Document:

Exhibit

Exhibit 10.40 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (“Agreement”) dated as of November 1, 2019 (the “Effective Date”), by and between NexTier Oilfield Solutions Inc. f/k/a Keane Group, Inc. (the “Company”) and Ian J. Henkes (the “Executive”) (each a “Party” and together, the “Parties”).  
WHEREAS, the Executive is currently employed by the Company pursuant to an Employment Agreement entered into between the Executive and Keane Group, Inc. dated as of June 16, 2019 (the “Prior Employment Agreement”); and
WHEREAS, the Parties desire to amend and restate the Prior Employment Agreement in its entirety as set forth herein and supersede the Prior Employment Agreement effective on the Effective Date.
NOW, THEREFORE, in consideration of the mutual promises and conditions herein set forth, the parties hereto agree as follows:
1.Employment and Acceptance.  The Company shall employ the Executive, and the Executive shall accept such employment, subject to the terms of this Agreement, on the Effective Date.
2.    Term.  Subject to earlier termination pursuant to Section 5 of this Agreement, this Agreement and the employment relationship hereunder shall continue until February 1, 2020 (the “Initial Term”) and shall renew for one (1) year intervals thereafter (each, an “Extended Term”) unless either Party shall have given written notice to the other at least ninety (90) days prior to the end of the Initial Term or an Extended Term that it does not wish to extend the Term.  As used in this Agreement, the “Term” shall refer to the period beginning on the Effective Date and ending on the date the Executive’s employment terminates in accordance with this Section 2 or Section 5 (the date the Executive’s employment terminates, the “Termination Date”).  In the event that the Executive’s employment with the Company terminates, the Company’s obligation to continue to pay, after the date of termination, Base Salary (as defined below), Bonus (as defined below) and other unaccrued benefits shall terminate except as may be provided for in Section 5 below.
3.    Duties, Title and Location.
3.1    Title.  The Company shall employ the Executive to render exclusive and full-time services to the Company.  The Executive shall serve in the capacity of Senior Vice President, Operations and shall report to the Chief Executive Officer of the Company (the “CEO”).  Notwithstanding anything herein to the contrary, the Executive may, and it shall not be considered a violation of this Agreement for the Executive to: (a) engage in or serve such professional, civic, trade association, charitable, community, educational, religious or similar types of organizations or speaking engagements, as the Executive may select; (b) subject to the prior approval of the Board, serve on the boards of directors or advisory committees of any entities, or engage in other business activities; and (c) attend to the Executive’s personal matters and/or the Executive’s and/or his family’s personal finances, investments and business affairs, so long as such service or activities described in clauses (a), (b) and (c) immediately preceding do not significantly interfere with the performance of the Executive’s responsibilities as an employee of the Company in accordance with this Agreement.
3.2    Duties.  The Executive shall have such powers and duties as may from time to time be prescribed by the CEO; provided that such duties are consistent with the Executive’s position or other positions that he may hold from time to time.
3.3    Location.  The Executive shall provide Executive’s services to the Company at the Company’s office in Houston, Texas, provided, however, that the Executive shall be expected to travel to other locations in the performance of his duties.
4.    Compensation and Benefits by the Company.  As compensation for all services rendered pursuant to this Agreement, the Company shall provide the Executive the following during the Term:
4.1    Base Salary.  The Company will pay to the Executive an annual base salary of $375,000, payable in accordance with the general payroll practices of the Company (“Base Salary”).
4.2    Bonuses and Incentives.
(a)    Annual Bonus.  The Executive shall be eligible to receive an annual bonus (the “Bonus”) targeted at seventy-five percent (75%) of annual Base Salary (the “Target Bonus”), based on the achievement of specific annual performance criteria established by the Compensation Committee of the Board (the “Compensation Committee”) each year.  The Bonus will not be subject to any cap and may exceed the Target Bonus, based on the achievement of stretch goals to be determined by the Compensation Committee.  The Bonus, if any, shall be payable as soon as practicable following the completion of the Company’s audited financial statements for the year in which such Bonus is earned but no later than May 1 of the year following the year the Bonus is earned.  Subject to the provisions of Section 5 hereof, the Bonus shall be payable only if the Executive is employed by the Company on the date the Bonus is paid.  
(b)    Long-Term Incentive.  The Executive shall be eligible to participate in any long-term incentive plan adopted by the Company for its senior management team (each, an “Incentive Plan”) subject to the terms of the Incentive Plan and any applicable award agreements between the Executive and the Company. Unless otherwise agreed by the Board and the Executive, the Executive will annually receive an award or awards under an Incentive Plan having a grant date target value (calculated in accordance with the Company’s normal annual equity award valuation methodology) consistent with the long-term incentives granted under the Incentive Plan to the other Company senior executives in respect of the applicable year as determined by the Compensation Committee after consultation with the Executive.
(c)    Profits Interest Grant.  Executive acknowledges the Executive received an equity award in the form of a Profits Interest granted under the terms of the Keane Group Holdings, LLC Class C Management Incentive Plan (“MIP”) and award agreement.  From the management pool, the Executive received an interest equal to .20% of the value of the Company above the base value at February 1, 2016, subject to both time and performance-based vesting under the terms of the Award Agreement and Plan document.
4.3    Benefits.
(a)    Participation in Benefits Plans.  During the Term, the Executive shall be entitled, if and to the extent eligible, to participate in all of the applicable benefit plans and programs of the Company, which are available to other senior executives of the Company, on the same terms as such other senior executives, provided, however that the Executive shall be eligible for five (5) weeks of vacation annually.  The Company may at any time or from time to time amend, modify, suspend or terminate any employee benefit plan, program or arrangement for any reason without the Executive’s consent if such amendment, modification, suspension or termination is consistent with the amendment, modification, suspension or termination for other senior executives of the Company.
(b)    Car Allowance.  During the Term, the Executive will be provided with a car allowance of $1,700.00 per month, subject to the Company’s policies regarding automobile use in effect from time to time.
4.4    Expense Reimbursement.  The Executive shall be entitled to receive reimbursement for all appropriate business expenses incurred by him in connection with his duties under this Agreement in accordance with the policies of the Company as in effect from time to time, subject to the Company’s requirements with respect to reporting and documentation of such expenses.
5.    Termination of Employment.
5.1    By the Company for Cause, by the Executive for any Reason, or Non Renewal by Either Party.  
(a)    If during the Term:  (i) the Company terminates the Executive’s employment with the Company for Cause (as defined below) upon written notice from the Board; (ii) the Executive terminates employment for any reason upon sixty (60) days advance written notice; or (iii) the Executive’s employment terminates due to either Party giving the other Party written notice of its election not to renew the Term pursuant to Section 2 of this Agreement:
(A)    the Executive’s accrued but unpaid Base Salary to the date of termination and any employee benefits that the Executive is entitled to receive pursuant to the employee benefit plans of the Company (other than any severance plans) in accordance with the terms of such employee benefit plans;
(B)    the unpaid portion of the Bonus, if any, relating to any year prior to the fiscal year of the Executive’s termination, payable in accordance with Section 4.2(a) above;
(C)    expenses reimbursable under Section 4.4 above incurred but not yet reimbursed to the Executive to the date of termination (collectively, the “Accrued Benefits”).
