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Unassociated Document

    
      Exhibit
        10.6

       

      NONSTATUTORY
        STOCK OPTION AGREEMENT

       

      AGREEMENT
        made as
        of the <DATE> between STANDARD
        DRILLING, INC.,
        a
        Delaware corporation (the “Company”), and <Executive>.
        (“Executive”).

       

      To
        carry
        out the purposes of the STANDARD
        DRILLING, INC.
        2006 STOCK INCENTIVE PLAN
        (the
“Plan”), by affording Executive the opportunity to purchase shares of the common
        stock of the Company, par value $0.001 per share (“Stock”), and in consideration
        of the mutual agreements and other matters set forth herein and in the Plan,
        the
        Company and Executive hereby agree as follows: 

       

      1.
        Grant
        of Option.
        The
        Company hereby irrevocably grants to Executive the right and option (“Option”)
        to purchase all or any part of an aggregate of <NUMBER> shares of Stock on
        the terms and conditions set forth herein and in the Plan, which Plan is
        incorporated herein by reference as a part of this Agreement. In the event
        of
        any conflict between the terms of this Agreement and the Plan, the Plan shall
        control. Capitalized terms used but not defined in this Agreement shall have
        the
        meaning attributed to such terms under the Plan, unless the context requires
        otherwise. This Option shall not be treated as an incentive stock option
        within
        the meaning of section 422(b) of the Code. 

       

      2.
        Purchase
        Price.
        The
        purchase price of Stock purchased pursuant to the exercise of this Option
        shall
        be <PRICE> which has been determined to be not less than the Fair Market
        Value of the Stock at the date of grant of this Option. For all purposes
        of this
        Agreement, Fair Market Value of Stock shall be determined in accordance with
        the
        provisions of the Plan. 

       

      3.
        Exercise
        of Option.
        Subject
        to the earlier expiration of this Option as herein provided, this Option
        may be
        exercised, by written notice to the Company at its principal executive office
        addressed to the attention of its Corporate Secretary (or such other officer
        or
        Executive of the Company as the Company may designate from time to time),
        at any
        time and from time to time after the date of grant hereof. Any common stock
        so
        issued shall bear a legend indicating it must be forfeited back to the company
        if the closing price of our common stock on any exchange on which the common
        stock of Standard Drilling, Inc. is traded or quoted fails to equal or exceed
        $2.50 for 10 trading days prior to January 25, 2008. No legend will be required
        if the restriction has been satisfied prior to the issuance of the common
        stock
        subject to the option.

       

      This
        Option shall survive the Executive’s termination date. 

       

      This
        Option shall not be exercisable in any event after the expiration of 1.5
        years
        from the date of grant hereof, January 25, 2008. Except as provided in Paragraph
        4, the purchase price of shares as to which this Option is exercised shall
        be
        paid in full at the time of exercise (a) in cash (including check, bank draft
        or
        money order payable to the order of the Company), (b) by delivering or
        constructively tendering to the Company shares of Stock having a Fair Market
        Value equal to the purchase price (provided such shares used for this purpose
        must have been held by Executive for such minimum period of time as may be
        established from time to time by the Committee), (c) if the Stock is readily
        tradable on a national securities market, through a “cashless exercise” in
        accordance with a Company established policy or program for the same, or
        (d) any
        combination of the foregoing. No fraction of a share of Stock shall be issued
        by
        the Company upon exercise of an Option or accepted by the Company in payment
        of
        the exercise price thereof; rather, Executive shall provide a cash payment
        for
        such amount as is necessary to affect the issuance and acceptance of only
        whole
        shares of Stock. Unless and until a certificate or certificates representing
        such shares shall have been issued by the Company to Executive, Executive
        (or
        the person permitted to exercise this Option in the event of Executive’s death)
        shall not be or have any of the rights or privileges of a shareholder of
        the
        Company with respect to shares acquirable upon an exercise of this Option.
        

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      4.
        Stock
        Appreciation Right.
        In lieu
        of exercising this Option, with the consent of the Committee Executive (or
        the
        person entitled to exercise this Option in the event of Executive’s death) may
        elect to have the Company compute an amount (the “Appreciation Amount”) equal to
        the excess of the aggregate Fair Market Value of any number of the shares
        of
        Stock with respect to which this Option is exercisable over the aggregate
        purchase price of such number of shares and pay to Executive (or such person),
        in lieu of Executive’s purchasing such number of shares, an amount of cash, a
        whole number of shares of Stock, or any combination thereof as Executive
        or such
        person may elect, with the consent of the Committee, equal to the Appreciation
        Amount. Notwithstanding anything to the contrary herein, if Executive is
        then an
        officer, director or affiliate of the Company who is subject to section 16
        of
        the Securities Exchange Act of 1934, as amended (the “Securities Exchange Act”),
        this Option may not be exercised prior to the expiration of six months from
        the
        date of grant hereof (except in the event of the death or disability of
        Executive prior to the expiration of such six month period); thereafter,
        any
        exercise of this Option or election pursuant to this Paragraph 4 wherein
        Executive would receive any portion of the Appreciation Amount in cash (other
        than cash in lieu of a fractional share) may be made only during a period
        beginning on the third business day and ending on the twelfth business day
        following the date of release by the Company for publication of quarterly
        and
        annual summary statements of sales and earnings. Should Executive elect pursuant
        to this Paragraph 4 to receive the Appreciation Amount solely in shares of
        Stock, the number of shares of Stock distributable to Executive shall be
        the
        highest whole number of shares whose value does not exceed the Appreciation
        Amount, and any fractional share shall be paid in cash.

       

      5.
        Withholding
        of Tax.
        To the
        extent that the exercise of this Option or the disposition of shares of Stock
        acquired by exercise of this Option results in compensation income or wages
        to
        Executive for federal, state or local tax purposes, Executive shall deliver
        to
        the Company at the time of such exercise or disposition such amount of money
        as
        the Company may require to meet its minimum obligation under applicable tax
        laws
        or regulations. Executive may elect with respect to this Option to surrender
        or
        authorize the Company to withhold shares of Stock (valued at their Fair Market
        Value on the date of surrender or withholding of such shares) to satisfy
        any tax
        required to be withheld upon exercise of this Option. An election pursuant
        to
        the preceding sentence shall be referred to herein as a “Stock Withholding
        Election.” All Stock Withholding Elections shall be made by written notice to
        the Company’s Corporate Secretary (or such other officer or Executive of the
        Company as the Company may designate from time to time). If Executive is
        not a
        Section 16 Person (as hereinafter defined), Executive may revoke such election
        by delivering to the Company’s Corporate Secretary (or such other designated
        officer or Executive) written notice of such revocation prior to the date
        such
        election is implemented through actual surrender or withholding of shares
        of
        Stock (the “Withholding Date”). If Executive is a Section 16 Person, the Stock
        Withholding Election must:

