Document:

Exhibit
10.1

       

       

      EMPLOYMENT
AGREEMENT

       

      THIS AGREEMENT is made as of
January 1, 2010

       

      B E T W E
E N:

       

      ZION OIL AND GAS INC., a
Company incorporated under the laws of Delaware.

       

      (the
"Company")

       

      and
-

       

      WILLIAM
L. OTTAVIANI

       

      (the
"Employee")

       

      

       

      CONTEXT
OF THIS AGREEMENT

       

      A.            The
Company explores for oil and gas in Israel.

       

      B.            The
Company wishes to employ the Employee upon the terms and conditions as set out
herein.

       

       

      FOR VALUE RECEIVED, the
sufficiency of which is acknowledged, the parties agree as follows:

       

      PART
1

      INTERPRETATION

       

      1.1           
Definitions.  In
this Agreement, the following terms shall have the following
meanings:

       

      "Agreement" means this
agreement and all schedules attached hereto and all amendments made hereto and
the thereto in writing by the parties.

       

      "Business Day" means a day
other than a Saturday, Sunday or statutory holiday in the United
States.

       

      "Person" includes individuals,
companies, limited partnerships, general partnerships, joint stock companies,
joint ventures, associations, companies, trusts or other organizations, whether
or not legal entities.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      1.2            Entire Agreement. This
Agreement together with the agreements and other documents to be delivered
pursuant to this Agreement (or other agreements pertaining to employee benefits,
including, without limitation, stock option and bonus plan agreements),
constitute the entire agreement between the parties pertaining to the subject
matter of this Agreement and supersede all prior agreements, understandings,
negotiations and discussions, whether oral or written, of the parties and there
are no warranties, representations or other agreements between the parties in
connection with the subject matter of this Agreement except as specifically set
forth in this Agreement and any document delivered pursuant to this
Agreement.  No supplement, modification or waiver or termination of
this Agreement shall be binding unless executed in writing by the party to be
bound thereby.

       

      1.3            Sections and
Headings.  The division of this Agreement into parts and
sections and the insertion of headings are for convenience of reference only and
shall not affect the construction or interpretation of this
Agreement.  The terms "this Agreement", "hereof", "hereunder" and
similar expressions refer to this Agreement and not to any particular article,
section or other portion hereof and include any agreement or instrument
supplemental or ancillary hereto.  Unless something in the subject
matter or context is inconsistent therewith, references herein to parts and
sections are to parts and sections of this Agreement.

       

      1.4            Number &
Gender.  Words importing the singular number only shall include
the plural and vice versa and words importing the masculine gender shall include
the feminine and neuter genders and vice versa.

       

      1.5            Applicable
Law.  This Agreement shall be construed and enforced in
accordance with the laws of the State of Texas applicable therein.

       

      1.6            Currency.  Unless
otherwise specified, all references herein to currency shall be references to
currency of the United States.

       

      1.7            Calculation of
Time.  When calculating the period of time within which or
following which any act is to be done or step taken pursuant to this Agreement,
the date which is the reference date in calculating such period shall be
excluded.  If the last day of such period is a non Business Day, the
period in question shall end on the next Business Day.

       

      PART
2

      APPOINTMENT AND
DUTIES

       

      2.1           Appointment.  The
Company agrees to employ the Employee as its President and Chief Operating
Officer upon the terms and conditions contained herein and the Employee
accepts such appointment.

      

      2.2           Term.  The
employment of the Employee hereunder shall commence on the date hereof and shall
continue until December 31, 2011 (the “Initial Term”) unless terminated in
accordance with the provisions of this Agreement.  At the end of the
initial twelve months of the Initial Term the Company shall consider extending
this Agreement through December 31, 2012.

       

      2.3           Duties and
Reporting.  The Employee will report directly to the chief
executive officer of the Company and shall carry out all duties and
responsibilities which are from time to time assigned to him by the chief
executive officer. The Employee shall be responsible for the supervision and
control of all of the Company’s operations related to oil and gas
exploration.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      PART
3

      BENEFITS &
EXPENSES

       

      3.1           Gross Salary. During the term
hereof, and subject to the performance of the services required to be performed
hereunder by Employee, the Company shall pay to the Employee for all services
rendered hereunder, as salary, payable not less often than once per month and in
accordance with the Company's normal and reasonable payroll practices, a monthly
gross amount equal to U.S. $20,833 (the "Gross Salary").

      

      Gross
Salary shall be deferred in an amount equal to the percentage being paid by the
Company its other executive officers from time to time. Currently the Company
pays 80% of the monthly gross salaries to its executives up to a maximum amount
of $15,500. The Gross Salary which is deferred shall be paid at such time and in
accordance with the amount being paid to other Company executives.

      

      3.2           Benefits.  The
Employee shall be entitled to participate in all of the Company's benefit plans
generally available to its senior level employees from time to time established
for Company employees who are located in the United States.

