Document:

Unassociated Document

     

    

    EMPLOYMENT AGREEMENT

    

    

    THIS
      EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into on this 27th
      day of November, 2006 (the “Effective Date”), by and between CrossPoint Energy
      Company, a Nevada corporation, with its principal executive offices in Frisco,
      Texas (the “Company”), and Daniel F. Collins, an individual currently residing
      in Lewisville, Texas (“Employee”).

     

    Background

    

    A. The
      Company desires to employ Employee in such a manner as will reinforce and
      encourage the highest attention and dedication to the Company of Employee as
      a
      member of Company’s management, in the best interest of the Company and its
      members; and

    

    B. Employee
      is willing to serve the Company on the terms and conditions herein
      provided.

     

    Terms
      and Conditions

    

    In
      consideration of the covenants and agreements herein contained and other good
      and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto agree as follows:

    

    1. Employment.
      The
      Company hereby employs Employee in the capacity of President and Chief Executive
      Officer, and Employee hereby agrees to accept such employment by the Company,
      upon the terms and conditions stated in this Agreement.

    

    2. Term.
      .
      This
      Agreement shall become effective as of the Effective Date and shall end on
      the
      fifth anniversary of such date; provided, however, that beginning with the
      fourth anniversary of the Effective Date, and continuing with each anniversary
      date of the Effective Date that occurs thereafter while this Agreement is in
      effect, the Employee’s period of employment shall be automatically extended for
      additional, successive one-year periods, unless either party shall give written
      notice to the other party at least ninety (90) days prior to any such
      anniversary date that no such automatic extension shall occur. In the event
      that
      such notice is timely given, the Employee’s employment shall not be extended for
      such successive period and shall terminate on the first anniversary date of
      the
      Effective Date following the date such notice is given (the “Term”).

    

    3. Duties.
      Employee shall perform such services and duties as may be assigned to him from
      time to time by the Board of Directors of the Company (the “Board”). Employee
      shall devote his full working time, efforts and energies to the performance
      of
      his duties hereunder. 

    

    4. Compensation.
      The
      Company shall pay Employee, as full compensation for services rendered by
      Employee under this Agreement, as follows:

    
      
         

        
        

      

      
        1

        
          

        

      

       

    

    (a) Annual
      Base Salary. The Company shall pay Employee an annual base salary (the “Annual
      Base Salary”) of One Hundred Ninety-Five Thousand Two Hundred Forty Two and
      No/l00 U. S. Dollars (U.S. $195,242.00) per year, or such higher Annual Base
      Salary as may be determined from time to time during the term hereof in
      accordance with the provisions of subsection (b) of this Section 4 by the Board,
      in its sole discretion. Such Annual Base Salary shall be subject to all
      appropriate federal and state withholding and payroll taxes and shall be paid
      by
      the Company to the Executive in twenty-four (24) equal semi-monthly installments
      in accordance with the regular payroll policies and practices of the Company
      or
      in such other periodic installments and on such days during the month as the
      Company and Employee shall mutually determine. 

    

    (b) Annual
      Bonus Compensation. In addition to the Annual Base Salary set forth in Section
      4(a) hereof and any other amounts of compensation payable to Employee pursuant
      to any other provisions of this Agreement, the Company may also, but is not
      required to, pay Employee discretionary annual bonus compensation (the “Annual
      Bonus Compensation”) in an amount, if any, determined by the Board to be proper
      and appropriate for each fiscal year of the Company during the term of this
      Agreement. Such Annual Bonus Compensation shall be based upon such factors
      as
      the Board shall deem appropriate. 

    

    5. Expenses
      and Services.
      During
      the term of Employee’s employment hereunder, Employee shall be entitled to
      receive prompt reimbursement for all reasonable expenses incurred by Employee
      by
      reason of his employment, including travel and living expenses while away from
      home at the request of and in the service of the Company, provided that such
      expenses are incurred and accounted for in accordance with the policies and
      procedures established by the Company and in effect when the expenses are
      incurred.

    

    6.
      Employment
      Facilities.
      During
      the Employment Period, the Company shall provide, at its expense, appropriate
      and adequate office space, furniture, communications, stenographic and
      word-processing equipment, supplies, personnel (including professional,
      clerical, support and other personnel) and such other facilities and services
      as
      shall be suitable to Employee’s position and adequate for the Employee’s use in
      performing Employee’s duties and responsibilities under this
      Agreement.

    

    7. Rights
      under Certain Plans.
      During
      the term of Employee’s employment hereunder, Employee will be entitled to
      participate in (a) the health and dental insurance plans and programs maintained
      by the Company applicable to officer employees on the same basis as other
      officer employees of the Company, and (b) unless otherwise determined by the
      Board, any other employee benefit plans and programs maintained by the Company
      applicable to officer employees on the same basis as other officer employees
      of
      the Company.

    

    8. Early
      Termination.
      Employee’s employment hereunder may be terminated without any breach of this
      Agreement only under the following circumstances:

    

    
      
        
        

      

      
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    (a) Employee’s
      employment hereunder will terminate upon his death.

     

    (b) If,
      as a
      result of Employee’s incapacity due to physical or mental illness, Employee
      shall have been absent from his duties or unable to perform his full duties
      hereunder for a total of one hundred eighty (180) days during any eighteen
      (18)
      month period, and within thirty (30) days after written notice of termination
      is
      given (which may occur before or after the end of such one hundred eighty (180)
      day period), shall not have returned to the performance of his full duties
      hereunder on a full-time basis, the Company may terminate the Employee’s
      employment hereunder.

    

    (c) The
      Company may terminate Employee’s employment hereunder for Cause. 