       

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

       

      (a)
        Be
        irrevocable and made six months prior to the Withholding Date; or

       

      (b)
        (i)
        be
        approved by the Committee either before or after such election is made, (ii)
        be
        made, and the Withholding Date occur, during a period beginning on the third
        business day following the date of release by the Company for publication
        of
        quarterly and annual summary statements of sales and earnings and ending
        on the
        twelfth business day following such date, and (iii) be made more than six
        months
        after the date of the grant of this Option to Executive; or

       

      (c)
        be
        made in
        connection with (i) a delivery to the Company of shares of Stock owned by
        Executive prior to the exercise of this Option to satisfy the portion of
        the tax
        required to be withheld with respect to those shares of Stock received by
        Executive upon exercise of this Option for which payment of the purchase
        price
        was made to the Company in shares of Stock owned by Executive prior to the
        exercise of this Option pursuant to Paragraph 3 hereof and (ii) the exercise
        of
        this Option more than six months after the date of grant hereof.

       

      If
        Executive fails to pay the required amount to the Company or fails to make
        a
        Stock Withholding Election, the Company is authorized to withhold from any
        cash
        remuneration (or, if Executive is not a Section 16 Person, Stock remuneration,
        including withholding any shares of Stock distributable to Executive upon
        exercise of this Option) then or thereafter payable to Executive any tax
        required to be withheld by reason of the exercise of this Option or the
        disposition of shares of Stock acquired by exercise of this Option. For purposes
        of this Agreement, the term “Section 16 Person” means an officer, director or
        affiliate of the Company or a former officer, director or affiliate of the
        Company who is subject to Section 16 of the Securities Exchange
        Act.

       

      6.
        Certain
        Restrictions.
        Shares
        of Stock purchased pursuant to the exercise of this Option shall be subject
        to
        the following restrictions (until such time as such restrictions terminate
        as
        provided below):

       

      (a)
        such
        shares of Stock may not be sold,
        assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered
        or disposed of by Executive;
        and

       

      (b)
        if
        Executive’s employment with the Company is terminated for “cause,” as defined in
        Paragraph 3(c) hereof, the Company (or any subsidiary of the Company designated
        by it) shall have the option for 60 days after such termination of employment
        to
        purchase for cash all or any part of such shares of Stock at the purchase
        price
        paid therefore upon exercise of this Option.

       

      The
        restrictions imposed on such shares of Stock under this Paragraph shall
        terminate on the earliest to occur of the following: 

       

      (a)
        the
        90th
        day after the date on which shares of Stock are first listed or admitted
        to
        unlisted trading privileges on a national stock exchange or on the National
        Market System of NASDAQ or have sales or bid and offer quotations reported
        in
        the automated quotation system operated by the National Association of
        Securities Dealers, Inc.; 

       

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

       

      (b)
        the
        2nd
        anniversary of the date of grant of this Option; 

       

      (c)
        as
        to any
        shares of Stock for which the Company’s (or a subsidiary’s) 60 day option to
        purchase upon termination of Executive’s employment with the Company shall have
        become exercisable but shall have expired without having been exercised,
        on the
        first business day of the calendar month next following the expiration of
        such
        60 day option period; 

       

      (d)
        the
        first
        business day of the calendar month next following the termination of Executive’s
        employment with the Company because of Executive’s death, normal or early
        retirement in accordance with his employer’s established employment policies or
        practices, or disability (within the meaning of section 22(e)(3) of the Code);
        or 

       

      (e)
        the
        date
        of the termination of this Option due to an adjustment being made to this
        Option
        pursuant to Paragraph IX of the Plan.

       

      7.
        Lock-up
        Provision.
        Executive hereby agrees that in the event of any underwritten public offering
        of
        stock, including an initial public offering of stock, made by the Company
        pursuant to an effective registration statement filed under the Securities
        Act
        of 1933, as amended (the “Securities Act”), Executive shall not offer, sell,
        contract to sell, pledge, hypothecate, grant any option to purchase or make
        any
        short sale of, or otherwise dispose of any shares of stock of the Company
        or any
        rights to acquire stock of the Company for such period of time from and after
        the effective date of such registration statement as may be established by
        the
        underwriter for such public offering; provided,
        however,
        that
        such period of time shall not exceed 180 days from the effective date of
        the
        registration statement to be filed in connection with such public offering.
        The
        foregoing limitation shall not apply to shares registered in the public offering
        under the Securities Act. Executive shall be subject to this Paragraph provided
        and only if the officers and directors of the Company are also subject to
        similar arrangements.

       

      8.
        Status
        of Stock.
        Executive understands that at the time of the execution of this Agreement
        the
        shares of Stock to be issued upon exercise of this Option have not been
        registered under the Securities Act, or any state securities law, and that
        the
        Company does not currently intend to affect any such registration. Until
        the
        shares of Stock acquirable upon the exercise of the Option have been registered
        for issuance under the Securities Act, the Company will not issue such shares
        unless the holder of the Option provides the Company with a written opinion
        of
        legal counsel, who shall be satisfactory to the Company, addressed to the
        Company and satisfactory in form and substance to the Company’s counsel, to the
        effect that the proposed issuance of such shares to such Option holder may
        be
        made without registration under the Securities Act. In the event exemption
        from
        registration under the Securities Act is available upon an exercise of this
        Option, Executive (or the person permitted to exercise this Option in the
        event
        of Executive’s death or incapacity), if requested by the Company to do so, will
        execute and deliver to the Company in writing an agreement containing such
        provisions as the Company may require to assure compliance with applicable
        securities laws.

       

      Executive
        agrees that the shares of Stock which Executive may acquire by exercising
        this
        Option shall be acquired for investment without a view to distribution, within
        the meaning of the Securities Act, and shall not be sold, transferred, assigned,
        pledged or hypothecated in the absence of an effective registration statement
        for the shares under the Securities Act and applicable state securities laws
        or
        an applicable exemption from the registration requirements of the Securities
        Act
        and any applicable state securities laws. Executive also agrees that the
        shares
        of Stock which Executive may acquire by exercising this Option will not be
        sold
        or otherwise disposed of in any manner which would constitute a violation
        of any
        applicable federal or state securities laws.

       

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

       

      In
        addition, Executive agrees that (i) the certificates representing the shares
        of
        Stock purchased under this Option may bear such legend or legends as the
        Committee deems appropriate in order to assure compliance with Paragraph
        6,
        Paragraph 7, and applicable securities laws, (ii) the Company may refuse
        to
        register the transfer of the shares of Stock purchased under this Option
        on the
        stock transfer records of the Company if such proposed transfer would in
        the
        opinion of counsel satisfactory to the Company constitute a violation of
        Paragraph 6, Paragraph 7, or any applicable securities law, and (iii) the
        Company may give related instructions to its transfer agent, if any, to stop
        registration of the transfer of the shares of Stock purchased under this
        Option.

