Document:

Exhibit 10.10

 

EXHIBIT 10.10  DAVID V. CREEL EMPLOYMENT AGREEMENT

DATED APRIL 28, 1998

 

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement is dated April 28, 1998 but is effective
as June 1, 1998 (the “Effective Date”), between GeoPetro Resources Company
(“Company”) and David V. Creel (“Employee”).

 

1.                                       Employee
has special skills and abilities and an extensive background in and knowledge
of the exploration aspect of the Company’s business and the oil and gas
industry.

 

2.                                       Company
desires assurance of the association and services of Employee in order to
retain his experience, skills, abilities, background, knowledge, relationships
and contacts and is therefore willing to engage his services on the terms and
conditions set forth below.

 

3.                                       Employee
desires to become employed by the Company and is willing to do so on the terms
and conditions set forth below.

 

NOW, THEREFORE, in consideration of the mutual promises and conditions
in this agreement, it is agreed as follows:

 

1. Employment. Company shall employ Employee
as Vice President of Exploration of the Company.

 

2. Duties and Authority. Until
the date of termination of employment hereunder, Company shall continue to
employ Employee as its Vice President of Exploration, with such duties and
obligations consistent with such position as are specified by the President of
the Company from time to time. Employee shall report to the President of the
Company.

 

3. Outside Activities. During
his employment, Employee shall devote his full energies, interest, abilities, and
productive time to the performance of this agreement and shall not, without
Company’s prior written consent, render to others services of any kind for
compensation, or engage in any other business activity that would materially
interfere with the performance of his duties under this agreement.

 

4. Covenant Not to Compete. During
the employment term, Employee shall not, directly or indirectly, whether as a
partner, employee, creditor, shareholder (other than as a shareholder owning
less than five percent (5%) of a publicly traded company), or otherwise,
promote, participate, or engage in any activity or other business competitive
with Company’s business.

 

5. Term. Subject to
earlier termination as provided in this agreement, Employee shall be employed
for a two-year term commencing on the Effective Date (the “Term”). Thereafter,
the Agreement shall renew automatically for a series of successive one
month periods at a salary to be negotiated; provided, however, that the
Agreement may be terminated by either party either (i) upon six
months’ notice prior to the end of the Term, in which case the Agreement shall
terminate upon the termination of the Term, or (ii) upon notice given on
or prior to the first day of any calendar month following the termination of the
Term, in which case the Agreement shall be terminated upon expiration of such
month.

 

6. Salary. Commencing on
the Effective Date, the Company shall pay a basic salary to Employee at the
rate of Ninety-Six Thousand Dollars ($96,000) per year, payable in equal
monthly installments (the “Basic Salary”) in accordance with the Company’s
standard payroll practices. The Employee agrees that such salary shall not be
increased during the term of this Agreement.

 

7.
Options. As a long term
incentive, Company shall grant to Employee non-qualified options (the “Options”)
to acquire One Hundred Thousand (100,000) shares of Common Stock. Such options
shall have an exercise price equal to Two Dollars ($2.00) per share of the
Common Stock. The Options shall vest on a cumulative basis at a rate of 20% per
annum with the first 20% vesting on the first anniversary of the Effective Date
and an additional 20% vesting on the four anniversaries thereafter (each “Vesting
Date”), provided that the Options shall not vest on the Vesting Dates if
Employee is not employed by the Company on such date. The terms of the Options
shall be specified in an Option Agreement between the Company and Employee.

 

 

8. Additional Benefits. During
the employment Term, Company shall furnish to Employee at the Company’s expense
a parking space at or near the Company’s offices. In addition the Company shall
pay one-half the actual costs incurred by Employee in moving his family’s
household effects to the San Francisco Bay Area. Employee shall be eligible for
three (3) weeks annual vacation. It is expressly agreed that Employee
shall be responsible for securing and paying for his own insurance, including
health, disability and life and any other type of insurance that Employee may desire.

 

9. Termination Prior to Expiration
of Term and Effects of Such Termination.

 

(a)                                  Notwithstanding
any other provision of this agreement, Company shall have the right to
terminate Employee’s employment under this agreement at any time prior to the
expiration of the Term for any of the following reasons:

 

(i)                                     For
“cause” upon the good faith determination by the Company’s President that “cause”
exists for the termination of the employment relationship. “Cause” shall mean
termination by action of Company’s President because of Employee’s (A) final
conviction of a felony or a misdemeanor involving moral turpitude (which,
through lapse of time or otherwise, is not subject to appeal); (B) willful
refusal without proper legal cause to perform Employee’s duties and
responsibilities; or (C) willfully engaging in conduct which Employee has
or should have reason to know may be materially injurious to Company. In
case of (C), such termination shall be effected by at least thirty
(30) days’ prior written notice thereof delivered by Company to Employee;
provided, however, that if within seven (7) days following the date of
such notice, Employee shall cease to engage in such conduct and shall use
Employee’s best efforts to perform his duties and responsibilities
hereunder, then the termination shall not be effective;

 

(ii)                                  For
any other reason whatsoever, with or without cause, in the sole discretion of
the President of the Company;

 

(iii)                               Upon
Employee’s death; or

 

(iv)                              Upon
Employee’s becoming incapacitated by accident, sickness, or other circumstance
which renders him mentally or physically incapable of performing at a level of
at least 80% the duties and services required of Employee.

 

The termination of Employee’s employment by Company prior to the
expiration of the Term shall constitute a “Termination for Cause” if made
pursuant to Section 9(a)(i); the effect of such termination is specified
in Section 9(c). The termination of Employee’s employment by Company prior
to the expiration of the Term shall constitute an “Involuntary Termination” if
made pursuant to Section 9(a)(ii); the effect of such termination is
specified in Section 9(d). The effect of the employment relationship being
terminated pursuant to Section 9(a)(iii) as a result of Employee’s
death is specified in Section 9(e). The effect of the employment
relationship being terminated pursuant to Section 9(a)(iv) as a
result of the Employee becoming incapacitated is specified in Section 9(f).

