligations and for any global tax liability incurred as a result of the assignment.

 

15)                              Other Interests: The Executive agrees to devote substantially all of his business time, energy and best efforts to the business and affairs of the Company and its affiliates. However, the Executive and the Company acknowledge that the Executive will continue, for the foreseeable future, to serve as a Director on the Board of Directors of Venari Resources LLC and that the Executive may assume other Director positions; provided that such activities shall be permitted only so long as they do not conflict with the business and affairs of the Company or interfere with the Executive’s performance of his duties for the Company or its affiliates, and shall at all times be consistent with the requirements of Kosmos Energy Ltd.’s Corporate Governance Policy.

 

16)                              No Right to Continued Employment: The Executive and the Company recognize and agree that, subject to the terms of this Agreement, (a) the Company may terminate the Executive’s employment at any time, for any reason or no reason at all, and (b) the Executive may terminate his employment at any time, for any reason or no reason at all.

 

 

17)                              Insurance and indemnification: The Executive will continue to be covered under the directors’ and officers’ liability insurance, advancement of costs and  indemnification rights as the Company and Kosmos Energy Ltd. may maintain for their respective directors, officers and employees from time to time to cover all directorships, offices and roles held by the Executive, in each case on terms no less favorable than applicable generally to their respective officers and directors (and for these purposes all discretions under any bye-laws shall be exercised in the Executive’s favor). This clause shall apply in addition to any rights which the Executive may have under any existing indemnification agreements. The Company shall ensure that all liability insurance and indemnification rights covers directorships, offices and roles held by the Executive both in the US and in the UK.

 

18)                              Guarantee: By countersigning this Agreement, the Company unconditionally and irrevocably guarantees due and punctual payment of all amounts payable by the Company to the Executive. If the Company defaults in payment or performance, the Company shall, upon receipt of written notice of such default, pay the Executive the amounts claimed in full.

 

19)                              Entire Agreement: This Agreement and the documents referenced herein constitute the entire agreement of the parties with regard to the subject matter hereof and supersede any and all prior understandings, agreements or correspondence between the parties. Any modification of this Agreement will be effective only if it is in writing and signed by the party to be charged.

 

20)                              Counterparts: This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

 

21)                              Governing Law: This Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas.

 

Sincerely,

 

	
/s/ Andrew G. Inglis
    	
 
    	
16th April 2014
    
	
Andrew G. Inglis 
    	
 
    	
Date
    
	
Chairman and Chief Executive Officer 
    	
 
    	
 
    
	
(signing on behalf of the Company)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
I agree to the terms and   conditions covering my assignment as set forth in this Agreement.
    
	
 
    	
 
    	
 
    
	
/s/ Brian F. Maxted
    	
 
    	
17 April 2014
    
	
Brian F. Maxted 
    	
 
    	
Date
    
	
Chief Exploration Officer
    	
 
    	
 
    

 

 

Exhibit A

 

 

CXO JOB DESCRIPTION

 

POSITION TITLE

 

·                  Chief Exploration Officer (CXO) and Director

 

REPORTS TO

 

·                  Andy Inglis Chairman / CEO

 

DIRECT REPORTS (Exploration Leadership Team - XLT)

 

·                  Line- Regional Vice Presidents for Sub- Saharan Africa, North West Africa, and Central and South America (3)

·                  Functional- Chief Geoscientist; VP Geology and VP Geophysics (3)

·                  Total 6

 

JOB SCOPE & ROLES

 

1.              Head of Exploration / Chair of the Exploration Leadership Team

2.              Member of the Senior Leadership Team (SLT- together with the CEO, COO, CFO, SVP BD, SVP / Head of External Affairs, and SVP / General Counsel)

 

JOB OBJECTIVES

 

1.              As H ad of Exploration

 

a.              Design and execute an strategy and plan which delivers the exploration finding targets

 

2.              As a Member of the Senior Leadership Team

 

a.              Together with the CEO and other NEO’s develop the Kosmos strategy and execute the company’s annual and long range plans to deliver the value growth targets and achieve top quartile shareholder performance

 

JOB RESPONSIBILITIES

 

