Document:

ex10_38.htm

    
      

    

    Exhibit
10.38

     

    AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

     

    This
Amended and Restated Employment Agreement (this “Agreement”), effective as of
September 1, 2007 (the “Amendment Date”) is between Rosetta Resources Inc., a
Delaware corporation (“Employer”), and Edward E. Seeman (“Executive”), and
supersedes and replaces that certain Employment Agreement between Employer and
Executive dated July 7, 2005 (the “Effective Date”).

    

    WHEREAS,
Executive has been employed as Vice President, Northern Division of Employer;
and

    

    WHEREAS,
the parties desire to amend and restate the Employment Agreement dated as of
July 7, 2005, all as herein provided;

    

    NOW,
THEREFORE, the parties hereto agree as follows:

    

    1.            
Definitions.  As
used in this Agreement, the following terms have the following
meanings:

    

    (a)           “Affiliate”
means, with respect to any entity, any other corporation, organization,
association, partnership, sole proprietorship or other type of entity, whether
incorporated or unincorporated, directly or indirectly controlling or controlled
by or under direct or indirect common control with such entity.

    

    (b)           “Annual
Period” means the time period of each year beginning on the first day of the
Employment Term and ending on the day before the anniversary of that
date.

    

    (c)           “Board”
means the Board of Directors of Employer.

    

    (d)           “Cause”
means a finding by the Board of acts or omissions, whether occurring during or
before the Employment Term, constituting, in the Board’s reasonable judgment,
(i) a breach of duty by Executive in the course of his employment involving
fraud, acts of dishonesty (other than inadvertent acts or omissions), disloyalty
to Employer or its Affiliates, or moral turpitude constituting criminal felony;
(ii) conduct by Executive that is materially detrimental to Employer, monetarily
or otherwise, or reflects unfavorably on Employer or Executive to such an extent
that Employer’s best interests reasonably require the termination of Executive’s
employment; (iii) acts or omissions of Executive materially in violation of his
obligations under this Agreement or at law; (iv) Executive’s failure to comply
with or enforce Employer’s policies concerning equal employment opportunity,
including engaging in sexually or otherwise harassing conduct; (v) Executive’s
repeated insubordination; (vi) Executive’s failure to comply with or enforce, in
any material respect, all other personnel policies of Employer or its
Affiliates; (vii) Executive’s failure to devote his full working time and best
efforts to the performance of his responsibilities to Employer or its
Affiliates; (viii) Executive’s conviction of, or entry of a plea agreement or
consent decree or similar arrangement with respect to a felony or any violation
of federal or state securities laws; or (ix) Executive’s failure to cooperate
with any investigation or inquiry authorized by the Board or conducted by a
governmental authority related to the business or Executive’s
conduct.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (e)           “Corporate
Change” means (i) the dissolution or liquidation of Employer; (ii) a
reorganization, merger or consolidation of Employer with one or more
corporations (other than a merger or consolidation effecting a reincorporation
of Employer in another state or any other merger or consolidation in which the
shareholders of the surviving corporation and their proportionate interests
therein immediately after the merger or consolidation are substantially
identical to the shareholders of Employer and their proportionate interests
therein immediately prior to the merger or consolidation) (collectively, a
“Corporate Change Merger”); (iii) the sale of all or substantially all of the
assets of Employer or an affiliate as defined in the Rosetta Resources Inc.
2005  Long-Term Incentive Plan; or (iv) the occurrence of a Change in
Control.  A “Change in Control” shall be deemed to have occurred if
(x) individuals who were directors of Employer immediately prior to a Control
Transaction shall cease, within two years of such Control Transaction to
constitute a majority of the Board of Directors of Employer (or of the Board of
Directors of any successor to Employer or to a company which has acquired all or
substantially all its assets) other than by reason of an increase in the size of
the membership of the applicable Board that is approved by at least a majority
of the individuals who were directors of Employer immediately prior to such
Control Transaction or (y) any entity, person or Group acquires shares of
Employer in a transaction or series of transactions that result in such entity,
person or Group directly or indirectly owning beneficially 50% or more of the
outstanding shares of Common Stock.  As used herein, “Control
Transaction” means (A) any tender offer for or acquisition of capital stock of
Employer pursuant to which any person, entity, or Group directly or indirectly
acquires beneficial ownership of 20% or more of the outstanding shares of Common
Stock; (B) any Corporate Change Merger of Employer; (C) any contested election
of directors of Employer; or (D) any combination of the foregoing, any one of
which results in a change in voting power sufficient to elect a majority of the
Board of Directors of Employer.  As used herein, “Group” means persons
who act “in concert” as described in Sections 13(d)(3) and/or 14(d)(2) of the
Securities Exchange Act of 1934, as amended.  Notwithstanding the
foregoing, “Corporate Change” shall not include the Acquisition, the Offering or
any public offering of equity of Employer pursuant to a registration that is
effective under the Securities Act of 1933, as amended.  As used
herein, “Acquisition” and “Offering” shall have the same meaning given to those
terms in the Rosetta Resources Inc. 2005
Long-Term Incentive Plan.

    

    (f)           “Competitor”
means any person or entity that is engaged in the acquisition, exploration,
development and production of oil and gas properties in competition with the
activities of Employer or an Affiliate.

    
      
         

      

      
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    (g)           “Confidential
Information” means, without limitation, all documents or information, in
whatever form or medium, concerning or evidencing sales; costs; pricing;
strategies; forecasts and long range plans; financial and tax information;
personnel information; business, marketing and operational projections, plans
and opportunities; customer, vendor, and supplier information; geological and
geophysical maps, data, interpretations, and analyses; project and prospect
locations and leads; well logs, interpretations, and analyses; and production
information; but excluding any such information that is or becomes generally
available to the public other than as a result of any breach of this Agreement
or other unauthorized disclosure by Executive.

    

    (h)           “Employment
Termination Date” means the effective date of termination of Executive’s
employment as established under Paragraph 6(g).

    

    (i)           “Good
Reason” means any of the following actions if taken without Executive’s prior
written consent: (i) any demotion of Executive as evidenced by a material
diminution in Executive’s responsibilities or duties; (ii) a material diminution
in Executive’s base compensation; (iii) any permanent relocation of Executive’s
place of business to a location 50 miles or more from the then-current location,
provided such relocation is a material change in geographic location at which
Executive must provide services for purposes of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”) and the regulations thereunder; or
(iv) any other action or inaction by Employer that constitutes a material breach
by Employer of its obligations under Paragraphs 12 or 20 of this
Agreement.  Neither a transfer of employment among Employer and any of
its Affiliates, a change in the co-employment relationship, nor a mere change in
job title constitutes “Good Reason.”

    

    (j)           “Inability
to Perform” means and shall be deemed to have occurred if Executive has been
determined under Employer’s long-term disability plan to be eligible for
long-term disability benefits.  In the absence of Executive’s
participation in, application for benefits under, or existence of such a plan,
“Inability to Perform” means a finding by the Board in its sole judgment that
Executive is, despite any reasonable accommodation required by law, unable to
perform the essential functions of his position because of an illness or injury
for (i) 60% or more of the normal working days during six consecutive
calendar months or (ii) 40% or more of the normal working days during twelve
consecutive calendar months.

    

    (k)           “Work
Product” means all ideas, works of authorship, inventions, and other creations,
whether or not patentable, copyrightable, or subject to other
intellectual-property protection, that are made, conceived, developed or worked
on in whole or in part by Executive while employed by Employer and/or any of its
Affiliates, that relate in any manner whatsoever to the business, existing or
proposed, of Employer and/or any of its Affiliates, or any other business or
research or development effort in which Employer and/or any of its Affiliates
engages during Executive’s employment.  Work Product includes any
material previously conceived, made, developed, or worked on during Executive’s
employment with Calpine and any Affiliate.

    
      
         

      

      
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    2.            
Employment.  Employer
agrees to employ Executive (directly or through an Affiliate), and Executive
agrees to be employed, for the period set forth in Paragraph
3.  Executive will be employed in the position and with the duties and
responsibilities set forth in Paragraph 4(a) and upon the other terms and
conditions set out in this Agreement.  Employer and Executive agree
that such employment may be through a co-employment relationship with a
professional employer organization.

    

    3.            
Term.  Executive’s
employment shall commence on the Effective Date and shall be for an initial term
of one Annual Period (the “Employment Term”), unless sooner terminated as
provided in this Agreement.  Subject to earlier termination as
provided in this Agreement, the Employment Term shall be automatically extended
for an additional Annual Period unless either Executive or Employer gives
written notice to the other six months or more prior to the end of the initial
term or, if the Agreement has been automatically extended beyond the initial
term, six months or more prior to the end of the additional Annual
Period.  In the event of such an automatic extension, each additional
Annual Period shall be part of the “Employment Term.”  Upon such
timely written notice, Executive’s employment and this Agreement will end upon
the expiration of the Employment Term.  The ending of Executive’s
employment as a result of the expiration of the Employment Term shall not
constitute a termination of employment by either party under this
Agreement.

    

    4.            
Position and
Duties.

    

    (a)           Executive
shall be employed as Vice President, Northern Region.  In such
capacity, Executive, subject to the ultimate control and direction of the Chief
Executive Officer of Employer, shall have such duties, functions,
responsibilities, and authority as are from time to time delegated to Executive
by the Chief Executive Officer of Employer; provided, however, that such duties,
functions, responsibilities, and authority are reasonable and customary for a
person serving in the same or similar capacity of an enterprise comparable to
Employer.

    

    (b)           During
the Employment Term, Executive shall devote his full time, skill, and attention
and his best efforts to the business and affairs of Employer to the extent
necessary to discharge fully, faithfully, and efficiently the duties and
responsibilities delegated and assigned to Executive in or pursuant to this
Agreement, except for usual, ordinary, and customary periods of vacation and
absence due to illness or other disability.

    

    (c)           In
connection with Executive’s employment under this Agreement, Executive shall be
based in Houston, Texas, or at any other place where the principal executive
offices of Employer may be located during the Employment
Term.  Executive also will engage in such travel as the performance of
Executive’s duties in the business of Employer may require.

    
      
         

      

      
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    (d)           All
services that Executive may render to Employer or any of its Affiliates in any
capacity during the Employment Term shall be deemed to be services required by
this Agreement and the consideration for such services is that provided for in
this Agreement.