       

      3.4           Expenses All expenses
reasonably incurred by the Employee shall be reimbursed, together with any
applicable sales and goods and services taxes, by the Company within 10 Business
Days after presentation by the Employee of proper invoices and receipts in
keeping with the policies of the Company as established from time to time. The
Company shall pay for the reasonable expenses incurred by Employee for rental of
an office in the vicinity of Employee’s residence in State College, PA, normal
and customary office supplies & services (including cell phone expenses) and
for retention of a part time office assistant (with employee benefits
customarily provided by Company).

       

      3.5           Options. Subject to the
Employee entering into the Company's standard Employee Stock Option agreement,
for services required to be performed hereunder by Employee, the Employee shall
be entitled to participate in an employee stock option plan of the Company. The
Company shall grant to Employee under Company’s 2005 Stock Option Plan non
qualified penny options, at the end of each calendar quarter, beginning with
quarter ended March 31, 2010, for an amount of shares of Common Stock of the
Company (“Shares”) equal to the Grant Amount (defined below). The vested options
shall be exercisable until January 31, 2020.

      

      The
“Grant Amount’ shall mean such number of Shares equal to $12,500 divided by the
closing price on the last trading day of the respective calendar quarter of the
Company’s publicly traded shares of Common Stock, but in no event at a per share
price of less than $5.00 (“Closing Price”). The Grant Amount shall be determined
on the first trading day of each succeeding calendar quarter.

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      3.6           Vacation. The Employee shall
be entitled to an annual vacation of twenty (20) working days at full pay.
Vacation days may not be accumulated without the prior written consent of the
Company.

      

      3.7           Withholding Tax Company shall
withhold, or charge Employee with, all taxes and other compulsory payments as
required under applicable law with respect to all payments, benefits and/or
other compensation paid to Employee in connection with his employment with
Company.

      

      PART
4

      EMPLOYEE'S
COVENANTS

       

      4.1            Service.  The
Employee shall devote all of his time, attention and ability to the business of
the Company and shall well and faithfully serve the Company and shall use his
best efforts to promote the interests of the Company. The Employee appreciates
that the Employee's duties may involve significant travel (including overseas)
from the Employee's place of employment, and the Employee agrees to travel as
reasonably required in order to fulfill the Employee's duties. Upon prior
written approval of the Company the Employee may sit on boards of other
companies unless there is a reasonable basis upon which the Company may deny him
the right to do so.

       

      4.2           Duties and Responsibilities.
The Employee shall duly and diligently perform all the duties assigned to him
while in the employ of the Company, and shall truly and faithfully account for
and deliver to the Company all money, securities and things of value belonging
to the Company which the Employee may from time to time receive for, from or on
account of the Company.

       

      4.3           Rules and Regulations. The
Employee shall be bound by and shall faithfully observe and abide by all the
rules and regulations of the Company from time to time in force which are
brought to his notice including insider trading policies and underwriter lock
ups, from time to time in force which are brought to his notice.

       

      PART
5

      CONFIDENTIAL INFORMATION AND
DEVELOPMENTS

       

      5.1            "Confidential Information"
means information, whether or not originated by the Employee, that relates to
the business or affairs of the Company, its affiliates, clients or suppliers and
is confidential or proprietary to, about or created by the Company, its
affiliates, clients, or suppliers.  Confidential Information includes,
but is not limited to, the following types of confidential information and other
proprietary information of a similar nature (whether or not reduced to writing
or designated or marked as confidential):

       

      
        	
                 
      

              	
                (i)

              	
                work
      product resulting from or related to work or projects performed for or to
      be performed for the Company or its affiliates, including but not limited
      to, the interim and final lines of inquiry,
      hypotheses,  research and conclusions related thereto and the
      methods, processes, procedures, analysis, techniques and audits used in
      connection therewith;

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                (ii)

              	
                computer
      software of any type or form and in any stage of actual or anticipated
      development, including but not limited to, programs and program modules,
      routines and subroutines, procedures, algorithms, design concepts, design
      specifications (design notes, annotations, documentation, flowcharts,
      coding sheets, and the like), source code, object code and load modules,
      programming, program patches and system
designs;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                information
      relating to developments (as hereinafter defined) prior to any public
      disclosure thereof, including but not limited to, the nature of the
      developments, production data, technical and engineering data, test data
      and test results, the status and details of research and development of
      products and services, and information regarding acquiring, protecting,
      enforcing and licensing proprietary rights (including patents, copyrights
      and trade secrets);

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                internal
      Company personnel and financial information, vendor names and other vendor
      information, purchasing and internal cost information, internal services
      and operational manuals, and the manner and method of conducting the
      Company's business;

              

      

       

      
        	
                 
      

              	
                (v)

              	
                marketing
      and development plans, price and cost data, price and fee amounts, pricing
      and billing policies, quoting procedures, marketing techniques and methods
      of obtaining business, forecasts and forecast assumptions and volumes, and
      future plans and potential strategies of the Company that have been or are
      being discussed; and

              

      

       

      
        	
                 
      

              	
                (vi)

              	
                all
      information that becomes known to the Employee as a result of employment
      that the Employee, acting reasonably, believes is confidential information
      or that the Company takes measures to
protect.

