Document:

exv10w1

Exhibit 10.1

AGREEMENT

     This Agreement (“Agreement”), dated August 20, 2008, is entered into between Pioneer
Drilling Company (the “Company”) and Joyce M. Schuldt (“Schuldt,” and together with
the Company, the “Parties”), and shall be effective as of the Effective Date (as defined
herein).

RECITALS:

     WHEREAS, Schuldt has been designated as a Level II participant in the Amended and Restated
Pioneer Drilling Services, Ltd. Key Executive Severance Plan (the “Plan”), pursuant to
which she is entitled to certain severance benefits upon her separation from the Company as further
described herein;

     WHEREAS, this Agreement is entered into by and between the Company and Schuldt for the purpose
of concluding their employment relationship;

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

     1. Definitions. As used in this Agreement, the following terms shall have the meaning
indicated:

          (a) “Affiliates” means when used with respect to a specified Person, any other Person
directly or indirectly controlling or controlled by or under direct or indirect common control with
the specified Person. For purposes of this definition “control”, when used with respect to
any specified Person, means the power to direct the management and policies of the Person, directly
or indirectly, whether through the ownership of voting securities, by contract, by family
relationship or otherwise; and the terms “controlling” and “controlled” have the
meanings correlative to the foregoing.

          (b) “Person” refers to and includes any individual, corporation (including any
non-profit corporation), general or limited partnership, limited liability company, joint venture,
estate, trust, organization, or other entity.

          (c) “Pioneer Releasees” refers to the Company and its Affiliates and each of their
respective past or present officers, directors, partners, stockholders, agents, employees,
attorneys, trustees, successors and assigns and/or any or all of them.

          (d) “Schuldt Releasees” refers to Schuldt, her heirs, assigns, executors, and personal
representatives and/or any or all of them.

     2. Resignations. As of the Effective Date, Schuldt hereby resigns from her positions
as a director, officer and employee of the Company and its Affiliates, each as the case may be (the
“Resignations”) and the Company hereby accepts Schuldt’s Resignations. The Parties agree
that, for purposes of the Plan, Schuldt’s termination shall be deemed to be an “Involuntary
Termination” as such term is defined under the Plan.

     3. Severance Benefits. In consideration for this Agreement, and the covenants and
agreements contained herein, including, but not limited to, the waiver and release in Section 4
hereof, Schuldt shall be entitled to the following severance benefits:

 

 

          (a) A lump-sum cash payment of $900,000, as provided in Section 4.1(a) of the Plan, to be paid
to Schuldt on the Effective Date. On the Effective Date, the Company shall deposit such $900,000
into a trust to provide for the payment described in the preceding sentence. Such trust shall be
established by the Company on the Effective Date in accordance with the terms of the Trust
Agreement attached hereto as Appendix A. In addition to the foregoing, Schuldt may receive
an additional payment in respect of the earnings on the amount contributed to the trust established
under the terms of the Trust Agreement.

          (b) Acceleration of the vesting of an aggregate of 41,666 shares of Common Stock subject to
those outstanding stock option awards granted to Schuldt on July 18, 2007 (collectively, the
“July 2007 Option Award”), as provided in Section 4.2(a) of the Plan. The July 2007 Option
Award was for an aggregate of 125,000 shares of Common Stock, of which 41,666 shares vested on July
18, 2008, 41,666 shares are vesting pursuant to the terms of this Agreement, and 41,666 shares
terminate as of the Effective Date. Following the Effective Date, the shares of Common Stock
subject to the July 2007 Option Award, to the extent not terminated hereby, will remain subject to
all other terms and conditions of that Incentive Stock Option Agreement and Non-Qualified Stock
Option Agreement, as the case may be, both dated July 18, 2007, by and between Schuldt and the
Company, and the terms and conditions of the Pioneer Drilling Company 2003 Stock Plan. Schuldt
acknowledges and agrees that any portion of the July 2007 Option Award that remains unexercised
following the three (3) month anniversary of the Effective Date will terminate.