 

(b)                                 Notwithstanding
any other provisions of this agreement, Employee shall have the right to
terminate the employment relationship under this agreement at any time prior to
the expiration of the Term of employment upon a material breach by Company of
any material provision of this agreement which remains uncorrected for thirty
(30) days following written notice of such breach by Employee to Company.
The termination of Employee’s employment by Employee prior to the expiration of
the Term shall constitute an “Involuntary Termination” if made pursuant to Section 9(b);
the effect of such termination is specified in Section 9(d).

 

(c)                                  If
Employee’s employment hereunder shall be terminated by Company for Cause prior
to expiration of the Term, Employee shall be entitled to receive his pro rata
Basic Salary through the date of termination. Employee may, at his option,
exercise any vested stock options within 30 days of termination, and
thereafter such options shall be terminated. All unvested options shall be
forfeited.

 

 

(d)                                 Upon
an Involuntary Termination of the employment relationship by either Company or
Employee prior to expiration of the Term, Employee shall be entitled to receive
Employee’s Basic Salary for the remainder of the Term paid out over the
remainder of the Term consistent with the Company’s standard payroll practices
for currently employed employees. In addition, all of Employee’s unvested
options shall become immediately vested and exercisable. Employee’s rights
under this section 9(d) are Employee’s sole and exclusive rights
against Company, or its affiliates, and Company’s sole and exclusive liability
to Employee under this agreement, in contract, tort or otherwise, for any
Involuntary Termination of the employment relationship. Employee covenants not
to sue or lodge any claim, demand or cause of action against Company for any
sums for Involuntary Termination other than those sums specified in this Section 9.
If Employee breaches this covenant, Company shall be entitled to recover from
Employee all sums expended by Company (including costs and attorneys’ fees) in
connection with such suit, claim, demand or cause of action.

 

(e)                                  Upon
termination of the employment relationship as a result of Employee’s death,
Employee’s heirs, administrators, or legatees shall be entitled to Employee’s
pro rata Basic Salary through the date of such termination. All unvested
options shall be forfeited, and vested options may be exercised by the
Employee’s representative at any time within 180 days of Employee’s death

 

(f)                                    Upon
termination of the employment relationship as a result of Employee’s
incapacity, Employee shall be entitled to his pro rata Basic Salary through the
date of termination. All unvested options shall be forfeited, and vested
options may be exercised by the Employee’s representative at any time
within 180 days of Employee’s death.

 

(g)                                 Termination
of the employment relationship does not terminate those obligations imposed by
this agreement which are continuing obligations.

 

10.
Arbitration. Any controversy or
claim arising out of or relating to this agreement, or breach of this
agreement, shall be settled by arbitration in accordance with the Commercial
Arbitration Rules of the American Arbitration Association, and judgment on
the award rendered by the arbitrators may be entered in any court having
jurisdiction. There shall be a single arbitrator chosen by mutual agreement of
the parties, or in the absence of an agreement, by a judge in the Superior
Court of San Francisco County. Each party shall pay all fees and expenses of
his own attorneys, and the expenses of his witnesses and all other expenses
connected with presenting his case. Other costs of the arbitration, including
the cost of any record or transcripts of the arbitration, administration fees,
the fee of the arbitrator, and all other fees and costs, shall be borne equally
by the parties.

 

11.
Choice of Law. The formation,
construction, and performance of this agreement shall be construed in
accordance with the laws of California.

 

12.
Notices. Any notice to Company
required or permitted under this agreement shall be given in writing to
Company, either by personal service or by registered or certified mail, postage
prepaid, at its then principal place of business. Any such notice to Employee
shall be given in like manner and, if mailed, shall be addressed to Employer at
his home address then shown in Company’s files. For the purpose of determining
compliance with any time limit on this agreement, a notice shall be deemed to
have been duly given (a) on the date of service, if served personally on
the party to whom notice is to be given, or (b) on the second business day
after mailing, if mailed to the party to whom the notice is to be given in the
manner provided in this section.

 

13.
Severability. If any provision of
this agreement is held invalid or unenforceable, the remainder of this agreement
shall nevertheless remain in full force and effect. If any provision is held
invalid or unenforceable with respect to particular circumstances, it shall
nevertheless remain in full force and effect in all other circumstances.

 

14.                                 Executed
by the parties as of the day and year first above written.

 

 

	
  GEOPETRO RESOURCES COMPANY

  
	
   

  
	
  By:

  	
  “S. J. Doshi”

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
  President

  	
  David V. Creel

  

 

 

FIRST AMENDMENT

TO

EMPLOYMENT AGREEMENT

 

This FIRST AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”) is made
as of this 15th day of June 2000, by and between GeoPetro
Resources Company, a California corporation (“Company”) and David V. Creel (“Employee”).

 

RECITALS

 

A.                                   Company
and Employee are parties to that certain Employment Agreement dated April 28,
1998 (the “Original Agreement”), pursuant to which Employee agreed to provide
certain services to Company and Company agreed to employ Employee as Vice
President of Exploration of Company.

 

B.                                     The
term of the Original Agreement was for two years, from June 1, 1998
through May 31, 2000, continuing on a month-to-month basis thereafter.

 

C.                                     The
parties hereto now wish to amend the Original Agreement to extend the term
thereof for a definite term and to reflect such other changes as indicated
herein.

 

NOW, THEREFORE, Company and Employee hereby agree as follows:

 

1. Effective Date. The
effective date of this Amendment shall be June 1, 2000 (the “Amendment
Effective Date”).

 

2. Amendment of Original Agreement. The
parties hereby amend the Original Agreement as follows:

 

(a)  Term. Section 5 of the Original Agreement shall be
deleted and replaced in full with the following:

 

5. Term.Subject to earlier termination as provided in this Agreement,
Employee shall be employed for a three-year term commencing on the Amendment Effective
Date (the “Term”).

 

(b)  Salary. Section 6
of the Original Agreement shall be deleted and replaced in full with the
following:

 

6. Salary.Commencing on the Amendment Effective Date, Company shall pay
a base salary to Employee (the “Base Salary”) at the rate of One Hundred Eight
Thousand Dollars ($108,000) per year, payable in equal monthly installments of
Nine Thousand Dollars ($9,000) in accordance with Company’s standard payroll
practices. Employee agrees that the Base Salary shall not be increased during
the Term.

