Document:

ex10-1.htm

Exhibit 10.1

 

 

 

SEPARATION AND ADVISOR AGREEMENT

 

THIS SEPARATION AND ADVISOR AGREEMENT (the “Agreement”) is made and entered into this 13th day of November, 2015, by and between Bridgeline Digital, Inc. including its purchasers, successor and assigns (“Bridgeline” or the “Company”) and Mr. Thomas Massie (“Mr. Massie” and, collectively with Bridgeline, the “Parties”). This Agreement will become effective on the eighth (8th) day after Mr. Massie signs it, so long as he does not revoke it as set forth in Paragraph 15(c) below (the “Effective Date”). 

 

WHEREAS, Mr. Massie has expressed his intention to resign as the President and Chief Executive Officer, and as a Board Member of the Company; 

 

WHEREAS, Bridgeline and Mr. Massie are parties to an employment contract dated October 1, 2001 (the “Employment Contract”) that, among other things, sets forth their respective rights and obligations with respect to Mr. Massie’s separation from the Company; 

 

WHEREAS, except for those terms expressly delineated in Paragraph 17 below, the Parties desire to supersede the terms and conditions of the Employment Contract with those set-forth in this Agreement.

 

NOW, THEREFORE, for good and valuable consideration (including, but not limited to, the covenants and agreements hereinafter set forth), the receipt and sufficiency of which hereby are acknowledged, the Parties agree as follows: 

 

1.     Definition of Bridgeline. The Parties agree that, except for Paragraphs 3, 4, 5, 6 and 7 of this Agreement, wherever the terms “Bridgeline Digital, Inc.,” “Bridgeline” or the “Company” are used in this Agreement, they shall refer to Bridgeline Digital, Inc. and any of its divisions, parents, subsidiaries and affiliates, and any and all entities corporately related to Bridgeline and its and their respective officers, directors, employees, agents, representatives, successors, predecessors and assigns. 

 

 

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2.     Resignation Date. On or before November 13, 2015, Mr. Massie shall submit a letter to the Chairperson of Bridgeline’s Board of Directors (the “Board”) stating that, effective December 1, 2015 (the “Resignation Date”), he will resign as (a) President and Chief Executive Officer of the Company and (b) a Member of the Company’s Board. Commencing on December 2, 2015 and continuing until March 1, 2017, Mr. Massie shall serve as an advisor to the Board, at the Board’s discretion. For the avoidance of doubt, Mr. Massie shall not receive any additional remuneration for such advisory services other than that set forth in this Agreement. The parties will work in good faith to mutually agree on the content and timing of any announcements, press releases or other communications regarding such resignation consistent with the Communications Plan For Thomas Massie Separation. 

 

3.     Severance Payments. Commencing on December 30, 2015, and continuing for a period of sixteen (16) months, Bridgeline will provide Mr. Massie with a monthly payment of $31,250, less all required payroll taxes and withholdings. Each monthly payment shall be made in the usual payroll cycle, twice a month.

 

4.     Accrued Vacation. On or before the first regularly scheduled pay date following the Resignation Date, Bridgeline will provide Mr. Massie with an additional payment of $8,640, less all required payroll taxes and withholdings, which represents payment for accrued but unused vacation for calendar year 2015. 

 

5.     COBRA. To the extent Mr. Massie timely elects continuing medical and/or dental coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), Bridgeline will pay one hundred percent (100%) of the associated premiums for sixteen (16) months. For purposes of COBRA, the qualifying event shall be the Resignation Date. 

 

 

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6.     [THIS PARAGRAPH INTENTIONALLY LEFT BLANK]

 

7.     Legal Fees. Upon presentation of appropriate documentation demonstrating of the legal services performed on behalf of Mr. Massie and the amount of time attributed to such activity, Bridgeline shall pay to Mr. Massie’s Counsel, Bennett & Belfort PC at 24 Thorndike Street, Cambridge MA 02141 the full amount reasonably approved by Bridgeline within thirty (30) days of presentation of the above redacted invoice. Notwithstanding the above, the Company will not reimburse more than $10,000 of the legal fees incurred by Mr. Massie in connection with this matter.

 

8.     Return of Company Property. On or before Resignation Date, Mr. Massie shall promptly return to the Company all Company property and documents (whether in hard copy or electronic form) in his custody, control and/or and possession. In the event any Company property is discovered to be in the possession of Mr. Massie, Mr. Massie will be given written notice articulating what is believed to be missing and an opportunity to return any such property within ten (10) days. Mr. Massie shall be permitted to retain his two (2) year old Dell laptop provided the Company will move Company data to a Company computer on or before December 1, 2015. Mr. Massie will be permitted to remove any personal property in his office.

 

9.     Expense Reimbursement. In order to be eligible for reimbursement, Mr. Massie must submit a final expense report along with receipts and supporting documentation (in accordance with the Company’s travel and expense reimbursement policy) no later than December 30, 2015. 