          (c) Continuation of life insurance coverage and coverage under the Company’s medical benefits
plan for twelve (12) months following the Effective Date (the “Coverage Expiration Date”),
as provided in, and to the extent of, Section 4.3(a) of the Plan.

          (d) For eighteen (18) months following the Coverage Expiration Date, Schuldt is eligible to
commence continued medical coverage in accordance with Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended, as provided in, and to the extent of, Section 4.3(a) of the Plan.

          (e) A stock option award (“Option Award”) of 20,881 shares of the Company’s Common
Stock with an exercise price equal to the closing sale price of the Common Stock on August 18, 2008
(the “Grant Date”) as reported by the American Stock Exchange. The Option Award will be
granted pursuant to the terms and conditions of the Pioneer Drilling Company 2007 Stock Plan and
that form of Stock Option Agreement attached as Appendix B of this Agreement. The Option
Award is fully vested upon the Effective Date (but shall be forfeited if the Effective Date does
not occur) and, once vested, will remain exercisable through the three (3) month anniversary of the
Effective Date. Following the three (3) month anniversary of the Effective Date, the Option Award
will terminate to the extent unexercised.

          (f) A stock award (“Stock Award”) of 3,645 shares of Common Stock. The Stock Award
will be granted pursuant to the terms and conditions of the Pioneer Drilling Company 2007 Stock
Plan and that form of Restricted Stock Agreement attached as Appendix C of this Agreement.
The Stock Award will be fully vested upon the Effective Date (but shall be forfeited if the
Effective Date does not occur).

          The number of shares subject to the awards in (e) and (f) above have been calculated based on
2.1 times Schuldt’s base salary with the allocation between option awards and restricted stock
awards being 70% and 30%, respectively, of the dollar amount of such awards. The Compensation
Committee of the Company will be using the same 70% option award/30% restricted stock award
methodology for the other named executive officers of the Company for equity awards being made for
the 2008 incentive plan year.

2

 

          (g) A cash incentive award for the period ended March 31, 2008 in the amount of $113,817.
This cash incentive award was calculated using the target as the measurement level for Schuldt’s
personal objectives. The Compensation Committee will not be using a higher measurement level with
respect to personal objectives for determing the cash incentive award for this period for any of
the other named executive officers in the Company’s proxy statement dated April 14, 2008.

          (h) A lump-sum cash payment of $16,948.92, which is equal to existing unpaid relocation
expenses incurred by Schuldt in connection with her relocation from St. Louis, Missouri, to San
Antonio, Texas, in July 2007, grossed-up to pay taxes in connection therewith as, and to the
extent, provided in the Company’s Relocation Plan.

          (i) A lump-sum cash payment of $25,457.62, for certain unpaid consulting fees owed to Schuldt
for the period prior to her employment with the Company.

          (j) A lump-sum cash payment of $730.25, for certain unpaid employee expenses.

          (k) Reimbursement of Schuldt’s legal fees and expenses incurred in connection with the
internal investigation by the special committee of the Company’s Board of Directors and this
Agreement.

          (l) Payment of Schuldt’s accrued but unpaid base salary through the Effective Date.

          (m) Payment for Schuldt’s vacation days accrued as of the Effective Date but untaken, if any,
to the extent and in the manner provided by Company policy for its employees generally.

          Schuldt acknowledges and agrees (i) that all payments and benefits provided in this Section 3
will be made net of any applicable withholding requirements of federal, state or local law, and
(ii) that other than as provided in this Section 3, Schuldt is not due, and no other compensation
or benefits shall be paid to, Schuldt. It is acknowledged and agreed by Schuldt that Section 3
sets forth all of the compensation and benefits to which she is entitled under the Plan or
otherwise.

