Document:

exv10w11

 

Exhibit
10.11

AMENDMENT NO. 1 TO THE

COMPLETE PRODUCTION SERVICES, INC.

AMENDED AND RESTATED 2001 STOCK INCENTIVE PLAN

July 28, 2006

     This Amendment No. 1 to the Complete Production Services, Inc. Amended and Restated 2001 Stock
Incentive Plan (“Amendment”) is adopted by Complete Production Services, Inc., a Delaware
corporation (the “Company”), effective as of July 28, 2006 (the “Effective Date”). Capitalized
terms used herein but not otherwise defined shall have the meanings ascribed to them in the
Complete Production Services, Inc. Amended and Restated 2001 Stock Incentive Plan (the “Amended
Plan”).

RECITALS

     The Amended Plan was approved by the Board of Directors of the Company (the “Board”) on March
29, 2006 and by the stockholders of the Company on April 12, 2006.

     Article X of the Amended Plan provides that the Amended Plan, or any part thereof, may be
altered or amended by the Board provided that no change in the Amended Plan may impair the rights
of a Participant with respect to an award previously granted without the consent of the
Participant. Notwithstanding the foregoing, any amendment to increase the maximum aggregate number
of shares that may be issued under the Amended Plan or change the class of individual rights to
receive awards under the Amended Plan are subject to stockholder approval.

     The Board of Directors has determined that it is in the best interests of the Company and its
stockholders to amend the Amended Plan to: (i) give the Committee the authority to amend the
Amended Plan in any way that does not require stockholder approval; (ii) allow the Committee to
delegate authority under the Amended Plan; (iii) allow, with the prior consent of the Committee,
the payment of withholding taxes with shares of Common Stock of the Company otherwise issuable
under an Award or already-owned by a Participant; and (iv) amend the definition of “Fair Market
Value”.

AMENDMENT

               1. Effective as of the Effective Date, Article X, “AMENDMENT AND TERMINATION OF THE PLAN” of
the Amended Plan is hereby amended and restated to read in its entirety as follows:

     “The Board in its discretion may terminate the Plan at any time with respect to any
shares of Common Stock for which Awards have not theretofore been granted. The Board or the
Committee shall have the right to alter or amend the Plan or any part thereof from time to
time; provided that (i) no change in the Plan may be made that would impair the rights of a
Participant with respect to an Award theretofore granted without the consent of the
Participant, and (ii) stockholder approval will be required to amend the Plan to (a)
increase the maximum aggregate number of shares that may be issued under the Plan or (b)
change the class of individuals eligible to receive Awards

 

 

under the Plan; and (iii) only the Board may approve an amendment to the Plan that is
subject to stockholder approval.

                  2. Effective as of the Effective Date, Article IV, “ADMINISTRATION” shall be amended to add a
new Paragraph (d) as follows:

(d) Delegation of Authority. To the extent permitted by applicable law, the Committee
may from time to time delegate to a committee of one or more members of the Board or one
or more officers of the Company the authority to grant Awards to, and amend and
interpret Awards granted to, Participants other than (a) any senior executive of the
Company who is subject to Section 16 of the Exchange Act, (b) any employee who is, or
could be, a “covered employee” within the meaning of Section 162(m) of the Code, or (c)
any member of the Board to whom authority to grant or amend Awards has been delegated
hereunder. Any delegation hereunder shall be subject to the restrictions and limits
that the Committee specifies at the time of such delegation, and the Committee may at
any time rescind the authority so delegated or appoint a new delegatee. At all times,
the delegatee appointed under this Article IV, subparagraph (d) shall serve in such
capacity at the pleasure of the Committee. All references to the Committee in this
Amended Plan shall include references to such delegatee.

                  3. Effective as of the Effective Date, Article XI, Paragraph (d) “Other Laws: Withholding”
shall be amended to add the following at the end of such paragraph:

“The Committee may in its discretion and in satisfaction of any withholding obligation
allow a Participant to elect to have the Company withhold shares of Common Stock
otherwise issuable under an Award (or allow the return of shares of Common Stock) having
a Fair Market Value equal to the sums required to be withheld. Notwithstanding any
other provision of the Plan, the number of shares of Common Stock which may be withheld
(or which may be repurchased from the Participant of such Award) in order to satisfy the
Participant’s federal, state, local and foreign income and payroll tax liabilities with
respect to the issuance, vesting, exercise or payment of the Award shall be limited to
the number of shares which have a Fair Market Value on the date of withholding or
repurchase equal to the aggregate amount of such liabilities based on the minimum
statutory withholding rates for federal, state, local and foreign income tax and payroll
tax purposes that are applicable to such supplemental taxable income.”