    
      

      
        	 	 	 	
                (i)

              	
                
                  the
                    commission of a felony or a crime involving moral turpitude or
                    the
                    commission of any other act or omission involving dishonesty
                    or
                    fraud;

                

              

      

       

    

    
      	 	 	 	
              (ii)

            	
              the
                willful misconduct that brings or is reasonably likely to bring the
                Company into public disgrace or disrepute which is materially injurious
                to
                the Company;

            

    

    

    
      	 	 	 	
              (iii)

            	
              gross
                misconduct, fraud, embezzlement, misappropriation of corporate assets,
                or
                a violation of any law with which the Company is required to
                comply;

            

    

    

    
      	 	 	 	
              (iv)

            	
              the
                willful and continued failure to perform your duties as reasonably
                directed by the Company

            

    

    

    
      	 	 	 	
              (v)

            	
              any
                material breach of this Agreement or any material duty owed to the
                Company, including but not limited to your fiduciary duties and your
                duties under Section 10 or 11 of this
                Agreement.

            

    

    

    (d) Employee
      may terminate his employment hereunder voluntarily or for Good Reason, for
      purposes of this Agreement, “Good Reason” shall mean:

    

    (i)  
      The
      assignment to Employee of any duties inconsistent in any material respect
      (unless in the nature of a promotion) with the Employee’s position in the
      Company immediately prior to such assignment (including, but not limited to,
      Employee’s status, offices and titles), or a significant adverse alteration or
      diminution in the nature or status of Employee’s authority, duties or
      responsibilities from those in effect immediately prior to such alteration
      of
      diminution.

    

    (ii)  
      Any
      purported termination by the Company of the Employee’s employment otherwise than
      as expressly permitted by this Agreement, including, but not limited to, any
      purported termination which is not effected pursuant to a Notice of Termination
      satisfying the requirements of Section 8(e). 

    

    
      
        
        

      

      
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    (iii) 
      The
      relocation of the Company’s principal executive offices to a location more than
      fifty (50) miles from Collin County, Texas, or the Company requiring Employee
      to
      be based anywhere other than a location which is more than fifty (50) miles from
      Collin County, Texas, except for travel reasonably required of Employee in
      the
      performance of Employees duties on behalf of the Company to an extent
      substantially consistent with the Employee’s business travel obligations to the
      Company.

    

    (iv)  
      The removal of Employee as a member of the Board of Directors of the
      Company.

    

    (v) 
       The transfer by the Company, through one transaction or a series of
      related transactions, either directly or indirectly, or through one or more
      intermediaries, of beneficial ownership (within the meaning of Rule 1 3d-3
      promulgated under the Securities Exchange Act of 1934) of 51% or more of the
      outstanding Units (as such term is defined in the Regulations), owned by the
      Company. 

    

    (e) Any
      termination of Employee’s employment by the Company or by Employee (other than
      termination pursuant to subsection (a) above) shall be communicated by written
      Notice of Termination to the other party hereto. For purposes of this Agreement,
      a “Notice of Termination” shall mean a notice which shall indicate the specific
      termination provision in this Agreement relied upon and shall set forth in
      reasonable detail the facts and circumstances claimed to provide a basis for
      termination of Employee’s employment under the provision so
      indicated.

    

    (f)
“Date
      of Termination” shall mean (1) if Employee’s employment is terminated by his
      death, the date of his death; (2) if Employee’s employment is terminated
      pursuant to subsection (b) above, thirty (30) days after Notice of Termination
      is given (provided that Employee shall not have returned to the performance
      of
      his duties on a full-time basis during such thirty (30) day period); (3) if
      Employee’s employment is terminated at the expiration of the Term or any
      extension thereof, the last day of the Term or, if applicable, the last day
      of
      any extension; and (4) if Employee’s employment is terminated for any other
      reason, the date specified in the Notice of Termination.

    

    9. Compensation
      upon Termination or During Illness.
      Upon
      termination of Employee’s employment hereunder or during any period of
      Employee’s physical or mental illness Employee shall be paid as
      follows:

     

    (a) During
      any period that Employee fails to perform his duties hereunder as a result
      of
      incapacity due to physical or mental illness (the “Illness Period”), the
      Employee shall continue to receive his Annual Base Salary at the rate then
      in
      effect, until the earlier of (i) the end of the Term, or (ii) the 180th day
      following the commencement of the Illness Period, provided that payments so
      made
      to the Employee shall be reduced by the sum of the amounts, if any, payable
      to
      Employee under disability benefit plans of the Company and which were not
      previously applied to reduce any such payment. In addition the Company shall
      (x)
      reimburse Employee for any theretofore unreimbursed expenses incurred prior
      to
      the commencement of the Illness Period; and (y) pay him any bonus compensation
      that was awarded to him but remained unpaid at the commencement of the Illness
      Period. Upon the making of such payments, the Company shall have no further
      obligations to Employee under this Agreement.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (b) If
      Employee’s employment is terminated by his death, the Company shall pay to
      Employee’s designated beneficiaries, or if he leaves no designated
      beneficiaries, to his estate, (i) his Annual Base Salary through the date of
      Employee’s death at the rate then in effect; (ii) the amount of theretofore
      unreimbursed expenses incurred by Employee prior to his death; and (iii) any
      bonus compensation that was awarded to Employee but remained unpaid at the
      time
      of his death. Upon the making so such payments, the Company shall have no
      further obligations to Employee under this Agreement.

    

    (c) If
      Employee’s employment shall be terminated by the Company for Cause or
      voluntarily by Employee for other than Good Reason, the Company shall pay
      Employee his Annual Base Salary, excluding any the bonus compensation awarded
      but remaining unpaid, through the Date of Termination at the rate in effect
      at
      the time Notice of Termination is given, plus any unreimbursed expenses due
      to
      Employee for expenses incurred prior to the time the Notice of Termination
      is
      given, and the Company shall have no further obligations to Employee under
      this
      Agreement.

