Document:

exv10w20

Exhibit 10.20

CONFIDENTIAL

AGREEMENT

     THIS AGREEMENT (“Agreement”), dated as of March 9, 2010, is made by and between Actel
Corporation, a California corporation (“Actel” or the “Company”), and the entities
and natural persons listed on Schedule A hereto and their affiliates (collectively, the “Ramius
Group”) (each of the Company and the Ramius Group, a “Party” to this Agreement, and
collectively, the “Parties”).

     WHEREAS, the Ramius Group may be deemed to beneficially own shares of common stock of Actel
(the “Common Stock”) totaling, in the aggregate, 2,423,315 shares, or approximately 9.2% of
the Common Stock issued and outstanding on the date hereof;

     WHEREAS, certain members of the Ramius Group and Actel entered into an Agreement dated March
6, 2009 relating to Actel’s Board of Directors and 2009 annual shareholder meeting (the “2009
Settlement”); and

     WHEREAS, Actel and the Ramius Group have agreed that it is in their mutual interests to enter
into this Agreement to set forth, among other things, the parties’ mutual understanding relating to
the 2010 annual meeting of shareholders (the “2010 Annual Meeting”).

     NOW, THEREFORE, in consideration of the premises and the representations, warranties, and
agreements contained herein, and other good and valuable consideration, the Parties mutually agree
as follows:

     1. Representations and Warranties of the Ramius Group. The Ramius Group represents and
warrants to Actel that (a) this Agreement has been duly authorized, executed and delivered by the
Ramius Group, and is a valid and binding obligation of the Ramius Group, enforceable against the
Ramius Group in accordance with its terms, except as enforcement thereof may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar
laws generally affecting the rights of creditors and subject to general equity principles; (b) the
execution of this Agreement, the consummation of any of the transactions contemplated hereby, and
the fulfillment of the terms hereof, in each case in accordance with the terms hereof, will not
conflict with, or result in a breach or violation of the organizational documents of the Ramius
Group as currently in effect; and (c) as of the date of this Agreement, the Ramius Group may be
deemed to beneficially own in the aggregate 2,423,315 shares of Common Stock.

     2. Representations and Warranties of Actel. Actel hereby represents and warrants to the Ramius
Group that (a) this Agreement has been duly authorized, executed and delivered by Actel, and is a
valid and binding obligation of Actel, enforceable against Actel in accordance with its terms,
except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and
subject to general equity principles; (b) the execution of this Agreement, the consummation of any
of the transactions contemplated hereby, and the fulfillment of the terms hereof, in each case in
accordance with the terms hereof, will not (1) conflict with, result in a breach or violation of,
constitute a default (or an event which with notice

 

 

or lapse of time or both could become a default) under or pursuant to, result in the loss of a
material benefit or give any right of termination, amendment, acceleration or cancellation under,
or result in the imposition of any lien, charge or encumbrance upon any property or assets of Actel
or any of its subsidiaries pursuant to any law, any order of any court or other agency of
government, Actel’s Restated Articles of Incorporation (as amended January 3, 2003) (the
“Restated Articles”), Actel’s Amended and Restated Bylaws (the “Bylaws”), or the
terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or
other agreement, obligation, condition, covenant or instrument to which Actel is a party or bound
or to which its property or assets is subject or (2) trigger any “change of control” provisions in
any agreement to which Actel is a party; and (c) no consent, approval, authorization, license or
clearance of, or filing or registration with, or notification to, any court, legislative, executive
or regulatory authority or agency is required in order to permit Actel to perform its obligations
under this Agreement, except for such as have been obtained.

     3. Directorships.

          (a) Actel agrees that the Board and all applicable committees of the Board will take all
actions necessary and appropriate to:

               (1) nominate Patrick W. Little, Jeffrey C. Smith and Eric J. Zahler (collectively, with any
replacement director appointed pursuant to Section 3(b) below as applicable (the “Replacement
Appointees,” the “2009 Settlement Directors”), for election to the Board at the 2010
Annual Meeting (other than in the case of such person’s refusal to serve or if such person has
committed an act that would be grounds for removal from the Board for cause, in which case the
Ramius Group will have the right to designate and substitute another person or persons, subject to
prompt reasonable evaluation and determination by the Nominating Committee of the Board (the
“Nominating Committee”) in good faith after exercising its fiduciary duties that such
candidate has business experience in such areas as would reasonably be expected to enhance the
Board, consistent with Actel’s guidelines relating to director qualifications and Board
composition), together with up to five (5) other persons to be included in Actel’s slate of
nominees for director, with terms expiring at Actel’s 2011 annual shareholder meeting (the
“2011 Annual Meeting”);