                  4. Effective as of the Effective Date, Article II, Paragraph (l), “Fair Market Value” shall be
amended and restated to read in its entirety as follows:

“(l) “Fair Market Value” means, as of any given date, the fair market value of a
share of Common Stock on such date determined by such methods or procedures as may
be established from time to time by the Committee. Unless otherwise determined by
the Committee, if the Common Stock is listed on any established stock exchange or a
national market system, including, without limitation, the

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New York Stock Exchange, the Nasdaq National Market or The Nasdaq SmallCap Market of
The Nasdaq Stock Market, its Fair Market Value shall be the closing selling price
for a share of Common Stock as quoted on such exchange or system for such date or,
if there is no closing selling price for the Common Stock on the date in question,
the closing selling price for a share of Common Stock on the last preceding date for
which such quotation exists.”

                    5. Except as set forth herein, the Amended Plan shall remain in full force and effect. All
Awards granted prior to the Effective Date shall, as applicable, be governed by the Amended Plan as
in effect prior to the Effective Date.

     I hereby certify that the foregoing Amendment No. 1 to the Amended and Restated 2001 Stock
Incentive Plan of Complete Production Services, Inc. was duly adopted by the Board of Directors
effective as of July 28, 2006

     Executed this 28th day of July 2006.

	 	 	 	 	 
	 	/s/ James F. Maroney, III
——————————————————

James F. Maroney, III

Vice President, Secretary and

General Counsel

 	 
	 	 	 
	 	 	 
	 	 	 
	 

3exv10w24

 

Revised 2006

EXHIBIT 10.24

RESTRICTED STOCK AGREEMENT

TERMS AND CONDITIONS

(Rev. 2006)

     These Terms and Conditions constitute a part of the Restricted Stock Agreement, dated as of
the date set forth on the Signature Page to Restricted Stock Agreement Terms and Conditions made a
part hereof (the “Signature Page”), concerning certain Restricted Shares issued by Complete
Production Services, Inc., a Delaware corporation hereinafter referred to as “Company,” to the
individual listed on the Signature Page, hereinafter referred to as “Holder.” These Terms and
Conditions and the Signature Page are collectively referred to as the “Agreement.”

     WHEREAS, the Company wishes to afford the Holder the opportunity to own shares of its $0.01
par value Common Stock;

     WHEREAS, the Company wishes to carry out the Amended and Restated 2001 Stock Incentive Plan,
as the same may be amended from time to time (the “Plan”), the terms of which are hereby
incorporated by reference and made a part of this Agreement; and

     WHEREAS, the Administrator of the Plan has determined that it would be to the advantage and
best interest of the Company and its stockholders to issue the Restricted Shares provided for
herein to the Holder as an inducement to enter into or remain in the service of the Company or an
Affiliate of the Company and as an incentive for increased efforts during such service, and has
advised the Company thereof and instructed the undersigned officers to issue said Restricted
Shares.

     NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby agree
as follows:

ARTICLE I.

DEFINITIONS

     Whenever the following terms are used in this Agreement, they shall have the meaning specified
below unless the context clearly indicates to the contrary. The masculine pronoun shall include
the feminine and neuter, and the singular the plural, where the context so indicates. Capitalized
terms used but not defined in this Agreement shall have the meaning ascribed to such terms in the
Plan.

Section 1.1. Administrator

     “Administrator” shall mean the entity that conducts the administration of the Plan (including
the issue of Restricted Shares) as provided therein, and generally shall refer to the Compensation
Committee of the Board, unless and to the extent (a) the Board has assumed the authority for
administration of all or any part of the Plan, or (b) the Compensation Committee has delegated the
authority for administration of all or part of the Plan.