    

    (d)
      If
      Employee’s employment shall be terminated by the Company without Cause, the
      Company shall pay Employee the following amounts: (i) the Employee’s Annual Base
      Salary through the Date of Termination at the rate in effect at the time Notice
      of Termination (ii) any bonus compensation that was awarded to Employee but
      remained unpaid at the time of termination of employment, (iii) any unreimbursed
      expenses due to Employee for expenses incurred prior to the time the Notice
      of
      Termination is given, and (iv) a severance payment based upon the number of
      years of employment by the Company; and the Company shall have no further
      obligations to Employee under this Agreement. If Employee ceases to be employed
      in 2006, the severance payment shall be an amount equal to one-half of the
      Employee’s Annual Base Salary. If Employee ceases to be employed in 2007, or
      subsequent years, the severance payment shall be an amount equal to the
      Employee’s Annual Base Salary. For purposes of determining Employee’s Annual
      Base Salary for purposes hereof, such salary shall be determined based upon
      the
      rate of base pay in effect at the time Notice of Termination is given to
      Employee. 

    

    If
      Employee is a Specified Employee on the Date of Termination, and, as a result
      thereof, Section 409A of the Internal Revenue Code and the rules promulgated
      thereunder (the “Code”) would so require, payments pursuant to this Section 9(d)
      may not commence earlier than six (6) months after the Date of Termination.
      A
      "Specified Employee" is a key employee (as defined in Section 416(i) of the
      Code, without regard to paragraph 5 thereof) of the Company if any stock of
      Company (or any entity with which Company would be considered a single employer
      under section 414(b) or 414(c) of the Code) is publicly traded on an established
      securities market or otherwise (or such other definition as may be set forth
      in
      Section 409A of the Code).

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (e) During
      the term of this Agreement Employee shall give the Company immediate notice
      of
      any change of address.

     

    10. Restrictive
      Terms.
      The
      Employee acknowledges that the special relationship of trust and confidence
      between the Company, and the clients, customers, partners, lessors, affiliates,
      representatives, agents, service providers, vendors and suppliers of Dallas
      Operating Corp. (“DOC”) and of the Company (all of the foregoing parties are
      collectively referred to herein as the “Third Party Relationships”) creates a
      high risk and opportunity for the Employee to misappropriate the relationship
      and goodwill existing between the Company and the Third Party Relationships.
      The
      Employee further acknowledges that, prior to and during his employment with
      the
      Company, the Employee will be provided with access to confidential records,
      secrets and proprietary information related to the Company and DOC (herein
      referred to as the “Confidential Information”) that will enable the Employee to
      benefit from the Confidential Information. The Employee further acknowledges
      and
      agrees that it is fair and reasonable for the Company to take steps to protect
      itself from the risk of such misappropriation.

    

    The
      Employee acknowledges that, in exchange for the execution of the restrictions
      set forth below, the Employee has received or will receive substantial and
      valuable consideration. The Employee agrees that this consideration constitutes
      fair and adequate consideration for the execution of theses
      restrictions.

     

    The
      Employee covenants and agrees that during the term of this Agreement and for
      a
      period of one (1) year immediately following the date on which the Employee
      ceases to be employed by the Company, for whatever reason, the following shall
      be applicable a) the Employee will not, under any circumstances, furnish or
      provide, to any third party, any of the Confidential Information, any trade
      secrets of the Company or DOC, any lease information, any client or customer
      lists (or similar type information) of the Company, or any other information
      which is related to the Company and which is not in the public domain, (b)
      the
      Employee shall not, directly or indirectly, do any of the following: (i) solicit
      to hire, cause to be hired, or hire any person who is employed by the Company
      (or any of its subsidiaries or affiliates) on the date of termination of this
      Agreement (the foregoing applies to actions by the Employee directly or on
      behalf of any third party), or who was employed by the Company at any time
      during the twelve (12) months preceding the date of termination of this
      Agreement, or (ii) for the purpose of competitive solicitation, contact any
      business entity or person who was an affiliate of the Company during the period
      of time involved, or (iii) for the purpose of competitive solicitation, solicit,
      directly or on behalf of any third party or parties, the business of any client
      or customer of the Company or DOC, or former clients or customer of the Company
      or DOC, or any business entity or person that is affiliated with, or was
      affiliated with the Company, or any of its subsidiaries, at any time or times
      during the term of this Agreement. The Employee agrees that these restrictions
      set forth above are ancillary to an otherwise enforceable agreement and
      supported by independent valuable consideration. 

    

    If
      the
      Employee is found to have violated any of the provisions of this provision
      of
      the Agreement, the Employee agrees that the restrictive period of each covenant
      so violated shall be extended by a period of time equal to the period of such
      violation by him. It is the intent of this provision of the Agreement that
      the
      running of the restrictive period of any covenant shall be tolled during any
      period of violation of such covenant so that the Company may obtain the full
      and
      reasonable protection for which it contracted and so that Employee may not
      profit by any breach.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    The
      Employee’s obligations under Section 10 of the Agreement shall survive the
      termination of this Agreement.

    

    11.
      Nondisclosure.
      The
      Employee acknowledges that he occupies or will occupy a position of trust and
      confidence with the Company, and that the Company would be irreparably damaged
      if Employee were to breach the covenants set forth in this provision of the
      Agreement. Accordingly, the Employee agrees that he will not, without the prior
      written consent of the Company, at any time during the Term of this Agreement
      or
      any time except as may be required by legal authority or as required by the
      Company to be disclosed in the course of performing the Employee’s duties under
      this Agreement for the Company, use or disclose to any person, firm or other
      legal entity, any Confidential Information. Confidential Information shall
      include, without limitation, proprietary information about the Company, client
      lists, customer lists, pricing information, data, know-how, processes, ideas,
      product development, market studies, computer software and programs, database
      technologies, strategic planning, and risk management as relates to the Company
      and DOC. The Employee acknowledges and agrees that all Confidential Information
      that he has acquired or may acquire, were received or will be received in
      confidence and as a fiduciary of the Company. The Employee will exercise utmost
      diligence to protect and guard such Confidential Information. The Employee
      agrees that he will not, without the express written consent of the Board of
      Directors of the Company, take with him upon the termination of this Agreement
      any document or paper, or any photocopy or reproduction or duplication thereof,
      relating to any Confidential Information.

     

    The
      Employee’s obligations under Section 11 of the Agreement shall survive the
termination
      of this Agreement.

