Document:

exv10w4

 

Exhibit 10.7

NEWPARK RESOURCES, INC.

NON-STATUTORY STOCK OPTION AGREEMENT

     This NON-STATUTORY STOCK OPTION AGREEMENT (the “Agreement”) is made and entered into as of May
18, 2006 (hereinafter referred to as the “Date of Grant”), by and between NEWPARK RESOURCES, INC.,
a Delaware corporation (the “Company”), and SEAN MIKAELIAN (“Optionee”), with reference to the
following facts:

     A. On May 18, 2006, Optionee and the Company entered into an employment agreement (the
“Employment Agreement”), under which Optionee was elected and accepted employment as the President
of a business unit of the Company. Terms used in this Agreement that are defined in the
Employment Agreement and not otherwise defined herein shall have the meanings attributed to them in
the Employment Agreement.

     B. As an inducement for Optionee to accept employment with the Company, the Company agreed in
the Employment Agreement, among other things, to grant to Optionee, without further payment, the
right and option (the “Option”) to purchase from the Company all or any part of an aggregate of
25,000 shares of its common stock, subject to vesting over a three-year period. This Agreement and
the Employment Agreement set forth the agreement between the Company and Optionee with respect to
the issuance, vesting and exercise of the Option.

     NOW, THEREFORE, the parties agree as follows:

     1. Grant of Option.

          The Company hereby grants to Optionee the Option to purchase all or any part of an aggregate
25,000 shares of Common Stock (each an “Option Share”) of the Company on the terms and conditions
set forth in this Agreement.

     2. Purchase Price.

          The purchase price (the “Exercise Price”) of each Option Share shall be $5.75.

     3. Option Period.

          The Option shall commence on the Date of Grant and shall expire, and all rights to purchase
the Option Shares shall terminate at the close of business on the day immediately preceding the
tenth anniversary of the Date of Grant, unless terminated earlier as provided in this Agreement.
The Option shall not be exercisable until all legal requirements in connection with the Option have
been fully complied with. Subject to the foregoing, the Option shall be exercisable during its term
as to one-third of the Option Shares during the twelve months beginning on the first anniversary of
the Date of Grant; (b) as to an additional one-third of the Option Shares on the second
anniversary of the Date of Grant; and (c) as to the remaining one-third of the Option Shares on the
third anniversary of the Date of Grant; provided, however, that, if Optionee shall
not in any one exercise period purchase all of the Option Shares which Optionee is entitled to
purchase in such period, Optionee may purchase all or any part of such

 

 

Option Shares at any time after the end of such period and prior to the expiration of the
Option. Notwithstanding the foregoing, if Optionee is subject to the reporting requirements of
Section 16(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Option
shall not be exercisable until at least six months and one day from the Date of Grant.

     4. Exercise of Option.

          4.1 The Option shall be exercised by delivering this Agreement for endorsement to the Company,
at its principal office, attention of the Corporate Secretary, together with a Notice and Agreement
of Exercise in the form attached hereto indicating the number of Option Shares Optionee wishes to
purchase and full payment of the Exercise Price of such shares. In no event shall the Company be
required to issue or transfer fractional shares.

          4.2 Payment for Option Shares may be made in cash, by cashier’s or certified check or by
delivery to the Company of shares of Common Stock, duly assigned to the Company by a stock power
with signatures guaranteed as provided on the back of the stock certificate. The value of each
share delivered in payment of the Exercise Price of Option Shares shall be the fair market value
(“Fair Market Value”) of the Common Stock on the date such shares are delivered. The Fair Market
Value of a share of the Common Stock on any date shall be equal to the closing price of the Common
Stock for the last preceding day on which the Company’s shares were traded, and the method for
determining the closing price shall be determined by the Board of Directors (the “Board”) of the
Company or a duly authorized committee thereof, and the Board or such committee are sometimes
referred to herein as the “Committee.”

     5. Employment of Optionee.

          5.1 Except as otherwise provided in paragraph 6 of this Agreement, Optionee may not exercise
the Option unless, at the time of exercise, Optionee is an employee of the Company or a parent or a
subsidiary thereof and has been in the employ of the Company or a parent or a subsidiary thereof
continuously since the Date of Grant.

          5.2 Nothing contained herein shall be construed to impose upon the Company or upon any parent
or subsidiary thereof any obligation to employ Optionee for any period or to supersede or in any
way alter, increase or diminish the respective rights and obligations of the Company or any parent
or subsidiary thereof and Optionee under any employment contract now or hereafter existing between
them.

     6. Termination of Employment.

          6.1 If the employment of Optionee with the Company or a subsidiary shall terminate because of
Total Disability or death, unless otherwise provided by the Committee, (a) the Option, to the
extent then presently exercisable, shall remain in full force and effect and may be exercised
pursuant to the provisions hereof, including expiration at the end of the fixed term hereof, and
(b) the Option, to the extent not then presently exercisable, shall terminate as of the date of
such termination of employment and shall not be exercisable thereafter.

          6.2 If the employment of Optionee with the Company or a subsidiary is terminated by the
Company without Cause or by the Optionee for Good Reason, in either
case

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occurring during the Employment Term, the Option, whether or not then exercisable, shall become
exercisable to purchase all of the Option Shares underlying the Option and shall remain in full
force and effect and may be exercised pursuant to the provisions hereof, including expiration at
the end of the fixed term hereof.

          6.3 If the employment of Optionee with the Company or a subsidiary shall terminate for any
reason other than the reasons set forth in paragraphs 6.1 and 6.2 hereof, unless otherwise provided
by the Committee, (a) the Option, to the extent then presently exercisable, shall remain in full
force and effect and may be exercised pursuant to the provisions hereof, including expiration at
the end of the fixed term hereof, and (b) the Option, to the extent not then presently exercisable,
shall terminate as of the date of such termination of employment and shall not be exercisable
thereafter.