Section 1.2. Affiliate

     “Affiliate” shall mean any corporation, partnership, limited liability company or partnership,
association, trust or other organization which, directly or indirectly, controls, is controlled by,
or is under common control with, the Company. For purposes of the preceding sentence, “control”
(including, with correlative meanings, the terms “controlled by” and “under common control
with”), as

 

 

used with respect to any entity or organization, shall mean the possession, directly or
indirectly, of the power (i) to vote more than 50% of the securities having ordinary voting power
for the election of directors of the controlled entity or organization, or (ii) to direct or cause
the direction of the management and policies of the controlled entity or organization, whether
through the ownership of voting securities or by contract or otherwise.

Section 1.3.  Board

     “Board” shall mean the Board of Directors of the Company.

Section 1.4. Code

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

Section 1.5. Common Stock

     “Common Stock” shall mean the common stock of the Company, par value $0.01 per share, and any
equity security of the Company issued or authorized to be issued in the future, but excluding any
warrants, options or other rights to purchase Common Stock. Debt securities of the Company
convertible into Common Stock shall be deemed equity securities of the Company.

Section 1.6. Company

     “Company” shall mean Complete Production Services, Inc., a Delaware corporation, or any
successor corporation.

Section 1.7. Holder

     “Holder” shall mean shall mean the Holder issued Restricted Shares under this Agreement and
the Plan and listed on the Signature Page.

Section 1.8. Exchange Act

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

Section 1.9. Plan

     “Plan” shall mean the Complete Production Services, Inc. Amended and Restated 2001 Stock
Incentive Plan, as amended and/or restated from time to time.

Section 1.10. Restricted Shares

     “Restricted Shares” shall mean the Restricted Shares issued under this Agreement and the Plan
and specified on the Signature Page, so long as such shares are subject to the Restrictions.

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Section 1.11. Restrictions

     “Restrictions” shall mean the vesting requirements set forth on the Signature Page and Section
3.2, the forfeiture requirements set forth in Section 3.1 and the restrictions on sale or other
transfer set forth in Section 3.3.

Section 1.12. Rule 16b-3

     “Rule 16b-3” shall mean that certain Rule 16b-3 under the Exchange Act, as such Rule may be
amended from time to time.

Section 1.13.  Secretary

     “Secretary” shall mean the Secretary of the Company.

Section 1.14. Securities Act

     “Securities Act” shall mean the Securities Act of 1933, as amended.

Section 1.15. Termination of Employment

     “Termination of Employment” shall mean the time when the Holder-employer relationship between
the Holder and the Company or any Affiliate is terminated for any reason, including, but not by way
of limitation, a termination by resignation, discharge, death, disability or retirement, but
excluding (i) terminations where there is a simultaneous reemployment, continuing employment of the
Holder by the Company or any Affiliate, (ii) at the discretion of the Administrator, terminations
which result in a temporary severance of the Holder-employer relationship, and (iii) terminations
which are followed by the simultaneous establishment of a consulting relationship by the Company or
any Affiliate with the Holder. The Administrator, in its absolute discretion, shall determine the
effect of all matters and questions relating to Termination of Employment, including, but not by
way of limitation, the question of whether a Termination of Employment resulted from a discharge
for Cause, and all questions of whether particular leaves of absence constitute Terminations of
Employment. Notwithstanding any other provision of the Plan or this Agreement, the Company or any
Affiliate has an absolute and unrestricted right to terminate the Holder’s employment at any time
for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise
in writing.

ARTICLE
II.

ISSUANCE OF RESTRICTED SHARES

Section 2.1. Issuance of Restricted Shares

     Effective as of the Issuance Date set forth on the Signature Page, the Company irrevocably
issues to the Holder the number of Restricted Shares set forth on the Signature Page, subject to
the Restrictions and the other terms and conditions set forth in this Agreement.

Section 2.2. Consideration to Company

     In partial consideration of the issuance of the Restricted Shares by the Company, the Holder
(i) agrees to render faithful and efficient services to the Company or its any Affiliate, with such
duties and responsibilities as the Company or any Affiliate shall from time to time prescribe, for
a period
of at least one (1) year from the date the Issuance Date, (ii) agrees not disclose or use,
directly or

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indirectly, any proprietary or confidential information concerning the Company or any
Affiliate so long as such information is proprietary and/or confidential, except any disclosure or
use that is for the benefit of the Company or such Affiliate and is incidental to the Holder’s
employment, and (iii) agrees to abide by all of the terms and conditions of this Agreement and the
Plan. Nothing in the Plan or this Agreement shall confer upon the Holder any right to continue in
the employ of the Company or any Affiliate, or shall interfere with or restrict in any way the
rights of the Company and any Affiliate, which are hereby expressly reserved, to discharge the
Holder at any time for any reason whatsoever, with or without good cause.

