Document:

Exhibit
10.1

COMPENSATION
POLICY FOR THE

BOARD OF DIRECTORS OF COMFORT SYSTEMS USA,
INC.

Board
Remuneration—Non-Employee Directors

I.                                         EQUITY:  10,000 options at fair
market value at each annual meeting, all as set forth in the Company’s 2006
Stock Options/SAR Plan for Non-Employee Directors.

II.                                     ANNUAL RETAINER (PAID QUARTERLY):

$30,000 ($4,000 additional if committee chair;
$10,000 additional if audit chair)

III.                                 MEETING ATTENDANCE FEES:

	
  Board Meeting (in person)

  	
   

  	
  $3,000

  
	
   

  	
   

  	
   

  
	
  Committee Meetings (unless on same day)

  	
   

  	
  $2,000

  
	
   

  	
   

  	
   

  
	
  Telephonic Meeting, or Telephonic Attendance

  	
   

  	
  $1,000

  
	
  (meeting chair receives full fee)Exhibit 10.1

EMPLOYMENT AGREEMENT

EMPLOYMENT
AGREEMENT (this “Agreement”), dated effective as of November
14, 2006, by and between Warren E&P, Inc., a New Mexico corporation (the “Company”),
and Bruce Berwager (the “Employee”).

W I T N E S S E T H:

WHEREAS, the
Company desires to employ the Employee upon the terms and conditions set forth
in this Agreement; and

WHEREAS, the
Employee desires to accept an offer of employment with the Company upon the
terms and conditions set forth herein;

NOW,
THEREFORE, in consideration of the premises and the
respective covenants and agreements of the parties herein contained, and
intending to be legally bound hereby, the parties hereto agree as follows:

1.             Employment. 
The Company hereby agrees to employ the Employee, and the Employee hereby
agrees to serve the Company, on the terms and conditions hereinafter set forth
in this Agreement.

2.             Term. 
This Agreement, and the employment of the Employee by the Company hereunder,
will commence on the date hereof (the “Effective Date”) and terminate on
December 31, 2008 (the “Initial Term”), subject to termination as set
forth herein (the “Employment Period”).  As used herein, the term “Employment
Year” shall mean each consecutive twelve (12) month period during the
Employment Period commencing on the Effective Date, or the yearly anniversary
thereof, as the case may be. Effective on the second anniversary of the
Effective Date, and each subsequent anniversary date thereafter, the term of
this Agreement as then in effect shall be automatically extended for an
additional one (1) year term unless, at least three (3) months prior to such
anniversary date, the Company or the Employee shall give written notice to the
other party that it or he, as the case may be, in its or his sole discretion,
does not wish to so extend the term of this Agreement.

3.             Position
and Duties.  Subject to the provisions of this
Section 3, during the Employment Period, the Employee shall serve as the Senior
Vice President and General Manager - California of the Company, and shall
faithfully perform the duties and responsibilities normally associated with
such positions, subject to the oversight and direction of the Chief Executive
Officer of the Company and the Board of Directors of the Company.

 

4.             Place of
Employment.  Generally, the Employee will fulfill all
duties and responsibilities to the Company as set forth herein from the current
place of business of the Company in California, located at 301 East Ocean
Boulevard, Long Beach, California and at its nearby Wilmington Townlot Unit and
North Wilmington Unit oil and gas field operations in Wilmington, California,
or to any other place where the principal place of business the Company may be
relocated within a 120 mile radius of Santa Barbara County, California, unless
otherwise agreed to by the Employee.

5.             Best Efforts.  The Employee’s employment with the Company shall be his full business
time and Employee shall devote his best efforts exclusively to the performance
of his duties and responsibilities as set forth in this Agreement, which duties
and responsibilities shall be performed competently, carefully and
faithfully.  Except as provided below, the Employee shall not, while an
employee of the Company and without the prior written consent of the Company,
engage in any other gainful occupation or activity which conflicts with or
impinges upon the full and faithful performance of the Employee’s duties, or
otherwise violates any other term or provision of this Agreement.  It is
expressly understood and agreed, however, that the provisions of this
Section 5 shall not be construed to prevent the Employee from pursuing any
other activity or profession in his own personal time not devoted to the
Company, including investing for his own account or pursuing charitable or civic
activities; provided, that such activities do not impair the performance
by the Employee of his duties and responsibilities hereunder, or otherwise
violate any provision of this Agreement, and that Employee shall not become
employed by or affiliated with another company in the oil and gas industry.

