Document:

exv10w2

 

Exhibit 10.2

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

     This Employment Agreement (the “Agreement”) is made and entered into effective as of April 27,
2006 (the “Effective Date”), by and between T-3 Energy Services, Inc., a Delaware corporation
(“Employer”), and Gus D. Halas (“Employee”).

     WHEREAS, Employer and Employee entered into that certain Employment Agreement dated May 1,
2003, as amended (the “Prior Agreement”); and

     WHEREAS, the parties hereto desire to amend and restate the Prior Agreement as set forth
herein.

     NOW, THEREFORE, Employer and Employee hereby agree as follows:

     1. TERM. Employer hereby employs Employee, and Employee hereby accepts employment, on
the terms and conditions hereinafter set forth. The term of Employee’s employment under this
Agreement shall continue after the Effective Date and end on the second anniversary of the
Effective Date, subject to termination as hereinafter provided (such period as it may be extended
as described in this paragraph, being herein referred to as the “Term of Employment”). After the
first anniversary of the Effective Date, the Employee’s Term of Employment hereunder shall be
automatically renewed at the conclusion of each calendar month, so that at the beginning of each
calendar month, the Term of Employment shall always be one year. Notwithstanding the foregoing,
Employee’s employment hereunder may be sooner terminated as hereinafter provided, and if so
terminated, the Term of Employment shall expire as of the effective date of such termination.

     2. DUTIES. Employee agrees to serve Employer as Chairman, President and Chief
Executive Officer and in such other executive capacities as may be requested from time to time by
the Board of Directors of Employer (the “Board of Directors”) or a duly authorized committee
thereof, and Employee’s authority shall at all times remain subject to the authority of the Board
of Directors. During the Term of Employment, Employee shall devote his full time and exclusive
attention to, and use his best efforts to advance, the business and welfare of Employer. During
the Term of Employment, Employee will not engage in any other employment or board activities for
any direct or indirect remuneration without the prior written consent of the Board of Directors.
Employer hereby consents to Employee’s service on the board of directors of Aquilex Services, Inc.

     3. CONFIDENTIAL INFORMATION, TRADE SECRETS AND COVENANT NOT TO COMPETE.

          3.1 CONFIDENTIAL TREATMENT FOR TRADE SECRETS. Employee hereby agrees that, during the Term of Employment and thereafter, he will not,
without the written consent of Employer, disclose to any person, enterprise, entity or association
or otherwise use or exploit for himself or others any of the proprietary or confidential
information or knowledge of or regarding Employer or its subsidiaries, ventures or their
shareholders (individually “Company” and collectively the “Companies”), or any of their businesses,
properties or affairs obtained by him at any time prior to or subsequent to the execution of this

 

 

Agreement, except to the extent required by his performance of assigned duties for Employer,
including without limitation: trade secrets; processes; inventions; engineering records or data;
interpretive or analytical information or data; drilling logs; operating agreements and records;
records of research; proposals; manuals; records or information; reports; methods; techniques;
lists; memoranda; computer software; programming or records; or budgets or other financial
information, regarding the Companies (collectively, “Trade Secrets”). This Section 3.1 shall not
apply to information or technology which (a) was known to Employee or the public prior to
disclosure to Employee in the course of his employment by Employer hereunder or prior hereto with a
predecessor in interest to Employer; (b) becomes generally known to the public through no fault of
Employee or others owing duties of trust or confidentiality to Employee, (c) is lawfully obtained
by Employee from another source not under obligation to Employer or its affiliates regarding
disclosure of such information or technology, or (d) is developed after the Term of Employment and
independently by Employee without access to or reliance on the information or technology disclosed
hereunder.

          3.2 RETURN OF TRADE SECRETS. Upon termination of his employment with Employer,
Employee will deliver to the Companies all tangible displays and repositories of proprietary or
confidential information or knowledge, including without limitation: Trade Secrets and other
materials or records or writings of any other type (including any copies thereof) made, used or
obtained by Employee in connection with his employment by Employer or its predecessor in interest
prior to or subsequent to the execution of this Agreement; provided, however, Employee shall retain
Employee’s proprietary management techniques that Employee has used prior to or after the Effective
Date. Employee agrees that all inventions, improvements in any of the Companies’ methods of
conducting their businesses or innovations (in each case, including, by way of expansion and not
limitation, policies, procedures, products, improvements, software, ideas and discoveries, whether
or not patentable or copyrightable) conceived or made by him during any time of his employment by
Employer prior to or subsequent to the execution of this Agreement belong to the appropriate
Company or Companies and to the extent Employee participated in the creation of the Trade Secrets
he did so on a work for hire basis. Upon termination of his Employment with Employer, Employee
shall promptly disclose such inventions, improvements or innovations to the Board of Directors and
perform all actions reasonably requested by the Board of Directors to establish and confirm such
ownership by the Companies and to protect the intellectual property of Employer contained therein
or represented thereby.