Section 2.3. Rights as a Stockholder

     Except as otherwise provided herein, effective as of the Issuance Date set forth on the
Signature Page, the Holder shall have all the rights of a stockholder with respect to the
Restricted Shares, subject to the Restrictions. Thus, the Holder shall have the right to vote the
Restricted Shares and to receive all dividends or other distributions paid or made with respect to
the Restricted Shares (subject to Section 3.4).

ARTICLE
III.

RESTRICTIONS ON SHARES

Section 3.1. Restrictions. 

     Upon Holder’s Termination of Employment, all Restricted Shares outstanding as of
such Termination of Employment shall be automatically forfeited and cancelled, without payment of
any consideration therefore, effective as of the date of such Termination of Employment. By
resolution, the Administrator may, on such terms and conditions as it deems appropriate, remove any
or all of the Restrictions (including without limitation, the Administrator may accelerate vesting)
at any time or from time to time.

Section 3.2. Lapse of Restrictions. 

     The Restrictions shall lapse and the Restricted Shares shall vest in accordance with the
Vesting Schedule set forth on the Signature Page, conditioned upon the Holder’s continued
employment or service with the Company through the applicable effective date of vesting. The
vesting of the Restricted Shares and the removal of the Restrictions with respect to such
Restricted Shares shall cease upon the Holder’s Termination of Employment.

Section 3.3. Restrictions on Transfer.

     Holder shall not sell, exchange, transfer, alienate, hypothecate, pledge, encumber or assign
any Restricted Shares, or any rights with respect thereto. Neither the Restricted Shares nor any
interest or right therein or part thereof shall be liable for the debts, contracts, or engagements
of Holder or his successors in interest or shall be subject to disposition by transfer, alienation,
anticipation, pledge, encumbrance, assignment or any other means whether such disposition be
voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any
other legal or equitable proceedings (including bankruptcy) and any attempted disposition thereof
shall be null and void and of no effect.

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Section 3.4. Assets or Securities Issued With Respect to the Restricted Shares.

     Any and all cash dividends paid on the Restricted Shares and any and all shares of Common
Stock, capital stock or other securities or other property received by or distributed to Holder
with respect to, in exchange for or in substitution of the Restricted Shares as a result of any
stock dividend, stock split, reverse stock split, recapitalization, combination, reclassification,
or similar change in the capital structure of the Company shall also be subject to the Restrictions
until such restrictions lapse or are removed pursuant to this Agreement or action by the
Administrator. In addition, in the event of any merger, consolidation, share exchange or
reorganization affecting the Restricted Shares, then any new, substituted or additional securities
or other property (including money paid other than as a regular cash dividend) that is by reason of
any such transaction received with respect to, in exchange for or in substitution of the Restricted
Shares shall also be subject to the Restrictions until such Restrictions lapse or are removed
pursuant to this Agreement or by action of the Administrator. Any such assets or other securities
received by or distributed to Holder with respect to, in exchange for or in substitution of any
Restricted Shares shall be immediately delivered to the Company to be held in escrow pursuant to
Section 3.5.

Section 3.5. Escrow of Shares.

     (a) The Secretary of the Company or any other person designated by the Administrator shall retain
physical custody of any certificates representing the Restricted Shares, or shall maintain an
account for Holder evidencing the issuance of such Restricted Shares, in escrow until and to the
extent (i) such Restricted Shares have vested and all Restrictions have been removed or lapsed as
to such shares under this Agreement, or (ii) such Restricted Shares have been forfeited and
cancelled pursuant to Section 3.1. To ensure the delivery of Holder’s Restricted Shares upon
forfeiture, Holder hereby appoints the Secretary of the Company or any other designated escrow
agent as Holder’s attorney-in-fact to assign and transfer unto the Company (or such designee), such
Restricted Shares, if any, pursuant to Section 3.1.