6.             The Employee’s Compensation.

(a)           Salary. 
During the Employment Period, for the services described herein the Company
shall pay to the Employee an annual base salary of not less than $265,000 (as
adjusted pursuant to the terms hereof, the “Base Compensation”), which
shall be paid in 26 equal installments in accordance with Employer’s standard
payroll practice. Commencing after one full year of employment, the Base
Compensation shall be increased on each January 1st of this Agreement by any
increases in the cost of living based on the changes in the “Consumer Price
Index” as published from time to time by the U.S. Department of Commerce for
the Los Angeles, California metropolitan area. The Base Compensation will be
paid to the Employee in accordance with the normal payroll practices of the
Company in effect from time to time, less all required withholdings for
benefits, federal, state and local taxes, if any.  The amount of the Base
Compensation may, in the Company’s discretion, be increased by the Company on
an annual basis during the Employment Period.  All increases to the Base
Compensation, if any, shall be based on the condition of the Company’s business
and results of operations and the Company’s evaluation of the Employee’s
individual performance for the relevant period.  Any increases made to the
Base Compensation shall be in the discretion of the Company.

 2
 

 

(b)           Signing Bonus. As
of the Effective Date, the Company grants Employee, as a signing bonus (the “Signing
Bonus”), the amount of $75,000. In the event that Employee leaves the employ of
the Company voluntarily during the first six months of employment, Employee will
be required to repay all of the Signing Bonus, including the taxes paid by the
Company. In the event that Employee leaves the employ of Warren voluntarily
during the eighteen months following the first six months of employment, Employee
will be required to repay a pro-rated amount of the Signing Bonus, including
the taxes paid by the Company on Employee’s behalf. The repayment amount will
be calculated by dividing the total amount of Employee’s Signing Bonus by 18
months and multiplying that number by the number of months left until the
two-year anniversary of the Effective Date. After two years, Employee would
have no obligation to repay the Signing Bonus if Employee leaves the Company
voluntarily.

(c)           Incentive Bonus
Compensation.  In addition to the Base Compensation to
which the Employee is entitled under Section 6(a), the Employee shall be
eligible to be awarded incentive bonus compensation (the “Bonus Compensation”)
with respect to each calendar year or portion thereof during which the Employee
was employed by the Company hereunder equal to up to and including 75% of the
Employee’s Base Compensation.  The criteria for determining the amount of
the Bonus Compensation shall be determined by mutual agreement between the
Employee and the Chief Executive Officer of the Company and shall by approved
by the Compensation Committee of the Board of Directors. Incentive Bonus
Compensation shall be deemed earned at the end of each Employment Year and paid
within 90 days following the end of the calendar year.

(d)           Stock Options. 
Employee shall be entitled to participate in the 2000 Equity Incentive Plan for
the Employees of Warren E&P, Inc. (the “Equity Incentive Plan”),
established by its parent corporation Warren Resources, Inc.(“Warren”), and
will be awarded upon execution hereof 50,000 stock options exercisable for
Warren common stock at the price per share equal to the closing market price of
Warren’s publicly traded common stock as reported by the NASDAQ Stock Market on
the Employee’s actual first day of employment and exercisable for a period
ending five years after the date of grant of the option (the “Options”).  The
Options vest equally over a three-year period, meaning that Employee shall have
the vested right to exercise 1/3rd of
the Options after the first year of employment, 1/3rd of
the Options shall become vested after the second year and 1/3rd of
the Options become vested after the third year. The grant of such Options shall
be documented with a formal award letter from the Company to the Employee
setting forth the terms and conditions of Employee’s Options. Also, Employee
will be eligible for annual stock option awards during the first quarter of each
year in an amount which shall be determined by the Compensation Committee of
the Board of Directors and, again, adjusted for performance and time employed
during the first year.

(e)           Temporary Housing.
During the term of this Agreement, as an accommodation to the
Company to have Employee located near the operations of the Company in
Wilmington, California, Employee shall be provided housing adjacent to the 

 3
 

 

Wilmington Townlot Unit in a 2-bedroom
duplex apartment (the “Apartment”) owned by the Company at no rental expense to
the Employee; provided, however, Employee shall be responsible for utilities
and other incidental costs of occupying the Apartment.