     7. Securities Laws Requirements.

          7.1 The Option shall not be exercisable unless and until any applicable registration or
qualification requirements of federal and state securities laws, and all other requirements of law
or any regulatory bodies having jurisdiction over such exercise or issuance and delivery, have been
fully complied with. The Company will use reasonable efforts to maintain the effectiveness of a
Registration Statement under the Securities Act of 1933, as amended (the “Securities Act”), for the
issuance of the Option and the Option Shares, but there may be times when no such Registration
Statement will be currently effective. Exercise of the Option may be temporarily suspended without
liability to the Company during times when no such Registration Statement is currently effective,
or during times when, in the reasonable opinion of the Committee, such suspension is necessary to
preclude violation of any requirements of applicable law or regulatory bodies having jurisdiction
over the Company. If the Option would expire for any reason except the end of its term during such
a suspension, then if exercise of the Option is duly tendered before its expiration, the Option
shall be exercisable and exercised (unless the attempted exercise is withdrawn) as of the first day
after the end of such suspension. The Company shall have no obligation to file any Registration
Statement covering resales of the Option Shares.

          7.2 Upon each exercise of the Option, Optionee shall represent, warrant and agree, by the
Notice and Agreement of Exercise delivered to the Company, that (a) no Option Shares will be sold
or otherwise distributed in violation of the Securities Act or any other applicable federal or
state securities laws, (b) if Optionee is subject to the reporting requirements under Section 16(a)
of the Exchange Act, Optionee will furnish to the Company a copy of each Form 4 or Form 5 filed by
Optionee and will timely file all reports required under federal securities laws, and (c) Optionee
will report all sales of Option Shares to the Company in writing on the form prescribed from time
to time by the Company. All Option Share certificates may be imprinted with legend conditions
reflecting federal and state securities law restrictions and conditions and the Company may comply
therewith and issue “stop transfer” instructions to its transfer agents and registrars without
liability.

     8. Transferability of Option.

          The Option (a) shall be transferable by Optionee only to (i) Optionee’s Immediate Family
Members, (ii) a trust or trusts for the exclusive benefit of
Optionee’s

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Immediate Family Members, (iii) a corporation, partnership, limited partnership or limited
liability company in which no persons or entities other than Optionee and Optionee’s Immediate
Family Members have beneficial interests, or (iv) such other persons or entities as the Committee
may specifically approve, on a case-by-case basis, and (b) shall be exercisable by any such
transferees. As used herein, Immediate Family Members means the spouse, children (including
step-children and adopted children) or grandchildren of the Optionee. Unless the Committee shall
determine otherwise in its sole discretion, any Option so transferred may not be further
transferred by the transferees thereof except by will or the laws of descent and distribution or
pursuant to a “qualified domestic relations order”, as defined in the Internal Revenue Code of
1986, as amended (the “Code”). Notwithstanding any transfer permitted in accordance with the
foregoing provisions, a transferred Option shall continue to be subject to the same terms and
conditions as were applicable immediately before such transfer (other than permitting the Option to
be exercised by a permitted transferee), including but not limited to the provisions of this
Agreement governing (x) the exercise of the Option, (y) the termination of the Option at the
expiration of its term or following termination of the employment of Optionee and (z) the payment
of withholding taxes. Except as specifically provided above, the Option shall be transferable only
by will or the laws of descent and distribution or pursuant to a qualified domestic relations
order, and shall be exercisable during Optionee’s lifetime only by Optionee or by Optionee’s legal
representative. If Optionee is subject to the reporting requirements of Section 16(a) of the
Exchange Act at the time of a proposed transfer, the Option shall be transferable only if such
transferability or transfer would not cause the Option to fail to qualify for the exemption
provided for in Rule 16b-3 under the Exchange Act, as determined by the Committee in its sole and
absolute discretion. Notwithstanding the foregoing, the Option shall not be assignable by
operation of law and shall not be subject to attachment, execution, garnishment, sequestration, the
law of bankruptcy or any other legal or equitable process. Any attempted assignment, transfer,
pledge, hypothecation or other disposition contrary to the provisions of this Agreement, and the
levy of any execution, attachment or similar process thereupon, shall be null and void and without
effect.

     9. Changes in Capitalization.

          9.1 The number and class of shares subject to the Option, the Exercise Price (but not the
total price), and the minimum number of shares as to which the Option may be exercised at any one
time, shall be proportionately adjusted in the event of any increase or decrease in the number of
the issued shares of Common Stock which results from a split-up or consolidation of shares, payment
of a stock dividend or stock dividends exceeding a total of two and one-half percent (2.5%) for
which the record dates occur in any one fiscal year, a recapitalization (other than the conversion
of convertible securities according to their terms), a combination of shares or other like capital
adjustment, so that upon exercise of the Option, Optionee shall receive the number and class of
shares Optionee would have received had Optionee been the holder of the number of shares of Common
Stock for which the Option is being exercised upon the date of such change or increase or decrease
in the number of issued shares of the Company.

          9.2 Upon a reorganization, merger or consolidation of the Company with one or more
corporations as a result of which the Company is not the surviving corporation, or in which the
Company survives as a wholly-owned subsidiary of another corporation,
or upon a

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sale of all or substantially all of the property of the Company to another corporation, or any
dividend or distribution to stockholders of more than 10% of the Company’s assets, adequate
adjustment or other provisions shall be made by the Company or other party to such transaction so
that there shall remain and/or be substituted for the Option Shares provided for herein, the
shares, securities or assets which would have been issuable or payable in respect of or in exchange
for the Option Shares then remaining under the Option, as if Optionee had been the owner of such
shares as of the applicable date. Any securities so substituted shall be subject to similar
successive adjustments.

     10. Relationship to Other Employee Benefit Plans.

          The Option shall not be deemed to be salary or other compensation to Optionee for purposes of
any pension, thrift, profit sharing, stock purchase or other employee benefit plan now maintained
or hereafter adopted by the Company.

     11. Subsidiary.

          The term “subsidiary” as used herein, shall mean each corporation which is a “subsidiary
corporation” of the Company, within the definition contained in Section 424(f) of the Code. Unless
the context indicates otherwise, references to the Company shall include all subsidiaries of the
Company and any parent it may have in the future.

     12. Privileges of Ownership.

          Optionee shall not have any of the rights of a stockholder with respect to the Option Shares
except to the extent that share certificates have actually been issued and registered in Optionee’s
name on the books of the Company or its registrar upon the due exercise of the Option. The Company
shall be allowed a reasonable time following notice of exercise in which to accomplish the issuance
and registration.

