Document:

exv10w9

Exhibit 10.9

EMPLOYMENT AGREEMENT

     This Employment Agreement (the “Agreement”) is made effective as of the Effective Date
(as defined below) by and between C&J Energy Services, Inc., a Texas corporation (the
“Company”), and Brett Barrier (“Executive”).

RECITALS

     WHEREAS, conditioned upon the occurrence of the closing of that certain private placement
described in the preliminary offering memorandum dated November 22, 2010, pursuant to which shares
of Company common stock will be purchased and/or placed by FBR Capital Markets & Co. (the date of
such closing the “Effective Date”), the Company wishes to continue to employ Executive, and
Executive wishes to be employed by the Company, under the conditions of employment specified in
this Agreement; and

     WHEREAS, both the Company and Executive have read and understood the terms of this Agreement,
and have been afforded a reasonable opportunity to review this Agreement with their respective
legal counsel.

     NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this
Agreement, the parties hereto agree as follows, effective as of the Effective Date:

AGREEMENT

ARTICLE I

DEFINITIONS

     1.1 Certain Definitions. For purposes of this Agreement, the following terms shall have the
meanings specified or referred to in this Section 1.1:

          (a) “Accrued Obligation” shall mean the sum of (1) Executive’s Base Salary earned through the
Date of Termination and (2) any accrued vacation pay earned by Executive, in both cases, to the
extent not theretofore paid.

          (b) “Business” shall mean any business in which the Company is, as of the Date of
Termination, engaged or has undertaken material substantive steps to engage within the twelve (12)
month period prior to the Date of Termination, which currently includes the well completion and
servicing business (including the provision of services such as hydraulic fracturing, coiled
tubing, and pressure pumping).

          (c) “Cause” shall mean Executive’s (i) willful and continued failure to substantially
perform, without proper legal justification or due to reasons beyond Executive’s control, the
duties required under any written employment agreement between Executive and the Company or any
affiliate of the Company or as otherwise reasonably required by the Board or Chief Executive
Officer (“CEO”) of the Company in the course of his duties; (ii) conviction, admission or
plea of guilty or nolo contendere to a charge of felony, or any dishonest conduct
materially adverse to the Company or any affiliate of the Company, including any theft,

 

 

embezzlement, misappropriation or misuse of funds or property, fraud or falsification of records,
correspondence or other documents; (iii) any material breach of any of the terms of, or failure to
perform any of his covenants contained in any written employment agreement between Executive and
the Company or any affiliate of the Company; and (iv) material violation or failure to abide by
the lawful instructions, policies or workplace rules established by the Company or any affiliate
of the Company.

          (d) “Change of Control” shall mean any of the following:

          (i) any “person” (as such term is used in Section 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)), other than a Permitted Holder,
acquires “beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act of
securities of the Company representing more than fifty percent (50%) of the combined voting
power of the Company’s then outstanding securities; provided, however, that if the Company
engages in a merger or consolidation in which the Company or surviving entity in such merger
or consolidation becomes a subsidiary of another entity, then references to the Company’s
then outstanding securities shall be deemed to refer to the outstanding securities of such
parent entity;

          (ii) a change in the composition of the Board as a result of either (1) an actual or
threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A
promulgated under the Exchange Act) or (2) an actual or threatened solicitation of proxies
or consents by or on behalf of a person other than the Board, in either case which results
in individuals other than individuals who were directors before such contest or solicitation
comprising a majority of the members of the Board;

          (iii) the consummation of a merger or consolidation of the Company with any
corporation, including without limitation, a reverse or forward triangular merger, and
Company’s shareholders prior to such transaction own less than a majority of the 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 or its respective affiliates or a Permitted Holder for the
ownership of more than fifty percent (50%) or more of the Company’s voting securities;

          (v) the sale or disposition (other than a pledge or similar encumbrance) by the Company
of all or substantially all of the assets of the Company other than to a subsidiary or
subsidiaries of the Company or to a Permitted Holder;

          provided, that for purposes of this definition, a transaction or event described in
paragraph (i), (ii), (iii), (iv) and (v) shall constitute a “Change of Control” only if such
transaction or event constitutes a “change of control event,” as defined in Treasury
Regulation Section 1.409A-3(i)(5), with respect to Executive.

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          (e) “Change of Control Period” shall mean the period beginning on the effective date of the
Change of Control and ending on the two (2) year anniversary of such Change in Control.

          (f) “Code” shall mean the Internal Revenue Code of 1986, as amended.

          (g) “Date of Termination” shall mean the effective date of termination of Executive’s
employment hereunder, as specified in the applicable Notice of Termination.

          (h) “Good Reason” shall mean Executive’s written notice to the Company of his resignation
upon the occurrence of any one of the following events without Executive’s consent: (i) permanent
relocation of the primary place of Executive’s employment more than fifty (50) miles outside the
Corpus Christi or Houston metropolitan area without the prior written consent of Executive (and,
for the avoidance of doubt, a requirement by the Company that Executive relocate to the Houston
metropolitan area shall not constitute Good Reason); (ii) a material reduction in Executive’s then
effective Base Salary, or (iii) a material breach by the Company of this Agreement other than any
change in Executive’s authority, responsibility, and/or office; provided that such event(s) shall
constitute Good Reason only to the extent set forth in Section 4.1(b).

          (i) “Permanent Disability” shall mean the sickness or disability that renders a Person
incapable of performing his duties under any employment or consulting agreement between such
Person and the Company or any Subsidiary of the Company for a period in excess of six (6) months
during any consecutive twelve (12) month period.

          (j) “Permitted Holder” shall mean (i) any of StepStone Capital Partners II Onshore, L.P.,
StepStone Capital Partners II Cayman Holdings, L.P., 2006 Co-Investment Portfolio, L.P., Citigroup
Capital Partners II Employee Master Fund, L.P., Energy Spectrum Partners IV LP or any of their
respective affiliates, (ii) any trustee or other fiduciary holding securities under an employee
benefit plan of the Company or any of its affiliates, and (iii) any affiliate of the Company or
any corporation, partnership, limited liability company or other entity owned, directly or
indirectly, by the stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company.

          (k) “Restricted Area” shall mean those geographic areas where the Company conducts, as of the
Date of Termination, the Business, including those parishes, counties and other areas specified on
Exhibit “A”, and any additional areas in which the Company has taken material substantive steps in
preparation to conduct the Business and of which Executive is aware during the Term.

          (l) “Section 409A” shall mean Section 409A of the Code and the final Department of Treasury
regulations issued thereunder.

          (m) “Separation from Service” shall have the meaning ascribed to such term in Section 409A.

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ARTICLE II

DUTIES

     2.1 Duties. During the term of this Agreement, Executive shall serve the Company as
Chief Operations Officer (“COO”) as the Board of Directors of the Company (the
“Board”) and Executive shall mutually agree. Executive shall report to the Board, CEO, and
Executive Vice President of the Company. Executive shall comply with the policies of the Company
as may be in effect from time to time for executive officers, including, without limitation, the
Company’s policies regarding confidentiality, ownership of intellectual property, drug testing,
discrimination and harassment, and ethical conduct. Executive shall have such duties, authorities
and responsibilities commensurate with the duties, authorities and responsibilities of a person in
similar capacities in a similarly sized company and such other duties and responsibilities as the
Board shall designate that are consistent with Executive’s position as COO.

     2.2 Extent of Duties. Subject to the use of vacation, holiday and other approved
leave time, Executive shall devote substantially all of his business time, energy and efforts to
the affairs of the Company as the Company, acting through its Board, shall reasonably deem
necessary in the discharge of Executive’s duties hereunder and not to engage, directly or
indirectly, in any other business or businesses, whether or not similar to that of Company, except
with the consent of the Board or as otherwise permitted by this Section 2.2. Executive agrees to
serve in the positions referred to in Section 2.1 and to perform diligently and to the best
of his abilities the duties and services appertaining to such offices, as well as such additional
duties and services appropriate to such offices which the parties mutually may agree upon from time
to time. Notwithstanding the foregoing, nothing herein shall prevent Executive from participating
in social, civic, charitable, religious, business, educational or professional associations, or the
passive management of Executive’s personal investments, so long as such activities do not
materially detract from Executive’s ability to perform his duties under this Agreement or otherwise
violate the provisions of this Agreement. Without limiting the foregoing, in the event that
Executive desires to participate personally in any business opportunity that is reasonably related
to the Company’s business, Execute shall not participate in such opportunity without first making
full disclosure to the Board of such opportunity and the scope of Executive’s proposed involvement.
Notwithstanding the foregoing, Executive acknowledges his fiduciary duties to the Company and
shall not appropriate any Company business opportunity for himself in violation of such fiduciary
duties.

ARTICLE III

TERMS OF EMPLOYMENT

     3.1 Employment Period. Unless sooner terminated pursuant to the terms and conditions
of this Agreement, Executive’s employment pursuant to this Agreement shall commence on the
Effective Date and end on the third anniversary of the Effective Date (the “Term,” which
shall include any extensions thereof pursuant to this Section 3.1); provided, however, that
on the third anniversary of the Effective Date and on each anniversary thereafter (each an
“Extension Date”), if Executive’s employment under this Agreement has not been terminated
pursuant to Article IV, the Term shall automatically extend for successive one (1) year
periods unless on or before the date that is sixty (60) days prior to the Extension Date, the

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Company or Executive provides the other party hereto written notice (a “Notice of
Non-Renewal”) that the Term shall not be so extended.

     3.2 Annual Base Compensation. As compensation for services rendered under this
Agreement, Executive shall be entitled to receive from the Company a minimum annual base salary
(before standard deductions) of $325,000 (“Base Salary”). Executive’s Base Salary shall be
reviewed by the Board on an annual basis and, in the Board’s discretion, may be increased;
provided, however, that Executive’s Base Salary shall not be decreased without the written consent
of Executive. Executive’s Base Salary shall be payable in arrears at regular intervals (but no
less frequently than monthly) in accordance with the prevailing practice and policies of the
Company.

     3.3 Annual Bonus.

          (a) Executive shall be eligible to receive an annual bonus (“Annual Bonus”) for each
full calendar year beginning on or after January 1, 2010 that he is employed with the Company
during the Term (each such calendar year, a “Bonus Year”) in which the Company achieves
certain targets as set forth by the Compensation Committee, and the amount of such bonus shall
have a target range of 75% to 100% of Executive’s Base Salary for the applicable Bonus Year;
provided that, for the avoidance of doubt, Executive shall not be entitled to an Annual Bonus for
any Bonus Year, unless the Compensation Committee determines otherwise, in which the Company does
not achieve such targets, as determined by the Compensation Committee and provided, further, that
Executive shall not be entitled to any Annual Bonus if Executive is terminated by the Company for
Cause prior to the date of payment of such Annual Bonus. The Annual Bonus will be paid between
January 1 and March 15 of the calendar year immediately following the Bonus Year (the “Payment
Date”); provided, however, that if the Company’s accountants have not delivered the audited
financial statements for such Bonus Year prior to the Payment Date, the Company may delay the
Payment Date until the earlier to occur of (i) three (3) days following the Company’s receipt of
such Bonus Year’s audited financial statements and (ii) June 30 of the calendar year immediately
following the Bonus Year. Notwithstanding the foregoing, the Company shall use its best efforts
to ensure delivery of its audited financial statements for each Bonus Year on or before March 15
of the following calendar year. Each Bonus Year during the Term, the Compensation Committee will
review the structure of the targets provided by it for the preceding Bonus Year and establish the
targets for the Bonus Year as it deems appropriate.

          (b) In addition to the Annual Bonus, Executive shall be eligible to additional incentive
bonus compensation in the sole discretion of the Board, sitting without Executive (the
“Discretionary Bonus” and together with the Annual Bonus, the “Bonuses”). The
frequency, amount, and payment terms of any Discretionary Bonus shall be left to the exclusive
discretion of the Board (sitting without Executive).

     3.4 Benefits. The Company agrees to provide Executive and Executive’s eligible family
members with the employment benefits that the Company ordinarily provides to similarly situated
employees, subject to the terms and conditions of the applicable benefit programs and plans.
Executive, at Executive’s election, shall be eligible to participate in any and all employee
benefit plans (including, but not limited to, medical and dental insurance, retirement plans,

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disability insurance and life insurance) implemented by the Company from time to time for its
executive employees and their families. Such employment benefits shall be governed by the
applicable plan documents, insurance policies, and/or employment policies, and may be modified,
suspended, or revoked in accordance with the terms of the applicable documents or policies. In
addition to those benefits, the Company agrees to provide or cause to provide the following
benefits upon satisfaction by Executive of any eligibility requirements, subject to the following
limitations:

          (a) Sick-Leave Benefits and Disability Insurance. To the extent made available to
other employees of the Company, and unless this Agreement is terminated pursuant to Article
IV, Executive shall be paid sick leave benefits at his then prevailing Base Salary rate during
his absence due to illness or other incapacity; provided, however, that any sick-leave benefits
will be reduced by the amount, if any, of worker’s compensation, Social Security entitlement, or
disability benefits, if any, under the Company’s insurance policies or group employee welfare
benefit plans, if any.

          (b) Vacations. The Company shall provide Executive with vacation consistent with
company policy, but not less than twenty (20) business days paid vacation per calendar year during
his employment under this Agreement (“Vacation Days”). Any unused Vacation Days shall
carry over to the following year, but shall only remain valid for a period of one (1) year. The
Company also agrees to provide Executive with all paid holidays ordinarily given by the Company to
its employees.