          3.3 COVENANT NOT TO COMPETE. Employee hereby agrees that:

               3.3.1 during the Term of Employment and until the later of (i) the first anniversary of the
date of the termination of Employee’s employment under this Agreement and (ii) such time as
Employee no longer receives any payments pursuant to Section 4, 6, 7, or 8 hereof (and as a
condition to Employee receiving any such payments), he will not, in association with or as an
officer, principal, member, advisor, agent, partner, director, material stockholder, employee or
consultant of any corporation (or sub-unit, in the case of a diversified business) or other
enterprise, entity or association, work on the acquisition or development of any line of business,
property or project in which the Companies are (1) then involved or (ii) have worked with or
evaluated in the last year and which are still being pursued or evaluated by Employer; and

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               3.3.2 during the Term of Employment and until the later of (i) the first anniversary of the
date of the termination of Employee’s employment under this Agreement and (ii) such time as
Employee no longer receives any payments pursuant to Section 4, 6, 7, or 8 hereof (and as a
condition to Employee receiving any such payments), he will not solicit or induce any person who is
or was employed by the Companies at any time during such term or period, excluding employees who
may have left their employment by Employer more than 60 days prior to being hired or solicited for
employment by Employee, (A) to interfere with the activities or businesses of any Company or (B) to
discontinue his or her employment with the Companies, or employ any such person in a business or
enterprise which competes with any of the Companies.

               3.3.3 Employee understands that the provisions of Section 3.3 hereof may limit his ability to
earn a livelihood in a business similar to the business of Employer and the Companies but as an
executive officer of Employer he nevertheless agrees and hereby acknowledges that (i) such
provisions do not impose a greater restraint than is necessary to protect the goodwill or other
business interests of Employer and the Companies; (ii) such provisions contain reasonable
limitations as to time, geographic scope and scope of activity to be restrained; and (iii) the
consideration provided hereunder, including without limitation, any amounts or benefits provided
under Sections 7 and 8 hereof, is sufficient to compensate Employee for the restrictions contained
in Section 3.3 hereof. In consideration of the foregoing and in light of Employee’s education,
skills and abilities, Employee agrees that he will not assert that, and it should not be considered
that, any provisions of Section 3.3 otherwise are void, voidable or unenforceable or should be
voided or held unenforceable.

          3.4 EXECUTIVE NATURE OF EMPLOYMENT. Employee acknowledges and agrees that his duties
with Employer are of an executive nature and that he is a member of Employer’s management group.
Employee agrees that the remedy at law for any breach by him of any of the covenants and agreements
set forth in this Section 3 will be inadequate and that in the event of any such breach, Employer
may, in addition to the other remedies which may be available to it at law, obtain injunctive
relief prohibiting Employee (together with all those persons associated with him) from the breach
of such covenants and agreements.

          3.5 APPLICATION TO SUBSIDIARIES. For purposes of this Section 3 and of Section 2 hereof, the term “Employer” shall include
Employer and any and all of Employer’s subsidiaries or ventures, or any affiliates of Employer (as
such term is defined under the Securities Act of 1933), whether currently existing or hereafter
formed. The affiliates of Employer are not intended to be construed as meaning other controlled
affiliates of First Reserve Corporation.

          3.6 CONSIDERATION. Each of the covenants of this Section 3 are given by Employee as
part of the consideration for this Agreement and as an inducement to Employer to enter into this
Agreement and accept the obligations hereunder.

     4. BASE SALARY AND BENEFITS.

          4.1 BASE SALARY. From the Effective Date to the date of termination of the Term of
Employment pursuant to the provisions of this Agreement (the “Termination Date”),

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Employer shall
pay Employee a salary at the rate of Four Hundred Fifty Thousand Dollars ($450,000) per annum
payable in equal installments at least as frequently as monthly and subject to payroll deductions
as may be necessary or customary in respect of Employer’s salaried employees in general. Such
salary shall be subject to adjustment under the Employer’s periodic compensation review procedure
which shall take into account such factors as job responsibilities, performance and cost of living
considerations. In no event shall such salary be adjusted to less than the amount set forth above.

          4.2 ANNUAL BONUS. From the Effective Date through the Termination Date, Employee will
be eligible for an annual bonus to be awarded, if at all, based on achievement of performance goals
established annually by the Board of Directors or a committee thereof, in consultation with
Employee, which goals will be established within the first ninety days of Employer’s fiscal year.