              

      

       

      5.2            Confidential
Information does not include:

       

      
        	
                 
      

              	
                (i)

              	
                the
      general skills and experience gained during the Employee's employment or
      engagement with the Company that the Employee could reasonably have been
      expected to acquire in similar employment or engagements with other
      companies;

              

      

       

       

      
        	
                 
      

              	
                (ii)

              	
                information
      publicly known without breach of this Agreement or similar agreements;
      or

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                information,
      the disclosure of which is required to be made by any law, regulation,
      governmental authority or court (to the extent of the requirement),
      provided that before disclosure is made, notice of the requirement is
      provided to the Company, and to the extent of the requirement, (to the
      extent reasonably possible in the circumstances) the Company is afforded
      an opportunity to dispute the
requirement.

              

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      5.3            "Developments" means all
discoveries, inventions, designs, works of authorship, improvements and ideas
(whether or not patentable or copyrightable) and legally recognized proprietary
rights (including, but not limited to, patents, copyrights, trademarks,
topographies, know how and trade secrets), and all records and copies of records
relating to the foregoing, that relates solely to the Company's
business  and improvements and modifications to it:

       

      
        	
                 
      

              	
                (i)

              	
                result
      or derive from the Employee's employment or from the Employee's knowledge
      or use of Confidential Information;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                are
      conceived or made by the Employee (individually or in collaboration with
      others) during the term of the Employee's employment by the
      Company;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                result
      from or derive from the use or application of the resources of the Company
      or its affiliates; or

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                relate
      to the business operations of or actual or demonstrably anticipated
      research and development by the Company or its
  affiliates.

              

      

       

      For
greater certainty, discoveries, inventions, designs, works of authorship,
improvements and ideas (whether or not patentable or copyrightable) of the
Employee that do not relate to the business of the Company are not the subject
matter of this Agreement.

       

      PART
6

      NO CONFLICTING
OBLIGATIONS

       

      6.1            The
Employee warrants to the Company that:

       

      
        	
                 
      

              	
                (i)

              	
                the
      performance of the Employee's duties as an employee of the Company will
      not breach any agreement or other obligation to keep confidential the
      proprietary information of any other party;
and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      Employee is not bound by any agreement with or obligation to any other
      party that conflicts with the Employee's obligations as an employee of the
      Company or that may affect the Company's interest in the
      Developments.

              

      

       

      6.2            The
Employee will not, in the performance of the Employee's duties as an employee of
the Company:

       

      
        	
                 
      

              	
                (i)

              	
                improperly
      bring to the Company or use any trade secrets, confidential information or
      other proprietary information of any other party;
  or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                knowingly
      infringe the intellectual property rights of any other
    party.

              

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      PART
7

      CONFIDENTIAL
INFORMATION

       

      7.1            Protection of Confidential
Information. All Confidential Information, whether it is developed by the
Employee during the Employment Period or by others employed or engaged by or
associated with the Company or its affiliates or clients, is the exclusive and
confidential property of the Company or its affiliates or clients, as the case
may be, and will at all times be regarded, treated and protected as such, as
provided in this Agreement.

       

      7.2            Covenants Respecting Confidential
Information. As a consequence of the acquisition of Confidential
Information, the Employee will occupy a position of trust and confidence with
respect to the affairs and business of the Company and its affiliates and
clients. In view of the foregoing, it is reasonable and necessary for the
Employee to make the following covenants regarding the Employee's conduct during
and subsequent to the Employee's employment by the Company.

       

      7.3           
Non
Disclosure.  At all times during and subsequent to the
Employee's employment with the Company, the Employee will not disclose
Confidential Information to any Person (other than as necessary in carrying out
the Employee's duties on behalf of the Company) without first obtaining the
Company's consent, and the Employee will take all reasonable precautions to
prevent inadvertent disclosure of any Confidential Information. This prohibition
includes, but is not limited to, disclosing or confirming the fact that any
similarity exists between the Confidential Information and any other
information.

       

      7.4            Using, Copying,
etc.  At all times during and subsequent to the Employee's
employment with the Company, the Employee will not use, copy, transfer or
destroy any Confidential Information (other than as necessary in carrying out
the Employee's duties on behalf of the Company) without first obtaining the
Company's consent, and the Employee will take all reasonable precautions to
prevent inadvertent use, copying, transfer or destruction of any Confidential
Information. This prohibition includes, but is not limited to, licensing or
otherwise exploiting, directly or indirectly, any products or services that
embody or are derived from Confidential Information or exercising judgment or
performing analysis based upon knowledge of Confidential
Information.

       

      7.5            Return of Confidential
Information.  Within 2 Business Days after the termination of
the Employee's employment on any basis and of receipt by the Employee of the
Company's written request, the Employee will promptly deliver to the Company all
property of or belonging to or administered by Company including without
limitation all Confidential Information that is embodied in any physical or
ephemeral form, whether in hard copy or on magnetic media, and that is within
the Employee's possession or under the Employee's control.