       

      9.
        Employment
        Relationship.
        For
        purposes of this Agreement, Executive shall be considered to be in the
        employment of the Company as long as Executive remains an Executive of either
        the Company, an Affiliate, or a corporation or a parent or subsidiary of
        such
        corporation assuming or substituting a new option for this Option. Without
        limiting the scope of the preceding sentence, it is expressly provided that
        Executive shall be considered to have terminated employment with the Company
        at
        the time of the termination of the “Affiliate” status under the Plan of the
        entity or other organization that employs Executive. Any question as to whether
        and when there has been a termination of such employment, and the cause of
        such
        termination, shall be determined by the Committee and its determination shall
        be
        final.

       

      10.
        Restrictions
        on Transfer.
        An Award
        shall be transferable freely transferable on the date of issuance.

       

      11.
        Binding
        Effect.
        This
        Agreement shall be binding upon and inure to the benefit of any successors
        to
        the Company and all persons lawfully claiming under Executive.

       

      12.
        Entire
        Agreement.
        This
        Agreement constitutes the entire agreement of the parties with regard to
        the
        subject matter hereof, and contains all the covenants, promises,
        representations, warranties and agreements between the parties with respect
        to
        the Option granted hereby. Without limiting the scope of the preceding sentence,
        all prior understandings and agreements, if any, among the parties hereto
        relating to the subject matter hereof are hereby null and void and of no
        further
        force and effect. Any modification of this Agreement shall be effective only
        if
        it is in writing and signed by both Executive and an authorized officer of
        the
        Company.

       

      13.
        Governing
        Law. This
        Agreement shall be governed by, and construed in accordance with, the laws
        of
        the State of Delaware, without regard to conflicts of laws principles
        thereof.

       

      14.Jurisdiction.Each
        of
        the Company and Executive hereby irrevocably (i) submits and consents to
        the
        personal jurisdiction of the state and federal courts sitting in Kent County,
        Delaware with respect to any suit, action, or proceeding arising out of or
        based
        upon this Agreement or the transactions contemplated hereby and (ii) waives
        the
        right to contend in any such action that venue is improperly laid in any
        such
        court or that it is an improper or inconvenient forum or lacks personal
        jurisdiction. If Executive now or hereafter resides outside the State of
        Delaware, Executive hereby irrevocably appoints the General Counsel of the
        Company as Executive’s authorized agent upon whom process may be served at such
        General Counsel’s Company office for notices under this Agreement in any suit,
        action, or proceeding arising out of or based upon this Agreement or the
        transactions contemplated hereby that may be instituted in any state or federal
        court in the State of Delaware by the Company, and Executive hereby agrees
        to so
        act. Executive agrees to take any and all action, including the filing of
        any
        and all documents and instruments, that may be necessary to continue such
        appointment in full force and effect as aforesaid. Service of process upon
        the
        authorized agent of Executive and written notice of such service to Executive
        shall be deemed, in every respect, effective service of process as to Executive
        for purposes of any such suit, action, or proceeding instituted in any state
        or
        federal court in the State of Delaware.

       

      Nonstatutory
        Option

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

         

      

      IN
        WITNESS WHEREOF,
        the
        Company has caused this Agreement to be duly executed by its officer thereunto
        duly authorized, and Executive has executed this Agreement, all as of the
        day
        and year first above written.

       

      
        	 	
                STANDARD
                  DRILLING, INC.

              	 
	 	 	 
	
                 By: 
                  

              	 	 
	 	
                 Prentis
                  B. Tomlinson, Jr., CEO

              	 
	 	 	 
	 	 	 
	 	
                 <EXECUTIVE>,
                  (“Executive”)

              	 
	 	 	 
	 	 	 
	 	
                Print
                  NameUnassociated Document

    Exhibit
      10.7

     

    EMPLOYMENT
      AGREEMENT

    

    This
      EMPLOYMENT AGREEMENT (the "Agreement"),
      entered
      into on July 27, 2006 but effective as of February 14, 2006 (the "Effective
      Date")
      by and
      among Standard Drilling, Inc. (referred to as "STANDARD"
      or the
"Company")
      and
      Prentis B. Tomlinson, Jr. ("Executive");

     

    

     

    W
      I T N E S S E T H:

    

    WHEREAS,
      the Company desires to retain the services of the Executive, and the Executive
      is willing to provide such services to the Company, all upon the terms and
      conditions set forth herein;

     

    NOW
      THEREFORE, in consideration of the premises, the terms and provisions set forth
      herein, the mutual benefits to be gained by the performance thereof and other
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto agree as follows:

     

    SECTION
      1.
Employment.
      The
      Company hereby employs the Executive, and the Executive hereby accepts such
      employment, all upon the terms and conditions set forth herein. 

     

    SECTION
      2.
Term.
      Unless
      sooner terminated pursuant to Section 5 of this Agreement, the Executive shall
      be employed for a term commencing on the Effective Date and ending on the third
      anniversary of the Effective Date (the "Term");
      provided, however, that the Term shall automatically be extended on a daily
      basis for an additional day such that, at all times, the remaining Term shall
      be
      three years. Notwithstanding any other provision of this Agreement to the
      contrary, this Agreement may be terminated by Company upon written notice,
      in
      which case the Agreement will terminate upon the expiration of the three-year
      Term.

     

    SECTION
      3.
Duties
      and Responsibilities.

     

    A.
      Capacity.
      The
      Executive shall serve in the capacity of Chairman and CEO of
      STANDARD.
      During
      the term of this Agreement, as Chairman and CEO of the Company, Executive
will
      have
      supervisory responsibility for
      all
      operations of the Company and
      such
      duties normally
      incident to that position
      as the
      Board of Directors of Standard
      (the "Board") may reasonably prescribe. 

     

    B.
      Duties.
      The
      Executive shall
      devote such of his
      business time, attention and energies to the business of the Company
as
      are
      reasonably necessary to perform his duties under this Agreement. Such duties
      shall be performed at the headquarters of the Company in Houston, Texas and
      at
      such other places as the Board may reasonably require without necessitating
      any
      change in Executive's place of residence. The Executive shall not be engaged
      in
      any other business activity, whether or not pursued for gain, profit or other
      pecuniary advantage, which would impair his ability to fulfill his duties to
      the
      Company under this Agreement, without the prior written consent of the
      Board.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SECTION
      4.
Compensation.