    

    (e)           Executive
hereby acknowledges that he has read and is familiar with Employer’s policies,
including but not limited to those regarding business ethics and conduct and
securities trading, and will comply with all such policies, and any amendments
thereto, during the Employment Term.

    

    5.            
Compensation and
Related Matters.

    

    (a)           Base
Salary.  During each Annual Period of the Employment Term,
Employer shall pay to Executive for his services under this Agreement an annual
base salary (“Base Salary”).  The Base Salary effective as of
Amendment Date shall be $200,000.  The Base Salary is subject to
adjustments at the discretion of the Board, but in no event shall Employer pay
Executive a Base Salary less than that set forth above without the consent of
Executive.  The Base Salary shall be payable in installments in
accordance with the general payroll practices of Employer, or as otherwise
mutually agreed upon.

    

    (b)           Annual
Incentives.  During the Employment Term, Executive will
participate in any incentive compensation plan (ICP) applicable to Executive’s
position, as may be adopted by Employer from time to time and in accordance with
the terms of such plan(s).  Executive’s target award opportunity for
the year ending on December 31, 2007, will be based upon 40% of Executive’s Base
Salary paid to Executive by Employer prorated for the number of months in such
period as compared to a full year and shall be subject to such other terms,
conditions and restrictions as may be established by the Board or the
compensation committee.

    

    (c)           Long-Term
Incentives.  During the Employment Term, Executive will
participate in Employer’s long-term incentive (LTI) plan applicable to
Executive’s position, in accordance with the terms of such
plan(s).  Except as provided in Paragraph 5(d), Executive will
participate in such LTI plan award opportunities as may be determined by the
Board or the compensation committee of the Board, as applicable.

    

    (d)           Special Equity
Grants.  On the Effective Date, Executive will be granted the
following awards pursuant to the terms of the LTI plan:

    

    (i)           A
nonqualified stock option to purchase 32,000 shares of Employer’s common stock,
which option will have a ten year term and vest in accordance with the following
schedule: (A) 25% of such shares (if a fractional number, then the next lower
whole number) will vest and become purchasable on the Effective Date; (B) an
additional 25% of such shares (if a fractional number, then the next lower whole
number) will vest and become purchasable on the first anniversary of the
Effective Date, provided Executive is in the continuous service of Employer or
an Affiliate until such vesting date; (C) an additional 25% of such shares (if a
fractional number, then the next lower whole number) will vest and become
purchasable on the second anniversary of the Effective Date, provided Executive
is in the continuous service of Employer or an Affiliate until such vesting
date; and (D) the remaining shares will vest and become purchasable on the third
anniversary of the Effective Date, provided Executive is in the continuous
service of Employer or an Affiliate until such vesting date.

    
      
         

      

      
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    (ii)           6,000
shares of regular restricted common stock in Employer, which will vest as
follows:  (A) 25% of such shares (if a fractional number, then the
next lower whole number) will vest on the first anniversary of the Effective
Date, provided Executive is in the continuous service of Employer or an
Affiliate until such vesting date; (B) an additional 25% of such shares (if a
fractional number, then the next lower whole number) will vest on the second
anniversary of the Effective Date, provided Executive is in the continuous
service of Employer or an Affiliate until such vesting date; and (C) the
remaining shares will vest on the third anniversary of the Effective Date,
provided Executive is in the continuous service of Employer or an Affiliate
until such vesting date.

    

    (iii)           24,000
shares of bonus restricted common stock in Employer, which will vest in full on
the later to occur of (A) the day following the effective date of the Employer’s
initial registration statement under the Securities Act of 1933, as amended,
with respect to the Employer’s common stock or (B) the day following the
expiration of any lock up or other restrictive agreement entered into by
Executive with any investment banking firm in connection with
such  initial registration, provided Executive is in the continuous
service of Employer or an Affiliate until and on such vesting date.

     

    
      The
special equity grants provided for in this Paragraph 5(d) shall be subject to
the terms of the LTI plan and such other terms, conditions and restrictions as
may be established by the Board or the LTI plan committee.

       

    

    
      
        
        

      

      
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    (e)           Employee
Benefits.  During the Employment Term, Executive shall be
entitled to participate in all employee benefit plans, programs, and
arrangements that are generally made available by Employer to its similarly
situated employees, including without limitation Employer’s life insurance,
long-term disability, and health plans.  Executive agrees to cooperate
and participate in any medical or physical examinations as may be required by
any insurance company in connection with the applications for such life and/or
disability insurance policies.

    

    (f)           Expenses.  Executive
shall be entitled to receive reimbursement for all reasonable expenses incurred
by Executive during the Employment Term in performing his duties and
responsibilities under this Agreement, consistent with Employer’s policies or
practices for reimbursement of expenses incurred by other senior executives of
Employer (“Business Expenses”).  Notwithstanding the foregoing, (i)
the amount of expenses eligible for reimbursement during a calendar year may not
affect the expenses eligible for reimbursement in any other calendar year, (ii)
the reimbursement must be made on or before the last day of the calendar year
following the calendar year in which the expense was incurred and (iii) the
right to reimbursement shall not be subject to liquidation or exchange for any
other benefit.

    

    (g)           Vacations.  During
each Annual Period of the Employment Term, Executive shall be eligible for four
weeks’ paid vacation, as well as sick pay and other paid and unpaid time off in
accordance with the policies and practices of Employer.  Executive
agrees to use his vacation and other paid time off at such times that are (i)
consistent with the proper performance of his duties and responsibilities and
(ii) mutually convenient for Employer and Executive.

    

    (h)           Fringe
Benefits.  During the Employment Term, Executive shall be
entitled to the perquisites and other fringe benefits that are made available by
Employer to its senior executives generally and to such perquisites and fringe
benefits that are made available by Employer to Executive in particular, subject
to any applicable terms and conditions of any specific perquisite or other
fringe benefit.

    

    6.           Termination of Employment
and Agreement.

    

    (a)           Death.  Executive’s
employment and this Agreement shall terminate automatically upon his
death.

    

    (b)           Inability to
Perform.  Employer may terminate this Agreement or this
Agreement and Executive’s employment for Inability to Perform.

    

    (c)           Termination by Employer for
Cause.  Employer may terminate Executive’s employment and this
Agreement for Cause by providing Executive with a Notice of Termination as set
out in Paragraph 6(f).  Before terminating Executive’s employment and
this Agreement for Cause, Employer must provide Executive with written notice of
its intent to do so, which notice must specify the particular circumstances or
events that Employer contends gives rise to the existence of Cause; provided,
however, that if Employer intends to exercise its right to terminate Executive’s
employment and this Agreement in whole or part under provisions (v) or (vi) of
the definition of Cause, Employer must first provide Executive with a reasonable
period of time to correct those circumstances or events Employer contends give
rise to the existence of Cause under such provision(s) (the “Correction
Period”), but only to the extent Employer determines that they may reasonably be
corrected.  A 30-day Correction Period shall be presumptively
reasonable.  Executive will be given the opportunity within 30
calendar days of his receipt of Employer’s written notice of its intent to
terminate Executive’s employment and this Agreement for Cause to defend himself
with respect to the circumstances or events specified in such notice and in a
manner and under such procedures as the Chief Executive Officer of Employer may
establish.  Nothing in this Paragraph 6(c) precludes informal
discussions between Executive and Employer regarding such circumstances or
events.

    
      
         

      

      
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    (d)         
Termination by
Executive for Good Reason.  Executive may terminate his
employment and this Agreement for Good Reason.  To exercise his right
to terminate for Good Reason, Executive must provide written notice to Employer
of his belief that Good Reason exists within 60 days of the initial existence of
the Good Reason condition, and that notice shall describe the condition(s)
believed to constitute Good Reason.  Employer shall have 30 days to
remedy the Good Reason condition(s).  If not remedied within that
30-day period, Executive may submit a Notice of Termination; provided, however,
that the Notice of Termination invoking Executive’s right to terminate his
employment for Good Reason must be given no later than 100 days after the date
the Good Reason condition first arose; otherwise, Executive is deemed to have
accepted the condition(s), or the Employer’s correction of such condition(s),
that may have given rise to the existence of Good Reason.

    

    (e)     
    Termination by Either Party
Without Cause or Without Good Reason.  Either Employer or
Executive may terminate Executive’s employment and this Agreement without Cause
or Good Reason upon at least 60 days’ prior written notice to the other
party.

    

    (f)      
   Notice of
Termination.  Any termination of Executive’s employment or,
pursuant to Paragraph 6(b), a termination of this Agreement alone, by Employer
or by Executive (other than a termination pursuant to Paragraph 6(a)) shall be
communicated by a Notice of Termination.  A “Notice of Termination” is
a written notice that must (i) indicate the specific termination provision in
this Agreement relied upon; (ii) in the case of a termination for Inability to
Perform, Cause, or Good Reason, set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of Executive’s
employment under the provision invoked; and (iii) if the termination is by
Executive under Paragraph 6(e), or by Employer for any reason, specify the
Employment Termination Date or, pursuant to Paragraph 6(b), the date of
termination of this Agreement.  The failure by Employer or Executive
to set forth in the Notice of Termination any fact or circumstance that
contributes to a showing of Cause or Good Reason shall not waive any right of
Employer or Executive or preclude either of them from asserting such fact or
circumstance in enforcing or defending their rights.

    
      
         

      

      
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    (g)      
   Employment Termination
Date.  The Employment Termination Date, whether occurring
before or after a Corporate Change, shall be as follows: (i) if Executive’s
employment is terminated by his death, the date of his death; (ii) if
Executive’s employment is terminated by Employer because of his Inability to
Perform or for Cause, the date specified in the Notice of Termination, which
date shall be no earlier than the date such notice is given; (iii) if
Executive’s employment is terminated by Executive for Good Reason, the date on
which the Notice of Termination is given; or (iv) if the termination is under
Paragraph 6(e), the date specified in the Notice of Termination, which date
shall be no earlier than 60 days after the date such notice is
given.

    

    (h)          Deemed
Resignation.  In the event of termination of Executive’s
employment or the expiration of the Employment Term, Executive agrees that if at
such time he is a member of the Board or is an officer of Employer or a director
or officer of any of its Affiliates, he shall be deemed to have resigned from
such position(s) effective on the Employment Termination Date or the expiration
of the Employment Term, unless the Board notifies Executive prior to the
Employment Termination Date or the expiration of the Employment Term of the
Board’s desire that Executive remain a member of the Board, in which case
Executive shall not be deemed to have resigned his position as a member of the
Board merely by virtue of the termination of his employment or the expiration of
the Employment Term.  Executive agrees to execute and deliver any
documents evidencing his resignation from such positions that Employer may
reasonably request.