       

      7.6            Obligations
Continue.  The Employee's obligations under this Part 7 are to
remain in effect in perpetuity.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      PART
8

      INTELLECTUAL
PROPERTY

       

      8.1            Ownership.  All
Developments will be the exclusive property of the Company and the Company will
have sole discretion to deal with Developments. For greater certainty, all work
done during the Employment Period by the Employee for the Company or its
affiliates is a work for hire of which the Company or its affiliate, as the case
may be, is the first author for copyright purposes and in respect of which all
copyright will vest in the Company or the relevant affiliate, as the case may
be.

       

      8.2           
Records.  The
Employee will keep complete, accurate and authentic notes, reference materials,
data and records of all Developments in the manner and form requested by the
Company. All these materials will be Confidential Information upon their
creation.

       

      8.3            Moral Rights.  The
Employee hereby irrevocably waives all moral rights arising under statute in any
jurisdiction or under common law which the employee may have now or in the
future with respect to the Developments, including, without limitation, any
rights the Employee may have to have the Employee's name associated with the
Developments or to have the Employee's name not associated with the
Developments, any rights the Employee may have to prevent the alteration,
translation or destruction of the Developments, and any rights the Employee may
have to control the use of the Developments in association with any product,
service, cause or institution. The Employee agrees that this waiver may be
invoked by the Company, and by any of its authorized agents or assignees, in
respect of any or all of the Developments and that the Company may assign the
benefit of this waiver to any Person.

       

      8.4            Further
Assurances.  The Employee will do all further things that may
be reasonably necessary or desirable in order to give full effect to the
foregoing. If the Employee's co-operation is required in order for the Company
to obtain or enforce legal protection of the Developments following the
termination of the Employee's employment, the Employee will provide that
co-operation so long as the Company pays to the Employee reasonable compensation
for the Employee's time at a rate to be agreed, provided that the rate will not
be less than the last base salary or compensation rate paid to the Employee by
the Company during the Employee's employment.

       

      8.5            Obligations
Continue.  The Employee's obligations under this Part 8 are to
remain in effect in perpetuity.

       

      PART
9

      CONSENT TO
ENFORCEMENT

       

      The
Employee confirms that all restrictions in Part 7 and 8 are reasonable and valid
and all defences to the strict enforcement thereof by the Company are waived by
the Employee. Without limiting the generality of the forgoing, the Employee
hereby consents to an injunction being granted by a court of competent
jurisdiction in the event that the Employee is in any breach of any of the
provisions stipulated in Part 7 and 8. The Employee hereby expressly
acknowledges and agrees that injunctive relief is an appropriate and fair remedy
in the event of a breach of any of the said provisions.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      PART
10

      WARRANTIES, COVENANTS AND
REMEDIES

       

      10.1          The
obligations of the Employee as set forth in Parts 6 through 9 will be deemed to
have commenced as of the date on which the Employee was first employed by
Company. The Employee warrants that the Employee has not, to date, breached any
of the obligations set forth in any of those Sections. Any breach or threatened
breach of those sections by the Employee will constitute Just Cause for
immediate termination of the Employee's employment or engagement by the
Company.

       

      10.2          The
Employee understands that the Company has expended significant financial
resources in developing its products and the Confidential Information.
Accordingly, a breach or threatened breach by the Employee of any of Parts 6
through 9 could result in unfair competition with the Company and could result
in the Company and its shareholders suffering irreparable harm that is not
capable of being calculated and that cannot be fully or adequately compensated
by the recovery of damages alone. Accordingly, the Employee agrees that the
Company will be entitled to interim and permanent injunctive relief, specific
performance and other equitable remedies, in addition to any other relief to
which the Company may become entitled.

       

      10.3          The
Employee's obligations under each of Parts 6 through 9 are to remain in effect
in accordance with each of their terms and will exist and continue in full force
and effect despite any breach or repudiation, or alleged breach or repudiation,
of this Agreement or the Employee's employment (including, without limitation,
the Employee's wrongful dismissal) by the Company.

       

      PART
11

      TERMINATION

       

      11.1          Termination by the
Employee.  The Employee may terminate this Agreement upon 60
Business Days prior written notice given by the Employee to the
Company.  The Company, at its sole discretion, may elect to accept the
60 Business Days written notice or to reduce or eliminate the notice
period.  In such event, the Employee's employment shall terminate on
the earlier day elected by the Company.  Such election on the part of
the Company will not alter the nature of the termination as voluntary and the
Company will not be required to pay any severance or termination payments in
respect of a termination by the Employee under this Section
11.1.  Upon the termination of employment by the Employee under this
Section 11.1 the Company shall pay to the Employee all  bonuses and
other benefits earned or accrued up to the date of termination, but otherwise
all obligations of the Company under this Agreement shall end.