7.             The Employee’s Benefits.  As an employee of the Company, the Employee shall be entitled to receive
and enjoy the following benefits during the Employment Period:

(a)           Participation in Company Benefit Plans.  The Employee shall be entitled to
participate in and to receive benefits generally available to senior executives
under those certain employee benefit plans and arrangements which may be
offered by the Company from time to time during the Employment Period, subject
to and on a basis consistent with the terms, conditions and overall administration
of such plans and arrangements by the Company.  The Company shall provide the
same full medical, hospitalization and dental HMO insurance coverage for the
Employee as provided to other senior executives from time to time. Employee
shall be eligible to participate in the Company’s 401(k) retirement plan, and
the Company shall match 100% of Employee’s contributions up to the maximum
annual limit allowed by applicable ERISA and Internal Revenue Code law and
regulations.

(b)           Vacations.  The Employee shall
be entitled four (4) weeks of paid vacation per Employment Year, provided that
any vacations are to be taken at times mutually agreeable to the Company and
the Employee.  In addition to the foregoing, the Employee shall be
entitled to receive all paid holidays given by the Company to its employees
generally. Any accrued but unused vacation days in an Employment Year shall be
reimbursed in cash to Employee upon a termination of his employment, hereunder
and based prorate upon the actual number of days lapsed during the Employment
year divided by 365 days, provided that at any time Employee may not have more
than 4 weeks vacation accrued.

(c)           Business Expense
Reimbursement.  The Company shall promptly reimburse or pay
the Employee for all reasonable and necessary business expenses paid or
incurred by the Employee in performing his duties and responsibilities
hereunder, including, but not limited to, travel, entertainment, subscription
and dues associated with Employee’s membership in professional, business and
civic organizations; provided, that, the Employee shall have (i)
submitted such reasonable documentation as may be requested by the Company in
accordance with the reimbursement policies of the Company in effect from time
to time and (ii) obtained the prior approval of the Company for all charges in
excess of $5,000.

8.             Termination of Employment.  The Employee’s employment with the Company may be terminated as follows:

(a)           With Cause.  The Employee’s employment with the Company may be terminated by the
Company at any time for “Cause.”  As used herein, the term 

 4
 

 

“Cause” shall refer to the following: (i)
theft, fraud, dishonesty, gross negligence or willful malfeasance by the
Employee in connection with the performance of his duties hereunder (collectively,
“Theft Events”); (ii) a material breach or failure to fulfill and perform the
Employee’s duties hereunder, which breach or failure is not cured to the
reasonable satisfaction of the Company within forty-five (45) days after
written demand from the Company (if such breach is at all curable during such
time in the reasonable determination of the Company; failing such
determination, “Cause” shall have occurred upon the occurrence of such breach
or failure); (iii) conviction of a felony or a crime involving moral turpitude;
(iv) habitual neglect of duties or misconduct in the performance of the
Employee’s duties and responsibilities hereunder following an initial notice of
warning from the Company with respect thereto; or (v) a repeated or ongoing
failure to comply with the reasonable directions and instructions of management
of the Company in connection with the performance of the Employee’s duties and
responsibilities hereunder following an initial notice of warning from the
Company with respect thereto.  Upon termination for Cause, all rights of
the Employee under this Agreement shall immediately terminate and the Company
shall have no further obligations.  Except with respect to an election to
not renew the Agreement timely made within ninety (90) days before the end of
the Initial Term or an extension thereof, or a termination made by the Company
Without Cause, a termination of the Employee’s Employment made by the Employee
upon his voluntary resignation or voluntary retirement shall be treated as a
termination for Cause. Upon a termination for Cause, Employee shall receive in
full satisfaction of all amounts due to him an amount equal to the remainder of
Base Compensation through date of termination. Notwithstanding any of the
foregoing, in the event that the Company has terminated Employee’s employment
on account of a Theft Event, the Company shall be entitled to withhold from any
amounts otherwise due to Employee under this Subsection 8(a) the amount of
monetary damages incurred by the Company from such Theft Event which shall be
quantified and determined in writing by the Company within 90 days after the
date of termination. The Employee agrees that his eligibility to receive any
and all amounts described in this Section 8(a) shall be subject to and
contingent upon the Employee’s execution of a full and complete general release
in favor of the Company and its affiliated persons and entities, satisfactory
to the Company in its sole discretion.

