Document:

exv10w8

 

FORM OF
AMENDMENT TO NON-QUALIFIED STOCK OPTION AGREEMENT

     THIS AMENDMENT TO NON-QUALIFIED STOCK OPTION AGREEMENT (this “Amendment”) is entered
into as of April 20, 2008, but to be effective as provided in Section 5 hereof, by and
between Grey Wolf, Inc., a Texas corporation (the “Company”), and [                                         ] (the
“Grantee”).

RECITALS:

     A. The Company and the Grantee entered into one or more Non-Qualified Stock Option Agreements
as set forth on the attached Exhibit A (each, an “Award Agreement”) setting forth certain
agreements regarding the Company’s grant to the Grantee of options to purchase shares of common
stock of the Company pursuant to the Company’s 2003 Incentive Plan.

     B. The Company and the Grantee desire to amend each Award Agreement as provided herein.

AGREEMENT:

     NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants and
agreements contained herein, the parties hereby agree as follows:

     1. The Company and the Grantee hereby amend each Award Agreement by deleting Section 12(f) in
its entirety and replacing it with the following:

“f. Change of Control. The Grantee may exercise this Option as to all of the Shares
subject to this Option (whether previously exercisable or not, i.e., whether vested
or unvested) on or before the expiration of the Expiration Date if (i) a Change of
Control of the Company shall be deemed to have occurred and (ii) within two (2)
years after the date a Change of Control of the Company shall be deemed to have
occurred, Grantee’s employment with the Company or a parent or subsidiary
corporation of the Company is terminated for any reason other than voluntary
resignation, retirement, death, Disability or Cause. For purposes hereof, voluntary
resignation shall not include (1) a termination without Cause or a constructive
termination without Cause as described in any employment agreement between the
Grantee and the Company, or (2) a “Qualifying Termination” as defined in the
Company’s Executive Severance Plan if the Grantee is a “Participant” under such
Executive Severance Plan.

A “Change in Control” of the Company shall be deemed to occur if:

     (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934 (the “Act”)) is or becomes the “beneficial owner”
(as defined in Rule 13d-3 under the Act), directly or indirectly, of securities of
the Company representing fifty percent 50% or more of the combined voting power of
the Company’s then outstanding securities;

 

 

     (ii) there occurs a proxy contest or a consent solicitation, or the Company is
a party to a merger, consolidation, sale of assets, plan of liquidation or other
reorganization as a consequence of which members of the Board of Directors in office
immediately prior to such transaction or event constitute less than a majority of
the Board of Directors thereafter;

     (iii) during any period of two consecutive years, other than as a result of an
event described in clause (ii) of this Section 12(f), individuals who at the
beginning of such period constituted the Board of Directors (including for this
purpose any new director whose election or nomination for election by the Company’s
stockholders was approved by a vote of at least a majority of the directors then
still in office who were directors at the beginning of such period) cease for any
reason to constitute at least a majority of the Board of Directors;

     (iv) the shareholders of the Company approve a reorganization, merger,
consolidation or similar business combination involving the Company (a “Merger”),
unless immediately following such Merger, substantially all of the holders of the
then outstanding shares of common stock of the Company (the “Outstanding Company
Voting Securities”) immediately prior to the Merger beneficially own, directly or
indirectly, more than fifty percent (50%) of the common stock of the corporation
resulting from such Merger (or its parent corporation) in substantially the same
proportions as their ownership of Outstanding Company Voting Securities immediately
prior to such Merger;

     (v) all or substantially all of the assets of the Company and its subsidiaries
are sold or otherwise disposed of (including through sale or other disposition of
the stock of such subsidiaries), unless immediately following such sale or other
disposition, substantially all of the holders of the Outstanding Company Voting
Securities immediately prior to the consummation of such sale or other disposition
beneficially own, directly or indirectly, more than fifty percent (50%) of the
common stock of the corporation acquiring such assets in substantially the same
proportions as their ownership of Outstanding Company Voting Securities immediately
prior to the consummation of such sale or disposition; or

     (vi) any other event that a majority of the Board of Directors, in its sole
discretion, shall determine constitutes a Change in Control hereunder; or

     (vii) upon the effectiveness of the proposed merger, consolidation or other
business combination of the Company and Basic Energy Services, Inc., a Delaware
corporation, into each other or a new corporation, however structured.”

