-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KAjezXB92Hxa2L6Em3N7onCAqoEeUgVX2YbPk7wG3naKtbBMrUImzVA8KFBTXBIr kVSsa/dRuhTMI5srJ1XkDQ== 0001144204-10-003865.txt : 20100127 0001144204-10-003865.hdr.sgml : 20100127 20100127163744 ACCESSION NUMBER: 0001144204-10-003865 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20100121 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20100127 DATE AS OF CHANGE: 20100127 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ZION OIL & GAS INC CENTRAL INDEX KEY: 0001131312 STANDARD INDUSTRIAL CLASSIFICATION: OIL AND GAS FIELD EXPLORATION SERVICES [1382] IRS NUMBER: 200065053 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-33228 FILM NUMBER: 10550993 BUSINESS ADDRESS: STREET 1: 6510 ABRAMS RD STREET 2: SUITE 300 CITY: DALLAS STATE: TX ZIP: 75231 BUSINESS PHONE: 2142214610 MAIL ADDRESS: STREET 1: 6510 ABRAMS RD STREET 2: SUITE 300 CITY: DALLAS STATE: TX ZIP: 75231 8-K 1 v172445_8k.htm

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
 
January 21, 2010
____________________________________
Date of Report (Date of earliest event reported)
 
Zion Oil & Gas, Inc.
_______________________________________
(Exact name of registrant as specified in its charter)
 
Delaware
______________________________
(State or other jurisdiction of incorporation)
 

 

333-131875
(Commission File Number)
20-0065053
(IRS Employer Identification No.)
 

 
 
 
 
6510 Abrams Road, Suite 300, Dallas, TX 75231
_____________________________________
(Address of Principal Executive Offices)
 
Registrant's telephone number, including area code: 214-221-4610
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o
Pre-commencement communications pursuant to 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
 

 
 
 
On January 21, 2009, Zion Oil & Gas, Inc. (the “Company”) and John Brown entered into an Employment Agreement (the “Agreement”) pursuant to which Mr. Brown will serve as the Executive Chairman of the Company’s Board of Directors. The Agreement was entered into following the scheduled termination on December 31, 2009 of the Chairman of the Board Retention Agreement under which Mr. Brown served as Chairman of the Board since January 1, 2008. Since the Company’s establishment in April of 2000, Mr. Brown has continuously served as Chairman of the Board.
 
The following summary of certain provisions of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the agreement, a copy of which is filed as Exhibit 10.1 to this Form 8-K, and is incorporated herein by reference.
 
The Agreement has an initial term that extends through December 31, 2012; thereafter, the agreement provides that it is to be renewed automatically for successive two year terms unless either party shall advise the other 90 days before expiration of the initial or renewed term of its intention to not renew the agreement beyond its then scheduled expiration date. Under the agreement, Mr. Brown will be paid an annual salary of $165,000, payable monthly (notwithstanding which, consistent with the current arrangement with the Company's senior officers where only up to 80% of their respective salaries are paid (up to a maximum of $15,500 per month) with the remainder deferred until such time as the Company's cash position permits payment of salary in full without interfering with the Company's ability to pursue its plan of operations. Accordingly, Mr. Brown has agreed to be paid up to $11,000 per month with the remaining amounts due on account of his salary to be deferred as described. Mr. Brown will also be paid a sign up bonus in the amount of $25,000. Mr. Brown can terminate the employment agreement and the relationship thereunder at any time upon 60 business days' notice. If during the initial term the Company were to terminate the agreement, for any reason other than "Just Cause" (as defined the Agreement), then the Company is to pay to Mr. Brown the salary then payable under the agreement through the longer of (i) the scheduled expiration of the initial term as if the agreement had not been so terminated or not renewed or (ii) twelve months, as well as all bonuses and benefits earned and accrued through such date. If the Company were not to renew the term of the agreement after the Initial term or were to terminate the agreement during any renewal term, for any reason other than "Just Cause" (as defined the Agreement), then the Company is to pay to Mr. Brown an amount equal to the base salary, if any, then payable to him for a period of twelve months as if the Agreement had not been so terminated or had been renewed. Mr. Brown may also terminate the agreement for "Good Reason" (as defined in the Agreement), whereupon he will be entitled to the same benefits as if the Company had terminated the agreement for any reason other than Just Cause. The Agreement provides for customary protections of the Company's confidential information and intellectual property. The Agreement also provides that in connection with his services during the initial term of the Agreement and subject to the entry into an Option Award Agreement under the Company's 2005 Stock Option Plan (the "Plan"), Mr. Brown be awarded options at a per share exercise price of $0.01 to purchase 20,000 shares of the Company's common stock under the Plan, which options would vest at the rate of 5,000 shares at the termination of each calendar 90 day period, beginning March 31, 2010 until such options are vested in full. In the event of an extension of the term of the Agreement, the agreement provides that Mr. Brown be granted additional options to purchase common stock in the Company in amounts of not less than 20,000 shares per term on such terms to be agreed by the parties. On January 21, 2010, the Board authorized the entry by the Company into an Option Award Agreement pursuant to which Mr. Brown was granted options to purchase 20,000 shares (valued at $130,400) under the Plan on the terms set forth above.
 