       

      11.2          Definition of "Just
Cause".  "Just Cause" means:

       

      (i)  Employee’s
conviction of, or plea of nolo contendere, to any felony or to a crime involving
moral depravity or fraud; (ii) Employee’s commission of an act of dishonesty or
fraud or breach of fiduciary duty or act that has a material adverse effect on
the name or public image of the Company, as determined by the Board provided the
Board affords the Employee  the opportunity to personally appear
before the Board in order to state his case prior to the Board voting to so
terminate the Employee;  (iii)  Employee’s commission of an
act of willful misconduct or gross negligence; (iv) the failure of Employee to
perform his duties under this Agreement as determined by the Board provided the
Employee shall have the opportunity to state his case before the Board prior to
the Board taking such decision to so terminate the Employee; (v) the material
breach of any of Employee’s material obligations under this Agreement as
determined by the Board provided the Employee shall have the opportunity to
state his case before the Board prior to the Board taking such decision to so
terminate the Employee; (vi) insubordination; or (vii) excessive absenteeism,
chronic alcoholism or any other form of addiction that prevents Employee from
performing the essential functions of his position with or without a reasonable
accommodation; provided, however, that the
Company may terminate Employee’s employment for Just Cause, as
to  (iv) or (v) above, only after failure by Employee to correct or
cure, or to commence or to continue to pursue the correction or curing of, such
conduct or omission within ten (10) days after receipt by Employee of written
notice by the Company of each specific claim of any such misconduct or
failure.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      
 

      11.3          Termination by the Company for Just
Cause.  The Company may terminate this Agreement at any time
for Just Cause without notice and (except as provided in the immediately
following sentence) without payment of any compensation by way of anticipated
earnings, damages, or other relief of any kind whatsoever.  Upon the
termination of employment by the Company for Just Cause, the Company shall pay
to the Employee all salaries, bonuses, vacation and other benefits, if any,
earned or accrued up to the date of termination, but otherwise all obligations
of the Company under this Agreement end.

       

      11.4          Termination by the Company for Other
Than Just Cause.  The Company may terminate this Agreement at
any time for other than Just Cause upon the following terms:

       

      
        	
                 
      

              	
                (a)

              	
                if
      the Company so terminates this Agreement at any time during the initial
      180 days of the Initial Term of this Agreement, the Company shall pay to
      the Employee all salaries, bonuses, vacation and other benefits, if any,
      earned or accrued up to the date of termination, but otherwise all
      obligations of the Company under this Agreement
  end;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                if
      the Company so terminates this Agreement at any time after the initial 180
      days of the Initial Term of this Agreement or during a renewal term, the
      Company shall pay to the Employee an amount equal to the Gross Salary then
      payable, (i) for a three month period as if the Agreement had not been so
      terminated if termination is during the Initial Term, and (ii) for a six
      month period as if the Agreement had not been so terminated if termination
      is during a renewal term;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                upon
      any such termination, all bonuses or other benefits earned or accrued up
      to the date of termination or expiry shall be paid by the Company, but
      except for such payments and the payments to be made pursuant to Sections
      11.4(a) or (b), as applicable, all obligations of the Company under this
      Agreement shall end upon such termination. Payments under Sections 11.4(a)
      or (b) shall be payable monthly subject to deductions in Section
      3.7.

              

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      11.5          Termination by the Employee for Good
Reason.  The Employee may terminate this Agreement at any time
upon the occurrence of any of the following events (each a "Good Reason"), if such
occurrence takes place without the express written consent of the
Employee:

       

      
        	
                 
      

              	
                (i)

              	
                a
      change in the Employee's title or position or a material diminution in the
      Employee's duties or the assignment to the Employee of duties which
      materially impairs the Employee's ability to function in his current
      capacity for the Company;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      relocation  of employee’s principal place of employment from the
      State College, PA area without Employee’s
  consent;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                upon
      a Change of Control.

              

      

       

      

       

      In the
event that the Employee terminates this Agreement for Good Reason, he shall be
entitled to the same payments and benefits as provided in Section 11.4 of this
Agreement as if the Company had terminated this Agreement at the time that the
Employee terminates this Agreement under this Section 11.5.

       

      "Change
of Control" means and includes each of the following: (i) the acquisition, in
one or more transactions, of beneficial ownership by any person or entity or any
group of persons or entities who constitute a group, of any securities of the
Company such that, as a result of such acquisition, such person, entity or group
beneficially owns, directly or indirectly, more than 70% of the Company's
outstanding voting securities; or (ii) the acquisition of substantially all of
the Company’s assets by a third party in an arms length transaction; or (iii)
the Company merges or consolidates with another other corporation, other than a
merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) at least 70% of the total voting power represented by the
voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation.

      

       

      11.6          Death.  Your
employment terminates on the date of your death and the Company will pay your
Gross Salary to the end of the month during which you died and other bonuses,
vacation and other benefits, if any, earned or accrued up to the date of
termination.

       

      11.7          Full and Final
Release.  In order to be eligible for the payments as set forth
in this Section 11 the Employee must (i) execute and deliver to the Company a
general release, in a form satisfactory to the Company, and (ii) be and remain
in full compliance with his obligations under this Agreement.