 

(c)  Additional Benefits. The
first two (2) sentences of Section 8 of the Original Agreement are
hereby deleted.

 

(d)  Termination Prior to
Expiration of Term. Section 9 of the Original Agreement shall
be deleted and replaced in full with the following:

 

9. Termination Prior to Expiration of Term and Effects of Such
Termination.

 

(a)                                  Notwithstanding
any other provision of this Agreement, Company shall have the right to
terminate Employee’s employment under this Agreement at any time prior to the
expiration of the Term for any of the following reasons:

 

(i)                                     For
Cause (as hereinafter defined) upon the good faith determination by Company’s
President that Cause exists for the termination of the employment relationship.
For purposes of this Agreement, termination for “Cause” shall mean termination
by action of Company’s President because of 

 

 

Employee’s (A) final conviction of a felony or a misdemeanor
involving moral turpitude (which, through lapse of time or otherwise, is not
subject to appeal); (B) willful refusal without proper legal cause to perform Employee’s
duties and responsibilities; or (C) willfully engaging in conduct which
Employee has or should have reason to know may be materially injurious to
Company. In case of (C), such termination shall be effected by at least thirty
(30) days’ prior written notice thereof delivered by Company to Employee;
provided, however, that if within seven (7) days following the date of
such notice, Employee shall cease to engage in such conduct and shall use
Employee’s best efforts to perform his duties and responsibilities
hereunder, then the termination shall not be effective;

 

(ii)                                  Without
Cause, in the sole discretion of the President of Company;

 

(iii)                               Upon
Employee’s death; or

 

(iv)                              Upon
Employee’s becoming incapacitated by accident, sickness, or other circumstance
which renders him mentally or physically incapable of performing at a level of
at least eighty percent (80%) the duties and services required of Employee.

 

(b)                                 Notwithstanding
any other provisions of this Agreement, Employee shall have the right to
terminate the employment relationship under this Agreement at any time prior to
the expiration of the Term upon a material breach by Company of any material
provision of this Agreement which remains uncorrected for thirty (30) days
following written notice of such breach by Employee to Company.

 

(c)                                  If
Employee’s employment hereunder shall be terminated by Company for Cause as
described in Section 9(a)(i)) prior to expiration of the Term, Employee
shall be entitled to receive the Base Salary earned by Employee through the
date of termination. Employee may, at his option, exercise any vested stock
options within thirty (30) days of termination, and thereafter such
options shall be terminated. All unvested options shall be forfeited.

 

(d)                                 If
Employee’s employment hereunder shall be terminated by Company without Cause
(as described in Section 9(a)(ii)) prior to expiration of the Term,
Employee shall be entitled to receive payments equal to the lesser of (i) three
(3) months’ Base Salary, or (ii) Base Salary through the remainder of
the Term, either of which shall be payable in accordance with Company’s
standard payroll practices for currently employed employees. In addition, all
of Employee’s unvested options shall become immediately vested and exercisable.

 

(e)                                  If
Employee’s employment hereunder shall be terminated as a result of Employee’s
death, Employee’s heirs, administrators, or legatees shall be entitled to the
Base Salary through the date of such termination. All unvested options shall be
forfeited, and vested options may be exercised by the Employee’s
representative at any time within one hundred eighty (180) days of
Employee’s death, and thereafter such options shall be terminated.

 

(f)                                    If
Employee’s employment hereunder shall be terminated as a result of Employee’s
incapacity (as described in Section 9(a)(iv)), Employee shall be entitled
to the Base Salary through the date of termination. All unvested options shall
be forfeited, and vested options may be exercised by Employee, or the
Employee’s representative, if applicable, at any time within one hundred eighty
(180) days of the date of termination, and thereafter such options shall
be terminated.

 

(g)                                 If
Employee’s employment hereunder shall be terminated by Employee due to a
material breach by Company (as described in Section 9(b)) prior to the
expiration of the Term, Employee shall be entitled to receive Employee’s Base
Salary for the remainder of the Term, paid out over the remainder of the Term
in accordance with Company’s standard payroll practices for currently employed
employees. In addition, all of Employee’s unvested options shall become
immediately vested and exercisable.

 

(h)                                 Employee’s
rights under this Section 9 are Employee’s sole and exclusive rights
against Company, or its affiliates, and Company’s sole and exclusive liability
to Employee under this Agreement, in contract, tort, or otherwise, for the
early termination of the employment relationship. Employee covenants not 

 

 

to sue or lodge any claim, demand or cause of action against Company
for any sums other than those sums specified in this Section 9. If
Employee breaches this covenant, Company shall be entitled to recover from
Employee all sums expended by Company (including costs and attorneys’ fees) in
connection with such suit, claim, demand or cause of action.

 

(i)                                     Termination
of the employment relationship does not terminate those obligations imposed by
this Agreement which are continuing obligations.

 

3. Options. As a long term incentive to
Employee, and in addition to those Options granted under the Original
Agreement, Company shall grant to Employee non-qualified options (the “Additional
Options”) to acquire One Hundred Thousand (100,000) shares of Company’s common
stock (the “Common Stock”). The Additional Options shall have an exercise price
equal to Two Dollars ($2.00) per share of Common Stock. The Additional Options
shall vest at a rate of twenty percent (20%) per year with the first twenty
percent (20%) vesting on the first anniversary of the Amendment Effective Date
and an additional twenty percent (20%) vesting on each of the four (4) anniversaries
thereafter (each anniversary being a “Vesting Date”); provided that the
Additional Options shall not vest on the Vesting Dates if Employee is not
employed by Company on such Vesting Dates. The terms of the Additional Options
shall be specified in an Option Agreement between Company and Employee.

 

4. Integration. To the
extent of any inconsistencies between the terms and conditions of the Original
Agreement and those of this Amendment, this Amendment shall govern. Except to
the extent that the provisions of the Original Agreement are so superseded,
they shall remain in full force and effect.

