a1025carolynstonemay2015






1 Active 17097592.5        Exhibit 10.25          EXECUTIVE CHANGE OF CONTROL SEVERANCE AGREEMENT    This Executive Agreement ("Agreement") between Civeo Corporation, a Delaware  corporation (the "Company"), and Carolyn Stone (the "Executive") is made and entered into  effective as of the date of    May 10, 2015 (the "Effective Date").  WHEREAS, Executive is a key executive of the Company or a subsidiary; and    WHEREAS, the Company believes it to be in the best interests of its stockholders to attract,  retain and motivate key executives and ensure continuity of management; and    WHEREAS, it is in the best interest of the Company and its stockholders if the key  executives can approach material corporate development decisions objectively and without  concern for their personal situation; and    WHEREAS, the Company recognizes that the possibility of a Change of Control (as  defined below) of the Company may result in the departure of key executives to the detriment of  the Company and its stockholders; and    WHEREAS, the Board of Directors of the Company (the "Board") has authorized this  Agreement and certain similar agreements in order to retain and motivate key management and to  ensure continuity of key management;    THEREFORE, for good and valuable consideration, the receipt and sufficiency of which  are hereby acknowledged, the Company and Executive agree as follows:    1. Term of Agreement    (A) This Agreement shall commence on the Effective Date and, subject to the  provisions for earlier termination in this Agreement, shall continue in effect through  the second anniversary of the Effective Date; provided, however, commencing on  the Effective Date and on each day thereafter, the term of this Agreement shall  automatically be extended for one additional day unless the Board shall give written  notice to Executive that the term shall cease to be so extended in which event the  Agreement shall terminate on the third anniversary of the date such notice is given.    (B) Notwithstanding anything in this Agreement to the contrary, this Agreement, if in  effect on the date of a Change of Control, shall automatically be extended for the  24-month period following the Change of Control.    (C) Termination of this Agreement shall not alter or impair any rights of Executive  arising hereunder on or before such termination.  





 






2 Active 17097592.5                  2. Certain Definitions  (A) "Cause" shall mean:    (i) Executive's conviction of (or plea of nolo contendere to) a felony,  dishonesty or a breach of trust;    (ii) Executive's commission of any act of theft, fraud, embezzlement or  misappropriation regardless of whether a criminal conviction is obtained;    (iii) Executive's continued failure to devote substantially all of his business time  to the Company's business affairs (excluding failures due to illness, incapacity, vacations,  incidental civic activities and incidental personal time) which failure is not remedied within  a reasonable time after written demand is delivered by the Company, which demand  identifies the manner in which the Company believes that Executive has failed to devote  substantially all of his business time to the Company's business affairs; or    (iv) Executive's unauthorized disclosure of confidential information of the  Company.    (B) "Change of Control' shall mean any of the following:    (i) any "person" (as such term is used in Section 13(d) and 14(d) of the  Securities Exchange Act of 1934, as amended (the "Exchange Act")), (other than a trustee  or other fiduciary holding securities under an employee benefit plan of the Company or  any affiliate, or any corporation owned, directly or indirectly, by the stockholders of the  Company in substantially the same proportions as their ownership of stock of the  Company), acquires "beneficial ownership" (within the meaning of Rule 13d-3 under  the Exchange Act) of securities of the Company representing 35% or more of the combined  voting power of the Company's then outstanding securities; provided, however, that if the  Company engages in a merger or consolidation in which the Company or surviving entity  in such merger or consolidation becomes a subsidiary of another entity, then references to  the Company's then outstanding securities shall be deemed to refer to the outstanding  securities of such parent entity;  (ii) a change in the composition of the Board, as a result of which fewer than a  majority of the directors are Incumbent Directors. "Incumbent Directors" shall mean  directors who either (i) are directors of the Company as of the Effective Date, or (ii) are  elected, or nominated for election, to the Board with the affirmative votes of at least two-  thirds of the Incumbent Directors at the time of such election or nomination, but Incumbent  Director shall not include an individual whose election or nomination occurs as a result of  either (1) an actual or threatened election contest (as such terms are used in Rule 14a-11 of  Regulation 14A promulgated under the Exchange Act) or (2) an actual or threatened  solicitation of proxies or consents by or on behalf of a person other than the Board;  





 