    

    12.
      Waiver.
      No
      waiver of any provision of this Agreement shall be deemed, or shall constitute,
      a waiver of any other provision, whether or not similar, nor shall any waiver
      constitute a waiver of any continuing or succeeding breach of such provision,
      a
      waiver of the provision itself, or a waiver of any right under this Agreement.
      No waiver shall be binding unless executed in writing by the party making the
      waiver. 

    

    Notwithstanding
      anything to the contrary in Sections 10 and 11 of this Agreement, it is
      understood and agreed that the Employee is not in violation of the restrictive
      terms and provisions of Sections 10 and 11 of this Agreement by reason of
      Employee’s ownership of any and all oil and gas property interests at the time
      of the execution of this Agreement. 

    

    13. Limitation
      of Rights.
      Nothing
      in this Agreement, except as specifically stated herein, is intended to confer
      any rights or remedies under or by reason of this Agreement on any persons
      other
      than the parties to it and their respective permitted successors and assigns
      and
      other legal representatives, nor is anything in this Agreement intended to
      relieve or discharge the obligation or liability of any third persons to any
      party to this Agreement, nor shall any provision give any third persons any
      right of subrogation or action over against any party to this
      Agreement.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    14. Notices.
      All
      notices given in connection with this Agreement shall be in writing and shall
      be
      delivered either by personal delivery, by telecopy or similar facsimile means,
      by certified or registered mail (postage prepaid and return receipt requested),
      or by express courier or delivery service, addressed to the applicable party
      hereto at the following address:

    

    If
      to the
      Company:

    

    CrossPoint
      Energy Company

    2801
      Network Blvd., Suite 810

    Frisco,
      TX 75034

    Attention:
      Chairman
      of the Board of Directors

    Facsimile
      No.: 972-818-1122

    

    If
      to
      Employee:

    

    Daniel
      F.
      Collins

    c/o
      2801
      Network Blvd., Suite 810

    Frisco,
      TX 75034

    Facsimile
      No.: 972-818-1122

    

    or
      such
      other address and number as either party shall have subsequently designated
      by
      written notice given to the other party in the manner hereinabove set forth.
      Notices shall be deemed given when received, if sent by telecopy or similar
      facsimile means (confirmation of such receipt by confirmed facsimile
      transmission being deemed receipt of communications sent by telecopy or other
      facsimile means); and when delivered and receipted for (or upon the date of
      attempted delivery where delivery is refused), if hand-delivered, sent by
      express courier or delivery service, or sent by certified or registered
      mail.

    

    15.
      Inconsistent
      Obligations.
      Employee represents and warrants that he has not previously assumed any
      obligations inconsistent with those of this Agreement.

    

    16. Entirety
      and Amendments.
      This
      instrument and the instruments referred to herein embody the entire agreement
      between the parties, supersede all prior agreements and understandings, if
      any,
      relating to the subject matter hereof, and may be amended only by an instrument
      in writing executed by all parties, and supplemented only by documents delivered
      or to be delivered in accordance with the express terms hereof.

    

    17. Successors
      and Assigns.
      This
      Agreement will be binding upon and inure to the benefit of the parties hereto
      and any successors in interest to the Company, but neither this Agreement nor
      any rights hereunder may be assigned by Employee except in the case of the
      death
      of Employee.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    18. Governing
      Law and Venue.
      This
      Agreement shall be governed by and construed and enforced in accordance with
      the
      laws of the State of Texas applicable to agreements made and to be performed
      entirely in Texas. The obligations and undertakings of each of the parties
      to
      this Agreement shall be performable in Dallas County, Texas, and each party
      agrees that if any action at law or in equity is necessary by the Company or
      Employee to enforce or interpret the terms of this Agreement, venue shall be
      in
      Dallas County, Texas, and the prevailing party in any such action shall be
      entitled to reasonable attorneys’ fees, costs and necessary disbursements in
      addition to any other relief to which it may be entitled.

    

    19. Cumulative
      Remedies.
      No
      remedy herein conferred upon any party is intended to be exclusive of any other
      benefits or remedy, and each and every such remedy shall be cumulative and
      shall
      be in addition to every other benefits or remedy given hereunder or now or
      hereafter existing at law or in equity or by statute or otherwise. No single
      or
      partial exercise by any party of any right, power or remedy hereunder shall
      preclude any other or further exercise thereof.

    

    20. Multiple
      Counterparts.
      This
      Agreement may be executed in a number of identical counterparts, each of which
      constitute collectively, one agreement; but in making proof of this Agreement,
      it shall not be necessary to produce or account for more than one
      counterpart.

    

    21. Descriptive
      Headings.
      The
      headings, captions and arrangements used in this Agreement are for convenience
      only and shall not be deemed to limit, amplify or modify the terms of this
      Agreement, nor affect the meanings hereof.

    

    22. Dispute
      Resolution.
      All
      disputes arising under this Agreement or pertaining in any way to your
      employment or the termination thereof shall be submitted to binding arbitration
      conducted by JAMS/Endispute in Dallas, Texas in accordance with the Federal
      Arbitration Act (“FAA”) and pursuant to the JAMS/Endipute rules governing
      employment disputes, except for (1) workers compensation and unemployment
      claims; or (2) claims of injunctive relief arising from or relating to the
      confidentiality, non-solicitation and non-competition sections of this
      Agreement. Injunctive relief may be sought only from any court of competent
      jurisdiction located in Texas and you consent to personal jurisdiction and
      venue
      in such court. The decision of the arbitrator shall be recordable as a judgment
      in any court of competent jurisdiction. The arbitrator shall award attorney’s
      fees and costs in favor of the substantially prevailing party. The Company
      initially shall pay the administrative fee required by JAMS/Endispute, subject
      to the arbitrator’s assessment of fees and/or costs at the conclusion of the
      arbitration.

    

    This
      Agreement is dated and effective as of the Effective Date.

