Exhibit 10.4
EMPLOYMENT AGREEMENT
THOMAS E. HORD
This Employment Agreement (this “Agreement”), effective January 1, 2005 (“Effective Date”), is by and between Hercules Drilling Company, LLC, d/b/a Hercules Drilling Company, a Delaware limited liability company (the “Company”), with its principal place of business at 2929 Briarpark Drive, Suite 400, Houston, Texas 77042 and Thomas E. Hord, residing at 104 Bayou Lane, Kemah, Texas 77565 (“Executive”).
RECITALS
WHEREAS, the Company is a Houston-based offshore drilling contractor; and
WHEREAS, the Company desires to employ Executive as its Vice President—Operations, and Executive desires to accept such employment upon the conditions and terms set forth hereinafter;
NOW, THEREFORE, in consideration of the mutual promises, terms, covenants and conditions set forth herein and the performance of each, it is hereby agreed as follows:
AGREEMENTS
1. EMPLOYMENT AND DUTIES.
(a) The Company hereby employs Executive as its Vice President—Operations. As such, Executive shall have responsibilities, duties and authority commensurate with such position and shall perform such responsibilities and duties, and shall be based at the Company’s principal offices in Harris County, Texas. Executive will report to the Company’s Managers (the “Managers”). If the Company reorganizes from a limited liability company to a corporation (“Newco”), then Executive will report to Newco’s board of directors. (In this Agreement, the term “Managers” applies both to the Company’s Managers and, if the Company reorganizes, to Newco’s board of directors.) Additional or different duties, titles or executive positions may, however, be assigned to Executive from time to time, provided that any such changes are consistent and compatible with Executive’s experience, background and managerial skills. Executive hereby accepts this employment upon the terms and conditions herein contained and agrees to devote his business time, energy, attention, skills, and best efforts to promote and further the business of the Company.
(b) Executive shall faithfully adhere to, execute and fulfill all lawful policies established by the Company.
(c) The Executive agrees to faithfully and diligently serve the Company under the direction of the Managers, and to perform from time to time such additional executive duties as the Managers shall reasonably request; provided that such duties shall be consistent with the Executive’s present position and status. The Executive shall be required to devote such portion of his time to such employment and to the business and affairs of the Company as shall be
reasonably necessary for the effective discharge of his duties. The Company hereby acknowledges that the Executive has other business interests and in connection therewith the Executive may devote a portion of his business time to such other business interests so long as it does not materially interfere with the performance of the Executive’s duties hereunder.
(d) The Company shall provide Executive with an office in Houston, Texas or at such location as shall be designated by the Managers, which location shall be reasonably acceptable to the Executive.
2. COMPENSATION. For all services rendered by Executive, the Company shall compensate Executive as follows:
(a) Base Salary. Beginning on the Effective Date of this Agreement, the base salary payable to Executive shall be Two Hundred Twenty-Five Thousand Dollars ($225,000.00) per annum (“Base Salary”), payable on a bi-weekly basis in accordance with the Company’s standard payroll procedures.
(b) Perquisites, Benefits and Other Compensation. Executive shall be entitled to receive additional benefits and compensation from the Company in such form and to such extent as specified below:
(i)
The Company shall provide Executive with an automobile allowance in an amount equal to that paid to other senior executives of the Company, which is presently Five Hundred Dollars ($500.00) per month.
(ii)
An annual bonus, if any, as determined in the sole discretion of the Managers.
(iii) The Company will provide the Executive with a residence, fully furnished and equipped for normal full time occupancy, with all expenses associated therewith to be paid by the Company, such residence to be similar to, but not necessarily identical to, the residence presently provided to the Executive that is located at 1600 Eldridge Parkway, Apartment # 3501, Houston, TX 77077. Monthly rent on such property shall not exceed $1,200 per month.
(iv) The Company shall reimburse Executive in accordance with the Company’s policies for all reasonable business travel and other out-of-pocket expenses reasonably incurred by Executive in the
performance of his services pursuant to this Agreement. All reimbursable expenses shall be appropriately documented in reasonable detail by Executive upon submission of any request for reimbursement, and in a format and manner consistent with the Company’s expense reporting policy.
(v)
The Company shall provide Executive four weeks of paid vacation per year or such greater amount as may be afforded senior officers in accordance with Company’s policies in effect from time to time.
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(vi) The Company shall provide Executive with other executive perquisites as may be available to or deemed appropriate for Executive by the Managers, participation in all other Company-wide Executive benefits as may be adopted from time to time by the Company, and participation in any other insurance and Executive benefits or plans that includes all the executive officers of Company, including any pension, profit-sharing, bonus or stock option plan, life insurance, health, medical, hospitalization, or surgical insurance plan or policy, whether now existing or hereinafter established.
(vii) Nothing contained herein shall be deemed to be a waiver by the Executive of, or to diminish or modify, any vested rights which the Executive may have with the Company or may hereafter acquire under any employee benefit plan of the Company.
(viii) Hercules Offshore LLC shall issue options to Executive to acquire up to $250,000 of Hercules Offshore LLC membership interests. Such options shall be exercisable at any time prior to Decem