     2. This Amendment, which may be executed in one or more counterparts, is executed as and shall
constitute an amendment to each Award Agreement, and shall be construed in connection with and as a
part of each Award Agreement. Except as amended by this Amendment, all the terms and provisions of
each Award Agreement shall remain in full force and effect.

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     3. This Amendment embodies the entire agreement and understanding between the parties related
to the subject matter hereof, and supersedes and replaces any other agreement or understanding
between the parties regarding the subject matter of this Amendment, whether written or oral, prior
to this Amendment. This Amendment may not be modified, amended, varied or supplemented except by
an instrument in writing signed by the parties.

     4. This Amendment shall be interpreted and enforced in accordance with the laws of the State
of Texas, without regard to any conflict of laws rule or provision.

     5. This Amendment shall become effective immediately prior to the effectiveness of the
proposed merger, consolidation or other business combination of the Company and Basic Energy
Services, Inc., a Delaware corporation, into each other or a new corporation, however structured
(the “Proposed Merger”). If the Proposed Merger is not effective for any reason on or before
November 30, 2008, this Amendment shall terminate and be of no further force or effect.

     IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date first above
written.

	 	 	 	 	 
	 	GREY WOLF, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	 	 
	 	[                                        ] 	 
	 	 	 
	 

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EXHIBIT A

TO

AMENDMENT TO NON-QUALIFIED STOCK OPTION AGREEMENT

[                                        ]

	 	 	 	 	 	 	 
	 	 	 	 	Number of	 	Number of Shares
	Grant Date	 	Exercise Price	 	Shares Granted	 	Currently Unvested
	[                    ]
	 	[                    ]
	 	[                    ]
	 	[                    ]
	[                    ]
	 	[                    ]
	 	[                    ]
	 	[                    ]
	[                    ]
	 	[                    ]
	 	[                    ]
	 	[                    ]
	[                    ]
	 	[                    ]
	 	[                    ]
	 	[                    ]
	[                    ]
	 	[                    ]
	 	[                    ]
	 	[                    ]exv10w9

 

CONSULTING AGREEMENT

     This CONSULTING AGREEMENT (this “Agreement”) is entered into effective as of the Effective
Date (as defined in Section 16) by and between GREY WOLF, INC., a Texas corporation (the
“Company”), and THOMAS P. RICHARDS (“Consultant”).

     WHEREAS, the Consultant is the President and Chief Executive Officer of the Company; and

     WHEREAS, the Company desires Consultant to assist the Company and its successor in the
integration of operations and personnel after the consummation of the proposed merger,
consolidation or other business combination of the Company and Basic Energy Services, Inc., a
Delaware corporation, into each other or a new corporation (“New Grey Wolf”), however structured
(the “Proposed Merger”), and Consultant desires to provide such services to the Company and New
Grey Wolf, upon the terms and conditions hereof.

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

     1. Agreement to Consult. As of the Effective Date and upon the terms and conditions
hereinafter set forth, the Company (on behalf of itself and its successor, New Grey Wolf) hereby
retains Consultant as an independent contractor to render services as a consultant as provided in
this Agreement and Consultant hereby agrees to render such services to New Grey Wolf.

     2. Term. The term of this Agreement shall be for a period beginning on the Effective
Date and ending upon the earlier of (i) the date specified in any notice given by either party to
the other party which provides at least thirty (30) days prior written notice of termination or
(ii) the conclusion of New Grey Wolf’s annual shareholders meeting in 2009 (anticipated to be in
May, 2009) (the “Term”).

     3. Duties. Consultant shall assist the executive management of New Grey Wolf in the
integration of the operations and personnel of the businesses combined through the Proposed Merger.
Consultant will coordinate with the Chief Executive Officer of New Grey Wolf in performing such
duties. The Company and Consultant understand that the duties and time commitment by Consultant
pursuant to this Agreement are not anticipated to exceed twenty percent (20%) of the time spent by
Consultant as President and Chief Executive Officer of the Company.

     4. Non-Exclusive Services. During the Term, Consultant may take other employment and
participate in other business endeavors that do not materially conflict with Consultant’s duties
under this Agreement.