    

    CROSSPOINT
      ENERGY COMPANY

     

     

    By: 
      /s/ Margaret R. Coughlin 

    Corporate
      Secretary

    Margaret
      R. Coughlin

     

    By: 
      /s/  Daniel F. Collins

    Daniel
      F.
      Collins

    

     

    
      
        
        

      

      
        9Unassociated Document

    

    EMPLOYMENT AGREEMENT

    

    

    THIS
      EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into on this 27th
      day of November, 2006 (the “Effective Date”), by and between CrossPoint Energy
      Company, a Nevada corporation, with its principal executive offices in Frisco,
      Texas (the “Company”), and Jeffrey A. Krakos, an individual currently residing
      in Lewisville, Texas (“Employee”).

    Background

    

    A. The
      Company desires to employ Employee in such a manner as will reinforce and
      encourage the highest attention and dedication to the Company of Employee as
      a
      member of Company’s management, in the best interest of the Company and its
      members; and

    

    B. Employee
      is willing to serve the Company on the terms and conditions herein
      provided.

    Terms
      and Conditions

    

    In
      consideration of the covenants and agreements herein contained and other good
      and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto agree as follows:

    

    1. Employment.
      The
      Company hereby employs Employee in the capacity of Executive Vice President,
      and
      Employee hereby agrees to accept such employment by the Company, upon the terms
      and conditions stated in this Agreement.

    

    2. Term.
      .
      This
      Agreement shall become effective as of the Effective Date and shall end on
      the
      fifth anniversary of such date; provided, however, that beginning with the
      fourth anniversary of the Effective Date, and continuing with each anniversary
      date of the Effective Date that occurs thereafter while this Agreement is in
      effect, the Employee’s period of employment shall be automatically extended for
      additional, successive one-year periods, unless either party shall give written
      notice to the other party at least ninety (90) days prior to any such
      anniversary date that no such automatic extension shall occur. In the event
      that
      such notice is timely given, the Employee’s employment shall not be extended for
      such successive period and shall terminate on the first anniversary date of
      the
      Effective Date following the date such notice is given (the “Term”).

    

    3. Duties.
      Employee shall perform such services and duties as may be assigned to him from
      time to time by the Board of Directors of the Company (the “Board”). Employee
      shall devote his full working time, efforts and energies to the performance
      of
      his duties hereunder. 

    

    4. Compensation.
      The
      Company shall pay Employee, as full compensation for services rendered by
      Employee under this Agreement, as follows:

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    (a) Annual
      Base Salary. The Company shall pay Employee an annual base salary (the “Annual
      Base Salary”) of One Hundred Eighty Nine Thousand One Hundred Thirty Two and
      No/l00 U. S. Dollars (U.S. $189,132.00) per year, or such higher Annual Base
      Salary as may be determined from time to time during the term hereof in
      accordance with the provisions of subsection (b) of this Section 4 by the Board,
      in its sole discretion. Such Annual Base Salary shall be subject to all
      appropriate federal and state withholding and payroll taxes and shall be paid
      by
      the Company to the Executive in twenty-four (24) equal semi-monthly installments
      in accordance with the regular payroll policies and practices of the Company
      or
      in such other periodic installments and on such days during the month as the
      Company and Employee shall mutually determine. 

    

    (b) Annual
      Bonus Compensation. In addition to the Annual Base Salary set forth in Section
      4(a) hereof and any other amounts of compensation payable to Employee pursuant
      to any other provisions of this Agreement, the Company may also, but is not
      required to, pay Employee discretionary annual bonus compensation (the “Annual
      Bonus Compensation”) in an amount, if any, determined by the Board to be proper
      and appropriate for each fiscal year of the Company during the term of this
      Agreement. Such Annual Bonus Compensation shall be based upon such factors
      as
      the Board shall deem appropriate. 

    

    5. Expenses
      and Services.
      During
      the term of Employee’s employment hereunder, Employee shall be entitled to
      receive prompt reimbursement for all reasonable expenses incurred by Employee
      by
      reason of his employment, including travel and living expenses while away from
      home at the request of and in the service of the Company, provided that such
      expenses are incurred and accounted for in accordance with the policies and
      procedures established by the Company and in effect when the expenses are
      incurred.

    

    6.
      Employment
      Facilities.
      During
      the Employment Period, the Company shall provide, at its expense, appropriate
      and adequate office space, furniture, communications, stenographic and
      word-processing equipment, supplies, personnel (including professional,
      clerical, support and other personnel) and such other facilities and services
      as
      shall be suitable to Employee’s position and adequate for the Employee’s use in
      performing Employee’s duties and responsibilities under this
      Agreement.

    

    7. Rights
      under Certain Plans.
      During
      the term of Employee’s employment hereunder, Employee will be entitled to
      participate in (a) the health and dental insurance plans and programs maintained
      by the Company applicable to officer employees on the same basis as other
      officer employees of the Company, and (b) unless otherwise determined by the
      Board, any other employee benefit plans and programs maintained by the Company
      applicable to officer employees on the same basis as other officer employees
      of
      the Company.

    

    8. Early
      Termination.
      Employee’s employment hereunder may be terminated without any breach of this
      Agreement only under the following circumstances:

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (a) Employee’s
      employment hereunder will terminate upon his death.

    

    (b) If,
      as a
      result of Employee’s incapacity due to physical or mental illness, Employee
      shall have been absent from his duties or unable to perform his full duties
      hereunder for a total of one hundred eighty (180) days during any eighteen
      (18)
      month period, and within thirty (30) days after written notice of termination
      is
      given (which may occur before or after the end of such one hundred eighty (180)
      day period), shall not have returned to the performance of his full duties
      hereunder on a full-time basis, the Company may terminate the Employee’s
      employment hereunder.

    

    (c) The
      Company may terminate Employee’s employment hereunder for Cause. 