     3.5 Equity Incentives. As a long term incentive, not later than March 15 of each year
during the Term beginning 2012, Executive shall be eligible to receive options to acquire such
number of shares of Company’s common stock as determined by the Compensation Committee. Such
options shall be granted as a long-term incentive pursuant to the Company’s 2010 Stock Incentive
Plan and/or such other applicable equity incentive plan(s) then in effect (the “Plan”). Subject to
all terms, conditions and provisions and obligations of, and only upon execution of, the Option
Agreement attached hereto as Exhibit “B” (the “Option Agreement”), issued pursuant to the Plan,
effective as of the Effective Date, Executive shall be granted options to purchase 474,991 shares
of the Company’s common stock. Vesting for the options granted pursuant to the Option Agreement
shall occur over a three-year period with 1/3 of such options vesting on each of the first, second,
and third anniversaries of the date of grant and shall accelerate in accordance with Sections
4.3(b)(2) and (c)(2). The terms of the Option Agreement shall govern and control any
conflict between the terms of this Agreement and the terms of the Option Agreement.

     3.6 Other Benefits.

          (a) During the Term of the Agreement, Executive shall be entitled to fringe benefits and
perquisites which shall include (i) an automobile and related insurance coverage for Executive’s
use which is commensurate with Executive’s position, title and duties with the Company and (ii) to
the extent the Company requires Executive to relocate to Houston, Texas, the Company shall pay all
reasonable relocation costs incurred by Executive, as determined by the Company.

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          (b) Executive is authorized to incur ordinary, necessary, and reasonable business expenses in
connection with the performance of his duties, responsibilities, and authorities under this
Agreement and for the promotion of the Company’s business and activities during this Agreement,
including but not limited to expenses for necessary travel and entertainment and other items of
expense required in the normal and routine course of Executive’s employment under this Agreement.
The Company will reimburse Executive from time to time for all such business expenses actually
incurred pursuant to and in conformity with this subsection and the policies and practices of the
Company then in effect relative to the reimbursement of business expenses.

ARTICLE IV

TERMINATION

     4.1 Termination of Employment:

          (a) Termination by Company for Cause. The Company may terminate this Agreement at
any time, without any further liability to Executive, for any Cause. If the Company believes
Cause exists for terminating this Agreement pursuant to this paragraph, it shall give Executive
written notice of the acts or omissions constituting Cause in its Notice of Termination and this
Agreement shall terminate immediately upon provision of such notice; provided, however, that if
such acts or omissions are of the type described in Section 1.1(c)(i), (iii) or
(iv), no termination of this Agreement shall be effective unless and until Executive fails
to cure such acts or omissions, if curable (as determined by the Company in its reasonable
discretion), within ten (10) days after receiving such notice.

          (b) Termination by Executive for Good Reason. Executive may terminate Executive’s
employment under this Agreement for Good Reason. Executive shall provide notice of any reduction,
failure, change or breach upon which Executive intends to rely as the basis for a Good Reason
resignation within thirty (30) days of the occurrence of such event. The Company shall have
thirty (30) days following the receipt of such notice to remedy the condition constituting such
reduction, change or breach and, if so remedied, any resignation by Executive on the basis of the
circumstances described in such notice shall not be considered a Good Reason resignation. If the
Company does not remedy the condition that has been the subject of a notice during the designated
thirty (30) day remedy period, Executive must terminate his employment within one hundred twenty
(120) days following the occurrence of such condition, and provide a Notice of Termination in
accordance with Section 4.2, in order for such termination to be considered for Good
Reason for purposes of this Agreement.

          (c) Termination by Company without Cause or by Executive Other than for Good Reason.
The Company may terminate Executive’s employment under this Agreement without Cause, and Executive
may terminate this Agreement other than for Good Reason. Any termination of Executive’s
employment by Executive without Good Reason shall be made by the provision of at least thirty (30)
days prior written notice to the Company in accordance with Section 4.2. Any termination
of Executive’s employment by Company without Cause other than a notice of non-renewal of the Term
pursuant to Section 3.1 shall be made by the provision of at least fourteen (14) days
prior written notice to Executive in accordance with Section 4.2. For the avoidance of
doubt, the Company’s non-renewal of the Term pursuant to

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Section 3.1 will not constitute a termination by Company without Cause for purposes
of this Article IV.

          (d) Change of Control Termination. A termination of Executive’s employment by
Company without Cause, by Executive for Good Reason or by the Company not electing to extend the
Term of Executive’s employment during a Change of Control Period shall be subject to the
provisions of Section 4.3(c).

          (e) Termination on Death or Permanent Disability. This Agreement shall automatically
terminate on Executive’s death or upon the provision to Executive of notice of the Company’s
determination of his Permanent Disability.

     4.2 Notice of Termination. Any termination by the Company or Executive pursuant to
Sections 4.1(a), (b), (c), (d) or (e) (in the case of Executive’s Permanent
Disability only) shall be communicated by a “Notice of Termination” to the other party
hereto. The failure by Executive or the Company to set forth in the Notice of Termination any fact
or circumstance which contributes to a showing of Good Reason, Cause or Permanent Disability shall
not waive any right of Executive or the Company hereunder or preclude Executive or the Company from
asserting such fact or circumstance in enforcing Executive’s or the Company’s rights hereunder.

     4.3 Obligations of the Company Upon Termination:

          (a) Termination by the Company for Cause or by Executive Other than for Good Reason.
If the Company terminates Executive for Cause or if Executive resigns his employment other than
for Good Reason, Executive shall be entitled only to the payment of (i) the Accrued Obligation and
(ii) unreimbursed expenses.

          (b) Termination by Executive for Good Reason or by the Company Other Than for Cause,
Death or Permanent Disability or for Non-Renewal of Term Not During a Change of Control
Period. If, at any time other than during the Change of Control Period, Executive terminates
this Agreement during the Term for Good Reason, the Company terminates Executive’s employment
during the Term other than for Cause, death or Permanent Disability, or the Company provides a
Notice of Non-Renewal pursuant to Section 3.1, Executive shall be entitled to receive (i)
payment of the Accrued Obligation and any unreimbursed expenses and (ii) any unpaid Bonuses owed
to Executive for a previous calendar year due pursuant to the terms and conditions of Section
3.3. In addition, subject to Executive’s delivery, within fifty (50) days after the Date of
Termination, and non-revocation of an executed release in form and substance customary for
releases of this nature and reasonably satisfactory to the Company (which shall release and
discharge the Company and its affiliates, and their respective partners, officers, directors,
employees, agents, shareholders and employee benefit plans from any and all claims or causes of
action of any kind or character, including but not limited to all claims or causes of action
arising out of Executive’s employment with the Company or its affiliates or the termination of
such employment, other than any vested accrued benefits under such plans, rights to
indemnification pursuant to the Certificate of Incorporation and/or Bylaws of the Company or under
applicable law, and rights of Executive to the post-termination benefits pursuant to this
Agreement) (the “Release”) and compliance with Articles V, VI and VII,
Executive shall also be entitled to receive:

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          (1) if Executive’s Date of Termination was after June 30 of a year, a pro rata payment
of the Annual Bonus for such calendar year of termination, determined pursuant to the terms
and conditions of Section 3.3;

          (2) any and all stock options awarded to Executive under any plan not previously
exercisable and vested shall become fully exercisable and vested;

          (3) salary continuation severance payments based on Executive’s Base Salary as in
effect on the Date of Termination continuing for the longer of (A) the remaining Term or (B)
one (1) year from the Date of Termination, but in any event not more than two (2) years from
the Date of Termination (“Severance Period”), payable in equal monthly installments
in accordance with normal payroll practices; and

          (4) a lump sum payment of an amount equal to all Consolidated Omnibus Budget
Reconciliation Act (“COBRA”) premiums that would be payable during the Severance
Period, assuming Executive and his dependents who were then enrolled elected continuation
coverage under the Company’s group health plans as in effect, and at the applicable COBRA
rates, as of the Date of Termination;

provided, however, that, notwithstanding anything to the contrary herein, if the termination of
this Agreement is by reason of the Company providing a Notice of Non-Renewal, the salary
continuation payments provided for in Section 4.3(b)(3) shall continue for twelve (12)
months if the Term ends on the third anniversary of the Effective Date, six (6) months if the Term
ends on the fourth anniversary of the Effective Date, and three (3) months (or such longer period
of time as may be provided under any severance policy or program of the Company) if the Term ends
on or after the fifth anniversary of the Effective Date.

          (c) Change of Control Termination. If, during the Change of Control Period, the
Company terminates Executive’s employment without Cause, Executive resigns his employment for Good
Reason, or the Company provides a Notice of Non-Renewal pursuant to Section 3.1, Executive
shall be entitled to receive (i) payment of the Accrued Obligation and any unreimbursed expenses
and (ii) any unpaid Bonuses owed to Executive for a previous calendar year due pursuant to the
terms and conditions of Section 3.3 of this Agreement. In addition, subject to
Executive’s delivery, within (fifty) 50 days after the Date of Termination, and non-revocation of
an executed Release and compliance with Articles V, VI and VII, Executive shall
also be entitled to receive:

          (1) if Executive’s date of Termination was after June 30 of a year, a pro rata payment
of the Annual Bonus for such calendar year of termination, determined pursuant to the terms
and conditions of Section 3.3;

          (2) any and all stock options awarded to Executive under any plan not previously
exercisable and vested shall become fully exercisable and vested;

          (3) an amount equal to Executive’s Base Salary as in effect on the Date of Termination
for the longer of (A) the remaining Term or (B) two (2) years from

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the Date of Termination, payable in six (6) equal monthly installments in accordance
with normal payroll practices;

          (4) a lump sum payment of an amount equal to all COBRA premiums that would be payable
during the Severance Period, assuming Executive and his dependents who were then enrolled
elected continuation coverage under the Company’s group health plans as in effect, and at
the applicable COBRA rates, as of the Date of Termination.

          (d) Termination on Death or Permanent Disability. If Executive’s employment is
terminated by reason of Executive’s death or Permanent Disability during the Term, this Agreement
shall terminate without further obligations to Executive, other than for (i) payment of the
Accrued Obligation, (ii) payment of any unreimbursed expenses; (iii) any unpaid Bonuses owed to
Executive for previous Bonus Years due pursuant to the terms and conditions of Section 3.3
of this Agreement, (iv) if Executive’s Date of Termination was after June 30 of a year, the pro
rata payment of the Annual Bonus as determined by the Board for such Bonus Year of termination
payable pursuant to the terms and conditions of Section 3.3 of this Agreement and (v) the
timely payment or provision of any and all benefit obligations provided under Section 3.4,
which under their terms are available in the event of death or disability.

          (e) Termination by Executive at Expiration of the Term. If this Executive’s
employment hereunder terminates by reason of Executive’s provision of a Notice of Non-Renewal
pursuant to Section 3.1, Executive shall be entitled only to the payment of (i) the
Accrued Obligation, (ii) unreimbursed expenses, (iii) previously awarded and earned, but unpaid,
bonuses due pursuant to the terms and conditions of Section 3.3 of this Agreement and (iv)
if Executive’s Date of Termination was after June 30 of a year, the pro rata payment of the Annual
Bonus as determined by the Board for such Bonus Year of termination payable pursuant to the terms
and conditions of Section 3.3 of this Agreement.

     4.4 Except as otherwise provided in Section 9.13, the Company shall pay Executive the
amounts specified in Sections 4.3(a)(i) and (ii), 4.3(b)(i),
4.3(c)(i), 4.3(d)(i) and (ii), and 4.3(e)(i) and (ii)
within thirty (30) days after the Date of Termination. In addition, subject to Executive’s timely
execution and non-revocation of the Release and compliance with Articles V, VI and
VII, the Company shall commence payment to Executive of the amounts specified in Sections
4.3(b)(3) and 4.3(c)(3) and shall pay Executive the amounts specified in Section
4.3(b)(4) and 4.3(c)(4) on the date that is sixty (60) days after the Date of
Termination. Any other amounts payable by Company under Sections 4.3(b)(ii) and
(b)(1), 4.3(c)(ii) and (c)(1), 4.3(d)(iii), (iv) and (v)
and 4.3(e), (iii) and (iv) are payable pursuant to the respective section of this
Agreement.

     4.5 Limitations on Severance Payment and Other Payments or Benefits.

          (a) Limitation on Payments. Notwithstanding any provision of this Agreement, if any
portion of the payments under this Agreement, or under any other agreement with Executive or plan
of the Company or its affiliates (in the aggregate, “Total Payments”), would constitute an
“excess parachute payment” and would, but for this Section 4.5, result in

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the imposition on Executive of an excise tax under Code Section 4999, then the Total Payments
to be made to Executive shall either be (i) delivered in full, or (ii) delivered in such reduced
amount in the manner determined in accordance with Section 4.5(b) so that no portion of
such Total Payment would be subject to the Excise Tax, whichever of the foregoing results in the
receipt by Executive of the greatest benefit on an after-tax basis (taking into account the
applicable federal, state and local income taxes and the Excise Tax).