(b)           Without Cause.  The Employee’s employment with the Company may be terminated by the
Company at any time without Cause, but in the event of any such termination
pursuant to this Section 8(b), the Company will pay, in addition to any
other amounts due hereunder, the Employee severance pay in an amount equal to the
greater of (i) Employee’s remaining
Base Compensation then in effect for the balance of the term, or (ii) Fifty (50%)
percent of Employee’s annual Base Compensation then in effect, with such
amounts to be payable upon execution and delivery of the release described below,
less all required withholdings and in accordance with then current payroll
practices of the Company and applicable law or regulation. Additionally, in the
event of termination without Cause, Employee will be immediately vested in all
stock options granted and will be under no obligation to repay any of the
Signing Bonus. Notwithstanding the foregoing, in the event of a termination by
the Company without Cause in connection with a “Change of Control Event”, as
defined under Section 8(d) 

 5
 

 

below, then the compensation to Employee provided
under Section 8(d) shall govern. In addition, Employee shall receive any
accrued but unpaid vacation time for the current Employment Year. The Employee
agrees that his eligibility to receive all amounts described in this
Section 8(b) shall be subject to and contingent upon the Employee’s
execution of a full and complete general release in favor of the Company and
its affiliated persons and entities, satisfactory to the Company in its sole
discretion; provided that such condition for receiving additional severance
shall not apply to previously earned Base Compensation and accrued but unused
vacation time up to the date of termination.

(c)           Termination for Death or Disability.  The Employee’s employment hereunder shall
terminate immediately upon the Employee’s death or Disability.  For
purposes of the preceding sentence, the term “Disability” shall mean the
Employee’s inability, by reason of physical or mental incapacity (determined by
a licensed physician reasonably acceptable to the Employee and the Company), to
perform the essential functions of his job, with or without a reasonable
accommodation by the Company, for an aggregate of ninety (90) days during any
twelve (12) month period, provided further
that during any such continuous period, the Employee’s Base Compensation
payable under Section 6(a) shall be reduced by the amount, if any, of
payments to the Employee under any short-term or long-term disability insurance
policy, plan or program maintained by the Company.  During any period when
the Employee implicitly or explicitly purports to be unable to perform his
duties hereunder by reason of physical or mental illness, incapacity or
disability, the Employee, at the request and expense of Company, shall submit to
one or more examinations by a physician of the Company’s choice. A termination
of the Employee’s employment with the Company due to any of the foregoing
provisions of this Section 8(c) shall be treated as a termination without
Cause hereunder.

(d)           Termination by Employee for Good Reason.  Employee shall
have the right to terminate this Agreement for “Good Reason”. The following
events affecting Employee shall constitute “Good Reason” within the meaning of
this Agreement: (i) if Employee, at any time during the Employment Period
(except during a period of Disability), has suffered a material change or
diminution in duties and responsibilities from those contemplated herein, or
(ii) if there is a Change of Control Event, as defined below.

For purposes of this Employment Agreement, a “Change
of Control” shall mean the happening of any of the following:

(i)            the
acquisition by any person or group deemed a person under Sections 3(a)(9) and
13(d)(3) of the Securities Exchange Act of 1934 (the “Exchange Act”) (other
than the Company and its subsidiaries as determined immediately prior to that
date) of beneficial ownership, directly or indirectly (with beneficial
ownership determined as provided in Rule 13d-3, or any successor rule, under
the Exchange Act), of a majority of the total combined voting power of all
classes of stock of the Company having the right under ordinary circumstances
to vote at an election of the Board of Directors of the Company, if such person
or group deemed a person was not a beneficial 

 6
 

 

owner of at least five percent (5%) of such total
combined voting power of the Company on the date of this Agreement;

(ii)           the
election to the Board of Directors of the Company of members as a result of
which a majority of the Board of Directors shall consist of persons who are not
members of the Board of Directors as of the Effective Date (including Employee
as a member of the Board of Directors as of the Effective Date), except in the
event that such slate of Directors is proposed by the management of the Company;