3 Active 17097592.5                  (iii) the consummation of a merger or consolidation of the Company with any  other corporation, other than a merger or consolidation which would result in the voting  securities of the Company outstanding immediately prior thereto continuing to represent  (either by remaining outstanding or by being converted into voting securities of the  surviving entity (or if the surviving entity is or shall become a subsidiary of another entity,  then such parent entity)) more than 50% of the combined voting power of the voting  securities of the Company (or such surviving entity or parent entity, as the case may be)  outstanding immediately after such merger or consolidation;    (iv) the stockholders of the Company approve a plan of complete liquidation of  the Company; or  (v) the sale or disposition (other than a pledge or similar encumbrance) by the  Company of all or substantially all of the assets of the Company other than to a subsidiary  or subsidiaries of the Company.    For the avoidance of doubt, in no event will a redomicile transaction or redomestication  of the Company's place of incorporation to Canada be deemed to constitute a "Change of Control"  for purposes of this Agreement.  (C) "Date of Termination" shall mean the date the Notice of Termination is given  unless such Notice of Termination is by Executive in which event the Date of  Termination shall not be less than 30 days following the date the Notice of  Termination is given. Further, a Notice of Termination given by Executive due to  a Good Reason event that is corrected by the Company before the Date of  Termination shall be void.  (D) "Good Reason" shall mean:    (i) a material reduction in Executive's authority, duties or responsibilities from  those in effect immediately prior to the Change of Control or the assignment to Executive  duties or responsibilities materially inconsistent with those of Executive in effect  immediately prior to the Change of Control;    (ii) a material reduction of Executive's compensation and benefits, including,  without limitation, annual base salary, annual bonus, and equity incentive opportunities  from those in effect immediately prior to the Change of Control;  (iii) the Company fails to obtain a written agreement from any successor or  assigns of the Company to assume and perform this Agreement as provided in Section 7  hereof; or  (iv) the Company requires Executive, without Executive's consent, to be based  at any office located more than 50 miles from the Company's offices to which Executive  was based immediately prior to the Change of Control, except for travel reasonably  required in the performance of Executive's duties.  





 






4 Active 17097592.5      Notwithstanding the above however, Good Reason shall not exist with respect to a matter  unless all of the following conditions are satisfied: (i) the condition giving rise to Executive's  termination of employment must have arisen without Executive's consent; and (ii) (1) Executive  must provide written notice to the Company of such condition in accordance with Section 10  within 30 days of the initial existence of the condition, (2) the condition specified in such notice  must remain uncorrected for 30 days after receipt of such notice by the Company and (3) the date  of Executive's termination of employment must occur within 30 days after the expiration of the  cure period set forth in (2) above.    For purposes of this Agreement, "Good Reason" shall be construed to refer to Executive's  positions, duties, and responsibilities in the position or positions in which Executive serves  immediately before the Change of Control, but shall not include titles or positions with subsidiaries  and affiliates of the Company that are held primarily for administrative convenience.    For the avoidance of doubt, in no event will a redomicile transaction or redomestication  of the Company's place of incorporation to Canada be deemed to constitute "Good Reason" for  purposes of this Agreement.    (E) "Notice of Termination" shall mean a written notice delivered to the other party  indicating the specific termination provision in this Agreement relied upon for  termination of Executive's employment and shall set forth in reasonable detail the  facts and circumstances claimed to provide a basis for termination of Executive's  employment under the provision so indicated. For this purpose, termination of  Executive's employment shall be interpreted consistent with the meaning of the  term "Separation from Service" in Section 409A(a)(2)(A)(i) of the Internal  Revenue Code of 1986, as amended (the "Code") and applicable regulation  authority.    (F) "Protected Period" shall mean the 18-month period beginning on the effective date  of a Change of Control.  (G) "Target AICP" shall mean the targeted value of Executive's annual incentive  compensation plan bonus for the year in which the Date of Termination occurs or  the fiscal year immediately preceding the Change of Control, whichever is a greater  amount.    (H) "Termination Base Salary" shall mean Executive's annual base salary at the rate in  effect at the time the Notice of Termination is given or, if a greater amount,  Executive's annual base salary at the rate in effect immediately prior to the Change  of Control.    3. No Employment Agreement.    (A) This Agreement shall be considered solely as a "Change of Control severance  agreement" obligating the Company to pay Executive certain amounts of  compensation and to provide certain benefits in the event and only in the event of  Executive's termination of employment for the specified reasons and at the times  specified herein. The parties agree that this Agreement shall not be considered an  





 