          4.3 RESTRICTED STOCK GRANT. Employer shall receive restricted stock grants of 100,000
shares pursuant to the restricted stock agreements to be delivered by Employer to Employee promptly
after the execution and delivery of this Agreement.

          4.4 VACATIONS. During the Term of Employment, Employee shall be entitled to vacation
of the greater of four weeks or the amount of time provided under the vacation policy of Employer
applicable to employees of Employer generally, as amended from time to time.

          4.5 MEDICAL INSURANCE AND OTHER BENEFITS. During the Term of Employment, Employer shall furnish Employee with such medical and
hospital insurance as is furnished to employees of Employer generally and Employee shall be
entitled to participate in all other fringe benefit programs which are maintained by Employer and
available to its executive officers generally, and under the same terms as Employer’s executive
officers generally. Employee acknowledges that he shall have no vested rights under or in respect
of his participation in any such program except as expressly provided under the terms thereof.

          4.6 AUTOMOBILE. Employer shall provide Employee with an automobile allowance in an
amount of $1,000 per month (which includes appropriate gross-up calculations).

          4.7 DUES. Employer shall reimburse Employee for all dues and assessments paid by
Employee to a country club, not to exceed Five Hundred Dollars ($500) per month, through the
Termination Date; provided, however, that such country club (A) is located within the Houston,
Texas metropolitan area, and (B) does not exclude persons from its membership or guests of members
on the basis of race, gender, or religious beliefs.

          4.8 CHANGE OF CONTROL. Upon the occurrence of a change of control (as defined
herein), the following shall occur: (A) Employer shall promptly pay to Employee an amount equal to
two times Employee’s average annual base pay and bonus for the prior two fiscal years of
employment, and (B) all stock options to purchase shares of Employer’s common stock and all
restricted stock grants shall fully vest notwithstanding any vesting schedule based on the
expiration of time contained in such stock option or restricted stock grant. A “change of control”
shall mean the closing of a transaction or series of related transactions in which either

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(A) more
than 70% of the voting power of Employer, or (B) substantially all the assets of Employer, are
transferred to parties that were not stockholders of Employer or an affiliate of such stockholder
prior to such transaction or series of related transactions.

     5. EXPENSES. Employer will pay or reimburse Employee for such reasonable travel,
entertainment, or other expenses as he may reasonably incur during the term of this Agreement in
connection with the performance of his duties hereunder, but only to the extent that Employee shall
furnish Employer with such evidence that such expenses were incurred as Employer may from time to
time reasonably require or request.

     6. DEATH OR TOTAL DISABILITY OF EMPLOYEE. If Employee dies or becomes totally
disabled during the Term of Employment, the Term of Employment shall automatically terminate and
Employer’s obligation to compensate Employee under this Agreement shall in all respects cease,
except that Employer shall pay Employee or Employee’s estate, within thirty (30) days of such death
or disability, an amount
equal to the base compensation and vacation benefits provided for under Section 4 hereof
accrued and unpaid (“Accrued Compensation”) as of the time of such death or disability and Employee
shall be entitled to such other benefits provided for under Section 4 hereof which have accrued and
have not been forfeited as of the time of such death or disability when and if provided to be paid
pursuant to the terms of any applicable Employer plans or programs, including without limitation
the then-accrued portion of Employee’s annual bonus for the current year that is otherwise
projected to be payable (based on current operating results) in the event Employee were to have
remained employed through the normal payment date of such bonus (“Accrued Benefits”). For purposes
of this Section 6, Employee shall reasonably be deemed “totally disabled” as of the time the Board
of Directors shall find, on the basis of medical evidence satisfactory to the Board of Directors,
that, as a result of a mental or physical condition, Employee is unable to perform his normal
duties of employment hereunder or is prevented from engaging in the same level of performance as he
engaged in prior to the onset of such condition, giving effect to any reasonable accommodations
which can be made by Employer, and that such disability is likely to continue for a substantial
period of time.

     7. TERMINATION FOR CAUSE. Employee’s employment under this Agreement may be
terminated by Employer for “good cause.” Upon such termination, Employer’s obligation to compensate
Employee under this Agreement shall in all respects cease, except that Employer shall pay Employee,
within thirty (30) days of such termination, any Accrued Compensation as of the time of such
termination, and Employee shall be entitled to any Accrued Benefits as of the time of such
termination when and if provided to be paid by the applicable program or plan. The term “good
cause” includes, but is not limited to any one or more of the following occurrences:

          7.1 Employee’s material breach of any of the covenants contained in this Agreement;

          7.2 Employee’s conviction by, or entry of a plea of guilty or nolo contendere in, a court of
competent and final jurisdiction for any crime (excluding traffic violations and similar
misdemeanors) involving moral turpitude or which is punishable by imprisonment in the jurisdiction
involved;

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          7.3 Employee’s commission of an act of fraud, whether prior or subsequent to the date hereof
upon Employer or the Companies or any of their subsidiaries, ventures or affiliates;

          7.4 Employee’s willful failure or refusal to perform his duties as required by this Agreement,
provided that, the termination of Employee’s employment pursuant to this Section 7.4 shall not
constitute valid termination for good cause unless Employee shall first have received written
notice from the Board of Directors stating with specificity the nature of such willful failure or
refusal in the performance of duties and affording Employee at least fifteen (15) days to correct
the act or omission complained of;

          7.5 Gross negligence, theft of Employer’s property, material violation by Employee of any duty
of loyalty to Employer or any other material misconduct on the part of Employee; or

          7.6 Material violation of any employee policy, in effect at that time, including, without
limitation, the receipt of any kick-back or side payment from any customer, service provider,
supplier or vendor.

     Notwithstanding the foregoing, and except as provided below, termination of Employee’s
employment by resignation shall be deemed a termination for good cause and shall be effective as of
the effective date of such resignation, but acceptance of such resignation by Employer shall not be
deemed a waiver of any right of Employer or the Companies under this Agreement. If Employee (i)
through action of the Employer (A) ceases to hold the title of Chairman, President or Chief
Executive Officer, (B) ceases to report directly to the Board of Directors of the Company, (C)
experiences a circumstance in which any significant business function of Employer for which
Employee has primary responsibility becomes the responsibility of any individual who does not
report directly or indirectly to Employee, or (D) has been transferred to any place other than the
Houston, Texas metropolitan area (unless such cessation or transfer is the result of events which
would otherwise entitle Employer to terminate Employee for good cause under this Section 7), and
(ii) resigns from Employer within 60 days of such event, then Employee’s resignation under such
circumstances shall be deemed a termination other than for good cause and have the effect set forth
in Section 8 below (herein, a “Constructive Termination”). For purposes of clarification, if
Employer delegates to any individual responsibility for any significant business function, which
prior to such delegation, was the direct responsibility of Employee, such delegation shall not be a
Constructive Termination so long as such delegate continues to report directly or indirectly to
Employee. In addition, and notwithstanding anything in this Section 7.6 to the contrary, neither
of the following shall be deemed a Constructive Termination: (i) any reporting directly to the
Board of Directors of Employer or a committee thereof by the Employer’s chief financial officer,
chief legal officer or other employees that is either customary or required by applicable law, or
(ii) any activities by, or delegation of responsibility to, the Chairman of the Board.

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     8. OTHER TERMINATION. Employer may terminate Employee’s employment hereunder at any
time for any reason other than those referred to above as good cause or for no reason at all, and
Employer’s obligation to compensate Employee under this Agreement shall in all respects cease upon
such termination, except that (a) Employer shall pay Employee, within thirty (30) days of such
termination, (i) any Accrued Compensation as of the time of such termination and (ii) the amount
equal to the unvested portion of employer contributions credited to Employee’s account under
Employer’s 401(k) plan determined as of Employee’s actual date of termination that will be
forfeited as a result of such termination, (b) Employee shall be entitled to any Accrued Benefits
as of the time of such termination when and if provided to be paid by the applicable program or
plan; (c) Employer shall pay Employee an amount equal to two times Employee’s average base pay and
bonus for the prior two fiscal years of employment; provided, however, in the event Employer makes
or has made the payment described in Section 4.8 hereof, Employee shall not be entitled to the
severance payment described in this subsection (c); and (d) all stock options to
purchase shares of Employer’s common stock and all restricted stock grants shall fully vest
notwithstanding any vesting schedule based on the expiration of time contained in such stock option
or restricted stock grant. Except as may be required by state or federal law, Employee shall not
be entitled to any other compensation or benefits whatsoever if Employee’s employment is terminated
pursuant to this paragraph.

     9. RELEASE AND SATISFACTION.

          9.1 Unless precluded by state or federal law, with respect to Employee, his heirs, executors,
legal representatives, successors and assigns, each payment by Employer of the amounts and benefits
provided under Sections 6, 7 or 8 hereof shall release, relinquish and forever discharge Employer
and any director, officer, employee, shareholder, agent or affiliate of Employer of and from any
and all claims, damages, losses, costs, expenses, liabilities or obligations, whether known or
unknown which relate to facts or events occurring prior to each payment under Sections 6, 7 or 8
(other than any such claims, damages, losses, costs, expenses, liabilities or obligations arising
prior to the termination of Employee’s employment and (i) covered by any written indemnification
arrangement of Employer with respect to Employee, (ii) arising under any written employee benefit
plan or arrangement whether or not tax-qualified covering Employee or (iii) constituting a
statutory right that is not waivable by a party to this Agreement), which Employee has incurred or
suffered or may incur or suffer as a result of Employee’s employment by Employer or the termination
of such employment.