          (b) Determination of Limit. Within forty (40) days following a Date of Termination
or notice by one party to the other of its belief that there is a payment or benefit due Executive
that will result in an excess parachute payment, Executive and the Company, at the Company’s
expense, shall obtain the opinion (which need not be unqualified) of a nationally recognized tax
counsel (“National Tax Counsel”) selected by the Company (which may be regular outside
counsel to the Company), which opinion sets forth (i) the amount of the Base Period Income (as
defined below), (ii) the amount and present value of the Total Payments, (iii) the amount and
present value of any excess parachute payments determined without regard to any reduction of Total
Payments pursuant to Section 4.5(a), and (iv) the net after-tax proceeds to Executive,
taking into account the tax imposed under Code Section 4999 if (x) the Total Payments were reduced
in accordance with Section 4.5(a) or (y) the Total Payments were not so reduced. The
opinion of National Tax Counsel shall be addressed to the Company and Executive and shall be
binding upon the Company and Executive. If such National Tax Counsel’s opinion determines that
Section 4.5(a)(ii) above applies, then the Termination Benefits hereunder or any other
payment or benefit determined by such counsel to be includable in Total Payments shall be reduced
or eliminated so that under the bases of calculations set forth in such opinion there will be no
excess parachute payment. In such event, payments or benefits included in the Total Payments
shall be reduced or eliminated by applying the following principles, in order: (1) the payment or
benefit with the higher ratio of the parachute payment value to present economic value (determined
using reasonable actuarial assumptions) shall be reduced or eliminated before a payment or benefit
with a lower ratio; (2) the payment or benefit with the later possible payment date shall be
reduced or eliminated before a payment or benefit with an earlier payment date; and (3) cash
payments shall be reduced prior to non-cash benefits; provided that if the foregoing order of
reduction or elimination would violate Code Section 409A, then the reduction shall be made pro
rata among the payments or benefits included in the Total Payments (on the basis of the relative
present value of the parachute payments).

          (c) Definitions and Assumptions. For purposes of this Agreement: (i) the terms
“excess parachute payment” and “parachute payments” shall have the meanings assigned to them in
Code Section 280G and such “parachute payments” shall be valued as provided therein; (ii) present
value shall be calculated in accordance with Code Section 280G(d)(4); (iii) the term “Base Period
Income” means an amount equal to Executive’s “annualized includible compensation for the base
period” as defined in Code Section 280G(d)(1); (iv) “Termination Benefits” shall mean, the
payments and benefits to be paid or provided pursuant to Sections 4.3(c)(1), (2), (3) and
(4); (v) for purposes of the opinion of National Tax Counsel, the value of any noncash
benefits or any deferred payment or benefit shall be determined by the Company’s independent
auditors in accordance with the principles of Code Sections 280G(d)(3) and (4), which
determination shall be evidenced in a certificate of such auditors addressed to the Company and
Executive; and (vi) Executive shall be deemed to pay federal income tax and

11

 

employment taxes at the highest marginal rate of federal income and employment taxation, and
state and local income taxes at the highest marginal rate of taxation in the state or locality of
Executive’s domicile (determined in both cases in the calendar year in which the Date of
Termination or notice described in Section 4.5(b) above is given, whichever is earlier),
net of the maximum reduction in federal income taxes that may be obtained from the deduction of
such state and local taxes.

          (d) Reasonableness of Compensation. If such National Tax Counsel so requests in
connection with the opinion required by this Section 4.5, Executive and the Company shall
obtain, at the Company’s expense, and the National Tax Counsel may rely on, the advice of a firm
of recognized executive compensation consultants as to the reasonableness of any item of
compensation to be received by Executive solely with respect to its status under Code Section
280G.

          (e) Indemnification. The Company agrees to bear all costs associated with, and to
indemnify and hold harmless, the National Tax Counsel of and from any and all claims, damages, and
expenses resulting from or relating to its determinations pursuant to this Section 4.5,
except for claims, damages or expenses resulting from the gross negligence or willful misconduct
of such firm.

          (f) Changes to Code Section. This Section 4.5 shall be amended to comply
with any amendment or successor provision to Sections 280G or 4999 of the Code. If such
provisions are repealed without successor, then this Section 4.5 shall be cancelled
without further effect.

     4.6 Resignation Upon Termination. Upon any termination of Executive’s employment with
the Company, and without further action on the part of Executive, Executive shall be deemed to have
resigned from each directorship and other office or position of authority Executive may hold with
the Company or any of its direct or indirect subsidiary business entities.

ARTICLE V

CONFIDENTIAL INFORMATION AND NONCOMPETITION

     5.1 Confidential Information. For the purposes of Articles V, VI, VII, and
VIII the “Company” shall be deemed to include the Company and each of its direct and
indirect subsidiary business entities. For such purposes, a subsidiary shall mean any business
entity with respect to which the Company owns or controls, directly or indirectly, not less than a
majority of the equity securities of such entity, or otherwise possesses, with by virtue of
security ownership or contract, the power to elect a majority of the Board or other governing body
or offices thereof.

     5.2 Scope of Confidential Information. Executive acknowledges that the Company has
developed, and will during the term of Executive’s employment continue to develop, substantial,
confidential, competitively valuable information and other intangible or “intellectual property” in
connection with its business, some or all of which is proprietary to the Company, (collectively,
the “Confidential Information”). Without limiting the generality of the preceding
sentence, Executive expressly recognizes and agrees that subject to the remainder of this
subsection, the following items, and all copies, summaries, extracts or derivative works thereof,

12

 

are entitled to trade secret protection and constitute Confidential Information under this
Agreement, whether developed prior to the date hereof or hereafter, and whether with the assistance
of Executive or otherwise: (i) the Company’s proprietary computer software, databases and lists of
customers, prospects, candidates, and employees; employee applications; skills inventory sheets and
similar summaries of employee qualifications as well as employee compensation; customer ordering
habits, billing rates, buying preferences, and short term needs; sales reports and analysis; (ii)
employee reports and analysis; customer job orders and profit margin data; businesses processes,
methods of operation and sales techniques; (iii) statistical information regarding the Company;
(iv) financial information of the Company and its customers that is not publicly available; (v)
specially negotiated terms and pricing with vendors and customers; and (vi) research and
development, business projects, strategic business plans, and strategies; products and solution
services offered to customers. Notwithstanding the foregoing, the Confidential Information shall
not include (a) any information which is or becomes publicly available other than as a result of
the wrongful action of Executive or his agents; (b)any information independently developed by
Executive subsequent to the Date of Termination; (c) any information made available to Executive
following the termination of Executive’s employment from a third party not known by Executive to be
under binder of confidentiality to the Company with regard thereto or (d) any information as to
which the Company specifically waives its rights hereunder pursuant to an instrument in writing.

     5.3 Agreement to Provide Confidential Information to Executive. The Company promises
to provide some or all of the Confidential Information described above to Executive without regard
to the duration of his continued employment with the Company. Executive agrees that the
Confidential Information belongs to the Company, is subject to the terms of this Agreement, and is
not his property.

     5.4 Works Made for Hire. Executive recognizes and agrees that all original works of
authorship, and all inventions, discoveries, improvements and other results of creative thinking or
discovery by Executive during the term of Executive’s employment, whether the result of individual
efforts or in acts in concert with others, arising in the scope of Executive’s employment,
utilizing in any way any of the Confidential Information, or otherwise relating to the Company’s
business, are and shall be “works made for hire” within the meaning of the United States copyright
laws, to the extent applicable thereto, and in all events shall be the sole and exclusive property
of the Company (collectively, the “Created Works”). Without limiting the generality of the
foregoing, the Created Works shall include all computer software, written materials, business
processes, compilations, programs, improvements, inventions, notes, copyrightable works made,
fixed, conceived, or acquired by Executive in the scope of Executive’s employment, utilizing in any
way any of the Confidential Information, or otherwise relating to the Company’s business. No part
of the definition of Created Works is intended to exclude the Created Works from being included
among the items constituting Confidential Information.

     5.5 Agreement to Return Confidential Information. At any time during employment, upon
demand by the Company, and within five (5) days of the termination of Executive’s employment for
any reason, regardless of which party initiates such termination, Executive promises to return all
property of the Company to the Company, including all copies of all or any part of the Confidential
Information or any summaries, extracts or derivative works thereof, in

13

 

good condition. Such property includes but is not limited to any Confidential Information
including Created Works constituting Confidential Information, and any of the Company’s tools of
trade.

     5.6 Assignment of Created Works. Executive hereby fully assigns to the Company all of
his or her right, title and interest in and to the Created Works and all aspects thereof, including
without limitation all rights to renewals, extensions, causes of action, reproduce, prepare
derivative works, distribute, display, perform, transfer, make, use and sell. Executive will, from
time to time during the term of this Agreement and thereafter, execute and deliver any documents,
agreements, certificates or other instruments affirming, giving effect to or otherwise perfecting
the Company’s rights in the Created Works and will provide such cooperation as the Company shall
reasonably request in connection with the protection, exploitation or perfection of its rights
therein anywhere in the world.

     5.7 Power of Attorney. If the Company is unable, after reasonable effort, to secure
Executive’s signature on any application for patent, copyright, trademark or other analogous
registration or other documents regarding any legal protection relating to a Created Work, whether
because of Executive’s physical or mental incapacity or for any other reason whatsoever, Executive
hereby irrevocably designates and appoints the Company and its duly authorized officers and agents
as his or her agent and attorney-in-fact, to act for and in Executive’s behalf and stead to execute
and file any such application or applications or other documents and to do all other lawfully
permitted acts to further the prosecution and issuance of patent, copyright or trademark
registrations or any other legal protection thereon with the same legal force and effect as if
executed by Executive.

     5.8 Disclosure of Inventions. Executive will promptly and without reservation fully
disclose any Created Works to the Company both during the term of employment and thereafter.

ARTICLE VI

NON-DISCLOSURE

     6.1 Non-Disclosure.

          (a) General Duty. Executive agrees that he will not directly or indirectly use any
Confidential Information, including without limitation the Company’s proprietary information,
trade secrets or the Created Works, for his or her own benefit or for the benefit of any third
party. Executive agrees that he will not directly or indirectly disclose any Confidential
Information, including without limitation Company’s proprietary information, trade secrets, or the
Created Works, to any person or entity who is not an employee of the Company unless previously
authorized to do so by the Company.

          (b) Special Exceptions. Notwithstanding the foregoing, to the extent that Executive
shall be required, by law or process of law, to disclose any Confidential Information, Executive
shall be entitled to do so only to the extent so required, subject to giving the Company prompt,
advance notice of such requirement so that the Company may pursue a protective order or other
remedy, and Executive acknowledges and agrees that he will

14

 

cooperate reasonably with the Company’s efforts to obtain a confidentiality order or similar
protection.

     6.2 Nature of Business.

          (a) Acknowledgment of Competitive Business. Executive acknowledges and agrees that
the Company is engaged in a highly competitive industry and must protect its Confidential
Information against unauthorized use or disclosure that would irreparably harm the Company’s
interests. Executive recognizes that the disclosure by the Company to Executive of certain of its
Confidential Information will be necessary and useful to Executive in the performance of his job
duties for the Company under this Agreement. As a result, Executive will have access to
Confidential Information that could be used by the Company’s competitors in a manner which would
irreparably harm the Company’s competitive position in the marketplace.

          (b) Acknowledgment of Need for Protection. Executive further acknowledges and agrees
that it would be virtually impossible for Executive to ignore all knowledge of the Company’s
Confidential Information if he were to engage in competition with the Company. It is, therefore,
reasonable and proper for the Company to protect against the intentional or inadvertent use of
such Confidential Information. Accordingly, Executive agrees that restrictions on soliciting the
Company’s customers or employees during his employment under this Agreement and for a reasonable
period of time thereafter are appropriate and necessary for the protection of the Company’s
Confidential Information, goodwill, and other legitimate business interests.

ARTICLE VII

NON-SOLICITATION AND NON-COMPETITION

     7.1 Non-Solicitation and Non-Competition. Ancillary to the agreements to provide
Executive with the Confidential Information as set forth above, and in order to aid in the
enforcement of those agreements, Executive agrees that, during the Term and for a period of two (2)
years after the termination of this Agreement (the “Prohibited Period”) for any reason, he
will:

          (a) refrain from carrying on or engaging in the Business in the Restricted Area. Executive
agrees and covenants that, because the following conduct would effectively constitute carrying on
or engaging in the Business, he will not, and he will cause his affiliates not to, in the
Restricted Area during the Prohibited Period: directly or indirectly, own, manage, operate, join,
become an employee of, control or participate in or be connected with any business, individual,
partnership, firm, corporation or other entity which engages in the Business;

          (b) refrain from, and cause his affiliates to refrain from, soliciting or causing to be
solicited any customer of the Company that was a customer of the Company in the Restricted Area
during the period in which Executive was employed by the Company; and

15

 

          (c) refrain from, and cause his affiliates to refrain from, engaging or employing or
soliciting or contacting with a view to the engagement or employment of, any person who is an
officer or employee of the Company.

     7.2 Exception for Equity Ownership. Notwithstanding the restrictions contained in
Section 7.1 above, Executive or any of his affiliates may own (i) less than five percent
(5%) of any equity security registered under the Securities Exchange Act of 1934, as amended, in
any entity engaged in the Business, provided that neither Executive nor his affiliates has the
power, directly or indirectly, to control or direct the management or affairs of any such
corporation and is not involved in the management of such corporation, and (ii) those equity
investments owned by Executive as of the date of this Agreement as previously disclosed to and
agreed by the Board.