(iii)          the
date of approval by the stockholders of the Company of an agreement providing
for the merger or consolidation of the Company with another corporation or
other entity where (x) stockholders of the Company immediately prior to such
merger or consolidation would not beneficially own following such merger or
consolidation shares entitling such stockholders to 50% or more of all votes
(without consolidation of the rights of any class of stock to elect directors
by a separate class vote) to which all stockholders of the surviving
corporation would be entitled in the election of directors, or (y) where the
members of the Board of Directors, immediately prior to such merger or
consolidation, would not, immediately after such merger or consolidation,
constitute a majority of the board of directors of the surviving corporation;

(iv)          the
sale of all or substantially all of the assets of the Company; or

(v)           the
sale of all or substantially all of the California assets of the Company.

Upon
the occurrence of any of the foregoing events, Employee may terminate this
Agreement and the Company shall pay Employee a cash severance payment in a lump
sum in an amount equal to twelve (12) months of Employee’s then current Base
Compensation (less applicable withholding), paid immediately prior to the
effective date of the Change of Control. Additionally, 100% of all outstanding
stock options granted and restricted stock issued by the Company to Employee,
together with any options issued in a tender offer in exchange for such
outstanding options (collectively the “Outstanding Options”), shall vest, and
all vested Outstanding Options, including the accelerated options described
above, shall be exercisable by Employee for a period of one year following the
end of any transition period or one year following termination if the Company
requests no transition period.

(e)           Status upon Termination.  The termination
of this Agreement, and the Employee’s employment hereunder, for any reason
whatsoever shall constitute the Employee’s effective termination and
resignation from any other positions or duties with the Company and all of its
affiliates.

(f)            Effect of Termination.

(i)            In the event of a termination of the
Employee’s employment with the Company hereunder for any reason, in addition
and subject to the provisions of Sections 8(a), 8(b), 8(c) and 8(d), the
Employee shall be 

 7
 

 

entitled to receive all Base Compensation and accrued
benefits owing through the date of termination in accordance with the Company’s
normal practices then in effect.

(ii)           In
the event of a termination of the Employee’s employment without Cause pursuant
to Sections 8(b), 8(c) or 8(d) above, the Company shall also pay the Employee
severance compensation in accordance with Section 8(b) and 8(d)
above.  Furthermore, if the Employee is terminated without Cause, or the
employment ceases under Section 8(b), 8(c) or 8(d), all unvested options
granted to the Employee pursuant to the Equity Incentive Plan shall become
fully vested and be kept in effect for a period of one year following the
Employee’s termination of employment.

(iii)          In
the event of a termination of the Employee’s employment with the Company
hereunder for Cause pursuant to Section 8(a) above, all rights of the
Employee under this Agreement shall immediately terminate and the Company shall
have no further obligations hereunder, subject to Section 8(f)(i) above
and this provision. Furthermore, if the Employee is terminated for Cause, all
unvested options granted to the Employee pursuant to the Equity Inventive Plan
shall terminate.

9.             Noncompetition and
Confidentiality.

(a)           Noncompetition.  Subject to any applicable right to work laws in California, during the
Employment Period and, in the case of a termination of the Employee’s
employment for Cause, for a period of six (6) months following the date of
termination of employment, or, in the case of a termination of the Employee’s
employment without Cause, for a period of one day following the date of
termination of employment (the “Covered Period”), the Employee agrees
not to engage in any Competitive Activity within the State of California. 
As used herein, the term “Competitive Activity” shall mean the
following:  (i) providing competitive services, other than on behalf of
the Company, to any Customer (as defined below); (ii) serving as an officer,
director, employee, consultant, advisor, agent or representative of, or
otherwise associating in any other capacity with, any person, corporation,
partnership, limited liability company, sole proprietorship, association or
other business enterprise, other than the Company, engaged in the business of
oil and gas exploration, drilling and production or any other business in which
the Company is engaged (each, a “Competitive Enterprise”), or engaging
individually in any Competitive Enterprise; (iii) owning or acquiring, directly
or indirectly, any interest in any Competitive Enterprise (provided, however,
the Employee shall be allowed to passively own for investment purposes,
directly or indirectly, no more than ten percent (10%) of the issued and
outstanding publicly traded securities of any issuer engaged in a Competitive
Enterprise); (iv) soliciting or inducing any partner, stockholder, member,
principal, director, officer, employee, consultant, agent or other representative
of the Company or one or more affiliates to leave the employ or retention of
the Company or such affiliate or hiring away any of the foregoing persons;
and/or (v) encouraging, requesting or advising, explicitly or 