     13. Notices.

          Any notice to be given under the terms of this Agreement shall be addressed to the Company in
care of its Corporate Secretary at 3850 North Causeway Boulevard, Suite 1770, Metairie, Louisiana
70002, and any notice to be given to Optionee shall be addressed to Optionee at the address
appearing on the employment records of the Company, or at such other address or addresses as either
party may hereafter designate in writing to the other. Any such notice shall be deemed duly given
when enclosed in a properly sealed envelope, addressed as herein required and deposited, postage
prepaid, in a post office or branch post office regularly maintained by the United States
Government.

     14. Withholding Taxes.

          The Company shall have the right at the time of exercise of the Option to make adequate
provision for any federal, state, local or foreign taxes which it believes are or may be required
by law to be withheld with respect to such exercise (“Tax Liability”), to ensure the payment
(through withholding from Optionee’s salary or the Option Shares
or otherwise as the

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Company shall deem in its sole and conclusive discretion to be in its best interests) of any
such Tax Liability.

     15. Number and Gender.

          Terms used herein in any number or gender include other numbers or genders, as the context may
require.

     16. 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.

     17. Governing Law.

          This Agreement and performance under it, shall be construed in accordance with and under the
laws of the State of Delaware. Should a court or other body of competent jurisdiction determine
that any term or provision of this Agreement is excessive in scope, such term or provision shall be
adjusted rather than voided and interpreted so as to be enforceable to the fullest extent possible,
and all other terms and provisions of this Agreement shall be deemed valid and enforceable to the
fullest extent possible.

     IN WITNESS WHEREOF, the Company and Optionee have executed this Agreement as of the Date of
Grant.

	 	 	 	 	 	 	 	 	 
	“OPTIONEE”	 	 	 	             “COMPANY”	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	NEWPARK RESOURCES, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Sean Mikaelian
	 	 	 	 	 	 	 	 
	 

            (Signature)

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Sean Mikaelian

	 	 	 	By
	 	/s/ Paul Howes	 	 
	 

            (Print Name)

	 	 
	 	 	 	 

Name: Paul Howes 

Title: CEO & President
	 	 

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NEWPARK RESOURCES, INC.

NOTICE AND AGREEMENT OF EXERCISE

OF NON-STATUTORY STOCK OPTION

                             ,         

     I hereby exercise my Newpark Resources, Inc., Non-Statutory Stock Option dated May 18, 2006,
as to
                     shares of Newpark Resources, Inc. common stock, $.01 par value (the
“Option Shares”).

     Enclosed are the documents and payment specified in paragraph 4 of my Option Agreement. I
understand that no Option Shares will be issued and delivered to me unless and until any applicable
registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), and any
applicable requirements of law or any regulatory bodies having jurisdiction over such issuance and
delivery have been fully complied with. I hereby represent, warrant and agree, to and with Newpark
Resources, Inc. (the “Company”), that:

     a. The Option Shares are being acquired for my account, and no other person (except, if I am
married, my spouse) will own any interest therein.

     b. I will not sell or dispose of my Option Shares in violation of the Securities Act or any
other applicable federal or state securities laws.

     c. The Company may, without liability, place legend conditions upon the Option Shares and
issue “stop transfer” restrictions requiring compliance with applicable securities laws and the
terms of my Option Agreement.

     d. So long as I am subject to reporting requirements under Section 16(a) of the Securities
Exchange Act of 1934, I will furnish to the Company a copy of each Form 4 filed by me and will
timely file all reports required under the federal securities laws.

     e. I will report to the Company all sales of Option Shares on the form prescribed from time to
time by the Company.

     The Option Shares specified above are to be issued in the following registration (husband and
wife will be shown to be joint tenants unless I state that the Option Shares will be held as
community property or as tenants in common):

	 	 	 	 	 
	     (Print your name)

	 	(Signature)	 	 
	 
	 	 	 	 
	  (Option — Print name of spouse if

	 	 

	 	 
	   you wish joint registration)
	 	 	 	 
	 
	 	 	 	 
	 

	 	Address:	 	 

7exv10w1

 

Exhibit 10.1

FORM OF EXECUTIVE AGREEMENT

     This Executive Agreement (this “Agreement”) is made effective as of the Effective Date between
Complete Production Services, Inc., a Delaware corporation and its subsidiaries (collectively, the
“Company”) and ___(“Executive”).

WHEREAS, the Company currently employs Executive; and

WHEREAS, the Company believes it to be in the best interests of its stockholders to attract, retain
and motivate key officers and to ensure continuity of management, and that this will further those
interests; and

WHEREAS, the Company recognizes that the possibility of a Change of Control of the Company may
result in the departure of key executives to the detriment of the Company and its stockholders.

     In consideration of Executive’s continued employment as an executive officer with the Company
and for other 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 be for an initial term that continues in effect, through
the second anniversary of the Effective Date. The term of this Agreement shall
automatically be extended for one or more additional terms of one (1) year, as of each
anniversary date of the Effective Date that occurs while this Agreement is in effect.
The term of Agreement, however, may be terminated by written notice of termination of
this Agreement provided to Executive, and in the event any such termination notice is
delivered to Executive then, notwithstanding the preceding sentence concerning
automatic renewals, the term of this Agreement shall be deemed terminated effective as
of December 31 of the second full calendar year following the date on which such notice
of termination of the Agreement is delivered to Executive.
	 
	 	B.	 	Notwithstanding the foregoing, the term of this Agreement shall terminate upon
the expiration of the “Severance Payout Period” or the “Change of Control Payout
Period,” as applicable, subject to all rights and benefits hereunder having been paid
and satisfied in full.

2. Certain Definitions

	 	A.	 	“Bonus” “Bonus” shall mean the greater of (i) Target EV for the year
of the Date of Termination, or (iii) the highest annual bonus paid during any of the
three full fiscal years preceding the Date of Termination.
	 
	 	B.	 	“Cause” “Cause” shall mean:

 

 

	 	(i)	 	Executive’s conviction of a felony involving moral turpitude,
dishonesty or a breach of trust as regards the Company;
	 
	 	(ii)	 	Executive’s commission of any act of theft, fraud, embezzlement
or misappropriation against the Company that is materially injurious to it
regardless of whether a criminal conviction is obtained;
	 
	 	(iii)	 	Executive’s willful and 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 specifically 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;
	 
	 	(iv)	 	Executive’s unauthorized disclosure of confidential information
of the Company that is materially injurious to the Company; or
	 
	 	(v)	 	Executive’s knowing or willful material violation of federal or
state securities laws, as determined in good faith by the Company’s Board of
Directors.