1.              As Head of Exploration

 

a.              Formulate and update as necessary a frontier / emerging basin exploration strategy and plan to develop / maintain competitive advantage and deliver business growth

b.              Develop metrics and annual milestones / targets to measure annual performance and ensure delivery of the overall exploration plan

c.               Pursue new venture initiatives to identify and access strategic exploration opportunities and build / manage a balanced portfolio with the necessary size potential and risk exposure to deliver the Company’s finding targets within the capital budget allocation and plan time guidelines

 

Kosmos Energy, LLC

8176 Park Lane, Suite 500 Dallas, Texas 75231 Phone 214-445-9600 Fax 214 363 9024

 

 

d.              Define and de - risk petroleum systems / plays / prospects and mature basin / fairway - opening wells, high grade these and drill -out the current portfolio ensuring the necessary risked and independent resource exposure to deliver the exploration finding targets

e.               Build / maintain and lead a fit — for - purpose, highly - motivated and effective organization, with the necessary leadership skills and technical / business capability to deliver success, by hiring, retaining and developing best - in -class management, explorers and support staff

f.                Maintain knowledge and thought leadership, and enhance the Kosmos exploration brand and reputation among industry / state partners and with existing / new host governments

g.               Drive the Kosmos technical exploration workflow, ensuring standards are consistently met across the business, and integrated with other functional work / processes, including operational, commercial, financial, and legal to ensure optimal investment decision making

 

2.              As a Member of the Senior Leadership Team

 

a.              Together with the CEO and other NEO’s as a Leadership Team, deliver the corporate plan and manage the Kosmos organization

b.              Live the Company’s business principles, including consistently leading by
 example with regard to the key values, culture traits and behaviors, both internally
 / externally

 

JOB ACCOUNTABILITIES

 

1.              As Head of Exploration

 

a.              Exploration business performance

 

2.              As a Member of the Senior Leadership Team

 

a.              Together with the CEO and other NEO’s delivery of the corporate plan

b.              Internally, effectiveness of the organization and externally Kosmos relationships and reputation

 

LOCATION & TIME

 

·                  Full time London based (working from home)

 

·                  Managing partners (BP and Cairn), as well as industry networking and relationship building and deal sourcing and evaluation

 

·                  Up to two weeks a month in Dallas, or as required to ensure exceptional job performance

 

·                  Hands on leadership of the Exploration team and technical workflow

·                  Participate as member ofthe SLT and attend bi-weekly meetings

 

·                  Additional international travel as required to manage industry and government relationships, as well as identify/access new venture opportunitiesEXHIBIT 10.4

 

KOSMOS ENERGY, LLC

 

SEPARATION AND RELEASE AGREEMENT

 

I.  NOTICE — PLEASE READ CAREFULLY

 

·                   Legal Protections:  Various federal, state, and local laws, regulations, and ordinances protect employees against discrimination based on factors such as race, color, religion, sex, national origin, age, disability, citizenship, membership or application for membership in a uniformed service, and engaging in legally protected activity.  These laws are enforced by the Equal Employment Opportunity Commission, the U.S. Department of Labor, the Texas Workforce Commission - Civil Rights Division, and various other federal, state, and local agencies.  If you believe that you have been discriminated against, you have the right to contact those agencies.

 

·                   Separation and Release Agreement and Severance Benefit:  By this Separation and Release Agreement (the “Agreement”), Kosmos Energy, LLC (“Kosmos”) offers you the following severance benefit:  (i) paid outplacement services provided by a third-party provider selected by Kosmos in its sole discretion; and (ii) a mutual non-disparagement agreement (collectively, the “Severance Benefit”).  You may receive the Severance Benefit by (i) timely signing and not revoking the Agreement, and (ii) returning all Kosmos property, other than the mobile device (iPhone/Blackberry).

 

·                   Exceptions to the General Release:  The general release paragraph in the Agreement (paragraph 2 on the next page) does not (i) waive or release any rights or claims that may arise after the date you sign this Agreement, (ii) prevent you from filing any administrative unemployment compensation or workers’ compensation claims, or (iii) waive any benefits to which you have a vested entitlement under the terms of the applicable employee benefit plans established by Kosmos.