     4. Waiver and Release.

          (a) In consideration for entering into this Agreement, and the acts, payments, covenants and
agreements of the Parties described and contained herein, receipt and sufficiency of which is
hereby acknowledged and confessed, Schuldt does hereby fully, finally and forever release, acquit,
and discharge, and by these presents does for herself, her heirs, executors, administrators,
successors and assigns, release, acquit, and forever discharge, the Pioneer Releasees from any and
all claims, liabilities, demands, debts, accounts, obligations, actions and causes of action, of
whatsoever nature, known or unknown, at law or in equity, vested or contingent, whether sounding in
contract, statute, tort, fraud, misrepresentation or other theory of liability, which Schuldt, in
whatever capacity including as an employee or stockholder of the Company or any of its Affiliates,
had, has or may have against Pioneer Releasees arising at any time in the unlimited past to and
including the date of this Agreement, including, but without limiting the generality of the
foregoing, any and all matters arising out of or in any manner whatsoever connected with Schuldt’s
employment with the Company, the ending of that employment, the resignation of Schuldt from any and
all employee, officer and/or director positions in accordance with the terms hereof, or any causes
of action Schuldt had, have or may have as a result of her ownership of stock in the Company
(including stockholder derivative claims). Without limiting the generality of the foregoing, the
Parties acknowledge and agree that among those claims released are those arising under Title VII of
the Civil Rights Act of 1964, as amended (“Title VII”); the Age Discrimination in Employment Act of
1967, as amended, including the Older Workers Benefit Protection Act of 1990

3

 

(“ADEA”); the Civil Rights Act of 1866, as amended; the Civil Rights Act of 1991; the
Americans with Disabilities Act of 1990 (“ADA”); the Energy Reorganization Act, as amended, 42
U.S.C. § 5851; the Workers Adjustment and Retraining Notification Act of 1988; the Pregnancy
Discrimination Act of 1978; the Employee Retirement Income Security Act of 1974, as amended; the
Family and Medical Leave Act of 1993; the Fair Labor Standards Act; the Occupational Safety and
Health Act; the Texas Labor Code § 21.001 et seq.; the Texas Labor Code; claims in connection with
workers’ compensation or “whistle blower” statutes. Schuldt acknowledges that payment of amounts
to Schuldt by the Company pursuant to this Agreement is not an admission by the Pioneer Releasees
that they engaged in any wrongful or unlawful act or that the Pioneer Releasees violated any
federal or state law or regulation.

          (b) In consideration for entering into this Agreement, and the acts, payments, covenants and
agreements of the Parties described and contained herein, receipt and sufficiency of which are
hereby acknowledged and confessed, the Company, on behalf of itself and its Affiliates, does hereby
fully, finally and forever release, acquit, and discharge, and by these presents does for the
Company and its Affiliates, and the successors and assigns of the Company and its Affiliates,
release, acquit, and forever discharge the Schuldt Releasees from any and all claims, liabilities,
demands, debts, accounts, obligations, actions and causes of action, of whatsoever nature, known or
unknown, at law or in equity, vested or contingent, whether sounding in contract, statute, tort,
fraud, misrepresentation or other theory of liability, which the Company or its Affiliates has, had
or may have against the Schuldt Releasees, arising at any time in the unlimited past to and
including the date of this Agreement, including, but without limiting the generality of the
foregoing, any and all matters arising out of or in any manner whatsoever connected with Schuldt’s
employment with the Company or the ending of that employment.

          (c) Schuldt further acknowledges and agrees that this Agreement shall operate as a complete
bar of any and all litigation, charges, complaints, grievances or demands of any kind whatsoever
now pending or now contemplated by Schuldt, in whatever capacity including as an employee, officer,
director or stockholder of the Company, or which might at any time be filed by Schuldt against the
Pioneer Releasees, arising at any time in the unlimited past to and including the date of this
Agreement, including, but without limiting the generality of the foregoing, any and all matters
arising out or in any manner whatsoever connected with Schuldt’s employment with the Company, the
severance of that employment, or any causes of action Schuldt might have as a result of her
ownership of stock (including stockholder derivative claims) that might at any time be filed by
Schuldt or on Schuldt’s behalf against the Pioneer Releasees. Each and all of the aforesaid claims
are hereby fully and finally settled, compromised and released. The Company further acknowledges
and agrees that this Agreement shall operate as a complete bar of any and all litigation, charges,
complaints, grievances or demands of any kind whatsoever now pending or now contemplated by the
Company, in whatever capacity, or which might at any time be filed by the Company against Schuldt,
arising at any time in the unlimited past to and including the date of this Agreement. Each and
all of the aforesaid claims are hereby fully and finally settled, compromised and released.