 

5. Counterparts. This Amendment
may be executed in one or more counterparts, each of which shall be an
original, but all of which together shall constitute one instrument.

 

IN WITNESS WHEREOF, Company and Employee have executed this Amendment
as of the date first above written.

 

	
  GEOPETRO RESOURCES COMPANY

  
	
  By:

  	
  Stuart Doshi

  	
  DAVID V. CREEL

  
	
  Title:

  	
  President

  	
   

  

 

 

SECOND AMENDMENT

TO

EMPLOYMENT AGREEMENT

 

This
SECOND AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”) is made as of this
12th day of May 2003, by and between GeoPetro Resources
Company, a California corporation (“Company”) and David V. Creel (“Employee”).

 

RECITALS

 

A.                                   Company and Employee are parties to that
certain Employment Agreement dated April 28, 1998 (the “Original Agreement”)
and to that certain First Amendment to Employment Agreement dated June 15,
2000, pursuant to which Employee agreed to provide certain services to Company
and Company agreed to employ Employee as its Vice President of Exploration of
Company.

 

B.                                     The term of the Original Agreement was for
two years, from June 1, 1998 through June 1, 2000, and the term of
the First Amendment to Employment Agreement is for three years, from June 1,
2000 through June 1, 2003.

 

C.                                     The parties hereto now wish to amend the
Original Agreement and the First Amendment to Employment Agreement to extend
the term thereof for a definite term and to reflect such other changes as
indicated herein.

 

NOW,
THEREFORE, Company and Employee hereby agree as follows:

 

1. Effective Date. The effective date
of this Amendment shall be June 1, 2003 (the “Amendment Effective Date”).

 

2. Amendment of Original Agreement and
First Amendment to Employment Agreement. The parties hereby amend the
Original Agreement and First Amendment to Employment Agreement as follows:

 

(a)                                  Term. Section 5 of the First
Amendment to Employment Agreement shall be deleted and replaced in full with
the following:

 

5.                           Term. The terms of Employee’s employment under this Agreement shall
commence as of June 1, 2003 (the “Effective Date”) and shall continue
until three (3) years after the Effective Date (the “Termination Date”),
unless earlier terminated in accordance with Section 9 hereafter. The
period commencing as of the Effective Date and ending on the Termination Date
is hereinafter referred to as the “Term”.

 

(b)                                 Salary. Section 6 of the First Amendment to Employment Agreement shall
be deleted and replaced in full with the following:

 

6.                           Salary. For all the
services rendered by Employee hereunder, the Company shall pay Employee a base
salary (the “Base Salary”) at the annual rate of 

 

 

$120,000. Employee’s Base Salary shall be
payable in installments at such times as the Company customarily pays its other
employees.

 

 3.                                    Integration. To the extent of any inconsistencies between the terms and conditions
of the Original Agreement, the First Amendment to Employment Agreement and
those of this Amendment, this Amendment shall govern. Except to the extent that
the provisions of the Original Agreement or the First Amendment to Employment
Agreement are so superseded, they shall remain in full force and effect.

 

4.                                       Counterparts. This Amendment may be executed in one
or more counterparts, each of which shall be an original, but all of which
together shall constitute one instrument.

 

IN
WITNESS WHEREOF, Company and Employee have executed this Amendment as of the
date first above written.

 

GEOPETRO RESOURCES COMPANY

 

 

	
          /s/
  Stuart J. Doshi

  	
   

  	
  /s/
  David V. Creel

  	
   

  
	
  By:

  	
  Stuart
  J. Doshi

  	
  David
  V. Creel

  
	
   

  	
  President & CEO

  	
   

  
					

 

 

THIRD AMENDMENT

TO

EMPLOYMENT AGREEMENT

 

This
THIRD AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”) is made as of this 1st
day of January 2005, by and between GeoPetro Resources Company, a
California corporation (“Company”) and David V. Creel (“Employee”).

 

RECITALS

 

A.                      Company and Employee are parties to that
certain Employment Agreement dated April 28, 1998 (the “Original Agreement”),
to that certain First Amendment to Employment Agreement dated June 15,
2000, and to that certain Second Amendment to Employment Agreement dated May 12,
2003 pursuant to which Employee agreed to provide certain services to Company
and Company agreed to employ Employee as its Vice President of Exploration of
Company.

 

B.                                     The term of the Original Agreement was for
two years, from June 1, 1998 through June 1, 2000, the term of the
First Amendment to Employment Agreement was for three years, from June 1,
2000 through June 1, 2003 and the term of the Second Amendment to
Employment Agreement was for three years, from June 1, 2003 through June 1,
2006.

 

C.                                     The parties hereto now wish to amend the
Original Agreement, the First Amendment to Employment Agreement and the Second
Amendment to Employment Agreement to extend the term thereof for a definite
term and to reflect such other changes as indicated herein.

 

NOW,
THEREFORE, Company and Employee hereby agree as follows:

 

1.               Effective
Date. The effective date of
this Amendment shall be January 1, 2005 (the “Amendment Effective Date”).

 

2.               Amendment
of Original Agreement, First Amendment to Employment Agreement and Second
Amendment to Employment Agreement. The parties hereby amend the Original Agreement, First Amendment to
Employment Agreement and Second Amendment to Employment Agreement as follows:

 

(a)                                  Term. Section 2(a) of the Second Amendment to Employment
Agreement shall be deleted and replaced in full with the following:

 

5.                           Term. The terms of Employee’s employment under this Agreement shall
commence as of January 1, 2005 (the “Effective Date”) and shall continue
until June 1, 2009 (the “Termination Date”), unless earlier terminated in
accordance with Section 9 hereafter. The period commencing as of the
Effective Date and ending on the Termination Date is hereinafter referred to as
the “Term”.

 

(b)                                 Salary. Section 2(b) of the Second Amendment to Employment
Agreement shall be deleted and replaced in full with the following:

 

 

6.                           Salary. For all the
services rendered by Employee hereunder, the Company shall pay Employee a base
salary (the “Base Salary”) at the annual rate of $150,000. Employee’s Base
Salary shall be payable in installments at such times as the Company
customarily pays its other employees.