     For purposes of this definition, no act, or failure to act, on Executive’s part shall be
deemed “willful” unless done, or omitted to be done, by Executive not in good faith and without
reasonable belief that Executive’s action or omission was in the best interest of the Company.

	 	C.	 	“Change of Control” of the Company will occur for purposes of this
Agreement if:

	 	(i)	 	Any person or group of persons is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934),
directly or indirectly, of securities in the Company representing 20% or more
of the combined voting power of the Company’s outstanding securities;
	 
	 	(ii)	 	A change in the majority of the membership of the Board
occurs without approval by two-thirds of the Directors who are Continuing
Directors. For these purposes, Continuing Directors are persons who (i) were
Directors on the Effective Date or (ii) are new Directors whose election was
approved by two-thirds of the members of the Board who were Directors on the
Effective Date (“Approved Directors”), or (iii) are new Directors whose
election was approved by two-thirds of the members of the Board who were
Directors on the Effective Date or are subsequently Approved Directors;

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	 	(iii)	 	The Company is merged, consolidated or combined with another
corporation or entity, including without limitation, a reverse or forward
triangular merger, and the Company’s stockholders prior to such transaction
own less than 55% of the outstanding voting securities of the surviving or
resulting corporation or entity after the transaction;
	 
	 	(iv)	 	A tender offer or exchange offer is made and consummated by a
person or group of persons other than the Company for the ownership of 20% or
more of the Company’s voting securities; or
	 
	 	(v)	 	There is a disposition, transfer, sale or exchange of all or
substantially all of the Company’s assets, or stockholder approval of a plan
of liquidation or dissolution of the Company.

	 	D.	 	“Change of Control Payout Period” shall mean the period of [two
(2)]1 [two and a half (2.5)]2 years following the Date of
Termination of Executive, which termination is covered by Section 5 hereof.
	 
	 	E.	 	“Date of Termination” shall mean the date specified in the Notice of
Termination relating to termination of Executive’s employment with the Company;
provided that such date shall not be less than 20 days nor more than 45 days following:
(i) involuntary termination, not for Cause, pursuant to Section 4 or 5 hereof, or (ii)
the date within the Protective Period that Executive voluntarily terminates his
employment for Good Reason so governed by Section 5 hereof, and provided further that
such termination qualifies as a “separation from service” within the meaning given to
it under Section 409A(a)(2)(A)(i) of the Internal Revenue Code of 1986, as amended (the
“Code”), and any Treasury Regulations or other guidance issued thereunder.
	 
	 	F.	 	“Effective Date” shall mean November 13, 2006.
	 
	 	G.	 	“Executive” shall mean the executive of the Company who is a party to
this Agreement and in the event of the Executive’s death after a “qualifying”
termination pursuant to Section 4 hereof or a Change of Control pursuant to Section 5
hereof, then the term “Executive” shall include his estate.
	 
	 	H.	 	“Good Reason” shall mean:

	 	(i)	 	a failure to re-elect or appoint the Executive to any corporate
office or directorship held at the time of the Change of Control or a material
reduction in Executive’s authority, duties or responsibilities (including
status, offices, titles and reporting requirements) or if Executive is assigned
duties or responsibilities inconsistent in any material respect

 

			
	1	 	For Messrs. Flato, Boyd, Burke, Bayardo and Weisgarber
	 
	2	 	For Messrs. Mayer, Maroney, Nibling, and Moore

3

 

from those of Executive at the time of the relevant Change of Control all on
the basis of which Executive makes a good faith determination that the terms
of his employment have been detrimentally and materially affected;

	 	(ii)	 	a material reduction of Executive’s compensation, benefits or
perquisites, including annual base salary, annual bonus, intermediate or
long-term cash or equity incentive opportunities or plans from those in effect
prior to the Change of Control;
	 
	 	(iii)	 	the Company fails to obtain a written agreement satisfactory
to Executive from any successor or assigns of the Company to assume and perform
this Agreement as provided in Section 9 hereof; or
	 
	 	(v)	 	the Company requires Executive to be based at any office
located more than fifty (50) miles from the Company’s current offices without
Executive’s consent.

	 	I.	 	“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. Any purported termination by either party
other than pursuant to a Notice of Termination shall not be effective. 
	 
	 	J.	 	“Option Plans” shall mean the Company’s stock option plans, incentive
plans, equity participation plans, or other similar plans, and any stock option
agreements or other equity award agreements used in connection therewith.
	 
	 	K.	 	“Protective Period” shall mean the period that commences six months
prior to and ends two years following the effective date of a Change of Control.
	 
	 	L.	 	“Severance Payout Period” shall mean the period of [sixteen (16)
months]3 [twenty (20) months]4 following the Date of Termination
of Executive, which termination is covered by Section 4 hereof.
	 
	 	M.	 	“Target EV” shall mean the amount payable to Executive, which is
expressed as a percentage of Executive’s Termination Base Salary, as a bonus or
incentive payment to Executive under the Company’s annual bonus or incentive program
presuming that the Company and individual performed at target under all applicable
performance criteria and objectives.
	 
	 	N.	 	“Termination Base Salary” shall mean Executive’s base salary at the
rate in effect at the time the Notice of Termination is given or, for purposes of a
Change of

 

			
	3	 	For Messrs. Flato, Boyd, Burke, Bayardo and Weisgarber
	 
	4	 	For Messrs. Mayer, Maroney, Nibling, and
Moore

4

 

Control, if a greater amount, Executive’s base salary at the rate in effect
immediately prior to the Change of Control.

	3.	 	Termination for Cause. The Company may terminate Executive for Cause at any time, including
following a Change of Control, upon written notice to the Executive.
	 
	4.	 	Standard Severance Plan. If Executive is terminated involuntarily (i.e., without the consent of
Executive) by the Company for any reason other than for Cause (and such termination is not pursuant
to a Change of Control) the Executive shall receive the following compensation and benefits from
the Company:

	 	A.	 	The Company shall pay to Executive when otherwise due Executive’s Termination
Base Salary through the Date of Termination.
	 
	 	B.	 	Effective as of the Date of Termination, the Company shall pay to Executive
an amount equal to [1.33]5 [1.67]6 times the sum of Executive’s
Termination Base Salary plus Bonus, payable in a lump sum within thirty days following
such Date of Termination.
	 