5 Active 17097592.5                  employment agreement and that Executive 1s an "at will" employee of the  Company.  (B) Unless otherwise agreed to in writing by the Company and Executive prior to the  termination of Executive's employment, any termination of Executive's employment  shall constitute an automatic resignation of Executive as an officer of the Company  and each affiliate of the Company, and an automatic resignation of Executive from  the Board and the board of directors of the Company (if applicable) and from the  board of directors or similar governing body of any affiliate of the Company and  from the board of directors or similar governing body of any corporation, limited  liability entity or other entity in which the Company or any affiliate holds an equity  interest and with respect to which board or similar governing body Executive serves  as the Company's or such affiliate' s designee or other representative.    4. Change of Control Severance Benefits    Subject to Section 12, if either (a) Executive terminates his employment during the  Protected Period for a Good Reason event or (b) the Company terminates Executive's employment  during the Protected Period other than for Cause, Executive shall receive the following  compensation and benefits from the Company:    (A) Within 15 days of the expiration of the Release Period (as defined in Section 12),  the Company shall pay to Executive in a lump sum, in cash, an amount equal to  1.75 times the sum of Executive's (i) Termination Base Salary and (ii) Target  AICP.  (B) Notwithstanding anything in any Company stock plan or grant agreement to the  contrary, (i) all restricted shares, restricted stock units, phantom stock units and any  other equity based award of Executive shall become 100% vested and all  restrictions thereon shall lapse as of the expiration of the Release Period, and the  Company shall promptly deliver such shares (or cash in lieu of shares in the case  of phantom stock unit awards) to Executive and (ii) each then outstanding stock  option of Executive shall become 100% exercisable as of the expiration of the  Release Period and shall remain exercisable for 90 days following the lapse of the  Release Period.  (C) Executive shall be fully vested in Executive's accrued benefits under all qualified  pension, nonqualified pension, profit sharing, 401(k), deferred compensation and  supplemental plans maintained by the Company for Executive's benefit as of the  lapse of such sixty-day period except to that the extent the acceleration of vesting  of such benefits would violate any applicable law or require the Company to  accelerate the vesting of the accrued benefits of all participants in such plan or  plans, in which event the Company shall pay Executive a lump sum amount, in  cash, within 15 days of the lapse of such sixty-day period, equal to the present value  of such unvested accrued benefits that cannot become vested under the plan for the  reasons provided above.  





 






6 Active 17097592.5                  (D) For the 12-month period following the date of termination of Executive's  employment with the Company, the Company shall continue to provide Executive  and Executive's eligible family members with medical and dental health benefits  at least equal to those which would have been provided to Executive if Executive's  employment had not been terminated. The medical and dental health benefits  coverage shall be provided at full cost to the Executive during the applicable period.  The Company shall also provide Executive with a lump sum payment within 15  days following the expiration of each of the two, sixth-month periods following  termination of Executive's employment with the Company in such amount that,  after all taxes on that amount, shall be equal to the full cost, reduced by the cost  sharing applicable to active employees, of providing Executive and Executive's  eligible family members with medical and dental health benefits coverage during  each such preceding six-month period. Notwithstanding the foregoing, such  benefits coverage shall not continue beyond the first sixty days following  termination of Executive's employment with the Company, and the lump sum  payments shall not be paid, unless Executive complies with the requirements of  Section 12 hereof by executing a general release. Notwithstanding the foregoing, if  Executive becomes eligible to receive medical, dental and disability benefits under  another employer's plans during the 12-month period following the date of  termination of Executive's employment with the Company, the Company's  obligations under this Section 4D shall be reduced to the extent comparable benefits  are actually received by Executive during such period, and any such benefits  actually received by Executive shall be promptly reported by Executive to the  Company. In the event Executive is ineligible under the terms of the Company's  health and other welfare benefit plans or programs to continue to be so covered  during the 24-month period following the date of termination of Executive's  employment with the Company, the Company shall provide Executive with  substantially equivalent coverage through other sources or will provide Executive  with a lump sum payment within 15 days following the expiration of each of the  two, six-month periods following termination of Executive's employment with the  Company in such amount that, after all taxes on that amount, shall be equal to the  cost of providing Executive and Executive's eligible family members with medical  and dental health benefits coverage during each such preceding six-month period.  Any lump sum shall be determined on a present value basis using the interest rate  provided in Section 1274(b)(2)(B) of the Code on the Date of Termination.    (E) For the period beginning on the date of termination of Executive's employment  with the Company and ending on December 31 of the second calendar year  following the calendar year which includes the date of termination, or until  Executive accepts other employment, including as an independent contractor, with  a new employer, Executive shall be entitled to receive outplacement services,  payable by the Company, with an aggregate cost not to exceed 15% of Executive's  Termination Base Salary, with an executive outplacement service firm reasonably  acceptable to the Company and Executive.  





 