    

    (i)           Investigation;
Suspension.  Employer may suspend Executive with pay pending an
investigation authorized by the Board or a governmental authority or a
determination by the Board whether Executive has engaged in acts or omissions
constituting Cause, and such paid suspension shall not constitute a termination
of this Agreement or Executive’s employment, or Good
Reason.  Executive agrees to cooperate with Employer in connection
with any such investigation.

    

    7.           Compensation Upon
Termination of Employment or Expiration of Employment Term.

    

    (a)       
   Death.  If
Executive’s employment is terminated by reason of Executive’s death, Employer
shall pay to such person as Executive shall designate in a written notice to
Employer (or, if no such person is designated, to his estate) any unpaid portion
of Executive’s Base Salary through the Employment Termination Date (the
“Compensation Payment”), any earned but unused vacation (the “Vacation
Payment”), and any unreimbursed Business Expenses, at the time and in the manner
required by applicable law.

    
      
         

      

      
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    (b)           Inability to
Perform.  If Executive’s employment and this Agreement is
terminated by reason of Executive’s Inability to Perform, Employer shall pay to
Executive the Compensation Payment, the Vacation Payment, and any unreimbursed
Business Expenses at the time and in the manner required by applicable
law.

    

    (c)           Termination by Executive
Without Good Reason.  If Executive’s employment is terminated
by Executive pursuant to and in compliance with Paragraph 6(e), Employer shall
pay to Executive the Compensation Payment, the Vacation Payment, and any
unreimbursed Business Expenses, at the time and in the manner required by
applicable law.

    

    (d)           Termination for
Cause.  If Executive’s employment is terminated by Employer for
Cause, Employer shall pay to Executive the Compensation Payment, the Vacation
Payment, and any unreimbursed Business Expenses, at the time and in the manner
required by applicable law.

    

    (e)           Termination Without Cause or
With Good Reason; Expiration of Employment Term.

    

    (i)           If
Executive’s employment is terminated by Employer for any reason other than
death, Inability to Perform, or Cause, or is terminated by Executive for Good
Reason, during the Employment Term, or if either Employer or Executive gives
timely notice pursuant to Paragraph 3 and Executive’s employment and this
Agreement therefore ends upon the expiration of the Employment Term, Employer
shall pay to Executive the Compensation Payment, the Vacation Payment, and any
unreimbursed Business Expenses, at the time and in the manner required by
applicable law.

    

    (ii)           In
addition, if Executive’s employment is terminated by Employer for any reason
other than death, Inability to Perform, or Cause, or is terminated by Executive
for Good Reason, during the Employment Term, or if Employer gives timely notice
pursuant to Paragraph 3 and Executive’s employment and this Agreement therefore
ends upon the expiration of the Employment Term, Employer shall pay or provide
to Executive in lieu of any other severance or separation benefits, at the time
and in the manner provided in Paragraph 7(e)(iii), the following if, within 45
days after the Employment Termination Date or the expiration of the Employment
Term, as applicable, Executive has signed a general release agreement in a form
acceptable to Employer and Executive does not revoke such
release:

    
      
         

      

      
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    (A)           Executive’s
Base Salary in effect on the Employment Termination Date or the expiration of
the Employment Term, as applicable;

    

    (B)           ICP
award at the target level for one year, based on the ICP award for the
performance period in effect on the Employment Termination Date or the
expiration of the Employment Term, as applicable;

    

    (C)           Full
and immediate vesting of all Employer stock options and restricted stock awards
held by Executive as of the Employment Termination Date or the expiration of the
Employment Term, as applicable;

    

    (D)           With
respect to Employer stock options that are vested prior to the Employment
Termination Date or the expiration of the Employment Term, as applicable,
Executive will have twelve months after the Employment Termination Date or the
expiration of the Employment Term, as applicable, to exercise such stock
options.

    

    Notwithstanding
the foregoing, Employer’s obligation under this Paragraph 7(e)(ii) is limited as
follows:

    

    (X)           If,
in the reasonable judgment of Employer, Executive engages in any conduct that
materially violates
Paragraph 8 or engages in any of the Restricted Activities described in
Paragraph 9, Employer’s obligation to make payments to Executive under this
Paragraph 7(e)(ii), if any such obligation remains, shall end as of the date
Employer so notifies Executive in writing; and

    

    (Y)           If
Executive is found guilty or enters into a plea agreement, consent decree, or
similar arrangement with respect to any felony criminal offense or any violation
of federal or state securities laws, or has any civil enforcement action brought
against him by any regulatory agency, for actions or omissions related to his
employment with Employer or any of its Affiliates, or if Employer reasonably
believes that Executive has committed any act or omission that would have
entitled Employer to terminate his employment for Cause, whether such act or
omission was committed during his employment with Employer or any of its
Affiliates or thereafter, (1) Employer’s obligation to make payments to
Executive under this Paragraph 7(e)(ii) shall immediately end, and (2) Executive
shall repay to Employer any amounts paid to him pursuant to this Paragraph
7(e)(ii) within 30 days after a written request to do so by
Employer.

    
      
         

      

      
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    (iii)           The
amounts provided for under Paragraphs 7(e)(ii)(A) and 7(e)(ii)(B) shall be paid
as follows:

    

    (A)           An
amount equal to (1) 50% of the amount provided for under Paragraph 7(e)(ii)(A)
plus (2) the sum (to the extent that such sum exceeds zero) of the amounts
provided for under Paragraphs 7(e)(ii)(A) and 7(e)(ii)(B) less the payment under
Paragraph 7(e)(iii)(A)(1) less the Section 409A Exempt Amount, shall be paid in
a single lump sum no later than 60 days after the Employment Termination Date or
the expiration of the Employment Term, as applicable, provided that the
Employment Termination Date or the expiration of the Employment Term, as
applicable, constitutes a separation from service for purposes of Code Section
409A and the regulations thereunder.  For purposes of this Agreement,
the “Section 409A Exempt Amount” is two times the lesser of (x) Executive’s
annualized compensation based upon the annual rate of pay for services provided
to Employer for the calendar year preceding the calendar year in which Executive
has a separation from service (as defined in Code Section 409A and the
regulations thereunder) with Employer (adjusted for any increase during that
year that was expected to continue indefinitely if the service provider had not
separated from service) or (y) the maximum amount that may be taken into account
under a qualified plan pursuant to Section 401(a)(17) of the Code for the year
in which Executive has a separation from service.

    

    (B)           The
Section 409A Exempt Amount or, if less, the excess of the amount provided for
under Paragraphs 7(e)(ii)(A) and 7(e)(ii)(B) over the amount paid under
Paragraph 7(e)(iii)(A), shall be paid in equal monthly installments over a
period of 6 months commencing on the first day of the sixth month following the
Employment Termination Date or the expiration of the Employment Term, as
applicable, provided that the Employment Termination Date or the expiration of
the Employment Term, as applicable, constitutes a separation from service for
purposes of Code Section 409A and the regulations thereunder.

     

    
      
        
        

      

      
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    (C)           Notwithstanding
the foregoing, if Executive separates from service during 2007, any amounts that
would have been paid during 2007 under the terms of this Agreement as in effect
on the day before the Amendment Date shall be paid at the same time and in the
same manner as provided for under this Agreement as in effect on the day before
the Amendment Date and the amount provided for under Paragraph 7(e)(iii)(A) less
any payments made during 2007 shall be paid between January 1, 2008 and January
10, 2008.

    

    (f)           Termination or Expiration of
Employment Term Following Corporate Change.

    

    (i)           If,
within the two-year period following a Corporate Change, Executive’s employment
with Employer or an Affiliate or successor of Employer is terminated by Employer
or an Affiliate for any reason other than death, Inability to Perform, or Cause,
is terminated by Executive for Good Reason, or if Employer or an Affiliate or
successor of Employer gives timely notice pursuant to Paragraph 3 and
Executive’s employment and this Agreement therefore ends upon the expiration of
the Employment Term, Executive will be paid the Compensation Payment, the
Vacation Payment and any unreimbursed Business Expenses, at the time and in the
manner required by applicable law.  In addition, if, within 45 days
after the Employment Termination Date or the expiration of the Employment Term,
as applicable, Executive has signed a general release agreement in a form
acceptable to Employer and Executive does not revoke such release, in lieu of
any other payments under Paragraph 7(e)(ii), (A) Executive shall be paid a
lump-sum amount equivalent to the sum of (x) 1 times the Executive’s
then-current Base Salary, and (y) 1 times the target ICP award for the
performance period in which the Corporate Change occurs, and (B) any unvested
Employer stock options and restricted stock will be immediately vested and
Executive will have twelve months following the Employment Termination Date or
expiration of the Employment Term, as applicable, to exercise the Employer stock
options, provided that in no event may such stock options be exercised after the
earlier of the latest date upon which the options could have expired by their
original terms or the 10th
anniversary of the original date of grant of the options.

    

    (ii)           The
additional payments provided for in Paragraph 7(f)(i)(A) shall be paid in a
single lump sum payment no later than 60 days after the Employment Termination
Date or the expiration of the Employment Term, as applicable; provided, however,
that if the Employment Termination Date or expiration of the Employment Term, as
applicable, occurs during 2007, such single lump sum payment shall not be paid
during 2007 but shall be paid between January 1, 2008 and January 10,
2008.