Item 5.02(e). Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
 
The information set forth under Item 1.01 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 5.02.
 
Pursuant to the terms of the employment agreement entered into by the Company and Richard Rinberg as of December 4, 2007, the Company’s Chief Executive Officer and a director, on January 21, 2010, the Board authorized the entry by the Company into an Option Award Agreement pursuant to which Mr. Rinberg was granted options to purchase 40,000 shares (valued at $260,800) under the Plan at a per share exercise price of $0.01. The options vest at the rate of 10,000 shares at the termination of each calendar 90 day period, beginning March 31, 2010 until such options are vested in full.  Under the employment agreement with Mr. Rinberg, with respect to each year of employment under the agreement, Mr. Rinberg is entitled to be granted options under the Plan for 40,000 shares of Common Stock.
 
Item 9.01(d): Exhibits
 
10.1 Personal Employment Agreement dated as of January 21, 2010 between Zion Oil & Gas Inc. and John Brown
 
 

 

 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereto duly authorized.
 
Date: January 27, 2010
 
Zion Oil and Gas, Inc.
 
By: /s/ Richard R. Rinberg
 
Richard R. Rinberg
Chief Executive Officer
 

 


EX-10.1 2 v172445_ex10-1.htm Unassociated Document
EMPLOYMENT AGREEMENT
 
THIS AGREEMENT is made as of January 21, 2010
 
B E T W E E N:
 
ZION OIL AND GAS INC., a Company incorporated under the laws of Delaware.
 
(the "Company")
 
and - -
 
JOHN BROWN
 
(the "Employee")
 

 
CONTEXT OF THIS AGREEMENT
 
A.                      The Company explores for oil and gas in Israel.
 
B.                       Employee has been serving as Chairman of the Board of Directors (“Board”) of the Company since April 2000 and, in January 2008, Employee and the Company entered into an agreement, which terminated on December 31, 2009, pursuant to which JB served as Chairman of the Board.
 
C.                      The Company wishes to employ the Employee as Executive Chairman of the Board upon the terms and conditions as set out herein.
 
FOR VALUE RECEIVED, the sufficiency of which is acknowledged, the parties agree as follows:
 
PART 1
INTERPRETATION
 
1.1                      Definitions.  In this Agreement, the following terms shall have the following meanings:
 
"Agreement" means this agreement and all schedules attached hereto and all amendments made hereto and thereto in writing by the parties.
 
"Business Day" means a day other than a Saturday, Sunday or statutory holiday in the U.S.A.
 
 
 

 
 
2
 
 
"Person" includes individuals, companies, limited partnerships, general partnerships, joint stock companies, joint ventures, associations, companies, trusts or other organizations, whether or not legal entities.
 
1.2                      Entire Agreement. This Agreement together with the agreements and other documents to be delivered pursuant to this Agreement (or other agreements pertaining to employee benefits, including, without limitation, stock option and bonus plan agreements), constitute the entire agreement between the parties pertaining to the subject matter of this Agreement and supersede all prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties and there are no warranties, representations or other agreements between the parties in connection with the subject matter of this Agreement except as specifically set forth in this Agreement and any document delivered pursuant to this Agreement.  No supplement, modification or waiver or termination of this Agreement shall be binding unless executed in writing by the party to be bound thereby.
 
1.3                      Sections and Headings.  The division of this Agreement into parts and sections and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement.  The terms "this Agreement", "hereof", "hereunder" and similar expressions refer to this Agreement and not to any particular article, section or other portion hereof and include any agreement or instrument supplemental or ancillary hereto.  Unless something in the subject matter or context is inconsistent therewith, references herein to parts and sections are to parts and sections of this Agreement.
 
1.4                      Number & Gender.  Words importing the singular number only shall include the plural and vice versa and words importing the masculine gender shall include the feminine and neuter genders and vice versa.
 