          (d) Schuldt warrants that she has not filed any action, charge or claim of any type against
the Pioneer Releasees. Schuldt also warrants that she has not assigned and will not assign any
claim that Schuldt might have or might have had against the Pioneer Releasees. In the event that
any such actions, charges or claims are discovered, Schuldt agrees to immediately dismiss them with
prejudice and indemnify the Pioneer Releasees with respect to same.

          (e) Schuldt agrees and covenants that she will not initiate or bring, or have initiated or
brought on her behalf, any suit (legal or equitable), regarding any matter released herein,
including without limitation her employment with the Company or separation from that employment.

          (f) Nothing contained in this Section 4 or elsewhere in this Agreement shall be

4

 

construed to release or waive any claims for indemnification under any charter documents or
bylaws of the Company or its Affiliates or the existing director and officer indemnification
agreement entered into between Schuldt and an Affiliate of the Company.

          (g) Nothing contained in this Section 4 shall be construed as a release, discharge or waiver
by (i) any Party of any claim, demand or dispute arising out of any alleged breach of this
Agreement, or any individual term, condition or provision hereof, (ii) the Company or its
Affiliates for any claim or cause of action for criminal misconduct involving embezzlement or (iii)
co-payments under any health and benefit plan.

          (h) The Parties, and each of the them acknowledge, warrant, represent and agree that in
executing and delivering this Agreement, they do so freely, knowingly and voluntarily, that they
are fully aware of the contents and effect thereof and that such execution and delivery is not the
result of any fraud, duress, mistake or undue influence whatsoever.

          (i) It is acknowledged and understood by the Parties that the facts with respect to this
Agreement as given may hereafter turn out to be other than or different from the facts in that
connection now known to them or believed by them to be true, and the Parties therefore expressly
assume the risk of the facts being different and agree that this Agreement shall be in all respects
effective and not subject to termination, rescission or modification by any such difference in
facts.

          (j) Schuldt acknowledges that she has 21 days to consider whether to sign and execute this
Agreement.

          (k) Schuldt understands that she may revoke this Agreement for seven (7) days following her
signing of the Agreement, provided, that Schuldt’s written statement of revocation is received on
or before that seventh day by Human Resources Manager, Pioneer Drilling Company, 1250 N.E. Loop
410, Suite 1000, San Antonio, Texas 78209. Schuldt further understands that if after the seven (7)
day revocation period, she has not revoked the Agreement, the Agreement will then be considered
effective, irrevocable and enforceable. The waivers and releases set forth in this Section 4 shall
become effective on the Effective Date upon the payment by the Company of (i) the amounts required
to be paid pursuant to Section 3(a) of this Agreement to the trust established by the Trust
Agreement and (ii) the amounts required to be paid pursuant to Section 3(g) through Section 3(m),
inclusive, to Schuldt. Concurrently with the payment of the amounts described in the preceding
sentence, Schuldt shall provide the written acknowledgement of her receipt of all consideration
required under Section 3 (other than the insurance coverage described in Section 3(c) and Section
3(d)) attached as Appendix D.

     5. Mutual Non-Disparagement Covenant. The Parties agree not to directly, or
indirectly through any authorized agent, representative, Affiliate or other Person, and the Company
will use its reasonable best efforts to cause the “Key Employees” (as defined in the side letter
between Schuldt and the Company of even date herewith) and directors not to, make any statement or
representation (whether oral, written or electronic) of any type (whether direct or indirect,
implied or specific) to any Person that disparages in any material respect the other Party or the
other Party’s officers, directors, employees or Affiliates, as the case may be. This includes,
without limitation, communications with recruiters, bankers, investment bankers, investors,
employees, lawyers, accountants, regulators, educational institutions, country clubs, and any other
social organizations. Notwithstanding anything to the contrary in this Section 5, no statements
made in connection with any judicial, administrative or other governmental proceedings or
investigations, whether formal or informal, or any investigations at the direction of the Board of
Directors of the Company, will be deemed to be in violation of this Section 5 if made in good faith
and with an honest belief in the truthfulness of such statements.