    
      
         

      

      
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    (iii)           In
the event that it is determined that any payment (other than the Gross-Up
payment provided for in this Paragraph 7(f)(iii)) or distribution by
Employer or any of its Affiliates to or for the benefit of Executive, whether
paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise pursuant to or by reason of any other agreement, policy,
plan, program or arrangement, including without limitation any stock option or
similar right, or the lapse or termination of any restriction on or the vesting
or exercisability of any of the foregoing (a “Payment”), would be subject to the
excise tax imposed by Section 4999 of the Code (or any successor provision
thereto) by reason of being considered “contingent on a change in ownership or
control” of Employer, within the meaning of Section 280G of the Code or any
successor provision thereto (such tax being hereafter referred to as the “Excise
Tax”), then Executive will be entitled to receive an additional payment or
payments (a “Gross-Up Payment”).  The Gross-Up Payment will be in an
amount such that, after payment by Executive of all taxes, including any Excise
Tax imposed upon the Gross-Up Payment, Executive retains an amount of the
Gross-Up Payment equal to the Excise Tax imposed upon the
Payment.  For purposes of determining the amount of the Gross-Up
Payment, Executive will be considered to pay (x) federal income taxes at
the highest rate in effect in the year in which the Gross-Up Payment will be
made and (y) state and local income taxes at the highest rate in effect in
the state or locality in which the Gross-Up Payment would be subject to state or
local tax, net of the maximum reduction in federal income tax that could be
obtained from deduction of such state and local taxes.  The
determination of whether an Excise Tax would be imposed, the amount of such
Excise Tax, and the calculation of the amounts referred to in this
Paragraph 7(f)(iii) will be made at the expense of Employer by Employer’s
regular independent accounting firm (the “Accounting Firm”), which shall provide
detailed supporting calculations.  Any determination by the Accounting
Firm will be binding upon Employer and Executive.  The Gross-Up
Payment will be paid to Executive as soon as administratively practicable
following, but no later than the end of the calendar year in which falls the
date on which Executive remits the related taxes.

    

    (g)           Health
Insurance.  In addition, if Executive’s employment with
Employer or an Affiliate or successor of Employer is terminated or ends under
the circumstances set forth in Paragraph 7(f), Executive will receive, in
addition to any other payments due under this Agreement, the following benefit:
if, at the time of the Employment Termination Date or the expiration of the
Employment Term, as applicable, Executive participates in one or more health
plans offered or made available by Employer and Executive is eligible for and
elects to receive continued coverage under such plans in accordance with the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) or any
successor law, Employer will reimburse Executive during 12-month period
following the Employment Termination Date or the expiration of the Employment
Term, as applicable, for the difference between the total amount of the monthly
COBRA premiums for the same coverage as in effect on the Employment Termination
Date or the expiration of the Employment Term, as applicable, that are actually
paid by Executive for such continued health plan benefits and the total monthly
amount of the same premiums charged to active senior executives of Employer for
health insurance coverage.  Such reimbursement shall be made within
the 90-day period following Executive’s payment of each monthly COBRA
premium.  Provided, however, that Employer’s reimbursement obligation
under this Paragraph 7(g) shall terminate upon the earlier of (i) the expiration
of the time period described above or (ii) the date Executive becomes eligible
for health insurance coverage under a subsequent employer’s plan without being
subject to any preexisting-condition exclusion under that plan, which occurrence
Executive shall promptly report to Employer.

    
      
         

      

      
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    (h)           Exclusive Compensation and
Benefits.  The compensation and benefits described in this
Paragraph 7, along with the associated terms for payment, constitute all of
Employer’s obligations to Executive with respect to the termination of
Executive’s employment with Employer and/or its Affiliates. However, nothing in
this Agreement is intended to limit any earned, vested benefits (other than any
entitlement to severance or separation pay, if any) that Executive may have
under the applicable provisions of any benefit plan of Employer in which
Executive is participating at the time of the termination of
employment.

    

    (i)           Compliance
with Code Section 409A.  If
Employer determines that Executive is a “specified employee” on the date of
Executive’s “separation from service,” as those terms are defined in and
pursuant to Code Section 409A and related Treasury guidance thereunder, then,
notwithstanding any provision of this Agreement to the contrary, no payment of
compensation under this Agreement shall be made to Executive during the period
lasting six months from the date of Executive’s separation unless Employer
determines that there is no reasonable basis for believing that making such
payment would cause Executive to suffer adverse tax consequences pursuant to
Code Section 409A.  If any payment to Executive is delayed pursuant to
the foregoing sentence, such payment instead shall be paid, without interest, on
the first business day following the expiration of the six-month period referred
to in the prior sentence.

    
      
         

      

      
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    (j)           Payment after Executive’s
Death.  In the event of Executive’s death after he becomes
entitled to a payment or payments pursuant to this Paragraph 7, any remaining
unpaid amounts shall be paid, at the time and in
the manner such payments otherwise would have been paid to Executive, to such person as Executive
shall designate in a written notice to Employer (or, if no such person is
designated, to his estate).

    

    (k)           Offset.  The
Executive agrees that Employer may set off against, and Executive authorizes
Employer to deduct from, any payments due to the Executive, or to his heirs,
legal representatives, or successors, as a result of the termination of the
Executive’s employment any amounts which may be due and owing to Employer or any
of its Affiliates by the Executive, whether arising under this Agreement or
otherwise; provided, however, that any such set off and deduction shall be made
in a manner that complies with Section 409A of the Code and the regulations
thereunder to the extent applicable.

    

    8.            
Confidential
Information.

    

    (a)           Executive
acknowledges and agrees that (i) Employer and its Affiliates are engaged in a
highly competitive business; (ii) Employer and its Affiliates have expended
considerable time and resources to develop goodwill with their customers,
vendors, and others, and to create, protect, and exploit Confidential
Information; (iii) Employer must continue to prevent the dilution of its and its
Affiliates’ goodwill and unauthorized use or disclosure of its Confidential
Information to avoid irreparable harm to its legitimate business interests; (iv)
in the oil and gas acquisition, exploration, development and production
business, his participation in or direction of Employer’s or its Affiliates’
day-to-day operations and strategic planning are an integral part of Employer’s
continued success and goodwill; (v) given his position and responsibilities, he
necessarily will be creating Confidential Information that belongs to Employer
and enhances Employer’s goodwill, and in carrying out his responsibilities he in
turn will be relying on Employer’s goodwill and the disclosure by Employer to
him of Confidential Information; (vi) he will have access to Confidential
Information that could be used by any Competitor of Employer in a manner that
would irreparably harm Employer’s competitive position in the marketplace and
dilute its goodwill; and (vii) he necessarily would use or disclose Confidential
Information if he were to engage in competition with Employer.

    

    (b)           Employer
acknowledges and agrees that Executive must have and continue to have throughout
his employment the benefits and use of its and its Affiliates’ goodwill and
Confidential Information in order to properly carry out his
responsibilities.  Employer accordingly promises upon execution and
delivery of this Agreement to provide Executive immediate and continuing access
to Confidential Information and to authorize him to engage in activities that
will create new and additional Confidential Information.

    
      
         

      

      
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    (c)           Employer
and Executive thus acknowledge and agree that during Executive’s employment with
Employer, and upon execution and delivery of this Agreement, he (i) has
received, will receive, and will continue to receive Confidential Information
that is unique, proprietary, and valuable to Employer and/or its Affiliates;
(ii) has created and will continue to create Confidential Information that is
unique, proprietary, and valuable to Employer and/or its Affiliates; and (iii)
has benefited and will continue to benefit, including without limitation by way
of increased earnings and earning capacity, from the goodwill Employer and its
Affiliates have generated and from the Confidential Information.

    

    (d)           Accordingly,
Executive acknowledges and agrees that at all times during his employment by
Employer and/or any of its Affiliates and thereafter:

    

    (i)           all
Confidential Information shall remain and be the sole and exclusive property of
Employer and/or its Affiliates;

    

    (ii)           he
will protect and safeguard all Confidential Information;

    

    (iii)           he
will hold all Confidential Information in strictest confidence and not, directly
or indirectly, disclose or divulge any Confidential Information to any person
other than an officer, director, or employee of, or legal counsel for, Employer
or its Affiliates, to the extent necessary for the proper performance of his
responsibilities unless authorized to do so by Employer or compelled to do so by
law or valid legal process;

    

    (iv)           if
he believes he is compelled by law or valid legal process to disclose or divulge
any Confidential Information, he will notify Employer in writing sufficiently in
advance of any such disclosure to allow Employer the opportunity to defend,
limit, or otherwise protect its interests against such disclosure;

    

    (v)           at
the end of his employment with Employer for any reason or at the request of
Employer at any time, he will return to Employer all Confidential Information
and all copies thereof, in whatever tangible form or medium, including
electronic; and

    

    (vi)           absent
the promises and representations of Executive in this Paragraph 8 and in
Paragraph 9, Employer would require him immediately to return any tangible
Confidential Information in his possession, would not provide Executive with new
and additional Confidential Information, would not authorize Executive to engage
in activities that will create new and additional Confidential Information, and
would not enter or have entered into this Agreement.

    
      
         

      

      
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    9.           Nondisparagement and
Nonsolicitation Obligations.  In consideration of Employer’s
promises to provide Executive with Confidential Information and to authorize him
to engage in activities that will create new and additional Confidential
Information upon execution and delivery of this Agreement, and the other
promises and undertakings of Employer in this Agreement, Executive agrees that,
while he is employed by Employer and/or any of its Affiliates and for a 2-year
period following the end of that employment for any reason, he shall not engage
in any of the following activities (the “Restricted Activities”):

    

    (a)          He
will not directly or indirectly disparage Employer or its Affiliates, any
products, services, or operations of Employer or its Affiliates, or any of the
former, current, or future officers, directors, or employees of Employer or its
Affiliates;

    

    (b)          He
will not, whether on his own behalf or on behalf of any other individual,
partnership, firm, corporation or business organization, either directly or
indirectly solicit, induce, persuade, or entice, or endeavor to solicit, induce,
persuade, or entice, any person who is then employed by or otherwise engaged to
perform services for Employer or its Affiliates to leave that employment or
cease performing those services; and

    

    (c)          He
will not, whether on his own behalf or on behalf of any other individual,
partnership, firm, corporation or business organization, either directly or
indirectly solicit, induce, persuade, or entice, or endeavor to solicit, induce,
persuade, or entice, any person who is then a customer, supplier, or vendor of
Employer or any of its Affiliates to cease being a customer, supplier, or vendor
of Employer or any of its Affiliates or to divert all or any part of such
person’s or entity’s business from Employer or any of its
Affiliates.