(b)    For the purposes of this Agreement, “Cause” means: (a) the Executive’s indictment, for conviction of or plea of no contest to a felony or any crime involving dishonesty or theft; (b) the Executive’s conduct in connection with the Executive’s employment duties or responsibilities that is fraudulent, unlawful or grossly negligent; (c) the Executive’s willful misconduct; (d) the Executive’s contravention of specific lawful directions related to a material duty or responsibility which is directed to be undertaken from the Board; (e) the Executive’s material breach of the Executive’s obligations under this Agreement, including, but not limited to breach of the Executive’s restrictive covenants set forth in Section 6 hereof; (f) any acts of dishonesty by the Executive resulting or intending to result in personal gain or enrichment at the expense of the Company, its subsidiaries or affiliates; or (g) the Executive’s failure to comply with a material policy of the Company, its subsidiaries or affiliates; provided, however, that none of the events described in clauses (d), (e) or (g) of this sentence shall constitute Cause unless and until (x) the Board reasonably determines in good faith that a Cause event has occurred, (y) the Board notifies the Executive in writing describing in reasonable detail the event which constitutes Cause within five (5) days of its occurrence, and (z) if the grounds for Cause are reasonably curable, the Executive fails to cure such event within five (5) days after the Executive’s receipt of such written notice.  For purposes of clause (c) of the prior sentence, no act or failure to act by the Executive shall be considered “willful” unless it is done, or omitted to be done, in bad faith or without a reasonable belief that the Executive’s action or omission was in the best interests of the Company.  The Board shall make all determinations related to Cause.
(c)    For purposes of this Agreement, “Good Reason” means, any failure on the part of the Company to cure a material breach of its obligations under this Agreement.  Any event will cease to constitute Good Reason unless Executive gives the Company notice of Executive’s intention to resign his position with the Company within ninety (90) days after Executive’s knowledge of the occurrence of such event and describes in reasonable specificity the details of such breach, and the Company shall have thirty (30) days from its receipt of such notice to cure any condition that constitutes Good Reason (such period, the “Cure Period”), provided that if such breach is not reasonably capable of being cured within the Cure Period despite reasonable good faith efforts by the Company (e.g., in the event of war, fire, terrorist activity, an act of god, or other force majeure type event), then the Cure Period will be deemed to start upon the date that such force majeure event or other performance obstacle has been resolved or otherwise eliminated.
(d)    For purposes of this Agreement, “Disability” means a determination by the Company in accordance with applicable law that as a result of a physical or mental injury or illness, the Executive is unable to perform the essential functions of his job with or without reasonable accommodation for a period of (i) ninety (90) consecutive days or (ii) one hundred twenty (120) days in any one (1) year period.
(e)    For purposes of this Agreement, “Change in Control” shall have the same meaning as provided under the NexTier Oilfield Solutions Inc. Equity and Incentive Award Plan.
(f)    For purposes of this Agreement, “Protected Period” shall mean the period beginning on the date a Change in Control is consummated and ending on the one (1) year anniversary of the date a Change in Control is consummated.
5.2    By the Company Without Cause, Non-Renewal by the Company or by the Executive with Good Reason.  If during the Term, (i) the Company terminates the Executive’s employment without Cause (which may be done at any time without prior notice), (ii) the Executive’s employment terminates due to the Company giving the Executive written notice of its election not to renew the Term pursuant to Section 2 of this Agreement or (iii) the Executive terminates employment with Good Reason, the Executive will be entitled to the Accrued Benefits, and, beginning on the 60th day after such termination of employment, subject to Section 8.12(b), but only if Executive has executed and not revoked within the revocation period a valid release agreement in a form reasonably acceptable to the Company prior to such date, the Executive shall also be entitled to:
(a)    cash severance payments equal, in the aggregate, to the sum of Executive’s Base Salary plus Target Bonus on the Termination Date, payable over 12 months following the Termination Date in equal monthly installments, beginning on the 60th day following the Termination Date;
(b)    a lump sum cash payment of a pro rata portion of the Bonus for the calendar year in which the Termination Date occurs (based upon the number of days the Executive was employed by the Company during the year in which the Termination Date occurs) in an amount equal to:  (1) if the Termination Date occurs on or before June 30 of the calendar year in which the Termination Date occurs, then calculated based on the Target Bonus during the calendar year through the Termination Date; and (2) if the Termination Date occurs on or after July 1 of the calendar year in which the Termination Date occurs, then calculated based on the Company’s actual performance during the calendar year through the Termination Date; provided, however, if the Termination Date occurs during a Protected Period, the amount of such lump sum payment will be equal to the Target Bonus for the calendar year in which the Termination Date occurs, without proration, in either case payable on the 60th day following the Termination Date;
(c)    any awards of stock options, restricted share units, restricted stock units, restricted stock, stock appreciation rights, deferred stock and other equity-based incentives (collectively referred to as “Equity-Based Awards”) held by the Executive which have not vested prior to the Termination Date shall immediately vest, provided that with respect to any Equity-Based Award that is subject to performance-based vesting conditions; (1) if the Termination Date occurs outside of a Protected Period, the number of securities subject to the Equity-Based Award shall be reduced on a pro rata basis to the result of (A) the total number of target securities subject to the Equity-Based Award multiplied by (B) a fraction, the numerator of which is the number of full months in which the Executive was employed under this Agreement (counting the month in which the Termination Date occurs as a full month) and the denominator of which is the number of full months in the performance period applicable to the Equity-Based Award, and such reduced number of securities shall become vested and will be calculated, settled and delivered (if at all) subject to and based on the actual performance and achievement of the applicable performance metrics calculated as of the Termination Date; and (2) if the Termination Date occurs during a Protected Period, the number of securities subject to the Equity-Based Award shall be reduced on a pro rata basis to the result of (A) the total number of target securities subject to the Equity-Based Award multiplied by (B) a fraction, the numerator of which is the number of full months in which the Executive was employed under this Agreement (counting the month in which the Termination Date occurs as a full month) and the denominator of which is the number of full months in the performance period applicable to the Equity-Based Award, and such reduced number of securities shall become vested and will be calculated, settled and delivered (if at all) to the prorated target level without regard to any performance goal otherwise applicable thereto;
(d)    a lump sum payment of an amount equal to all Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), premiums that would be payable during the period beginning on the Termination Date and ending on the date that is 12 months (or, if the Termination Date occurs during a Protected Period, ending on the date that is 18 months) after the Termination Date, assuming the Executive and the Executive’s eligible dependents who were enrolled in the group health plans of the Company as of the Termination Date elected continuation coverage under such group health plans, as in effect, and at the applicable COBRA rates, as of the Termination Date, without regard to whether the Executive and the Executive’s dependents actually elected such coverage or whether actual COBRA coverage is applicable for the above referenced time period, payable on the 60th day following the Termination Date; and
(e)    a lump sum payment equal to (as applicable): (A) 100% of the value of the Executive’s paid time-off days (which, for purposes of this Agreement, shall be calculated as 1/365th of the Executive’s annualized Base Salary multiplied by each applicable day of paid time off for which Executive is being paid) for the year in which the Termination Date occurs if the Termination Date occurs on or prior to March 30 of such calendar year; (B) 75% of the value of the Executive’s paid time-off days for the year in which the Termination Date occurs if the Termination Date occurs between April 1 and June 30 of such calendar year; (C) 50% of the value of the Executive’s paid time-off days for the year in which the Termination Date occurs if the Termination Date occurs between July 1 and September 30 of such calendar year; or (D) 25% of the value of the Executive’s paid time-off days for the year in which the Termination Date occurs if the Termination Date occurs on or after October 1 of such calendar year, payable on the 60th day following the Termination Date.
