Severance Agreement - Harken Energy Corp. and Jorge Delgado Jr.
HARKEN ENERGY CORPORATION SEVERANCE AGREEMENT THIS SEVERANCE AGREEMENT (the "Agreement") is made and entered into this 10/th/ day of June, 2002 by and between HARKEN ENERGY CORPORATION, a Delaware corporation, whose principal office is 580 WestLake Park Blvd., Suite 600, Houston, Texas 77079 ("the Company") and JORGE DELGADO JR. an individual employee of the Company, whose home address is 9311 Swansea Bay Drive, Spring, Texas 77379, (the "Employee"). WHEREAS, the Employee is, as of the Date here of, in the employ of the Company and is a employee on whom the Company relies and whom the Company desires to retain in its employment; and WHEREAS, the Company and Employee are entering into this Agreement in order to provide inducement to Employee to remain with the Company by providing to Employee assurance of additional severance that would be paid by the Company to Employee should the Company terminate Employee's employment during the term of this Agreement. NOW THEREFORE, for and in the mutual considerations recited and acknowledged by both parties hereto, the Company and the Employee agree as follows: 1. Severance Upon Involuntary Termination: In the event that Employee is Involuntarily terminated by the Company during the Term of this Agreement, then the Company will pay to Employee a sum of money, IN ADDITION TO any and all severance pay and related compensation such Employee is entitled to receive under the policies in effect by the Company on the date of this Agreement, the additional amount equal to six (6) months salary at Employee's rate of pay as of the date of this Agreement. The payment of this Additional Severance will become due to Employee from the Company upon any event of involuntarily termination during the Term, whether it be with or without cause, or an event of individual involuntary termination or in connection with a layoff, plant closing or force reduction. 2. Voluntary Termination: In the event that Employee elects for any reason to voluntarily terminate his/her employment with the Company during the Term, then in such event Employee will not be entitled to receive the Additional Severance and will be only entitled to receive such severance and compensation benefits, if any, Employee may be entitled to receive pursuant to the policies of the Company in effect as of that date of voluntarily termination. <PAGE> 3. Term of Agreement: Unless otherwise agreed to in writing by the parties hereto, this Agreement shall be in effect from the date first set forth above for one (1) calendar year. At the expiration of the Term this Agreement may be extended, modified or renegotiated only upon the mutual written agreement of both. 4. No Guaranty of Employment: This Agreement shall not constitute nor be construed nor interpreted as any guarantee nor contract for continued employment of Employee with the Company, any subsidiary or any successor company. The parties stipulate that as to any rights of ongoing or future employment, that the Employee is an employee at will. 5. Parties: This Agreement shall be binding on the parties hereto and shall further be binding upon the successors, assigns, parent corporations or subsidiary corporations of the Company, and shall further inure to the benefit of the heirs and assigns of Employee. 6. Governing Law: This Agreement shall be governed by and interpreted in accordance with the laws of the State of Texas, without giving effect to the principles of conflicts of law thereof. 7. Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and replaces, restates in full and supersedes all other prior agreements and understandings, both written and oral. IN WITNESS whereof this Agreement has been executed the day and year first above written. HARKEN ENERGY CORPORATION (the Company) By: /s/ Anna Williams ----------------------------------- Name: Anna Williams Its: Executive Vice President and CFO JORGE DELGADO JR. (the Employee) /s/ Jorge Delgado Jr. --------------------------------------- 2