    

    Executive
acknowledges and agrees that the restrictions contained in this Paragraph 9 are
ancillary to an otherwise enforceable agreement, including without limitation
the mutual promises and undertakings set forth in Paragraph 8; that Employer’s
promises and undertakings set forth in Paragraph 8 and Executive’s position and
responsibilities with Employer give rise to Employer’s interest in restricting
Executive’s post-employment activities; that such restrictions are designed to
enforce Executive’s promises and undertakings set forth in this Paragraph 9 and
his common-law obligations and duties owed to Employer and its Affiliates; that
the restrictions are reasonable and necessary, are valid and enforceable under
Texas law, and do not impose a greater restraint than necessary to protect
Employer’s goodwill, Confidential Information, and other legitimate business
interests; that he will immediately notify Employer in writing should he believe
or be advised that the restrictions are not, or likely are not, valid or
enforceable under Texas law or the law of any other state that he contends or is
advised is applicable; that the mutual promises and undertakings of Employer and
Executive under Paragraphs 8 and 9 are not contingent on the duration of
Executive’s employment with Employer; and that absent the promises and
representations made by Executive in this Paragraph 9 and Paragraph 8, Employer
would require him to return any Confidential Information in his possession,
would not provide Executive with new and additional Confidential Information,
would not authorize Executive to engage in activities that will create new and
additional Confidential Information, and would not enter or have entered into
this Agreement; and that his obligations under Paragraphs 8 and 9 supplement,
rather than supplant, his common-law duties of confidentiality and loyalty owed
to Employer.

    
      
         

      

      
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    10.           Intellectual
Property.

    

    (a)           In
consideration of Employer’s promises and undertakings in this Agreement,
Executive agrees that all Work Product will be disclosed promptly by Executive
to Employer, shall be the sole and exclusive property of Employer, and is hereby
assigned to Employer, regardless of whether (i) such Work Product was conceived,
made, developed or worked on during regular hours of his employment or his time
away from his employment, (ii) the Work Product was made at the suggestion of
Employer; or (iii) the Work Product was reduced to drawing, written description,
documentation, models or other tangible form.  Without limiting the
foregoing, Executive acknowledges that all original works of authorship that are
made by Executive, solely or jointly with others, within the scope of his
employment and that are protectable by copyright are “works made for hire,” as
that term is defined in the United States Copyright Act (17 U.S.C., Section
101), and are therefore owned by Employer from the time of
creation.

    

    (b)           Executive
agrees to assign, transfer, and set over, and Executive does hereby assign,
transfer, and set over to Employer, all of his right, title and interest in and
to all Work Product, without the necessity of any further compensation, and
agrees that Employer is entitled to obtain and hold in its own name all patents,
copyrights, and other rights in respect of all Work
Product.  Executive agrees to (i) cooperate with Employer during and
after his employment with Employer in obtaining patents or copyrights or other
intellectual-property protection for all Work Product; (ii) execute,
acknowledge, seal, and deliver all documents tendered by Employer to evidence
its ownership thereof throughout the world; and (iii) cooperate with Employer in
obtaining, defending, and enforcing its rights therein.

    

    (c)           Executive
represents that there are no other contracts to assign inventions or other
intellectual property that are now in existence between Executive and any other
person or entity.  Executive further represents that he has no other
employment or undertakings that might restrict or impair his performance of this
Agreement.  Executive will not in connection with his employment by
Employer, use or disclose to Employer any confidential, trade secret, or other
proprietary information of any previous employer or other person that Executive
is not lawfully entitled to disclose.

    
      
         

      

      
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    11.           Reformation.  If
the provisions of Paragraphs 8, 9, or 10 are ever deemed by a court to exceed
the limitations permitted by applicable law, Executive and Employer agree that
such provisions shall be, and are, automatically reformed to the maximum
limitations permitted by such law.

    

    12.           Indemnification and
Insurance.  Employer shall indemnify Executive to the fullest
extent permitted by the laws of the State of Delaware.  In addition,
Employer shall indemnify Executive in accordance with Employer’s certificate of
incorporation and bylaws and pursuant to Employer’s standard indemnification
agreement, and shall provide him with coverage under any directors’ and
officers’ liability insurance policies, in each case on terms not less favorable
than those provided to any of its other directors and officers as in effect from
time to time.

    

    13.           Assistance in
Litigation.  During the Employment Term and thereafter for the
lifetime of Executive, Executive shall, upon reasonable notice, furnish such
information and proper assistance to Employer or any of its Affiliates as may
reasonably be required by Employer in connection with any litigation,
investigations, arbitrations, and/or any other fact-finding or adjudicative
proceedings involving Employer or any of its Affiliates.  This
obligation shall include, without limitation, to promptly upon request meet with
counsel for Employer or any of its Affiliates and provide truthful testimony at
the request of Employer or as otherwise required by law or valid legal
process.   Following the Employment Term, Employer shall
reimburse Executive for all reasonable out-of-pocket expenses incurred by
Executive and approved in advance by Employer in rendering such assistance (such
as travel, parking, and meals but not attorney’s fees), but shall have no
obligation to compensate Executive for his time in providing information and
assistance in accordance with this Paragraph 13, provided that such
reimbursement shall be made on or before the last day of the calendar year
following the calendar year in which the expense is incurred.

    

    14.           No Obligation to
Pay.  With regard to any payment due to Executive under this
Agreement, it shall not be a breach of any provision of this Agreement for
Employer to fail to make such payment to Executive if (i) Employer is legally
prohibited from making the payment; (ii) Employer would be legally
obligated to recover the payment if it was made; or (iii) Executive would be
legally obligated to repay the payment if it was made.

    

    15.           Deductions and
Withholdings.  With respect to any payment to be made to the
Executive, Employer shall deduct, where applicable, any amounts authorized by
Employee, and shall withhold and report all amounts required to be withheld and
reported by applicable law.

    

    16.           Notices.  All
notices, requests, demands, and other communications required or permitted to be
given or made by either party shall be in writing and shall be deemed to have
been duly given or made (a) when delivered personally, or (b) when deposited in
the United States mail, first class registered or certified mail, postage
prepaid, return receipt requested, to the party for which intended at the
following addresses (or at such other addresses as shall be specified by the
parties by like notice, except that notices of change of address shall be
effective only upon receipt):

    
      
         

      

      
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    (i)           If
to Employer, at:

    

    Rosetta
Resources Inc.

    Attn:
General Counsel

    717
Texas

    Suite
2800

    Houston,
Texas 77002

    

    (ii)           If
to Executive, at Executive’s then-current home address on file with
Employer.

    

    17.           Injunctive
Relief.  Executive acknowledges and agrees that Employer would
not have an adequate remedy at law and would be irreparably harmed in the event
that any of the provisions of Paragraphs 8, 9, and 10 were not performed in
accordance with their specific terms or were otherwise
breached.  Accordingly, Executive agrees that Employer shall be
entitled to equitable relief, including preliminary and permanent injunctions
and specific performance, in the event Executive breaches or threatens to breach
any of the provisions of such Paragraphs, without the necessity of posting any
bond or proving special damages or irreparable injury.  Such remedies
shall not be deemed to be the exclusive remedies for a breach or threatened
breach of this Agreement by Executive, but shall be in addition to all other
remedies available to Employer at law or equity.

    

    18.           Mitigation.  Executive
shall not be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment or otherwise, nor shall the amount of any
payment provided for in this Agreement be reduced by any compensation earned by
Executive as the result of employment by another employer after the date of
termination of Executive’s employment with Employer, or
otherwise.

    
      
         

      

      
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    19.           Binding Effect; No
Assignment by Executive; No Third Party Benefit.  This
Agreement shall be binding upon and inure to the benefit of the parties and
their respective heirs, legal representatives, successors, and assigns;
provided, however, that Executive shall not assign or otherwise transfer this
Agreement or any of his rights or obligations under this
Agreement.  Employer is authorized to assign or otherwise transfer
this Agreement or any of its rights or obligations under this Agreement to an
Affiliate of Employer.  Executive shall not have any right to pledge,
hypothecate, anticipate, or in any way create a lien upon any payments or other
benefits provided under this Agreement; and no benefits payable under this
Agreement shall be assignable in anticipation of payment either by voluntary or
involuntary acts, or by operation of law, except by will or pursuant to the laws
of descent and distribution.  Nothing in this Agreement, express or
implied, is intended to or shall confer upon any person other than the parties,
and their respective heirs, legal representatives, successors, and permitted
assigns, any rights, benefits, or remedies of any nature whatsoever under or by
reason of this Agreement.

    

    20.           Assumption by
Successor.  Employer shall ensure that any successor or
assignee (whether direct or indirect, by purchase, merger, consolidation, or
otherwise) to all or substantially all the business and/or assets of the
Employer or the oil
and gas acquisition, exploration, development and production business of the
Employer, either by operation of law or written agreement, assumes the
obligations of this Agreement (the “Assumption Obligation”).  If
Employer fails to fulfill the Assumption Obligation, such failure shall be
considered Good Reason; provided, however, that the compensation to which
Executive would be entitled to upon a termination for Good Reason pursuant to
Paragraph 7(e) shall be the sole remedy of Executive for any failure by Employer
to fulfill the Assumption Obligation.  As used in this Agreement,
“Employer” shall include any successor or assignee (whether direct or indirect,
by purchase, merger, consolidation, or otherwise) to all or substantially all
the business and/or assets of Employer or the oil and gas exploration,
development and production business of the Employer that executes and
delivers the agreement provided for in this Paragraph 20 or that otherwise
becomes obligated under this Agreement by operation of law.

    

    21.           Legal Fees and
Expenses.  Employer will reimburse the Executive for all
reasonable legal fees and expenses incurred by the Executive in connection with
the review of this Agreement on or after September 1, 2007 and prior to its
execution, provided that any such reimbursement shall be made within the same
calendar year in which falls the Amendment Date.

    

    22.           Governing Law;
Venue.  This Agreement and the employment of Executive shall be
governed by the laws of the State of Texas except for its laws with respect to
conflict of laws.  The exclusive forum for any lawsuit arising from or
related to Executive’s employment or this Agreement shall be a state or federal
court in Harris County, Texas.  This provision does not prevent
Employer from removing to an appropriate federal court any action brought in
state court.  EXECUTIVE HEREBY CONSENTS TO, AND
WAIVES ANY OBJECTIONS TO, REMOVAL TO FEDERAL COURT BY EMPLOYER OF ANY ACTION
BROUGHT AGAINST IT BY EXECUTIVE.