 

 

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10.     Indemnity. The Company shall indemnify and hold harmless Mr. Massie against all costs, damages, losses and expenses (including litigation costs and reasonable attorney’s fees) arising from any third-party claim or as otherwise covered in the Company By-Laws for Mr. Massie’s acts or omissions during employment with the Company, relating in any way to those acts, omissions or representations by Mr. Massie executed within the scope of his employment and duties as President and Chief Executive Officer through December 1, 2015. The Company agrees that it shall continue to handle, including paying for defense and indemnity, all active claims or litigation, if any. The Company further agrees to maintain its current D&O insurance coverage consistent with its By-laws, with its current limits of liability and scope of coverage covering Mr. Massie for his period of employment with Company. Mr. Massie shall cooperate reasonably with the Company in the defense, settlement or compromise of any such claim(s). In all events, company shall reimburse Mr. Massie for his reasonable out of pocket costs and expenses, including travel and lodging, while exercising his cooperation hereunder. In the event Mr. Massie is called to provide cooperation after March, 2017, Company shall compensate Mr. Massie for his time expended in cooperating per Company’s request on a per-diem basis at his current compensation rate or, if employed, his then daily rate of pay, whichever is lower.

 

11.     Restrictive Covenants. The parties agree that Section 2.3 (a), (b), (c), (d) and (e) of the Employment Contract shall be incorporated herein by reference. In addition, Mr. Massie hereby agrees that, for a period of twelve (12) months after the Resignation Date, he will not, directly or indirectly and whether on his own behalf or on the behalf of any third party, and without written authorization from the Chairperson of the Board: 

 

(a)     call-on, solicit, divert, take away or do business with (or in any manner attempt to call-on, solicit, divert, take away or do business with) any past, present or prospective customer of the Company or in any way interfere with the relationship between any such customer and the Company. This prohibition is limited to and relates only to services competitive to iAPPS and related iAPPS implementation services. Mr. Massie is permitted to do business with and call on customers for products or services that do not compete with iAPPS; and/or 

 

 

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(b)     solicit or encourage any customer or other business relation of the Company to terminate or diminish its relationship with the Company. This prohibition is limited to and relates only to services competitive to iAPPS and related iAPPS implementation services. Mr. Massie is permitted to do business with and call on customers for products or services that do not compete with iAPPS.

 

12.     Confidentiality. Mr. Massie hereby agrees that, absent express, written authorization from the Chairperson of the Board, he shall not disclose or otherwise publicize the communications or negotiations that led to this Agreement, including any of its specific terms. This Paragraph 12 shall not apply to disclosures made to an immediate family member, domestic partner, legal counsel or financial advisor (provided that any such individual to whom disclosure is made agrees to be bound by these confidentiality obligations) or to disclosures mandated by state or federal law.

 

13.     Breach of Restrictive Covenants. Mr. Massie acknowledges and agrees that a breach by him of his obligations set forth in Paragraphs 11 or 12 constitute a material breach of this Agreement and, in addition to any other legal or equitable remedy available to Bridgeline, will entitle Bridgeline to recover, and/or stop providing, the payments or other benefits set forth in Paragraph 3, 5, 6 and 7 above.

 

14.     Release.

 

 

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(a)     In consideration of the covenants set forth herein, and more particularly the payments to Mr. Massie specified in Paragraphs 3, 5, 6 and 7 above, and other good and valuable consideration, Mr. Massie, his respective agents, heirs, legatees, successors and assigns (collectively hereinafter the “Massie-Releasors”), hereby irrevocably and unconditionally release, remise, and forever discharge Bridgeline (as defined in Paragraph 1 above) and all persons acting by, through, under or in concert with it, including but not limited to its officers, employees, attorneys and/or agents (collectively hereinafter the “Massie-Releasees”), all both individually and in their official capacities, of and from any and all actions, causes of actions, suits, debts, charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages and expenses (including attorneys’ fees and costs actually incurred), of any nature whatsoever, in law or equity, whether existing or contingent, known or unknown, suspected or unsuspected (collectively “Claims”), which the Massie-Releasors previously had, now have, or hereafter may have against the Bridgeline-Releasees from the beginning of time to the Effective Date of this Agreement. The Massie-Releasors expressly acknowledge and agree that this Agreement is intended to bar any Claims against the Bridgeline-Releasees seeking any form of relief including, without limitation, equitable relief (whether declaratory, injunctive or otherwise), the recovery of any damages or any other form of monetary recovery whatsoever (including, without limitation, back pay, overtime pay, front pay, compensatory damages, emotional distress damages, multiple damages, punitive damages, attorneys’ fees, interest and any other costs) against the Bridgeline-Releasees from the beginning of time up through the Effective Date of this Agreement. 