 8
 

 

implicitly, any Customer or supplier of the
Company or one or more of its affiliates to withdraw, curtail or cancel its
business relationships with the Company or any affiliate thereof (unless
expressly requested to do so by the Company as part of the Employee’s
employment services provided hereunder).

As used in this Section 9, the term “Customer”
shall include any person who is or was a customer of the Company or an
affiliate thereof at any time during the period commencing with the Employment
Period through the end of the Covered Period.

(b)           Confidentiality.  Subject to any applicable right to
work laws in California, during the Employment Period and for a period of
three (3) years thereafter, the Employee shall not, except as may otherwise be
required by law, directly or indirectly disclose to any person or entity, or
use or cause to be used in any manner adverse to the interests of the Company
or any affiliate thereof, any Confidential Information (as defined below in
this Section 9(b)).  The Employee agrees that, upon the termination
of his employment with the Company for any reason, all Confidential Information
(other than a copy of this Agreement and any other agreements that have been
personally executed by the Employee other than in his capacity as an officer of
the Company) and duplicates thereof in the possession or control of the
Employee, in any form or format, including, without limitation, written,
visual, audio, electronic or magnetic formats, shall forthwith be returned to
the Company and shall not be retained by the Employee or furnished or
communicated to any third party in any form whatsoever.

As used in this Section 9(b), the term “Confidential
Information” shall mean the following:  (i) information disclosed to
the Employee or known by the Employee as a consequence of the Employee’s
relationship with the Company or any Affiliate thereof, as defined below, not
generally known in the Company’s business, about the Company’s or an Affiliate’s
employees, customers, directors, officers, partners, shareholders, advertising
methods, public relations methods, business plans, operations, methods,
processes and forecasts, vendors, finances, trade marks, trade secrets, source
code, patent applications, manuals, designs, technical specifications and other
intellectual property; (ii) information disclosed to the Employee or known by
the Employee as a consequence of the Employee’s relationship with the Company
or any Affiliate thereof, not generally known in the businesses in which the
customers of the Company or its affiliates are or may be engaged, about the
products, processes, operations, trade information and services of any such
customer; or (iii) information disclosed to the Employee by the Company or any
of its affiliate which is marked as “confidential” or, if communicated verbally,
is followed up by written correspondence designating such information as “confidential.”
Affiliate shall mean any person or entity that directly, or indirectly, through
one or more intermediaries, controls, or is controlled by, or is under common
control with, the Company.

(c)           Severability.  The invalidity or nonenforceability of any
provision of this Section 9 in any respect shall not affect the validity
or enforceability of the other provisions of this Section 9 in any other
respect, or of any other provision of this Agreement.  In the event that
any provision of this Section 9 shall be held invalid or 

 9
 

 

unenforceable by a court of competent jurisdiction
by reason of the geographic or business scope or the duration thereof or for
any other reason, such invalidity or unenforceability shall attach only to the
particular aspects of such provision found invalid or unenforceable as applied
and shall not affect or render invalid or unenforceable any other provision of
this Section 9 or the enforcement of such provision in other
circumstances, and this Section 9 shall be construed as if the geographic
or business scope or the duration of such provision or other basis on which
such provision has been challenged had been more narrowly drafted so as not to
be invalid or unenforceable.

10.           Business Opportunities.  During the Employment Period, the Employee agrees to bring all business
opportunities to the Company relating to or otherwise associated with the
business or businesses then conducted by the Company or each affiliate thereof,
or business or businesses proposed to be conducted by the Company.