	 	C.	 	Effective as of the Date of Termination and in consideration of service
through the Date of Termination, the Company shall pay to Executive a bonus for the
year in which the Date of Termination occurred in an amount determined in good faith
by the Company’s Board of Directors in accordance with the performance criteria
established under the Company’s incentive plan and the Company’s actual performance
relative to such criteria for such year though the Date of Termination, which amount,
however, shall not be less than Target EV, and shall be pro-rated through and
including the Date of Termination (on the basis of a 365 day year), payable in a lump
sum within thirty days following such Date of Termination.
	 
	 	D.	 	Notwithstanding any provisions to the contrary in any of the Option Plans,
(i) all outstanding unvested stock options of Executive shall be and become fully
vested and exercisable as to all shares of stock covered thereby, and (ii) all
outstanding shares of restricted stock, restricted stock units, performance shares and
performance units of Executive shall be and become 100% vested and all restrictions
thereon shall lapse, in each case as of the Date of Termination. 7
	 
	 	E.	 	For all options granted after the Effective Date, Executive (or in the event
of his death, his estate) shall be entitled to exercise his vested options until 12
months following the Date of Termination. Notwithstanding the provisions of this
Section E, no option may be exercised at any time past the term of such option.

 

			
	5	 	For Messrs. Flato, Boyd, Burke, Bayardo and Weisgarber
	 
	6	 	For Messrs. Mayer, Maroney, Nibling, and Moore
	 
	7	 	For Messrs. Mayer, Maroney, Nibling, and Moore.

5

 

	 	F.	 	The Company shall provide Executive with additional benefits described in
Section 6 hereof.

	5.	 	Change of Control Severance Plan. In the event that during the Protective Period either (a)
Executive voluntarily terminates employment for Good Reason or (b) the Company terminates
Executive’s employment other than for Cause, the Executive shall receive the following
compensation and benefits from the Company:

	 	A.	 	The Company shall pay to Executive when otherwise due Termination Base Salary
through the Date of Termination.
	 
	 	B.	 	Effective as of the Date of Termination, the Company shall pay to Executive an
amount equal to [two]8 [two and a half]9 times the sum of
Executive’s Termination Base Salary plus Bonus, payable in a lump sum within thirty
days following such Date of Termination.
	 
	 	C.	 	Effective as of the Date of Termination and in consideration of service through
the Date of Termination, the Company shall pay to Executive a bonus for the year in
which the Date of Termination occurred in an amount determined in good faith by the
Company’s Board of Directors in accordance with the performance criteria established
under the Company’s incentive plan and the Company’s performance relative to such
criteria for such year though the Date of Termination, which amount, however, shall not
be less than Target EV and shall be pro-rated through and including the Date of
Termination (on the basis of a 365 day year), payable in a lump sum within thirty days
following such Date of Termination.
	 
	 	D.	 	Effective as of the Date of Termination, the Company shall pay to executive an
amount equal to [two]10 [two and a half]11 times the amount the
Company would be required to contribute on Executive’s behalf under all qualified
pension, nonqualified pension, profit sharing, 401(k), deferred compensation and
supplemental plans based on Executive’s Termination Base Salary and the applicable
maximum Company contribution percentages in effect as of the Date of Termination,
payable in a lump sum within thirty days following such Date of Termination.
	 
	 	E.	 	Effective as of the Date of Termination, Executive shall become and 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, 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 case the Company shall pay Executive

 

			
	8	 	For Messrs. Flato, Boyd, Burke, Bayardo and Weisgarber
	 
	9	 	For Messrs. Mayer, Maroney, Nibling, and Moore
	 
	10	 	For Messrs. Flato, Boyd, Burke, Bayardo and Weisgarber
	 
	11	 	For Messrs. Mayer, Maroney, Nibling, and Moore

6

 

a lump sum payment, within 30 days following the Date of Termination, in an amount
equal to the present value of such unvested accrued benefits. In addition, if such
a lump sum payment is payable, the Company shall make an additional gross-up payment
to Executive in an amount such that the net amount of the lump sum payment and such
additional gross-up payment retained by Executive, after the calculation and
deduction of all federal, state and local income tax and employment tax (including
any interest or penalties imposed with respect to such taxes) on such lump sum
payment and additional gross-up payment, and taking into account any lost or reduced
tax deductions on account of such gross-up payment, shall be equal to such lump sum
payment. Such additional gross-up payment shall be made in a lump sum payment within
30 days following the Date of Termination.

	 	F.	 	For all options granted after the Effective Date, Executive (or in the event of
his death, his estate) shall be entitled to exercise his vested options until 12 months
following the Date of Termination. Notwithstanding the provisions of this Section F, no
option may be exercised at any time past the term of such option.
	 
	 	G.	 	The Company shall provide Executive with additional benefits described in
Section 6 hereof.

	6.	 	Additional Benefits.

	 	A.	 	Health, Dental, Disability and Life Insurance and Benefits. Throughout
the term of the Severance Payout Period for a termination of Executive’s employment
covered by Section 4, or of the Change of Control Payout Period for a termination of
Executive’s employment covered by Section 5, the Company shall provide Executive and
Executive’s eligible family members, based on the cost sharing arrangement in effect
between Executive (or persons of similar position) and the Company on the Date of
Termination, with medical and dental health benefits and disability and life insurance
coverage and benefits at least equal to those in effect for Executive or persons of
similar position on the Date of Termination or, if more favorable to Executive, as in
effect generally at any time during such Severance Payout Period or Change of Control
Payout Period, as applicable. Notwithstanding the foregoing, if Executive becomes
re-employed and is eligible to receive medical, dental and disability benefits under
such successor employer’s plans, the Company’s obligations under this Section 6A shall
be reduced to the extent comparable benefits are actually received by Executive during
the Severance Payout Period or Change of Control Payout Period, as applicable, and

7

 

any such benefits actually received by Executive shall be promptly reported by
Executive to the Company. For the sake of clarity, Executive shall be entitled to
all of the insurance and benefits provided by this Section 6A, and such benefits
shall not be mitigated, in the event that as of the Date of Termination or at any
time during the Severance Payout Period or Change of Control Payout Period, as
applicable, Executive is receiving medical, dental, health, disability or life
benefits or insurance through the plans or obligations of a former employer.