     5. Consulting Fee. In consideration for the performance of Consultant’s duties
hereunder, Consultant shall be entitled to receive a fee (the “Consulting Fee”) at the annual rate

 

 

of $400,000 payable monthly for each month in which Consultant performs any services for New
Grey Wolf pursuant to this Agreement; provided, however, that the amount of the Consulting Fee
payable to Consultant shall be reduced by the amount of any director’s fees (other than equity
grants and expense reimbursements) earned by Consultant as a director of New Grey Wolf during the
Term. Consultant shall provide such written documentation to New Grey Wolf as New Grey Wolf may
reasonably request on a monthly basis generally describing the services performed by Consultant on
behalf of New Grey Wolf during the preceding month. Payment of the Consulting Fee shall be due on
the last day of each month during the Term. New Grey Wolf shall provide Consultant with an
appropriate office and an assistant for Consultant’s use, at the executive offices of New Grey Wolf
or such other location as may be agreed by the parties from time to time, in connection with the
performance of Consultant’s duties under this Agreement. Except for the Consulting Fee, providing
an office and assistant and reimbursement of reasonable and necessary business expenses incurred by
Consultant in the performance of his services under this Agreement, or as specifically agreed by
the parties in writing, Consultant shall not be entitled to receive any payments, benefits, or
other remuneration or compensation from the Company or New Grey Wolf for the services rendered by
Consultant pursuant to the terms of this Agreement.

     6. Taxes. Consultant shall pay all Taxes (as that term is hereinafter defined) and
agrees to indemnify the Company and New Grey Wolf and hold the Company and New Grey Wolf harmless
from any and all Taxes payable by Consultant in connection with the payments received by Consultant
pursuant to this Agreement. As used herein, the term “Taxes” shall mean all taxes, assessments,
charges or fees assessed or levied by any federal, state or local government or political
subdivision thereof against Consultant (including, without limitation, all income and
self-employment taxes), in connection with the services provided or work produced hereunder,
whether assessed or levied against Consultant or the Company or New Grey Wolf, and in connection
with any compensation paid or earned, or benefits earned (if so provided for herein) hereunder.

     7. Insurance and Indemnity. During the term of this Agreement, New Grey Wolf shall
provide general liability insurance coverage to Consultant for Consultant’s services under this
Agreement. In addition, New Grey Wolf shall, to the maximum extent permitted by law, indemnify the
Consultant if he is made, or threatened to be made, a party to any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or investigative, including an
action by or in the right of New Grey Wolf to procure judgment in its favor (collectively referred
to as a “Proceeding”) by reason of the fact that Consultant is or was a consultant to New Grey
Wolf, or is or was serving in any capacity at the request of New Grey Wolf for any other
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, against
judgments, fines, penalties, excise taxes, amounts paid in settlement and costs, charges and
expenses (including attorneys fees and disbursements) paid or incurred in connection with any such
Proceeding. New Grey Wolf shall, from time to time, reimburse or advance to Consultant the funds
necessary for payment of expenses, including attorneys fees and disbursements incurred in
connection with any Proceeding in advance of the final disposition of such Proceedings; provided,
however, that if required under any applicable corporate statute, such expenses incurred by or on
behalf of the Consultant may be paid in advance of the final disposition of a Proceeding only upon
receipt by New Grey Wolf of an undertaking, by or on behalf of the Consultant, to repay any such
amount so advanced if it shall ultimately be

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determined by final judicial decision from which there is no right of appeal that the
Consultant is not entitled to be indemnified for such expenses. The right to indemnification and
reimbursement or advancement of expenses provided herein shall continue as to the Consultant after
he ceases to be a consultant and shall inure to the benefit of the heirs, executors and
administrators of the Consultant’s estate.

     8. Independent Contractor Status. It is understood and agreed that the detailed
manner and method of performing the duties of Consultant described herein shall at all times be
under the Consultant’s control and direction. It is understood and agreed that for purposes of
this Agreement, Consultant is an independent contractor. Consultant shall not be considered an
employee of New Grey Wolf. Except as otherwise due Consultant under agreements with the Company or
in his capacity as a director of the Company or New Grey Wolf, Consultant shall not be entitled to
the benefits of an employee of New Grey Wolf, such as, but not limited to, workmen’s compensation,
group insurance, vacation, pension and unemployment insurance. As an independent contractor,
Consultant assumes all legal contractual obligations arising out of the performance of Consultant’s
duties, including without limitation, the payment of all employment, compensation, insurance, old
age benefits, social security or other Taxes.