       

      11.8          Fair and
Reasonable.  The parties confirm that the provisions contained
in Sections 11.4 and 11.5 are fair and reasonable and that all such payments
shall be in full satisfaction of all claims which the Employee may otherwise
have at law against the Company including, or in equity by virtue of such
termination of employment.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      11.9          Return of
Property.  Upon the termination of the Employee's employment
for any reason whatsoever, the Employee shall at once deliver or cause to be
delivered to the Company all books, documents, effects, money, computer
equipment, computer storage media, securities or other property belonging to the
Company or for which the Company is liable to others, which are in the
possession, charge, control or custody of the Employee.

       

      11.10        Provisions Which Operate Following
Termination.  Notwithstanding any termination of this Agreement
for any reason whatsoever, provisions of this Agreement necessary to give
efficacy thereto shall continue in full force and effect.

       

      11.11        Board. Subject to the approval
of the Board of Directors of the Company upon the review and recommendation of
the relevant committee of the Board of Directors, the Employee shall be elected
to the Board of Directors of the Company, subject to the requirement that he
stand for re-election at the annual meeting of shareholders of the Company held
after his appointment. The Employee shall not be entitled to receive
compensation for his services on the Board of Directors of the
Company.

       

      Notwithstanding
the foregoing, the termination of Employee’s employment hereunder for any reason
shall automatically be deemed as Employee’s resignation (to extent Employee
serves in such capacity) from the Board of Directors of the Company and any
affiliates without any further action, except when the Board shall, in writing,
request a continuation of duty as a Director in its sole
discretion.

       

      PART
12

      GENERAL

       

      12.1          Benefit &
Binding.  This Agreement shall enure to the benefit of and be
binding upon the respective successors and permitted assigns of the parties
hereto.

       

      12.2          Amendments &
Waivers.  No amendment to this Agreement shall be valid or
binding unless set forth in writing and duly executed by all of the parties
hereto. No waiver of any breach of any provision of this Agreement shall be
effective or binding unless made in writing and signed by the party purporting
to give the same and, unless otherwise provided in the written waiver, shall be
limited to the specific breach waived.

       

      12.3          Time.  Time shall be
of the essence of this Agreement.

       

      12.4          Assignment.  Neither
this Agreement nor the rights and obligations hereunder shall be assignable by
either party without the consent of the other.

       

      12.5          Severability.  If
any provision of this Agreement is determined to be invalid or unenforceable in
whole or in part, such invalidity or unenforceability shall attach only to such
provision and all other provisions hereof shall continue in full force and
effect.

       

      12.6         
Attornment.  For the
purposes of all legal proceedings this Agreement shall be deemed to have been
performed in the State of Texas and the courts of Dallas shall have jurisdiction
to entertain any action arising under this Agreement.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      PART
13

      ACKNOWLEDGEMENT

       

      The
Employee acknowledges that:

       

      
        	
                 
      

              	
                (i)

              	
                the
      Employee has received a copy of this
Agreement;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      Employee has had sufficient time to review and consider this Agreement
      thoroughly;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                the
      Employee has read and understands the terms of this Agreement and his
      obligations under this Agreement;

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                the
      restriction placed upon the Employee by this Agreement are reasonably
      necessary to protect the Company's proprietary interests in the
      Confidential Information and the Developments and will not preclude the
      Employee from being gainfully employed in a suitable capacity following
      the termination of the Employee's employment, give the Employee's
      knowledge and experience;

              

      

       

      
        	
                 
      

              	
                (v)

              	
                the
      Employee has been given an opportunity to obtain independent legal advice,
      or such other advice as the Employee may desire, concerning the
      interpretation and effect of this Agreement and by signing this Agreement
      the Employee has either obtained advice or voluntarily waived the
      Employee's opportunity to receive the same;
and

              

      

       

      
        	
                 
      

              	
                (vi)

              	
                this
      Agreement is entered into voluntarily by the
  Employee.

              

      

       

      PART
14

      NOTICES

       

      Any
demand, notice or other communication (the "Notice") to be given in
connection with this Agreement shall be given in writing on a Business Day and
may be given by personal delivery or by transmittal by facsimile addressed to
the recipient as follows:

       

      
        	
                To
      the Company:

              	
                6510
      Abrams Road, Suite 300, Dallas, TX 75231

                 

                Attention:  CEO

                Facsimile:
      (1) 214-221-6510

              
	 
      	 
      
	
                To
      the Employee:

              	
                160
      Meadowview Drive, State College, PA 16801

                Facsimile:
      

              
	 
      	 
      

      

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      or such
other address or facsimile number as may be designated by notice by any party to
the other.  Any Notice given by personal delivery will be deemed to
have been given on the day of actual delivery and if transmitted by facsimile
before 3:00 pm on a Business Day, will be deemed to have been given on that
Business Day and if transmitted by facsimile after 3:00 pm on a Business Day,
will be deemed to have been given on the next Business Day after the date of
transmission.

       

      PART
15

      FURTHER
ASSURANCES

       

      The
parties shall from time to time execute and deliver all such further documents
and do all acts and things as the other party may reasonably require to
effectively carry out or better evidence or perfect the full intent and meaning
of this Agreement.