 

 3.                                    Integration. To the extent of any inconsistencies between the terms and conditions
of the Original Agreement, the First Amendment to Employment Agreement, the
Second Amendment to Employment Agreement and those of this Amendment, this
Amendment shall govern. Except to the extent that the provisions of the
Original Agreement or the First Amendment to Employment Agreement or the Second
Amendment to Employment Agreement are so superseded, they shall remain in full
force and effect.

 

4.                                       Counterparts. This Amendment may be executed in one
or more counterparts, each of which shall be an original, but all of which
together shall constitute one instrument.

 

IN
WITNESS WHEREOF, Company and Employee have executed this Amendment as of the
date first above written.

 

GEOPETRO RESOURCES COMPANY

 

 

	
          /s/
  Stuart J. Doshi

  	
   

  	
  /s/
  David V. Creel

  	
   

  
	
  By:

  	
  Stuart
  J. Doshi

  	
  David
  V. Creel

  
	
   

  	
  President & CEOExhibit 10.11

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(the “Agreement”) is entered into effective as of June 19, 2000, by and
between Geo Petro Resources Company, a California corporation located at One
Maritime Plaza, Suite 400, San Francisco, California 94111, together with its
successors and assigns permitted under this Agreement (hereinafter the “Company”)
and J. Chris Steinhauser, an individual and resident of the State of California
(hereinafter “Employee”) located at 26 Moonlight, Irvine, California 92612.

 

WHEREAS, Employee
desires to become employed by the Company on a full-time basis as its Chief
Financial Officer and Vice President of Finance; and

 

WHEREAS, the Company
and Employee desire to enter into an agreement to provide for Employee’s
employment by the Company, upon the terms and conditions set forth herein:

 

NOW, THEREFORE, in
consideration of the mutual covenants herein contained and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

 

1. Employment. The
Company agrees to employ Employee, and Employee accepts such employment and
agrees to perform his duties and responsibilities in accordance with the terms
and conditions hereinafter set forth.

 

1.1 
Employment Term. The
terms of Employee’s employment under this Agreement shall commence as of
June 19, 2000 (the “Effective Date”) and shall continue until two
(2) years after the Effective Date (the “Termination Date”), unless
earlier terminated in accordance with Section 3 hereafter. The period
commencing as of the Effective Date and ending on the Termination Date is
hereinafter referred to as the “Employment Term”.

 

1.2 
Duties and Responsibilities. During
the Employment Term, Employee shall serve as Chief Financial Officer of the
Company or shall serve in such other capacity as appointed by the President of
the Company (the “President”), and shall report to the President. During the
Employment Term, Employee agrees to perform all employment duties and responsibilities
that shall be assigned and required by the President or such other duties and
responsibilities in such other capacity as the President shall assign to him
from time to time.

 

1.3 
Outside Activities. During
his employment, Employee shall devote his full energies, interest, abilities,
and productive time to the performance of this Agreement and shall not, without
the Company’s prior written consent, render to others services of any kind for
compensation, or engage in any other activity (with or without compensation)
that would interfere with the performance of his duties under this Agreement.

 

1.4 
Covenant Not to Compete. During
the Employment Term, Employee shall not, directly or indirectly, whether as a
partner, employee, creditor, shareholder (other than as a shareholder owning
less than five percent (5%) of a publicly traded company), or otherwise,
promote, participate, or engage in any activity or other business that directly
competes with the Company’s business.

 

1.5 
Base Salary. For
all the services rendered by Employee hereunder, the Company shall pay Employee
a base salary (the “Base Salary”) at the annual rate of $108,000. Employee’s
Base Salary shall be payable in installments at such times as the Company
customarily pays its other employees.

 

1.6 
Bonus. At the
Effective Date, Employee shall receive a cash bonus of $10,000. Employee shall
receive an additional $10,000 bonus upon the successful completion of the first
merger between the Company and another entity, and an additional $10,000 bonus
upon the effectiveness of the Company’s registration statement under the
Securities Exchange Act of 1934 or the Securities Act of 1933. Employee also
may be eligible to receive a discretionary bonus each year during the
Employment Term (“Annual Bonus”), which, if 

 

 

any, shall be earned based on criteria established by the President
from time to time and shall be paid in the sole discretion of the President
either in cash or equity in the Company. Employee’s Annual Bonus, if any, shall
be paid to him in accordance with the Company’s generally payroll practices
with regard to bonuses of such type.

 

1.7 
Warrant Compensation. Upon
execution of this Agreement, the Company shall issue 250,000 warrants, subject
to vesting requirements as set forth, to Employee entitling Employee to
purchase non-callable no par voting common stock of the Company. Each warrant
shall entitle the holder thereof to purchase one share of common stock as
follows:

 

	
  Term

  	
   

  	
  Exercise

  Price

  per Share

  	
   

  	
  # of Shares

  Underlying

  Warrants

  	
   

  	
  Vesting*

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  2.00

  	
   

  	
  30,000

  	
   

  	
  Immediately

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  2.00

  	
   

  	
  30,000

  	
   

  	
  One Year

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  2.00

  	
   

  	
  30,000

  	
   

  	
  Two Years

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  2.00

  	
   

  	
  30,000

  	
   

  	
  Three Years

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  2.00

  	
   

  	
  30,000

  	
   

  	
  Four Years

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  150,000

  	
   

  	
   

  	
   

  

 

	
  Term

  	
   

  	
  Exercise

  Price

  per Share

  	
   

  	
  # of Shares

  Underlying

  Warrants

  	
   

  	
  Vesting*

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  3.00

  	
   

  	
  6,666

  	
   

  	
  Immediately

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  3.00

  	
   

  	
  6,666

  	
   

  	
  One Year

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  3.00

  	
   

  	
  6,666

  	
   

  	
  Two Years

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  3.00

  	
   

  	
  6,666

  	
   

  	
  Three Years

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  3.00

  	
   

  	
  6,669

  	
   

  	
  Four Years

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  33,333

  	
   

  	
   

  	
   

  

 

	
  Term

  	
   

  	
  Exercise

  Price

  per Share

  	
   

  	
  # of Shares

  Underlying

  Warrants

  	
   

  	
  Vesting*

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  4.00

  	
   

  	
  6,666

  	
   

  	
  Immediately

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  4.00

  	
   

  	
  6,666

  	
   

  	
  One Year

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  4.00

  	
   

  	
  6,666

  	
   

  	
  Two Years

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  4.00

  	
   

  	
  6,666

  	
   

  	
  Three Years

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  4.00

  	
   

  	
  6,669

  	
   

  	
  Four Years

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  33,333

  	
   

  	
   

  	
   

  

 

*              Length of time
after the effective date.