 

·                   Effective Date; Revocation Right:  To receive the Severance Benefit, you must sign and return this Agreement to Phillip B. Feiner, Assistant General Counsel, by email to pfeiner@kosmosenergy.com or by mail to 8176 Park Lane, Suite 500, Dallas, Texas 75231, so that he receives it no later than June 20, 2014, which is at least 45 days after you received this Agreement for consideration.  You may sign and return the Agreement at any time before the deadline.  The Agreement will become effective and enforceable on the eighth day after you sign it (the “Effective Date”), unless before then you revoke your acceptance in writing and deliver your written revocation to Phillip Feiner within the revocation period.  If you revoke your acceptance of the Agreement, however, you will not receive the Severance Benefit.

 

·                   Right to Consult an Attorney:  You have the right, and Kosmos specifically advises you by this paragraph, to consult with an attorney of your choice before signing this Agreement.  Even if you do not consult an attorney, you should carefully read and understand the effect of this Agreement before signing it.

 

1

 

II.  TERMS OF AGREEMENT

 

1.             Ending of Employment and Severance Benefit.  I understand my employment with Kosmos ended on May 5, 2014 (the “Termination Date”).  I further understand that I will receive my regular wages and accrued unused vacation through the Termination Date, along with $938,432.00 in severance pay in accordance with my November 22, 2011 offer letter, within six days of the Termination Date, as required by section 61.014 of the Texas Labor Code.  If I accept this Agreement by signing below and do not revoke my acceptance as permitted above, Kosmos will provide the Severance Benefit to me.  I acknowledge that the vesting of any service and performance shares will be in accordance with the Kosmos Energy Ltd. Long Term Incentive Plan and various applicable award agreements.

 

2.             General Release.  In exchange for the Severance Benefit, I release, acquit, and forever discharge (i) Kosmos, (ii) any parent, subsidiary, or affiliated entity of Kosmos, (iii) any current or former officer, stockholder, member, director, partner, agent, manager, employee, representative, insurer, or attorney of the entities described in (i) or (ii), (iv) any employee benefit plan sponsored or administered by any person or entity described in (i), (ii), or (iii), and (v) any successor or assign of any person or entity described in (i), (ii), (iii), or (iv) (collectively, the “Kosmos Parties”) from, and waive to the maximum extent permitted by applicable law, any and all claims, liabilities, demands, and causes of action of whatever character, whether known or unknown, fixed or contingent, or vicarious, derivative, or direct, that I may have or claim against Kosmos or any of the other Kosmos Parties.  I understand that this General Release includes, but is not limited to, any and all claims arising under federal, state, or local laws prohibiting employment discrimination, including the Age Discrimination in Employment Act, or other claims growing out of, resulting from, or connected in any way with my employment with Kosmos or the ending of my employment with Kosmos.

 

3.             Supplemental Age Distribution Information Memorandum and Chart.  I acknowledge and agree that I have received contemporaneously with this Agreement a Supplemental Age Distribution Information Memorandum and Supplemental Age Distribution Information Chart (together, the “Memorandum”), which identify the job titles and ages of all Kosmos employees (i) who are eligible to receive a severance benefit in exchange for signing a Separation and Release Agreement because their employment will end in connection with the Restructuring, and (ii) who are not eligible to receive a severance benefit in exchange for signing a Separation and Release Agreement because their employment will not end in connection with the Restructuring.

 

4.             Cooperation.  In exchange for the Severance Benefit, and without further consideration, I agree to cooperate fully and completely with Kosmos and any of the other Kosmos Parties with respect to matters on which I worked during my employment and to assist with pending or future legal investigations, proceedings, or litigation, public or private, involving Kosmos or any of the other Kosmos Parties on matters about which I have personal knowledge.  This obligation includes my promptly meeting with representatives of Kosmos or the other Kosmos Parties, either personally or by

 

2

 

telephone, at reasonable times upon their request and without unreasonable interference with my employment or personal activities, and providing information and, where applicable, testimony, that is truthful, accurate, and complete, according to information known to me.