1.5                      Applicable Law.  This Agreement shall be construed and enforced in accordance with the laws of the State of Texas applicable therein.
 
1.6                      Currency.  Unless otherwise specified, all references herein to currency shall be references to currency of the United States.
 
1.7                      Calculation of Time.  When calculating the period of time within which or following which any act is to be done or step taken pursuant to this Agreement, the date which is the reference date in calculating such period shall be excluded.  If the last day of such period is a non Business Day, the period in question shall end on the next Business Day.
 
PART 2
APPOINTMENT AND DUTIES
 
2.1                      Appointment.  The Company agrees to employ the Employee as the Executive Chairman of the Board upon the terms and conditions contained herein and the Employee accepts such appointment.
 
2.2                      Term.  The employment of the Employee hereunder shall commence effective January 1, 2010 and shall continue for an initial term until December 31, 2012 (the “Initial Term”) unless terminated in accordance with the provisions of this Agreement.  This Agreement shall be renewed for successive two year terms (each a “Renewal Term”) unless the Company or Employee indicates in writing, more than 90 days prior to the termination of this Initial term or any Renewal term, that it does not intend to renew this Agreement.
 
 
 

 
 
3
 
 
2.3                      Duties and Reporting.  The Employee will report directly to the Board of the Company and shall carry out all duties and responsibilities which are from time to time assigned to him by the Board.
 
PART 3
BENEFITS & EXPENSES
 
3.1           Gross Salary. During the term hereof, and subject to the performance of the services required to be performed hereunder by Employee, the Company shall pay to the Employee for all services rendered hereunder, as salary, payable not less often than once per month and in accordance with the Company's normal and reasonable payroll practices, a monthly gross amount equal to $ 13,750 (the "Gross Salary"). The Gross Salary shall be reviewed periodically and may be favorably adjusted along with other benefits accordingly.

Gross Salary shall be deferred in an amount equal to the percentage being paid by the Company to its other senior executive officers from time to time. Currently, the Company pays 80% of salaries up to the maximum amount of $15,500 monthly as gross salary to senior executive officers. The Gross Salary which is deferred shall be paid at such time and in accordance with the amount being paid to other Company senior executive officers. For the purposes of this Section 3.1 senior executive offices include the CEO and CFO.

3.2           Sign-On Bonus. Employee will receive a sign-on bonus of $ 25,000, payable as a one-time payment as soon as practicable after the signing of this agreement but no later than the firth (5th) business day thereafter, less the deductions set forth in Section 3.9 below.

3.3           Vehicle.  Company shall provide Employee with use of a vehicle and the Company shall pay for registration, gas, maintenance and insurance.

3.4           Cell Phone. Company shall provide the Employee with a cell phone and pay for its maintenance and use.

3.5           Benefits.  (i)   The Employee shall be entitled to participate in all of the Company's benefit plans generally available to its senior level employees from time to time.
 
(ii) The Employee shall be entitled to fully participate in any profit sharing plan, royalty pool, management incentive plan or similar plan or arrangement, including, but not limited to, a long term management incentive plan as described in Section 6 of Employee’s Personal Employment Agreement with the Company dated January 1, 2004, on the most favorable basis as, and at the same time as, any other senior officer or consultant of the Company in the event any such plan or arrangement is made available to them by written contract or otherwise.  Notwithstanding any other provision in this Agreement to the contrary, this Section 3.5(ii) and the rights conferred on Employee herein shall survive the termination or expiration of this Agreement. Any questions which arise as to entitlement hereunder shall be resolved in favour of the Employee.
 
 
 

 
 
4
 
 
3.6           Expenses All expenses reasonably incurred by the Employee shall be reimbursed, together with any applicable sales and goods and services taxes, by the Company within 10 Business Days after presentation by the Employee of proper invoices and receipts in keeping with the policies of the Company as established from time to time.
 
In the event that the Parties deem it in the best interest of the Company for Employee to work in the State of Israel, the Company shall pay to Employee all reasonably incurred one time moving expenses (customarily paid by companies under such circumstances) for Employee and his wife to move to the State of Israel and, upon cessation of work in the State of Israel, to move back to the United States. In addition, while the Employee resides in the State of Israel, the Company shall pay monthly rental for a residence for Employee (“Rental Expenses”) and 'per diem' expenses of $800 in the aggregate per month.
 