The Company shall have no obligation to provide the benefits set forth above in the event that the Executive breaches any of the provisions of Section 6.  Subject to Section 8.12(b), payments pursuant to Section 5.2 that would otherwise have been owed to the Executive prior to the 60th day after termination of employment shall be made to the Executive on the 60th day after such termination of employment.
5.3    Due to Executive’s Death or Disability.  If, during the Term, the Executive’s employment terminates due to the Executive’s death or Disability, the Executive shall be entitled to the Accrued Benefits, and, beginning on the 60th day after such termination of employment, but only if prior to such date, the Executive, or the Executive’s estate, as applicable, has executed and not revoked within the revocation period a valid and reasonable release agreement consistent with the terms of this Agreement prior to such date, the Executive, or the Executive’s estate, shall also be entitled to:
(a)    a lump sum cash payment of a pro rata portion of the Bonus for the calendar year in which the Termination Date occurs (based upon the number of days the Executive was employed by the Company during the year in which the Termination Date occurs) in an amount equal to:  (1) if the Termination Date occurs on or before June 30 of the calendar year in which the Termination Date occurs, then calculated based on the Target Bonus during the calendar year through the Termination Date; and (2) if the Termination Date occurs on or after July 1 of the calendar year in which the Termination Date occurs, then calculated based on the Company’s actual performance during the calendar year through the Termination Date; payable on the 60th day following the Termination Date;
(b)    any Equity-Based Awards held by the Executive which have not vested prior to the Termination Date shall immediately vest, provided that any Equity-Based Award that is subject to performance-based vesting conditions shall be calculated, paid and delivered at the target level without regard to any performance goal otherwise applicable;
(c)    a lump sum payment equal to (as applicable): (A) 100% of the value of the Executive’s paid time-off days (which, for purposes of this Agreement, shall be calculated as 1/365th of the Executive’s annualized Base Salary multiplied by each applicable day of paid time off for which Executive is being paid) for the year in which the Termination Date occurs if the Termination Date occurs on or prior to March 30 of such calendar year; (B) 75% of the value of the Executive’s paid time-off days for the year in which the Termination Date occurs if the Termination Date occurs between April 1 and June 30 of such calendar year; (C) 50% of the value of the Executive’s paid time-off days for the year in which the Termination Date occurs if the Termination Date occurs between July 1 and September 30 of such calendar year; or (D) 25% of the value of the Executive’s paid time-off days for the year in which the Termination Date occurs if the Termination Date occurs on or after October 1 of such calendar year, payable on the 60th day following the Termination Date.
The Company shall have no obligation to provide the benefits set forth in Section 5.3 (other than the Accrued Benefits) in the event that the Executive has breached any of the provisions of Section 6.  Payments pursuant to Section 5.3 that would otherwise have been owed to the Executive prior to the 60th day after termination of employment shall be made to the Executive on the 60th day after such termination of employment.  
5.4    Continued Employment Beyond the Expiration of the Term.  Unless the Parties otherwise agree in writing, continuation of the Executive’s employment with the Company beyond the expiration of the Term shall be deemed an employment at-will and shall not be deemed to extend any of the provisions of this Agreement and the Executive’s employment may thereafter be terminated at will by either the Executive or the Company; provided that the provisions of Sections 5.2 (with respect to a termination by the Company without Cause only), 6 and 7 of this Agreement shall survive any termination of this Agreement or the termination of the Executive’s employment hereunder,
5.5    Removal from any Boards and Position.  If the Executive’s employment terminates for any reason, the Executive shall be deemed to resign (i) if a member, from the Board or board of managers of any other NexTier Companies (as defined below) or any other board to which he has been appointed or nominated by or on behalf of the Company; and (ii) from any position with any of the NexTier Companies.
For purposes of this Agreement, “NexTier Companies” means the Company and all of its subsidiaries, successors and assigns.
6.    Restrictions and Obligations of the Executive.
6.1    Confidentiality.  (a)  During the course of the Executive’s employment by the Company and its predecessors (prior to and during the Term), the Executive has had and will have access to certain trade secrets and confidential information relating to the Company and affiliates (the “Protected Parties”) which is not readily available from sources outside the Company.  The confidential and proprietary information and, in any material respect, trade secrets of the Protected Parties are among their most valuable assets, including but not limited to, their customer, supplier and vendor lists, databases, competitive strategies, computer programs, frameworks, or models, their marketing programs, their sales, financial, marketing, training and technical information, and any other information, whether communicated orally, electronically, in writing or in other tangible forms concerning how the Protected Parties create, develop, acquire or maintain their products and marketing plans, target their potential customers and operate their drilling and hydraulic fracturing services and other businesses.  The Protected Parties invested, and continue to invest, considerable amounts of time and money in their process, technology, know-how, obtaining and developing the goodwill of their customers, their other external relationships, their data systems and data bases, and all the information described above (hereinafter collectively referred to as “Confidential Information”), and any misappropriation or unauthorized disclosure of Confidential Information in any form would irreparably harm the Protected Parties.  The Executive acknowledges that such Confidential Information constitutes valuable, highly confidential, special and unique property of the Protected Parties.  The Executive shall hold in a fiduciary capacity for the benefit of the Protected Parties all Confidential Information relating to the Protected Parties and their businesses, which shall have been obtained by the Executive during the Executive’s employment by the Company and which shall not be or become public knowledge (other than by acts by the Executive or representatives of the Executive in violation of this Agreement).  The Executive shall not, during the period the Executive is employed by the Company or at any time thereafter, disclose any Confidential Information, directly or indirectly, to any person or entity for any reason or purpose whatsoever, nor shall the Executive use it in any way, except (i) in the course of the Executive’s employment with, and for the benefit of, the Protected Parties; (ii) to enforce any rights or defend any claims hereunder or under any other agreement to which the Executive is a party; provided that such disclosure is relevant to the enforcement of such rights or defense of such claims and is only disclosed in the formal proceedings related thereto; (iii) when required to do so by a court of law, by any governmental agency having supervisory authority over the business of any of the NexTier Companies or by any administrative or legislative body (including a committee thereof) with jurisdiction to order him to divulge, disclose or make accessible such information; provided that the Executive shall give prompt written notice to the Company of such requirement, disclose no more information than is so required, and cooperate with any attempts by the Company to obtain a protective order or similar treatment; (iv) as to such Confidential Information that becomes generally known to the public or trade without his violation of this Section 6.1(a); or (iv) to the Executive’s spouse, attorney and/or his personal tax and financial advisors as reasonably necessary or appropriate to advance the Executive’s tax, financial and other personal planning (each an “Exempt Person”); provided, however, that any disclosure or use of Confidential Information by an Exempt Person shall be deemed to be a breach of this Section 6.1(a) by the Executive.  The Executive shall take all reasonable steps to safeguard the Confidential Information and to protect it against disclosure, misuse, espionage, loss and theft.  The Executive understands and agrees that the Executive shall acquire no rights to any such Confidential Information.