               (2) recommend, and reflect such recommendation in Actel’s definitive proxy statement in
connection with the 2010 Annual Meeting, that the shareholders of Actel vote to elect the 2009
Settlement Directors as directors of Actel at the 2010 Annual Meeting;

               (3) use its reasonable efforts to solicit and obtain proxies in favor of the election of the
2009 Settlement Directors at the 2010 Annual Meeting, in the same manner as for the other
candidates nominated for election at the 2010 Annual Meeting; and

               (4) ensure that, while any of the 2009 Settlement Directors remains in office, the Ramius
Group will have the right to designate at least one 2009 Settlement Director, subject to compliance
with applicable Securities and Exchange Commission (the “SEC”) and Nasdaq corporate
governance rules, to serve on each committee and sub-committee of the Board (or any substitutes
therefor) now in existence or created after the date hereof.

          (b) Actel agrees that, during the term of this Agreement, if a 2009 Settlement Director
resigns or is otherwise unable to serve as a director or is removed for cause as a director, the
Ramius Group will have the right to designate and substitute a person or persons for

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appointment to
the Board as a replacement director, subject to evaluation and determination by the Nominating
Committee using the
standards described in Section 3(a)(1); provided, however, (i) the substitute person
designated by the Ramius Group shall have experience consistent with the director being replaced
and (ii) at no point shall the 2009 Settlement Directors consist of more than one (1) affiliate of
the Ramius Group. The Nominating Committee will not unreasonably withhold acceptance of any
replacement director(s) recommended by the Ramius Group. In the event the Nominating Committee does
not accept a replacement director recommended by the Ramius Group, the Ramius Group will have the
right to recommend additional replacement director(s) for consideration by the Nominating
Committee. The Board will appoint such replacement director to the Board no later than five (5)
business days after the Nominating Committee’s recommendation of such replacement director.

          (c) Each of the 2009 Settlement Directors will be governed by the same protections and
obligations regarding confidentiality, conflicts of interests, fiduciary duties, trading and
disclosure policies and other governance guidelines, and shall have the same rights and benefits,
including (but not limited to) with respect to insurance, indemnification, compensation and fees,
as are generally applicable to any non-employee directors of Actel.

          (d) Actel agrees that prior to the 2011 Annual Meeting, the Board and all applicable
committees of the Board shall not (i) increase the size of the Board to more than eight (8)
directors or (ii) or take any other action to materially limit or restrict the rights of or time
allotted to its shareholders to nominate persons for election to the Board (including but not
limited to by amending the Restated Articles or Bylaws).

     4. Standstill Restrictions.

          (a) Subject to applicable law, including Section 13(d) and (g) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), except as permitted pursuant to the terms of this
Agreement, during the term of this Agreement, the Ramius Group shall not, and shall cause their
Affiliates and Associates (as defined below) under its control or direction not to, in any manner,
directly or indirectly:

               (i) solicit (as such term is used in the proxy rules of the Securities and Exchange Commission
(the “SEC”)) proxies or consents to vote any securities of Actel, or make, or in any way
participate in, any “solicitation” of any “proxy” within the meaning of Rule 14a-1 promulgated by
the SEC under the Exchange Act to vote any shares of Common Stock with respect to any matter, or
become a “participant” in any “contested solicitation” for the election of directors with respect
to Actel (as such terms are defined or used in the Exchange Act and the rules promulgated
thereunder), other than solicitations or acting as a participant in support of all of Actel’s
nominees and proposals;

               (ii) purchase or cause to be purchased or otherwise acquire or agree to acquire beneficial
ownership (as determined under Rule 13d-3 promulgated under the Exchange Act) of any Common Stock
or other securities issued by Actel, if in any such case, immediately after the taking of such
action, the Ramius Group would, in the aggregate, collectively beneficially own more than the
greater of (i) 14.9% of the then outstanding shares of Common Stock, or (ii) such percentage of the
then outstanding shares of Common Stock as is 0.1% less than the amount causing the Ramius Group to
become an “Acquiring Person” under the Company’s Preferred Stock Rights Agreement, dated October
17, 2003, as the same may be amended;

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               (iii) form, join or in any way participate in any “group” (within the meaning of Section
13(d)(3) of the Exchange Act) with respect to the Common Stock (other than a group comprised solely
of the Ramius Group);