3.7           Options. Subject to the Employee entering into the Company's standard Employee Stock Option agreement, for services required to be performed hereunder by Employee, the Employee shall be entitled to participate in an employee stock option plan of the Company. Company shall grant to Employee under Company’s 2005 Stock Option Plan non qualified options for 20,000 shares of Common Stock of the Company, which so long as Employee remains in the employ of the Company shall vest as follows and in accordance with the terms of the Company’s standard Employee Stock Option agreement: - options for 5,000 shares shall vest at the end of each 90 day period, commencing March 31, 2010. The vested options shall be exercisable until January 31, 2020. The per share exercise price of the options shall be $0.01. In the event that this Agreement continues after the Initial Term, the Company shall grant to the Employee additional stock options which in no event shall be less than the per term amount granted herein with such other terms to be agreed upon by the parties.

3.8           Vacation. The Employee shall be entitled to an annual vacation of twenty three (23) working days at full pay. Vacation days may be accumulated for two (2) years, after which they must be used or redeemed; provided that accumulation of vacation days in excess of forty six  (46) days may be approved by the Board in its discretion. Vacation days shall be prorated for any portion of a year to the date of termination.


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

3.10          Insurance.  In lieu of Employee’s participation in the Company’s health insurance program, the Company shall reimburse Employee a monthly sum of $2,000 and Employee shall be responsible for his (and his dependents’) health insurance.

3.11          Office Allowance.  Employee frequently conducts Company business in locations other than the Company’s corporate office and outside of normal business hours. As a result, Employee requires the use of an office, secretarial services and other customary office expenses.  The Company shall therefore pay Employee a monthly office allowance of up to $3,500.

 
 

 
 
5

 
PART 4
EMPLOYEE'S COVENANTS
 
4.1           Service.  The Employee shall devote approximately seventy five percent (75%) of all his business time, attention and ability to the business of the Company and shall well and faithfully serve the Company and shall use his best efforts to promote the interests of the Company. The Employee appreciates that the Employee's duties may involve significant travel from the Employee's place of employment, and the Employee agrees to travel as reasonably required in order to fulfill the Employee's duties. The Employee may sit on boards of other companies unless there is a reasonable basis upon which the Company may deny him the right to do so.
 
4.2           Duties and Responsibilities. The Employee shall duly and diligently perform all the duties assigned to him while in the employ of the Company, and shall truly and faithfully account for and deliver to the Company all money, securities and things of value belonging to the Company which the Employee may from time to time receive for, from or on account of the Company.
 
4.3           Rules and Regulations. The Employee shall be bound by and shall faithfully observe and abide by all the rules and regulations of the Company from time to time in force which are brought to his notice including insider trading policies and underwriter lock ups, from time to time in force which are brought to his notice.
 
PART 5
CONFIDENTIAL INFORMATION AND DEVELOPMENTS
 
5.1                      "Confidential Information" means information, whether or not originated by the Employee, that relates to the business or affairs of the Company, its affiliates, clients or suppliers and is confidential or proprietary to, about or created by the Company, its affiliates, clients, or suppliers.  Confidential Information includes, but is not limited to, the following types of confidential information and other proprietary information of a similar nature (whether or not reduced to writing or designated or marked as confidential):
 
 
(i)
work product resulting from or related to work or projects performed for or to be performed for the Company or its affiliates, including but not limited to, the interim and final lines of inquiry, hypotheses,  research and conclusions related thereto and the methods, processes, procedures, analysis, techniques and audits used in connection therewith;
 
 
(ii)
computer software of any type or form and in any stage of actual or anticipated development, including but not limited to, programs and program modules, routines and subroutines, procedures, algorithms, design concepts, design specifications (design notes, annotations, documentation, flowcharts, coding sheets, and the like), source code, object code and load modules, programming, program patches and system designs;
 
 
(iii)
information relating to developments (as hereinafter defined) prior to any public disclosure thereof, including but not limited to, the nature of the developments, production data, technical and engineering data, test data and test results, the status and details of research and development of products and services, and information regarding acquiring, protecting, enforcing and licensing proprietary rights (including patents, copyrights and trade secrets);
 
 
 

 
 
6
 
 
 
(iv)
internal Company personnel and financial information, vendor names and other vendor information, purchasing and internal cost information, internal services and operational manuals, and the manner and method of conducting the Company's business;
 
 
(v)
marketing and development plans, price and cost data, price and fee amounts, pricing and billing policies, quoting procedures, marketing techniques and methods of obtaining business, forecasts and forecast assumptions and volumes, and future plans and potential strategies of the Company that have been or are being discussed; and
 
 
(vi)
all information that becomes known to the Employee as a result of employment that the Employee, acting reasonably, believes is confidential information or that the Company takes measures to protect.
 