     (b) The Secretary, or other escrow agent, shall not be liable for any act he or she may do or omit
to do with respect to holding the Restricted Shares in escrow and while acting in good faith and in
the exercise of his or her judgment.

Section 3.6. Vested Shares – No Restrictions.

     (a) As and to the extent the Restricted Shares vest in accordance with the terms of this Agreement
and the Signature Page, the Restrictions on such shares shall lapse and, subject to compliance with
Section 3.6(b), vested Restricted Shares shall be released from any escrow and delivered to the
Holder or for the benefit of his or her account without the legend referenced in Section 3.7. Such
vested shares shall cease to be considered Restricted Shares subject to the terms and conditions of
this Agreement, and shall be shares of Common Stock of the Company free of all Restrictions.

     (b) Notwithstanding the foregoing Section 3.6(a), vested shares shall not be delivered to the
Holder or for the benefit of or to his account unless and until the Holder shall have paid to the
Company in cash or made provisions for payment through withholding against income, the full amount
of all federal and state (or applicable foreign) withholding or other employment taxes applicable
to the taxable income of the Holder resulting from the grant of the shares of Common Stock or the
lapse or removal of the Restrictions.

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Section 3.7.
Restrictive Legends and Stop Transfer Orders.

     (a) Any share certificate(s) (or electronic entry) evidencing the Restricted Shares issued
hereunder shall be endorsed with the following legend and any other legend required by any
applicable federal and state securities laws:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A RIGHT OF
REPURCHASE IN FAVOR OF THE COMPANY AND MAY BE TRANSFERRED ONLY IN ACCORDANCE
WITH THE TERMS OF A RESTRICTED SHARES AGREEMENT BETWEEN THE COMPANY AND THE
STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

     (b) Holder agrees that, in order to ensure compliance with the restrictions referred to
herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if
any, and that, if the Company transfers its own securities, it may make appropriate notations to
the same effect in its own records.

     (c) The Company shall not be required: (i) to transfer on its books any shares of Common
Stock that have been sold or otherwise transferred in violation of any of the provisions of this
Agreement, or (ii) to treat as owner of such shares of Common Stock or to accord the right to vote
or pay dividends to any purchaser or other transferee to whom such shares shall have been so
transferred.

ARTICLE
IV.

OTHER PROVISIONS

Section 4.1. Administration

     The Administrator shall have the power to interpret the Plan and this Agreement and to adopt
such rules for the administration, interpretation and application of the Plan as are consistent
therewith and to interpret or revoke any such rules. All actions taken and all interpretations and
determinations made by the Administrator in good faith shall be final and binding upon the Holder,
the Company and all other interested persons. No member of the Administrator shall be personally
liable for any action, determination or interpretation made in good faith with respect to the Plan
or the Restricted Shares. In its absolute discretion, the Board may at any time and from time to
time exercise any and all rights and duties of the Administrator under this Plan except with
respect to matters which under Rule 16b-3 or Section 162(m) of the Code, or any regulations or
rules issued thereunder, are required to be determined in the sole discretion of the Compensation
Committee.

Section 4.2. Withholding Taxes

     Holder agrees that in the event the issuance of the Restricted Shares pursuant to this
Agreement or the vesting of the Restricted Shares or the expiration or removal of Restrictions
thereon results in the Holder’s realization of income which for federal, state or local income or
employment tax purposes is, in the opinion of the Company, subject to withholding of tax at source
by the Company, the Holder will pay to the Company an amount equal to such withholding tax or the
Company may withhold such amount from the Holder’s salary or from dividends deposited with the
Company with respect to the Restricted Stock. The Committee, in its discretion, may also permit
the withholding of vested shares of Common Stock in payment of the tax withholding obligation to
the extent permitted by the Plan and provided such share withholding will not result in any adverse
accounting consequences to the Company.

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Section 4.3. Adjustment for Stock Split etc.

     In the event of any stock dividend, stock split, reverse stock split, recapitalization,
combination, reclassification, or similar change in the capital structure of the Company, the
Administrator shall make appropriate and equitable adjustments in the Restricted Shares, consistent
with the terms of the Plan. The provisions of this Agreement shall apply, to the full extent set
forth herein with respect to the Restricted Shares, to any and all shares of capital stock or other
securities which may be issued in respect of, in exchange for, or in substitution of the Restricted
Shares, and shall be appropriately adjusted for any stock dividends, splits, reverse splits,
combinations, recapitalizations and the like occurring after the date hereof.