    

    
      	 	
              (i)

            	
              the
                commission of a felony or a crime involving moral turpitude or the
                commission of any other act or omission involving dishonesty or
                fraud;

            

    

    

    
      	 	 	 	
              (ii)

            	
              the
                willful misconduct that brings or is reasonably likely to bring the
                Company into public disgrace or disrepute which is materially injurious
                to
                the Company;

            

    

    

    
      	 	 	 	
              (iii)

            	
              gross
                misconduct, fraud, embezzlement, misappropriation of corporate assets,
                or
                a violation of any law with which the Company is required to
                comply;

            

    

    

    
      	 	 	 	
              (iv)

            	
              the
                willful and continued failure to perform your duties as reasonably
                directed by the Company

            

    

    

    
      	 	 	 	
              (v)

            	
              any
                material breach of this Agreement or any material duty owed to the
                Company, including but not limited to your fiduciary duties and your
                duties under Section 10 or 11 of this
                Agreement.

            

    

    

    (d) Employee
      may terminate his employment hereunder voluntarily or for Good Reason, for
      purposes of this Agreement, “Good Reason” shall mean:

    

    (i) The
      assignment to Employee of any duties inconsistent in any material respect
      (unless in the nature of a promotion) with the Employee’s position in the
      Company immediately prior to such assignment (including, but not limited to,
      Employee’s status, offices and titles), or a significant adverse alteration or
      diminution in the nature or status of Employee’s authority, duties or
      responsibilities from those in effect immediately prior to such alteration
      of
      diminution.

    

    (ii) Any
      purported termination by the Company of the Employee’s employment otherwise than
      as expressly permitted by this Agreement, including, but not limited to, any
      purported termination which is not effected pursuant to a Notice of Termination
      satisfying the requirements of Section 8(e). 

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (iii) The
      relocation of the Company’s principal executive offices to a location more than
      fifty (50) miles from Collin County, Texas, or the Company requiring Employee
      to
      be based anywhere other than a location which is more than fifty (50) miles
      from
      Collin County, Texas, except for travel reasonably required of Employee in
      the
      performance of Employees duties on behalf of the Company to an extent
      substantially consistent with the Employee’s business travel obligations to the
      Company.

    

    (iv)
      The
      removal of Employee as a member of the Board of Directors of the
      Company.

    

    (v)
      The
      transfer by the Company, through one transaction or a series of related
      transactions, either directly or indirectly, or through one or more
      intermediaries, of beneficial ownership (within the meaning of Rule 1 3d-3
      promulgated under the Securities Exchange Act of 1934) of 51% or more of the
      outstanding Units (as such term is defined in the Regulations), owned by the
      Company. 

    

    (e) Any
      termination of Employee’s employment by the Company or by Employee (other than
      termination pursuant to subsection (a) above) shall be communicated by written
      Notice of Termination to the other party hereto. For purposes of this Agreement,
      a “Notice of Termination” shall mean a notice which shall indicate the specific
      termination provision in this Agreement relied upon and shall set forth in
      reasonable detail the facts and circumstances claimed to provide a basis for
      termination of Employee’s employment under the provision so
      indicated.

    

    (f)
“Date
      of Termination” shall mean (1) if Employee’s employment is terminated by his
      death, the date of his death; (2) if Employee’s employment is terminated
      pursuant to subsection (b) above, thirty (30) days after Notice of Termination
      is given (provided that Employee shall not have returned to the performance
      of
      his duties on a full-time basis during such thirty (30) day period); (3) if
      Employee’s employment is terminated at the expiration of the Term or any
      extension thereof, the last day of the Term or, if applicable, the last day
      of
      any extension; and (4) if Employee’s employment is terminated for any other
      reason, the date specified in the Notice of Termination.

    

    9. Compensation
      upon Termination or During Illness.
      Upon
      termination of Employee’s employment hereunder or during any period of
      Employee’s physical or mental illness Employee shall be paid as
      follows:

    

    (a) During
      any period that Employee fails to perform his duties hereunder as a result
      of
      incapacity due to physical or mental illness (the “Illness Period”), the
      Employee shall continue to receive his Annual Base Salary at the rate then
      in
      effect, until the earlier of (i) the end of the Term, or (ii) the 180th day
      following the commencement of the Illness Period, provided that payments so
      made
      to the Employee shall be reduced by the sum of the amounts, if any, payable
      to
      Employee under disability benefit plans of the Company and which were not
      previously applied to reduce any such payment. In addition the Company shall
      (x)
      reimburse Employee for any theretofore unreimbursed expenses incurred prior
      to
      the commencement of the Illness Period; and (y) pay him any bonus compensation
      that was awarded to him but remained unpaid at the commencement of the Illness
      Period. Upon the making of such payments, the Company shall have no further
      obligations to Employee under this Agreement.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (b) If
      Employee’s employment is terminated by his death, the Company shall pay to
      Employee’s designated beneficiaries, or if he leaves no designated
      beneficiaries, to his estate, (i) his Annual Base Salary through the date of
      Employee’s death at the rate then in effect; (ii) the amount of theretofore
      unreimbursed expenses incurred by Employee prior to his death; and (iii) any
      bonus compensation that was awarded to Employee but remained unpaid at the
      time
      of his death. Upon the making so such payments, the Company shall have no
      further obligations to Employee under this Agreement.

    

    (c) If
      Employee’s employment shall be terminated by the Company for Cause or
      voluntarily by Employee for other than Good Reason, the Company shall pay
      Employee his Annual Base Salary, excluding any the bonus compensation awarded
      but remaining unpaid, through the Date of Termination at the rate in effect
      at
      the time Notice of Termination is given, plus any unreimbursed expenses due
      to
      Employee for expenses incurred prior to the time the Notice of Termination
      is
      given, and the Company shall have no further obligations to Employee under
      this
      Agreement.

    

    (d)
      If
      Employee’s employment shall be terminated by the Company without Cause, the
      Company shall pay Employee the following amounts: (i) the Employee’s Annual Base
      Salary through the Date of Termination at the rate in effect at the time Notice
      of Termination (ii) any bonus compensation that was awarded to Employee but
      remained unpaid at the time of termination of employment, (iii) any unreimbursed
      expenses due to Employee for expenses incurred prior to the time the Notice
      of
      Termination is given, and (iv) a severance payment based upon the number of
      years of employment by the Company; and the Company shall have no further
      obligations to Employee under this Agreement. If Employee ceases to be employed
      in 2006, the severance payment shall be an amount equal to one-half of the
      Employee’s Annual Base Salary. If Employee ceases to be employed in 2007, or
      subsequent years, the severance payment shall be an amount equal to the
      Employee’s Annual Base Salary. For purposes of determining Employee’s Annual
      Base Salary for purposes hereof, such salary shall be determined based upon
      the
      rate of base pay in effect at the time Notice of Termination is given to
      Employee. 

