Document:

Exhibit 10.1

 

EXECUTION
COPY

July 13, 2006

Richard Miles

Re: Employment Agreement

Dear Dick,

This is to set
forth the principal terms of an employment relationship between you and Quantum
Geophysical (the “Company”).  This offer
is subject to a successful closing of the proposed acquisition of Grant
Geophysical, Inc. by Geokinetics, Inc. This agreement will replace and
supersede your current employment agreement with Grant Geophysical. Please
review the following and, if acceptable, please indicate your acceptance in the place marked below.

1.               Your
position will be President of the international business unit of Quantum
Geophysical, a wholly owned subsidiary of Geokinetics Inc. You will manage the
acquisition business for all areas outside of North America. You will report to the President and CEO
of Geokinetics. You will devote substantially all of your business time and
attention and best efforts to the affairs of Geokinetics. You will start
employment immediately upon closing the proposed acquisition. You will be based
in Houston Texas, should your position, base location or reporting structure
change at any time without your agreement you will have the right to voluntarily leave with 30
days notice and still be entitled to compensation as described in (5) below.

2.               You
will be paid an annual salary at the rate of $336,672 plus reimbursement of
business expenses to include current country clubs dues and fees against proper
vouchers in accordance with Company policy. Your salary will be reviewed
annually, and will not be reduced without your consent or you will have the
right to voluntarily leave, and be entitled to compensation as described in (5) below.

3.               You
will be granted 200,000
restricted shares of Geokinetics stock. Restrictions will be lifted in three equal, yearly installments
beginning 1 year from your date of hire. This grant will be subject to
shareholder approval of a modified Employee Stock Option Plan associated with
the acquisition of Grant, which plan will govern terms associated with the shares such as change of control, etc.

4.               In
addition to your salary, you will be eligible to participate in an executive
incentive program where you could earn additional sums as a bonus based upon the annual performance of
Geokinetics in relation to its cash flow. Cash flow would be earnings before
depreciation, interest and taxes, less Capex budget overages not previously approved by the Board of Directors
(“EBITDA” less Capex overages).  An annual bonus pool will be established for
Executives and key employees consisting of 5% of the difference of EBlTDA less
CAPEX overages (“Bonus Pool”).  If
earnings from operations are negative, no bonus will be payable. The allocation
of this pool among the Executives
and key employees would be determined by the Board of Directors and would be
paid within 90 days after the end of the bonus earning year. The maximum award
you can receive is two times your annual base salary. For the 2006 award year,
paid in 2007, you will receive a minimum bonus of $200,000 less any payments
made to you during 2006 under the Grant 2006 bonus plan.

 

 

5.               Should the Company sever your
employment for any reason, other than for cause, you would be entitled to
receive as compensation a sum equal
to your annual base salary and
the Company will pay for your medical insurance coverage at your then existing
level for a period of one year.

6.               You
will agree not to compete in the seismic service industry during your
employment and for a period of 1 year after termination either at the company’s
election (provided that payment in (5) above has been made) or if you
voluntarily leave the company. The non-compete would be restricted to the areas
where the Company is operating
at the time of your termination. You will agree to execute Company
non-disclosure and confidentiality agreements with respect to disclosure of
Company proprietary or confidential information.

7.               You
will be entitled to the same employment benefits accorded to executives of the
Company generally, including a monthly car allowance of $400, participation in
a 401k plan, medical insurance, etc.  You
will be entitled to 5 weeks of
paid vacation, prorated over an annual employment year if less than twelve
months. Any accrued vacation earned through employment with Grant Geophysical,
Inc. existing at the time of closing of the proposed acquisition will be cashed
out upon closing of the proposed acquisition at the rate of your base annual
salary with Grant Geophysical, Inc. immediately prior to the closing of the
proposed acquisition.

8.               The
term of this agreement shall initially
be for a period of three years effective from your date of hire and after two
years will extend annually in 1 year increments so that there is always a
minimum of one year remaining unless proper notice has been given.