 

 

	
  Term

  	
   

  	
  Exercise

  Price

  per Share

  	
   

  	
  # of Shares

  Underlying

  Warrants

  	
   

  	
  Vesting*

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  5.00

  	
   

  	
  5,555

  	
   

  	
  Immediately

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  5.00

  	
   

  	
  5,555

  	
   

  	
  One Year

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  5.00

  	
   

  	
  5,555

  	
   

  	
  Two Years

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  5.00

  	
   

  	
  5,555

  	
   

  	
  Three Years

  	
   

  
	
  5 years

  	
   

  	
  $

  	
  5.00

  	
   

  	
  5,559

  	
   

  	
  Four Years

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  33,334

  	
   

  	
   

  	
   

  
	
  TOTAL WARRANTS

  	
   

  	
   

  	
   

  	
  250,000

  	
   

  	
   

  	
   

  

 

*              Length of time
after the effective date.

 

Subject to the vesting provisions above, the warrants may be exercised
from the Effective Date until 11:59 p.m. (San Francisco time) on the date
that is five years after the date of this Agreement. Each warrant not exercised
on or before the expiration date shall expire. The no par voting common shares
issued pursuant to the warrant exercises shall be identical in all respects to
the currently outstanding no par common of the Company. The Company shall
include the shares of common stock reserved for issuance under the above-described
warrants in any registration statement it files during the Employment Term,
subject to any limitations imposed by an underwriter on the amount of such
shares that can be included in such registration, and Employee shall be subject
to all lock-ups (restricting his resale rights) imposed by the underwriter on
the Company’s other management shareholders.

 

Employee shall also be entitled to participate annually in any
incentive stock option plan (“Plan”) adopted by the Company and in effect
during the year(s) Employee is employed by the Company. Compensation received
as a result of participation in a Plan adopted by the Company shall be referred
to as the “Incentive Compensation.” Incentive Compensation shall be determined
at the sole discretion of the President.

 

1.8 
Benefit Coverages. During
the Employment Term, Employee shall be entitled to participate in all employee
pension and welfare (medical and dental) benefit plans and programs made
available to the Company’s employees generally, as such plans or programs may
be in effect from time to time (the “Benefit Coverages”). Employee shall be
entitled to three weeks paid vacation per year. In addition, Employee shall be
entitled to holidays and sick days in accordance with the Company’s policies
and procedures.

 

2. Indemnification;
Insurance. The Company shall indemnify Employee to the fullest
extent permitted under the Company’s Articles of Incorporation and Bylaws and
allowed under applicable law. Employee shall be covered by the Company’s
officer and director liability insurance policy in effect at the time of any
claim. The Company agrees to maintain an officer and director liability
insurance policy in effect during the term of this Agreement which provides an
aggregate limit of at least $3,000,000 and a deductible of not more than
$100,000.

 

3. Termination. The
Employment Term shall terminate upon the occurrence of any one of the following
events:

 

3.1 
Disability. The
Employment Term shall terminate if: (1) Employee is unable to perform the
essential functions of his job including any of his duties and responsibilities
by reason of illness, injury or incapacity for three (3) consecutive
months, or for more than six (6) months in the aggregate during any period
of eighteen (18) calendar months; and (2) the Company is unable to
reasonably accommodate the Employee’s disability. Employee agrees, in the event
of a dispute concerning any disability, to submit to a physical examination by
a licensed physician and/or other professional evaluator(s) selected by the
Company. If the Employment Term is terminated as a result of disability,
Employee shall be entitled to the continued right to exercise any stock
warrants granted to Employee hereunder which have vested as of the date of
termination, but all unvested warrants shall be terminated and canceled. For
avoidance of doubt, Employee acknowledges that he shall not be entitled to
receive any Base Salary or portion of an Annual Bonus while he 

 

 

is unable to perform his job duties (other than accrued sick leave and
vacation) during such period of time prior to a determination of whether or not
Employee is disabled.

 

3.2 
Death. The
Employment Term shall terminate upon Employee’s death. In such event, the
Company shall pay to Employee’s executors, legal representatives, or administrators,
as applicable, an amount equal to the installment of Employee’s Base Salary
through the date of Employee’s death. In addition, Employee’s estate shall be
entitled to: (i) any other amounts earned, accrued or owing but not yet
paid under Section 1.8 above; and (ii) the continued right to
exercise any vested stock warrant granted to Employee hereunder for the
remaining term of the warrant, however, all unvested warrants as of the date of
death shall be terminated and canceled.

 

The Company shall have no liability or obligation under this Agreement
to Employee’s executors, legal representatives, administrators, heirs or
assigns, or any other person claims under or through Employee except as
specifically provided in this Agreement.