     

    A.
      Base
      Salary.
      The
      Company shall pay the Executive a salary (the "Base
      Salary")
      of U.S.
      $200,000 per annum. The Base Salary shall be payable no
      less
      often than monthly in
      accordance with the general payroll practices of the Company in effect from
      time
      to time. The Company shall review the Base Salary then being paid to the
      Executive at such times as the Company regularly reviews the compensation paid
      to employees. Upon completion of such review, the Company in its sole discretion
      may increase or maintain (but
      not
      reduce) the
      Executive's
      then
      current Base Salary, and any increased salary shall be the "Base
      Salary"
      for all
      purposes under this Agreement. Notwithstanding the above, the Base Salary shall
      be increased to $400,000 upon the third anniversary
      date from the Effective
      Date
      of this
Agreement.
      

     

    B. Stock
      Options. The
      Company shall grant the Executive non-qualified options in Standard’s 2006
      Option Plan to purchase 4,000,000 non-qualified options to purchase the
      Company's stock at $.07 per share. Such options shall be for a term commencing
      on July 27, 2006 and this Option shall be exercisable Subject to the earlier
      expiration of this Option as herein provided, this Option may be exercised,
      by
      written notice to the Company at its principal executive office addressed to
      the
      attention of its Corporate Secretary (or such other officer or Executive of
      the
      Company as the Company may designate from time to time), at any time and from
      time to time after the date of grant hereof. Any common stock so issued shall
      bear a legend indicating it must be forfeited back to the company if the closing
      price of our common stock on any exchange on which the common stock of Standard
      Drilling, Inc. is traded or quoted fails to equal or exceed $2.50 for 10 trading
      days. Prior to January 25, 2008, no legend will be required if the restriction
      has been satisfied prior to the issuance of the common stock subject to the
      option. This Option shall survive the Executive’s termination date. This Option
      shall not be exercisable in any event after the expiration of 1.5 years from
      the
      date of grant hereof, January 25, 2008.

     

    C.
      Bonus.
      The
      Executive shall be eligible, in the sole discretion of the Board, to be
      considered for a bonus following each fiscal year
      ending during the Term based upon the Executive's
      performance and the operating results of the Company and their affiliates during
      such year in relation to performance targets established by the Board.
      Determination of the bonus amount shall take into account such unusual or
      nonrecurring items as the Chief Executive Officer of STANDARD and/or
      the
      Board deem appropriate.

     

    D.
      Benefits.
      If and
      to the extent that the Company maintains employee benefit plans (including,
      but
      not limited to, pension, profit sharing, disability, accident, medical, life
      insurance and hospitalization plans), the Executive shall be entitled to
      participate therein in accordance with the terms of such plans and the
      Company's
      regular
      practices with respect to its employees. In addition, the Company promises
      to
      provide reasonable health and dental insurance for the Executive and his family,
      including $500,000 in life insurance. 

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    E.
      Expenses.
      The
      Executive shall be entitled to reimbursement from the Company for reasonable
      out-of-pocket expenses incurred by him in the course of the performance of
      his
      duties, hereunder, including all reasonable commuting and communication costs,
      upon the submission of appropriate documentation. 

     

    F.
      Vacation.
      The
      Executive shall be entitled to five weeks
      of
      paid vacation per calendar year, which, if not taken, may be carried forward
      to
      any subsequent year, except in accordance with Company policy applicable to
      the
      Company's
      employees generally. The Executive shall also be entitled to such holidays
      and,
      subject to the provisions of Section 5, other paid or unpaid leaves of absence
      as are consistent with the Company's
      normal
      policies. 

     

    SECTION
      5.
Termination
      of Employment.

     

    Notwithstanding
      the provisions of Section 2, the Executive's
      employment hereunder shall terminate under any of the following
      conditions:

     

    A.
      Death.
      The
      Executive's
      employment under this Agreement shall terminate automatically upon his
      death.

     

    B.
      Disability.
      The
      Executive's employment under this Agreement shall terminate automatically upon
      his Disability. For purposes of this Agreement, "Disability"
      means
      permanent and total disability (within the meaning of section 22(e) (3) of
      the
      Internal Revenue Code of 1986, as amended, or any successor provision) which
      has
      existed for at least 180 consecutive days.

     

    C.
      Termination
      by the Company Without Cause
      or by
      Executive for Good Reason.
      The
      Company may terminate the Executive's
      employment hereunder without "Cause"
      (as
      hereinafter defined) on three months written
      notice by the Company
      to the
      Executive, and the Executive may terminate his employment for "Good Reason"
      (as
      hereinafter defined) as set forth in Section 5(E) below. Such terminations
      will
      cause
      the
      automatic vesting of any
      stock
      options, restricted stock and any other incentive compensation awarded to
      Executive not previously vested.

     

    D.
      Termination
      by the Company for Cause.
      The
      Executive's
      employment hereunder may be terminated for Cause upon written notice by the
      Company. For purposes of this Agreement, "Cause"
      shall
      mean (i) the willful and continued failure by the Executive to substantially
      perform his obligations under this Agreement (other than such failure resulting
      from his Disability) after a demand for substantial performance has been
      delivered to him by the Board which specifically identifies the manner in which
      the Board believes the Executive has not substantially performed such provisions
      and the Executive has failed to remedy the situation three months after such
      demand; (ii) the Executive's willfully engaging in conduct materially and
      demonstrably injurious to the property or business of the Company, including
      without limitation, fraud, misappropriation of funds or other property of the
      Company, other willful misconduct, gross negligence or conviction of a felony
      or
      any crime of moral turpitude; or (iii) the Executive's material breach of this
      Agreement which breach has not been remedied by the Executive within three
      months after the receipt by the Executive of written notice from the Company
      that the Executive is in material breach of this Agreement, specifying the
      particulars of such breach.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    For
      purposes of this Agreement, no act, or failure to act, on the part of the
      Executive shall be deemed "willful"
      or
      engaged in "willfully"
      if it
(i)
      was
      due
      primarily to an error in judgment or negligence, but shall be deemed
"willful"
      or engaged in "willfully"
      only if
      done, or omitted to be done, by the Executive not in good faith and without
      reasonable belief that his action or omission was in the best interest of the
      Company,
      (ii) was
      approved in advance by the Chief Executive Officer or the Board, or (iii) was
      done or omitted in accordance with the terms of the applicable Company policy
      then in effect.
      Notwithstanding the foregoing, the Executive shall not be deemed to have been
      terminated as a result of "Cause"
      hereunder
      unless and until there shall have been delivered to the Executive a copy of
      a
      resolution duly adopted by the affirmative vote of not less than three-quarters
      of the Board then in office at a meeting of the Board called and held for such
      purpose (after reasonable notice to the Executive and an opportunity for the
      Executive, together with his counsel, to be heard before the Board), finding
      that, in the good faith opinion of the Board, the Executive has committed an
      act
      set forth above in this Section 5(D) and specifying the particulars thereof
      in
      detail. Nothing herein shall limit the right of the Executive or his legal
      representative to contest the validity or propriety of any such
      determination.