               (iv) deposit any Common Stock in any voting trust or subject any Common Stock to any
arrangement or agreement with respect to the voting of any Common Stock, other than any such voting
trust, arrangement or agreement solely among the Ramius Group;

               (v) otherwise act, alone or in concert with others to (1) make any public statement critical
of Actel, its directors or management, other than as contemplated by Section 4(a)(vi)(3) below or
(2) control or seek to control the Board, other than through non public communications with the
officers and directors of Actel;

               (vi) other than as provided in this Agreement, make any public announcement with respect to,
or offer to effect, seek or propose (with or without conditions) a merger, acquisition, disposition
or other business combination involving Actel, other than through non public communications with
the officers and directors of Actel; provided, however, that nothing herein will
limit the ability of (1) any member of the Ramius Group, or its respective Affiliates and
Associates, except as otherwise provided in Section 5, to vote its shares of Common Stock on any
matter submitted to a vote of the stockholders of the Company, (2) the 2009 Settlement Directors
to exercise their rights as members of the Board while serving as members of the Board or (3) the
Ramius Group to announce its opposition to any Board approved proposals related to a merger,
acquisition, disposition of all or substantially all of the assets of Actel or other business
combination involving Actel and not supported by Mr. Smith;

               (vii) seek, alone or in concert with others, (1) to call a meeting of shareholders, or
(2) representation on the Board, except as specifically contemplated in Section 3(a) and Section
4(b), or (3) the removal of any member of the Board; or

               (viii) publicly disclose any request to amend, waive or terminate any provision of this
Agreement.

          (b) Notwithstanding anything contained herein to the contrary, any member of the Ramius Group,
and any Affiliate or Associate of any such member, shall be entitled to:

               (i) subject to Section 5, vote their shares in favor of the election of the 2009 Settlement
Directors at the 2010 Annual Meeting and on any other proposal duly brought before the 2010 Annual
Meeting, or otherwise vote as the Ramius Group determines in their sole discretion;

               (ii) disclose, publicly or otherwise, how it intends to vote or act with respect to any
securities of the Company, any stockholder proposal or other matter to be voted on by the
stockholders of the Company (other than the election of directors) and the reasons therefor;

               (iii) propose a slate of nominees for election as directors and/or one or more proposal(s) for
consideration or approval by shareholders at the 2011 Annual Meeting in order to comply with the
advance notice provisions or other requirements of the Restated Articles or the Bylaws; and

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               (iv) In the event a special meeting is called by a shareholder of Actel with respect to the
removal of directors, the Ramius Group may (A) cumulate the vote of the shares of Common Stock held
by the Ramius Group and vote in favor of the 2009 Settlement Directors and (B) solicit proxies to
vote against the removal of the 2009 Settlement Directors; provided, however, that if Actel
solicits proxies to vote against the removal of all directors, the Ramius Group may only solicit
proxies to vote against the removal of all directors and not just the 2009 Settlement Directors.

          (c) As used in this Agreement, the terms “Affiliate” and “Associate” shall have the respective
meanings set forth in Rule 12b-2 promulgated by the SEC under the Exchange Act.

     5. Actions by the Ramius Group.

          (a) At the 2010 Annual Meeting, the Ramius Group shall vote, and cause their
respective officers, directors, employees and agents to vote, all of the shares of Common Stock
beneficially owned by him or them for (i) each of Actel’s nominees for election to the Board and
(ii) the ratification of the appointment of Actel’s independent auditors.

          (b) Upon execution of this Agreement by the Parties, the Ramius Group shall not submit any
proposals or nominations for election to the Board at the 2010 Annual Meeting;

     6. Termination. This Agreement shall terminate and the obligations of the Parties under this
Agreement shall cease on the earlier of the following (the “Termination Date”):

          (a) at the option of Actel, upon the earliest of a material breach by the Ramius Group of any
obligation hereunder which has not been cured within 14 days after the Ramius Group receives notice
of such breach from Actel

          (b) at the option of the Ramius Group, upon a material breach by Actel of any
obligation hereunder which has not been cured within 14 days after Actel receives notice of such
breach from the Ramius Group;

          (c) seven days prior to the date that an Actel shareholder may first submit a nomination for
the election of directors at the 2011 Annual Meeting pursuant to the Bylaws;

          (d) on the day that the Board publicly announces its nominees for election as directors at the
2011 Annual Meeting; or

          (e) at any time, upon the written consent of all of the Parties.