          9.2 Any termination of Employee’s employment and any expiration of the Terms of Employment
under this Agreement shall not affect the continuing operation and effect of Section 3 hereof or
this Section 9, which shall continue in full force and effect with respect to Employer and Employee
and their respective heirs, executors, personal representatives, successors or permitted assigns.
Nothing in Section 9 hereof shall be deemed to operate or shall operate as a release, settlement or
discharge of any liability of Employee to Employer or others from any act or omission by Employee
enumerated in Section 7 hereof as a possible basis for termination of Employee’s employment for
good cause.

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     10. MISCELLANEOUS.

          10.1 KEY MAN INSURANCE. Employee recognizes and acknowledges that Employer or its
affiliates may (but shall not be obligated to) seek and purchase one or more policies providing key
man life insurance with respect to Employee, the proceeds of which would be payable to Employer or
such affiliate. Employee hereby consents to Employer’s or its affiliate’s seeking and purchasing
such insurance and will provide such information, undergo such medical examinations, execute such
documents, and otherwise take any and all actions necessary or desirable in order for Employer or
its affiliates to seek, purchase and maintain in full force and effect such policy or policies.

          10.2 SEVERABILITY. If any of the provisions of this Agreement shall otherwise
contravene or be invalid under the laws of any state or other jurisdiction where it is applicable
but for such
contravention or invalidity, such contravention or invalidity shall not invalidate all of the
provisions of this Agreement, but rather this Agreement shall be reformed and construed, insofar as
the laws of that state or jurisdiction are concerned, as not containing the provision or
provisions, but only to the extent that they are contravening or are invalid under the laws of that
state or jurisdiction, and the rights and obligations created hereby shall be reformed and
construed and enforced accordingly.

          10.3 MODIFICATION AND WAIVER OF BREACH. No waiver or modification of this Agreement
shall be binding unless it is in writing signed by the parties hereto. No waiver of a breach
hereof shall be deemed to constitute a waiver of a future breach, whether of a similar or
dissimilar nature.

          10.4 ASSIGNMENT. The rights and obligations of Employer under this Agreement may,
without the consent of Employee, be assigned by Employer, in its sole discretion, to any
subsidiary, venture or affiliate of Employer, provided that Employee continues to have executive
level responsibilities and will not be required to relocate.

          10.5 NOTICES. Except as otherwise required by law, any notice, consent, request,
instruction, approval and other communication provided for herein shall be in writing and shall be
deemed validly given, made or served (i) on the date on which it is delivered personally with
receipt acknowledged, (ii) five business days after it shall have been sent by registered or
certified mail (receipt requested and postage prepaid), (iii) one business day after it is sent by
overnight courier (charges prepaid) or (iv) on the same business day when sent before 5:00 p.m.,
recipient’s time, and on the next business day when sent after 5:00 p.m., recipient’s time, by
telex or telecopier, transmission confirmed and charges prepaid:

               10.5.1 if to Employer, addressed to:

T-3 Energy Services, Inc.

Attention: Chief Financial Officer

Telephone: (713) 437-5187

Telecopier: (713) 224-0771

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With a copy to:

First Reserve Corporation

One Lafayette Place

Greenwich, Connecticut 06830

Attention: Thomas R. Denison

Telephone: (203) 661-6601

Telecopier: (203) 661-6729

               10.5.2 if to Employee, addressed to him at his then current address or number, as indicated in
the books and records of the Company; or to such other address as shall be furnished in writing by
any party to the others.

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

          10.7 CONSTRUCTION OF AGREEMENT. This Agreement shall be construed in accordance with
and governed by, the laws of the State of Delaware without giving effect to the conflict of law
rules thereof’.

          10.8 MERGER; COMPLETE AGREEMENT. This Agreement, and the exhibit hereto and other
documents executed contemporaneously herewith, contain the entire agreement between the parties
hereto with respect to the transactions contemplated by this Agreement and supersedes all previous
oral and written and all contemporaneous oral negotiations or commitments and other understandings.

          10.9 NON-TRANSFERABILITY OF INTEREST. None of the rights of Employee to receive any
form of compensation payable pursuant to this Agreement shall be assignable or otherwise
transferable except through a testamentary disposition or by the laws of descent and distribution
upon the death of Employee. Any attempted assignment, transfer, conveyance, or other disposition
(other than as aforesaid) of any interest in the rights of Employee to receive any form of
compensation to be made by Employer pursuant to this Agreement shall be void.