(a)    All files, records, documents, drawings, specifications, data, computer programs, evaluation mechanisms and analytics and similar items relating thereto or to the Business (for the purposes of this Agreement, “Business” shall be as defined in Section 6.4 hereof), as well as all customer lists, specific customer information, compilations of product research and marketing techniques of any of the NexTier Companies, whether prepared by the Executive or otherwise coming into the Executive’s possession, shall remain the exclusive property of the NexTier Companies.
(b)    It is understood that while employed by the Company, the Executive will promptly disclose to it, and assign to it the Executive’s interest in any invention, improvement or discovery made or conceived by the Executive, either alone or jointly with others, which arises out of the Executive’s employment.  At the Company’s request and expense, the Executive will assist any of the NexTier Companies during the period of the Executive’s employment by the Company and thereafter (but subject to reasonable notice and taking into account the Executive’s schedule) in connection with any controversy or legal proceeding relating to such invention, improvement or discovery and in obtaining domestic and foreign patent or other protection covering the same.
6.2    Cooperation.  During the Term and thereafter, the Executive shall cooperate fully with any investigation or inquiry by the Company or any governmental or regulatory agency or body, that relates to the Company or its subsidiaries’ or affiliates’ operations during the Term.
6.3    Non-Solicitation or Hire. During the Term and for a period of twelve (12) months following the Executive’s termination of employment for any reason, the Executive shall not (a) directly or indirectly solicit, attempt to solicit or induce (x) any party who is a customer of any of the NexTier Companies, who was a customer of any of the NexTier Companies at any time during the twelve (12) month period immediately prior to the date the Executive’s employment terminates or who was a prospective customer that has been identified and targeted by the NexTier Companies immediately prior to the date the Executive’s employment terminates, for the purpose of marketing, selling or providing to any such party any services or products offered by or available from any of the NexTier Companies on the date the Executive’s employment terminates, or (y) any supplier or prospective supplier to any of the NexTier Companies to terminate, reduce or alter negatively its relationship with any of the NexTier Companies or in any manner interfere with any agreement or contract between any of the NexTier Companies and such supplier or (b) hire any employee of any of the NexTier Companies (a “Current Employee”) or any person who was an employee of or consultant to any of the NexTier Companies during the twelve (12) month period immediately prior to the date the Executive’s employment terminates (a “Former Employee”) or directly or indirectly solicit or induce a Current or Former Employee to terminate such employee’s employment relationship with any of the NexTier Companies in order, in either case, to enter into a similar relationship with the Executive, or any other person or any entity.
6.4    Non-Competition.  During the Term and for a period of twelve (12) months following the Executive’s termination of employment for any reason, the Executive shall not, without the Company’s prior written consent, whether individually, as a director, manager, member, stockholder, partner, owner, employee, consultant or agent of any business, or in any other capacity, other than on behalf of any of the NexTier Companies, organize, establish, own, operate, manage, control, engage in, participate in, invest in, permit his name to be used by, act as a consultant or advisor to, render services for (alone or in association with any person, firm, corporation or business organization), or otherwise assist any person or entity that engages in or owns, invests in, operates, manages or controls any venture or enterprise which engages or proposes to engage in any business conducted by any of the NexTier Companies, or any business of which the NexTier Companies has specific plans to engage in, on the date of the Executive’s termination of employment (the “Business”).  Notwithstanding the foregoing, nothing in this Agreement shall prevent the Executive from owning for passive investment purposes not intended to circumvent this Agreement, less than 1 percent (1%) of the publicly traded common equity securities of any company engaged in the Business (so long as the Executive has no power to manage, operate, advise, consult with or control the competing enterprise and no power, alone or in conjunction with other affiliated parties, to select a director, manager, general partner, or similar governing official of the competing enterprise other than in connection with the normal and customary voting powers afforded the Executive in connection with any permissible equity ownership).
6.5    Property.  The Executive acknowledges that all originals and copies of materials, records and documents generated by him or coming into his possession during his employment by the Company (prior to or during the Term) are the sole property of the Company (“Company Property”).  During the Term, and at all times thereafter, the Executive shall not remove, or cause to be removed, from the premises of the Company, copies of any record, tile, memorandum, document, computer related information or equipment, or any other item relating to the business of the Company, except in furtherance of his duties under the Agreement.  When the Executive’s employment with the Company terminates, or upon request of the Company at any time, the Executive shall promptly deliver to the Company all copies of Company Property in his possession or control.
6.6    Nondisparagement.  The Executive agrees that he will not, during the duration of the Term and at any time thereafter, publish or communicate to any person or entity any Disparaging (as defined below) remarks, comments or statements concerning any of the NexTier Companies, Cerberus Capital Management, LP., their parents, subsidiaries and affiliates, and their respective present and former members, partners, directors, officers, shareholders, employees, agents, attorneys, successors and assigns.  “Disparaging” remarks, comments or statements are those that impugn the character, honesty, integrity or morality or business acumen or abilities in connection with any aspect of the operation of business of the individual or entity being disparaged.  Notwithstanding the foregoing, nothing in this Agreement shall be construed to preclude truthful disclosures in response to lawful process as required by applicable law, regulation, or order or directive of a court, governmental agency or regulatory organization.
7.    Remedies; Specific Performance.  The Parties acknowledge and agree that the Executive’s breach or threatened breach of any of the restrictions set forth in Section 6 will result in irreparable and continuing damage to the Protected Parties for which there may be no adequate remedy at law and that the Protected Parties shall be entitled to seek equitable relief, including specific performance and injunctive relief as remedies for any such breach or threatened or attempted breach, without requiring the posting of a bond.  The Executive hereby consents to the grant of an injunction (temporary or otherwise) against the Executive or the entry of any other court order against the Executive prohibiting and enjoining him from violating, or directing him to comply with any provision of Section 6.  The Executive also agrees that such remedies shall be in addition to any and all remedies, including damages, available to the Protected Parties against him for such breaches or threatened or attempted breaches.  In addition, without limiting the Protected Parties’ remedies for any breach of any restriction on the Executive set forth in Section 6, except as required by law, the Executive shall not be entitled to any payments set forth in Sections 5.2 and 5.3 hereof if the Executive has breached the covenants applicable to the Executive contained in Section 6, the Executive will immediately return to the Protected Parties any such payments previously received under Sections 5.2 and 5.3 upon such a breach, and, in the event of such breach, the Protected Parties will have no obligation to pay any of the amounts that remain payable by the Company under Sections 5.2 and 5.3.
8.    Other Provisions.
8.1    Notices.  Any notice or other communication required or which may be given hereunder shall be in writing and shall be delivered personally, sent by facsimile transmission or sent by certified, registered or express mail, postage prepaid or overnight mail and shall be deemed given when so delivered personally, or sent by facsimile transmission or, if mailed, four (4) business days after the date of mailing or one (1) business day after overnight mail, as follows:
(a)    If the Company, to the Company’s headquarters as it may be from time-to-time (attention: Chief Executive Officer).
(b)    If the Executive, to the Executive’s home address reflected in the Company’s records.
8.2    Entire Agreement.  This Agreement contains the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with respect thereto.
8.3    Representations and Warranties.  The Executive represents and warrants that he is not a party to or subject to any restrictive covenants, legal restrictions or other agreements in favor of any entity or person which could arguably, in any way, preclude, impair or limit the Executive’s ability to perform his obligations under this Agreement, including, but not limited to, non-competition agreements, non-solicitation agreements or confidentiality agreements.
8.4    Waiver and Amendments.  This Agreement may be amended, modified, superseded, canceled, renewed or extended, and the terms and conditions hereof may be waived, only by a written instrument signed by the Parties or, in the case of a waiver, by the party waiving compliance.  No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any right, power or privilege hereunder, nor any single or partial exercise of any right, power or privilege hereunder, preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder.
8.5    Governing Law Dispute Resolution and Venue.
(a)    This Agreement shall be governed and construed in accordance with the laws of Texas applicable to agreements made and not to be performed entirely within such state, without regard to conflicts of laws principles, unless superseded by federal law.
(b)    The Parties agree irrevocably to submit to the exclusive jurisdiction of the federal courts or, if no federal jurisdiction exists, the state courts, located in Harris County, Texas, for the purposes of any suit, action or other proceeding brought by any party arising out of any breach of any of the provisions of this Agreement and hereby waive, and agree not to assert by way of motion, as a defense or otherwise, in any such suit, action, or proceeding, any claim that it is not personally subject to the jurisdiction of the above-named courts, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper, or that the provisions of this Agreement may not be enforced in or by such courts.  IN ADDITION, THE PARTIES AGREE TO WAIVE TRIAL BY JURY.
8.6    Assignability by the Company and the Executive.  This Agreement, and the rights and obligations hereunder, may not be assigned by the Company or the Executive without written consent signed by the other party; provided that the Company shall cause this Agreement to be assumed by any successor that continues the business of the Company, including any person or entity that acquires all or substantially all of the assets of the Company.
8.7    Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument.
8.8    Headings.  The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning of terms contained herein.
8.9    Severability.  If any term, provision, covenant or restriction of this Agreement, or any part thereof, is held by a court of competent jurisdiction of any foreign, federal, state, county or local government or any other governmental, regulatory or administrative agency or authority to be invalid, void, unenforceable or against public policy for any reason, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected or impaired or invalidated.  The Executive acknowledges that the restrictive covenants contained in Section 6 are a condition of this Agreement and are reasonable and valid in temporal scope and in all other respects.
8.10    Judicial Modification.  If any court determines that any of the covenants in Section 6, or any part of any of them, is invalid or unenforceable, the remainder of such covenants and parts thereof shall not thereby be affected and shall be given full effect, without regard to the invalid portion.  If any court determines that any of such covenants, or any part thereof, is invalid or unenforceable because of the geographic or temporal scope of such provision, such court shall reduce such scope to the minimum extent necessary to make such covenants valid and enforceable.
8.11    Tax Withholding.  The Company or other payor is authorized to withhold from any benefit provided or payment due hereunder, the amount of withholding taxes due any federal, state or local authority in respect of such benefit or payment and to take such other action as may be necessary in the opinion of the Board to satisfy all obligations for the payment of such withholding taxes.
8.12    Section 409A.  (a)  The intent of the parties is that payments and benefits under this Agreement comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered to be in compliance with Code Section 409A.  Any term used in this Agreement which is defined in Code Section 409A or the regulations promulgated thereunder (the “Regulations”) shall have the meaning set forth therein unless otherwise specifically defined herein.  Any obligations under this Agreement that arise in connection with Executive’s “termination of employment,” “termination” or other similar references shall only be triggered if the termination of employment or termination qualifies as a “separation from service” within the meaning of § 1.409A-1(h) of the Regulations.  
(a)    Notwithstanding any other provision of this Agreement, if at the time of the termination of the Executive’s employment, the Executive is a “specified employee,” as defined in Section 409A or the Regulations, and any payments upon such termination under this Agreement hereof will result in additional tax or interest to the Executive under Code Section 409A, he will not be entitled to receive such payments until the date which is the earlier of (i) six (6) months and one day after such separation from service and (ii) the date of the Executive’s death (the “Delay Period”).  Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this Section 8.12(b) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or provided to the Executive in a lump-sum and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.
(b)    If any expense reimbursement or in-kind benefit provided to the Executive under this Agreement is determined to be “deferred compensation” within the meaning of Section 409A, then such reimbursement or in-kind benefit shall be made or provided in accordance with the requirements of Code Section 409A, including that (i) in no event shall any fees, expenses or other amounts eligible to be reimbursed by the Company under this Agreement be paid later than December 31 of the year following the year during which the applicable fees, expenses or other amounts were incurred; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits that the Company is obligated to pay or provide, in any given calendar year shall not affect the expenses that the Company is obligated to reimburse, or the in-kind benefits that the Company is obligated to pay or provide, in any other calendar year, provided that the foregoing clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect; (iii) the Executive’s right to have the Company pay or provide such reimbursements and in-kind benefits may not be liquidated or exchanged for any other benefit; and (iv) in no event shall the Company’s obligations to make such reimbursements or to provide such in-kind benefits apply later than the Executive’s remaining lifetime (or if longer, through the tenth (10th) anniversary of the Effective Date).  
(c)    For purposes of Code Section 409A, the Executive’s right to receive any installment payments shall be treated as a right to receive a series of separate and distinct payments.  Whenever a payment under this Agreement specifies a payment period with reference to a number of days (for example, “payment shall be made within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.  In no event may the Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement, to the extent such payment is subject to Code Section 409A.
(d)    In addition, if any provision of this Agreement (or of any award of compensation, including equity compensation or benefits) would subject the Executive to any additional tax or interest under Code Section 409A, then the Company shall, after consulting with and receiving the approval of the Executive, reform such provision in a manner intended to avoid the incurrence by the Executive of any such additional tax or interest; provided that the Company shall maintain, to the maximum extent practicable, the original intent of the applicable provision without subjecting the Executive to such additional tax or interest.
8.13    Protected Rights.
(a)    The Executive understands that this Agreement does not limit the Executive’s ability to communicate with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (“Government Agencies”), including to report possible violations of federal law or regulation or making other disclosures that are protected under the whistleblower provisions of federal law or regulation, or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company.
(b)    The Executive will not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (i) is made (x) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (y) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