       

      PART
16

      FAX
SIGNATURES

       

      This
Agreement may be signed either by original signature or by facsimile
signature.

       

      PART
17

      COUNTERPARTS

       

      This
Agreement may be executed by the parties in one or more counterparts, each of
which when so executed and delivered shall be an original and such counterparts
shall together constitute one and the same instrument.

       

      IN WITNESS WHEREOF the parties
have duly executed this Agreement.

       

      
        	 
      	
                ZION
      OIL & GAS  INC.

                 

                 

                /s/ Richard Rinberg

                
                  
      Per:
      Richard Rinberg

                 

                 

              
	 
      	
                 

                /s/ William L. Ottaviani

                
                  
      William
      L. Ottaviani

              

      

      

       

      

      
        
          
          

        

        
          14Exhibit 10.1

    

    Change of
Control Letter Agreement

    

    [Date]

    

    [Name of
Executive]

    [Address
of Executive]

    [Address
of Executive]

     

    Dear
[Name of Executive]:

     

    It is
essential that RBC and the Board be able to rely upon you to continue in your
position if RBC becomes subject to a proposed or threatened Change in Control
(defined on Schedule 1). It is also critical that RBC and the Board be able to
receive and rely upon your advice concerning the best interests of RBC and its
stockholders without concern that you might be distracted by the personal
uncertainties and risks created by this type of proposal or threat. To assure
RBC that it will have your continued dedication and commitment and the
availability of your advice and counsel when facing the possibility, threat or
occurrence of an effort to take over control of RBC, and to induce you to remain
in the employ of RBC or its subsidiary, RBC agrees with you as
follows:

      

    1.           (a)           If
a Change in Control occurs and if within 24 months after a Change in Control,
your employment is either terminated by RBC without Cause (defined on Schedule
1) or by you for Good Reason (defined on Schedule 1), RBC will pay you on your
date of termination a single lump sum cash payment equal to the sum
of:

    

    The base
salary, unused vacation and any annual bonus applicable to a completed fiscal
year, which have not yet been paid to you through the date of
termination;

    

    A bonus
equal to your annual base salary applicable to you on your termination date,
multiplied by your maximum target bonus percentage then in effect and prorated
to account for the number of days you were employed by RBC during the Fiscal
Year in which you were terminated.

    

    A
severance payment equal to the sum of (i) 150% of your annual base salary, and
(ii) 150% of your Target Bonus in effect on such date.  “Target Bonus”
shall mean the amount payable under all annual incentive compensation plans of
RBC in which you participate, waiving any condition precedent to the payment to
you and assuming that the performance goals for the period were achieved at the
100% level.

    

    A
reimbursement for all documented expenses, up to $15,000, actually incurred by
you for professional outplacement services within 3 months after your
termination.

    

                (b)           For
the 18 month period following the termination of the your employment, RBC (or
the subsidiary that employed you) will continue to provide coverage and
participation to you at the same participation, coverage and benefit levels (or
will provide their equivalent) and pay the full cost of coverage and
participation under the employee health and other welfare plans maintained by
RBC and applicable to you on your termination date.

     

                (c)           Immediately
prior to a Change in Control, you will completely vest in all restricted stock
and stock options that have been granted to you. Approval of this Letter
Agreement by the RBC Board Compensation Committee shall be deemed approval of
the vesting of restricted stock and stock options as provided in the immediately
preceding sentence for all purposes under the RBC 2005 Long-Term Equity
Incentive Plan as amended. All stock options that have been granted to you will
additionally be exercisable by you for a period of 18 months following the
termination of the your employment.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

                (d)           All
amounts paid under this Letter Agreement shall be subject to applicable tax
withholding.

     

                (e)           In
the event that the vesting of restricted stock and stock options, together with
all other payments and the value of any benefit received or to be received by
you would result in all or a portion of such amount being subject to excise tax
under Section 4999 of the Internal Revenue Code of 1986, as amended, (the
“Code”) then you shall only be entitled to an amount that would result in no
portion of the amount being subject to excise tax under Section 4999 of the
Code (the “Excise Tax”). In the event of any reduction in the amount under this
Section 1(e), the amount in Section 1(a) shall be reduced.

     

                (f)        
   In exchange for and prior to receipt of these benefits you
agree to execute and deliver to RBC its general release agreement applicable to
severed employees.

     

    2.          You
agree that following a Change in Control and in the event your employment is
terminated by RBC without Cause or by you with Good Reason you will not for a
period of 12 months after your termination (i) engage in or carry on,
directly or indirectly, any competing business in any territory in which such
competing business is then engaged in by RBC, (ii) allow your name to be
used by any person engaged in any competing business, (iii) invest in,
directly or indirectly, any person engaged in any competing business, or
(iv) serve as an officer or director, employee, agent, associate or
consultant of any person engaged in a competing business (other than RBC or any
RBC subsidiary). Nothing herein shall prohibit you from investing in a
publicly-held entity if such investment (individually or as part of a group) is
limited to not more than five percent (5%) of the outstanding equity issue of
such entity.