11.           Rights to Work Product. The
Employee agrees that all work performed by the Employee pursuant hereto shall
be the sole and exclusive property of the Company, in whatever stage of
development or completion.  With respect to any copyrightable works
prepared in whole or in part by the Employee pursuant to this Agreement,
including compilations of lists or data, the Employee agrees that all such
works will be prepared as “work-for-hire” within the meaning of the Copyright
Act of 1976, as amended (the “Act”), of which the Company shall be
considered the “author” within the meaning of the Act.  In the event (and
to the extent) that such works or any part or element thereof is found as a
matter of law not to be a “work-for-hire” within the meaning of the Act, the
Employee hereby assigns to the Company the sole and exclusive right, title and
interest in and to all such works, and all copies of any of them, without
further consideration, and agrees, to the extent reasonable under the
circumstances, to cooperate with the Company to register, and from time to time
to enforce, all patents, copyrights and other rights and protections relating
to such works in any and all countries.  To that end, the Employee agrees
to execute and deliver all documents requested by the Company in connection
therewith, and the Employee hereby irrevocably designates and appoints the
Company as the Employee’s agent and attorney-in-fact to act for and on behalf
of the Employee and in the Employee’s stead to execute, register and file any
such applications, and to do all other lawfully permitted acts to further the
registration, protection and issuance of patents, copyrights or similar
protections with the same legal force and effect as if executed by the
Employee.  The Company shall reimburse the Employee for all reasonable
costs and expenses incurred by the Employee pursuant to this Section 11.

12.           No Disparaging Statements. 
During the Term of employment and for one (1) year after termination of this
Agreement for any reason whatsoever, the Employee and the Company agree to
refrain from making any disparaging statements, either orally or in writing,
about the other party (and, on the part of the Employee, about any affiliate of
the Company, or any directors, officers, shareholders, employees, agents or
other representatives of the Company or any affiliate thereof).

 10
 

 

13.           Survival.  The provisions of Sections 8(b), 8(c), 8(d), 8(f), 9, 11, 12, 14, 15, 16
and 17 hereof shall survive the termination of this Agreement for the
applicable time period necessary to fully effectuate the provisions of such
sections.

14.           Compliance With Other Agreements.  The Employee and the Company each hereby represent and warrant to the
other that the execution and delivery of this Agreement and the performance of
such party’s obligations hereunder will not, with or without the giving of
notice and/or the passage of time, (i) violate any judgment, writ, injunction
or order of any court, arbitrator or governmental agency applicable to such
party, or (ii) conflict with, result in the breach of any provision of or the
termination of, or constitute a default under, any agreement to which such
party is a party or by which such party is or may be bound.  The parties
agree to indemnify and hold harmless each other from any liability, judgment or
claim incurred, entered or made against such party based on its reliance on the
representations and warranties made in this Section 14, including all
costs and expenses and attorney’s fees incurred or paid by such party in
connection with the foregoing.

15.           Injunctive Relief.  The Employee acknowledges and agrees that the Company and its affiliates
are engaged in a highly competitive business and that the protections of the
Company and each such affiliate set forth in Sections 9, 10 and 11 of this
Agreement are fair and reasonable and are of vital concern to the Company and
its affiliates.  Further, the Employee acknowledges and agrees that monetary
damages for any violation of such Sections will not adequately compensate the
Company and its affiliates with respect to any such violation.  Therefore,
in the event of a breach by the Employee of any of the terms and provisions
contained in Sections 9, 10 or 11 hereof, the Company shall be entitled to
institute legal proceedings to enforce the specific performance of this
Agreement by the Employee and to enjoin the Employee from any further
violations.  The remedies available to the Company pursuant to this Section 15
may be exercised cumulatively by the Company in conjunction with all other
rights and remedies provided by law.

16.           Arbitration Of Disputes.  If any dispute shall arise between the Employee and the Company in
connection with this Agreement, and such dispute cannot be resolved amicably by
the parties, the same shall be conclusively and finally resolved by binding
arbitration.  Any party hereto may commence an arbitration proceeding by
providing written notice to the other party requesting the arbitration of an
unresolved dispute.  Each such dispute, if any, shall be submitted to an
arbitrator acceptable to both parties.  If either the Employee or the
Company refuses or neglects to agree to appoint an arbitrator within thirty
(30) days after receipt of written notice from the other party requesting the
other party to do so, the American Arbitration Association may appoint such
arbitrator.  The arbitrator shall be experienced in the subject matter of
the dispute. Except as otherwise specifically set forth herein, the arbitrators
shall conduct the arbitration in accordance with the Commercial Arbitration
Rules of the American Arbitration Association.  The decision in writing of
the arbitrator, when filed with the parties hereto, shall be final and binding
on both parties.  Judgment may be entered upon the final decision of the
arbitrator in any court having jurisdiction.  Such arbitration shall 

 11
 

 

take place in Los Angeles, California.  In the event a decision to any dispute is rendered
by the arbitrator, the non-prevailing party shall be obligated to reimburse the
prevailing party for all reasonable attorney’s fees and related costs.