 

 

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(b)     Without limitation to the generality of the foregoing terms, the Massie-Releasors hereby irrevocably and unconditionally release, remise and forever discharge the Bridgeline-Releasees for any and all:

 

(i)     Claims under any state or federal discrimination, fair employment practices or other employment related statute, regulation or executive order (as they may have been amended through the Effective Date of this Agreement) prohibiting retaliation, discrimination or harassment based upon any protected status including, without limitation, race, color, creed, religion, national origin, ancestry, age, sex, sexual harassment, handicap or disability, genetic carrier status, veteran status or sexual orientation, any military service or application for military service, or any other category protected under federal or state law. Without limitation, specifically included in this paragraph are any Claims arising under the federal Age Discrimination in Employment Act (“ADEA”), the Older Workers Benefit Protection Act (“OWBPA”), the Civil Rights Acts of 1866 and 1871, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Equal Pay Act, the Americans With Disabilities Act, the Massachusetts Fair Employment Practices Law (Massachusetts General Laws Chapter 151B), and any other similar Massachusetts or other state statute;

 

(ii)     Claims under any other federal employment related statute, regulation or executive order (as they may have been amended through the Effective Date of this Agreement) relating to wages, overtime, vacation accrual or pay, hours, whistleblowing, or any other terms and conditions of employment. Without limitation, specifically included in this paragraph are any Claims arising under the Fair Labor Standards Act, the Family and Medical Leave Act of 1993, the National Labor Relations Act and the Employee Retirement Income Security Act of 1974 and any other similar Massachusetts or other state statute. The Massie-Releasors specifically acknowledge that they are waiving any Claims for unpaid wages under these and other Laws; 

 

 

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(iii)     Claims under any other state employment related statute, regulation or executive order (as they may have been amended through the Effective Date of this Agreement) relating to wages, overtime, vacation accrual or pay, hours, whistleblowing or any other terms and conditions of employment. Without limitation, specifically included in this paragraph are any Claims arising under the Massachusetts Payment of Wages Law (Massachusetts General Laws Chapter 149, §§148, 150), Massachusetts General Laws Chapter 149 in its entirety, Massachusetts General Laws Chapter 151 in its entirety (including but not limited to the minimum wage and overtime provisions) and any other similar Massachusetts or other state statute. The Massie-Releasors specifically acknowledge that they are waiving any Claims for unpaid wages under these and other Laws; 

 

(iv)     Claims under any state or federal common law theory including, without limitation, wrongful discharge, whistleblowing, breach of express or implied contract, promissory estoppel, unjust enrichment, breach of a covenant of good faith and fair dealing, violation of public policy, defamation, interference with contractual relations, assault and battery, intentional or negligent infliction of emotional distress, loss of consortium, invasion of privacy, misrepresentation, deceit, fraud or negligence; and 

 

(v)     Any other Claims arising under any state, federal or local law.

 

(c)     The Massie-Releasors not only release and discharge the Bridgeline-Releasees from any and all claims as stated above that they could make on Mr. Massie’s behalf or on behalf of others, but also those claims that might be made by any other person or organization on his behalf, and the Massie-Releasors specifically waive any right to recover any damage awards as a member of any class in a case in which any claim(s) against the Bridgeline-Releasees are made.

 

 

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(d)     Mr. Massie expressly acknowledges that this Agreement is intended to include in its effect, without limitation, all Claims which have arisen and of which he knows or does not know, should have known, had reason to know or suspects to exist in his favor as of the Effective Date, and that this Agreement contemplates the extinguishment of any such Claims.

 

(e)     Notwithstanding the foregoing, this Paragraph 14 shall not release Bridgeline from any obligation expressly set forth in this Agreement or from any claim that, as a matter of law, cannot be waived. 

 

(f)     The general release in this Paragraph 14 is not affected or limited by the recitation of the specific releases in this Paragraph 14.

 

(g)     In consideration of the covenants set forth herein, and more particularly the terms set forth in this agreement, and other good and valuable consideration, the Company, including its Board, hereby irrevocably and unconditionally release, remise, and forever discharge Thomas L. Massie, including his agents, heirs, legatees, successors and assigns, (collectively “Massie Releasees”) of and from any and all actions, causes of actions, suits, debts, charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages and expenses (including attorneys’ fees and costs actually incurred), of any nature whatsoever, in law or equity, whether existing or contingent, known or unknown, suspected or unsuspected (collectively “Claims”), which the Company or its Board previously had, now have, or hereafter may have against the Massie Releasees from the beginning of time to the Effective Date of this Agreement. The Company and Board expressly acknowledge and agree that this Agreement is intended to be a General Release of Claims and to bar any and all Claims against the Massie Releasees seeking any form of relief including, without limitation, equitable relief (whether declaratory, injunctive or otherwise), the recovery of any damages or any other form of monetary recovery whatsoever against the Massie Releasees from the beginning of time up through the Effective Date of this Agreement.    

 

 

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15.     OWBPA. Because Mr. Massie is at least forty (40) years of age, he has specific rights under the ADEA and the OWBPA, which prohibit discrimination on the basis of age. 

 

(a)     The release in Paragraph 14 is intended to release any Claims Mr. Massie may have against Bridgeline alleging discrimination on the basis of age under the ADEA, OWBPA and any other state, federal, or local law. Notwithstanding anything to the contrary in this Agreement, the release in Paragraph 14 does not cover rights or Claims under the ADEA that arise from acts, omissions, transactions or occurrences that occur after the Effective Date.