5.2                      Confidential Information does not include:
 
 
(i)
the general skills and experience gained during the Employee's employment or engagement with the Company that the Employee could reasonably have been expected to acquire in similar employment or engagements with other companies;
 
 
(ii)
information publicly known without breach of this Agreement or similar agreements; or
 
 
(iii)
information, the disclosure of which is required to be made by any law, regulation, governmental authority or court (to the extent of the requirement), provided that before disclosure is made, notice of the requirement is provided to the Company, and to the extent of the requirement, (to the extent reasonably possible in the circumstances) the Company is afforded an opportunity to dispute the requirement.
 
5.3                              "Developments" means all discoveries, inventions, designs, works of authorship, improvements and ideas (whether or not patentable or copyrightable) and legally recognized proprietary rights (including, but not limited to, patents, copyrights, trademarks, topographies, know how and trade secrets), and all records and copies of records relating to the foregoing, that relates solely to the Company's business  and improvements and modifications to it:
 
 
(i)
result or derive from the Employee's employment or from the Employee's knowledge or use of Confidential Information;
 
 
 
 

 
 
7
 
 
 
(ii)
are conceived or made by the Employee (individually or in collaboration with others) during the term of the Employee's employment by the Company;
 
 
(iii)
result from or derive from the use or application of the resources of the Company or its affiliates; or
 
 
(iv)
relate to the business operations of or actual or demonstrably anticipated research and development by the Company or its affiliates.
 
For greater certainty, discoveries, inventions, designs, works of authorship, improvements and ideas (whether or not patentable or copyrightable) of the Employee that do not relate to the business of the Company are not the subject matter of this Agreement.
 
PART 6
NO CONFLICTING OBLIGATIONS
 
6.1                               The Employee warrants to the Company that:
 
 
(i)
the performance of the Employee's duties as an employee of the Company will not breach any agreement or other obligation to keep confidential the proprietary information of any other party; and
 
 
(ii)
the Employee is not bound by any agreement with or obligation to any other party that conflicts with the Employee's obligations as an employee of the Company or that may affect the Company's interest in the Developments.
 
6.2                               The Employee will not, in the performance of the Employee's duties as an employee of the Company:
 
 
(i)
improperly bring to the Company or use any trade secrets, confidential information or other proprietary information of any other party; or
 
 
(ii)
knowingly infringe the intellectual property rights of any other party.
 
PART 7
 
CONFIDENTIAL INFORMATION
 
7.1                      Protection of Confidential Information. All Confidential Information, whether it is developed by the Employee during the Employment Period or by others employed or engaged by or associated with the Company or its affiliates or clients, is the exclusive and confidential property of the Company or its affiliates or clients, as the case may be, and will at all times be regarded, treated and protected as such, as provided in this Agreement.
 
 
 

 
 
8
 
 
 
7.2                      Covenants Respecting Confidential Information. As a consequence of the acquisition of Confidential Information, the Employee will occupy a position of trust and confidence with respect to the affairs and business of the Company and its affiliates and clients. In view of the foregoing, it is reasonable and necessary for the Employee to make the following covenants regarding the Employee's conduct during and subsequent to the Employee's employment by the Company.
 
7.3                      Non Disclosure.  At all times during and subsequent to the Employee's employment with the Company, the Employee will not disclose Confidential Information to any Person (other than as necessary in carrying out the Employee's duties on behalf of the Company) without first obtaining the Company's consent, and the Employee will take all reasonable precautions to prevent inadvertent disclosure of any Confidential Information. This prohibition includes, but is not limited to, disclosing or confirming the fact that any similarity exists between the Confidential Information and any other information.
 
7.4                      Using, Copying, etc.  At all times during and subsequent to the Employee's employment with the Company, the Employee will not use, copy, transfer or destroy any Confidential Information (other than as necessary in carrying out the Employee's duties on behalf of the Company) without first obtaining the Company's consent, and the Employee will take all reasonable precautions to prevent inadvertent use, copying, transfer or destruction of any Confidential Information. This prohibition includes, but is not limited to, licensing or otherwise exploiting, directly or indirectly, any products or services that embody or are derived from Confidential Information or exercising judgment or performing analysis based upon knowledge of Confidential Information.
 
7.5                      Return of Confidential Information.  Within 2 Business Days after the termination of the Employee's employment on any basis and of receipt by the Employee of the Company's written request, the Employee will promptly deliver to the Company all property of or belonging to or administered by Company including without limitation all Confidential Information that is embodied in any physical or ephemeral form, whether in hard copy or on magnetic media, and that is within the Employee's possession or under the Employee's control.
 