9.               You
will have the right to terminate your employment with 30 days written notice at
any time after 30 days and within 60 days following the occurrence of a change
in control that results in material diminution of your duties.

I look forward to continuing to profitably grow our
business together.

Agreed and accepted:

	
  13th day of July, 2006

  	
   

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Richard
  Miles

  	
   

  	
   

  	
  /s/ David A. Johnson

  	
   

  
	
  Richard Miles

  	
   

  	
  David A. Johnson

  
	
   

  	
   

  	
  President & CEO, GeokineticsExhibit 10.2

 

EXECUTION
COPY

August 16, 2006

Scott McCurdy

Re: Employment Agreement (the “Agreement”)

Dear Scott

This is to set forth the principal terms of an
employment relationship between you and Geokinetics Inc (the “Company” or “Geokinetics”)
(the “Employment Agreement” or “Agreement”). This offer is subject to a
successful closing of the proposed acquisition of Grant Geophysical (“Grant”)
by Geokinetics Inc. and will be effective upon the date of such closing (the “Effective
Date”), provided that you are continually employed by Grant through the
Effective Date. This Agreement will replace and supersede your current
employment agreement with Grant Geophysical, Inc. Please review the following
and, if acceptable, please indicate your acceptance in the place marked below.

1.               Your
position will be Vice President and CFO of Geokinetics Inc. You will report to
the President and CEO of Geokinetics Inc. You will devote substantially all of
your business time and attention and best efforts to the affairs of the
Company. You will start employment immediately upon closing the proposed
acquisition.

2.               In
connection with your employment under this Agreement, you shall be based in
Houston, Texas or in such other location as may be designated by the Company
and mutually acceptable to you.

3.               You
will be paid a minimum annual base salary at the rate of $200,000 per annum
plus reimbursement of business expenses against proper vouchers in accordance
with Company policy. Your salary will be reviewed annually. Increased salary
shall become the minimum annual base salary under this Agreement and may not be
decreased thereafter without your written consent.

4.               Upon
your execution of this Agreement and your employment by the Company, you will
be granted 175,000 restricted shares of Geokinetics Common Stock. This grant
will be subject to approval by Geokinetics’ shareholders of an increase in the
number of shares of Geokinetics’ Common Stock subject to the Geokinetics Inc.
2002 Stock Awards Plan (the “Stock Incentive Plan”) as a result of Geokinetics’
acquisition of the Company. Restrictions on this stock will be lifted in three
equal, yearly, installments beginning one (1) year from the Effective Date. The
grant will be subject to all of the other provisions of the Stock Incentive
Plan (including change of control provisions). Geokinetics and its counsel will
assist you in making all required filings under Section 83(b) of the Internal
Revenue Code should you, in your sole and absolute discretion, choose to do so.
In the event that the shareholders of Geokinetics fail to approve an increase
in the number of shares available under the Stock Incentive Plan, Geokinetics
and you will attempt to negotiate an acceptable alternative to the grant of
restricted stock described above. If Geokinetics and you are unable to agree,
you shall be entitled to terminate this Agreement without liability.

5.               In
addition to your salary, you will be eligible to participate in the Senior
Executive Incentive Program where you could earn additional sums as a bonus
based upon the annual performance of Geokinetics

 

 

Inc. in
relation to its cash flow. Cash flow would be earnings before depreciation,
interest and taxes, less Capex budget overages not previously approved by the
Board of Directors (“EBITDA” less Capex overages). An annual bonus pool will be
established for Executives and key employees consisting of 5% of the difference
of EBITDA less CAPEX overages (“Bonus Pool”). If earnings from operations are
negative, no bonus will be payable.  The
allocation of this pool among the Executives and key employees would be
determined by the Board of Directors and would be paid within 90 days after the
end of the bonus earning year. The maximum award you can receive is two times
your annual base salary. For the 2006 award year, paid in 2007, you will
receive a guaranteed minimum bonus of $100,000 less any payments made to you
during 2006 under the Grant Geophysical, Inc. 2006 bonus plan.