 

(b)     It is Bridgeline’s desire and intent to make certain that Mr. Massie understands the provisions and effects of this Agreement. To that end, Bridgeline hereby advises Mr. Massie to consult with legal counsel prior to signing this Agreement for the purpose of reviewing the terms of this Agreement, and Mr. Massie acknowledges he has, in fact, been represented by counsel in connection with the review, negotiation and execution of this Agreement.

 

(c)     Consistent with the OWBPA, Bridgeline is providing Mr. Massie with twenty-one (21) days to consider and accept the terms of this Agreement prior to signing it; provided, however, that Mr. Massie may waive all or part of this review period if he chooses. Mr. Massie acknowledges that any changes to this Agreement, material or otherwise, will not restart the twenty-one (21) day review period. In addition, Mr. Massie may rescind his assent to this Agreement if, within seven (7) days after he signs this Agreement, he delivers a notice of rescission to Steven D. Weatherhead, Marathas Barrow & Weatherhead LLP, One Financial Center, 15th Floor, Boston, MA 02111. To be effective, such rescission must be hand delivered or postmarked within the seven (7) day period and sent by certified mail, return receipt requested to the above-referenced address. Mr. Massie understands that such seven-day period is mandatory and may not be waived. If Mr. Massie’s written notice that he is exercising his right of revocation is not hand delivered or postmarked within the seven-day revocation period, this Agreement will automatically become effective as of the Effective Date. Mr. Massie further understands that the Agreement does not become effective or enforceable and that no payment will be made under the Agreement until the seven-day revocation period has expired. 

 

 

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(d)     Nothing in the general waiver and release set forth in Section 14 shall be deemed to prohibit Mr. Massie from challenging the validity of this release or from filing a charge or complaint of employment-related discrimination, harassment, or retaliation or from participating in any investigation or proceeding before any federal, state or local court or administrative agency. However, the release in Paragraph 14 does prohibit Mr. Massie from seeking or receiving monetary damages or other individual-specific relief in connection with any such charge or complaint. Further, nothing in this Agreement shall be deemed to limit Bridgeline’s right to seek immediate dismissal of such charge or complaint on the basis that Mr. Massie’s signing of this Agreement constitutes a full release of any individual rights under applicable law, or Bridgeline’s right to seek restitution or other legal remedies to the extent permitted by law of the economic benefits provided to Mr. Massie under this Agreement in the event that he successfully challenges the validity of this release and prevails in any claim under applicable law. 

 

 

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16.     Non-Disparagement. Mr. Massie and the current members of the Board agree that for twelve (12) months after the Resignation Date they will not make any statements that are disparaging about or adverse to the business interests of the other or which are intended to harm the reputation of the other, including, but not limited to, any statements that disparage any the reputation of the other or any product, service, finances, employees, officers, directors, capability or any other aspect of the business of Company. 

 

17.     Entire Agreement/Modifications. This Agreement sets forth the entire agreement between the Parties with respect to Mr. Massie’s employment with and separation from the Company, and supersedes any and all prior oral and/or written agreements between the Parties relating to Mr. Massie’s employment with and separation from the Company, including (without limitation) the Employment Contract; provided that Section 2.3(a) (confidentiality) and Sections 2.4 to 2.6 (inventions and original works) of the Employment Contract shall remain in full force and effect. No variations or modifications to this Agreement shall be deemed valid unless reduced to writing and signed by the Parties. 

 

18.     Governing Law/Venue/Mediation/Arbitration. The validity, interpretation and performance of this Agreement and any and all other matters relating to Mr. Massie’s employment with and separation from the Company, shall be governed by and construed in accordance with the internal laws of the Commonwealth of Massachusetts, without giving effect to conflict of law principles. Both parties agree that any action, demand, claim or counterclaim relating to (a) Mr. Massie’s employment and separation, and/or (b) the terms and provisions of this Agreement or to its breach, must submitted to mandatory non-binding Mediation to be held before a mutually agreed-upon neutral in Boston, Massachusetts within thirty (30) days of a written request by any party articulating the basis of the dispute, violation or breach. If mediation fails to achieve a resolution, the dispute shall be submitted to binding Arbitration in Boston, Massachusetts or at a location as otherwise mutually agreed. Arbitration shall serve as the exclusive means of resolving any disputes relating to Mr. Massie’s employment or arising out of this agreement. Arbitration shall be filed with and administered by the American Arbitration Association in accordance with its applicable Employment Arbitration Rules, and each party hereby consents to any such disputes being so resolved fully and finally. Judgment on the award rendered in any such arbitration may be entered in any court having jurisdiction. The fees associated with Mediation and/or Arbitration shall be born equally by the parties involved.

 

 

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19.     Acknowledgement. Mr. Massie hereby acknowledges that he has read and fully understands all provisions of this Agreement, that he has been afforded sufficient time to understand the terms and effects of this Agreement, that he has engaged counsel to advise him on all of the terms and effects of this Agreement prior to executing this Agreement, that he knowingly and voluntarily is entering into and executing this Agreement, and that neither Bridgeline, nor any of its agents or representatives, have made any representations inconsistent with the terms and effects of this Agreement.