7.6                      Obligations Continue.  The Employee's obligations under this Part 7 are to remain in effect in perpetuity.
 
PART 8
INTELLECTUAL PROPERTY
 
8.1                      Ownership.  All Developments will be the exclusive property of the Company and the Company will have sole discretion to deal with Developments. For greater certainty, all work done during the Employment Period by the Employee for the Company or its affiliates is a work for hire of which the Company or its affiliate, as the case may be, is the first author for copyright purposes and in respect of which all copyright will vest in the Company or the relevant affiliate, as the case may be.
 
 
 

 
 
9
 
 
 
8.2                      Records.  The Employee will keep complete, accurate and authentic notes, reference materials, data and records of all Developments in the manner and form requested by the Company. All these materials will be Confidential Information upon their creation.
 
8.3                      Moral Rights.  The Employee hereby irrevocably waives all moral rights arising under statute in any jurisdiction or under common law which the employee may have now or in the future with respect to the Developments, including, without limitation, any rights the Employee may have to have the Employee's name associated with the Developments or to have the Employee's name not associated with the Developments, any rights the Employee may have to prevent the alteration, translation or destruction of the Developments, and any rights the Employee may have to control the use of the Developments in association with any product, service, cause or institution. The Employee agrees that this waiver may be invoked by the Company, and by any of its authorized agents or assignees, in respect of any or all of the Developments and that the Company may assign the benefit of this waiver to any Person.
 
8.4                      Further Assurances.  The Employee will do all further things that may be reasonably necessary or desirable in order to give full effect to the foregoing. If the Employee's co-operation is required in order for the Company to obtain or enforce legal protection of the Developments following the termination of the Employee's employment, the Employee will provide that co-operation so long as the Company pays to the Employee reasonable compensation for the Employee's time at a rate to be agreed, provided that the rate will not be less than the last base salary or compensation rate paid to the Employee by the Company during the Employee's employment.
 
8.5                      Obligations Continue.  The Employee's obligations under this Part 8 are to remain in effect in perpetuity.
 
PART 9
CONSENT TO ENFORCEMENT
 
The Employee confirms that all restrictions in Part 7 and 8 are reasonable and valid and all defences to the strict enforcement thereof by the Company are waived by the Employee. Without limiting the generality of the forgoing, the Employee hereby consents to an injunction being granted by a court of competent jurisdiction in the event that the Employee is in any breach of any of the provisions stipulated in Part 7 and 8. The Employee hereby expressly acknowledges and agrees that injunctive relief is an appropriate and fair remedy in the event of a breach of any of the said provisions.
 
PART 10
WARRANTIES, COVENANTS AND REMEDIES
 
10.1                      The obligations of the Employee as set forth in Parts 6 through 9 will be deemed to have commenced as of the date on which the Employee was first employed by Company. The Employee warrants that the Employee has not, to date, breached any of the obligations set forth in any of those Sections. Any breach or threatened breach of those sections by the Employee will constitute Just Cause for immediate termination of the Employee's employment or engagement by the Company.
 
 
 

 
 
10
 
 
 
10.2                      The Employee understands that the Company has expended significant financial resources in developing its products and the Confidential Information. Accordingly, a breach or threatened breach by the Employee of any of Parts 6 through 9 could result in unfair competition with the Company and could result in the Company and its shareholders suffering irreparable harm that is not capable of being calculated and that cannot be fully or adequately compensated by the recovery of damages alone. Accordingly, the Employee agrees that the Company will be entitled to interim and permanent injunctive relief, specific performance and other equitable remedies, in addition to any other relief to which the Company may become entitled.
 
10.3                      The Employee's obligations under each of Parts 6 through 9 are to remain in effect in accordance with each of their terms and will exist and continue in full force and effect despite any breach or repudiation of this Agreement or the Employee's employment (including, without limitation, the Employee's wrongful dismissal) by the Company.
 
PART 11
TERMINATION
 
11.1                      Termination by the Employee.  The Employee may terminate this Agreement upon 60 Business Days prior written notice given by the Employee to the Company.  The Company, at its sole discretion, may elect to accept the 60 Business Days written notice or to reduce or eliminate the notice period.  In such event, the Employee's employment shall terminate on the earlier day elected by the Company.  Such election on the part of the Company will not alter the nature of the termination as voluntary and the Company will not be required to pay any severance or termination payments in respect of a termination by the Employee under this Section 11.1.  Upon the termination of employment by the Employee under this Section 11.1 the Company shall pay to the Employee all bonuses and other benefits earned or accrued up to the date of termination, but otherwise all obligations of the Company under this Agreement shall end.
 