7 Active 17097592.5                  5. Parachute Taxes.    Notwithstanding anything to the contrary in this Agreement, if Executive is a "disqualified  individual" (as defined in Section 280G(c) of the Code), and the payments and benefits provided  for under this Agreement, together with any other payments and benefits which Executive has the  right to receive from the Company or any of its affiliates, would constitute a "parachute payment"  (as defined in Section 280G(b)(2) of the Code), then the payments and benefits provided for under  this Agreement shall be either (a) reduced (but not below zero) so that the present value of such  total amounts and benefits received by Executive from the Company and its affiliates will be one  dollar ($1.00) less than three times Executive's "base amount"(as defined in Section 280G(b)(3) of  the Code) and so that no portion of such amounts and benefits received by Executive shall be  subject to the excise tax imposed by Section 4999 of the Code or (b) paid in full, whichever  produces the better net after-tax position to Executive (taking into account any applicable excise  tax under Section 4999 of the Code and any other applicable taxes). The reduction of payments  and benefits hereunder, if applicable, shall be made by reducing, first, payments or benefits to be  paid in cash hereunder in the order in which such payment or benefit would be paid or provided  (beginning with such payment or benefit that would be made last in time and continuing, to the  extent necessary, through to such payment or benefit that would be made first in time) and, then,  reducing any benefit to be provided in kind hereunder in a similar order. The determination as to  whether any such reduction in the amount of the payments and benefits provided hereunder is  necessary shall be made by the Company. If a reduced payment or benefit is made or provided  and through error or otherwise that payment or benefit, when aggregated with other payments and  benefits from the Company (or its affiliates) used in determining if a parachute payment exists,  exceeds one dollar ($1.00) less than three times Executive's base amount, then Executive shall  immediately repay such excess to the Company upon notification that an overpayment has been made.    6. Mitigation.    Executive shall not be required to mitigate the amount of any payment provided for in this  Agreement by seeking other employment or otherwise nor, except as provided in Section 4D shall  the amount of any payment or benefit provided for in this Agreement be reduced by any  compensation earned or benefit received by Executive as the result of employment by another  employer or self-employment, by retirement benefits, by offset against any amount claimed to be  owed by Executive to the Company or otherwise. Executive shall not be entitled to receive any  severance payments or benefits pursuant to any Company severance plan or program for  employees in general.    7. Successor Agreement.    The Company will require any successor (whether direct or indirect, by purchase, merger,  consolidation or otherwise) to all or substantially all of the business and/or assets of the Company  to assume expressly and agree to perform this Agreement in the same manner and to the same  extent that the Company would be required to perform if no succession had taken place. Failure of  the successor to so assume shall constitute a breach of this Agreement and entitle Executive to the  benefits hereunder as if triggered by a termination by the Company other than for Cause.  





 






8 Active 17097592.5                  8. Indemnity.    In any situation where under applicable law the Company has the power to indemnify,  advance expenses to and defend Executive in respect of any judgments, fines, settlements, loss,  cost or expense (including attorney's fees) of any nature related to or arising out of Executive's  activities as an agent, employee, officer or director of the Company or in any other capacity on  behalf of or at the request of the Company, then the Company shall promptly on written request,  indemnify Executive, advance expenses (including attorney's fees) to Executive and defend  Executive to the fullest extent permitted by applicable law, including but not limited to making  such findings and determinations and taking any and all such actions as the Company may, under  applicable law, be permitted to have the discretion to take so as to effectuate such indemnification,  advancement or defense. Such agreement by the Company shall not be deemed to impair any other  obligation of the Company respecting Executive's indemnification or defense otherwise arising out  of this or any other agreement or promise of the Company under any statute.  9. Code Section 409A Restrictions.    (A) Each payment under this Agreement, including each payment in a series of  installment payments, is intended to be a separate payment for purposes of Treas.  Reg. § 1.409A-2(b), and is intended to be: (i) exempt from Section 409A of the  Code, the regulations and other binding guidance promulgated thereunder  ("Section 409A"), including, but not limited to, by compliance with the short-term  deferral exemption as specified in Treas. Reg. § 1.409A-l(b)(4) and the involuntary  separation pay exception within the meaning of Treas. Reg. § 1.409A- l(b)(9)(iii),  or (ii) in compliance with Section 409A, including, but not limited to, being paid  pursuant to a fixed schedule or specified date pursuant to Treas. Reg. § l.409A-3(a)  and the provisions of this Agreement will be  administered, interpreted and  construed accordingly.    (B) Notwithstanding anything in this Agreement to the contrary, if payment of any  amounts under this Agreement would be subject to additional taxes and interest  under Section 409A because the timing of such payments is not delayed as  provided in Section 409A(a)(2)(B)(i) of the Code and the regulations thereunder,  then any such payments that Executive would otherwise be entitled to during the  first six months following the date of the Executive's termination of employment  with the Company shall be accumulated and paid on the first business day that is  six months after the date of the Executive's termination of employment with the  Company, or such earlier date upon which such payments can be paid under  Section 409A without being subject to such additional taxes and interest. If this  Section becomes applicable such that any payments are delayed, any payments that  are so delayed shall accrue interest on a non-compounded basis, from the date they  would otherwise have been made absent such delay to the actual date of payment,  at the prime or base rate of interest announced by Wells Fargo Bank (or any  successor thereto) at its principal office in Houston, Texas on the date of such  termination, which shall be paid in a lump sum on the actual date of payment of  the delayed payments.  