IN WITNESS WHEREOF, the Parties hereto, intending to be legally bound hereby, have executed this Agreement as of the day and year first above mentioned.
	
			
	 
	EXECUTIVE:

	 
	 

	 
	 

	 
	/s/ Ian Henkes

	 
	Name:  Ian J. Henkes

	 
	 

	 
	THE COMPANY:

	 
	 

	 
	 

	 
	NexTier Oilfield Solutions Inc.

	 
	 

	 
	 

	 
	By:
	/s/ Kevin McDonald

	 
	Name:
	Kevin McDonald

	 
	Title:
	Executive Vice President, Chief Administrative Officer & General CounselExhibit

Exhibit 10.48

November 11, 2019

Mr. James Stewart
Via E-mail to JStewart@keanegrp.com

Re:     Letter Agreement

Dear James:

This letter (“Letter”) confirms that your employment with NexTier Oilfield Solutions Inc. f/k/a Keane Group, Inc. and its subsidiaries (collectively, “NexTier”) and your term as Chairman of the Board of Directors of NexTier (the “Board”) terminated on October 31, 2019 (the “Separation Date”).  The terms of this Letter, including the Severance Payments set forth in Section 3 below, were approved by the Compensation Committee of the Board on October 25, 2019.
1.Separation from Employment.  Except as otherwise expressly provided herein, the Separation Date will be the termination date of your employment for purposes of participation in and coverage under all benefit plans and programs sponsored by or through NexTier or any of its affiliates (collectively, the “NexTier Entities”).
2.    Accrued Benefits.  Upon the Separation Date, you will be entitled to the following (collectively, the “Accrued Benefits”): (i) your accrued but unpaid base salary to the Separation Date in accordance with Section 5.1 of the Third Amended and Restated Employment Agreement between you, KGH Intermediate Holdco II, LLC and Keane Group, Inc., dated as of January 3, 2017 (the “Employment Agreement”); (ii) any employee benefits that you is entitled to receive pursuant to any employee benefit plan or program of NexTier (other than any severance plans) in accordance with the terms of such employee benefit plan or program; (iii) any accrued but unpaid time off to be paid in accordance with applicable NexTier policy; and (iv) expenses reimbursable under Section 5.6 of your Employment Agreement that were incurred but not yet reimbursed to you to the Separation Date in accordance with NexTier’s expense reimbursement policy.
3.    Severance Benefits. In addition to your Accrued Benefits, provided you execute this Letter and do not revoke the General Release (as defined below) and continue to comply with the terms of this Letter, beginning on the sixtieth (60th) day following the Separation Date, NexTier will pay to you the following payments pursuant to Section 6.2 of the Employment Agreement (the “Severance Payments”):
(a)    cash severance in a total amount equal to $4,000,000, representing two (2) times the sum of (x) your base salary of $1,000,000 as of the Separation Date plus (y) the lesser of (A) $1,500,000, the average of the Bonuses (as defined in the Employment Agreement) that you received in respect of calendar years 2017 and 2018 or (B) one-hundred percent (100%) of your base salary of $1,000,000, payable over the period of twenty-four (24) months following the Separation Date in equal monthly installments, with any payments that would otherwise have been owed to you prior to the sixtieth (60th) day following the Separation Date made to you on the sixtieth (60th) day following the Separation Date; and
(b)    a prorated Bonus for calendar year 2019, if any, of 83.29% (representing the number of days you were employed by NexTier during calendar year 2019 prior to the Separation Date) of the Bonus to which you would have otherwise been entitled had you remained employed by NexTier through the payment date of such Bonus, payable no later than March 15, 2020.
4.    Equity Awards.
(a)    By action of the Board, on November 4, 2019, you became one-hundred percent (100%) vested in your unvested stock options and time-based restricted stock unit awards under the NexTier Oilfield Solutions Inc. Equity and Incentive Award Plan (f/k/a Keane Group, Inc. Equity and Incentive Award Plan) (the “Equity Plan”) set forth on Exhibit A.
(b)    As a result of the consummation of the transactions contemplated by the Agreement and Plan of Merger by and among C&J Energy Services, Inc., a Delaware corporation, Keane Group, Inc., a Delaware corporation and King Merger Sub Corp., a Delaware corporation and wholly-owned subsidiary of Keane Group, Inc., dated as of June 16, 2019, as of the date hereof, you have become one-hundred percent (100%) vested at the target level in your performance-based restricted stock units set forth on Exhibit A.
5.    Acknowledgements.  You acknowledge and agree that, except as set forth in Sections 2 through 4, you are not entitled to and will not be entitled to any other compensation or benefits of any kind or description in connection with the termination of your employment with each NexTier Entity.  Such compensation and benefits constitute the total consideration to be paid or provided to you by NexTier in connection with the termination of your employment with NexTier and are in lieu of any and all payments and/or other consideration of any kind which at any time have been the subject of any prior discussion, representations, inducements or promises, oral or written, direct or indirect, contingent or otherwise.  Notwithstanding anything herein to the contrary, nothing in this Letter will (i) terminate, adversely impact or otherwise modify any rights or entitlements, monetary or otherwise, due to you solely as a result of your continued service as a Director of NexTier or (ii) affect your indemnification rights under NexTier’s corporate governing documents or affect any of your indemnification and related rights under the Indemnification Agreement between you and Keane Group, Inc., dated as of January 9, 2017
6.    Taxes.  All payments made pursuant to this Letter will be subject to reduction to satisfy all applicable federal, state and local withholding tax obligations.
7.    General Release.  In consideration of the Severance Payments and other good and valuable consideration to which you agree that you would not otherwise be entitled without executing this Letter, you, on your own behalf and on behalf of your heirs, executors, administrators, and assigns, hereby release the NexTier Entities and each of their respective parents, subsidiaries and affiliates, and any and all of their respective present and former directors, officers, partners, principals, members, stockholders, employees, agents, attorneys, successors and assigns (collectively, the “Released Parties”), from any and all claims, charges, manner of actions and causes of action, suits, debts, dues, accounts, bonds, covenants, contracts, agreements, judgments and demands whatsoever which you, or your heirs, executors, administrators and assigns have, or may hereafter have, against the Released Parties arising out of or by reason of any cause, matter or thing whatsoever, whether known or unknown, from the beginning of the world to the date hereof, including without limitation the Employment Agreement, any and all matters relating to your employment by any NexTier Entity and the termination thereof, your compensation and employee benefits as an employee of any NexTier Entity, your severance benefits from any NexTier Entity, and all matters arising under any federal, state or local statute, rule or regulation or principle of contract law or common law, including, but not limited to, claims arising under the Age Discrimination in Employment Act of 1967, 29 U.S.C. § 621 et seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000 et seq., the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., and the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq., all as amended (the foregoing referred to herein as the “General Release”).  