          10.10 LEGAL FEES. If any legal action, arbitration or other proceeding is brought for
the enforcement of this Agreement, or because of any alleged dispute, breach, default or
misrepresentation in connection with this Agreement, the successful or prevailing party shall be
entitled to recover such reasonable attorneys’ fees and other costs it incurred in that action or
proceeding, in addition to any other relief to which it may be entitled.

          10.11 SUBMISSION TO JURISDICTION. Each of the parties hereto irrevocably consents
that any legal action or proceeding against it or any of its property with respect to this
agreement or any other agreement executed in connection herewith may be brought in any court of the
State of Delaware, any Federal court of the United States of America located in the State of
Delaware, or both, and by the execution and delivery of this Agreement each party hereto hereby
accepts with regard to any such action or proceeding for itself and in respect of its property,
generally and unconditionally, the jurisdiction of the aforesaid courts.

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          10.12 ARBITRATION. Any controversy, dispute, or claim arising out of, in connection
with, or in relation to, the interpretation, performance or breach of this Agreement, including,
without limitation, the validity, scope, and enforceability of this section, may at the election of
Employer or Employee be solely and finally settled by arbitration conducted in Texas, by and in
accordance with the then existing rules for commercial arbitration of the American Arbitration
Association, or any successor organization. Judgment upon any award rendered by the arbitrator(s)
may be entered by the State or Federal Court having jurisdiction thereof. Any of the parties may
demand arbitration by written notice to the other and to the American Arbitration Association
(“Demand for Arbitration”). Any Demand for Arbitration pursuant to this section shall be made
within 180 days from the date that the dispute upon which the demand is based arose. The parties
intend that this agreement to arbitrate be valid, enforceable and irrevocable.

[Signature Page to Follow]

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     IN WITNESS WHEREOF, the undersigned have executed this Agreement on the day and year first
above written.

	 	 	 	 	 	 	 	 	 	 	 
	EMPLOYEE:	 	 	 	EMPLOYER:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Gus D. Halas	 	 	 	T-3 Energy Services, Inc.

a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Gus D. Halas
	 	 	 	By:
	 	/s/ Michael T. Mino	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	Gus D. Halas
	 	 	 	Name:
	 	Michael T. Mino	 	 
	Title:

	 	Chairman, President & C.E.O.
	 	 	 	Title:
	 	VP — CFO	 	 

11exv10w3

 

Exhibit 10.3

T-3 ENERGY SERVICES, INC.

RESTRICTED STOCK AWARD AGREEMENT

     THIS RESTRICTED STOCK AGREEMENT (this “Agreement”) is made and entered into by and between T-3
Energy Services, Inc., a Delaware corporation (the “Company”), and Mr. Gus D. Halas (“Grantee”),
effective as of the grant date shown in Appendix A attached hereto pursuant to the T-3 Energy
Services, Inc. 2002 Incentive Plan (the “Plan”). The Plan is incorporated by reference herein in
its entirety. Capitalized terms not otherwise defined in this Agreement shall have the meaning
given such terms as defined in the Plan.

     WHEREAS, Grantee is an employee of the Company and in connection with such employment, the
Committee on behalf of the Company has authorized a grant to Grantee a number of restricted shares
of the Company’s common stock, par value $.001 per share (the “Common Stock”), effective January
12, 1006, in the amount indicated on Appendix A and which is pursuant to and shall be subject to
the terms and conditions of this Agreement and the Plan, with a view to increasing Grantee’s
interest in the Company’s welfare and growth; and

     WHEREAS, Grantee desires to receive shares of the Common Stock as Restricted Stock pursuant to
this Agreement in connection with his employment.

     NOW, THEREFORE, in consideration of the premises, mutual covenants and agreements contained
herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

     1. Grant of Common Stock. Subject to the restrictions, forfeiture provisions and
other terms and conditions set forth herein (a) the Company hereby grants to Grantee the number of
shares of Common Stock (“Restricted Shares”) as set out in Appendix A hereto, and (b) subject to
the terms hereof, Grantee shall have and may exercise rights and privileges of ownership of such
Restricted Shares, including, without limitation, the voting rights of such shares and the right to
receive dividends declared in respect thereof. This Agreement and the grant of Restricted Shares
are subject to administration by and the rules and procedures established by the Committee under
the Plan.