In the event Executive is ineligible under the terms of the Company’s benefit plans
or programs to be so covered as required by this Section 6A, the Company shall
provide Executive with substantially equivalent coverage through other sources or
will provide Executive with a lump sum payment in such amount that, after all taxes
on that amount, shall be equal to the cost to Executive of providing Executive such
benefit coverage. The lump sum shall be determined on a present value basis using
the interest rate provided in Section 1274(b)(2)(B) of the Internal Revenue Code of
1986, as amended (the “Code”) on the Date of Termination. In addition, if such a
lump sum payment is payable, the Company shall make an additional gross-up payment
to Executive in an amount such that the net amount of the lump sums payment and such
additional gross-up payment retained by Executive, after the calculation and
deduction of all federal, state and local income tax and employment tax (including
any interest or penalties imposed with respect to such taxes) on such lump sum
payment and additional gross-up payment, and taking into account any lost or reduced
tax deductions on account of such gross-up payment, shall be equal to such lump sum
payment. Such additional gross-up payment shall be made in a lump sum payment
within 30 days following the Date of Termination.

	 	B.	 	Automobile Allowance. The Company shall provide Executive with a lump
sum payment, in lieu of an automobile allowance, equal to the monthly car allowance in
effect on the date of the Date of Termination, multiplied by the number of months
comprising the Severance Payout Period or Change of Control Payout Period, as
applicable. Such lump sum payment shall be made within 30 days following the Date of
Termination.

	7.	 	Accelerated Vesting of Certain Equity Awards Upon a Change of Control.

Notwithstanding any provisions to the contrary in any of the Option Plans, upon a Change of
Control (i) all outstanding unvested stock options of Executive shall be and become fully
vested and exercisable as to all shares of stock covered thereby, and (ii) all outstanding
            shares of restricted stock, restricted stock units, performance shares and performance units
of Executive shall be and become 100% vested and all restrictions thereon shall lapse, in
each case as of the Date of Termination.

	8.	 	Excise Taxes and Gross-Up Payments.12

 

			
	12	 	For Messrs. Mayer, Maroney, Nibling, and
Moore.

8

 

	 	A.	 	If any payment or benefit received or to be received by Executive in connection
with a change in control of the Company or termination of Executive’s employment
(whether payable pursuant to the terms of this Agreement, a stock option plan or any
other plan or arrangement with the Company) (the “Total Payments”) will be subject to
the excise tax imposed by Section 4999 of the Code, (the “Excise Tax”), then Executive
shall be entitled to receive from the Company an additional payment (the “Gross-Up
Payment”) in an amount such that the net amount of the Total Payments and the Gross-Up
Payment retained by Executive after the calculation and deduction of all Excise Taxes
(including any interest or penalties imposed with respect to such taxes) on the Total
Payments and all federal, state and local income tax, employment tax and Excise Tax
(including any interest or penalties imposed with respect to such taxes) on the
Gross-Up Payments provided for in this Section 8, and taking into account any lost or
reduced tax deductions on account of the Gross-Up Payments, shall be equal to the Total
Payments.
	 
	 	B.	 	All determinations required to be made under this Section 8, including whether
and when the Gross-Up Payments are required and the amount of such Gross-Up Payments,
and the assumptions to be utilized in arriving at such determinations (consistent with
the provisions of the Section 8), shall be made by the Company’s independent certified
public accountants (the “Accountants”). The Accountants shall provide Executive and
the Company with detailed supporting calculations with respect to such Gross-Up
Payments within fifteen (15) business days of the receipt of notice from Executive or
the Company that Executive has received or will receive a Total Payments. In the event
that the Accountants are also serving as accountant or auditor for the individual,
entity or group effecting the Change of Control, Executive shall appoint another
nationally recognized public accounting firm to make the determinations required
hereunder (which accounting firm shall then be referred to as the Accountants
hereunder). All fees and expenses of the Accountants shall be borne solely by the
Company. All determinations by the Accountants shall be binding upon the Company and
Executive.
	 
	 	C.	 	For the purposes of determining whether any of the Total Payments will be
subject to the Excise Tax and the amount of such Excise Tax, such Total Payments will
be treated as “parachute payments” within the meaning of Section 280G of the Code, and
all “parachute payments” in excess of the “base amount” (as defined under Section
280G(b)(3) of the Code) shall be treated as subject to the Excise Tax, unless and
except to the extent that in the opinion of the Accountants such payment (in whole or
in part) either do not constitute “parachute payments” or represent reasonable
compensation for services actually rendered (within the meaning of Section 280G(b)(4)
of the Code) in excess of the “base amount” or such “parachute payments” are otherwise
not subject to such Excise Tax. For purposes of determining the amount of the Gross-Up
Payments, Executive shall be deemed to pay federal income taxes at the highest
applicable marginal rate of federal income taxation for the calendar year in which the
Gross-Up Payments are to be made and to pay any applicable state and local income

9

 

taxes at the highest applicable marginal rate of taxation for the calendar year in
which the Gross-Up Payments are to be made, net of the maximum reduction in federal
income taxes that could be obtained from the deduction of such state or local taxes
if paid if such year (determined without regard to limitations on deductions based
upon the amount of Executive’s adjusted gross income); and to have otherwise
allowable deductions for federal, state and local income tax purposes at least equal
to those disallowed because of the inclusion of the Gross-Up Payments in Executive’s
adjusted gross income.

	 	D.	 	To the extent practicable, any Gross-Up Payments shall be paid by the Company
at the time Executive is entitled to receive the Total Payments and in no event will
any Gross-Up Payments be paid later than thirty (30) days after the receipt by
Executive of the Accountant’s determination. As a result of uncertainty in the
application of Section 4999 of the Code at the time of the initial determination by the
Accountants hereunder, it is possible that the Gross-Up Payments made will have been an
amount less than the Company should have paid pursuant to this Section 8 (the
“Underpayment”). In the event that the Company exhausts its remedies pursuant to
Section 8 and Executive is required to make a payment of any Excise Tax, the
Underpayment shall be promptly paid by the Company to or for Executive’s benefit.
	 