     

    E.
      Termination
      by the Executive for Good Reason.
      The
      Executive may terminate his employment hereunder for "Good
      Reason."
      For
      purposes of this Agreement, "Good
      Reason"
      for
      termination shall mean any of the following (which occur without the
      Executive's
      prior
      written consent):

     

    (1)
      a
      decrease
      in the Executive's
      Base
      Salary;

     

    (2)
      a
      materially adverse diminution of the overall level of responsibilities of the
      Executive;

     

    (3)
      a
      material
      breach by the Company of any term or provision of this Agreement;

     

    (4)
      after
      a
      Change of Control (as defined in Section 7(B)) and during the Effective Period
      (as defined in Section 7(C)), (a) the failure of the Company to continue in
      effect any benefit or compensation plan (including, but not limited to, any
      bonus, incentive, retirement, supplemental executive retirement, savings, profit
      sharing, pension, performance, stock option, stock purchase, deferred
      compensation, life insurance, medical, dental, health, hospital, accident or
      disability plans) in which the Executive is participating at the time of such
      Change of Control (or plans providing to the Executive, in the aggregate,
      substantially similar benefits as the benefits enjoyed by the Executive under
      the benefit and compensation plans in which the Executive is participating
      at
      the time of such Change of Control), or (b) the taking of any action by the
      Company that would adversely affect the Executive's participation in or
      materially reduce the Executive's benefits under any of such plans or deprive
      the Executive of any material fringe benefit enjoyed by the Executive at the
      time of such Change in Control;

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    (5)any
      personal reason that the Compensation Committee of the Board in its discretion
      determines shall constitute Good Reason.

     

    However,
      that no event or condition described in clauses (1) - (4) of this Section 5(E)
      shall constitute Good Reason unless (a) the Executive gives the Company written
      notice of his objection to such event or condition within 90 days after the
      Executive learns of such event, (b) such event or condition is not corrected
      by
      the Company within 10 days of its receipt of such notice and (c) the Executive
      voluntarily resigns his employment with the Company and its affiliates not
      more
      than 60 days following the expiration of the 10-day period described in the
      foregoing clause (b).

     

    F.
      Voluntary
      Termination by the Executive.
      The
      Executive may terminate his employment hereunder at any time for reason other
      than Good Reason on 30 days
      written notice to the Company.

     

    SECTION
      6.
Payments
      Upon Termination.

     

    A.
      Upon
      termination of the Executive's
      employment hereunder, the Company shall be obligated to pay and the Executive
      shall be entitled to receive, on the pay date for the pay period in which the
      termination occurs, all accrued and unpaid Base Salary
      and
      bonus
      to the
      date of termination. In addition, the Executive shall be entitled to any
      benefits to which he is entitled under the terms of any applicable employee
      benefit plan or program or applicable law.

     

    B.
      Except
      as
      provided in Section 7(A), upon termination of the Executive's
      employment by the Company without Cause or by the Executive due to Good Reason,
      in addition to the amount set forth in Section 6(A), the Company shall be
      obligated to pay, and the Executive shall be entitled to receive, (i) Base
      Salary
      and
      bonus
      for a
      period of three years and (ii) continued medical and dental benefits for a
      period of three years at no cost to the Executive. The Company may cease all
      payments of Base Salary and bonus under this Section 6(B) in the event of a
      willful breach by the Executive of the provisions of Sections 8, 9 or 10 of
      this
      Agreement or any inadvertent breach that continues after notice given to the
      Executive by the Company. As a condition precedent to the receipt of any of
      the
      severance benefits hereunder the Executive hereby agrees to execute a release
      of
      claims against the Company and its affiliates in form and substance reasonably
      satisfactory to the Company.

     

    C.
      In
      the
      event Executive elects to terminate employment as set forth in Section 5(F)
      then
      in such event any options not vested as set forth in Section 3(B) shall
      terminate. 

     

    D.
      Upon
      any
      termination or expiration of the Executive's
      employment hereunder pursuant to Section 5, the Executive shall have no further
      liability or obligation under or in connection with this Agreement; provided,
      however, that the Executive shall continue to be subject to the provisions
      of
      Sections 8, 9, 10, 11 and 12 hereof (it being understood and agreed that such
      provisions shall survive any termination or expiration of the
      Executive's
      employment hereunder for any reason). Upon any voluntary
      termination
      by the
      Executive (other than a resignation by the Executive for Good Reason), or
      expiration of Executive's
      employment agreement, the Company shall have no further liability under or
      in
      connection with this Agreement, except to pay the portion of the
      Executive's
      Base
      Salary and
      bonus
      earned or accrued at the date of termination and to provide any employee
      benefits earned
      or
      accrued at the date of termination.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    SECTION
      7.
Change
      of Control.

     

    A.
      In
      the
      event that, during the Effective Period (as hereinafter defined), the
      Executive's
      employment is terminated by the Company without Cause or by the Executive for
      Good Reason, in lieu of the amount set forth in Section 6(B), the
      Executive shall immediately become entitled to the following
      benefits:

     

    (1)
      the
      outstanding options to acquire shares of the Company held by the Executive
      under
      any share option plan and granted on or prior to the Change of Control shall
      become immediately fully exercisable and shall remain exercisable for three
      years after termination of employment or, if less
      or
      more,
      their
      remaining term;

     

    (2)
      a
      lump-payment equal to three times: (a) the Executive's
      then
      current Base Salary;

     

    (3)
      a
      lump-sum
      payment equal to three times the highest annual bonus allowed under the
      Executive Bonus Plan for the Executive during the three-year period preceding
      the date of the Change of Control; and

     

    (4)
      continued
      medical and dental coverage for three years from the termination date at no
      cost
      to the Executive.

     

    B.
      For
      purposes of this Agreement, a "Change
      of
      Control"
      shall be
      deemed to have taken place upon the earliest occurrence of any of the following
      at any time after August 15, 2006: (i) a tender offer is made and consummated
      for the beneficial ownership of 25% or more of the outstanding voting securities
      of STANDARD; (ii) STANDARD is merged or consolidated with another corporation,
      and as a result of such merger or consolidation, less than 75% of the
      outstanding voting securities of the surviving or resulting corporation are
      beneficially owned in the aggregate by the persons or entities who were
      shareholders of STANDARD immediately prior to such merger or consolidation;
      (iii) STANDARD sells all or substantially all of its assets to another entity
      or
      person that is not a wholly owned subsidiary; (iv) during any 15-month period,
      individuals who at the beginning of such period constituted the Board (including
      for this purpose any new member whose election or nomination for election by
      the
      shareholders of STANDARD was approved by a vote of at least 2/3 of the members
      then still in office and who were members at the beginning of such period)
      cease
      for any reason to constitute at least a majority of the Board; (v) the
      Compensation Committee of the Board determines, in its sole discretion, that
      a
      Change of Control has occurred for purposes of this Agreement; or
      (vi)
      STANDARD
      sells all or substantially all of its assets to another entity or person that
      is
      not a subsidiary or affiliate of the Company or 80%
      or
      more of the outstanding voting securities of the Company are acquired by any
      person or entity other than STANDARD, its subsidiaries or affiliates.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    C.
      For
      purposes of this Agreement, "Effective
      Period"
      shall
      mean the period beginning on the date that
      is
      six months prior to the date of the occurrence of
      a
      Change of Control and ending on the earlier of the third anniversary of the
      Change of Control or the expiration of the Term. 