     7. Public Announcement. Actel and the Ramius Group shall promptly disclose the existence of
this Agreement after its execution pursuant to a joint press release that is mutually acceptable to
the parties, including a description of the material terms of this Agreement. Subject to applicable
law, none of the Parties shall disclose the existence of this Agreement until the joint press
release is issued. The Parties agree that, while this Agreement remains in effect, each Party
shall refrain from any disparagement, defamation, libel, or slander with respect to any other Party
or its affiliates or from publicly criticizing such other Party or its affiliates.

     8. Nonpublic Information.

          (a) In connection with discussions between the Ramius Group and their representatives and
Actel and its representatives, or otherwise during the term of this Agreement, the Ramius Group or
their representatives have obtained information about Actel or its securities

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that is confidential.
Each member of the Ramius Group agrees, as set forth below, to treat confidentially any such
information (whether oral or written, provided that all written information shall have been
identified as confidential) furnished to or otherwise obtained by the Ramius Group or their
representatives from Actel or on their behalf together with those portions of analyses, summaries,
notes or other documents prepared by
the Ramius Group or any of their representatives which contain or otherwise reflect such
information (herein collectively referred to as the “Confidential Information”). The Ramius
Group agrees that, except with Actel’s prior written consent, neither the Ramius Group nor their
representatives will disclose any Confidential Information to any other person or use any of the
Confidential Information for any purpose other than on Actel’s behalf. For purposes of this
Agreement, the phrase “Confidential Information” shall not include information which (i) becomes
lawfully available to the public other than as a result of a disclosure by the Ramius Group or
their representatives, (ii) was lawfully available to the Ramius Group on a nonconfidential basis
prior to its disclosure to the Ramius Group or their representatives by Actel or on its behalf or
(iii) lawfully becomes available to the Ramius Group on a nonconfidential basis from a source other
than Actel or Actel’s representatives or agents, provided that to the knowledge of the Ramius
Group, such source is not bound by a confidentiality agreement with Actel. Actel has no obligation
to furnish Confidential Information to the Ramius Group or their representatives by virtue of this
Agreement. In the event that any member of the Ramius Group is requested pursuant to, or required
by, law, regulation, legal process or regulatory or civil authority to disclose any portion of the
Confidential Information, the Ramius Group shall give prompt notice to Actel, to the extent such
notice is legally permissible. The Ramius Group shall use all commercially reasonable efforts to
limit the scope of such required disclosure, and the Ramius Group shall be permitted to disclose,
without any liability to Actel, only that portion of the Confidential Information which the Ramius
Group’ counsel advises that the Ramius Group are legally required to disclose.

          (b) In connection with this Agreement and the ongoing relationship of the Ramius Group (and
their affiliates) with Actel, there may be instances in which material nonpublic information
concerning Actel will be divulged to them by Actel or its representatives or agents. The Ramius
Group expressly acknowledge, on behalf of themselves and their representatives and agents, that
federal and state securities laws prohibit any person who misappropriates material nonpublic
information about a company from purchasing or selling securities of such company, or from
communicating such information to any other person under circumstances in which it is reasonably
foreseeable that such person is likely to purchase or sell such securities, until such information
has become public.

     9. Releases.

          (a) The Ramius Group hereby agrees for the benefit of Actel, and each controlling person,
officer, director, shareholder, agent, affiliate, employee, partner, attorney, heir, assign,
executor, administrator, predecessor and successor, past and present, of Actel (Actel and each such
person being an “Actel Released Person”) as follows:

               (i) The Ramius Group, for themselves and for their members, officers, directors, assigns,
agents and successors, past and present, hereby agrees and confirms that, effective from and after
the date of this Agreement, they hereby acknowledge full and complete satisfaction of, and covenant
not to sue, and forever fully release and discharge each Actel

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Released Person of, and hold each
Actel Released Person harmless from, any and all rights, claims, warranties, demands, debts,
obligations, liabilities, costs, attorneys’ fees, expenses, suits, losses and causes of action of
any nature whatsoever, whether known or unknown, suspected or unsuspected (collectively,
“Claims”) that the Ramius Group may have against the Actel Released Persons, in each case
with respect to events occurring prior to the date of the execution of this Agreement.

               (ii) The Ramius Group understands and agree that the Claims released by the Ramius Group above
include not only those Claims presently known but also include all unknown or unanticipated claims,
rights, demands, actions, obligations, liabilities, and causes of action of every kind
and character that would otherwise come within the scope of the Claims as described above. The
Ramius Group understands that they may hereafter discover facts different from or in addition to
what they now believe to be true, which if known, could have materially affected this release of
Claims, but they nevertheless waive any claims or rights based on different or additional facts.