11.2                      Definition of "Just Cause".  "Just Cause" means:
 
(i)  Employee’s conviction of, or plea of nolo contendere, to any felony or to a crime involving moral depravity or fraud; (ii) Employee’s commission of an act of dishonesty or fraud or breach of fiduciary duty or act that has a material adverse effect on the name or public image of the Company, as determined by the Board provided the Board affords the Employee  the opportunity to personally appear before the Board in order to state his case prior to the Board voting to so terminate the Employee;  (iii)  Employee’s commission of an act of willful misconduct or gross negligence, as determined by the Board provided the Employee shall have the opportunity to state his case before the Board prior to the Board taking such decision to so terminate the Employee; (iv) the failure of Employee to perform his duties under this Agreement; (v) the material breach of any of Employee’s material obligations under this Agreement; (vi) the failure of Employee to follow a directive of the Board; or (vii) excessive absenteeism, chronic alcoholism or any other form of addiction that prevents Employee from performing the essential functions of his position with or without a reasonable accommodation; provided, however, that the Company may terminate Employee’s employment for Just Cause, as to  (iv) or (v)  above, only after failure by Employee to correct or cure, or to commence or to continue to pursue the correction or curing of, such conduct or omission within ten (10) days after receipt by Employee of written notice by the Company of each specific claim of any such misconduct or failure.
 
 
 

 
 
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11.3                      Termination by the Company for Just Cause.  The Company may terminate this Agreement at any time for Just Cause without notice and (except as provided in the immediately following sentence) without payment of any compensation by way of anticipated earnings, damages, or other relief of any kind whatsoever.  Upon the termination of employment by the Company for Just Cause, the Company shall pay to the Employee all salaries, bonuses, vacation and other benefits, if any, earned or accrued up to the date of termination, but otherwise all obligations of the Company under this Agreement end.
 
11.4                      Termination by the Company for Other Than Just Cause.  The Company may terminate this Agreement at any time for other than Just Cause upon the following terms:
 
 
(a)
if the Company so terminates this Agreement at any time during the Initial Term of this Agreement, the Company shall pay to the Employee an amount equal to the base salary then payable, if any, for the longer of (a) the period from the date of such termination to the end of the Initial Term as if the Agreement had not been so terminated and (b) twelve months, and in all cases, subject to the deductions in Section 3.9;
     
 
(b)
if the Company so terminates this Agreement after the Initial Term or during a Renewal Term the Company shall pay the Employee an amount equal to the base salary, if any, then payable to the Employee for a period of twelve months as if the Agreement had not been so terminated or had been renewed, subject to the deductions in Section 3.9; and
 
 
(c)
upon any such termination, all bonuses or other benefits earned or accrued up to the date of termination or expiry shall be paid by the Company, but except for such payments and the payments to be made pursuant to Sections 11.4(a) or (b), as applicable, all obligations of the Company under this Agreement shall end upon such termination or failure to renew. Payments under Sections 11.4(a) or (b) shall be payable monthly subject to deductions in Section 3.9.
 
11.5                      Termination by the Employee for Good Reason.  The Employee may terminate this Agreement at any time upon the occurrence of any of the following events (each a "Good Reason"), if such occurrence takes place without the express written consent of the Employee:
 
 
(i)
a change in the Employee's title or position or a material diminution in the Employee's duties or the assignment to the Employee of duties which materially impairs the Employee's ability to function in his current capacity for the Company, or, with respect to an assignment of duties only, is materially inconsistent with his duties;
 
 
 

 
 
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(ii)
any material change in the Employee's direct reporting obligations;
 
In the event that the Employee terminates this Agreement for Good Reason, he shall be entitled to the same payments and benefits as provided in Section 11.4 of this Agreement as if the Company had terminated this Agreement at the time that the Employee terminates this Agreement under this Section 11.5.
 
11.6                      Full and Final Release.  In order to be eligible for the payments as set forth in this Section 11 the Employee must (i) execute and deliver to the Company a general release, in a form satisfactory to the Company and Employee, and (ii) be and remain in full compliance with his obligations under this Agreement.
 
11.7                      Fair and Reasonable.  The parties confirm that the provisions contained in Sections 11.4 and 11.5 are fair and reasonable and that all such payments shall be in full satisfaction of all claims which the Employee may otherwise have at law against the Company including, or in equity by virtue of such termination of employment.
 