    
      
         

      

      
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    23.           JURY TRIAL
WAIVER.  IN THE EVENT THAT ANY DISPUTE ARISING FROM OR RELATED
TO THIS AGREEMENT OR EXECUTIVE’S EMPLOYMENT WITH EMPLOYER RESULTS IN A LAWSUIT,
BOTH EMPLOYER AND EXECUTIVE MUTUALLY WAIVE ANY RIGHT THEY MAY OTHERWISE HAVE FOR
A JURY TO DECIDE THE ISSUES IN THE LAWSUIT, REGARDLESS OF THE PARTY OR PARTIES
ASSERTING CLAIMS IN THE LAWSUIT OR THE NATURE OF SUCH
CLAIMS.  EMPLOYER AND EXECUTIVE IRREVOCABLY AGREE THAT ALL ISSUES IN
SUCH A LAWSUIT SHALL BE DECIDED BY A JUDGE RATHER THAN A JURY.

    

    24.           Entire
Agreement.  This Agreement contains the entire agreement
between the parties concerning the subject matter hereof and supersedes all
prior agreements and understandings, written and oral, between the parties with
respect to the subject matter of this Agreement.

    

    25.           Modification;
Waiver.  No person, other than pursuant to a resolution duly
adopted by the members of the Board, shall have authority on behalf of Employer
to agree to modify, amend, or waive any provision of this
Agreement.  Further, this Agreement may not be changed orally, but
only by a written agreement signed by the party against whom any waiver, change,
amendment, modification or discharge is sought to be
enforced.  Executive acknowledges and agrees that no breach by
Employer of this Agreement or failure to enforce or insist on its rights under
this Agreement shall constitute a waiver or abandonment of any such rights or
defense to enforcement of such rights.

    

    26.           Construction.  This
Agreement is to be construed as a whole, according to its fair meaning, and not
strictly for or against any of the parties.

    

    27.           Severability.  If
any provision of this Agreement shall be determined by a court to be invalid or
unenforceable, the remaining provisions of this Agreement shall not be affected
thereby, shall remain in full force and effect, and shall be enforceable to the
fullest extent permitted by applicable law.

    

    28.           Counterparts.  This
Agreement may be executed by the parties in any number of counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the
same agreement.

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, Employer has caused this Agreement to be executed on its behalf
by its duly authorized officer, and Executive has executed this Agreement,
effective as of the Amendment Date first set forth above.

    

    
      	
              EMPLOYER

            	 
      	
              EXECUTIVE

            	 
	 
      	 
      	 
      	 
	
              ROSETTA
      RESOURCES INC.

            	 
      	
              EDWARD
      E. SEEMAN

            	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	By:	
              /s/ Randy L. Limbacher

            	 
      	
              /s/ Edward E. Seeman

            	 
	 
      	 
      	 
      	 
	RANDY
      L. LIMBACHER	 
      	
               

            
	PRESIDENT
      & CHIEF EXECUTIVE OFFICER	 
      	
               

            

    

     

     

    24Unassociated Document

    EMPLOYMENT
      AGREEMENT

     

    EMPLOYMENT
      AGREEMENT
      (this
      "Agreement"),
      dated
      effective as of February 26, 2008 (the "Effective
      Date"),
      by
      and between Universal
      Bioenergy Inc.,
      a
      corporation organized and existing under the laws of the Nevada whose principal
      office is located at 128 Biodiesel Drive, Nettleton, MS 38858 (the "Company"),
      and
      Dr. Richard Craven, an individual residing at _______________________ (the
      "Executive").

     

    WITNESSETH:

     

    WHEREAS,
      the
      Company wishes to employ the Executive upon the terms and subject to the
      conditions set forth herein, and the Executive desires to enter into this
      Agreement and accept such employment, upon such terms and
      conditions;

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and promises contained herein, the parties
      hereto, each intending to be legally bound hereby, agree as
      follows:

     

    1.  Employment.
      The
      Executive shall serve as the Company's Chief Executive Officer. The Executive
      shall perform the usual and customary functions of a chief executive officer
      and
      in such capacity shall render such services as are usual and customary with
      and
      incident to such position, and other duties as the Board of Directors of the
      Company (the "Board")
      may
      from time to time direct provided, however, that such services are not
      materially inconsistent with the duties described above. 

     

    2.  Performance.
      During
      the Employment Term, the Executive shall perform and discharge the duties that
      may be assigned to him by the Board of Directors of the Company from time to
      time in accordance with this Agreement, and the Executive shall devote his
      best
      talents, efforts and abilities to the performance of his duties hereunder.
      The
      Company will not preclude the Executive from exercising reasonable execution
      and
      devotion of time to the Executive's personal and family investments as long
      as
      those efforts do not unduly affect the performance of the Executive's duties
      to
      the Company or said investment activities are not in direct competition with
      the
      Company's field of interest as defined under Section 7(b) or otherwise in breach
      of this Agreement.

     

    3.  Employment
      Term.
      Unless
      earlier terminated pursuant to Section 5, the employment term shall begin
      on February 26, 2008 (the "Effective
      Date"),
      and
      shall continue for a period of one (1) year from such date (the "Initial
      Term");
      provided that such term shall be automatically extended for additional periods
      of one (1) year commencing on February 27, 2008 and each February 27, thereafter
      (such period the "Additional
      Term")
      unless
      either party shall have given notice to the other party that such party does
      not
      desire to extend the term of this Agreement. Any such notice must comply with
      Section 10 and be given at least forty five (45) days prior to the end of the
      Initial Term or the Additional Terms, as applicable (the Initial Term and the
      Additional Term or Terms, if applicable, shall be known collectively as the
      "Employment
      Term").
      Notwithstanding anything in this Agreement to the contrary, the Employment
      Term
      shall end on the Termination Date as defined in Section 5(g). 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.  Compensation.
      As
      compensation for services hereunder and in consideration of the Executive’s
      other agreements hereunder, during the Employment Term, the Company shall pay
      the Executive:

     

    (a)   Base
      Salary.
      A base
      salary, payable in accordance with the customary payroll practices of the
      Company, subject to withholding and other applicable taxes, at an annual rate
      of
      Sixty Thousand Dollars ($60,000) (the "Base
      Salary").

     

    (b)  Signing
      Bonus.
      A
      signing bonus of Restricted Stock equal to One Hundred Thousand Dollars
      ($100,000) to be calculated on the valuation of the Company’s common shares on
      the Effective Date. Notwithstanding anything contained herein to the contrary,
      the Restricted Stock granted herein shall be Restricted and vest on, and be
      delivered to you promptly following, February 27, 2009 (the "Vesting
      Date");
      provided that you have remained continuously employed by the Company until
      the
      Vesting Date. In the event the Agreement is terminated prior to the Vesting
      Date
      however, the Company shall grant the Executive a portion of the Restricted
      Stock
      to be calculated on a pro-rated basis. 

     

    For
      purposes of this Agreement, Restricted Stock shall mean, that the shares of
      the
      Company, and the Executive’s interest therein, may not be sold, assigned,
      transferred, pledged, hypothecated or otherwise disposed of, except by will
      or
      the laws of descent and distribution, prior to the lapse of the applicable
      two
      (2) year restrictions as set forth in the legend affixed to the Restricted
      Stock
      certificates.

     

    (c)  Performance
      Bonus. Executive
      will be eligible to receive an annual performance bonus (the "Performance
      Bonus"),
      for
      every One Million Dollars ($1,000,000) of the Company’s profit before taxes (the
      "Profit")
      equal
      to: (i) One Percent (1%) of the Profit in cash; and (ii) Four Percent (4%)
      of
      the Profit in Restricted Stock. The
      Company agrees to pay Consultant any Performance Bonus within thirty (30) days
      of the end of the Company’s fiscal quarter in which such Performance Bonus was
      earned.

     

    (d)  Transaction
      Fee.
      For
      each successfully completed Transaction, the Company shall pay Executive a
      "Transaction
      Fee"
      equal
      to One Percent (1%) of the "Transaction
      Value"
      payable
      to the Executive as ten percent (10%) in cash within thirty (30) days of the
      close of the Transaction and 90% as Restricted Stock. For the purpose of
      calculating a Transaction Fee, "Transaction Value" shall equal the total
      proceeds and other consideration paid or received and to be paid or received
      (which shall be deemed to include amounts paid or to be paid into
      escrow),
      and
      in the
      case
      of a partnership, joint venture or recapitalization or similar Transaction,
      contributed or to be contributed,
      in
      connection with a Transaction, including, without limitation: (i) cash; (ii)
      notes, securities and other property valued at the fair market value thereof;
      (iii) liabilities, including all debt, pension liabilities and guarantees,
      directly or indirectly, assumed, refinanced or extinguished; (iv) payments
      to be
      made in installments; (v) amounts paid or payable under consulting agreements,
      agreements not to compete or similar arrangements (including such payments
      to
      management); (vi) the total value of any contingent payments (whether or not
      related to future earnings or operations); (vii) in the event that the
      Transaction involves the disposition of assets, the value of net current assets
      not sold; and (viii) if the Transaction takes the form of a recapitalization,
      restructuring or similar transaction, the fair market value of equity securities
      of the acquired company retained by the acquired company’s security holders upon
      consummation of such Transaction (such securities and all other securities
      received by such security holders being deemed to have been paid to such
      security holders in such Transaction).

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    For
      purposes of this agreement, "Transaction"
      means,
      whether in one or a series of transactions, an investment in the Company by
      a
      third party or the sale, transfer or other disposition, directly or indirectly,
      of all or a significant portion of the business, assets or securities of the
      Company, whether by way of a merger or an acquisition, as a direct result of
      the
      Executive’s efforts on behalf of the Company. 

     

    (e)  Non-Cash
      Consideration.
      For
      purposes of computing any fees payable to Executive hereunder, non-cash
      consideration shall be valued as follows: (i) publicly traded securities shall
      be valued at the average of their closing prices (as reported in the Wall Street
      Journal) for the five trading days prior to the closing of the Transaction
      and
      (ii) any other non-cash consideration shall be valued at the fair market value
      thereof as determined in good faith by the Company.

     

    (f)  Termination.
      The
      employment hereunder of the Executive may be terminated prior to the expiration
      of the Employment Term in the manner described in this Section 5. 

     

    (g)  Termination
      by the Company for Good Cause.
      The
      Company shall have the right to terminate the employment of the Executive for
      Good Cause (as such term is defined in Section 5(h)(ii)) by written notice
      to
      the Executive specifying the particulars of the circumstances forming the basis
      for such Good Cause. 