     7.3 Exception Within Oklahoma. Notwithstanding the restrictions contained in
Section 7.1 above, within those areas of the State of Oklahoma that are within the
Restricted Area (the “Oklahoma Restricted Area”), Executive shall be permitted to engage in
the Business after his employment with the Company has ended but before the Prohibited Period has
expired; provided, however, that at no point during the Prohibited Period shall Executive, within
the Oklahoma Restricted Area, solicit the goods, services or a combination of goods and services
from any established customer of the Company.

ARTICLE VIII

SURVIVAL OF COVENANTS, ENFORCEMENT OF COVENANTS AND REMEDIES

     8.1 Survival of Covenants. Executive acknowledges and agrees that his covenants in
Articles V, VI, and VII of this Agreement shall survive the termination of this
Agreement, and the existence of any claim or cause of action of Executive against the Company
whether predicated on this Agreement or otherwise shall not constitute a defense to the enforcement
by the Company of those covenants.

     8.2 Enforcement of Covenants. Executive acknowledges and agrees that his covenants in
Articles V, VI, and VII of this Agreement are, among other things, ancillary to the
otherwise enforceable agreements to provide Executive with Confidential Information and are
supported by independent, valuable consideration. Executive further acknowledges and agrees that
the limitations as to time, geographical area, and scope of activity to be restrained by those
covenants are reasonable and acceptable to Executive and do not import any greater restraint than
is reasonably necessary to protect the Company’s goodwill and other legitimate business interests.
Executive further agrees that if, at some later date, a court of competent jurisdiction determines
that any of the covenants in Articles V, VI or VII are unreasonable, any such
covenants shall be reformed by the court and enforced to the maximum extent permitted under the
law.

     8.3 Remedies. In the event of actual or threatened breach by Executive of any of his
covenants in Articles V, VI, and VII of this Agreement, the Company may be entitled
to equitable relief by temporary restraining order, temporary injunction, or permanent injunction
or otherwise, in addition to all other legal and equitable relief to which it may be entitled,
including any and all monetary damages that the Company may incur as a result of said breach,
violation,

16

 

or threatened breach or violation. The Company may pursue any remedy available to it
concurrently or consecutively in any order as to any breach, violation, or threatened breach or
violation, and the pursuit of one of such remedies at any time will not be deemed an election of
remedies or waiver of the right to pursue any other of such remedies as to such breach, violation,
or threatened breach or violation, or as to any other breach, violation, or threatened breach or
violation. In addition to the above, in the case of a threatened material breach, in the event
that a final judicial determination concludes that Executive has so breached any of his covenants
in Articles V, VI, or VII of this Agreement, the Company will be entitled to
reimbursement by Executive of all severance payments paid by the Company under this Agreement
during the period of any such breach. In the event of an alleged actual material breach by
Executive of any of his covenants in Articles V, VI, and VII of this Agreement, as
determined in good faith by the Board, the Company may suspend the payments and benefits then owing
to Executive under this Agreement without resort to judicial intervention until such breach is
cured (if curable); provided, however, that if it is later determined, whether judicially or
otherwise by the Board, that Executive was not in material breach of such covenants, the Company
shall promptly pay to Executive all such suspended payments and benefits, as well as reimbursement
of all reasonable costs and expenses (including attorneys fees) incurred by Executive in defending
any such claim or action in accordance with Section 9.11; provided, however, that any cure
and payments upon cure and any payments upon a judicial determination that no breach occurred will
be made no later than the deadline under Section 409A of the Code that is applicable to disputed
payments and refusals to pay.

     8.4 Indemnification. In any situation where under applicable law the Company has the
power to indemnify, advance expenses to and defend Executive in respect of any judgments, fines,
settlements, loss, cost or expense (including attorneys fees) arising from bona fide claims 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.

ARTICLE IX

MISCELLANEOUS

     9.1 Entire Agreement. This Agreement constitutes the entire agreement between the
parties concerning the Agreement’s subject matter and supersedes all prior agreements and
understandings, both written and oral, between the parties with respect to its subject matter.

     9.2 Modification; Amendment. This Agreement may not be modified or amended in any
respect except by an instrument in writing signed by the party against whom such modification or
amendment is sought to be enforced. No modification or amendment may be

17

 

enforced against the Company unless such modification or amendment is in writing and
authorized by the Board.

     9.3 No Waiver. The waiver by either party of a breach of any term of this Agreement
shall not operate or be construed as a waiver of a subsequent breach of the same provision by
either party or of the breach of any other term or provision of this Agreement.

     9.4 Remedies; Governing Law; Jurisdiction. This Agreement and performance under it,
and the exclusive venue for all proceedings that may ensue from its breach, shall be in Harris
County, Texas and construed in accordance with the laws of the State of Texas. In the event of a
breach or threatened breach by either Executive or the Company of any provision of this Agreement,
the non-breaching party shall be entitled to a temporary restraining order and an injunction
restraining the breaching party from the commission or threatened commission of such breach.
Nothing in this Agreement, however, precludes the Company from seeking to remove a civil action
from any state court to federal court. Nothing herein shall be construed as prohibiting either
Executive or the Company from pursuing any other remedies available to it for such breach or
threatened breach, including the recovery of money damages.

     9.5 Executive’s Representation. Executive represents and warrants that he is free to
enter into this Agreement and to perform each of the terms and covenants of it. Executive
represents and warrants that he is not restricted or prohibited, contractually or otherwise, from
entering into and performing this Agreement, and that his execution and performance of this
Agreement is not a violation or breach of any other agreement between Executive and any other
person or entity. Employee acknowledges and agrees that (i) he is not relying upon any
determination by the Company, its affiliates, or any of their respective employees, directors,
officers, attorneys or agents (collectively, the “Company Parties”) regarding the tax effects
associated with Employee’s execution of this Agreement and (ii) in deciding to enter into this
Agreement, Employee is relying on his own judgment and the judgment of the professionals of his
choice with whom he has consulted. Employee hereby releases, acquits and forever discharges the
Company Parties from all actions, causes of action, suits, debts, obligations, liabilities, claims,
damages, losses, costs and expenses of any nature whatsoever, whether known or unknown, on account
of or arising out of, or in any way related to the tax effects associated with Employee’s execution
of this Agreement.

     9.6 The Company’s Representation. The Company represents and warrants that it is free
to enter into this Agreement and to perform each of the terms and covenants of it. The Company
represents and warrants that it is not restricted or prohibited, contractually or otherwise, from
entering into and performing this Agreement, and that its execution and performance of this
Agreement is not a violation or breach of any other agreement between the Company and any other
person or entity. The Company represents and warrants that this Agreement is a legal, valid and
binding agreement of the Company, enforceable in accordance with its terms.

     9.7 Notices. All notices and other communications under this Agreement shall be in
writing and shall be given in person or by either personal delivery, facsimile with confirmation of
receipt, overnight delivery, or first class mail, certified or registered with return receipt
requested, with postal or delivery charges prepaid, and shall be deemed to have been duly given

18

 

when delivered personally, or three days after mailing first class, certified or registered
with return receipt requested, to the respective persons named below:

	 	 	 

	     If to the Company:

	 	C& J Energy Services, Inc.
	 

	 	500 North Shoreline Blvd., Suite 350
	 

	 	Corpus Christi, TX 78401
	 

	 	Attention: Randy McMullen
	 
	 	 
	     If to Executive:

	 	Brett Barrier
	 

	 	5605 Havre St.
	 

	 	Corpus Christi, TX 78414

     9.8 Tax Withholding. The Company may withhold from any amounts payable under this
Agreement such federal, state or local taxes as shall be required to be withheld pursuant to any
applicable law or regulation.

     9.9 Severability. If any provision of this Agreement is held to be illegal, invalid,
or unenforceable, (a) this Agreement shall be considered divisible, (b) such provision shall be
deemed inoperative to the extent it is deemed illegal, invalid, or unenforceable, and (c) in all
other respects this Agreement shall remain in full force and effect.

     9.10 Assignment. The rights and obligations of the parties under this Agreement shall
be binding upon and inure to the benefit of their respective successors, assigns, executors,
administrators and heirs; provided, however, that neither the Company nor Executive may assign any
duties under this Agreement without the prior written consent of the other.

     9.11 Attorneys’ Fees and Other Costs. If either party breaches this Agreement, or if
a dispute arises between the parties based on or involving this Agreement, the party that prevails
in the resolution of such dispute, is entitled to recover from the other party its reasonable
attorneys’ fees, court costs, and expenses incurred in enforcing such rights or resolving such
dispute. For purposes of this Section 9.11, the finder of fact shall be requested to
answer affirmatively as to whether a party “prevailed” in order to recoup attorneys’ fees and other
costs pursuant to this Section 9.11.

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

     9.13 Section 409A.

          (a) General. Any compensation or benefits made to Executive under the terms of this
Agreement (as described above) may constitute nonqualified deferred compensation for purposes of
Section 409A. Accordingly, notwithstanding any provision contained herein, this Agreement shall be
interpreted in a manner that is consistent with Section 409A and the regulatory guidance issued
thereunder. In the event that any provision of this Agreement conflicts with Section 409A or the
regulatory guidance issued thereunder, such provision is to

19

 

that extent superseded by the applicable Section 409A standards for nonqualified deferred
compensation plans to satisfy the requirements of Section 409A.

          (b) General Suspension of Payments. Notwithstanding any contrary provisions in this
Agreement, if Executive is a “specified employee,” as such term is defined within the meaning of
Section 409A, as determined by policies established by the Company’s Board, any payments or
benefits which are classified as “nonqualified deferred compensation” for purposes of Section 409A
and are payable or provided as a result of Executive’s termination of employment that would
otherwise be paid or provided within six months and one day of such termination (other than due to
death or “disability”, as such term is defined within the meaning of Section 409A) shall instead be
paid or provided on the earlier of (i) six months and two days following Executive’s termination,
(ii) the date of Executive’s death, or (iii) any date that otherwise complies with Section 409A. In
the event that Executive is entitled to receive payments during the suspension period provided
under this Section, Executive shall receive the accumulated benefits that would have been paid or
provided under this Agreement within the six month and one day suspension period on the earliest
day that would be permitted under Section 409A.

          (c) Separation from Service. For all purposes of this Agreement, Executive shall be
considered to have terminated employment with the Company when Executive incurs a “separation from
service” with the Company within the meaning of Section 409A(a)(2)(A)(i) of the Code and applicable
administrative guidance issued thereunder; provided, however, that whether such a separation from
service has occurred shall be determined based upon a reasonably anticipated permanent reduction in
the level of bona fide services to be performed to no more than twenty percent (20%) of the average
level of bona fide services provided in the immediately preceding thirty-six (36) months.

          (d) Reimbursement Payments. The following rules shall apply to payments of any amounts
under this Agreement that are treated as “reimbursement payments” under Section 409A, including,
but not limited to, any payments provided under Section 4.3: (i) the amount of expenses
eligible for reimbursement in one calendar year shall not limit the available reimbursements for
any other calendar year; (ii) Executive shall file a claim for all reimbursement payments not later
than thirty (30) days following the end of the calendar year during which the expenses were
incurred, (iii) the Company shall make such reimbursement payments within thirty (30) days
following the date Executive delivers written notice of the expenses to the Company; and (iv)
Executive’s right to such reimbursement payments shall not be subject to liquidation or exchange
for any other payment or benefit.

          (e) Separate Payments. For purposes of Section 409A, any right to a series of
installment payments under this Agreement shall be treated as a right to a series of separate
payments so that each payment is designated as a separate payment for purposes of Section 409A, and
any rights and benefits under this Agreement shall be treated as rights to separate payments for
purposes of Section 409A.

          (f) Amendment. In the event that the Company determines that any amounts payable
hereunder will be taxable to Executive under Section 409A or the regulatory guidance issued
thereunder prior to payment to Executive, then the Company may (i) adopt amendments

20

 

to this Agreement, including amendments with retroactive effect, that the Company determines
necessary or appropriate to preserve the intended tax treatment of the benefits provided hereunder
and/or (ii) take such other actions as the Company determines necessary or appropriate to avoid the
imposition of tax under Section 409A.

     9.14 Prior Employment Agreement Superseded. Upon the Effective Date, any and all
prior employment agreements between the Company and Executive, shall be of no further force or
effect and this Agreement shall supersede all such prior agreements. The Company shall consult
with Executive in good faith regarding the implementation of the provision of this Section
9.14; provided that none of the Company Parties shall have any liability to Executive with
respect thereto.

     9.15 Limitation. Subject to the termination provisions contained herein, this
Agreement shall not confer any right or impose any obligation on the Company to continue the
employment of Executive in any capacity or limit the right of the Company or Executive to terminate
Executive’s employment.

     9.16 Provisions Regarding Effective Date. As indicated in this Agreement, this
Agreement is effective as of the Effective Date, and accordingly in connection therewith the
parties agree that the following shall apply:

          (a) This Agreement shall from and after its execution by the parties be an agreement binding
upon and enforceable by both the Company and Executive subject to the application of the
provisions hereof generally being effective as of the Effective Date.

          (b) In the event that the employment of Executive by the Company terminates at any time prior
to the Effective Date, this Agreement shall be null and void and of no force and effect.

          (c) In the event that the Effective Date does not occur, this Agreement shall be null and
void and of no force and effect.

[Signature Page Follows]

21

 

     IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the day and year
indicated above.

	 	 	 	 	 
	 	COMPANY:

C&J ENERGY SERVICES, INC.