     2. Transfer Restrictions; Vesting.

     Grantee shall not sell, assign, transfer, exchange, pledge, encumber, gift, devise,
hypothecate or otherwise dispose of (collectively, “Transfer”) any Restricted Shares prior to their
vesting in accordance with the Vesting Dates set out in Appendix A. Further, even after such
Restricted Shares become vested, such vested Restricted Shares may not be sold or otherwise
disposed of in any manner which would constitute a violation of any applicable federal or state
securities laws or other applicable law, rules of any exchange on which the Company’s securities
are traded or listed, or Company rules or policies as determined by Company in its sole discretion.
Restricted Shares shall vest as of each of the Vesting Dates set out in Appendix A provided that
Grantee remains employed with the Company through the Vesting Date, except as may otherwise be
provided herein.

 

 

     3. Vesting
in Certain Circumstances. Notwithstanding the provisions in Section 2, on the
date immediately preceding the date of a change in control (as
defined in Grantee’s employment agreement with the Company (the
“Employment Agreement”)), or (b) upon a termination of
Grantee’s employment by the Company pursuant to Section 8 of the Employment Agreement, the Restricted Shares shall be 100% vested.

     4. Forfeiture.

     (a) Termination
of Service. If Grantee’s employment with the Company is terminated by the
Company for cause (as defined in the Employment Agreement) or upon
Grantee’s voluntary retirement or resignation (but specifically excluding any termination resulting from
Grantee’s death or “Disability (as
defined in the Plan of the Internal Revenue Code of 1986, as amended)), then Grantee shall
immediately forfeit all Restricted Shares which are unvested unless the Committee, in its sole
discretion, determines that any or all of such unvested Restricted Shares shall not be so
forfeited.

     (b) Forfeited Shares.
Any Restricted Shares forfeited under this Section 4 shall
automatically revert to the Company and become canceled and such shares shall be again subject to
the Plan. Any certificate(s) representing Restricted Shares which include forfeited shares shall
only represent that number of Restricted Shares which have not been forfeited hereunder. Upon the
Company’s request, Grantee agrees for himself and any other holder(s) to tender to the Company any
certificate(s) representing Restricted Shares which include forfeited shares for a new certificate
representing the unforfeited number of Restricted Shares.

     5. Issuance of Certificate.

     (a) The Company shall cause to be issued a stock certificate, registered in the name of the
Grantee, evidencing the Restricted Shares upon receipt of a stock power duly endorsed in blank with
respect to such shares. Each such stock certificate shall bear the following legend:

The transferability of this certificate and the shares of stock
represented hereby are subject to the restrictions, terms and
conditions (including forfeiture and restrictions against transfer)
contained in the restricted stock agreement entered into between the
registered owner of such shares and T-3 Energy Services, Inc.
copies of the restricted stock agreement are on file in the office
of the secretary of T-3 Energy Services, Inc., located at 13111
Northwest Freeway, Suite 500, Houston, TX 77040. 

Such legend shall not be removed from the certificate evidencing Restricted Shares until such time
as the restrictions thereon have lapsed.

     (b) The certificate issued pursuant to this Section 5, together with the stock powers relating
to the Restricted Shares evidenced by such certificate, shall be held by the Company. The Company
may issue to the Grantee a receipt evidencing the certificates held by it which are registered in
the name of the Grantee.

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     6. Miscellaneous.

     (a) Certain Transfers Void. Any purported transfer of Restricted Shares in breach of any
provision of this Agreement shall be void and ineffectual, and shall not operate to transfer any
interest or title in the purported transferee.

     (b) No Fractional Shares. All provisions of this Agreement concern whole shares of Common
Stock. If the application of any provision hereunder would yield a fractional share, the value of
such fractional share shall be paid to the Grantee in cash.

     (c) Not an Agreement for Continued Employment or Services. This Agreement shall not, and no
provision of this Agreement shall be construed or interpreted to, create any right of Grantee to
continue employment with or provide services to the Company, Company affiliates, parent, subsidiary
or their affiliates.

     (d) Notices. Any notice, instruction, authorization, request or demand required hereunder
shall be in writing, and shall be delivered either by personal in-hand delivery, by telecopy or
similar facsimile means, by certified or registered mail, return receipt requested, or by courier
or delivery service, addressed to the Company at the address indicated beneath its signature on the
execution page of this Agreement, and to Grantee at his address indicated herewith, or at such
other address and number as a party shall have previously designated by written notice given to the
other party in the manner herein set forth. Notices shall be deemed given when received, if sent
by facsimile means (confirmation of such receipt by confirmed facsimile transmission being deemed
receipt of communications sent by facsimile means), and when delivered and receipted for (or upon
the date of attempted delivery where delivery is refused), if hand-delivered, sent by express
courier or delivery service, or sent by certified or registered mail, return receipt requested.