          (b) The Ramius Group agrees that so long as any 2009 Settlement Director is a member of the
Board, (i) no member of the Ramius Group shall, without the consent of Actel, instigate, solicit,
assist, intervene in, or otherwise voluntarily participate in any litigation or arbitration in
which Actel or any of its officers or directors are named as parties; provided that the foregoing
shall not prevent any member of the Ramius Group from responding to a validly issued legal process
and (ii) the Ramius Group agrees to give Actel at least five (5) business days notice of the
receipt of any legal process requesting information regarding Actel or any of its officers or
directors, to the extent that such notice is legally permissible.

          (c) Actel hereby agrees for the benefit of the Ramius Group, and each controlling person,
officer, director, stockholder, agent, affiliate, employee, partner, attorney, heir, assign,
executor, administrator, predecessor and successor, past and present, thereof, as well as each 2009
Settlement Director (the Ramius Group and each such person being a “Shareholder
Released Person”) as follows:

               (i) Actel, for itself and for its affiliates, officers, directors, assigns, agents and
successors, past and present, hereby agrees and confirms that, effective from and after the date of
this Agreement, it hereby acknowledges full and complete satisfaction of, and covenants not to sue,
and forever fully releases and discharges each Shareholder Released Person of, and holds each
Shareholder Released Person harmless from, any and all Claims of any nature whatsoever, whether
known or unknown, suspected or unsuspected, that Actel may have against the Shareholder Released
Persons, in each case with respect to events occurring prior to the date of the execution of this
Agreement.

               (ii) Actel understand and agree that the Claims released by Actel above include not only those
Claims presently known but also include all unknown or unanticipated claims, rights, demands,
actions, obligations, liabilities, and causes of action of every kind and character that would
otherwise come within the scope of the Claims as described above. Actel understands that it may
hereafter discover facts different from or in addition to what it now believes to be true, which if
known, could have materially affected this release of Claims, but it nevertheless waives any claims
or rights based on different or additional facts.

          (d) The Parties do hereby expressly waive and relinquish all rights and benefits afforded by
California Civil Code Section 1542, and do so understanding and

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acknowledging the significance and
consequences of such specific waiver of California Civil Code Section 1542. The Parties
acknowledge and understand that they are being represented in this matter by counsel of their own
choice, and acknowledge that they are familiar with the provisions of California Civil Code Section
1542, which provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE
DEBTOR.

     Thus, notwithstanding these provisions of law, the Parties expressly acknowledge and agree
that this Section 9 is also intended to include in its effect, without limitation, all such claims
which they do not know or suspect to exist at the time of the execution of this Agreement, and
that this Agreement contemplates the extinguishment of those claims.

          (e) The Parties intend that the foregoing release be broad with respect to the matter
released, provided, however, this release of Claims shall not include claims to enforce the terms
of this Agreement; and provided further that nothing in the foregoing release shall be deemed or
construed, now or hereafter, as limiting in any manner any right of indemnification inuring to the
benefit of any director or former director of Actel arising under the Restated Articles, the Bylaws
or otherwise.

     10. Remedies.

          (a) Each of the Parties acknowledges and agrees that a breach or threatened breach by any
Party may give rise to irreparable injury inadequately compensable in damages, and accordingly each
Party shall be entitled to injunctive relief to prevent a breach of the provisions hereof and to
enforce specifically the terms and provisions hereof in any state or federal court having
jurisdiction, in addition to any other remedy to which such aggrieved Party may be entitled to at
law or in equity.

          (b) In the event a Party institutes any legal action to enforce such Party’s rights under, or
recover damages for breach of this Agreement, the prevailing party or parties in such action shall
be entitled to recover from the other party or parties all costs and expenses, including but not
limited to reasonable attorneys’ fees, court costs, witness fees, disbursements and any other
expenses of litigation or negotiation incurred by such prevailing party or parties.

     [11. Expenses. Actel shall reimburse the Ramius Group for its reasonable, documented
out-of-pocket fees and expenses incurred (including legal expenses), not to exceed $5,000, in
connection with the filing of a Schedule 13D in connection with this Agreement, and any matters
related to the 2010 Annual Meeting and the negotiation and execution of this Agreement.