     

    D.
      To
      the
      extent that the acceleration of vesting or any payment, distribution or issuance
      made to the Executive in the event of a Change of Control is subject to federal
      income, excise or other tax at a rate above the rate ordinarily applicable
      to
      compensation paid in the ordinary course of business (collectively, a
"Parachute
      Tax"),
      whether
      as a result of the provisions of Section 280G and 4999 of the Internal Revenue
      Code of 1986, as amended, or any similar or analogous provisions of any statute
      adopted subsequent to the date hereof, or otherwise, then the Company shall
      pay
      to the Executive an additional sum (the "Additional
      Amount")
      such
      that the net amount received by the Executive, after paying any applicable
      Parachute Tax and any federal or state income tax on such Additional Amount,
      shall be equal to the amount that the Executive would have received if such
      Parachute Tax were not applicable.

     

    SECTION
      8.
Confidential
      Information and Inventions.

     

    A.
      Nondisclosure.
      The
      Executive hereby acknowledges that the Executive has knowledge of certain
      confidential and proprietary information relating to STANDARD or their
      affiliates and that it will be necessary, in connection with the performance
      of
      services hereunder, to provide or make available to the Executive certain
      confidential and proprietary information, including, but not limited to,
      business and financial information, technological information, strategies,
      the
      status and content of contracts with suppliers or clients, customer lists and
      financial information on customers, intellectual property, trade secrets and
      other information relating to the businesses, products, technology, services,
      customers, methods or tactics of STANDARD or its affiliates (any such
      confidential or proprietary information being hereinafter referred to as
"Confidential
      Information").
      The
      Executive further acknowledges that the Confidential Information constitutes
      valuable trade secrets of STANDARD and its affiliates and agrees that any such
      Confidential Information shall remain the property of STANDARD and its
      affiliates at all times during the term of this Agreement and following the
      expiration or termination hereof. The Executive shall not publish, disseminate,
      distribute, disclose, sell, assign, transfer, copy, remove from the premises
      of
      STANDARD or their affiliates, commercially exploit, make available to
persons
      other than STANDARD, its employees and affiliates,
      or
      otherwise make use of any Confidential Information to or for the use or benefit
      of the Executive or any person,
      firm, corporation or entity
      other
      than STANDARD or its affiliates,
      except
      as specifically and previously authorized in writing by the Board or as required
      for the due and proper performance of his duties and obligations under this
      Agreement. In addition, the Executive shall employ all reasonable
      and necessary
      safeguards and precautions consistent
      with practices customarily followed by management in
      order
      to ensure that unauthorized access to the Confidential Information is not
      afforded to any person, firm, corporation or entity. Upon any expiration or
      termination of this Agreement, or if the Board or the Company so requests at
      any
      time, the Executive shall promptly return to STANDARD all
      Confidential Information in the Executive's
      possession, whether in writing, on computer disks or other media, without
      retaining any copies, extracts or other reproductions thereof. Notwithstanding
      the foregoing, nothing contained in this Section 8(A) shall prevent the
      publishing, dissemination, distribution, disclosure, sale, assignment, transfer,
      copying, removal, commercial exploitation or other use by the Executive of
      any
      information that (i) was
      or
is
      generally available to the public (other than through a breach of an obligation
      of confidentiality),
      (ii)
      was
      within the possession of Executive prior to its being furnished to Executive
      by
      the Company, (iii) was or is independently developed by Executive without
      reference to, or derivation from, the Confidential Information, or (iv) was
      or
      is
      lawfully obtained by the Executive without obligation of confidentiality from
      a
      source other than STANDARD or its affiliates, directors, officers, employees,
      agents or other representatives (provided, however, that such source is not
      bound by a confidentiality agreement with STANDARD or any of its affiliates
      and
      is not otherwise under an obligation of secrecy or confidentiality to either
      of
      them).

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    B.
      Requests
      for Disclosure.
      It shall
      not be a breach of the obligations of Section 8(A) if Executive discloses
      Confidential Information (i)
      to
      other employees of the Company in the ordinary course of employment or to other
      persons pursuant to a signed confidentiality agreement, or (ii) as
      required by judicial or administrative process or, in the written opinion of
      Executive's
      counsel,
      by the requirements of applicable law, but in
      case of
      this clause (ii) only
      upon
      satisfaction of the following conditions: (A)
      the
      Executive gives prompt written notice to the Chairman of the Board of the
      existence of, and the circumstances attendant to, such request, sufficient
      to
      permit STANDARD or an affiliate to contest or seek to restrict the required
      disclosure (B)
      the
      Executive consults with the Chairman of the Board as to the advisability of
      taking legally available steps to resist or narrow any such request or otherwise
      to eliminate the need for such disclosure, (C)
      if
      disclosure is required, the Executive cooperates with the Chairman of the Board
      in obtaining a protective order or other reliable assurance in form and
      substance satisfactory to the Chairman of the Board that confidential treatment
      will be accorded to such portion of the Confidential Information as is required
      to be disclosed, and (D)
      that
      Executive disclosed only such Confidential Information as is legally required
      (or, where applicable, only such information as the written opinion of
      Executive's
      counsel
      deems required).

     

    C.
      Confidential
      Information of Others.
      The
      Executive shall not disclose to STANDARD or its
      affiliates, or induce them to use, the proprietary information, trade secrets,
      or confidential information of others.

     

    D.
      Disclosure.
      Upon
      each occurrence of conception, creation, and/or reduction to practice, the
      Executive will promptly provide a written description of each Invention (as
      hereinafter defined) to the Board or its designee.

     

    E.
      Assignment
      and Ownership of Rights.
      The
      Executive agrees that all Inventions shall and, to the extent necessary, shall
      become and remain the property of STANDARD, and their successors and assigns,
      unless expressly released by STANDARD in writing. The Executive assigns, and
      to
      the extent such assignment is not effective, the Executive agrees to assign
      all
      such Inventions to STANDARD. The Executive agrees that all copyrightable works
      created for STANDARD during the Executive's
      employment are owned by STANDARD and, if necessary or appropriate, are works
      made for hire.