Section 4.4. Taxes Consequences; Section 83(b) Election 

     Holder has reviewed with Holder’s own tax advisors the federal, state, local and foreign tax
consequences of this investment and the transactions contemplated by the Signature Page and this
Agreement. Holder is relying solely on such advisors and not on any statements or representations
of the Company or any of its agents. Holder understands that Holder (and not the Company) shall be
responsible for Holder’s own tax liability that may arise as a result of this investment or the
transactions contemplated by this Agreement. Holder understands that Holder will recognize
ordinary income for federal income tax purposes under Section 83 of the Code as and when
the Restrictions applicable to such shares lapse. Holder understands that Holder may elect to be
taxed for federal income tax purposes at the time the Shares are purchased rather than as and when
the Restrictions applicable to such shares lapse by filing an election under Section 83(b) of the
Code with the Internal Revenue Service within thirty (30) days from the date of purchase.

     HOLDER ACKNOWLEDGES THAT IT IS HOLDER’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO TIMELY
FILE THE ELECTION UNDER SECTION 83(b), EVEN IF HOLDER REQUESTS THE COMPANY OR ITS REPRESENTATIVES
TO MAKE THIS FILING ON HOLDER’S BEHALF.

Section 4.5. Conditions to Issuance of Stock Certificates or Electronic Delivery of the
Shares

     The Restricted Shares, or any portion thereof, may be either previously authorized but
unissued shares or issued shares of Common Stock that have then been reacquired by the Company.
The Company shall not be required to issue, deliver any certificate or certificates or
electronically deliver the Restricted Shares or portion thereof prior to fulfillment of all of the
following conditions:

     (a) The admission of such shares to listing on all stock exchanges on which such class of stock is
then listed;

     (b) The completion and continued availability of any registration or other qualification of such
shares under any state or federal law or under rulings or regulations of the Securities and
Exchange Commission or of any other governmental regulatory body, which the Administrator shall, in
its absolute discretion, deem necessary or advisable;

     (c) The obtaining of any approval or other clearance from any state or federal governmental agency
which the Administrator shall, in its absolute discretion, determine to be necessary or advisable;

     (d) The receipt by the Company (or Affiliate) of all amounts which, under federal, state or local
tax law, it is required to withhold upon the issuance of such shares; and

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     (e) The lapse of such reasonable period of time following the Issuance Date set forth on the
Signature Page as the Administrator may from time to time establish for reasons of administrative
convenience.

Section 4.6.
Limitations Applicable to Section 16 Persons.

     Notwithstanding any other provision of the Plan or this Agreement, if Holder is subject to
Section 16 of the Exchange Act, the Plan, the Restricted Shares and this Agreement shall be subject
to any additional limitations set forth in any applicable exemptive rule under Section 16 of the
Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for
the application of such exemptive rule. To the extent permitted by applicable law, this Agreement
shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

Section 4.7.
Notices

     Any notice to be given under the terms of this Agreement to the Company shall be addressed to
the Company in care of its Secretary, and any notice to be given to the Holder shall be addressed
to him at the address given beneath his signature hereto. By a notice given pursuant to this
Section 5.6 either party may hereafter designate a different address for notices to be given. Any
notice, which is required to be given to the Holder, shall, if the Holder is then deceased, be
given to the Holder’s personal representative if such representative has previously informed the
Company of his status and address by written notice under this Section 4.7 Any notice shall be
deemed duly given when delivered in person or enclosed in a properly sealed envelope or wrapper
addressed as aforesaid, deposited (with postage prepaid) in a post office or branch post office
regularly maintained by the United States Postal Service.

Section 4.8.
Titles

     Titles are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement.

Section 4.9.
Construction

     This Agreement shall be administered, interpreted and enforced under the laws of the State of
Texas.