     (e) Amendment and Waiver. This Agreement may be amended, modified or superseded only by
written instrument executed by the Company and Grantee. Any waiver of the terms or conditions
hereof shall be made only by a written instrument executed and delivered by the party waiving
compliance. Any amendment or waiver agreed to by the Company shall be effective only if executed
and delivered by a duly authorized executive officer of the Company. The failure of any party at
any time or times to require performance of any provisions hereof shall in no manner effect the
right to enforce the same. No waiver by any party of any term or condition in this Agreement, or
breach thereof, in one or more instances shall be deemed a continuing waiver of any such condition
or breach, a waiver of any other condition, or the breach of any other term or condition.

     (f) Independent Legal and Tax Advice. The Grantee has been advised and Grantee hereby
acknowledges that he has been advised to obtain independent legal and tax advice regarding this
grant of the Restricted Shares and the disposition of such shares, including, without limitation,
the election available under Section 83(b) of the Internal Revenue Code.

     (g) Governing Law and Severability. This Agreement shall be governed by the internal laws,
and not the laws of conflict, of the State of Delaware. The invalidity of any

3

 

provision of this Agreement shall not affect any other provision of this Agreement which shall
remain in full force and effect.

     (h) Successors and Assigns. Subject to the limitations which this Agreement imposes upon
transferability of Restricted Shares, this Agreement shall bind, be enforceable by and inure to the
benefit of the Company and its successors and assigns, and Grantee, and, upon his death, on his
estate and beneficiaries thereof (whether by will or the laws of descent and distribution).

     (i) Community Property. Each spouse individually is bound by, and such spouse’s interest, if
any, in any shares is subject to, the terms of this Agreement. Nothing in this Agreement shall
create a community property interest where none otherwise exists.

     (j) Compliance with Other Laws and Regulations. This Agreement, the grant of Restricted
Shares and issuance of Common Stock shall be subject to all applicable federal and state laws,
rules, regulations and applicable rules and regulations of any exchanges on which such securities
are traded or listed, and Company rules or policies. Any determination in this connection by the
Committee shall be final, binding and conclusive on the parties hereto and on any third parties,
including any individual or entity.

     (k) Tax Requirements.

     (i) Tax Withholding. This grant under this Agreement is subject to and the Company
shall have the power and the right to deduct or withhold, or require the Grantee to remit to
the Company, an amount sufficient to satisfy federal, state, and local taxes, domestic or
foreign, required by law or regulation to be withheld with respect to any taxable event
arising as a result of the Plan and this Agreement.

     (ii) Share Withholding. With respect to tax withholding required upon any taxable
event arising as a result of this Agreement, Grantee may elect, subject to the approval of
the Committee in its discretion, to satisfy the withholding requirement, in whole or in
part, by having the Company withhold shares of Stock having a Fair Market Value on the date
the tax is to be determined equal to the statutory total tax which could be imposed on the
transaction. All such elections shall be made in writing, signed by the Grantee, and shall
be subject to any restrictions or limitations that the Committee, in its discretion, deems
appropriate. Any fraction of a share of Stock required to satisfy such obligation shall be
disregarded and the amount due shall instead be paid in cash by the Grantee.

(l) Grantee’s Address.

	 	 	 
	Grantee’s address of record is:
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 

Grantee shall be responsible to notify the Company of any changes to his address.

[Signature page follows]

4

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first
above written.

	 	 	 	 	 
	 	COMPANY:

T-3 ENERGY SERVICES, INC.

 	 
	 	By:  	/s/ Michael T. Mino
 	 
	 	Name:  	Michael T. Mino 	 
	 	Title:  	VP — CFO 	 
	 

	 	 	 
	Address:

	 	T-3 Energy Services, Inc.
	 

	 	13111 Northwest Freeway, Suite 500
	 

	 	Houston, TX 77040
	 

	 	Facsimile: (713) 881-2815
	 

	 	Attention: Secretary

	 	 	 	 	 
	 	GRANTEE:

 	 
	 	/s/ Gus D. Halas
 	 
	 	Gus D. Halas 	 
	 	 	 

5

 

	 	 	 	 	 

APPENDIX A TO

RESTRICTED STOCK AGREEMENT

Grantee’s Name: Gus Halas

	 	 	 	 	 
	 	 	Number of
	Grant Date:	 	Restricted Shares Granted
	January 12, 2006
	 	 	50,000	 

Vesting Dates:

	 	 	 	 	 
	 	 	Number of
	 	 	Restricted Shares Granted to be
	Date	 	Vested
	January 11, 2008
	 	 	50,000	 

Note: All vesting is subject to the terms and conditions of the Agreement.

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