11.8                      Return of Property.  Upon the termination of the Employee's employment for any reason whatsoever, the Employee shall at once deliver or cause to be delivered to the Company all books, documents, effects, money, computer equipment, computer storage media, securities or other property belonging to the Company or for which the Company is liable to others, which are in the possession, charge, control or custody of the Employee.
 
11.9                      Provisions Which Operate Following Termination.  Notwithstanding any termination of this Agreement for any reason whatsoever, provisions of this Agreement necessary to give efficacy thereto shall continue in full force and effect.
 
11.10                      Board. Notwithstanding the foregoing, the termination of Employee’s employment hereunder for any reason shall automatically be deemed as Employee’s resignation from the Board of Directors of the Company and any affiliates without any further action, except when the Board shall, in writing, request a continuation of duty as a Director in its sole discretion.
 
PART 12
GENERAL
 
12.1                      Benefit & Binding.  This Agreement shall enure to the benefit of and be binding upon the respective successors and permitted assigns of the parties hereto.
 
12.2                      Amendments & Waivers.  No amendment to this Agreement shall be valid or binding unless set forth in writing and duly executed by all of the parties hereto. No waiver of any breach of any provision of this Agreement shall be effective or binding unless made in writing and signed by the party purporting to give the same and, unless otherwise provided in the written waiver, shall be limited to the specific breach waived.
 
12.3                      Time.  Time shall be of the essence of this Agreement.
 
 
 

 
 
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12.4                      Assignment.  Neither this Agreement nor the rights and obligations hereunder shall be assignable by either party without the consent of the other.
 
12.5                      Severability.  If any provision of this Agreement is determined to be invalid or unenforceable in whole or in part, such invalidity or unenforceability shall attach only to such provision and all other provisions hereof shall continue in full force and effect.
 
12.6                      Attornment.  For the purposes of all legal proceedings this Agreement shall be deemed to have been performed in the State of Texas and the courts of Dallas County shall have jurisdiction to entertain any action arising under this Agreement.
 
PART 13
ACKNOWLEDGEMENT
 
The Employee acknowledges that:
 
 
(i)
the Employee has received a copy of this Agreement;
 
 
(ii)
the Employee has had sufficient time to review and consider this Agreement thoroughly;
 
 
(iii)
the Employee has read and understands the terms of this Agreement and his obligations under this Agreement;
 
 
(iv)
the restrictions placed upon the Employee by this Agreement are reasonably necessary to protect the Company's proprietary interests in the Confidential Information and the Developments and will not preclude the Employee from being gainfully employed in a suitable capacity following the termination of the Employee's employment, given the Employee's knowledge and experience;
 
 
(v)
the Employee has been given an opportunity to obtain independent legal advice, or such other advice as the Employee may desire, concerning the interpretation and effect of this Agreement and by signing this Agreement the Employee has either obtained advice or voluntarily waived the Employee's opportunity to receive the same; and
 
 
(vi)
this Agreement is entered into voluntarily by the Employee.
 
PART 14
NOTICES
 
Any demand, notice or other communication (the "Notice") to be given in connection with this Agreement shall be given in writing on a Business Day and may be given by personal delivery or by transmittal by facsimile addressed to the recipient as follows:
 
 

 
 
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To the Company:
 
Attention:
 
Facsimile:
 
    
 
 
To the Employee:
Facsimile:
   
or such other address or facsimile number as may be designated by notice by any party to the other.  Any Notice given by personal delivery will be deemed to have been given on the day of actual delivery and if transmitted by facsimile before 3:00 pm on a Business Day, will be deemed to have been given on that Business Day and if transmitted by facsimile after 3:00 pm on a Business Day, will be deemed to have been given on the next Business Day after the date of transmission.
 
PART 15
FURTHER ASSURANCES
 
The parties shall from time to time execute and deliver all such further documents and do all acts and things as the other party may reasonably require to effectively carry out or better evidence or perfect the full intent and meaning of this Agreement.
 
PART 16
FAX SIGNATURES
 
This Agreement may be signed either by original signature or by facsimile signature.
 
PART 17
COUNTERPARTS
 
This Agreement may be executed by the parties in one or more counterparts, each of which when so executed and delivered shall be an original and such counterparts shall together constitute one and the same instrument.
 
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IN WITNESS WHEREOF the parties have duly executed this Agreement.
 
 
ZION OIL & GAS  INC.
 
/s/Richard Rinberg
RICHARD RINBERG
Chief Executive Officer
 
 
 
 
/s/ John Brown
 
JOHN BROWN

 



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