     12. Notices. Any notice or other communication required or permitted to be given under
this Agreement will be sufficient if it is in writing, sent to the applicable address set forth
below (or as otherwise specified by a Party by notice to the other Parties in accordance with this
Section 12) and delivered personally or sent by recognized overnight courier, postage prepaid, and
will be deemed given (a) when so delivered personally, or (b) if sent by recognized overnight
courier, one day after the date of sending.

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If to Actel:

Actel Corporation

2061 Stierlin Ct.

Mountain View, CA 94043

Attention: John East, Chief Executive Officer

Telephone: (650) 318-4200

Facsimile: (650) 318-2444

with a copy (which shall not constitute notice to Actel) to:

 

 

 

If to the Ramius Group:

Ramius Value and Opportunity Master Fund Ltd

c/o RCG Starboard Advisors, LLC

599 Lexington Avenue, 20th Floor

New York, New York 10022

Attention: Jeffrey C. Smith

               Owen S. Littman

Telephone: (212) 845-8900

Facsimile: (212) 845-7986

with a copy (which shall not constitute notice to the Ramius Group) to:

Olshan Grundman Frome Rosenzweig & Wolosky LLP

Park Avenue Tower

65 East 55th Street

New York, New York 10022

Attention: Steve Wolosky

               Andrew Freedman

Telephone: (212) 451-2300

Facsimile: (212) 451-2222

     13. Entire Agreement. This Agreement constitutes the entire agreement between the Parties
pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements,
understandings, negotiations and discussions of the Parties in connection with the subject matter
hereof.

     14. Counterparts; Facsimile. This Agreement may be executed in any number of counterparts and
by the Parties in separate counterparts, and signature pages may be delivered by facsimile, each of
which when so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

     15. Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.

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     16. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of California, without regard to choice of law principles
that would compel the application of the laws of any other jurisdiction.

     17. Severability. In the event one or more of the provisions of this Agreement should, for any
reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not affect any other provisions of this Agreement, and this Agreement
shall be construed as if such invalid, illegal or unenforceable provision had never been contained
herein.

     18. Successors and Assigns. This Agreement shall not be assignable by any of the Parties. This
Agreement, however, shall be binding on successors of the Parties.

     19. Amendments. This Agreement may not be modified, amended, altered or supplemented except
upon the execution and delivery of a written agreement executed by all of the Parties.

     20. Further Action. Each Party agrees to execute such additional reasonable documents, and to
do and perform such reasonable acts and things necessary or proper to effectuate or further
evidence the terms and provisions of this Agreement.

[Signatures are on the following page.]

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CONFIDENTIAL

     IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first
above written.

	 	 	 	 
	ACTEL CORPORATION

 	 
	By:  	/s/ David L. Van De Hey
 	 
	 	Name:  	David L. Van De Hey 	 
	 	Title:  	Vice President and General Counsel 	 

	 	 	 	 	 	 	 
	THE RAMIUS GROUP:	 	 	 	 
	 
	RAMIUS VALUE AND OPPORTUNITY MASTER FUND LTD	 	RCG STARBOARD ADVISORS, LLC
	By:

	 	RCG Starboard Advisors, LLC,
	 	By:
	 	Ramius LLC,
	 

	 	its investment manager
	 	 	 	its sole member
	 
	 	 	 	 	 	 
	RAMIUS NAVIGATION MASTER FUND LTD	 	RAMIUS ADVISORS, LLC
	By:

	 	Ramius Advisors, LLC,
	 	By:
	 	Ramius LLC,
	 

	 	its investment advisor
	 	 	 	its sole member
	 
	 	 	 	 	 	 
	RAMIUS ENTERPRISE MASTER FUND LTD	 	RAMIUS LLC
	By:

	 	Ramius Advisors, LLC,
	 	By:
	 	Cowen Group, Inc.,
	 

	 	its investment advisor
	 	 	 	its sole member
	 
	 	 	 	 	 	 
	 	 	 	 	COWEN GROUP, INC.
	 
	 	 	 	 	 	 
	RCG PB, LTD	 	RCG HOLDINGS LLC
	By:

	 	Ramius Advisors, LLC,
	 	By:
	 	C4S & Co., L.L.C.,
	 

	 	its investment advisor
	 	 	 	its managing member
	 
	 	 	 	 	 	 
	 	 	 	 	C4S & CO., L.L.C.