 

20.     Severability/Interpretation. If any portion or provision of this Agreement is held unconstitutional, invalid, or unenforceable, the remainder of the Agreement will be deemed severable, will not be affected, and will remain in full force and effect. The language of all the parts of this Agreement and Release shall be construed as a whole, according to its fair meaning, and not strictly for or against either party.

 

21.     Counterparts. This Agreement may be executed in two or more counterparts, by original signature or pdf signature, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

 

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IN WITNESS WHEREOF, the undersigned parties have executed this Agreement as a sealed instrument and it shall be binding upon and inure to the benefit of the heirs, successors and assigns of each of the parties hereto.

 

	
MR. THOMAS MASSIE 
	
 
	
 
	
BRIDGELINE DIGITAL, INC. 
	
 

	 	 	 	 	 
	 	 	 	 	 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:     Joni Kahn
	
 

	
 
	
 
	
 
	
Its:     Chairperson of the Board
	
 

	 	 	 	 	 
	Dated: November ____, 2015	 	 	Dated: November________, 2015	 

 

 

 

 

 14Exhibit

November 12, 2015
Mr. Jean-Michel Malek
2723 University Blvd.
Houston, TX  77005

		
	Re:
	Offer of Employment as Senior Vice President, General Counsel and Corporate Secretary

Dear Mr. Malek:
It is our pleasure to extend to you on behalf of Erin Energy Corporation (the “Company”), an offer of employment as the Company’s Senior Vice President, General Counsel and Corporate Secretary commencing as of November 16, 2015, in accordance with the terms and conditions contained in this letter agreement (the “Agreement”), the adequacy and sufficiency of which are hereby acknowledged: 
1.DUTIES. The Company requires that you be available to perform the duties of Senior Vice President, General Counsel and Corporate Secretary customarily related to these functions as may be determined and assigned by your supervisor and the Board of Directors of the Company (the “Board”) and as may be required by the Company’s constituent instruments, including its certificate or articles of incorporation, bylaws and its corporate governance, each as amended or modified from time to time, and by applicable law, including the Delaware General Corporation Law.  Subject to the terms of this Agreement, the Company shall have the right, to the extent the Company from time to time reasonably deems necessary or appropriate, to change your position or reporting relationship, and to expand or reduce your duties and responsibilities. You will report to the Chief Executive Officer and you agree to devote as much time as is necessary to discharge and perform completely the duties described in this Section 1, and perform such other duties as your supervisor and the Board may from time to time assign to you.  The location of your employment shall be the Company’s office in Houston, Texas.  The Company will, at the discretion of your supervisor, require you to travel frequently to Africa.  
2.TERM. The term of this Agreement shall commence on November 16, 2015, and shall continue until your employment is terminated by the Company or by you. 
3.COMPENSATION. For all services to be rendered by you to the Company in any capacity hereunder, the Company agrees to pay you the following compensation:
		
	a.
	During the term of your employment with the Company you will receive a base salary of US$291,000.00 per annum (the “Base Salary”), paid in arrears and in equal installments in accordance with the customary payroll practices of the Company.  

		
	b.
	The Company will recommend that the Board approve for you to receive an option to purchase 133,334 shares of the Company’s common stock (the “Option”) under the Company’s 2009 Equity Incentive Plan (the “Plan”).  The Option will be evidenced by an Option Agreement as contemplated by the Plan, which will govern the Option, notwithstanding any other provision in this Agreement.  The exercise price of the Option will be the closing price of the Company’s common stock on your date of hire.  The Option will vest in equal 1/3 annual installments on first three anniversary dates of your date of hire, subject to your continued service with the Company on such anniversary dates.

Mr. Jean-Michel Malek
Page 2 of 8

		
	c.
	The Company will recommend that the Board approve for you to receive 29,167 restricted shares of the Company’s common stock (the “Stock”) under the Plan.  The Stock will be issued pursuant to a Restricted Stock Award Agreement as contemplated by the Plan, which will govern the Stock and your rights to the Stock, notwithstanding any other provision in this Agreement.  The Stock shall be restricted and subject to forfeiture to the Company if your rights to the restricted Stock do not vest under the award agreement.  Your rights to the Stock will vest with respect to 50% of the Stock on the one-year anniversary of your date of hire, and will vest with respect to the balance on the two-year anniversary of your date of hire, subject in both cases to your continued service with the Company on such anniversary date.

		
	d.
	You will be reviewed by your supervisor and the Board, not less than annually, and in connection with such review, will be eligible for a discretionary cash performance bonus each year targeted at between 0% to 100% of your then-current annual base salary, based on defined targets determined by your supervisor and the Board.  You shall also be considered for additional grants of restricted stock and options in the Board’s sole discretion.  You acknowledge that the Company is not obligated to award you any cash or equity bonus in any year.