    

    If
      Employee is a Specified Employee on the Date of Termination, and, as a result
      thereof, Section 409A of the Internal Revenue Code and the rules promulgated
      thereunder (the “Code”) would so require, payments pursuant to this Section 9(d)
      may not commence earlier than six (6) months after the Date of Termination.
      A
      "Specified Employee" is a key employee (as defined in Section 416(i) of the
      Code, without regard to paragraph 5 thereof) of the Company if any stock of
      Company (or any entity with which Company would be considered a single employer
      under section 414(b) or 414(c) of the Code) is publicly traded on an established
      securities market or otherwise (or such other definition as may be set forth
      in
      Section 409A of the Code).

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (e) During
      the term of this Agreement Employee shall give the Company immediate notice
      of
      any change of address.

    

    10. Restrictive
      Terms.
      The
      Employee acknowledges that the special relationship of trust and confidence
      between the Company, and the clients, customers, partners, lessors, affiliates,
      representatives, agents, service providers, vendors and suppliers of Dallas
      Operating Corp. (“DOC”) and of the Company (all of the foregoing parties are
      collectively referred to herein as the “Third Party Relationships”) creates a
      high risk and opportunity for the Employee to misappropriate the relationship
      and goodwill existing between the Company and the Third Party Relationships.
      The
      Employee further acknowledges that, prior to and during his employment with
      the
      Company, the Employee will be provided with access to confidential records,
      secrets and proprietary information related to the Company and DOC (herein
      referred to as the “Confidential Information”) that will enable the Employee to
      benefit from the Confidential Information. The Employee further acknowledges
      and
      agrees that it is fair and reasonable for the Company to take steps to protect
      itself from the risk of such misappropriation.

    

    The
      Employee acknowledges that, in exchange for the execution of the restrictions
      set forth below, the Employee has received or will receive substantial and
      valuable consideration. The Employee agrees that this consideration constitutes
      fair and adequate consideration for the execution of theses
      restrictions.

     

    The
      Employee covenants and agrees that during the term of this Agreement and for
      a
      period of one (1) year immediately following the date on which the Employee
      ceases to be employed by the Company, for whatever reason, the following shall
      be applicable a) the Employee will not, under any circumstances, furnish or
      provide, to any third party, any of the Confidential Information, any trade
      secrets of the Company or DOC, any lease information, any client or customer
      lists (or similar type information) of the Company, or any other information
      which is related to the Company and which is not in the public domain, (b)
      the
      Employee shall not, directly or indirectly, do any of the following: (i) solicit
      to hire, cause to be hired, or hire any person who is employed by the Company
      (or any of its subsidiaries or affiliates) on the date of termination of this
      Agreement (the foregoing applies to actions by the Employee directly or on
      behalf of any third party), or who was employed by the Company at any time
      during the twelve (12) months preceding the date of termination of this
      Agreement, or (ii) for the purpose of competitive solicitation, contact any
      business entity or person who was an affiliate of the Company during the period
      of time involved, or (iii) for the purpose of competitive solicitation, solicit,
      directly or on behalf of any third party or parties, the business of any client
      or customer of the Company or DOC, or former clients or customer of the Company
      or DOC, or any business entity or person that is affiliated with, or was
      affiliated with the Company, or any of its subsidiaries, at any time or times
      during the term of this Agreement. The Employee agrees that these restrictions
      set forth above are ancillary to an otherwise enforceable agreement and
      supported by independent valuable consideration. 

    

    If
      the
      Employee is found to have violated any of the provisions of this provision
      of
      the Agreement, the Employee agrees that the restrictive period of each covenant
      so violated shall be extended by a period of time equal to the period of such
      violation by him. It is the intent of this provision of the Agreement that
      the
      running of the restrictive period of any covenant shall be tolled during any
      period of violation of such covenant so that the Company may obtain the full
      and
      reasonable protection for which it contracted and so that Employee may not
      profit by any breach.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    The
      Employee’s obligations under Section 10 of the Agreement shall survive the
      termination of this Agreement.

    

    11.
      Nondisclosure.
      The
      Employee acknowledges that he occupies or will occupy a position of trust and
      confidence with the Company, and that the Company would be irreparably damaged
      if Employee were to breach the covenants set forth in this provision of the
      Agreement. Accordingly, the Employee agrees that he will not, without the prior
      written consent of the Company, at any time during the Term of this Agreement
      or
      any time except as may be required by legal authority or as required by the
      Company to be disclosed in the course of performing the Employee’s duties under
      this Agreement for the Company, use or disclose to any person, firm or other
      legal entity, any Confidential Information. Confidential Information shall
      include, without limitation, proprietary information about the Company, client
      lists, customer lists, pricing information, data, know-how, processes, ideas,
      product development, market studies, computer software and programs, database
      technologies, strategic planning, and risk management as relates to the Company
      and DOC. The Employee acknowledges and agrees that all Confidential Information
      that he has acquired or may acquire, were received or will be received in
      confidence and as a fiduciary of the Company. The Employee will exercise utmost
      diligence to protect and guard such Confidential Information. The Employee
      agrees that he will not, without the express written consent of the Board of
      Directors of the Company, take with him upon the termination of this Agreement
      any document or paper, or any photocopy or reproduction or duplication thereof,
      relating to any Confidential Information.

     

    The
      Employee’s obligations under Section 11 of the Agreement shall survive the
termination
      of this Agreement.

    

    12.
      Waiver.
      No
      waiver of any provision of this Agreement shall be deemed, or shall constitute,
      a waiver of any other provision, whether or not similar, nor shall any waiver
      constitute a waiver of any continuing or succeeding breach of such provision,
      a
      waiver of the provision itself, or a waiver of any right under this Agreement.
      No waiver shall be binding unless executed in writing by the party making the
      waiver. 