 






9 Active 17097592.5                  (C) Notwithstanding anything in this Agreement to the contrary, if benefits to be made  available under this Agreement would be subject to additional taxes and interest  under Section 409A because the provision of such benefits is not delayed for the  first six months following the date of the Executive's termination of employment  with the Company as provided in Section 409A(a)(2)(B)(i) of the Code and the  regulations thereunder, such benefits shall not be delayed; however, the Executive  shall pay to the Company, at the time or times such benefits are provided, the fair  market value of such benefits, and the Company shall reimburse the Executive for  any such payments on the fifth business day following the expiration of such six- month period.    (D) Executive hereby agrees to be bound by the Company's determination of its  "specified employees" (as such term is defined in Section 409A) in accordance with  any of the methods permitted under the regulations issued under Section 409A.    10. Notice.    For the purpose of this Agreement, notices and all other communications provided for in  this Agreement shall be in writing and delivered by United States certified or registered mail  (return receipt requested, postage prepaid) or by courier guaranteeing overnight delivery or by  hand delivery (with signed receipt required), addressed to the respective addresses set forth below,  and such notice or communication shall be deemed to have been duly given two days after deposit  in the mail, one day after deposit with such overnight carrier or upon delivery with hand delivery.  The addresses set forth below may be changed by a writing in accordance herewith.    Company:  Civeo Corporation  333 Clay Street, Suite 4980  Houston, Texas 77002  Attn: Chairman of the Board  Executive:  Carolyn Stone                 11. Arbitration.    The parties agree to resolve any claim or controversy arising out of or relating to this  Agreement, including but not limited to the consequences of any termination of employment of  Executive, by binding arbitration under the Federal Arbitration Act before one arbitrator in  Houston, Texas, administered by the American Arbitration Association under its Commercial  Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any  court having jurisdiction thereof. The fees and expenses of the arbitrator shall be borne solely by  the non-prevailing party or, in the event there is no clear prevailing party, as the arbitrator deems  appropriate. Except as provided above, each party shall pay its own costs and expenses (including,  without limitation, attorneys' fees) relating to any mediation/arbitration proceeding conducted  under this Section 11.  





 






Active 17097592.5                  12. Waiver and Release.    As a condition to the receipt of any payment or benefit as a severance payment under  Section 4 of this Agreement, Executive must first execute and deliver to the Company a binding  general release, as prepared by the Company in substantially the form attached hereto as Exhibit  A, that releases the Company, its officers, directors, employees, agents, subsidiaries and affiliates  from any and all claims and from any and all causes of action of any kind or character that  Executive may have arising out of Executive's employment with the Company or the termination  of such employment, but excluding (i) any claims and causes of action that Executive may have  arising under or based upon this Agreement, and (ii) any vested rights Executive may have under  any employee benefit plan or deferred compensation plan or program of the Company. The general  release described above must be effective and irrevocable within 55 days after the date of  Executive's termination of employment with the Company (the "Release Period").    13. Employment with Affiliates.    Employment with the Company for purposes of this Agreement includes employment with  any entity in which the Company has a direct or indirect ownership interest of 50% or more of the  total combined voting power of all outstanding equity interests, and employment with any entity  which has a direct or indirect interest of 50% or more of the total combined voting power of all  outstanding equity interests of the Company.    14. Governing Law.    (A) THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN  ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT  REGARD TO CONFLICTS OF LAW PRINCIPLES.  (B) EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO THE  EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS IN  HARRIS COUNTY, TEXAS, FOR THE PURPOSES OF ANY PROCEEDING  ARISING OUT OF THIS AGREEMENT.    15. Entire Agreement.    This Agreement is an integration of the parties' agreement and no agreement or  representatives, oral or otherwise, express or implied, with respect to the subject matter hereof  have been made by either party which are not set forth expressly in this Agreement. This  Agreement hereby expressly terminates, rescinds and replaces in full any prior agreement (written  or oral) between the parties relating to the subject matter hereof.    16. Withholding of Taxes.    The Company shall withhold from all payments and benefits provided under this  Agreement all taxes required to be withheld by applicable law.  





 






11 Active 17097592.5                  17. Beneficiary.  In the event Executive dies before receiving the lump sum severance payment to which  Executive was entitled hereunder, Executive's spouse or, if there is no spouse, the beneficiary  designated by Executive under the Company-sponsored group term life insurance plan, shall  receive such payment.    [End of Page]  





 






12 Active 17097592.5                  IN WITNESS WHEREOF, the Company and Executive have executed this Agreement  effective for all purposes as of the Effective Date.    CIVEO CORPORATION      /s/ Bradley J. Dodson  Name: Bradley J. Dodson  Title: President & CEO      EXECUTIVE    /s/ Carolyn Stone  Name: Carolyn Stone  Title: Vice President, Controller & Corporate  Secretary  





 