 	 
	 	By:  	/s/ Randy McMullen
 	 
	 	 	Name:  	Randy McMullen 	 
	 	 	Title:  	Executive Vice President, Chief Financial
Officer, Secretary and Treasurer 	 
	 
	 	EXECUTIVE:

 	 
	 	/s/ Brett Barrier
 	 
	 	BRETT BARRIER 	 
	 	 	 

 

 

	 	 	 	 	 

EXHIBIT A

RESTRICTED AREAS

Louisiana Parishes of:

Bienville

Bossier

Caddo

Caldwell

Claiborne

DeSoto

Jackson

Lincoln

Natchitoches

Red River

Sabine

Webster

Winn

State of Oklahoma

State of Texas

 

 

EXHIBIT B

FORM OF STOCK OPTION AGREEMENT

(See Attached)exv10w10

Exhibit 10.10

EMPLOYMENT AGREEMENT

     This Employment Agreement (the “Agreement”) is made by and between C&J Energy
Services, Inc., a Delaware corporation (the “Company”), and Theodore R. Moore
(“Executive”), dated the 19th January, 2011, but deemed effective as of February
1, 2011 (the “Effective Date”).

RECITALS

     WHEREAS, the Company desires to employ Executive on the terms and conditions and for the
consideration hereinafter set forth, and Executive desires to be employed by the Company on such
terms and conditions and for such consideration;

     WHEREAS, both the Company and Executive have read and understood the terms of this Agreement,
and have been afforded a reasonable opportunity to review this Agreement with their respective
legal counsel.

     NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this
Agreement, the parties hereto agree as follows, effective as of the Effective Date:

AGREEMENT

ARTICLE I

DEFINITIONS

     1.1 Certain Definitions. For purposes of this Agreement, the following terms shall have the
meanings specified or referred to in this Section 1.1:

          (a) “Accrued Obligation” shall mean the sum of (1) Executive’s Base Salary earned through the
Date of Termination and (2) any accrued vacation pay earned by Executive, in both cases, to the
extent not theretofore paid.

          (b) “Business” shall mean any business in which the Company is, as of the Date of
Termination, engaged or has undertaken material substantive steps to engage within the twelve (12)
month period prior to the Date of Termination, which currently includes the well completion and
servicing business (including the provision of services such as hydraulic fracturing, coiled
tubing, and pressure pumping).

          (c) “Cause” shall mean Executive’s (i) willful and continued failure to substantially
perform, without proper legal justification or due to reasons beyond Executive’s control, the
duties required under any written employment agreement between Executive and the Company or any
affiliate of the Company or as otherwise reasonably required by the Board or Chief Executive
Officer (“CEO”) of the Company in the course of his duties; (ii) conviction, admission or
plea of guilty or nolo contendere to a charge of felony, or any dishonest conduct materially
adverse to the Company or any affiliate of the Company, including any theft, embezzlement,
misappropriation or misuse of funds or property, fraud or falsification of records, correspondence
or other documents; (iii) any material breach of any of the terms of, or

 

 

failure to perform any of his covenants contained in any written employment agreement between
Executive and the Company or any affiliate of the Company; and (iv) material violation or failure
to abide by the lawful instructions, policies or workplace rules established by the Company or any
affiliate of the Company.

          (d) “Change of Control” shall mean any of the following:

          (i) any “person” (as such term is used in Section 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)), other than a Permitted Holder,
acquires “beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act of
securities of the Company representing more than fifty percent (50%) of the combined voting
power of the Company’s then outstanding securities; provided, however, that if the Company
engages in a merger or consolidation in which the Company or surviving entity in such merger
or consolidation becomes a subsidiary of another entity, then references to the Company’s
then outstanding securities shall be deemed to refer to the outstanding securities of such
parent entity;

          (ii) a change in the composition of the Board as a result of either (1) an actual or
threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A
promulgated under the Exchange Act) or (2) an actual or threatened solicitation of proxies
or consents by or on behalf of a person other than the Board, in either case which results
in individuals other than individuals who were directors before such contest or solicitation
comprising a majority of the members of the Board;

          (iii) the consummation of a merger or consolidation of the Company with any
corporation, including without limitation, a reverse or forward triangular merger, and
Company’s shareholders prior to such transaction own less than a majority of the 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 or its respective affiliates or a Permitted Holder for the
ownership of more than fifty percent (50%) or more of the Company’s voting securities;

          (v) the sale or disposition (other than a pledge or similar encumbrance) by the Company
of all or substantially all of the assets of the Company other than to a subsidiary or
subsidiaries of the Company or to a Permitted Holder;

          provided, that for purposes of this definition, a transaction or event described in
paragraph (i), (ii), (iii), (iv) and (v) shall constitute a “Change of Control” only if such
transaction or event constitutes a “change of control event,” as defined in Treasury
Regulation Section 1.409A-3(i)(5), with respect to Executive.

          (e) “Change of Control Period” shall mean the period beginning on the effective date of the
Change of Control and ending on the two (2) year anniversary of such Change in Control.

2

 

               (f) “Code” shall mean the Internal Revenue Code of 1986, as amended.

               (g) “Date of Termination” shall mean the effective date of termination of Executive’s
employment hereunder, as specified in the applicable Notice of Termination.

               (h) “Good Reason” shall mean Executive’s written notice to the Company of his resignation
upon the occurrence of any one of the following events without Executive’s consent: (i) permanent
relocation of the primary place of Executive’s employment more than fifty (50) miles outside the
Houston metropolitan area without the prior written consent of Executive; (ii) a material
reduction in Executive’s then effective Base Salary, or (iii) a material breach by the Company of
this Agreement other than any change in Executive’s authority, responsibility, and/or office;
provided that such event(s) shall constitute Good Reason only to the extent set forth in
Section 4.1(b).

               (i) “Permanent Disability” shall mean the sickness or disability that renders a Person
incapable of performing his duties under any employment or consulting agreement between such
Person and the Company or any Subsidiary of the Company for a period in excess of six (6) months
during any consecutive twelve (12) month period.

               (j) “Permitted Holder” shall mean (i) any of StepStone Capital Partners II Onshore, L.P.,
StepStone Capital Partners II Cayman Holdings, L.P., 2006 Co-Investment Portfolio, L.P., Citigroup
Capital Partners II Employee Master Fund, L.P., Energy Spectrum Partners IV LP or any of their
respective affiliates, (ii) any trustee or other fiduciary holding securities under an employee
benefit plan of the Company or any of its affiliates, and (iii) any affiliate of the Company or
any corporation, partnership, limited liability company or other entity owned, directly or
indirectly, by the stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company.

               (k) “Restricted Area” shall mean those geographic areas where the Company conducts, as of the
Date of Termination, the Business, including those parishes, counties and other areas specified on
Exhibit “A”, and any additional areas in which the Company has taken material substantive steps in
preparation to conduct the Business and of which Executive is aware during the Term.

               (l) “Section 409A” shall mean Section 409A of the Code and the final Department of Treasury
regulations issued thereunder.

               (m) “Separation from Service” shall have the meaning ascribed to such term in Section 409A.

ARTICLE II

DUTIES

     2.1 Duties. During the term of this Agreement, Executive shall serve the Company as
Vice President — General Counsel and Corporate Secretary as the Board of Directors of the Company
(the “Board”) and Executive shall mutually agree. Executive shall report to the Board, CEO, and Executive Vice President of the Company. Executive shall comply with the policies of
the Company as may be in effect from time to time for executive officers, including, without

3

 

limitation, the Company’s policies regarding confidentiality, ownership of intellectual property,
drug testing, discrimination and harassment, and ethical conduct. Executive shall have such
duties, authorities and responsibilities commensurate with the duties, authorities and
responsibilities of a person in similar capacities in a similarly sized company and such other
duties and responsibilities as the Board shall designate that are consistent with Executive’s
position as Vice President — General Counsel and Corporate Secretary.

     2.2 Extent of Duties. Subject to the use of vacation, holiday and other approved
leave time, Executive shall devote substantially all of his business time, energy and efforts to
the affairs of the Company as the Company, acting through its Board, shall reasonably deem
necessary in the discharge of Executive’s duties hereunder and not to engage, directly or
indirectly, in any other business or businesses, whether or not similar to that of Company, except
with the consent of the Board or as otherwise permitted by this Section 2.2. Executive
agrees to serve in the positions referred to in Section 2.1 and to perform diligently and
to the best of his abilities the duties and services appertaining to such offices, as well as such
additional duties and services appropriate to such offices which the parties mutually may agree
upon from time to time. Notwithstanding the foregoing, nothing herein shall prevent Executive from
participating in social, civic, charitable, religious, business, educational or professional
associations, or the passive management of Executive’s personal investments, so long as such
activities do not materially detract from Executive’s ability to perform his duties under this
Agreement or otherwise violate the provisions of this Agreement. Without limiting the foregoing,
in the event that Executive desires to participate personally in any business opportunity that is
reasonably related to the Company’s business, Execute shall not participate in such opportunity
without first making full disclosure to the Board of such opportunity and the scope of Executive’s
proposed involvement. Notwithstanding the foregoing, Executive acknowledges his fiduciary duties
to the Company and shall not appropriate any Company business opportunity for himself in violation
of such fiduciary duties.

ARTICLE III

TERMS OF EMPLOYMENT

     3.1 Employment Period. Unless sooner terminated pursuant to the terms and conditions
of this Agreement, Executive’s employment pursuant to this Agreement shall commence on the
Effective Date and end on the third anniversary of the Effective Date (the “Term,” which
shall include any extensions thereof pursuant to this Section 3.1); provided, however, that
on the third anniversary of the Effective Date and on each anniversary thereafter (each an
“Extension Date”), if Executive’s employment under this Agreement has not been terminated
pursuant to Article IV, the Term shall automatically extend for successive one (1) year
periods unless on or before the date that is sixty (60) days prior to the Extension Date, the
Company or Executive provides the other party hereto written notice (a “Notice of
Non-Renewal”) that the Term shall not be so extended.

     3.2 Annual Base Compensation. As compensation for services rendered under this
Agreement, Executive shall be entitled to receive from the Company a minimum annual base salary
(before standard deductions) of $250,000 (“Base Salary”). Executive’s Base Salary shall be reviewed by the Board on an annual basis and, in the Board’s discretion, may be increased;
provided, however, that Executive’s Base Salary shall not be decreased without the written

4

 

consent of Executive. Executive’s Base Salary shall be payable in arrears at regular intervals
(but no less frequently than monthly) in accordance with the prevailing practice and policies of
the Company.

     3.3 Annual Bonus.

          (a) Executive shall be eligible to receive an annual bonus (“Annual Bonus”) for each
full calendar year beginning on the Effective Date that he is employed with the Company during the
Term (each such calendar year, a “Bonus Year”) in which the Company achieves certain
targets as set forth by the Compensation Committee, and the amount of such bonus shall have a
target range of 25% to 50% of Executive’s Base Salary for the applicable Bonus Year; provided
that, for the avoidance of doubt, Executive shall not be entitled to an Annual Bonus for any Bonus
Year, unless the Compensation Committee determines otherwise, in which the Company does not
achieve such targets, as determined by the Compensation Committee, and provided, further, that
Executive shall not be entitled to any Annual Bonus if Executive is terminated by the Company for
Cause prior to the date of payment of such Annual Bonus. The Annual Bonus will be paid between
January 1 and March 15 of the calendar year immediately following the Bonus Year (the “Payment
Date”); provided, however, that if the Company’s accountants have not delivered the audited
financial statements for such Bonus Year prior to the Payment Date, the Company may delay the
Payment Date until the earlier to occur of (i) three (3) days following the Company’s receipt of
such Bonus Year’s audited financial statements and (ii) June 30 of the calendar year immediately
following the Bonus Year. Notwithstanding the foregoing, the Company shall use its best efforts
to ensure delivery of its audited financial statements for each Bonus Year on or before March 15
of the following calendar year. Each Bonus Year during the Term, the Compensation Committee will
review the structure of the targets provided by it for the preceding Bonus Year and establish the
targets for the Bonus Year as it deems appropriate.

          (b) In addition to the Annual Bonus, Executive shall be eligible for additional incentive
bonus compensation in the sole discretion of the Board, sitting without Executive (the
“Discretionary Bonus” and together with the Annual Bonus, the “Bonuses”). The
frequency, amount, and payment terms of any Discretionary Bonus shall be left to the exclusive
discretion of the Board (sitting without Executive).

     3.4 Benefits. The Company agrees to provide Executive and Executive’s eligible family
members with the employment benefits that the Company ordinarily provides to similarly situated
employees, subject to the terms and conditions of the applicable benefit programs and plans.
Executive, at Executive’s election, shall be eligible to participate in any and all employee
benefit plans (including, but not limited to, medical and dental insurance, retirement plans,
disability insurance and life insurance) implemented by the Company from time to time for its
executive employees and their families. Such employment benefits shall be governed by the
applicable plan documents, insurance policies, and/or employment policies, and may be modified,
suspended, or revoked in accordance with the terms of the applicable documents or policies. In
addition to those benefits, the Company agrees to provide or cause to provide the
following benefits upon satisfaction by Executive of any eligibility requirements, subject to
the following limitations:

5

 

          (a) Sick-Leave Benefits and Disability Insurance. To the extent made available to
other employees of the Company, and unless this Agreement is terminated pursuant to Article
IV, Executive shall be paid sick leave benefits at his then prevailing Base Salary rate during
his absence due to illness or other incapacity; provided, however, that any sick-leave benefits
will be reduced by the amount, if any, of worker’s compensation, Social Security entitlement, or
disability benefits, if any, under the Company’s insurance policies or group employee welfare
benefit plans, if any.