You agree that if any payment of compensation paid to you by the Company or any affiliate, whether under this Agreement or otherwise, results in income or wages to you for federal, state, local or foreign income, employment or other tax purposes with respect to which the Company or any affiliate has a withholding obligation, the Company and its affiliates are authorized to withhold from such payment and any other cash, stock, property or other remuneration then or thereafter payable to you in any capacity any tax required to be withheld by reason of such income or wages.
4.    EMPLOYEE BENEFITS
		
	a.
	You shall be eligible to participate in the employee benefit plans, programs and policies maintained by the Company for similarly situated employees in accordance with the terms and conditions of such plans, programs, and policies as in effect from time to time.

		
	b.
	In accordance with and subject to the terms of the Company’s expense reimbursement policy, the Company shall pay or reimburse you for reasonable expenses actually incurred or paid by you in the performance of your services hereunder upon the presentation of expense statements or vouchers or such other appropriate supporting information as the Company may reasonably require of you.  To the extent that a reimbursement amount is subject to section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the rules and regulations issued thereunder by the Department of Treasury and the Internal Revenue Service (“Section 409A”) the Company will pay you the reimbursement amount due, if any, in any event before the last day of your taxable year following the taxable year in which the expense was incurred.  Your rights to any reimbursements are not subject to liquidation or exchange for another benefit.  The amount of expense reimbursements for which you are eligible during any taxable year will not affect the amount of any expense reimbursements for which you are eligible in any other taxable year.

		
	c.
	You will be entitled to up to 28 days of paid time off  per annum (pro-rated for partial years of service) in addition to the normal statutory holidays, provided, however, that vacation is to be taken at such times and intervals as may be agreed by the Company having regard to your workload and needs of the Company.

Mr. Jean-Michel Malek
Page 3 of 8

		
	d.
	You shall be entitled to the benefit of the indemnification provisions contained in the bylaws of the Company, as the same may be amended.

5.    CONFIDENTIALITY. You acknowledge that, in order for the intents and purposes of this Agreement to be accomplished, you will necessarily be obtaining access to certain confidential information concerning the Company and its affairs, including, but not limited to business methods, information systems, financial data and strategic plans which are unique assets of the Company (“Confidential Information”). In accepting this offer, you covenant not to, either directly or indirectly, in any manner, utilize or disclose to any person, firm, corporation, association or other entity any Confidential Information.  The obligations set forth in this paragraph shall survive any termination of this Agreement and your employment relationship with the Company.
6.    NON-COMPETE; NON-SOLICIT.  During the period of your employment with the Company and thereafter during the one-year period which starts on the date of the termination of your employment with the Company (the “Restricted Period”), you covenant and agree that, in connection with the business operations and prospective interests of the Company on the date of your termination as an employee of the Company, you shall not, directly or indirectly, own any interest in, manage, control, participate in, consult with, render services for, or in any manner engage in any businesses in competition with the Company or materially adverse to the Company (unless the Board shall have authorized such activity and the Company shall have consented thereto in writing). Investments in less than 5% of the outstanding securities of any class of the Company subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended, shall not be prohibited by this section. For purposes of this Section 6, the term “Company” shall include the Company and any of its affiliates or subsidiaries or any company in which it is a minority shareholder or a joint venture partner. For purposes of this Section, the term “businesses” shall mean any enterprise, commercial venture, or project involving petroleum exploration, development, or production activities in the same geographic areas as the Company’s activities during the period of your employment.  Further, during the period of your employment with the Company and thereafter during the Restricted Period, you covenant and agree that you will not directly or indirectly through another entity induce or otherwise attempt to influence any employee of the Company to leave the Company’s employment or in any way interfere with the relationship between the Company and any employee thereof. Further, you will not induce or attempt to induce any customer, supplier, licensee, joint venture partner, shareholder, licensor or other business relation of the Company to cease doing business with the Company or in any way interfere with the relationship between any such customer, supplier, licensee, joint venture partner, shareholder, licensor or business relation of the Company. 
If (i) pursuant to the arbitration process described in Section 14 of this Agreement (or such other process as to which the Company and you may agree upon in writing), it is determined that you have violated the provisions of this Section, and (ii) you have received a payment and/or entitled to future payments from the Company pursuant to Section 9 of this Agreement (the aggregate amount paid and payable to you thereunder is referred to as the “Aggregate Severance Amount”), then, in addition to any other remedies that the Company may have, you shall be obligated, and hereby agree, to pay the Company, as liquidated damages, all or such other portion of the Aggregate Severance Amount as the Board, in its sole discretion, shall determine.
7.    CONFLICTS OF INTEREST; COMPLIANCE WITH LAW.  You covenant and agree that you will not receive and have not received any payments, gifts or promises and you will not engage in any employment or business enterprises that in any way conflict with your service and the interests of the Company or its affiliates. In addition, you agree to comply with the laws or regulations of any country, including, without limitation, the United States of America, having jurisdiction over you, the Company or 