	 	 	 	 	 
	 	 	 
	 	By:  	                                                                    /s/ Jeffrey M. Solomon
 	 
	 	 	Name:  	Jeffrey M. Solomon 	 
	 	 	Title:  	Authorized Signatory 	 
	 

	 	 	 	 	 
	 	 	 
	 	            /s/ Jeffrey M. Solomon
 	 
	 	JEFFREY M. SOLOMON 	 
	 	Individually and as attorney-in-fact for Peter A. Cohen, Morgan B.
Stark and Thomas W. Strauss 	 
	 

	 	 	 	 	 
	 	 	 
	 	            /s/ Jeffrey C. Smith
 	 
	 	JEFFREY C. SMITH 	 
	 	 	 
	 

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Schedule A

The Ramius Group

RAMIUS VALUE AND OPPORTUNITY MASTER FUND LTD

RAMIUS NAVIGATION MASTER FUND LTD

RAMIUS ENTERPRISE MASTER FUND LTD

RCG PB, LTD

RCG STARBOARD ADVISORS, LLC

RAMIUS ADVISORS, LLC

RAMIUS LLC

COWEN GROUP, INC.

RCG HOLDINGS LLC

C4S & CO., L.L.C.

JEFFREY M. SOLOMON

PETER A. COHEN

MORGAN B. STARK

THOMAS W. STRAUSS

JEFFREY C. SMITHexv10w1

Exhibit 10.1

[FORM OF] INDEMNIFICATION AGREEMENT

     THIS INDEMNIFICATION
AGREEMENT (the “Agreement”) is effective as of _________
_________, 20___, by and among Basic Energy Services, Inc., a Delaware corporation (the
“Company”), and _______________ (the “Indemnitee”).

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to
obligate itself to indemnify certain of its Authorized Representatives (as defined below) of
the Company to the fullest extent permitted by applicable law so that they will serve or
continue to serve as such free from undue concern that they will not be adequately
protected;

     WHEREAS, the Indemnitee is willing to serve and continue to serve as an Authorized
Representative on the condition that he be so indemnified; and

     WHEREAS, to the extent permitted by law, this Agreement is a supplement to and in
furtherance of the provisions of the certificate of incorporation (the
“Certificate”) and bylaws of the Company (the “Bylaws”), in each case as
amended and effect on the date hereof, or resolutions adopted pursuant thereto, and shall
not be deemed a substitute therefor, nor to diminish or abrogate any rights of the
Indemnitee thereunder;

     NOW THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and the Indemnitee do hereby covenant and agree as follows:

          1. Services by the Indemnitee. The Indemnitee agrees to continue to serve at the request of
the Company as an Authorized Representative. Notwithstanding the foregoing, the Indemnitee may at
any time and for any reason resign from any such position.

          2. Indemnification — General. The Company shall indemnify, and advance Expenses (as
hereinafter defined) to, the Indemnitee as provided in this Agreement and to the fullest extent
permitted by applicable law in effect on the date hereof and to such greater extent as applicable
law may thereafter from time to time permit. The rights of the Indemnitee provided under the
preceding sentence shall include, but shall not be limited to, the rights set forth in the other
Sections of this Agreement.

          3. Proceedings Other Than Proceedings by or in the Right of the Company. The Indemnitee shall
be entitled to the rights of indemnification provided in this Section 3 if, by reason of
his Corporate Status (as hereinafter defined), he is, or is threatened to be made, a party to or
participant in any threatened, pending or completed Proceeding (as hereinafter defined), other than
a Proceeding by or in the right of the Company. Pursuant to this Section 3, the Company
shall indemnify the Indemnitee against Expenses, judgments, penalties, fines and amounts paid in
settlement (as and to the extent permitted hereunder) actually and reasonably incurred by him or on
his behalf in connection with such Proceeding or any claim, issue or matter therein, if he acted in
good faith and in a manner he reasonably believed to be in or not opposed to the best interests of
the Company, and, with respect to any criminal Proceeding, if he also had no reasonable cause to
believe his conduct was unlawful.

 

 

          4. Proceedings by or in the Right of the Company. The Indemnitee shall be entitled to the
rights of indemnification provided in this Section 4 if, by reason of his Corporate Status,
he is, or is threatened to be made, a party to or participant in any threatened, pending or
completed Proceeding brought by or in the right of the Company to procure a judgment in its favor.
Pursuant to this Section 4, the Company shall indemnify the Indemnitee against Expenses
actually and reasonably incurred by him or on his behalf in connection with such Proceeding if he
acted in good faith and in a manner he reasonably believed to be in or not opposed to the best
interests of the Company. Notwithstanding the foregoing, no indemnification against such Expenses
shall be made in respect of any claim, issue or matter in such Proceeding as to which the
Indemnitee shall have been adjudged to be liable to the Company or if applicable law prohibits such
indemnification; provided, however, that if applicable law so permits,
indemnification against Expenses shall nevertheless be made by the Company in such event if and to
the extent that the court in which such Proceeding shall have been brought or is pending, shall so
determine.