    

    3.          You
agree that in the event a third party (a) begins a tender or exchange
offer;  (b) circulates a proxy to stockholders; or  (c)
takes other steps to effect a Change in Control, you will not voluntarily
terminate employment with RBC (or the subsidiary that employs you) unless you
provide at least 3 months prior written notice to the Chief Executive Officer of
RBC, and you will continue to render the services expected of your position, and
you will represent the best interests of the stockholders of RBC until the third
party has abandoned or terminated the efforts to effect a Change in Control or
until a Change in Control has occurred and your employment has been
terminated.

    

    4.          If
you die prior to the time all payments due to you under this Letter Agreement
have been made, then as soon as practicable after your death (but in no event
later than one month after), RBC shall pay in a lump sum all sums not paid to
you prior to your death. Payment shall be made to your designated beneficiary or
beneficiaries named under the 401(k) plan maintained by RBC on the date of your
death. If no such beneficiary is named, such sums shall be paid to your
estate.

     

    5.          This
Letter Agreement constitutes our entire agreement and supersedes all prior
discussions, understandings and agreements with respect to the severance
benefits which RBC has agreed to provide to you. This Letter Agreement shall be
governed by and construed in accordance with the laws of the State of
Connecticut applicable to contracts made and to be performed therein, without
regard to conflicts of laws principles.

     

    6.          This
Letter Agreement shall not be assignable, in whole or in part, by you. This
Letter Agreement shall be binding upon and inure to the benefit of RBC and its
successors and assigns and upon any person acquiring all or substantially all of
the assets and business of RBC by merger, consolidation, purchase of assets or
otherwise, and the successor shall be substituted for RBC with respect to all
RBC rights and obligations under this Letter Agreement.

     

    7.                      This
Letter Agreement is intended to be exempt from Code §409A as separation pay to
the greatest extent possible. Accordingly, all provisions herein shall be
construed and interpreted consistent with that intent, but that, to the extent
necessary RBC  shall amend any such provision pertaining to such
payment to comply with Code §409A and the regulations thereunder, in the least
restrictive manner necessary without any diminution in the value of the payments
to you.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    8.          This
Letter Agreement is effective on the Effective Date and shall terminate three
years thereafter. This Agreement shall automatically renew for successive
one-year terms unless RBC notifies Executive in writing at least 90 days prior
to the expiration date of the original or a successive term that it does not
wish to renew the Agreement for an additional term. This Letter Agreement is not
an employment contract between you and RBC or any of its subsidiaries. Your
employment is “at will” and may be terminated by you or RBC at any time for any
reason.

    

    If this
Letter Agreement accurately sets forth our agreement and understanding please
sign it where indicated below and return the executed letter to me. A separate
copy is enclosed for your records.

    

    Please
contact Tom King or Tom Williams with any specific questions.

    

    Thank
your for your loyalty, commitment and efforts!

     

    Sincerely,

     

    Michael
J. Hartnett

    President
& CEO

    

    Read and
agreed:

     

    
      
        
          
            	 
      
	
                    (Name)

                  

          

        

      

    

     

    Dated as
of _______________, ____ (“Effective Date”)

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    SCHEDULE
1

     

     “Cause” means (i) the failure
by you to use your best efforts to perform the material duties and
responsibilities of your position or to comply with any material policy or
directive RBC has in effect from time to time, provided you shall have received
notice of such failure and have failed to cure the same within thirty days of
such notice (ii) any act on your part which is harmful to the reputation,
financial condition, business or business relationships of RBC (iii) a material
breach of your fiduciary responsibilities to RBC , such as embezzlement or
misappropriation of RBC  funds, business opportunities or properties,
or to any customer, vendor, agent or employee of RBC; and (iv) your conviction
of, or guilty plea or nolo contendere plea to a felony or any crime involving
moral turpitude, fraud or misrepresentation.

     

     “Change in Control” is
as defined in the RBC 2005 Long-Term Equity Incentive Plan as
amended.

     

      “Good Reason” - for the
24 month period following a Change in Control shall mean, without your express
written consent, any of the following:

     

    A.
Demotion. The assignment of any of your duties or responsibilities that are a
reduction of, or are inconsistent with, your position, duties, responsibilities
or status immediately preceding the Change in Control;

    

    B.
Reporting. A change in your reporting responsibilities or titles in effect
immediately preceding the Change in Control resulting in a reduction of your
responsibilities or position;

    

    C.
Reduction. The reduction of your annual salary, projected or target annual bonus
(including any deferred portions), level of benefits (except for a reduction of
benefits uniformly applicable to all similarly situated executives), target
long-term incentives, stock options, restricted stock awards, projected
Supplemental Executive Retirement Plan benefits, or supplemental compensation in
effect immediately preceding the Change in Control; or

    

    D.
Location. The transfer of your office or designated place of work to a location
at least thirty-five (35) miles from your location at the Change in Control or
requiring a change in residence or a material increase in the amount of travel
normally required of you in connection with your employment.

     

    
      
         

      

      
        4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]