Mr. Jean-Michel Malek
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any of the Company’s subsidiaries.  Further, you shall not make any payments, loans, gifts or promises or offers of payments, loans or gifts, directly or indirectly, to or for the use or benefit of any official or employee of any government or to any other person if you know, or have reason to believe, that any part of such payments, loans or gifts, or promise or offer, would violate the laws or regulations of any country, including, without limitation, the United States of America, having jurisdiction over you, the Company or any of the Company’s subsidiaries.  By signing this Agreement, you acknowledge that you have not made and will not make any payments, loans, gifts, promises of payments, loans or gifts to or for the use or benefit of any official or employee of any government or to any other person which would violate the laws or regulations of any country, including, without limitation, the United States of America, having jurisdiction over you, the Company or any of the Company’s subsidiaries. 
8.    AT-WILL EMPLOYMENT.  You should understand that your employment with the Company may be terminated by you or the Company at any time and for any reason.  No provision of this Agreement or any other agreement with the Company shall be construed to create a promise of employment for any specific period of time.  This Agreement supersedes in its entirety any and all prior agreements and understandings concerning your employment relationship with the Company, whether written or oral.  
9.    TERMINATION.
		
	a.
	With or without cause, you and the Company may each terminate this Agreement at any time after thirty (30) days advance written notice, and the Company will be obligated to pay you the compensation and expenses due up to the date of your Separation from Service.  Notwithstanding the foregoing sentence, the Company will pay to you an amount equal to the Base Salary plus target annual bonus as determined by the Board for the year in which Separation from Service occurs (the “Separation Payment”) if you incur a Separation from Service due to your termination by the Company without “Cause” and shall also provide the benefits described in Section 9.b. below, and immediately accelerate by twelve (12) months the vesting of all outstanding Company restricted stock and options exercisable for Company Stock then held by you, with all vested Company options held by you (including accelerated options) remaining exercisable for a period of twelve (12) months following your date of Separation from Service, in exchange for a full and complete release of claims against the Company, its affiliates, officers and directors in a form reasonably acceptable to the Company (the “Release”),  which Release has become irrevocable.  For purposes of this provision, “Cause” means your (i) conviction of, or plea of nolo contendere to, a felony or any other crime involving moral turpitude; (ii) fraud on or misappropriation of any funds or property of the Company or any of its affiliates, customers or vendors; (iii)  willful violation of any applicable law, rule or regulation (other than minor traffic violations or similar offenses), or breach of fiduciary duty; (iv) willful failure to perform your responsibilities in the best interests of the Company or any of its affiliates; (v) illegal use or distribution of drugs; (vi) material violation of any rule, regulation, procedure or policy of the Company or any of its affiliates; or (vii) material breach of any provision of this Agreement or any other employment, non-disclosure, non-competition, non-solicitation or other similar agreement executed by you for the benefit of the Company or any of its affiliates, all as determined by the Board or the Company’s affiliate (as the case may be), which determination will be conclusive.  The Separation Payment is intended to qualify as separation pay due to involuntary Separation from Service under Treasury Regulation §1.409A-1(b)(9)(iii).  To the extent the Separation Payment, or any portion thereof, so qualifies or is otherwise exempt from the requirements of Section 409A, such amount shall be paid in 12 equal monthly installments on the last day of each of the first 12 months following the month of your Separation from Service, subject 

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to the Release becoming irrevocable.  If all or any portion of the Separation Payment does not qualify as separation pay due to involuntary Separation from Service under Treasury Regulation §1.409A-1(b)(9)(iii) and is not otherwise exempt from the requirements of Section 409A such amount shall be paid as follows:  (a) if you are not a Specified Employee, such amount shall be paid in 12 equal monthly installments on the last day of each of the first 12 months following the month of your Separation from Service or (b) if you are a Specified Employee, such amount shall be paid in 6 monthly installments beginning the date that is six months following the date of your Separation from Service (and the first payment shall include all amounts that would have been paid to you earlier under this section had you not been a Specified Employee).  For purposes of this Agreement, the terms “Separation from Service” and “Specified Employee” have the meanings ascribed to those terms in Section 409A.
		
	b.
	If (i) your employment with the Company is terminated by the Company without “Cause” as described in Section 9(a), (ii) you are an active participant in the Company’s group medical plan (the “Group Medical Plan”) on the date of your employment terminates, (iii) you timely elect to continue that Group Medical Plan coverage under section 4980B of the Code (“COBRA Continuation Coverage”), and (iv) you execute and do not revoke the Release, the Company will reimburse you, the excess, if any, of the amount you pay to the Company for such COBRA Continuation Coverage for up to the first 12 months you maintain such COBRA Continuation Coverage, above the amount of the applicable premium that you would have paid for comparable coverage during such 12 month period if you had remained an employee of the Company during such 12 month period.  Any reimbursements by the Company to you required under this Section 9.b shall be made on the last day of each month you pay the amount required by this Section 9.b to the Company for such COBRA Continuation Coverage, for up to the first 12 months of COBRA Continuation Coverage.  If you are a Specified Employee and the benefits specified in this Section 9.b are taxable to you and not otherwise exempt from Section 409A, the following provisions shall apply to the reimbursement or provision of such benefits.  Any amounts to which you would otherwise be entitled under this Section 9.b during the first six months following the date of your Separation from Service shall be accumulated and paid to you on the date that is six months following the date of your Separation from Service.  Except for any reimbursements under the applicable group health plan that are subject to a limitation on reimbursements during a specified period, the amount of expenses eligible for reimbursement under this Section 9.b, or in-kind benefits provided, during your taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year of yours.  Any reimbursement of an expense described in this Section 9.b shall be made on or before the last day of your taxable year following your taxable year in which the expense was incurred.  Your right to reimbursement or in-kind benefits pursuant to this Section 9.b shall not be subject to liquidation or exchange for another benefit.  Subject to your Group Medical Plan COBRA Coverage Continuation rights under section 4980B of the Code, the benefits listed in this Section 9.b shall be reduced to the extent benefits of the same type are received by you, your spouse or any eligible dependent from any other person during such period, and provided, further, that you shall have the obligation to notify the Company that you or they are receiving such benefits.