6.               Should
the Company sever your employment for any reason, other than for cause, you
would be entitled to receive as compensation a sum equal to your annual base
salary plus your most recent non-zero annual cash bonus. Such amount shall be
paid in a single lump sum on your employment termination date. The Company also
will pay for your medical insurance coverage at your then existing level for a
period of one year following your employment termination date.

7.               Following
the occurrence of a Change in Control (as defined in the Geokinetics Inc. 2002
Stock Awards Plan) that results in a diminution of your duties,
responsibilities or position in the management of the Company and/or results in
a material negative impact on your remuneration (“a Material Negative Event”),
the Employee shall have the right to terminate the Agreement by written notice
to the Company within 90 days following the occurrence of the Material Negative
Event by giving 60 days notice. If you make the election to terminate the
Agreement under this section and have given the required notice, then you shall
be entitled to receive as compensation a sum equal to your annual base salary.
Such amount shall be paid in a single lump sum on your employment termination
date.

8.               You
will agree not to compete in the seismic service industry during your
employment and for a period of one year after termination either at the Company’s
election or if you voluntarily leave the Company, except under the options
described in 7 above and 9 below.
The non-compete would be restricted to the areas where the Company is operating
at the time of your termination. You will agree to execute Company
non-disclosure and confidentiality agreements with respect to disclosure of
Company proprietary or confidential information.

9.               You
will have the opportunity to make a one time election within 34 days of the
execution by all parties of the Letter of Intent (“LOI”) from Geokinetics Inc.
to the existing shareholders of Grant Geophysical, Inc. to voluntarily agree to
terminate your employment 1 day after the closing of the acquisition of Grant
Geophysical, Inc. by Geokinetics Inc. or 60 days from the date of your election
whichever is later. In the event you choose to make this election, you will
receive 6 months base pay in a single lump sum on your employment termination
date. The Company also will pay medical insurance coverage at your then
existing level for a period of 6 months following your employment termination
date.

10.         You
will be entitled to the same employment benefits accorded to executives of the
Company generally, including a monthly car allowance of $400, participation in
a 401k plan, medical insurance, etc. You will be entitled to 4 weeks of paid vacation, prorated
over an annual employment year if less than twelve months.  Any accrued vacation earned through
employment with Grant Geophysical in existence at the time of closing of the
proposed acquisition will be cashed out upon closing of the proposed
acquisition at the rate of your base annual salary with Grant Geophysical, Inc.
immediately prior to the closing of the proposed acquisition.

 

 

11.         The
term of this Agreement shall be for a period of three years effective from your
date of hire.

12.         Notwithstanding
anything to the contrary in this Agreement, to the extent that you, in your
individual capacity, or your advisors determine that you are deemed to be a “specified
employee” for purposes of Section 409A(a)(2)(B) of the of the Internal Revenue
Code of 1986, as amended (the “Code”) and
that compliance with Section 409A of the Code so requires, you and the Company
agree that any non-qualified deferred compensation payments due to you under
this Agreement in connection with a termination of your employment which do not
constitute short-term deferrals and would otherwise have been payable to you at
any time during the six-month period immediately following such termination of
employment shall not be paid prior to, and shall instead be payable in a lump
sum immediately following, the expiration of such six-month period.

13.         The
parties acknowledge that the closing of the proposed acquisition of Grant
Geophysical, Inc. by the Company will trigger a payment due to you under the
terms of the Phantom Stock Agreement which is Exhibit A to your current
contract with Grant Geophysical, Inc. dated January 1st, 2004, and that the
terms of the Phantom Stock Agreement will continue until all obligations of the
Company with regards to the purchase of 100% of the stock of Grant Geophysical,
Inc. have been satisfied.

I look forward to continuing to profitably grow our
business together.

Agreed and accepted:

	
  16th day of August, 2006

  	
   

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Scott
  McCurdy

  	
   

  	
   

  	
  /s/ David A. Johnson

  	
   

  
	
  Scott McCurdy

  	
   

  	
  David A. Johnson

  
	
   

  	
   

  	
  President & CEO, Geokinetics

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