 

3.3 
Cause. The
Company may terminate the Employment Term at any time for “cause.” Upon such
termination, all payments to the Employee required by this Agreement shall
immediately cease, except for unpaid Base Salary to the extent already accrued
and benefits accrued, earned, or owing but not yet paid under Section 1.8
above. For purposes of this Agreement, the term “cause” shall be: (a) any
felonious conduct by Employee; (b) fraud, dishonesty or similar conduct by
Employee in connection with the Company; (c) any embezzlement or
misappropriation of funds or property of Company by Employee; (d) a
material breach by Employee of the terms of his employment (which for purposes
of this Agreement shall include, without limitation, Executive’s engaging in
any transaction that represents, directly or indirectly, self-dealing with the
Company or any of its affiliates that has not been approved by the President,
as well as Employee’s failure to perform assigned duties as required under this
Agreement), if in any such case such material breach remains uncured after
15 days (or the minimum number of days required to cure such breach if
greater than 15) have elapsed following the date that the Company gave
Executive written notice of that breach. In the event that Employee is able to
cure, this Agreement shall continue in full force and effect. In the event of
for “cause” termination all warrants issued by the Company to Employee which
are unvested as of the date of termination shall be terminated and canceled;
provided, however, Employee shall retain all warrants which are vested as of
such date. Upon Employee’s termination “for cause,” Employee shall only be
entitled to receive: (i) his Base Salary through the date the termination
occurs; and (ii) any benefits earned, accrued or owing but not yet paid
under Section 1.8 above, but Employee shall not be entitled to any portion
of an Annual Bonus for the year of termination.

 

3.4 
Severance. Company
shall have the right to terminate Employee “without cause” upon the payment of
the “Severance Benefits.” Severance Benefits shall mean, for purposes of this
Agreement, the payment of the following:

 

(a)           cash payments equal
to the lesser of (i) three months Base Salary or (ii) Base Salary
through the remainder of the Employment Term, payable at such times as the
Company’s customary payroll policy;

 

(b)           in the event of
termination “without cause,” Employee may retain all warrants issued pursuant
to this Agreement, whether or not vested as of such date.

 

4. Survivorship. The
respective rights and obligations of the parties as provided for in this
Agreement shall survive any termination of the Employee’s employment to the
extent necessary to preserve such rights and obligations.

 

5. Other
Provisions.

 

(a)           The Company agrees
to grant time off for and reimburse Employee for attending up to 40 hours
of continuing education classes per year. Employee agrees that such continuing
education shall be SEC and financial reporting related.

 

 

(b)           The Company shall
reimburse Employee for 50% of actual and reasonable cost of moving household
effects (excluding costs relating to the sale or subletting of a residence) to
the San Francisco Bay Area, and for the actual and reasonable cost of two house-hunting
trips to the San Francisco Bay Area.

 

6. Notices. Any
notice required to be given hereunder shall be delivered personally or shall be
sent by certified United States mail, postage prepaid, return receipt
requested, by overnight courier, or by facsimile, to the respective parties at
the addresses set forth in this Agreement.

 

7.
Employee’s
Representations. Employee hereby represents and warrants to the
Company that he (a) is not now under any contractual or statutory
obligation that is materially inconsistent or in conflict with this Agreement
or that would prevent, limit, or impair Employee’s performance of his
obligations under this Agreement; (b) has been represented by legal
counsel in preparing, negotiating, executing, and delivering this Agreement;
and (c) fully understands its terms and provisions.

 

8. Contents of
Agreement; Amendment and Assignment.

 

(a)           This Agreement sets
forth the entire understanding between the parties hereto with respect to the
subject matter hereof and cannot be changed, modified, extended or terminated
except upon written amendment approved by the President and executed on its
behalf by a duly authorized officer.

 

(b)           All of the terms and
provisions of this Agreement shall be binding upon and inure to the benefit of
and be enforceable by the respective heirs, executors, administrators, legal
representatives, successors and assigns of the parties hereto, except that the
duties and responsibilities of Employee hereunder are of a personal nature and
shall not be assignable or delegable in whole or in part by Employee.

 

9. Severability.
If any provision of this Agreement or applicable thereof to
anyone or under any circumstances is adjudicated to be invalid or unenforceable
in any jurisdiction, such invalidity or unenforceability shall not affect any
other provision or application of this Agreement which can be given effect
without the invalid or unenforceable provision or application and shall not
invalidate or render unenforceable such provision or application in any other
jurisdiction. If any provision is held void, invalid or unenforceable with
respect to particular circumstances, it shall nevertheless remain in full force
and effect in all other circumstances.

 

10. No Waiver. No
delay or omission by a party in exercising any right, remedy or power hereunder
or existing at law or in equity shall be construed as a waiver thereof, and any
such right, remedy or power may be exercised by such party from time to time
and as often as may be deemed expedient or necessary by such party in its sole
discretion.

 

11. Miscellaneous.
All section headings used in this Agreement are for convenience
only. This Agreement may be executed in counterparts, each of which is an
original. It shall not be necessary in making proof of this Agreement or any
counterpart hereof to produce or account for any of the other counterparts.

 

12. Governing
Law. This Agreement shall be governed by and interpreted under
the law of the State of California without reference to any choice or conflict
of laws provisions.

 

13.
Entire Agreement. This
Agreement constitutes the final, complete, and exclusive embodiment of the
entire agreement and understanding between the parties related to the subject
matter of this Agreement and supersedes and preempts any prior or
contemporaneous understandings, agreements, or representations by or between
the parties, written or oral.

 

 

IN WITNESS WHEREOF,
the undersigned, intending to be legally bound, have executed this Agreement as
of the date first above written.

 

	
   

  	
  COMPANY:

  
	
   

  	
  GEO PETRO RESOURCES COMPANY,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
  Dated: June 19, 2000

  	
  By:

  	
  /s/ Stuart J. Doshi

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Stuart Doshi

  
	
   

  	
  Its:

  	
  President

  
	
   

  	
  EMPLOYEE:

  
	
  Dated: June 19, 2000

  	
  By:

  	
  /s/ J. Chris Steinhauser

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  J. Chris Steinhauser

  

 

 

FIRST AMENDMENT

TO

EMPLOYMENT AGREEMENT

 

This FIRST AMENDMENT TO
EMPLOYMENT AGREEMENT (this “Amendment”) is made as of this 12th day
of December 2002, by and between GeoPetro Resources Company, a California
corporation (“Company”) and J. Chris Steinhauser (“Employee”).

 

RECITALS

 

A.       Company and Employee are parties to that
certain Employment Agreement dated June 19, 2000 (the “Original Agreement”),
pursuant to which Employee agreed to provide certain services to Company and
Company agreed to employ Employee as its Chief Financial Officer and Vice
President of Finance.