          Exhibit A    WAIVER AND RELEASE AGREEMENT    This Waiver and Release Agreement (the "Agreement") is made and entered into  effective as of the  day of _, 20_ by and between Civeo Corporation, a Delaware  corporation ("Employer"), and Carolyn Stone ("Executive") (collectively, the "Parties").  Reference is made herein to the Employment Agreement effective as of between  Employer and Executive. Capitalized terms used herein but not otherwise defined in this  Agreement shall have the meanings given such terms in the Employment Agreement.    18. Termination of Employment.    Effective  as of   ,20_ (the "Separation  Date"), Executive's employment         has  been terminated and he has resigned from and any and all positions he has held with Employer  and any affiliates.    19. Separation Benefits.    In satisfaction of the [Executive / Executive Change of Control] Agreement and in  consideration of Executive's execution (without revocation) of this Agreement and his release of  all claims as provided in this Agreement, and Executive's other agreements herein, Employer  agrees to provide Executive with the following benefits, less all required withholding and other  authorized deductions, provided that the Waiver Effective Date (as defined in Section 14) has  occurred on or before lapse of 55 days following Separation Date (the "Release Period"):    (i) [Insert severance benefits under Section 4 of the Executive Change of  Control Agreement, as applicable]    20. Other Benefits.    Employer shall pay all accrued but unpaid base salary and all accrued but unused vacation  pay to Executive in a lump sum in cash as soon as practicable after the Separation Date.    21. No Other Compensation.    Except as set forth in Sections 2 and 3 above, Executive shall not be entitled to any other  salary, commission, bonuses, employee benefits (including long and short term disability, 40l(k),  and pension), expense reimbursement or compensation from Employer or its affiliates after the  Separation Date and all of Executive's rights to salary, commission, bonuses, employee benefits  and other compensation hereunder which would have accrued or become payable after the  Separation Date from Employer (other than vested benefits under Employer's employee benefit  plans which are payable to Executive pursuant to the terms and conditions set forth in the  applicable plan documents) shall cease upon the Separation Date, other than those expressly  required under applicable law (such as the Consolidated Omnibus Budget Reconciliation Act of  1985).  





 






14 Active 17097592.5      22. General Release.    In consideration of the payments to be made hereunder and having acknowledged the  above-stated consideration as full compensation for and on account of any and all injuries and  damages which Executive has sustained or claimed, or may be entitled to claim, Executive, for  himself, and his heirs, executors, administrators, successors and assigns, does hereby release,  forever discharge and promise not to sue Employer, its parents, subsidiaries, affiliates, successors  and assigns, and its past and present officers, directors, partners, employees, members, managers,  shareholders, agents, attorneys, accountants, insurers, heirs, administrators, executors  (collectively the "Released Parties") from any and all claims, liabilities, costs, expenses,  judgments, attorney fees, actions, known and unknown, of every kind and nature whatsoever in  law or equity, which Executive had, now has, or may have against the Released Parties relating in  any way to Executive's employment with Employer or termination thereof, including but not  limited to, all claims for contract damages, tort damages, special, general, direct, punitive and  consequential damages, compensatory damages, loss of profits, attorney fees and any and all other  damages of any kind or nature; all contracts, oral or written, between Executive and any of the  Released Parties except as otherwise described herein; any business enterprise or proposed  enterprise contemplated by any of the Released Parties, as well as anything done or not done prior  to and including the date of execution of this Agreement. Nothing in this Agreement shall be  construed to release Employer from any obligations set forth in this Agreement.  Executive understands and agrees that this release and covenant not to sue shall apply to  any and all claims or liabilities arising out of or relating to Executive's employment with Employer  and the termination of such employment, including, but not limited to: claims of discrimination  based on age, race, color, sex (including sexual harassment), religion, national origin, marital  status, parental status, veteran status, union activities, disability or any other grounds under  applicable federal, state or local law, including, but not limited to, claims arising under the Age  Discrimination in Employment Act of 1967, as amended; the Americans with Disabilities Act;  and Title VII of the Civil Rights Act, as amended, the Civil Rights Act of 1991; 42 U.S.C. § 1981,  the Employee Retirement Income Security Act, the Consolidated Omnibus Budget Reconciliation  Act of 1985 as amended, the Rehabilitation Act of 1973, the Equal Pay Act of 1963 (EPA) as well  as any claims regarding wages; benefits; vacation; sick leave; business expense reimbursements;  wrongful termination; breach of the covenant of good faith and fair dealing; intentional or  negligent infliction of emotional distress; retaliation; outrage; defamation; invasion of privacy;  breach of contract; fraud or negligent misrepresentation; harassment; breach of duty; negligence;  discrimination; claims under any employment, contract or tort laws; claims arising under any other  federal law, state law, municipal law, local law, or common law; any claims arising out of any  employment contract, policy or procedure; and any other claims related to or arising out of his  employment or the separation of his employment with Employer.  In addition, Executive agrees not to cause or encourage any legal proceeding to be  maintained or instituted against any of the Released Parties.  This release does not apply to any claims for unemployment compensation or any other  claims or rights which, by law, cannot be waived, including the right to file an administrative  charge or participate in an administrative investigation or proceeding; provided, however that  