Notwithstanding the foregoing, nothing in this Letter will:  (i) affect any vested employee benefits to which you may be entitled under any existing employee benefit plans of a NexTier Entity, (ii) affect your equity interests in NexTier or in Keane Investor Holdings LLC, (iii) affect your indemnification rights under NexTier’s corporate governing documents or affect any of your indemnification and related rights under the Indemnification Agreement between you and Keane Group, Inc., dated as of January 9, 2017, or (iv) prohibit you from enforcing this Letter.
8.    No Pending or Future Claims.  You will not bring any legal action against any of the Released Parties for any claim waived and released under the General Release.  You represent and warrant that (a) no such claim has been filed to date and (b) you have not assigned, transferred or purported to assign or transfer any claim against the Released Parties.
9.    Continuing Obligations.  You represent and warrant that you have complied with and agree to continue to comply with your ongoing obligations under Section 7 of the Employment Agreement, which include, but are not limited to, obligations regarding confidentiality, cooperation, non-solicitation or hire, non-competition, property and nondisparagement, which are incorporated into this Letter by reference. 
10.    Return of NexTier Property.  You agree that you have returned to NexTier all property (including property purchased or paid for by NexTier in your possession, custody or control) which belongs to NexTier, including any keys, access cards, computers, cellphones, pagers or other equipment, and any NexTier records, files, data and documents (whether on a work or personal computer, in electronic format or otherwise, unaltered and unmodified, and whether confidential in nature or not).  You will immediately, upon request, report to NexTier any passwords for your computer or other access codes for anything associated with your employment with NexTier.
11.    Remedy for Breach; Reformation and Severability.  You acknowledge and agree that your breach or threatened breach of Section 9 of this Letter will result in irreparable and continuing damage to the NexTier Entities for which there may be no adequate remedy at law and that the NexTier Entities will be entitled to seek equitable relief, including specific performance and injunctive relief as remedies for any such breach or threatened or attempted breach, without requiring the posting of a bond.  You hereby consent to the grant of an injunction (temporary or otherwise) against you or the entry of any other court order against you prohibiting and enjoining you from violating, or directing you to comply with, any provision of Section 9 of this Letter.  You also agree that such remedies will be in addition to any and all remedies, including damages, available to the NexTier Entities against you for such breaches or threatened or attempted breaches.  In addition, without limiting the NexTier Entities’ remedies for any breach of any restriction on you set forth in Section 7 of the Employment Agreement (as incorporated herein pursuant to Section 9 of this Letter), except as required by law, you will not be entitled to the Severance Payments if you have breached the covenants applicable to you contained in Section 7 of the Employment Agreement, you will immediately return to NexTier any portion of the Severance Payments previously received by you upon such a breach and, in the event of such breach, NexTier will have no obligation to pay any portion of the Severance Payments that remains payable by NexTier under Section 2 of this Letter.  In case any provision of Section 9 of this Letter is declared by a court of competent jurisdiction to be invalid, illegal or unenforceable as written, you and NexTier agree that the court will modify and reform such provision to permit enforcement to the greatest extent possible permitted by law.  If any term, provision, covenant or restriction of this Letter, or any part thereof, is held by a court of competent jurisdiction of any foreign, federal, state, county or local government, or any other governmental, regulatory or administrative agency or authority to be invalid, void, unenforceable or against public policy for any reason, then the remainder of the terms, provisions, covenants and restrictions of this Letter will remain in full force and effect and will in no way be affected, impaired or invalidated.
12.    Miscellaneous.
(a)    You acknowledge that you are not otherwise entitled to receive the Severance Payments from NexTier by virtue of your employment with any NexTier Entity or for any other reason.
(b)    You represent and warrant that you fully understand the terms of this Letter and that you knowingly and voluntarily, of your own free will without any duress, being fully informed and after due deliberation, accept its terms and sign the same as your own free act.  You further represent and warrant that, except as set forth herein, no promises or inducements for this Letter have been made, and you are entering into this Letter without reliance upon any statement or representation by any of the Released Parties or any other person, concerning any fact material hereto.  You understand that as a result of your execution of this Letter, you will not have the right to assert that NexTier unlawfully terminated your employment or violated any rights in connection with your employment or service.
(c)    You represent and warrant that you have no claims against the Released Parties related to sexual harassment or sexual abuse.
13.    Effective Date of General Release.
(a)    The General Release is valid only if this Letter is signed by you and returned to NexTier on or within twenty-two (22) calendar days of the date you first receive this Letter.  You acknowledge that NexTier has provided you with at least twenty-one (21) calendar days from the date upon which this Letter is first delivered to you within which to consider the terms and effect of the General Release.  If you elect to execute this Letter before the expiration of the twenty-one (21) day period, you acknowledge that you have chosen, of your own free will without any duress, to waive your right to the full twenty-one (21) day period.  You acknowledge and agree that any changes to this Letter from the time it was first offered to you, whether material or immaterial, do not restart the running of the twenty-one (21) day period.