 

B.            The term of the Original Agreement was for two years,
from June 19, 2000 through June 18, 2002, continuing on a month-to-month basis
thereafter.

 

C.            The parties hereto now wish to amend the Original
Agreement to extend the term thereof for a definite term and to reflect such
other changes as indicated herein.

 

NOW, THEREFORE, Company and
Employee hereby agree as follows:

 

1. Effective Date.
The effective date of this Amendment shall be June 19, 2002 (the “Amendment
Effective Date”).

 

2. Amendment of Original Agreement. The parties hereby amend the
Original Agreement as follows:

 

(a)           Term. Section 1.1 of the Original Agreement shall be deleted and replaced in
full with the following:

 

1.1.      Employment Term. The terms of Employee’s employment under this Agreement shall
commence as of June 19, 2002 (the “Effective Date”) and shall continue until
three (3) years after the Effective Date (the “Termination Date”), unless
earlier terminated in accordance with Section 3 hereafter. The period
commencing as of the Effective Date and ending on the Termination Date is
hereinafter referred to as the “Employment Term”.

 

(b)           Salary. Section 1.5 of the
Original Agreement shall be deleted and replaced in full with the following:

 

1.5.      Base Salary. For
all the services rendered by Employee hereunder, the Company shall pay Employee
a base salary (the “Base Salary”) at the annual rate of $120,000. Employee’s
Base Salary shall be payable in installments at such times as the Company
customarily pays its other employees.

 

 

 3.            Integration.
To the extent of any inconsistencies between the terms and conditions of the
Original Agreement and those of this Amendment, this Amendment shall govern.
Except to the extent that the provisions of the Original Agreement are so
superseded, they shall remain in full force and effect.

 

4.             Counterparts. This Amendment may be executed in one or
more counterparts, each of which shall be an original, but all of which
together shall constitute one instrument.

 

IN WITNESS WHEREOF, Company
and Employee have executed this Amendment as of the date first above written.

 

GEOPETRO RESOURCES COMPANY

 

 

	
  /s/ Stuart J. Doshi

  	
   

  	
  /s/ J. Chris Steinhauser

  	
   

  
	
  By: Stuart Doshi

  	
                J.
  Chris Steinhauser

  
	
  Title:

  	
  President

  
					

 

 

SECOND AMENDMENT

TO

EMPLOYMENT AGREEMENT

 

This SECOND AMENDMENT TO
EMPLOYMENT AGREEMENT (this “Amendment”) is made as of this 1st day of January
2005, by and between GeoPetro Resources Company, a California corporation (“Company”)
and J. Chris Steinhauser (“Employee”).

 

RECITALS

 

A.            Company and Employee are parties to
that certain Employment Agreement dated June 19, 2000 (the “Original Agreement”)
and First Amendment to Employment Agreement dated December 12, 2002, pursuant
to which Employee agreed to provide certain services to Company and Company
agreed to employ Employee as its Chief Financial Officer and Vice President of
Finance.

 

B.            The term of the Original Agreement was for two years,
from June 19, 2000 through June 18, 2002 continuing on a month-to-month basis
thereafter, and the term of the First Amendment to Employment Agreement was for
three years, from June 19, 2002 through June 18, 2005 continuing on a
month-to-month basis thereafter.

 

C.            The parties hereto now wish to amend the Original
Agreement and the First Amendment to Employment Agreement to extend the term
thereof for a definite term and to reflect such other changes as indicated
herein.

 

NOW, THEREFORE, Company and
Employee hereby agree as follows:

 

1. Effective Date.
The effective date of this Amendment shall be January 1, 2005 (the “Amendment
Effective Date”).

 

2. Amendment of Original
Agreement and First Amendment to Employment Agreement. The parties hereby
amend the Original Agreement and the First Amendment to Employment Agreement as
follows:

 

(a)                                  Term. Section 2(a) of the First
Amendment to Employment Agreement shall be deleted and replaced in full with
the following:

 

1.1.      Employment Term. The terms of Employee’s employment under this Agreement shall
commence as of January 1, 2005 (the “Effective Date”) and shall continue until
June 30, 2008 (the “Termination Date”), unless earlier terminated in accordance
with Section 3 hereafter. The period commencing as of the Effective Date and
ending on the Termination Date is hereinafter referred to as the “Employment
Term”.

 

(b)                                 Salary. Section 2(b) of the First Amendment to Employment Agreement shall be
deleted and replaced in full with the following:

 

 

1.5.      Base Salary. For
all the services rendered by Employee hereunder, the Company shall pay Employee
a base salary (the “Base Salary”) at the annual rate of $150,000. Employee’s
Base Salary shall be payable in installments at such times as the Company
customarily pays its other employees.

 

(c)           Bonus. The
Second sentence of Section 1.6 of the Original Agreement which reads as
follows, “Employee shall receive an additional $10,000 bonus upon the
successful completion of the first merger between the Company and another
entity, and an additional $10,000 bonus upon the effectiveness of the Company’s
registration statement under the Securities Exchange Act of 1934 or the
Securities Act of 1933.” shall be deleted in its entirety.

 

 3.            Integration.
To the extent of any inconsistencies between the terms and conditions of the
Original Agreement, the First Amendment to Employment Agreement and those of
this Amendment, this Amendment shall govern. Except to the extent that the
provisions of the Original Agreement or the First Amendment to employment
Agreement are so superseded, they shall remain in full force and effect.

 

4.             Counterparts. This Amendment may be executed in one or
more counterparts, each of which shall be an original, but all of which
together shall constitute one instrument.

 

IN WITNESS WHEREOF, Company
and Employee have executed this Amendment as of the date first above written.

 

	
  GEOPETRO RESOURCES COMPANY

  
	
   

  
	
   

  
	
  /s/ Stuart J. Doshi

  	
   

  	
  /s/ J. Chris Steinhauser

  	
   

  
	
  By: Stuart Doshi

  	
  J. Chris Steinhauser

  
	
  Title:

  	
  President
  & CEO

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