5

 

     6. Confidentiality Covenant. Schuldt acknowledges that she has had access to
confidential and proprietary information of the Company and its Affiliates (“Confidential
Information”), including without limitation, information concerning policies, practices,
customers, pricing, costs, suppliers, methods, products, processes, techniques, finances,
administration, employees, devices, trade secrets, and operations of the Company and its
Affiliates. Schuldt agrees that in further consideration for the severance benefits set forth in
Section 3 of this Agreement, Schuldt will not disclose to any Person, or use for her own benefit or
for the benefit of anyone else or any other Person, the Confidential Information; provided,
however, that Schuldt shall not be prohibited from disclosing Confidential Information pursuant to
a lawful and properly authorized subpoena, court order or other mandatory legal process. This
Agreement does not restrict the use or disclosure of information that (a) is available to the
general public, (b) Schuldt had in her possession prior to working for the Company, or (c) Schuldt
received from a source outside the Company, without obligation of confidentiality. This Agreement
does not affect Schuldt’s obligations or the Company’s rights under any confidentiality, secrecy or
proprietary information or intellectual property agreement; or any laws governing such matters.

     7. Cooperation Covenant.

          (a) Schuldt agrees that she will cooperate with the Company and its Affiliates, officers,
directors, employees, representatives and agents (collectively, “Company Representatives”)
by responding to questions, attending meetings, depositions, administrative proceedings, court
hearings, and trials, or otherwise, in each case as may be reasonably required for full and
reasonable cooperation, with respect to any existing or future claims, investigations (including
the continuing internal investigation by the special committee of the Company’s Board of Directors
and any investigation by the Securities and Exchange Commission, American Stock Exchange or other
governmental or regulatory agency) and litigation of which Schuldt has personal or corporate
knowledge based on omissions, acts, transactions or other events that occurred during Schuldt’s
employment with the Company or association with the Company and its Affiliates. Schuldt will
provide the first 30 hours of services requested by the Company hereunder without charge and the
Company will pay Schuldt at a rate of $350 per hour for all additional services requested by the
Company hereunder. In addition, the Company will reimburse Schuldt for her reasonable expenses
associated with such cooperation, including travel expenses, miscellaneous expenses and attorneys’
fees.

          (b) Schuldt agrees to maintain in strict confidence any information or knowledge she has
regarding current and/or future claims against, or litigation, administrative hearings or
investigations involving, the Pioneer Releasees. Schuldt further agrees that to ensure compliance
with the foregoing commitments, and in particular to protect against the disclosure of Confidential
Information, Schuldt will not knowingly, directly or indirectly, counsel, assist, aid or abet any
Person in the prosecution of a claim or suit against the Pioneer Releasees except, with respect to
a Pioneer Releasee other than Pioneer or one of its Affiliates, where such claim or suit does not
relate in any respect to the business of Pioneer or its Affiliates. As part of this agreement and
commitment, Schuldt shall not voluntarily (i.e. absent subpoena or court order or other mandatory
legal process) testify, whether by deposition, affidavit or in person, in any legal proceeding in
which the Company or any of its Affiliates is a defendant or prospective defendant. In the event
Schuldt receives notice of any type seeking to compel her to give testimony in any such proceeding
she will immediately upon receipt of such notice (i) provide the Company a copy of such notice,
subpoena, court order or other mandatory legal process seeking to compel her testimony, (ii)
refrain from communicating with the party or the parties’ representative initiating the process or
discovery with respect to such matters, and (iii) cooperate with the Company and its Affiliates in
protecting all Confidential Information pursuant to applicable ethical and legal requirements. It
is agreed and understood that nothing herein is intended to prevent Schuldt from complying with a
lawful and properly authorized subpoena, court order or other mandatory legal process based on the
advice of her legal counsel.