     

    F.
      Obtaining
      Patents.
      STANDARD
      shall have sole discretion to decide whether to obtain any patent or other
      protection on any Invention. If STANDARD seeks any such protection, the
      Executive shall have no obligation to pay any expenses of the filing or
      maintenance of any such patent or other protection. 

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    G.
      Inventions.
      "Inventions"
      means (i)
      any invention, development, improvement, or copyrightable work, (ii) created,
      conceived, or reduced to practice by the Executive individually or jointly
      with
      others while the Executive is employed by STANDARD or its
      affiliates or within a six-month period following termination of the
      Executive's
      employment, (iii) whether patentable or not, (iv) whether or not conceived
      or
      reduced to practice during regular working hours, and
      (v)
      that
      relates to any methods, apparatus, products, or components thereof which, before
      termination of the Executive's
      employment, are manufactured, sold, leased, or used by STANDARD or their
      affiliates or which are under development by, or which otherwise pertain to
      the
      business of STANDARD or their affiliates. However, "Inventions"
      shall not
      include any inventions, developments, improvements, or copyrightable work (i)
      for which no equipment, supplies, facility, or trade secret information of
      STANDARD or their affiliates were used, (ii) which the Executive developed
      entirely on the Executive's
      own time
      (iii) which does not relate directly to the business of STANDARD or their
      affiliates or to their actual or demonstrably anticipated research or
      development, or (iv) which does not result from any work performed by the
      Executive for STANDARD or their affiliates. The Executive represents that he
      has
      provided STANDARD, on or prior to the date hereof, a complete written
      description of all unpatented inventions and improvements in which the Executive
      has any rights that are not included in the term "Inventions",
      in a
      form acknowledged in writing by the Chief Executive Officer of
      STANDARD.

     

    SECTION
      9.
Covenant
      Not to Compete.

     

    A.
      Noncompetition.
      The
      Executive hereby agrees that during the "Noncompetition
      Period"
      (as
      hereinafter defined), he will not, except as otherwise permitted under this
      Agreement, in
      the
      Noncompetition Area directly
      or indirectly (whether as an employee, consultant, shareholder or director,
      or
      whether acting alone or through any of his affiliates, as a member of a
      partnership or a joint venture or an investor in, or a holder of securities
      of,
      any corporation or other entity, or otherwise), engage in any business conducted
      by STANDARD or its affiliates. Notwithstanding anything to the contrary in
      this
      Section 9, the Executive may
      (i)
      continue the activities described on Exhibit A, and (ii)
      passively
      invest his assets in such a form or manner as will not conflict with the terms
      of this Agreement and will not require services on the part of the Executive
      in
      the operation of the business of the companies or other enterprises in which
      such investments are made. The Executive acknowledges that (i) the provisions
      set forth in this Section 9 are for the benefit of STANDARD and its affiliates,
      (ii) his agreement to such provisions is an express condition to his employment
      by the Company and (iii) such provisions are reasonably necessary to protect
      the
      goodwill and other business interests of STANDARD and its affiliates. The
"Noncompetition
      Period"
      shall be
      the period commencing on the Effective Date and ending on the second anniversary of
      the
      date of termination of the Executive's
      employment. The "Noncompetition Area" shall mean the counties within the states
      in which the Company is operating or owns oil and gas leases on the date of
      Executive's termination of
      employment.

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    B.
      Reformation
      of Scope.
      If any
      of the provisions of this Section 9 is found to be unreasonably broad,
      oppressive or unenforceable in an action, suit or proceeding before any federal
      or state court, such court (i) shall narrow the Noncompetition Period or the
      Noncompetition Area or shall otherwise endeavor to reform the scope of such
      agreements in order to ensure that the application thereof is not unreasonably
      broad, oppressive or unenforceable and (ii) to the fullest extent permitted
      by
      law, shall enforce such agreements as so reformed.

     

    SECTION
      10. Nonsolicitation.
      The
      Executive shall not, directly or indirectly, during the Noncompetition Period,
      (A) take any action to solicit or divert any business (or potential business)
      or
      customers (or potential customers) away from STANDARD or its affiliates, (B)
      induce customers, potential customers, suppliers, agents or other persons under
      contract or otherwise associated or doing business with STANDARD or its
      affiliates to terminate, reduce or alter any such association or business with
      or from STANDARD or its affiliates and/or (C) induce any person in the
      employment of the Company, STANDARD or its affiliates or any consultant to
      STANDARD or its affiliates to (i) terminate such employment or consulting
      arrangement, (ii) accept employment, or enter into any consulting arrangement,
      with anyone other than STANDARD or its affiliates (except to the extent the
      consultant makes its services available to third parties on a regular basis)
      and/or (iii) interfere with the customers, suppliers or clients of STANDARD
      or
      its affiliates in any manner or the business of STANDARD or its affiliates
      in
      any manner. For purposes of this Section 10, a "potential
      customer"
      shall
      mean a person or entity that STANDARD or its affiliates, as of the date the
      Executive's
      employment terminates, is soliciting or is considering soliciting (or has
      targeted for solicitation).
      No
      general advertisement shall be a violation of the provisions of this
      section.

     

    SECTION
      11. Remedies.
      The
      Executive hereby agrees that a violation of the provisions of Section 8, 9
      or 10
      hereof may cause irreparable injury to STANDARD and its affiliates for which
      they would have no adequate remedy at law. Accordingly, in the event of any
      such
      violation, STANDARD and/or its affiliates shall be entitled to preliminary
      and
      other injunctive relief. Any such injunctive relief shall be in addition to
      any
      other remedies to which STANDARD and/or its affiliates may be entitled at law
      or
      in equity or otherwise.

     

    SECTION
      12. Arbitration.
      Any
      dispute or controversy arising under or in connection with this Agreement (other
      than any dispute or controversy arising from a violation or alleged violation
      by
      the Executive of the provisions of Section 8, 9 or 10 hereof) shall be settled
      exclusively by final and binding arbitration in Houston, Texas, in accordance
      with the Rules for the Resolution of Employment Disputes of the American
      Arbitration Association ("AAA").
      The
      arbitrator shall be selected by mutual agreement of the parties, if possible.
      If
      the parties fail to reach agreement upon appointment of an arbitrator within
      30
      days following receipt by one party of the other party's
      notice
      of desire to arbitrate, the arbitrator shall be selected from a panel or panels
      of persons submitted by the AAA. The selection process shall be that which
      is
      set forth in the AAA Rules for the Resolution of Employment Disputes then
      prevailing, except that, if the parties fail to select an arbitrator from one
      or
      more panels, AAA shall not have the power to make an appointment but shall
      continue to submit additional panels until an arbitrator has been selected.
      This
      agreement to arbitrate shall not preclude the parties from engaging in
      voluntary, nonbinding settlement efforts, including, but not limited to,
      mediation. In the event the arbitration is decided in whole or in part in favor
      of the Executive, the Company will reimburse the Executive for his reasonable
      costs and expenses of the arbitration (including reasonable
      attorneys'
      fees).