     9. Notice. Any notice provided for or permitted to be given under this Agreement by
any party to the other party must be in writing, and may be served by depositing same in the United
States mail, addressed as provided below, postage prepaid, by delivering the same in person to such
party, or by facsimile. Notice deposited in the mail in the manner described above shall be deemed
to have been given and received three business days after deposit in the United States mail; notice
given in any other matter shall be effective upon the receipt thereof. For purposes of notice, the
address of each of the parties shall be as set forth opposite their respective names below, or such
other address as such party shall fix by notice in writing, given as provided herein, the other
party to this Agreement.

     If to the Company or New Grey Wolf:

Grey Wolf, Inc.

10770 Richmond Avenue, Suite 600

Houston, Texas 77042

Attention: Chief Executive Officer

     If to Consultant:

Thomas P. Richards

1318 Forest Brook

Sugar Land, Texas 77479

     10. Assignment. This Agreement is personal to Consultant, and Consultant shall not
have the right to assign any of Consultant’s rights or delegate any of Consultant’s duties
hereunder without the prior written consent of the Company. This Agreement shall be binding on and
inure to the benefit of the Company and its successors and assigns, and the Company agrees to cause
this Agreement to be expressly assumed by New Grey Wolf contemporaneously with the effectiveness of
the Proposed Merger.

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     11. Survival. Section 6 of this Agreement shall survive the termination of the
Services Period hereunder.

     12. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Texas, excluding any conflicts of law rule or principle
that might otherwise refer to the substantive law of another jurisdiction. The Company and
Consultant agree that the state and federal courts in Harris County, Texas, shall have exclusive
personal jurisdiction and venue over the parties to hear all disputes arising under this Agreement.
This Agreement is to be at least partially performed in Harris County, Texas.

     13. Entire Agreement. This Agreement constitutes the entire agreement between the
Company and Consultant with respect to the Consultant’s provision of consulting services to the
Company and supersedes all prior agreements and understanding, whether written or oral, between
them concerning the provisions of such consulting services. Notwithstanding the foregoing, this
Agreement does not supersede the terms and provisions of that certain Amended and Restated
Employment Agreement dated as of April 1, 2008, between the Company and Consultant (the “Employment
Agreement”) to the extent such terms and provisions survive the expiration of the term of the
Employment Agreement.

     14. Waiver and Amendments; Cumulative Rights and Remedies. This Agreement may be
amended, modified or supplemented, and any obligation hereunder may be waived, only by a written
instrument executed by the parties hereto. The waiver by either party of a breach of any provision
of this Agreement shall not operate as a waiver of any subsequent breach. No failure on the part
of any party to exercise, and no delay in exercising, any right or remedy hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any such right or remedy by such
party preclude any other or further exercise thereof or the exercise of any other right or remedy.
All rights and remedies hereunder are cumulative and are in addition to all other rights and
remedies provided by law, agreement or otherwise.

     15. Severability. In the event that any provision or provisions of this Agreement are
held to be invalid or unenforceable by any court of law or otherwise, the remaining provisions of
this Agreement shall nevertheless continue to be valid and enforceable as though the invalid or
unenforceable parts had not been included therein.

     16. Effective Date. This Agreement shall be effective as of the date of termination
of Consultant’s employment as President and Chief Executive Officer of the Company (the “Effective
Date”). If the Proposed Merger is not effective for any reason on or before November 30, 2008,
this Agreement shall terminate and be of no further force or effect.

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	GREY WOLF, INC.

 	 
	 	By:  	/s/ Robert Rose
 	 
	 	 	Name:  	Robert Rose 	 
	 	 	Title:  	Compensation Committee Chairman 	 
	 
	 	 	 
	 	                  /s/ Thomas P. Richards
 	 
	 	THOMAS P. RICHARDS 	 
	 	 	 
	 

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