 






15 Active 17097592.5                  Executive disclaims and waives any right to share or participate in any monetary award resulting  from the prosecution of such charge or investigation or proceeding.    23. Acknowledgement of Waiver of Claims under ADEA.    Executive expressly acknowledges that he is voluntarily, irrevocably and unconditionally  releasing and forever discharging Employer and its respective present and former parents,  subsidiaries, divisions, affiliates, branches, insurers, agencies, and other offices from all rights or  claims he has or may have against Employer including, but not limited to, without limitation, all  charges, claims of money, demands, rights, and causes of action arising under the Age  Discrimination in Employment Act of 1967, as amended ("ADEA"), including, but not limited to,  all claims of age discrimination in employment and all claims of retaliation in violation of ADEA.  Executive further acknowledges that the consideration given for this waiver of claims under the  ADEA is in addition to anything of value to which he was already entitled in the absence of this  waiver. Executive further acknowledges: (a) that he has been informed by this writing that he  should consult with an attorney prior to executing this Agreement; (b) that he has carefully read  and fully understands all of the provisions of this Agreement; (c) he is, through this Agreement,  releasing Employer from any and all claims he may have against it; (d) he understands and agrees  that this waiver and release does not apply to any claims that may arise under the ADEA after the  date he executes this Agreement; (e) he has at least 211 days within which to consider this  Agreement; and (f) he has seven days following his execution of this Agreement to revoke the  Agreement (as provided in Section 14 of this Agreement); and (g) this Agreement shall not be  effective until the revocation period has expired and Executive has signed and has not revoked the  Agreement.  24. Confidential Information and Protective Covenants.    The Parties agree that all terms and provisions of Section 14 of the Employment  Agreement related to Confidential Information, Non-Competition and Non-Solicitation shall  remain in full force and effect for the applicable period following the Separation Date as provided  in the Employment Agreement.   Executive represents that he has complied with Section 14 of the  Employment Agreement related to the return of Employer's Confidential Information and other  Employer property.    25. Non-Disparagement.    Executive shall not, directly or indirectly, make or cause to be made and shall use his best  efforts to cause the officers, directors, employee, agents and representatives of any entity or person  controlled by Executive not to make or cause to be made, any disparaging, denigrating, derogatory  or other negative, misleading or false statement orally or in writing to any person or entity,  including members of the investment community, press, and customers, competitors and advisors  to Employer, about Employer, its shareholders, subsidiaries or affiliates, their respective officers  or members of their boards of directors, or the business strategy or plans, policies, practices or  operations of Employer, its shareholders, subsidiaries or  affiliates; provided,    1 If termination is part of a group for purposes of ADEA, increase to 45 days and include required demographic  information  





 






16 Active 17097592.5                  however, that (i) nothing in this Agreement shall prohibit Executive from reporting possible  violations of federal law or regulation to any governmental agency or entity, including but not  limited to the Department of Justice, the Securities and Exchange Commission, the Congress, and  any agency Inspector General, or making other disclosures that are protected under the  whistleblower provisions of federal law or regulation, and (ii) Executive does not need prior  authorization from the Employer to make any such reports or disclosures and Executive is not  required to notify the Employer that he has made such reports or disclosures.    26. Cooperation Agreement.    Executive acknowledges that in the course of his employment with Employer, Executive  has gained knowledge and experience and/or was a witness to events and circumstances that may  arise in or relate to Employer's defense or prosecution of current or subsequent proceedings.  Executive agrees to cooperate fully with Employer's reasonable request as a witness and/or  consultant in defending or prosecuting claims of all kinds, including but not limited to, any  litigation, administrative actions or arbitrations.    27. Resolution of Claims.    The provisions of this Agreement are contractual and not merely recitals and are intended  to resolve disputed claims. No party hereto admits liability of any kind and no portion of this  Agreement shall be construed as an admission of liability.    28. No Assignment of Claims.    Executive and Employer represent, recognizing that the truth of the following  representation is a material consideration upon which this Agreement is based, that they have not  heretofore assigned or transferred, or purported to assign or transfer, to any person or entity, any  claim or any portion thereof, or interest therein relating to any claims being released by any party  to this Agreement, and that they are unaware of any other entity having any interest in such claims,  and agree to indemnify and hold the other party harmless from and against any and all claims,  based on or arising out of any such third-party interest in, or assignment or transfer, or purported  assignment or transfer of, any claims, or any portion thereof or interest therein.    29. Governing Law.    (a) THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN  ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT REGARD TO  CONFLICTS OF LAW PRINCIPLES.  (b) EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO THE  EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS IN HARRIS  COUNTY, TEXAS, FOR THE PURPOSES OF ANY PROCEEDING ARISING OUT OF THIS  AGREEMENT.  