          (b) Vacations. The Company shall provide Executive with vacation consistent with
company policy, but not less than twenty (20) business days paid vacation per calendar year during
his employment under this Agreement (“Vacation Days”). Any unused Vacation Days shall
carry over to the following year, but shall only remain valid for a period of one (1) year. The
Company also agrees to provide Executive with all paid holidays ordinarily given by the Company to
its employees.

     3.5 Equity Incentives. As a long term incentive, not later than March 15 of each year
during the Term beginning 2012, Executive shall be eligible to receive options to acquire such
number of shares of Company’s common stock as determined by the Compensation Committee. Such
options shall be granted as a long-term incentive pursuant to the Company’s 2010 Stock Incentive
Plan and/or such other applicable equity incentive plan(s) then in effect (the “Plan”). Subject to
all terms, conditions and provisions and obligations of, and only upon execution of, the Option
Agreement attached hereto as Exhibit “B” (the “Option Agreement”), issued pursuant to the Plan,
effective as of the Effective Date, Executive shall be granted options to purchase 40,000 shares of
the Company’s common stock. Vesting for the options granted pursuant to the Option Agreement shall
occur over a three-year period with 1/3 of such options vesting on each of the first, second, and
third anniversaries of the date of grant and shall accelerate in accordance with Sections
4.3(b)(2) and (c)(2). The terms of the Option Agreement shall govern and control any
conflict between the terms of this Agreement and the terms of the Option Agreement.

     3.6 Other Benefits.

          (a) During the Term of the Agreement, Executive shall be entitled to fringe benefits and
perquisites as determined by the Board, but which shall include an automobile and related
insurance coverage for Executive’s use which is commensurate with Executive’s position, title and
duties with the Company.

          (b) Executive is authorized to incur ordinary, necessary, and reasonable business expenses in
connection with the performance of his duties, responsibilities, and authorities under this
Agreement and for the promotion of the Company’s business and activities during this Agreement,
including but not limited to expenses for necessary travel and entertainment and other items of
expense required in the normal and routine course of Executive’s employment under this Agreement.
The Company will reimburse Executive from time to time for all such business expenses actually
incurred pursuant to and in conformity with this subsection and the policies and practices of the
Company then in effect relative to the reimbursement of business expenses.

6

 

ARTICLE IV

TERMINATION

     4.1 Termination of Employment:

          (a) Termination by Company for Cause. The Company may terminate this Agreement at
any time, without any further liability to Executive, for any Cause. If the Company believes
Cause exists for terminating this Agreement pursuant to this paragraph, it shall give Executive
written notice of the acts or omissions constituting Cause in its Notice of Termination and this
Agreement shall terminate immediately upon provision of such notice; provided, however, that if
such acts or omissions are of the type described in Section 1.1(c)(i), (iii) or
(iv), no termination of this Agreement shall be effective unless and until Executive fails
to cure such acts or omissions, if curable (as determined by the Company in its reasonable
discretion), within ten (10) days after receiving such notice.

          (b) Termination by Executive for Good Reason. Executive may terminate Executive’s
employment under this Agreement for Good Reason. Executive shall provide notice of any reduction,
failure, change or breach upon which Executive intends to rely as the basis for a Good Reason
resignation within thirty (30) days of the occurrence of such event. The Company shall have
thirty (30) days following the receipt of such notice to remedy the condition constituting such
reduction, change or breach and, if so remedied, any resignation by Executive on the basis of the
circumstances described in such notice shall not be considered a Good Reason resignation. If the
Company does not remedy the condition that has been the subject of a notice during the designated
thirty (30) day remedy period, Executive must terminate his employment within one hundred twenty
(120) days following the occurrence of such condition, and provide a Notice of Termination in
accordance with Section 4.2, in order for such termination to be considered for Good
Reason for purposes of this Agreement.

          (c) Termination by Company without Cause or by Executive Other than for Good Reason.
The Company may terminate Executive’s employment under this Agreement without Cause, and Executive
may terminate this Agreement other than for Good Reason. Any termination of Executive’s
employment by Executive without Good Reason shall be made by the provision of at least thirty (30)
days prior written notice to the Company in accordance with Section 4.2. Any termination
of Executive’s employment by Company without Cause other than a notice of non-renewal of the Term
pursuant to Section 3.1 shall be made by the provision of at least fourteen (14) days
prior written notice to Executive in accordance with Section 4.2. For the avoidance of
doubt, the Company’s non-renewal of the Term pursuant to Section 3.1 will not constitute a
termination by Company without Cause for purposes of this Article IV.

          (d) Change of Control Termination. A termination of Executive’s employment by
Company without Cause, by Executive for Good Reason or by the Company not electing to extend the
Term of Executive’s employment during a Change of Control Period shall be subject to the
provisions of Section 4.3(c).

7

 

          (e) Termination on Death or Permanent Disability. This Agreement shall automatically
terminate on Executive’s death or upon the provision to Executive of notice of the Company’s
determination of his Permanent Disability.

     4.2 Notice of Termination. Any termination by the Company or Executive pursuant to
Sections 4.1(a), (b), (c), (d) or (e) (in the case of Executive’s Permanent
Disability only) shall be communicated by a “Notice of Termination” to the other party
hereto. The failure by Executive or the Company to set forth in the Notice of Termination any fact
or circumstance which contributes to a showing of Good Reason, Cause or Permanent Disability shall
not waive any right of Executive or the Company hereunder or preclude Executive or the Company from
asserting such fact or circumstance in enforcing Executive’s or the Company’s rights hereunder.

     4.3 Obligations of the Company Upon Termination:

          (a) Termination by the Company for Cause or by Executive Other than for Good Reason.
If the Company terminates Executive for Cause or if Executive resigns his employment other than
for Good Reason, Executive shall be entitled only to the payment of (i) the Accrued Obligation and
(ii) unreimbursed expenses.

          (b) Termination by Executive for Good Reason or by the Company Other Than for Cause,
Death or Permanent Disability or for Non-Renewal of Term Not During a Change of Control
Period. If, at any time other than during the Change of Control Period, Executive terminates
this Agreement during the Term for Good Reason, the Company terminates Executive’s employment
during the Term other than for Cause, death or Permanent Disability, or the Company provides a
Notice of Non-Renewal pursuant to Section 3.1, Executive shall be entitled to receive (i)
payment of the Accrued Obligation and any unreimbursed expenses and (ii) any unpaid Bonuses owed
to Executive for a previous calendar year due pursuant to the terms and conditions of Section
3.3. In addition, subject to Executive’s delivery, within fifty (50) days after the Date of
Termination, and non-revocation of an executed release in form and substance customary for
releases of this nature and reasonably satisfactory to the Company (which shall release and
discharge the Company and its affiliates, and their respective partners, officers, directors,
employees, agents, shareholders and employee benefit plans from any and all claims or causes of
action of any kind or character, including but not limited to all claims or causes of action
arising out of Executive’s employment with the Company or its affiliates or the termination of
such employment, other than any vested accrued benefits under such plans, rights to
indemnification pursuant to the Certificate of Incorporation and/or Bylaws of the Company or under
applicable law, and rights of Executive to the post-termination benefits pursuant to this
Agreement) (the “Release”) and compliance with Articles V, VI and VII,
Executive shall also be entitled to receive:

          (1) if Executive’s Date of Termination was after June 30 of a year, a pro rata payment
of the Annual Bonus for such calendar year of termination, determined pursuant to the terms
and conditions of Section 3.3;

          (2) any and all stock options awarded to Executive under any plan not previously
exercisable and vested shall become fully exercisable and vested;

8

 

          (3) salary continuation severance payments based on Executive’s Base Salary as in
effect on the Date of Termination continuing for ninety (90) days from the Date of
Termination (“Severance Period”), payable in equal monthly installments in
accordance with normal payroll practices; and

          (4) a lump sum payment of an amount equal to all Consolidated Omnibus Budget
Reconciliation Act (“COBRA”) premiums that would be payable during the Severance
Period, assuming Executive and his dependents who were then enrolled elected continuation
coverage under the Company’s group health plans as in effect, and at the applicable COBRA
rates, as of the Date of Termination;

provided, however, that, notwithstanding anything to the contrary herein, if the termination of
this Agreement is by reason of the Company providing a Notice of Non-Renewal, the salary
continuation payments provided for in Section 4.3(b)(3) shall continue for twelve (12)
months if the Term ends on the third anniversary of the Effective Date, six (6) months if the Term
ends on the fourth anniversary of the Effective Date, and three (3) months (or such longer period
of time as may be provided under any severance policy or program of the Company) if the Term ends
on or after the fifth anniversary of the Effective Date.

          (c) Change of Control Termination. If, during the Change of Control Period, the
Company terminates Executive’s employment without Cause, Executive resigns his employment for Good
Reason, or the Company provides a Notice of Non-Renewal pursuant to Section 3.1, Executive
shall be entitled to receive (i) payment of the Accrued Obligation and any unreimbursed expenses
and (ii) any unpaid Bonuses owed to Executive for a previous calendar year due pursuant to the
terms and conditions of Section 3.3 of this Agreement. In addition, subject to
Executive’s delivery, within (fifty) 50 days after the Date of Termination, and non-revocation of
an executed Release and compliance with Articles V, VI and VII, Executive shall
also be entitled to receive:

          (1) if Executive’s date of Termination was after June 30 of a year, a pro rata payment
of the Annual Bonus for such calendar year of termination, determined pursuant to the terms
and conditions of Section 3.3;

          (2) any and all stock options awarded to Executive under any plan not previously
exercisable and vested shall become fully exercisable and vested;

          (3) an amount equal to Executive’s Base Salary as in effect on the Date of Termination
for the longer of (A) the remaining Term or (B) two (2) years from the Date of Termination,
payable in six (6) equal monthly installments in accordance with normal payroll practices;

          (4) a lump sum payment of an amount equal to all COBRA premiums that would be payable
during the Severance Period, assuming Executive and his dependents who were then enrolled
elected continuation coverage under the Company’s group health plans as in effect, and at the applicable COBRA rates, as of the Date of
Termination.

9

 

          (d) Termination on Death or Permanent Disability. If Executive’s employment is
terminated by reason of Executive’s death or Permanent Disability during the Term, this Agreement
shall terminate without further obligations to Executive, other than for (i) payment of the
Accrued Obligation, (ii) payment of any unreimbursed expenses; (iii) any unpaid Bonuses owed to
Executive for previous Bonus Years due pursuant to the terms and conditions of Section 3.3
of this Agreement, (iv) if Executive’s Date of Termination was after June 30 of a year, the pro
rata payment of the Annual Bonus as determined by the Board for such Bonus Year of termination
payable pursuant to the terms and conditions of Section 3.3 of this Agreement and (v) the
timely payment or provision of any and all benefit obligations provided under Section 3.4,
which under their terms are available in the event of death or disability.

          (e) Termination by Executive at Expiration of the Term. If this Executive’s
employment hereunder terminates by reason of Executive’s provision of a Notice of Non-Renewal
pursuant to Section 3.1, Executive shall be entitled only to the payment of (i) the
Accrued Obligation, (ii) unreimbursed expenses, (iii) previously awarded and earned, but unpaid,
bonuses due pursuant to the terms and conditions of Section 3.3 of this Agreement and (iv)
if Executive’s Date of Termination was after June 30 of a year, the pro rata payment of the Annual
Bonus as determined by the Board for such Bonus Year of termination payable pursuant to the terms
and conditions of Section 3.3 of this Agreement.

     4.4 Except as otherwise provided in Section 9.13, the Company shall pay Executive the
amounts specified in Sections 4.3(a)(i) and (ii), 4.3(b)(i),
4.3(c)(i), 4.3(d)(i) and (ii), and 4.3(e)(i) and (ii)
within thirty (30) days after the Date of Termination. In addition, subject to Executive’s timely
execution and non-revocation of the Release and compliance with Articles V, VI and
VII, the Company shall commence payment to Executive of the amounts specified in Sections
4.3(b)(3) and 4.3(c)(3) and shall pay Executive the amounts specified in Section
4.3(b)(4) and 4.3(c)(4) on the date that is sixty (60) days after the Date of
Termination. Any other amounts payable by Company under Sections 4.3(b)(ii) and
(b)(1), 4.3(c)(ii) and (c)(1), 4.3(d)(iii), (iv) and (v)
and 4.3(e), (iii) and (iv) are payable pursuant to the respective section of this
Agreement.

     4.5 Limitations on Severance Payment and Other Payments or Benefits.

          (a) Limitation on Payments. Notwithstanding any provision of this Agreement, if any
portion of the payments under this Agreement, or under any other agreement with Executive or plan
of the Company or its affiliates (in the aggregate, “Total Payments”), would constitute an
“excess parachute payment” and would, but for this Section 4.5, result in the imposition
on Executive of an excise tax under Code Section 4999, then the Total Payments to be made to
Executive shall either be (i) delivered in full, or (ii) delivered in such reduced amount in the
manner determined in accordance with Section 4.5(b) so that no portion of such Total
Payment would be subject to the Excise Tax, whichever of the foregoing results in the receipt by
Executive of the greatest benefit on an after-tax basis (taking into account the applicable
federal, state and local income taxes and the Excise Tax).