 

5.             Non-Disclosure.  In exchange for the Severance Benefit, I agree that I will not disclose the terms of this Agreement to any persons other than my spouse, if any, attorneys, and accountant or tax return preparer, if those persons have agreed to keep such information confidential.

 

6.             Non-Disparagement.

 

a.             In exchange for the Severance Benefit, I agree that I will not make to any other party any statement (whether oral, written, electronic, anonymous, on the Internet, or otherwise) that directly or indirectly impugns the quality or integrity of Kosmos’ or any of the other Kosmos Parties’ business or employment practices, or any other disparaging or derogatory remarks about Kosmos or any of the other Kosmos Parties.

 

b.             Kosmos agrees to instruct its senior leadership team and Board of Directors not to make to any other party any statement (whether oral, written, electronic, anonymous, on the Internet, or otherwise) that directly or indirectly impugns the quality or integrity of your work performance, employability, or overall integrity, or to make to any other parties any disparaging or derogatory remarks about you.

 

7.             Return of Property; Confidential Information.  I acknowledge that I have returned to Kosmos all items of its or any of the other Kosmos Parties’ property — other than the mobile device (iPhone/Blackberry) — and further agree to deliver immediately to Kosmos any such additional items that I may discover in my possession.  I acknowledge that all of the documents, data, and information (in any form) concerning the business and operations of Kosmos or any of the other Kosmos Parties to which I had access during my employment are confidential and may not be disseminated or disclosed by me to any other persons or parties, except as may be authorized in writing by Kosmos, or as required by law or judicial process.

 

8.             Permitted Activities.  I understand that nothing in this Agreement precludes me from (i) from filing a charge or complaint with, providing information to, or cooperating with an investigation conducted by, a government agency; (ii) providing information to my attorney (if any); (iii) making disclosures or giving truthful testimony as required by law or valid legal process (such as by a subpoena); or (iv) engaging in other legally-protected concerted activities.  I acknowledge and agree, however, that I forever waive any right to recover, and I will not request or accept, anything of value from any of the Kosmos Parties arising out of or connected in any way with my employment or the ending of my employment with Kosmos, the employment practices of Kosmos, or with any other act, conduct, or omission of any of the Kosmos Parties, other than the Severance Benefit, whether sought directly by me or by any government agency, individuals, or group of individuals on my behalf.

 

3

 

9.             Jury Waiver.  In exchange for the Severance Benefit, I irrevocably waive the right to trial by jury and agree not to initiate or participate in any class or collective action with respect to any claim or cause of action arising from my employment or the ending of my employment with Kosmos or from this Agreement (either for alleged breach or enforcement).

 

10.          Entire Agreement.  This Agreement contains the entire understanding and agreement between me and Kosmos regarding the ending of my employment with Kosmos, Severance Benefit, and release of claims, and supersedes all prior statements, understandings, and agreements regarding those subjects.

 

11.          Acknowledgments.  I acknowledge and agree that (i) I have read this Agreement and the Memorandum; (ii) by this paragraph, Kosmos specifically has advised me to consult an attorney and I have had the opportunity to consult an attorney; (iii) I have had at least 45 days to consider and fully understand the effect of signing this Agreement; (iv) my signing of this Agreement is knowing, voluntary, and based solely on my own judgment in consultation with my attorney, if any; (v) I am not relying on any written or oral statement or promise from Kosmos or any of the other Kosmos Parties other than as set out in this Agreement and the Memorandum; and (vi) this Agreement does not constitute any admission of liability on the part of Kosmos or any of the other Kosmos Parties.

 

12.          Governing Law; Forum. This General Release shall be governed by and construed in accordance with the laws of the State of Texas without regard to its rules regarding conflict of laws.  Exclusive venue for purposes of any dispute, controversy, claim, or cause of action between the parties arising out of or related to this Agreement is in any state or federal court of competent jurisdiction presiding over Dallas County, Texas.  Nothing in this Agreement, however, precludes Kosmos from seeking to remove a civil action from any state court to federal court.

 

 

	
AGREED:
    	
/s/   Darrell McKenna
    	
 
    	
May 12,   2014
    
	
 
    	
Signature
    	
 
    	
Date   Signed
    

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00233-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00233-of-00352.parquet"}]]