     

    (h)  Termination
      upon Death.
      The
      employment of the Executive hereunder shall terminate immediately upon his
      death. 

     

    (i)  The
      Company's Options upon Disability.
      If the
      Executive becomes physically or mentally disabled during the Term so that
      he is
      unable
      to perform the services required of him pursuant to this Agreement for a period
      of 180 successive days or a cumulative 180 days in any twelve-month period
      (the
      "Disability
      Period"),
      the
      Company shall have the option, in its discretion, by giving written notice
      thereof, either to (A) terminate the Executive's employment hereunder pursuant
      to Section 5(a); or (B) continue the employment of the Executive hereunder
      upon
      all the terms and conditions set forth herein. During the Disability Period
      the
      Executive shall continue to receive the compensation and other benefits provided
      herein net of any payments received under any disability policy or program
      of
      which the Executive is a beneficiary or recipient. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (j)  Voluntary
      Resignation by the Executive.
      The
      Executive shall have the right to voluntarily resign his employment hereunder
      for other than Good Reason (as such term is defined in Section 5(h)(iv)) by
      written notice to the Company. 

     

    (k)  Termination
      by the Company Without Good Cause.
      The
      Company shall have the right to terminate the Executive's employment hereunder
      without Good Cause by written notice to the Executive, but the obligations
      placed upon the Company in Section 6 will apply. 

     

    (l)  Resignation
      by the Executive for Good Reason.
      The
      Executive shall have the right to terminate his employment for Good Reason
      by
      written notice to the Company specifying the particulars of the circumstances
      forming the basis for such Good Reason. 

     

    (m)  Termination
      Date.
      The
      "Termination Date" is the date as of which the Executive's employment with
      the
      Company terminates in accordance with this Agreement. Any notice of termination
      given pursuant to the provisions of this Agreement shall specify the Termination
      Date.

     

    (n)  Professional
      Recognition.
      Company
      agrees to include Executive as a co-author on any professional articles
      (peer-reviewed or not), manuscripts, or similar and grants privileges for
      editing contributions. Also the Company will include Executive as a co-inventor
      on any patent and/or intellectual property associated with the Company provided,
      however that Executive shall not entitled to any additional compensation rights
      of any kind associated with a co-inventor status or otherwise.

     

    (o)  Certain
      Definitions.
      For
      purposes of this Agreement, the following terms shall have the following
      meanings:

     

    (i)  "Person"
      means any individual, corporation, partnership, association, joint-stock
      company, trust, unincorporated organization, joint venture, court or government
      (or political subdivision or agency thereof).

     

    (ii)  "Good
      Cause" shall exist if the Executive: (i) willfully or repeatedly fails in any
      material respect to satisfactorily perform his duties and obligations under
      this
      Agreement, including without limitation the failure to comply substantially
      with
      the reasonable instructions of the Board of Directors, which failure is not
      cured within (fifteen (15) business days after written notice of such failure
      is
      delivered by the Company; (ii) has been convicted of a crime or has entered
      a
      plea of guilty or nolo contender with respect thereto; (iii) has committed
      any
      act in connection with his employment with the Company which involves fraud,
      gross negligence, misappropriation of funds, dishonesty, disloyalty, breach
      of
      fiduciary duty or other misconduct injurious to the Company or any other member
      of the Company Group; (iv) has engaged in any conduct which in the reasonable
      determination of the Board is likely to adversely affect in any material respect
      the reputation or public image of the Company or any other member of the Company
      Group; or (v) breaches in any material respect this Agreement which breach
      is
      not cured within fifteen (15) business days after written notice of such failure
      is delivered by the Company; provided, however, that during any twelve (12)
      month period, the Company shall only be required to give notice three (3) times
      in the aggregate for any breaches of clauses (i) or (v) above. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (iii)  "Company
      Group" shall mean the Company and any parent companies and subsidiaries and
      other entities under common control.

     

    (iv)  "Good
      Reason" means the occurrence of any of the following events:

     

    (A)  the
      assignment to the Executive of any duties inconsistent in any material respect
      with the Executive's then position (including status, offices, titles and
      reporting relationships), authority, duties or responsibilities, or any other
      action or actions by the Company which when taken as a whole results in a
      significant diminution in the Executive's position, authority, duties or
      responsibilities, excluding for this purpose any isolated, immaterial and
      inadvertent action not taken in bad faith and which is remedied by the Company
      promptly after receipt of notice thereof given by the Executive; or

     

    (B)  a
      material breach by the Company of one or more provisions of this Agreement,
      provided that such Good Reason shall not exist unless the Executive shall first
      have provided the Company with written notice specifying in reasonable detail
      the factors constituting such material breach and such material breach shall
      not
      have been cured by the Company within thirty (30) days after such notice or
      such
      longer period as may reasonably be necessary to accomplish the cure but in
      any
      event no longer than ninety (90) days; 

     

    5.  Obligations
      of Company on Termination.
      Notwithstanding anything in this Agreement to the contrary, the Company's
      obligations on termination of the Executive's employment shall be as described
      in this Section 6.

     

    (a)  Obligations
      of the Company in the Case of Termination Without Good Cause or Resignation
      by
      the Executive for Good Reason.
      In the
      event that prior to the expiration of the Employment Term, the Company
      terminates the Executive's employment, pursuant to Section 5(e), without Good
      Cause, or the Executive resigns, pursuant to Section 5(f), for Good Reason,
      the
      Company shall provide the Executive with the following:

     

    (i) Amount
      of Severance Payment.
      Except
      as provided in Section 6(b) below, within thirty (30) days following the
      Termination Date, the Company shall pay the Executive on a monthly basis (as
      if
      still employed by Company but off the payroll) a
      single
      lump sum cash payment (the "Severance
      Payment")
      equal
      to the sum of the following: 

     

    (A)  the
      equivalent of six (6) months Base Salary in the event the Termination Date
      is
      after the first anniversary of the Effective Date (the "First
      Anniversary")
      to
      increase by an amount equal to three months Base Salary for each year the
      Executive is employed by the Company after the First Anniversary, up to an
      amount not to exceed two (2) years Base Salary; and

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (B)  any
      Base
      Salary, vacation and unreimbursed expenses accrued but unpaid as of the
      Termination Date and any Performance Bonus applicable to the present fiscal
      quarter and/or Transaction Fees to which Transaction the Executive has made
      recognized contribution in facilitating provided any such Transaction is closed
      no later than ninety (90) days after the Termination Date. 

     

    (b)  Obligations
      of the Company in case of Termination for Death, Disability, Voluntary
      Resignation or Good Cause.
      Upon
      termination of the Executive's employment upon death (pursuant to Section 5(b)),
      or for Good Cause (pursuant to Section 5(a)), the Company’s obligations to the
      Executive shall be limited to the payment of any Base Salary, Performance Bonus
      for present fiscal quarter, Transaction Fees for pending transactions to which
      the Executive made recognized contribution in facilitating provided any such
      Transaction is closed no later than sixty (60) days after the Termination Date
      and unreimbursed expenses accrued but unpaid as of the date of such
      termination.

     

    6.  Covenants
      of the Executive

     

    (a)  During
      the Employment Term and for a period of two (2) years thereafter the Executive
      shall not, directly or indirectly, employ, solicit for employment or otherwise
      contract for the services of any employee of the Company or any of its
      affiliates at the time of this Agreement or who shall subsequently become an
      employee of the Company or any such affiliate; and 

     

    (b)  
      During
      the Employment Term and for a period of one (1) year thereafter the Executive
      will not at any time engage in or participate as an executive officer, employee,
      director, agent, consultant representative, stockholder, or partner, or have
      any
      financial interest, in any business which "competes" with the Company or
      successor to the business of the Company. For the purposes hereof, a "competing"
      business shall mean any private or public entity in the biodiesel field.
      Ownership by the Executive of publicly traded stock of any corporation
      conducting any such business shall not be deemed a violation of the preceding
      two sentences provided the Executive does not own more than five percent
      (5% of
      the
      stock of any such corporation.

     

    (c)  
      Executive agrees that all records, in whatever medium (including written works),
      documents, papers, notebooks, drawings, designs, technical information, source
      code, object code, processes, methods or other copyrightable or otherwise
      protected works Executive conceives, creates, makes, invents, or discovers
      that
      relate to or result from any work he performs or performed for the Company
      or
      that arise from the use or assistance of the Company’s facilities, materials,
      personnel, or Confidential Information in the course of his employment (whether
      or not during usual working hours), whether conceived, created, discovered,
      made, or invented individually or jointly with others, will be and remain the
      absolute property of the Company, as will all the worldwide patent, copyright,
      trade secret, or other intellectual property rights in all such works. Executive
      irrevocably and unconditionally waives all rights, wherever in the world
      enforceable, that vest in him (whether before, on, or after the date of this
      Agreement) in connection with his authorship of any such copyrightable works
      in
      the course of his employment with the Company. Without limitation, Executive
      hereby waives the right to be identified as the author of any such works and
      the
      right not to have any such works subjected to derogatory treatment. Executive
      recognizes that any such works are “works made for hire” of which the Company is
      the author.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (d)  All
      files, records, correspondence, memoranda, notes or other documents (including,
      without limitation, those in computer-readable form), real property or
      intellectual property relating or belonging to the Company or its affiliates,
      whether prepared by the Executive or otherwise coming into his possession in
      the
      course of the performance of his services under this Agreement, shall be the
      exclusive property of Company and shall be delivered to Company and not retained
      by the Executive (including, without limitations, any copies thereof) upon
      termination of this Agreement for any reason whatsoever.