    

    Notwithstanding
      anything to the contrary in Sections 10 and 11 of this Agreement, it is
      understood and agreed that the Employee is not in violation of the restrictive
      terms and provisions of Sections 10 and 11 of this Agreement by reason of
      Employee’s ownership of any and all oil and gas property interests at the time
      of the execution of this Agreement. 

    

    13. Limitation
      of Rights.
      Nothing
      in this Agreement, except as specifically stated herein, is intended to confer
      any rights or remedies under or by reason of this Agreement on any persons
      other
      than the parties to it and their respective permitted successors and assigns
      and
      other legal representatives, nor is anything in this Agreement intended to
      relieve or discharge the obligation or liability of any third persons to any
      party to this Agreement, nor shall any provision give any third persons any
      right of subrogation or action over against any party to this
      Agreement.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    14. Notices.
      All
      notices given in connection with this Agreement shall be in writing and shall
      be
      delivered either by personal delivery, by telecopy or similar facsimile means,
      by certified or registered mail (postage prepaid and return receipt requested),
      or by express courier or delivery service, addressed to the applicable party
      hereto at the following address:

    

    If
      to the
      Company:

    

    CrossPoint
      Energy Company

    2801
      Network Blvd., Suite 810

    Frisco,
      TX 75034

    
      	 	
              Attention:

            	
              Chairman
                of the Board of Directors

            

    

    Facsimile
      No.: 972-818-1122

    

    If
      to
      Employee:

    

    Jeffrey
      A. Krakos

    c/o
      2801
      Network Blvd., Suite 810

    Frisco,
      TX 75034

    Facsimile
      No.: 972-818-1122

    

    or
      such
      other address and number as either party shall have subsequently designated
      by
      written notice given to the other party in the manner hereinabove set forth.
      Notices shall be deemed given when received, if sent by telecopy or similar
      facsimile means (confirmation of such receipt by confirmed facsimile
      transmission being deemed receipt of communications sent by telecopy or other
      facsimile means); and when delivered and receipted for (or upon the date of
      attempted delivery where delivery is refused), if hand-delivered, sent by
      express courier or delivery service, or sent by certified or registered
      mail.

    

    15.
      Inconsistent
      Obligations.
      Employee represents and warrants that he has not previously assumed any
      obligations inconsistent with those of this Agreement.

    

    16. Entirety
      and Amendments.
      This
      instrument and the instruments referred to herein embody the entire agreement
      between the parties, supersede all prior agreements and understandings, if
      any,
      relating to the subject matter hereof, and may be amended only by an instrument
      in writing executed by all parties, and supplemented only by documents delivered
      or to be delivered in accordance with the express terms hereof.

    

    17. Successors
      and Assigns.
      This
      Agreement will be binding upon and inure to the benefit of the parties hereto
      and any successors in interest to the Company, but neither this Agreement nor
      any rights hereunder may be assigned by Employee except in the case of the
      death
      of Employee.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    18. Governing
      Law and Venue.
      This
      Agreement shall be governed by and construed and enforced in accordance with
      the
      laws of the State of Texas applicable to agreements made and to be performed
      entirely in Texas. The obligations and undertakings of each of the parties
      to
      this Agreement shall be performable in Dallas County, Texas, and each party
      agrees that if any action at law or in equity is necessary by the Company or
      Employee to enforce or interpret the terms of this Agreement, venue shall be
      in
      Dallas County, Texas, and the prevailing party in any such action shall be
      entitled to reasonable attorneys’ fees, costs and necessary disbursements in
      addition to any other relief to which it may be entitled.

    

    19. Cumulative
      Remedies.
      No
      remedy herein conferred upon any party is intended to be exclusive of any other
      benefits or remedy, and each and every such remedy shall be cumulative and
      shall
      be in addition to every other benefits or remedy given hereunder or now or
      hereafter existing at law or in equity or by statute or otherwise. No single
      or
      partial exercise by any party of any right, power or remedy hereunder shall
      preclude any other or further exercise thereof.

    

    20. Multiple
      Counterparts.
      This
      Agreement may be executed in a number of identical counterparts, each of which
      constitute collectively, one agreement; but in making proof of this Agreement,
      it shall not be necessary to produce or account for more than one
      counterpart.

    

    21. Descriptive
      Headings.
      The
      headings, captions and arrangements used in this Agreement are for convenience
      only and shall not be deemed to limit, amplify or modify the terms of this
      Agreement, nor affect the meanings hereof.

    

    22. Dispute
      Resolution.
      All
      disputes arising under this Agreement or pertaining in any way to your
      employment or the termination thereof shall be submitted to binding arbitration
      conducted by JAMS/Endispute in Dallas, Texas in accordance with the Federal
      Arbitration Act (“FAA”) and pursuant to the JAMS/Endipute rules governing
      employment disputes, except for (1) workers compensation and unemployment
      claims; or (2) claims of injunctive relief arising from or relating to the
      confidentiality, non-solicitation and non-competition sections of this
      Agreement. Injunctive relief may be sought only from any court of competent
      jurisdiction located in Texas and you consent to personal jurisdiction and
      venue
      in such court. The decision of the arbitrator shall be recordable as a judgment
      in any court of competent jurisdiction. The arbitrator shall award attorney’s
      fees and costs in favor of the substantially prevailing party. The Company
      initially shall pay the administrative fee required by JAMS/Endispute, subject
      to the arbitrator’s assessment of fees and/or costs at the conclusion of the
      arbitration.

    

    This
      Agreement is dated and effective as of the Effective Date.

    

    CROSSPOINT
      ENERGY COMPANY

     

     

    By:
      /s/ Margaret R. Coughlin

    Corporate
      Secretary

    Margaret
      R. Coughlin

     

     

     

    By: 
      /s/ Jeffrey A. Krakos

    Jeffrey
      A. Krakos

    
 

    
      
        
        

      

      
        9

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