          (b) Determination of Limit. Within forty (40) days following a Date of Termination
or notice by one party to the other of its belief that there is a payment or benefit

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due Executive that will result in an excess parachute payment, Executive and the Company, at the
Company’s expense, shall obtain the opinion (which need not be unqualified) of a nationally
recognized tax counsel (“National Tax Counsel”) selected by the Company (which may be
regular outside counsel to the Company), which opinion sets forth (i) the amount of the Base
Period Income (as defined below), (ii) the amount and present value of the Total Payments, (iii)
the amount and present value of any excess parachute payments determined without regard to any
reduction of Total Payments pursuant to Section 4.5(a), and (iv) the net after-tax
proceeds to Executive, taking into account the tax imposed under Code Section 4999 if (x) the
Total Payments were reduced in accordance with Section 4.5(a) or (y) the Total Payments
were not so reduced. The opinion of National Tax Counsel shall be addressed to the Company and
Executive and shall be binding upon the Company and Executive. If such National Tax Counsel’s
opinion determines that Section 4.5(a)(ii) above applies, then the Termination Benefits
hereunder or any other payment or benefit determined by such counsel to be includable in Total
Payments shall be reduced or eliminated so that under the bases of calculations set forth in such
opinion there will be no excess parachute payment. In such event, payments or benefits included
in the Total Payments shall be reduced or eliminated by applying the following principles, in
order: (1) the payment or benefit with the higher ratio of the parachute payment value to present
economic value (determined using reasonable actuarial assumptions) shall be reduced or eliminated
before a payment or benefit with a lower ratio; (2) the payment or benefit with the later possible
payment date shall be reduced or eliminated before a payment or benefit with an earlier payment
date; and (3) cash payments shall be reduced prior to non-cash benefits; provided that if the
foregoing order of reduction or elimination would violate Code Section 409A, then the reduction
shall be made pro rata among the payments or benefits included in the Total Payments (on the basis
of the relative present value of the parachute payments).

          (c) Definitions and Assumptions. For purposes of this Agreement: (i) the terms
“excess parachute payment” and “parachute payments” shall have the meanings assigned to them in
Code Section 280G and such “parachute payments” shall be valued as provided therein; (ii) present
value shall be calculated in accordance with Code Section 280G(d)(4); (iii) the term “Base Period
Income” means an amount equal to Executive’s “annualized includible compensation for the base
period” as defined in Code Section 280G(d)(1); (iv) “Termination Benefits” shall mean, the
payments and benefits to be paid or provided pursuant to Sections 4.3(c)(1), (2), (3) and
(4); (v) for purposes of the opinion of National Tax Counsel, the value of any noncash
benefits or any deferred payment or benefit shall be determined by the Company’s independent
auditors in accordance with the principles of Code Sections 280G(d)(3) and (4), which
determination shall be evidenced in a certificate of such auditors addressed to the Company and
Executive; and (vi) Executive shall be deemed to pay federal income tax and employment taxes at
the highest marginal rate of federal income and employment taxation, and state and local income
taxes at the highest marginal rate of taxation in the state or locality of Executive’s domicile
(determined in both cases in the calendar year in which the Date of Termination or notice
described in Section 4.5(b) above is given, whichever is earlier), net of the maximum
reduction in federal income taxes that may be obtained from the deduction of such state and local
taxes.

          (d) Reasonableness of Compensation. If such National Tax Counsel so requests in
connection with the opinion required by this Section 4.5, Executive and the

11

 

Company shall obtain, at the Company’s expense, and the National Tax Counsel may rely on, the
advice of a firm of recognized executive compensation consultants as to the reasonableness of any
item of compensation to be received by Executive solely with respect to its status under Code
Section 280G.

          (e) Indemnification. The Company agrees to bear all costs associated with, and to
indemnify and hold harmless, the National Tax Counsel of and from any and all claims, damages, and
expenses resulting from or relating to its determinations pursuant to this Section 4.5,
except for claims, damages or expenses resulting from the gross negligence or willful misconduct
of such firm.

          (f) Changes to Code Section. This Section 4.5 shall be amended to comply
with any amendment or successor provision to Sections 280G or 4999 of the Code. If such
provisions are repealed without successor, then this Section 4.5 shall be cancelled
without further effect.

     4.6 Resignation Upon Termination. Upon any termination of Executive’s employment with
the Company, and without further action on the part of Executive, Executive shall be deemed to have
resigned from each directorship and other office or position of authority Executive may hold with
the Company or any of its direct or indirect subsidiary business entities.

ARTICLE V

CONFIDENTIAL INFORMATION AND NONCOMPETITION

     5.1 Confidential Information. For the purposes of Articles V, VI, VII, and
VIII the “Company” shall be deemed to include the Company and each of its direct and
indirect subsidiary business entities. For such purposes, a subsidiary shall mean any business
entity with respect to which the Company owns or controls, directly or indirectly, not less than a
majority of the equity securities of such entity, or otherwise possesses, with by virtue of
security ownership or contract, the power to elect a majority of the Board or other governing body
or offices thereof.

     5.2 Scope of Confidential Information. Executive acknowledges that the Company has
developed, and will during the term of Executive’s employment continue to develop, substantial,
confidential, competitively valuable information and other intangible or “intellectual property” in
connection with its business, some or all of which is proprietary to the Company, (collectively,
the “Confidential Information”). Without limiting the generality of the preceding
sentence, Executive expressly recognizes and agrees that subject to the remainder of this
subsection, the following items, and all copies, summaries, extracts or derivative works thereof,
are entitled to trade secret protection and constitute Confidential Information under this
Agreement, whether developed prior to the date hereof or hereafter, and whether with the assistance
of Executive or otherwise: (i) the Company’s proprietary computer software, databases and lists of
customers, prospects, candidates, and employees; employee applications; skills inventory sheets and
similar summaries of employee qualifications as well as employee compensation; customer ordering
habits, billing rates, buying preferences, and short term needs; sales reports and analysis; (ii)
employee reports and analysis; customer job orders and profit margin data; businesses processes, methods of operation and sales techniques; (iii)
statistical information regarding the Company; (iv) financial information of the Company and its
customers

12

 

that is not publicly available; (v) specially negotiated terms and pricing with vendors and
customers; and (vi) research and development, business projects, strategic business plans, and
strategies; products and solution services offered to customers. Notwithstanding the foregoing,
the Confidential Information shall not include (a) any information which is or becomes publicly
available other than as a result of the wrongful action of Executive or his agents; (b) any
information independently developed by Executive subsequent to the Date of Termination; (c) any
information made available to Executive following the termination of Executive’s employment from a
third party not known by Executive to be under binder of confidentiality to the Company with regard
thereto or (d) any information as to which the Company specifically waives its rights hereunder
pursuant to an instrument in writing.

     5.3 Agreement to Provide Confidential Information to Executive. The Company promises
to provide some or all of the Confidential Information described above to Executive without regard
to the duration of his continued employment with the Company. Executive agrees that the
Confidential Information belongs to the Company, is subject to the terms of this Agreement, and is
not his property.

     5.4 Works Made for Hire. Executive recognizes and agrees that all original works of
authorship, and all inventions, discoveries, improvements and other results of creative thinking or
discovery by Executive during the term of Executive’s employment, whether the result of individual
efforts or in acts in concert with others, arising in the scope of Executive’s employment,
utilizing in any way any of the Confidential Information, or otherwise relating to the Company’s
business, are and shall be “works made for hire” within the meaning of the United States copyright
laws, to the extent applicable thereto, and in all events shall be the sole and exclusive property
of the Company (collectively, the “Created Works”). Without limiting the generality of the
foregoing, the Created Works shall include all computer software, written materials, business
processes, compilations, programs, improvements, inventions, notes, copyrightable works made,
fixed, conceived, or acquired by Executive in the scope of Executive’s employment, utilizing in any
way any of the Confidential Information, or otherwise relating to the Company’s business. No part
of the definition of Created Works is intended to exclude the Created Works from being included
among the items constituting Confidential Information.

     5.5 Agreement to Return Confidential Information. At any time during employment, upon
demand by the Company, and within five (5) days of the termination of Executive’s employment for
any reason, regardless of which party initiates such termination, Executive promises to return all
property of the Company to the Company, including all copies of all or any part of the Confidential
Information or any summaries, extracts or derivative works thereof, in good condition. Such
property includes but is not limited to any Confidential Information including Created Works
constituting Confidential Information, and any of the Company’s tools of trade.

     5.6 Assignment of Created Works. Executive hereby fully assigns to the Company all of
his or her right, title and interest in and to the Created Works and all aspects thereof, including
without limitation all rights to renewals, extensions, causes of action, reproduce, prepare derivative works, distribute, display, perform, transfer, make, use and sell.
Executive will, from time to time during the term of this Agreement and thereafter, execute and
deliver any

13

 

documents, agreements, certificates or other instruments affirming, giving effect to or otherwise
perfecting the Company’s rights in the Created Works and will provide such cooperation as the
Company shall reasonably request in connection with the protection, exploitation or perfection of
its rights therein anywhere in the world.

     5.7 Power of Attorney. If the Company is unable, after reasonable effort, to secure
Executive’s signature on any application for patent, copyright, trademark or other analogous
registration or other documents regarding any legal protection relating to a Created Work, whether
because of Executive’s physical or mental incapacity or for any other reason whatsoever, Executive
hereby irrevocably designates and appoints the Company and its duly authorized officers and agents
as his or her agent and attorney-in-fact, to act for and in Executive’s behalf and stead to execute
and file any such application or applications or other documents and to do all other lawfully
permitted acts to further the prosecution and issuance of patent, copyright or trademark
registrations or any other legal protection thereon with the same legal force and effect as if
executed by Executive.

     5.8 Disclosure of Inventions. Executive will promptly and without reservation fully
disclose any Created Works to the Company both during the term of employment and thereafter.

ARTICLE VI

NON-DISCLOSURE

     6.1 Non-Disclosure.

          (a) General Duty. Executive agrees that he will not directly or indirectly use any
Confidential Information, including without limitation the Company’s proprietary information,
trade secrets or the Created Works, for his or her own benefit or for the benefit of any third
party. Executive agrees that he will not directly or indirectly disclose any Confidential
Information, including without limitation Company’s proprietary information, trade secrets, or the
Created Works, to any person or entity who is not an employee of the Company unless previously
authorized to do so by the Company.

          (b) Special Exceptions. Notwithstanding the foregoing, to the extent that Executive
shall be required, by law or process of law, to disclose any Confidential Information, Executive
shall be entitled to do so only to the extent so required, subject to giving the Company prompt,
advance notice of such requirement so that the Company may pursue a protective order or other
remedy, and Executive acknowledges and agrees that he will cooperate reasonably with the Company’s
efforts to obtain a confidentiality order or similar protection.

     6.2 Nature of Business.

          (a) Acknowledgment of Competitive Business. Executive acknowledges and agrees that
the Company is engaged in a highly competitive industry and must protect its Confidential
Information against unauthorized use or disclosure that would irreparably harm the Company’s
interests. Executive recognizes that the disclosure by the Company to
Executive of certain of its Confidential Information will be necessary and useful to
Executive in the performance of his job duties for the Company under this Agreement. As a result,

14

 

Executive will have access to Confidential Information that could be used by the Company’s
competitors in a manner which would irreparably harm the Company’s competitive position in the
marketplace.

          (b) Acknowledgment of Need for Protection. Executive further acknowledges and agrees
that it would be virtually impossible for Executive to ignore all knowledge of the Company’s
Confidential Information if he were to engage in competition with the Company. It is, therefore,
reasonable and proper for the Company to protect against the intentional or inadvertent use of
such Confidential Information. Accordingly, Executive agrees that restrictions on soliciting the
Company’s customers or employees during his employment under this Agreement and for a reasonable
period of time thereafter are appropriate and necessary for the protection of the Company’s
Confidential Information, goodwill, and other legitimate business interests.

ARTICLE VII

NON-SOLICITATION AND NON-COMPETITION

     7.1 Non-Solicitation and Non-Competition. Ancillary to the agreements to provide
Executive with the Confidential Information as set forth above, and in order to aid in the
enforcement of those agreements, Executive agrees that, during the Term and for a period of two (2)
years after the termination of this Agreement (the “Prohibited Period”) for any reason, he
will:

          (a) refrain from carrying on or engaging in the Business in the Restricted Area. Executive
agrees and covenants that, because the following conduct would effectively constitute carrying on
or engaging in the Business, he will not, and he will cause his affiliates not to, in the
Restricted Area during the Prohibited Period: directly or indirectly, own, manage, operate, join,
become an employee of, control or participate in or be connected with any business, individual,
partnership, firm, corporation or other entity which engages in the Business;

          (b) refrain from, and cause his affiliates to refrain from, soliciting or causing to be
solicited any customer of the Company that was a customer of the Company in the Restricted Area
during the period in which Executive was employed by the Company; and

          (c) refrain from, and cause his affiliates to refrain from, engaging or employing or
soliciting or contacting with a view to the engagement or employment of, any person who is an
officer or employee of the Company.

     7.2 Exception for Equity Ownership. Notwithstanding the restrictions contained in
Section 7.1 above, Executive or any of his affiliates may own (i) less than five percent
(5%) of any equity security registered under the Securities Exchange Act of 1934, as amended, in
any entity engaged in the Business, provided that neither Executive nor his affiliates has the
power, directly or indirectly, to control or direct the management or affairs of any such
corporation and is not involved in the management of such corporation, and (ii) those equity
investments owned by Executive as of the date of this Agreement as previously disclosed to and agreed by the
Board.