Notwithstanding anything to the contrary contained in
this Section 16, nothing shall prohibit the Company or Employee from pursuing
all legal and equitable remedies available to the Company or Employee in order
to enforce the provisions of Sections 9, 10 and 11 of this Agreement.  To
the extent that any court action is permitted consistent with or to enforce
this Agreement, the parties hereby consent to the jurisdiction of the federal
or state courts sitting in California.  Accordingly, with respect to any
such court action, all of the parties hereto (a) submit to the personal
jurisdiction of such courts, (b) consent to service of process and (c) waive
any other requirement (whether imposed by statute, rule of court, or otherwise)
with respect to personal jurisdiction or service of process.

17.           Amendment; Waiver; Discharge.  No provision of this Agreement may be amended, waived or discharged
unless such amendment, waiver or discharge is agreed to in writing and signed
by the Employee and a duly authorized representative of the Company.  No
waiver by either party hereto at any time of any breach by the other party
hereto of, or compliance with, any condition or provision of this Agreement to
be performed by such other party shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent
time.

18.           Validity.  The invalidity or unenforceability of any provision or provisions of this
Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

19.           Notices.  All notices, demands and other communications provided for in this
Agreement shall be in writing and shall be delivered by hand or sent via fax
transmission (with written fax confirmation) or mailed postage prepaid or by
registered, certified or express mail or reputable overnight courier service, charges
prepaid, and shall be deemed given when so delivered, if delivered by hand, or
upon receipt of reasonably adequate fax confirmation, if faxed, or, if mailed,
five (5) business days after mailing (or one (1) business day in the case of
express mail or overnight courier service), addressed as follows:

If
to the Employee:

Bruce
Berwager

335
N. Sierra Vista Road

Santa
Barbara, CA 93108

 12
 

 

If
to the Company:

Warren
E&P, Inc.

c/o
Warren Resources, Inc.

489
Fifth Avenue

32nd
Floor

New
York, NY 10016

Attention: 
Chief Executive Officer

(Fax): 
(212) 697-9466

(Tel.): 
(212) 697-9660

or to such other address or person as any party may
have furnished to the other in writing in accordance herewith, except that
notices of change of address shall be effective only upon receipt.

20.           Headings.  All
headings contained in this Agreement are for reference purposes only and shall
not in any way effect the meaning or interpretation of any provision or
provisions of this Agreement.

21.           Entire Agreement.  This Agreement sets forth the entire agreement of the parties hereto in
respect of the subject matter contained herein and supersedes all prior
agreements, promises, covenants, understandings, arrangements, communications,
representations or warranties, whether oral or written, by any party or
representative of any party hereto.

22.           Assignment and Transfer.  The Employee’s rights and obligations under this Agreement shall not be
transferable by assignment or otherwise, and any purported assignment, transfer
or delegation thereof shall be void.  This Agreement shall inure to the
benefit of, and be binding upon and enforceable by, any purchaser of
substantially all of the Company’s assets, any corporate successor to the
Company or any assignee thereof.

23.           Counterparts.  This Agreement may be executed in several counterparts, each of which
shall be deemed to be an original but all of which together will constitute one
and the same instrument.

24.           Governing Law.  The validity, interpretation, construction and performance of this Agreement,
including any associated arbitration, shall be governed by the laws of the
State of California without regard to its conflicts of law principles.

 13
 

 

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

	
  

  	
  WARREN E&P, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lloyd G.
  Davies

  	
   

  
	
   

  	
   

  	
  Name:  Lloyd G.
  Davies

  	
   

  
	
   

  	
   

  	
  Title:  Chief
  Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Bruce Berwager

  	
   

  
	
   

  	
   

  	
  Bruce Berwager

  	
   

  
					

 

 14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]