Exhibit 10(7)
FOUNTAIN OIL INCORPORATED
EMPLOYMENT CONTRACT
This contract is made 1st day of March 1995, between FOUNTAIN OIL INCORPORATED,
a Delaware, USA registered company (hereinafter referred to as the COMPANY) as
the one part, and XXXXXXX XXXXXX (hereinafter referred to as the EMPLOYEE) as
the other part.
Whereas the Parties have agreed as follows:
1. PERIOD/TERMINATION OF EMPLOYMENT. This agreement commences 1st day of
March, 1995 and can be terminated by either Party by giving to the other
Party six months notice in writing.
2. POWERS AND DUTIES. The Company has employed the Employee to serve as
President & Chief Executive Officer. The Employee in this position will
report to the Chairman of the Board. The Employee shall exercise such
powers and perform such duties in relation to the business of the Company
as may from time to time be vested in or assigned to him by the Company and
shall comply with all reasonable direction from time to time given him by
the Company. A job description will be written for the position outlining
the major responsibilities and duties.
3. WORK LOCATION. The Employee will be located at the Company's offices in
London, UK. Transfer to another location and/or position within the
Company and its Branches and/or Subsidiary companies could happen at a
later stage in agreement between the two Parties. The Company will
endeavour to accommodate the Employee's wishes as far as it is practicable
possible in this respect. The Employee is relocated from Stavanger Norway.
4. CONFIDENTIAL INFORMATION. The Employee shall not either during the
continuance of his employment hereunder or thereafter use to the detriment
or prejudice of the Company or (except in the proper course of his duties
hereunder) divulge to any person any trade secret or any other confidential
information concerning the business or affairs of the Company which may
have come to his knowledge during his employment hereunder.
5. COMPANY INFORMATION. The Employee shall at all times promptly give to the
Company all such information and explanations as it may require in
connection with matters relating to his employment hereunder or relating to
the business of the Company.
6. RETURN OF DOCUMENTS ETC. The Employee shall promptly whenever required by
the Company (and in any event upon the termination of his employment
hereunder) deliver to the Company all lists of clients or customers,
correspondence and all other
documents, papers and records which may have been prepared by him or have
come into his possession in the course of his employment hereunder, and the
Employee shall not be entitled to and shall not retain any copy thereof.
Title and copyright thereto shall vest in the Company.
7. REMUNERATION. The Employee shall be paid by way of remuneration for his
services during employment hereunder a basic salary at the rate of Great
Britain Pound Sterling 100,000 per annum. Such salary shall be paid by
equal monthly installments. At the end of each fiscal year possible
changes in the Employment remuneration shall be discussed and decided by
the Company.
In addition the Company will, with effect from 1 April, 1995, pay for
Pension/Insurance package at the cost of 12.5% of regular salary (excluding
any overtime, bonus, etc.). The local management of each company and/or
Branch will determine the Group policies to be entered into bearing in mind
the package should cover as a minimum (a) Life Insurance with death and
disability of USD 100,000 and (b) Income Protection with disability of USD
1,500 per month index linked, starting after 6 months. Within the above
framework, the Employee is free to decide how the remainder of the 12.5%
allowance is to be used on (a) Pension (b) Life Insurance (c) Income
protection (permanent health insurance) (d) Private Health Care and (e)
Accident Insurance.
The Company reserves the right to review the 12.5% contribution over 3
years.
8. EXPENSES. The Company shall reimburse the Employee all reasonable
traveling, hotel, entertainment and other out of pocket expenses that he
may incur in the execution of his duties hereunder in accordance with a
budget or extraordinary approved by the Company.
9. HOLIDAYS. In addition to Bank and other Public holidays the Employee shall
be entitled to 25 working days holiday in every calendar year to be taken
at such time or times as may be approved by the Company.
10. SICKNESS/INJURY. The Company shall pay to the Employee Statutory Sick Pay
(hereinafter referred to as SSP) in accordance with regulations prevailing
in the country of residence. These payments will be supplemented by the
Company up to full salary for the first 12 months of absence from work due
to sickness or injury. From 13 months the Employee shall be entitled to
disability payment as provided for under the Permanent Health Insurance
package as well as State support.
11. SPECIAL TERMS.
(a) BONUS SCHEME. The Employee will participate in the management bonus
scheme to be established for the Company.
The Employee will participate in the Company Share Option plan and
allocations.
(b) VISITS TO NORWAY. The Company will pay for three return tickets per
calendar year from assigned location to Stavanger, Norway for the Employee,
wife and son (Xxxx Xxxx). The trips should be in connection with business
if possible.
(c) RELOCATION. The Company will pay for the relocation from Stavanger to
London or other assigned locations during the service of the Employee, and
return to Stavanger by either party termination of the employment.
(d) EDUCATION. The Company will pay for the High School educational cost
for Xxxx Xxxx (son) at the place of relocation.
(e) HOUSING. The Company will pay for a representative housing that can
be used for entertainment of customers and business relations at the place
of relocation. The facilities shall also room a small office space. The
Company will as long as the Employee is in London pay for the fixed rent of
the localities. Utilities will be paid by the Employee.
(f) TELEPHONE/FACSIMILE. The Company will pay for home telephones, mobile
phone, and home facsimile on behalf of the Employee.
(g) MEMBERSHIP IN PROFESSIONAL ORGANIZATION/CLUBS. The Company will pay
for membership fees in professional and social clubs that can and will
improve the business in relation to the employment. Special approvement is
needed if the membership exceeds $1,000 annual.
(h) NEWSPAPERS, MEDIA INFORMATION. The Company will pay for economical
and technical publication needed for the business and two daily
publications sent to the home of the Employee.
Signed, Signed,
Date and Place, Date and Place,
London, 5 November 0000 Xxxxxx xxx Xxx, Xxxxxxxxxx
10. November 1995
/s/ Xxxxxxx Xxxxxx /s/ Xxxxxx X. Xxxxxx
Employee, Xxxxxxx Xxxxxx Company,
Chairman, Xxxxxx Xxxxxx