6

 

     8. Non-Publicity Covenant. The Parties agree to respond to any requests for
information from the press or other media, or potential employers, by stating that Schuldt
voluntarily resigned her employment with the Company and, in the case of potential employers, the
date of her employment and positions held with the Company.

     9. Arbitration. Except for the provisions of Section 5 (Non-Disparagement), Section 6
(Confidentiality), Section 7 (Cooperation), and Section 8 (Non-Publicity), all with respect to
which each of the Parties expressly reserves the right to petition a court directly for injunctive
and other equitable relief, any dispute regarding the interpretation or enforcement of any
provision of this Agreement shall be resolved by binding arbitration by a single arbitrator, chosen
in a manner agreed to by the Parties, or if they cannot agree, by a panel of three (3) arbitrators,
one selected by Schuldt, one selected by the Company and the third selected by the two thus chosen.
The Parties shall jointly share the cost of a single arbitrator, or, if a panel is selected, each
shall bear the cost in connection with its respective arbitrator, and shall jointly share in the
cost of the third arbitrator. Any arbitration conducted hereunder shall be conducted in accordance
with the then existing rules of the American Arbitration Association. The award of the arbitrator
shall be confirmed as necessary as a judgment by any court having competent jurisdiction. Any
disputes will be arbitrated in Bexar County, Texas. The parties to any such arbitration will make
every reasonable effort to commence the arbitration proceedings within thirty (30) days from the
date that either party first gives written notice to the other Party of its intention to submit a
dispute for arbitration.

     10. Severability. Should any provision or portion of a provision of this Agreement be
determined to be void by any court of competent jurisdiction, then such determination shall not
affect any other provision or the remainder of the affected provision of this Agreement, all of
which provisions shall remain in full force and effect; and it is the intention of the Parties that
if any provision of this Agreement is capable of two constructions, one of which would render the
provision void and the other of which would render the provision valid, then the provision shall
have the meaning that renders it valid.

     11. Understanding of the Parties. Each of the Parties further agrees and represents
that:

          (a) Each Party has had a reasonable and sufficient period of time within which to consider
this Agreement;

          (b) Each Party has fully read and understands the Agreement;

          (c) Each Party has executed this Agreement on its own free will and accord and for the
consideration herein stated; and

          (d) Each Party has consulted with, or has been advised to and had the opportunity to consult
with, the attorneys of its choosing and enters into this Agreement with full knowledge of the
content and effect hereof, and attests to the same by its signature below.

     12. Successors and Assigns. This Agreement shall be binding on and inure to the
benefit of the Parties and their respective heirs, successors and assigns. However, the rights,
benefits, obligations, covenants and agreements of Schuldt set forth in this Agreement are not
assignable and any attempted assignment thereof shall be null and void.

     13. Modifications. This Agreement may not be modified except by a writing signed by
each of the Parties or their duly authorized representatives.

7

 

     14. Applicable Law. This Agreement shall, in all respects, be interpreted, construed
and governed by and under federal law where applicable or the domestic laws of the State of Texas
otherwise. As set forth in Paragraph 9, the Parties have agreed to arbitration as the forum for
dispute resolution. However, if and to the extent any judicial proceedings are instituted, they
shall be brought in federal or state court in the County of Bexar, State of Texas.

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

     16. Entirety of Agreement. The Parties hereto acknowledge and agree that this
instrument and any other instruments specifically referred to herein constitute and contain the
entire agreement and understanding concerning the subject matter between the Parties and supersede
and replace all prior negotiations and proposed agreements, whether written or oral. The Parties,
and each of them, warrant that no other party or any agent or attorney of any other Party has made
any promise, representation or warranty whatsoever not contained herein to induce them to execute
this instrument and the other documents referred to herein. The Parties, and each of them,
represent that they have not executed this Agreement in reliance on any promise, representation or
warranty not contained herein or therein.