		
	c.
	Notwithstanding any provision in this Agreement to the contrary, if you have not delivered to the Company an executed Release, which Release has become irrevocable, on or before the sixtieth (60th) day after the date of your Separation from Service, you shall forfeit all of the payments and benefits described in this Section 9 and shall be obligated to repay any such amounts (or the value thereof) that were provided prior to such time.

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10.    EFFECT OF WAIVER.  The waiver by either party of the breach of any provision of this Agreement shall not operate as or be construed as a waiver of any subsequent breach thereof. 
11.    NOTICE.  Any and all notices referred to herein will be sufficient if furnished in writing at the addresses specified on the signature page hereto or, if to the Company, to the Company’s address as specified in filings made by the Company with the U.S. Securities and Exchange Commission. 
12.    GOVERNING LAW. This Agreement will be interpreted in accordance with, and the rights of the parties hereto will be determined by, the laws of the State of Texas without reference to that state’s conflicts of laws principles. 
13.    ASSIGNMENT. The rights and benefits of the Company under this Agreement will be transferable, and all the covenants and agreements hereunder shall inure to the benefit of, and be enforceable by or against, its successors and assigns.  Your duties and obligations under this Agreement are personal and therefore you may not assign any right or duty under this Agreement without the prior written consent of the Company. 
14.    ARBITRATION AND GOVERNING LAW. ANY UNRESOLVED DISPUTE OR CONTROVERSY BETWEEN YOU AND THE COMPANY ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT SHALL BE SETTLED EXCLUSIVELY BY ARBITRATION, CONDUCTED IN ACCORDANCE WITH THE RULES OF THE AMERICAN ARBITRATION ASSOCIATION THEN IN EFFECT. THE PARTIES SHALL EQUALLY DIVIDE AND PAY THE ADMINISTRATIVE COSTS OF ANY ARBITRATION UNDER THIS AGREEMENT, INCLUDING THE ARBITRATOR’S FEES. THE ARBITRATOR SHALL NOT HAVE THE AUTHORITY TO ADD TO, DETRACT FROM, OR MODIFY ANY PROVISION HEREOF. THE ARBITRATOR SHALL HAVE THE AUTHORITY TO ORDER REMEDIES WHICH YOU COULD OBTAIN IN A COURT OF COMPETENT JURISDICTION. A DECISION BY THE ARBITRATOR SHALL BE IN WRITING AND WILL BE FINAL AND BINDING. JUDGMENT MAY BE ENTERED ON THE ARBITRATOR’S AWARD IN ANY COURT HAVING JURISDICTION. THE ARBITRATION PROCEEDING SHALL BE HELD IN HOUSTON, TEXAS, UNITED STATES OF AMERICA. NOTWITHSTANDING THE FOREGOING, THE COMPANY SHALL BE ENTITLED TO SEEK INJUNCTIVE OR OTHER EQUITABLE RELIEF FROM ANY COURT OF COMPETENT JURISDICTION, WITHOUT THE NEED TO RESORT TO ARBITRATION IN THE EVENT THAT YOU VIOLATE SECTIONS 5, 6 OR 7 OF THIS AGREEMENT. THIS AGREEMENT SHALL IN ALL RESPECTS BE CONSTRUED ACCORDING TO THE LAWS OF THE STATE OF TEXAS. 
15.    MISCELLANEOUS. If any provision of this Agreement will be declared invalid or illegal, for any reason whatsoever, then, notwithstanding such invalidity or illegality, the remaining terms and provisions of the this Agreement shall remain in full force and effect in the same manner as if the invalid or illegal provision had not been contained herein. 
16.    ARTICLE HEADINGS. The article headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 
17.    COUNTERPARTS. This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one instrument. Facsimile execution and delivery of this Agreement is legal, valid and binding for all purposes. 
18.    ENTIRE AGREEMENT. Except as provided elsewhere herein, this Agreement sets forth the entire agreement of the parties with respect to its subject matter and supersedes all prior agreements, 

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promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party to this Agreement with respect to such subject matter.  

[Remainder of Page Left Blank Intentionally]

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If you are in agreement with the terms set forth herein, please sign below. The offer set forth herein is in effect until the close of business at our Houston, Texas office on November 16, 2015.
Yours truly,
ERIN ENERGY CORPORATION
By:    s/ Kase Lukman Lawal            
Dr. Kase Lukman Lawal
Chief Executive Officer

Agreed and Accepted this   16th   day of November, 2015
	
	
	/s/ Jean-Michel Malek

	(Signature)

	 

	Jean-Michel Malek

	(Print Name)

Signature Page To Offer Letter

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