 






17 Active 17097592.5                  30. Sufficient Time to Review.    Executive acknowledges and agrees that: (a) he has had reasonable and sufficient time to  read and review this Agreement and that he has, in fact, read and reviewed this Agreement; (b)  that he has the right to consult with legal counsel regarding this Agreement and is encouraged to  consult with legal counsel with regard to this Agreement; (c) that he has had (or has had the  opportunity to take) 212 calendar days to discuss the Agreement with a lawyer of his choice before  signing it and, if he signs before the end of that period, he does so of his own free will and with  the full knowledge that he could have taken the full period; (d) that he is entering into this  Agreement freely and voluntarily and not as a result of any coercion, duress or undue influence;  (e) that he is not relying upon any oral representations made to him regarding the subject matter  of this Agreement; (f) that by this Agreement he is receiving consideration in addition to that  which he was already entitled; and (g) that he has received all information he requires from  Employer in order to make a knowing and voluntary release and waiver of all claims against  Employer.  31. Revocation/Payment.    Executive acknowledges and agrees that he has seven days from the date of the execution  of this Agreement within which to rescind or revoke this Agreement by providing notice in writing  to Employer. To revoke this Agreement, Executive must deliver written notice of such revocation  to [Name, Title, Address] no later than [Date]. Executive further understands that the Agreement  will have no force and effect until the end of that seventh day (the "Waiver Effective Date"), and  that he will receive the benefits identified in Section 2 above after the Waiver Effective Date and  following Employer's receipt of the Agreement as executed by Executive if the Agreement is not  revoked. If Executive revokes the Agreement pursuant to this Section 14, Employer will not be  obligated to provide Executive with the separation payments identified in Section 2 and other  benefits described in this Agreement, and this Agreement shall be deemed null and void.    32. Taxes.    All payments made by Employer under this Agreement will be subject to applicable  federal, state and local taxes, and withholdings required for the same, which taxes will be the  responsibility of Executive.  Executive is hereby advised to consult immediately with his own tax  advisor regarding the tax consequences of this Agreement.    33. Entire Agreement; Severability.    This Agreement constitutes the entire agreement and understanding between the Parties  and each of their affiliates (including, without limitation, the Released Parties) and replaces,  cancels and supersedes any prior agreements and understandings relating to the subject matter  hereof including, without limitation, the Employment Agreement, except as expressly provided  herein, and all prior representations, agreements, understandings and undertakings among the  parties hereto with respect to the subject matter hereof are merged herein. The Parties agree that    2 Increase to 45 days in the event termination is part of a group under ADEA.  





 






18 Active 17097592.5                  this Agreement is the entire agreement between the parties relating to the subject matter hereof,  and that there is no agreement, representation or other inducement for the execution of this  Agreement other than the consideration recited herein.    Should any provision of this Agreement be found to be invalid or unenforceable, the  remaining provisions of this Agreement shall be deemed to be in full force and effect, at  Employer's sole discretion, to the fullest extent permitted by law. Any waiver of any term or  provision of this Agreement shall not be deemed a continuing waiver and shall not prevent  Employer from enforcing such provision in the future.    34. Section 409A.    Each payment under this Agreement, including each payment in a series of installment  payments, is intended to be a separate payment for purposes of Treas. Reg. §1.409A-2(b), and is  intended to be: (a) exempt from Section 409A of the Internal Revenue Code of 1986, the  regulations and other binding guidance promulgated thereunder ("Section 409A"), including, but  not limited to, by compliance with the short-term deferral exemption as specified in Treas. Reg.  § l.409A-l(b)(4), or (b) in compliance with Section 409A, including, but not limited to, being paid  pursuant to a fixed schedule or specified date pursuant to Treas. Reg. § l.409A-3(a) and the  provisions of this Agreement will be administered, interpreted and construed accordingly.    35. Binding Effect.    This Agreement shall be binding on and inure to the benefit of each of the parties hereto,  as well as their respective successors, assigns, heirs, executors and administrators.  EMPLOYEE AFFIRMS THAT HE HAS CONSULTED WITH HIS ATTORNEY OR HAS  HAD AN OPPORTUNITY TO DO SO PRIOR TO SIGNING THIS AGREEMENT AND  THAT HE IS EXECUTING THE AGREEMENT VOLUNTARILY AND WITH FULL  UNDERSTANDING OF ITS CONSEQUENCES.    [Signature page follows]  





 






19 Active 17097592.5                  IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first  written above.    CIVEO CORPORATION      By:       Name:     Title: _        EXECUTIVE        Name: Carolyn Stone  Title: Vice President, Controller &  Corporate Secretary