     17. Construction. The Parties hereto acknowledge and agree that the language of this
Agreement shall be construed as a whole according to its fair meaning and not strictly for or
against any of the Parties. The various headings in this Agreement are inserted for convenience
only and shall not be deemed a part of or in any manner affect this Agreement or any provision
hereof.

     18. Costs and Attorneys’ Fees. Should any action be brought to enforce any of the
terms or conditions of this Agreement, or for a breach thereof, the arbitrator(s) or court, as the
case may be, shall have the discretion to award costs and expenses incurred in the prosecution or
defense of that action, including attorneys’ fees, to the prevailing Party as the arbitrator(s) or
court, as the case may be, may deem just and equitable.

     19. Further Assurances. The Parties hereto shall execute all documents and
instruments reasonably required to affect the terms of this Agreement and the transactions
contemplated hereby and thereby.

     20. Mail. Schuldt hereby grants to each of the Company Representatives the right to
open and read any mail addressed to Schuldt that they reasonably believe not to be of a personal
nature. The Company Representatives agree to cause any personal mail to be forwarded to Schuldt at
such address as she from time to time designates in writing. Schuldt’s current address for such
purpose is designated below.

     21. Notice. Any notices required or permitted hereunder shall be in writing and shall
be deemed given when personally given or three (3) business days after being deposited with the
U.S. Postal Service for delivery by registered or certified mail, return receipt requested,
addressed to the Company at its address set forth herein or addressed to Schuldt at the last
address she has on file with the Company, or at such other addresses as they may specify in
writing.

     22. Effectiveness of Agreement. Because this Agreement provides that Schuldt may revoke
this Agreement at any time during the seven (7) calendar day period following the date Schuldt
signs this Agreement, this Agreement (and the payment of consideration pursuant hereto) will not
become effective and enforceable until 12:01 a.m. of the day next after the expiration of the
seven-day revocation period (referred to herein as the “Effective Date”).

8

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date hereof, but it shall
not be effective until the Effective Date.

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Joyce M. Schuldt
 	 
	 	Joyce M. Schuldt 	 
	 	 	 
	 

	 	 	 	 	 	 	 
	 	 	PIONEER DRILLING COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Wm. Stacy Locke
 

Wm. Stacy Locke
	 	 
	 

	 	Title:
	 	CEO	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	1250 N.E. Loop 410, Suite 1000

San Antonio, Texas 78209	 	 

9exv10w1

Exhibit 10.1

[HARMAN LETTERHEAD]

August 8, 2008

Ms. Jennifer Peter

[Address Omitted]

Dear Jenny:

On behalf of Harman International Industries, Incorporated (“Harman”), I submit an offer for the
position of VP, Chief Accounting Officer. In this capacity you will report directly to Herbert K.
Parker, EVP and Chief Financial Officer, and will be located at our Stamford, Connecticut office.
This offer provides the following:

Transition Date: Your transition date will be October 1, 2008.

Base Salary: Annualized base salary will be $250,000 subject to review on September 1,
2009 (for increase, but not decrease), and payable in accordance with our regular payroll schedule
in Stamford, CT.

Bonus: Effective with fiscal year 2009, you will be eligible to participate in the
Management Incentive Compensation program with a target bonus opportunity equal to 35% of your base
salary and a 52.5% maximum. This bonus program is based upon Harman’s achievement of its business
plan, as well as your achievement of personal performance goals.

Stock Options: Subject to the approval of the Compensation and Option Committee of the
Board of Directors, you will be eligible for stock option awards of Harman common stock under the
terms of Harman’s 2002 Stock Option and Incentive Plan (“Plan”) at a level commensurate with your
position.

Severance: If your employment is terminated by Harman without “Cause” within the first
three years of relocating to Connecticut, you will receive severance and company-paid COBRA
benefits for a period of one year. “Severance” is defined as base salary and most recent bonus
payout. The Company will also pay for moving you and your household goods back to California.
“Cause” is defined in Exhibit A attached hereto. Such payments will be subject to the execution by
you of a release in substantially the form attached hereto as Exhibit B. Harman will furnish you
with the release promptly after your termination of employment. Your severance payments will
commence on the 60th day after your termination of employment; provided, however, that
if on the due date for any severance payment, all revocation periods have not then expired with
respect to your release, such payment will be forfeited.