     

    (e)  Executive
      acknowledges that his employment with the Company under this Agreement, will
      give him access to Confidential Information (as defined below). Executive
      acknowledges and agrees that using, disclosing, or publishing any Confidential
      Information in an unauthorized or improper manner could cause the Company or
      its
      members to incur substantial loss and damages that could not be readily
      calculated and for which no remedy at law would be adequate. Accordingly,
      Executive agrees with the Company that he will not at any time, except in
      performing his employment duties to the Company under this Agreement (or with
      the Board of Directors of the Company’s, prior written consent), directly or
      indirectly, use, disclose, or publish, or permit others not so authorized to
      use, disclose, or publish any Confidential Information that you may learn or
      become aware of, or may have learned or become aware of, because of his
      continuing employment, ownership, or association with the Company, or use any
      such information in a manner detrimental to the interests of the Company or
      any
      of its shareholders. For the purposes of this Agreement, "Confidential
      Information" includes, without limitation, confidential or proprietary
      information that has not previously been disclosed to the public or to the
      trade
      with respect to the Company’s or any of its affiliates present or future
      business, including, without limitation, its operations, services, products,
      research, clients, potential investors, inventions, discoveries, drawings,
      designs, plans, processes, quantitative methodologies, models, technical
      information, facilities, methods, trade secrets, copyrights, software, source
      code, systems, patents, procedures, manuals, specifications, any other
      intellectual property, confidential reports, customer lists, financial
      information (including the revenues, costs, or profits associated with such
      party’s products or services), business plans, projections, prospects,
      opportunities or strategies, acquisitions or mergers, advertising or promotions,
      personnel matters and legal matters, but excludes any information already
      properly in the public domain. "Confidential Information" also includes
      confidential and proprietary information and trade secrets that third parties
      entrust to the Company in confidence.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (f)  The
      Executive acknowledges that a breach of his covenants contained in this Section
      7 may cause irreparable damage to the Company and its affiliates, the exact
      amount of which will be difficult to ascertain, and that the remedies at law
      for
      any such breach will be inadequate. Accordingly, the Executive agrees that
      if
      she breaches any of the covenants contained in this Section 7, in addition
      to
      any other remedy which may be available at law or in equity, the Company shall
      be entitled to specific performance and injunctive relief.

     

    (g)  The
      Company and the Executive further acknowledge that the time, scope, geographic
      area and other provisions of this Section 7 have been specifically negotiated
      by
      sophisticated commercial parties and agree that all such provisions are
      reasonable under the circumstances of the activities contemplated by this
      Agreement. In the event that the agreements in this Section 7 shall be
      determined by any court of competent jurisdiction to be unenforceable by reason
      of their extending for too great a period of time or over too great a
      geographical area or by reason of their being too extensive in any other
      respect, they shall be interpreted to extend only over the maximum period of
      time for which they may be enforceable and/or over the maximum geographical
      area
      as to which they may be enforceable and/or to the maximum extent in all other
      respects as to which they may be enforceable, all as determined by such court
      in
      such action.

     

    (h)  The
      Executive agrees to cooperate with the Company, during the Employment Term
      and
      thereafter (including following the Executive's termination of employment for
      any reason), by making himself reasonably available to testify on behalf of
      the
      Company or any of its affiliates in any action, suit, or proceeding, whether
      civil, criminal, administrative, or investigative, and to assist the Company,
      or
      any affiliate, in any such action, suit, or proceeding, by providing information
      and meeting and consulting with the Board or its representatives or counsel,
      or
      representatives or counsel to the Company, or any affiliate as reasonably
      requested; provided, however that the same does not materially interfere with
      him then current professional activities and is not contrary to the best
      interests of the Executive. The Company agrees to reimburse the Executive,
      on an
      after-tax basis, for all expenses actually incurred in connection with his
      provision of testimony or assistance.

     

    (i)  The
      parties agree that,
      during the Employment Term and thereafter (including following the Executive's
      termination of employment for any reason) that they will not make statements
      or
      representations, or otherwise communicate, directly or indirectly, in writing,
      orally, or otherwise, or take any action which may, directly or indirectly,
      disparage the other party or any of its affiliates or their respective officers,
      directors, employees, advisors, businesses or reputations. Notwithstanding
      the
      foregoing, nothing in this Agreement shall preclude either party from making
      truthful statements or disclosures that are required by applicable law,
      regulation or legal process.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    7.  Withholding.
      The
      Company may withhold from the Executive's compensation all applicable amounts
      required by law.

     

    8.  Arbitration.
      The
      parties agree that any dispute, claim, or controversy based on common law,
      equity, or any federal, state, or local statute, ordinance, or regulation (other
      than workers’ compensation claims) arising out of or relating in any way to the
      Executive’s employment, the terms, benefits, and conditions of employment, or
      concerning this Agreement or its termination and any resulting termination
      of
      employment, including whether such a dispute is arbitrable, shall be settled
      by
      arbitration. This agreement to arbitrate includes but is not limited to all
      claims for any form of illegal discrimination, improper or unfair treatment
      or
      dismissal, and all tort claims. The Executive will still have a right to file
      a
      discrimination charge with a federal or state agency, but the final resolution
      of any discrimination claim will be submitted to arbitration instead of a court
      or jury. The arbitration proceeding will be conducted under the employment
      dispute resolution arbitration rules of the American Arbitration Association
      in
      effect at the time a demand for arbitration under the rules is made. The
      decision of the arbitrator(s), including determination of the amount of any
      damages suffered, will be exclusive, final, and binding on all parties, their
      heirs, executors, administrators, successors and assigns. Each party will bear
      its own expenses in the arbitration for arbitrators’ fees and attorneys’ fees,
      for its witnesses, and for other expenses of presenting its case. Other
      arbitration costs, including administrative fees and fees for records or
      transcripts, will be borne equally by the parties. 

     

    9.  Notices.
      Any
      notices required or permitted hereunder shall be in writing and shall be deemed
      to have been given when personally delivered or when mailed, certified or
      registered mail, postage prepaid, to the following addresses:

     

    If
      to the
      Executive:

     

    
      	 	
              Attn:
                Dr. Richard Craven

            

    

     

    If
      to the
      Company:

     

    
      	 	
              Universal
                Bioenergy, Inc.

              128
                Biodiesel Drive, 

              Nettleton,
                MS 38858 

              Attention:
                _________ 

            

    

    

     

    10.  General:

     

    (a)  Construction
      and Severability.
      If any
      provision of this Agreement shall be held invalid, illegal or unenforceable
      in
      any jurisdiction, the validity, legality and enforceability of the remaining
      provisions contained herein shall not in any way be affected or impaired, and
      the parties undertake to implement all efforts which are necessary, desirable
      and sufficient to amend, supplement or substitute all and any such invalid,
      illegal or unenforceable provisions with enforceable and valid provisions which
      would produce as nearly as may be possible the result previously intended by
      the
      parties without renegotiation of any material terms and conditions stipulated
      herein. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (b)  Performance;
      Assignability.
      The
      Executive represents and warrants to the Company that the Executive has no
      contracts or agreements of any nature that the Executive has entered into with
      any other person, firm or corporation that contain any restraints on the
      Executive’s ability to perform his obligations under this Agreement. The
      Executive may not assign his interest in or delegate his duties under this
      Agreement. This Agreement is for the employment of the Executive, personally,
      and the services to be rendered by him under this Agreement must be rendered
      by
      him and no other person. This Agreement shall be binding upon and inure to
      the
      benefit of the Company and its successors and assigns. Notwithstanding anything
      else in this Agreement to the contrary, the Company may assign this Agreement
      to
      and all rights hereunder shall inure to the benefit of any person, firm or
      corporation resulting from the reorganization of the Company or succeeding
      to
      the business or assets of the Company by purchase, merger or consolidation.
      The
      Company will require any successor (whether direct or indirect, by purchase,
      merger, consolidation or otherwise) to all or substantially all of the business
      and/or assets of the Company to assume expressly and agree to perform this
      Agreement in the same manner and to the same extent that the Company would
      be
      required to perform it if no succession had taken place. The Company's failure
      to obtain such an assumption and agreement prior to the effective date of a
      succession will be a breach of this Agreement and will entitle the Executive
      to
      compensation from the Company in the same amount and on the same terms as if
      the
      Executive were to terminate his employment for Good Reason, except that, for
      purposes of implementing the foregoing, the date on which any such succession
      becomes effective will be deemed the Termination Date.

     

    (c)  Compliance
      with Rules and Policies.
      The
      Executive shall perform all services in accordance with the policies, procedures
      and rules established by the Company, including, but not limited to, the By-Laws
      of the Company. In addition, the Executive shall comply with all laws, rules
      and
      regulations that are generally applicable to the Company, its affiliates and
      their employees, directors and officers.

     

    (d)  Withholding.
      The
      Company shall withhold from all amounts due hereunder any withholding taxes
      payable to federal, state, local or foreign taxing authorities.

     

    (e)  Entire
      Agreement, Modification.
      This
      Agreement constitutes the entire agreement of the parties hereto with respect
      to
      the subject matter hereof, supersedes all prior agreements and undertakings,
      both written and oral, and may not be modified or amended in any way except
      in
      writing by the parties hereto.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (f)  Duration.
      Notwithstanding the Employment Term hereunder, this Agree-ment shall continue
      for so long as any obligations remain under this Agreement.

     

    (g)  Survival.
      The
      covenants set forth in Section 7 of this Agreement shall survive and shall
      continue to be binding upon the Executive notwithstanding the termination of
      this Agreement for any reason whatsoever. It is expressly agreed that the remedy
      at law for the breach or threatened breach of any such covenant is inadequate
      and that the Company, in addition to any other remedies that may be available
      to
      it, in law or in equity, shall be entitled to injunctive relief to prevent
      the
      breach or any threatened breach thereof without bond or other security or a
      showing that monetary damages will not provide an adequate remedy.

     

    (h)  Waiver.
      No
      waiver by either party hereto of any of the requirements imposed by this
      Agreement on, or any breach of any condition or provision of this Agreement
      to
      be performed by, the other party shall be deemed a waiver of a similar or
      dissimilar requirement, provision or condition of this Agreement at the same
      or
      any prior or subsequent time. Any such waiver shall be express and in writing,
      and there shall be no waiver by conduct.

     

    (i)  Counterparts.
      This
      Agreement may be executed in two or more counter-parts, all of which taken
      together shall constitute one instrument.

     

    IN
      WITNESS WHEREOF,
      the
      parties hereto, intending to be legally bound, have hereunto executed this
      Agreement as of the day and year first written above.

    

    

    
      	 	 	 
	 	UNIVERSAL
              BIOENERGY, INC.
	 
 	 
 	 
 
	Date: February
              26, 2008	By:  	/s/ 
	 	
              
Name:
              James Earnest
	 	Title:
              President

    
      	 	 	 
	Date:
              February 26, 2008 	Dr.
              Richard
              Craven
	 
 	 
 	 
 
	 	       
                       	/s/ 
	 	
              

            

    

    

    
      
        
        

      

      
        11

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