	 	E.	 	Executive shall notify the Company in writing of any claim by the Internal
Revenue Service that, if successful, would require the payment by the Company of the
Gross-Up Payments. Such notification shall be given as soon as practicable after
Executive is informed in writing of such claim and shall apprise the Company of the
nature of such claim and the date on which such claim is requested to be paid.
Executive shall not pay such claim prior to the expiration of the thirty (30) day
period following the date on which Executive gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes, interest and/or penalties
with respect to such claim is due). If the Corporation notifies Executive in writing
prior to the expiration of such thirty (30) day period that it desires to contest such
claim, Executive shall:

	 	(i)	 	give the Company any information reasonably requested by the
Company relating to such claim
	 
	 	(ii)	 	take such action in connection with contesting such claim as
the Company shall reasonably request in writing from time to time, including,
without limitation, accepting legal representation with respect to such claim
by an attorney reasonably selected by the Company;
	 
	 	(iii)	 	cooperate with the Company in good faith in order to
effectively contest such claim; and
	 
	 	(iv)	 	permit the Company to participate in any proceedings relating
to such claims; provided, however, that the Company shall bear and pay directly

10

 

all costs and expenses (including additional interest and penalties)
incurred in connection with such contest and shall indemnify Executive for,
advance expenses to Executive for, defend Executive against and hold
Executive harmless from, on an after-tax basis, any Excise Tax or income tax
(including interest and penalties with respect thereto) imposed as a result
of such representation and payment of all related costs and expenses.
Without limiting the foregoing provisions of this Section 8, the Company
shall control all proceedings taken in connection with such contest and, at
its sole option, may pursue or forego any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect
of such claim and may, at its sole option, either direct Executive to pay
the tax claimed and sue for a refund or contest the claim in any permissible
manner, and Executive agrees to prosecute such contest to a determination
before any administrative tribunal, in a court of initial jurisdiction and
in one or more appellate courts, as the Company shall determine; provided,
however, that if the Company directs Executive to pay such claim and sue for
a refund, the Company shall advance the amount of such payment to Executive,
on an interest-free basis, and shall indemnify Executive for, advance
expenses to Executive for, defend Executive against and hold Executive
harmless from, on an after-tax basis, any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect
to such advance or with respect to any imputed income with respect to such
advance (including as a result of any forgiveness by the Company of such
advance); provided, further, that any extension of the statute of
limitations relating to the payment of taxes for the taxable year of
Executive with respect to which such contested amount is claimed to be due
is limited solely to such contested amount. Furthermore, the Company’s
control of the contest shall be limited to issues with respect to which a
Gross-Up Payments would be payable hereunder and Executive shall be entitled
to settle or contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority.

	 	F.	 	The Gross-Up Payments shall be paid to Executive during Executive’s
employment, or following the termination of Executive’s employment, as determined
under the foregoing provisions; provided, however, such benefits and payments shall
be paid not later than fifteenth day of the third month following the later of the
end of the taxable year of Executive in which Executive’s Date of Termination occurs,
or the end of the taxable year of the Company (or any successor thereto) in which
such Executive’s Date of Termination occurs.

	9.	 	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 6A,
shall the amount of any payment or benefit provided for in this Agreement be

11

 

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.

	10.	 	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 expressly assume this Agreement 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. All references herein to the Company shall include the Successor entity.
Failure of the successor entity to so assume shall constitute a breach of this Agreement and
entitle Executive to the benefits hereunder as if triggered by a termination not for good
cause.

	11.	 	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 judgements, fines, settlements, loss,
cost or expense (including attorneys 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.

	12.	 	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.

12

 

	 	 	 	 	 
	 

	 	The Company:
	 	Executive:
	 
	 	 	 	 
	 

	 	Complete Production Services, Inc.
	 	 

	 

	 	11700 Old Katy Road, Suite 300
	 	 

	 

	 	Houston, Texas 77079
	 	 

	 

	 	Attn: Chief Executive Officer	 	 
	 

	 	with a copy to General Counsel	 	 

	13.	 	Dispute Resolution.

If any dispute arises out of this Agreement, the “complaining party” shall give the “other
party” written notice of such dispute. The other party shall have ten (10) business days to
resolve the dispute to the complaining party’s satisfaction. If the dispute is not resolved
by the end of such period, the complaining party may by written notice (the “Notice”) demand
arbitration of the dispute as set out below, and each party hereto expressly agrees to
submit to, and be bound by, such arbitration.

	 	A.	 	The Company will, within ten (10) business days of the Notice, appoint a single
arbitrator. The arbitrator will set the rules and timing of the arbitration, but will
generally follow the rules of the American Arbitration Association and this Agreement
where same are applicable and shall provide for written fact findings.
	 
	 	B.	 	The arbitration hearing will in no event take place more than ninety (90) days
after the appointment of the arbitrator.
	 
	 	C.	 	The arbitration will take place in Houston, Texas unless otherwise unanimously
agreed to by the parties.
	 
	 	D.	 	The results of the arbitration and the decision of the arbitrators will be
final and binding on the parties and each party agrees and acknowledges that these
results shall be enforceable in a court of law.

	14.	 	Governing Law.

This Agreement will be governed by and construed in accordance with the internal substantive
laws, and not the choice of law rules, of the State of Texas.

	15.	 	Compliance With Internal Revenue Code Section 409A.

	 	A.	 	Notwithstanding anything herein to the contrary, all lump sum payments and
gross up payments to be made pursuant to this Agreement shall be paid not later than
the fifteenth day of the third month following the later of the end of the taxable year
of Executive in which Executive’s Date of Termination occurs, or the end of the taxable
year of the Company (or any successor thereto) in which such Date of Termination
occurs.

13

 

	 	B.	 	This Agreement is not intended to provide for any deferral of compensation
subject to Code Section 409A and, accordingly, the benefits provided pursuant to this
Agreement are intended to be paid not later than the later of: (i) the fifteenth day
of the third month following Executive’s first taxable year in which such benefit is no
longer subject to a substantial risk of forfeiture, and (ii) the fifteenth day of the
third month following the first taxable year of the Company in which such benefit is no
longer subject to a substantial risk of forfeiture, as determined in accordance with
Code Section 409A and any Treasury Regulations and other guidance issued thereunder.
The date determined under this subsection is referred to as the “Short-Term Deferral
Date.”
	 