Relocation Assistance: You will be eligible for relocation assistance as outlined in the
Harman Relocation Policy previously provided. In order to assist you in your relocation to
Stamford, CT the company will provide six months of temporary housing.

Car Allowance: You will receive a car allowance of $1,200 per month paid in accordance
with our regular payroll schedule.

Other Benefits: You will continue to participate in our benefit plans including medical,
dental, vision, life insurance, short and long-term disability insurance, tuition reimbursement,
401(k) Retirement Savings Plan, vacation and all Company-paid holidays.

Section 409A:  For purposes of Section 409A of the Internal Revenue Code, each salary
continuation payment will be considered one of a series of separate payments.  If at the time of
your separation from service (within the meaning of Section 409A), (i) you are a specified employee
(within the meaning of Section 409A and using the identification methodology selected by Harman
from time to time) and (ii) Harman makes a good faith determination that an amount payable hereunder constitutes deferred
compensation (within the meaning of Section 409A) the payment of which is required to be delayed

 

 

Jenny Peter

August 8, 2008

Page 2

pursuant to the six-month delay rule set forth in Section 409A in order to avoid taxes or penalties
under Section 409A, then Harman will not pay such amount on the otherwise scheduled payment date
but will instead pay it, without interest, on the first business day after such six-month period,
subject to the release requirements noted above.

The Company will, in connection with your employment, withhold from any compensation and benefits
payable to you all federal, state, city or other taxes as requested by you or that the Company is
required to withhold pursuant to any law or government regulation or ruling.

Harman is not hereby offering you lifetime employment or employment for a fixed or implied period
of time. Either you or Harman may terminate your employment at any time, with or without cause or
notice. The at-will nature of your employment relationship cannot be changed except in a written
document signed by you and the VP, Corporate HR and Global Rewards. Upon termination of your
employment, Harman will have no further obligations to you except as provided under “Severance”.

Any dispute concerning termination of your employment shall be resolved by final and binding
arbitration before a neutral arbitrator. The arbitrator shall be selected by mutual agreement or
in accordance with the procedures of the American Arbitration Association and the employment
arbitration rules of the American Arbitration Association shall apply. Such arbitration shall be
conducted in Stamford, Connecticut or such other location as to which you and Harman agree. The
law of Connecticut, without regard to its choice of law rules, shall govern any such dispute, and
the arbitrator shall not have authority to vary or alter the terms of this letter.

Please sign and return the original of this letter. You should retain one copy of this letter for
your files.

Sincerely,

/s/ Sandra S. Buchanan

 

Sandra S. Buchanan

VP, Compensation & Benefits

I accept your offer of employment and agree to the provisions stated in this letter. I
acknowledge and agree that this letter constitutes the entire agreement between Harman and me and
supersedes all prior verbal or written agreements, arrangements or understandings pertaining to my
offer of employment. I understand that I am employed at will and that my employment can be
terminated at any time, with or without cause, at the option of either the Company or me.

ACCEPTED AND AGREED:

	 	 	 	 	 	 	 
	/s/ Jennifer Peter

	 	 	 	8/8/08
	 	 
	 

	 	 	 	 	 	 
	Jennifer Peter

	 	 	 	Date	 	 

 

 

Jenny Peter

August 8, 2008

Page 3

Exhibit A

Termination Definitions

“Cause” means:

	 	(i)	 	You have been convicted of a felony:
	 
	 	(ii)	 	You have engaged in conduct that constitutes willful gross neglect or willful gross
misconduct with respect to your employment duties which results in material economic harm
to Harman.

No act or omission on your part shall be considered “willful” unless it is done by you in bad faith
and without reasonable belief that your action was in the best interests of Harman.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}]]