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    SECTION
      13. Notices.
      All
      notices and other communications hereunder shall be in writing and shall be
      given (and shall be deemed to have been duly given upon receipt) by delivery
      in
      person, by registered or certified mail (return receipt requested and with
      postage prepaid thereon) or by facsimile transmission to the respective parties
      at the following addresses (or at such other address as either party shall
      have
      previously furnished to the other in accordance with the terms of this Section
      13):

     

    If
      to the
      Company:

    

    Standard
      Drilling, Inc.

    1667
      K
      Street NW, Suite 1230

    Washington,
      DC 20006

    Attention:
      Chairman and CEO

    Facsimile:
      202-955-9490

    

    if
      to the
      Executive:

    Edward
      L.
      Moses

    1127
      Rock
      Green Court

    Katy,
      Texas 77494

    

    SECTION
      14. No
      Mitigation.
      In the
      event of any termination of employment by the Company without Cause,
or
      by
      the
      Executive for Good Reason,
      the
      Executive shall be under no obligation to seek other employment, or otherwise
      engage in mitigating activity, following the date of termination, and there
      shall be no offset against amounts due the Executive under this Agreement on
      account of any remuneration attributable to any subsequent employment that
      he
      may obtain.

     

    SECTION
      15. Indemnification.
      STANDARD
      agree that, during
      the
      term hereof and following any termination of
      Executive's
      employment,
      the
      Company shall
      indemnify
      the Executive to
      the
      fullest extent permitted by applicable law consistent with the Certificate
      of
      Incorporation and By-Laws and the Company in effect as of the date hereof
      (and as hereafter amended if such amendment shall not reduce any right Executive
      may have under such provisions in effect on the date hereof) with respect to
      Executive's
      sole,
      joint or concurrent negligence and any acts or omissions he may have committed
      during the period during which he was an officer, director and/or employee
      of
      the Company or any of their affiliates for which he served as an officer,
      director or employee at the request of the Company.

     

    SECTION
      16. Amendment;
      Waiver.
      The
      terms and provisions of this Agreement may be modified or amended only by a
      written instrument executed by each of the parties hereto, and compliance with
      the terms and provisions hereof may be waived only by a written instrument
      executed by each party entitled to the benefits thereof. No failure or delay
      on
      the part of any party in exercising any right, power or privilege granted
      hereunder shall constitute a waiver thereof, nor shall any single or partial
      exercise of any such right, power or privilege preclude any other or further
      exercise thereof or the exercise of any other right, power or privilege granted
      hereunder.

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

     

    SECTION
      17. Entire
      Agreement.
      This
      Agreement constitutes the entire agreement between the parties with respect
      to
      the subject matter hereof and supersedes all prior written or oral agreements
      or
      understandings between the Executive and the Company or its affiliates relating
      thereto, including, without limitation.

     

    SECTION
      18. Severability.
      In the
      event that any term or provision of this Agreement is found to be invalid,
      illegal or unenforceable, the validity, legality and enforceability of the
      remaining terms and provisions hereof shall not be in any way affected or
      impaired thereby, and this Agreement shall be construed as if such invalid,
      illegal or unenforceable provision had never been contained
      therein.

     

    SECTION
      19. Binding
      Effect; Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their respective successors and assigns (it being understood and agreed that,
      except as expressly provided herein, nothing contained in this Agreement is
      intended to confer upon any other person or entity any rights, benefits or
      remedies of any kind or character whatsoever). The Executive may not assign
      this
      Agreement without the prior written consent of the Company. Except as otherwise
      provided in this Agreement, the Company may assign this Agreement to any of
      their affiliates or to any successor (whether by operation of law or otherwise)
      to all or substantially all of their business and assets without the consent
      of
      the Executive, and any transfer of employment from the Company to such affiliate
      or successor shall be deemed to constitute an assignment and not a termination
      of employment hereunder. In the event of an assignment of this Agreement by
      STANDARD 
      all
      references herein to STANDARD or the Company shall be deemed to be references
      to
      the assignee. 

     

    SECTION
      20. Withholding
      of Taxes.
      The
      Executive agrees that STANDARD shall deduct, or shall cause to be deducted,
      from
      the amount of any benefits to be paid hereunder any taxes required to be
      withheld by the federal or any state or local government.

     

    SECTION
      21. Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Texas (except that no effect shall be given to any conflicts of law
      principles thereof that would require the application of the laws of another
      jurisdiction). 

     

    SECTION
      22. Headings.
      The
      headings of the sections contained in this Agreement are for convenience only
      and shall not be deemed to control or affect the meaning or construction of
      any
      provision of this Agreement.

     

    SECTION
      23. Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

    SECTION
      24. Subsidiaries
      and Affiliates.
      As used
      herein, the term "subsidiary"
      shall
      mean any corporation or other business entity controlled by the corporation
      in
      question, and the term "affiliate"
      shall
      mean and include any corporation or other business entity controlling,
      controlled by or under common control with the corporation in question. The
      terms "controlled,"
      "controlling,"
      "controlled
      by"
      and
"under
      common control with,"
      as used
      with respect to any person, means the possession, directly or indirectly, of
      the
      power to direct or cause the direction of the management and policies of such
      person, whether through the ownership of voting securities or by contract or
      otherwise.

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      the
      undersigned have executed this Agreement as of the date first above
      written.

     

     

    
      	 	
              Standard
                Drilling, Inc.

            	 
	 	 	 
	
               By:
                 

            	 	 
	 	
              Edward
                L. Moses

            	 
	 	
              President
                

            	 
	 	 	 
	 	Prentis
              B. Tomlinson, Jr.	 
	 	 	 
	 	 	 
	 	Executive	 
	 	 	 

    

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    

    Exhibit
      A

    to

    Employment
      Agreement 

    dated
      effective February 14, 2006

    by
      and between

    Standard
      Drilling Inc.

    and

    Prentis
      B. Tomlinson, Jr.

     

    

    

    
      	 	
              1.

            	
              Calibre
                Energy, Inc.

            

    

    
      	 	
              2.

            	
              BlackRock
                Drawworks, LLC

            

    

    
      	 	
              3.

            	
              PBT
                Capital Partners, LLC

            

    

    
      	 	
              4.

            	
              Particle
                Drilling Technologies, Inc.

            

    

    
      	 	
              5.

            	
              Luck
                House, LLC

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]