	 	C.	 	Notwithstanding anything to the contrary herein, in the event that any benefits
provided pursuant to this Agreement are not actually or constructively received by the
Executive on or before the Short-Term Deferral Date, to the extent such benefit
constitutes a deferral of compensation subject to Code Section 409A, then: (i) subject
to clause (ii), such benefit shall be paid upon Executive’s separation from service
within the meaning of Section 409A(a)(2)(A)(i) of the Code, and any other Treasury
Regulations and other guidance thereunder (“Separation from Service”) with respect to
the Company and its affiliates, and (ii) if Executive is a “specified employee,” as
defined in Code Section 409A(a)(2)(B)(i), with respect to the Company and its
affiliates, such benefit shall be paid upon the date which is six months after the date
of Executive’s Separation from Service (or, if earlier, the date of Executive’s death).
In the event that any benefit provided for in this Agreement is subject to this
subsection, such benefit shall be paid on the sixtieth day following the payment date
determined under this subsection, and shall be made subject to the requirements of
Sections 4 and 5, as applicable.

	16.	 	Non-Disparage, Non-Compete and Non-Solicitation Covenants; General Release.

	 	A.	 	Non-Disparage. As an additional inducement for the Company to enter
into this Agreement, Executive agrees that Executive shall refrain throughout the
term of this Agreement, and throughout the Severance Payout Period or the Change of
Control Payout Period, as applicable, from publishing any oral or written statements
about Company, any of its affiliates or any of Company’s or such affiliates’
directors, officers, employees, consultants, agents or representatives that (a) are
slanderous, libelous or defamatory, (b) disclose private information about or
confidential information of Company, any of its affiliates or any of Company’s or any
such affiliates’ business affairs, directors, officers, employees, consultants,
agents or representatives, or (c) place Company, any of its affiliates, or any of
Company’s or any such affiliates’ directors, officers, employees, consultants, agents
or representatives in a false light before the public. A violation or threatened
violation of this prohibition may be enjoined by the courts. The rights afforded
Company and its affiliates under this provision are in addition to any and all rights
and remedies otherwise afforded by law.

14

 

	 	B.	 	Non-Solicitation. As an additional inducement for the Company to
enter into this Agreement, Executive agrees that throughout the Severance Payout
Period or the Change of Control Payout Period, as applicable, Executive shall not,
directly or indirectly knowingly induce any person in the employment of the Company
to (A) terminate such employment, or (B) accept employment, or enter into any
consulting arrangement, with anyone other than the Company.
	 
	 	C.	 	Non-Competition. As an inducement for the Company to enter into
this Agreement, Executive agrees throughout the Severance Payout Period or the Change
of Control Payout Period, as applicable, Executive shall not, anywhere in the world,
directly or indirectly (i) engage without the prior express written consent of the
Company, in any business or activity, whether as an employee, consultant, partner,
principal, agent, representative, stockholder (except as a holder of less than 2% of
the combined voting power of the outstanding stock of a publicly held company) or in
any other individual, corporate or representative capacity, or render any services or
provide any advice to any business, activity, person or entity, if Executive knows or
reasonably should know that such business, activity, service, person or entity,
directly or indirectly, competes in any material manner with the Business, or (ii)
meaningfully assist, help or otherwise support, without the prior express written
consent of the Company, any person, business, corporation, partnership or other
entity or activity, whether as an employee, consultant, partner, principal, agent,
representative, stockholder (other than in the capacity as a stockholder of less than
2% of the combined voting power of the outstanding shares of stock of a publicly held
company) or in any other individual, corporate or representative capacity, to create,
commence or otherwise initiate, or to develop, enhance or otherwise further, any
business or activity if Executive knows or reasonably should know that such business
or activity, directly or indirectly competes in any material manner with the
Business. For purposes of this Section 16(C), the term “Business” shall refer to the
business of the Company as presently conducted or as conducted on the Date of
Termination.
	 
	 	D.	 	General Release. As an additional inducement for the Company to
enter into this Agreement, and as a condition to payment and provision of benefits
under this Agreement to Executive or Executive’s estate, Executive agrees that
Executive (or Executive’s trust or estate, as applicable) shall execute and deliver
and not revoke within any revocation period required by law, a general release of
claims in favor of the Company and its employees, directors, agents and affiliates in
a form acceptable to the Company in its sole and absolute discretion.
	 
	 	E.	 	Reasonable Restrictions. Executive acknowledges that these
restrictions shall not prevent or unduly restrict Executive from practicing his
profession, or cause him economic hardship. Executive represents that he (i) is
familiar with the foregoing covenants not to compete and not to solicit, and (ii) is
fully aware of his obligations hereunder, including, without limitation, the
reasonableness of the length of time, scope and geographic coverage of these
covenants.

15

 

	17.	 	Cooperation
	 
	 	 	During Executive’s employment with the Company and thereafter, Executive agrees to cooperate
with the Company and its agents, accountants and attorneys concerning any matter with which
Executive was involved during his employment. Such cooperation shall include, but not be
limited to, providing information to, meeting with and reviewing documents provided by the
Company and its agents, accountants and attorneys during normal business hours or other
mutually agreeable hours upon reasonable notice and to make himself available for
depositions and hearings, if necessary and upon reasonable notice. If Executive’s
cooperation is required after the termination of Executive’s employment, the Company shall
reimburse Executive for any reasonable out of pocket expenses incurred in performing his
obligations hereunder.
	 
	18.	 	Entire Agreement; No Oral Modifications.

         This Agreement sets forth the entire agreement of the parties hereto in respect of the subject
matter contained herein and supersedes all prior agreements, promises, covenants, arrangements,
communications, representations or warranties, whether oral or written, by any officer, employee or
representative of any party hereto in respect of the subject matter contained herein. No provision
of this Agreement may be modified, waived or discharged unless such waiver, modification or
discharge is agreed to in writing and signed by Executive and such officer as may be designated by
the Board. No waiver by either party hereto at any time of any breach by the other party hereto of
or compliance with, any condition or provision of this Agreement to be performed by such other
party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time.

16

 

     IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement to be effective
the date first above written.

	 	 	 	 	 
	 
	 	 	 	 
	EXECUTIVE	 	COMPLETE PRODUCTION SERVICES, INC.,

a Delaware corporation
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Joseph C. Winkler
	 

	 	 	 	Chief Executive Officer
	 
	 	 	 	 
	 

	 	And	 	 
	 

	 	 	 	 
	 

	 	 	 	James F. Maroney, III
	 

	 	 	 	Vice President, Secretary and General Counsel

17

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