Section 4.10.
Conformity to Securities Laws

     Holder acknowledges that the Plan is intended to conform to the extent necessary with all
provisions of the Securities Act and the Exchange Act and any and all regulations and rules
promulgated by the Securities and Exchange Commission thereunder, and state securities laws and
regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered, and
the Shares are to be issued, only in such a manner as to conform to such laws, rules and
regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be
deemed amended to the extent necessary to conform to such laws, rules and regulations.

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Section 4.11.
Arbitration

     This Section 4.11 shall only apply to Holder’s who are employed with the Company or any
Subsidiary. In exchange for the Restricted Shares issued herein and the other promises exchanged
herein, the parties agree to submit any and all disputes, claims or controversies arising out of,
or relating to, Holder’s employment, to final and binding arbitration before the American
Arbitration Association in accordance with its rules relating to the resolution of employment
disputes, in effect at the time of the demand for arbitration. THE COMPANY AND THE HOLDER
UNDERSTAND AND AGREE THAT BY AGREEING TO THE PROVISIONS OF THIS SECTION 4.11 THEY ARE WAIVING THEIR
RIGHT TO A JURY OR COURT TRIAL.

     This Section 4.11 expressly applies to all claims arising out of and relating to Holder’s
employment, including without limitation to, any claims of employment discrimination, harassment,
retaliation and any other employment related claim. This Section 4.11 expressly applies, but is
not limited, to claims brought under Title VII of the Civil Rights Act, the Age Discrimination in
Employment Act, the Family Medical Leave Act, the Americans with Disabilities Act, the California
Labor Code, the Texas Labor Code, the Fair Employment and Housing Act, and all other state and
local laws. This Section 4.11 does not apply to those claims where expressly prohibited by law,
such as claims arising under the National Labor Relations Act, claims for medical and disability
benefits under applicable Workers’ Compensation statues and claims for unemployment benefits.
Holders, officers, Board members and anyone else acting as an agent of the Company or any Affiliate
are intended beneficiaries of this Section 4.11 and the parties agree that any claim against an
intended beneficiary of this Section 4.11 arising out of or relating to Holder’s employment will be
subject to this Section 4.11.

     This Section 4.11 may be enforced by any court of competent jurisdiction, and the party
seeking enforcement shall be entitled to an award of all costs, fees and expenses, including
attorneys’ fees, to be paid by the party against whom enforcement is ordered.

     The arbitration shall be held at the office of the American Arbitration Association in Harris
County, Texas before a single neutral arbitrator. The Company shall assume responsibility for any
costs payable to the American Arbitration Association in connection with the arbitration, including
the costs and fees of the arbitrator. However, the arbitrator shall make such orders with respect
to attorneys’ fees and other costs in accordance with applicable law.

     The award or decision of the arbitrator shall be final and binding on the parties and judgment
on the arbitrator’s decision may be entered in any court having jurisdiction. Each of the parties
consents to the exercise of personal jurisdiction over such person by such court and to the
propriety of venue of such court for the purpose of carrying out this provision; and each waives
any objections that such person would otherwise have to the same.

     This Section 4.11 shall in no way effect Holder’s or the Company’s right to seek emergency
injunctive relief from a court of competent jurisdiction, which relief may remain in full force and
effect pending the outcome of the arbitration proceedings.

     Notwithstanding the foregoing, the provisions of this Section 4.11 shall be deemed modified
and/or superceded to the extent necessary to be consistent with any applicable terms contained in
any employment agreement or other agreement between the Company and the Holder, which agreement
shall take precedence over this Section 4.11.

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Section 4.12. Amendments

     This Agreement may not be modified or amended in any way that adversely affects the Holder’s
rights hereunder, except by an instrument in writing signed by the Holder and by a duly authorized
representative of the Company.

Section 4.13. No Employment Rights

     Nothing in the Plan or this Agreement shall confer upon Holder any right to continue in the
employ of the Company or any Affiliate or shall interfere with or restrict in any way the rights of
the Company and Affiliates, which are expressly reserved, to discharge Holder at any time for any
reason whatsoever, with or without cause, except to the extent expressly provided otherwise in a
written agreement between the Company and Holder.

Section 4.14. Successors and Assigns

     The Company may assign any of its rights under this Agreement to single or multiple assignees,
and this Agreement shall inure to the benefit of the successors and assigns of the Company.
Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon
Holder and his or her heirs, executors, administrators, successors and assigns.

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