(b)    You have seven (7) calendar days following the date you sign this Letter during which to revoke the General Release, by notifying in writing Kevin M. McDonald, Executive Vice President, Chief Administrative Officer, General Counsel and Secretary of NexTier at the address for NexTier provided in Section 22.  Provided you do not revoke the General Release, the General Release will become effective on the eighth (8th) day following NexTier’s receipt of the valid Letter signed by you.  NexTier’s obligation to provide the Severance Payments will automatically terminate if you revoke the General Release.
(c)    NexTier hereby advises you to consult with an attorney prior to signing this Letter.
14.    Notice of Rights and Exceptions.
(a)    You understands that nothing contained in this Letter limits your ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (“Government Agencies”).  You further understand that this Letter does not limit your ability to communicate with any Government Agencies, including to report possible violations of federal law or regulation, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation, or otherwise to participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to NexTier.  This Letter does not limit your right to receive an award for information provided to any Government Agencies.
(b)    You will not be criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (i) is made (A) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.
15.    Non-Admission; Inadmissibility.  This Letter does not constitute an admission by NexTier or any other Released Party that any action it took with respect to you was wrongful, unlawful or in violation of any local, state or federal act, statute or constitution, or susceptible of inflicting any damages or injury on you, and NexTier specifically denies any such wrongdoing or violation.  This Letter’s execution and implementation may not be used as evidence, and will not be admissible in a subsequent proceeding of any kind, except one alleging a breach of this Letter.
16.    Entire Agreement.  This Letter, including provisions of the Employment Agreement incorporated herein by reference, constitutes the entire understanding between the parties, and except as set forth herein, supersedes any and all prior agreements or understandings between the parties with respect to the subject matter hereof.  Notwithstanding the foregoing (a) your awards pursuant the Equity Plan will continue to be governed by the terms of the Equity Plan and accompanying award agreements, and (b) this Agreement does not affect your indemnification rights under NexTier’s corporate governing documents or any of your indemnification and related rights under the indemnification Agreement between you and Keane Group, Inc., dated  as of January 9, 2017. 
17.    Amendments and Waivers.  No provisions of this Letter may be amended, modified, waived or discharged except as agreed to in writing by the parties hereto.  The failure of a party to insist upon strict adherence to any term or provision of this Letter on any occasion will not be considered a waiver thereof or deprive that party of the right thereafter to insist upon strict adherence to that term or provision or any other term of this Letter.
18.    Construction.  Neither this Letter nor any provision hereof will be construed against either of the parties on the basis of whether either of the parties had a greater role in drafting it than the other party.  
19.    Severability.  If any provision of this Letter is found to be invalid or unenforceable for any reason whatsoever, the remainder of this Letter will remain in effect.  
20.    Governing Law and Venue.  This Letter will be governed by and construed in accordance with the laws of Texas, without regard to any choice of law provisions thereof.  The parties acknowledge and agree that any claims, disputes or controversies between the parties relating to or arising out of this Letter will be resolved in accordance with Section 9.5(b) of the Employment Agreement, which is incorporated into this Letter by reference.
21.    Section 409A.  For purposes of Section 409A of the Internal Revenue Code (“Section 409A”), your right to receive any installment payments will be treated as a right to receive a series of separate and distinct payments.  The parties intend that you will have a “separation from service” from NexTier on the Separation Date.  You acknowledge that you are a “specified employee.”  With respect to any amounts that are payable to you under Section 3(a) of this Letter (i) during the six (6) month period following the Separation Date, (ii) constitute “nonqualified deferred compensation” under Section 409A, and (iii) are payable as a result of your separation from service, then payment of such amounts will be delayed until the first business day that is at least seven (7) months following the Separation Date (or, if earlier, your death).  Notwithstanding the foregoing, you agree that each installment paid to you pursuant to Section 3(a) of this Letter during the six (6) month period following the Separation Date does not constitute “nonqualified deferred compensation” pursuant to Treas. Reg. § 1.409A-1(b)(4) and Treas. Reg. § 1.409A-1(b)(9)(iii).
22.    Notices.  Any notice or other communication required or which may be given hereunder will be in writing and will be delivered personally, sent by facsimile transmission or sent by certified, registered or express mail, postage prepaid or overnight mail and will be deemed given when so delivered personally, or sent by facsimile transmission or, if mailed, three (3) business days after the date of mailing or one (1) business day after overnight mail, as follows:
(a)    If to NexTier, to:
General Counsel
NexTier Oilfield Solutions Inc.
43990 Rogerdale Road
Houston, TX 77042
Telephone:   (713) 960-0381 x 18
(b)    If to you, to the address and contact information reflected in NexTier’s records at the time of such notice.
23.    Headings.  The headings in this Letter are for convenience of reference only and will not limit or otherwise affect the meaning of terms contained herein.
24.    Successors and Assigns.  This Letter, and the rights and obligations hereunder, may not be assigned by you without the express written consent of NexTier.  Each of the parties agrees and acknowledges that this Letter, and all of its terms, will be binding upon their representatives, heirs, executors, administrators, successors and assigns.
25.    Counterparts.  This Letter may be executed in counterparts, each of which will be deemed an original but all of which will constitute one and the same instrument.  Facsimile transmission of signatures on this Letter will be deemed to be original signatures and will be acceptable to the parties for all purposes.  In addition, transmission by electronic mail of a PDF document created from the originally signed document will be acceptable to the parties for all purposes.
(a)    [Signatures follow on next page.]

Sincerely,
NEXTIER OILFIELD SOLUTIONS INC. 
		
	By:
	/s/Kevin McDonald                 
Name:    Kevin M. McDonald 
Title:    Executive Vice President, Chief Administrative Officer & General Counsel

Confirmed and Agreed:

/s/James Stewart        
James Stewart

Date:         12/03/2019            

Exhibit A

Outstanding Equity Awards

Stock Options

Time-Based Restricted Stock Units

Performance-Based Restricted Stock Units

	
			
	DOC ID - 32813580.10
	1

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