15

 

ARTICLE VIII

SURVIVAL OF COVENANTS, ENFORCEMENT OF COVENANTS AND REMEDIES

     8.1 Survival of Covenants. Executive acknowledges and agrees that his covenants in
Articles V, VI, and VII of this Agreement shall survive the termination of this
Agreement, and the existence of any claim or cause of action of Executive against the Company
whether predicated on this Agreement or otherwise shall not constitute a defense to the enforcement
by the Company of those covenants.

     8.2 Enforcement of Covenants. Executive acknowledges and agrees that his covenants in
Articles V, VI, and VII of this Agreement are, among other things, ancillary to the
otherwise enforceable agreements to provide Executive with Confidential Information and are
supported by independent, valuable consideration. Executive further acknowledges and agrees that
the limitations as to time, geographical area, and scope of activity to be restrained by those
covenants are reasonable and acceptable to Executive and do not import any greater restraint than
is reasonably necessary to protect the Company’s goodwill and other legitimate business interests.
Executive further agrees that if, at some later date, a court of competent jurisdiction determines
that any of the covenants in Articles V, VI or VII are unreasonable, any such
covenants shall be reformed by the court and enforced to the maximum extent permitted under the
law.

     8.3 Remedies. In the event of actual or threatened breach by Executive of any of his
covenants in Articles V, VI, and VII of this Agreement, the Company may be entitled
to equitable relief by temporary restraining order, temporary injunction, or permanent injunction
or otherwise, in addition to all other legal and equitable relief to which it may be entitled,
including any and all monetary damages that the Company may incur as a result of said breach,
violation, or threatened breach or violation. The Company may pursue any remedy available to it
concurrently or consecutively in any order as to any breach, violation, or threatened breach or
violation, and the pursuit of one of such remedies at any time will not be deemed an election of
remedies or waiver of the right to pursue any other of such remedies as to such breach, violation,
or threatened breach or violation, or as to any other breach, violation, or threatened breach or
violation. In addition to the above, in the case of a threatened material breach, in the event
that a final judicial determination concludes that Executive has so breached any of his covenants
in Articles V, VI, or VII of this Agreement, the Company will be entitled to
reimbursement by Executive of all severance payments paid by the Company under this Agreement
during the period of any such breach. In the event of an alleged actual material breach by
Executive of any of his covenants in Articles V, VI, and VII of this Agreement, as
determined in good faith by the Board, the Company may suspend the payments and benefits then owing
to Executive under this Agreement without resort to judicial intervention until such breach is
cured (if curable); provided, however, that if it is later determined, whether judicially or
otherwise by the Board, that Executive was not in material breach of such covenants, the Company
shall promptly pay to Executive all such suspended payments and benefits, as well as reimbursement
of all reasonable costs and expenses (including attorneys fees) incurred by Executive in defending
any such claim or action in accordance with Section 9.11; provided, however, that any cure
and payments upon cure and any payments upon a judicial determination that no breach occurred will
be made no later than the deadline under Section 409A of the Code that is applicable to disputed payments
and refusals to pay.

16

 

     8.4 Indemnification. In any situation where under applicable law the Company has the
power to indemnify, advance expenses to and defend Executive in respect of any judgments, fines,
settlements, loss, cost or expense (including attorneys fees) arising from bona fide claims 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.

ARTICLE IX

MISCELLANEOUS

     9.1 Entire Agreement. This Agreement constitutes the entire agreement between the
parties concerning the Agreement’s subject matter and supersedes all prior agreements and
understandings, both written and oral, between the parties with respect to its subject matter.

     9.2 Modification; Amendment. This Agreement may not be modified or amended in any
respect except by an instrument in writing signed by the party against whom such modification or
amendment is sought to be enforced. No modification or amendment may be enforced against the
Company unless such modification or amendment is in writing and authorized by the Board.

     9.3 No Waiver. The waiver by either party of a breach of any term of this Agreement
shall not operate or be construed as a waiver of a subsequent breach of the same provision by
either party or of the breach of any other term or provision of this Agreement.

     9.4 Remedies; Governing Law; Jurisdiction. This Agreement and performance under it,
and the exclusive venue for all proceedings that may ensue from its breach, shall be in Harris
County, Texas and construed in accordance with the laws of the State of Texas. In the event of a
breach or threatened breach by either Executive or the Company of any provision of this Agreement,
the non-breaching party shall be entitled to a temporary restraining order and an injunction
restraining the breaching party from the commission or threatened commission of such breach.
Nothing in this Agreement, however, precludes the Company from seeking to remove a civil action
from any state court to federal court. Nothing herein shall be construed as prohibiting either
Executive or the Company from pursuing any other remedies available to it for such breach or
threatened breach, including the recovery of money damages.

     9.5 Executive’s Representation. Executive represents and warrants that he is free to
enter into this Agreement and to perform each of the terms and covenants of it. Executive
represents and warrants that he is not restricted or prohibited, contractually or otherwise, from entering into and performing this Agreement, and that his execution and performance of this
Agreement is not a violation or breach of any other agreement between Executive and any other

17

 

person or entity. Employee acknowledges and agrees that (i) he is not relying upon any
determination by the Company, its affiliates, or any of their respective employees, directors,
officers, attorneys or agents (collectively, the “Company Parties”) regarding the tax effects
associated with Employee’s execution of this Agreement and (ii) in deciding to enter into this
Agreement, Employee is relying on his own judgment and the judgment of the professionals of his
choice with whom he has consulted. Employee hereby releases, acquits and forever discharges the
Company Parties from all actions, causes of action, suits, debts, obligations, liabilities, claims,
damages, losses, costs and expenses of any nature whatsoever, whether known or unknown, on account
of or arising out of, or in any way related to the tax effects associated with Employee’s execution
of this Agreement.

     9.6 The Company’s Representation. The Company represents and warrants that it is free
to enter into this Agreement and to perform each of the terms and covenants of it. The Company
represents and warrants that it is not restricted or prohibited, contractually or otherwise, from
entering into and performing this Agreement, and that its execution and performance of this
Agreement is not a violation or breach of any other agreement between the Company and any other
person or entity. The Company represents and warrants that this Agreement is a legal, valid and
binding agreement of the Company, enforceable in accordance with its terms.

     9.7 Notices. All notices and other communications under this Agreement shall be in
writing and shall be given in person or by either personal delivery, facsimile with confirmation of
receipt, overnight delivery, or first class mail, certified or registered with return receipt
requested, with postal or delivery charges prepaid, and shall be deemed to have been duly given
when delivered personally, or three days after mailing first class, certified or registered with
return receipt requested, to the respective persons named below:

	 	 	 

	If to the Company:

	 	C& J Energy Services, Inc.
	 

	 	500 North Shoreline Blvd., Suite 350
	 

	 	Corpus Christi, TX 78401
	 

	 	Attention: Randy McMullen
	 
	 	 
	If to Executive:

	 	Theodore R. Moore
	 

	 	10375 Richmond Ave., Suite 2000
	 

	 	Houston, TX 77042

     9.8 Tax Withholding. The Company may withhold from any amounts payable under this
Agreement such federal, state or local taxes as shall be required to be withheld pursuant to any
applicable law or regulation.

     9.9 Severability. If any provision of this Agreement is held to be illegal, invalid,
or unenforceable, (a) this Agreement shall be considered divisible, (b) such provision shall be
deemed inoperative to the extent it is deemed illegal, invalid, or unenforceable, and (c) in all
other respects this Agreement shall remain in full force and effect.

     9.10 Assignment. The rights and obligations of the parties under this Agreement shall
be binding upon and inure to the benefit of their respective successors, assigns, executors,

18

 

administrators and heirs; provided, however, that neither the Company nor Executive may assign any
duties under this Agreement without the prior written consent of the other.

     9.11 Attorneys’ Fees and Other Costs. If either party breaches this Agreement, or if
a dispute arises between the parties based on or involving this Agreement, the party that prevails
in the resolution of such dispute, is entitled to recover from the other party its reasonable
attorneys’ fees, court costs, and expenses incurred in enforcing such rights or resolving such
dispute. For purposes of this Section 9.11, the finder of fact shall be requested to
answer affirmatively as to whether a party “prevailed” in order to recoup attorneys’ fees and other
costs pursuant to this Section 9.11.

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

     9.13 Section 409A.

          (a) General. Any compensation or benefits made to Executive under the terms of this
Agreement (as described above) may constitute nonqualified deferred compensation for purposes of
Section 409A. Accordingly, notwithstanding any provision contained herein, this Agreement shall be
interpreted in a manner that is consistent with Section 409A and the regulatory guidance issued
thereunder. In the event that any provision of this Agreement conflicts with Section 409A or the
regulatory guidance issued thereunder, such provision is to that extent superseded by the
applicable Section 409A standards for nonqualified deferred compensation plans to satisfy the
requirements of Section 409A.

          (b) General Suspension of Payments. Notwithstanding any contrary provisions in this
Agreement, if Executive is a “specified employee,” as such term is defined within the meaning of
Section 409A, as determined by policies established by the Company’s Board, any payments or
benefits which are classified as “nonqualified deferred compensation” for purposes of Section 409A
and are payable or provided as a result of Executive’s termination of employment that would
otherwise be paid or provided within six months and one day of such termination (other than due to
death or “disability”, as such term is defined within the meaning of Section 409A) shall instead be
paid or provided on the earlier of (i) six months and two days following Executive’s termination,
(ii) the date of Executive’s death, or (iii) any date that otherwise complies with Section 409A. In
the event that Executive is entitled to receive payments during the suspension period provided
under this Section, Executive shall receive the accumulated benefits that would have been paid or
provided under this Agreement within the six month and one day suspension period on the earliest
day that would be permitted under Section 409A.

          (c) Separation from Service. For all purposes of this Agreement, Executive shall be
considered to have terminated employment with the Company when Executive incurs a “separation from
service” with the Company within the meaning of Section 409A(a)(2)(A)(i) of the Code and applicable
administrative guidance issued thereunder; provided, however, that whether such a separation from service has occurred shall be determined based upon a
reasonably anticipated permanent reduction in the level of bona fide services to be performed to

19

 

no more than twenty percent (20%) of the average level of bona fide services provided in the
immediately preceding thirty-six (36) months.

          (d) Reimbursement Payments. The following rules shall apply to payments of any amounts
under this Agreement that are treated as “reimbursement payments” under Section 409A, including,
but not limited to, any payments provided under Section 4.3: (i) the amount of expenses
eligible for reimbursement in one calendar year shall not limit the available reimbursements for
any other calendar year; (ii) Executive shall file a claim for all reimbursement payments not later
than thirty (30) days following the end of the calendar year during which the expenses were
incurred, (iii) the Company shall make such reimbursement payments within thirty (30) days
following the date Executive delivers written notice of the expenses to the Company; and (iv)
Executive’s right to such reimbursement payments shall not be subject to liquidation or exchange
for any other payment or benefit.

          (e) Separate Payments. For purposes of Section 409A, any right to a series of
installment payments under this Agreement shall be treated as a right to a series of separate
payments so that each payment is designated as a separate payment for purposes of Section 409A, and
any rights and benefits under this Agreement shall be treated as rights to separate payments for
purposes of Section 409A.

          (f) Amendment. In the event that the Company determines that any amounts payable
hereunder will be taxable to Executive under Section 409A or the regulatory guidance issued
thereunder prior to payment to Executive, then the Company may (i) adopt amendments to this
Agreement, including amendments with retroactive effect, that the Company determines necessary or
appropriate to preserve the intended tax treatment of the benefits provided hereunder and/or (ii)
take such other actions as the Company determines necessary or appropriate to avoid the imposition
of tax under Section 409A.

     9.14 Limitation. Subject to the termination provisions contained herein, this
Agreement shall not confer any right or impose any obligation on the Company to continue the
employment of Executive in any capacity or limit the right of the Company or Executive to terminate
Executive’s employment.

     9.15 Provisions Regarding Effective Date. As indicated in this Agreement, this
Agreement is effective as of the Effective Date, and accordingly in connection therewith the
parties agree that the following shall apply:

          (a) This Agreement shall from and after its execution by the parties be an agreement binding
upon and enforceable by both the Company and Executive subject to the application of the
provisions hereof generally being effective as of the Effective Date.

          (b) In the event that the Executive terminates this Agreement at any time prior to the
Effective Date, this Agreement shall be null and void and of no force and effect.

[Signature Page Follows]

20

 

     IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the day and year
indicated above.

	 	 	 	 	 
	 	COMPANY:

C&J ENERGY SERVICES, INC.

 	 
	 	By:  	/s/ Randy McMullen
 	 
	 	 	Name:  	Randy McMullen 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	EXECUTIVE:

 	 
	 	/s/ Theodore R. Moore
 	 
	 	THEODORE R. MOORE 	 
	 	 	 

 

 

	 	 	 	 	 

EXHIBIT A

RESTRICTED AREAS

Louisiana Parishes of:

Bienville

Bossier

Caddo

Caldwell

Claiborne

DeSoto

Jackson

Lincoln

Natchitoches

Red River

Sabine

Webster

Winn

State of Oklahoma

State of Texas

 

 

EXHIBIT B

FORM OF STOCK OPTION AGREEMENT

(See Attached)

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