          5. Indemnification for Expenses of a Party Who is Wholly or Partly Successful.

          (a) To the extent that the Indemnitee is, by reason of his Corporate Status, a party to and is
successful, on the merits or otherwise, in any Proceeding, the Company shall indemnify the
Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in
connection therewith. If the Indemnitee is not wholly successful in defense of any Proceeding but
is successful, on the merits or otherwise, as to one or more but less than all claims, issues or
matters in such Proceeding, the Company shall indemnify the Indemnitee against all Expenses
actually and reasonably incurred by him or on his behalf in connection with each such claim, issue
or matter as to which the Indemnitee is successful, on the merits or otherwise. For purposes of
this Section 5(a), the term “successful, on the merits or otherwise,” shall include, but
shall not be limited to, (i) the termination of any claim, issue or matter in a Proceeding by
withdrawal or dismissal, with or without prejudice, (ii) termination of any claim, issue or matter
in a Proceeding by any other means without any express finding of liability or guilt against the
Indemnitee, with or without prejudice or (iii) the expiration of 120 days after the making of a
claim or threat of a Proceeding without the institution of the same and without any promise or
payment made to induce a settlement. The provisions of this Section 5(a) are subject to
Section 5(b) below.

          (b) In no event shall the Indemnitee be entitled to indemnification under Section 5(a)
above with respect to a claim, issue or matter to the extent (i) applicable law prohibits such
indemnification, or (ii) an admission is made by the Indemnitee in writing to the Company or in
such Proceeding or a final, nonappealable determination is made in such Proceeding that the
standard of conduct required for indemnification under this Agreement has not been met with respect
to such claim, issue or matter.

          6. Indemnification for Expenses as a Witness. Notwithstanding any provisions herein to the
contrary, to the extent that the Indemnitee is, by reason of his Corporate Status, a witness in any
Proceeding, the Company shall indemnify the Indemnitee against all Expenses actually and reasonably
incurred by or on behalf of the Indemnitee in connection therewith.

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          7. Advancement of Expenses. The Company shall advance all reasonable Expenses incurred by or
on behalf of the Indemnitee in connection with any Proceeding within 10 days after the receipt by
the Company of a statement or statements from the Indemnitee requesting such advance or advances
from time to time, whether prior to or after the final disposition of such Proceeding. Such
statement or statements shall reasonably evidence the Expenses incurred by or on behalf of the
Indemnitee. The Indemnitee hereby expressly undertakes to repay such amounts advanced only if, and
to the extent that, it shall ultimately be determined by a final, non-appealable adjudication or
arbitration decision that the Indemnitee is not entitled to be indemnified against such Expenses.
All amounts advanced to the Indemnitee by the Company pursuant to this Section 7 shall be
without interest. The Company shall make all advances pursuant to this Section 7 without
regard to the financial ability of the Indemnitee to make repayment, without bond or other security
and without regard to the prospect of whether the Indemnitee may ultimately be found to be entitled
to indemnification under the provisions of this Agreement. Any required reimbursement of Expenses
by the Indemnitee shall be made by the Indemnitee to the Company within 10 days following the entry
of the final, non-appealable adjudication or arbitration decision pursuant to which it is
determined that the Indemnitee is not entitled to be indemnified against such Expenses.

          8. Procedure for Determination of Entitlement to Indemnification.

          (a) To obtain indemnification under this Agreement, the Indemnitee shall submit to the Company
a written request therefor, along with such documentation and information as is reasonably
available to the Indemnitee and reasonably necessary to determine whether and to what extent the
Indemnitee is entitled to indemnification; provided, however, that no deficiency in any such
request, documentation or information shall adversely affect the Indemnitee’s rights to
indemnification or advancement of expenses under this Agreement. The Secretary of the Company
shall, promptly upon receipt of such a request for indemnification, advise the Board in writing
that the Indemnitee has requested indemnification.

          (b) Upon written request by the Indemnitee for indemnification pursuant to the first sentence
of Section 8(a) hereof, a determination, if required by applicable law, with respect to the
Indemnitee’s entitlement thereto shall be made in the specific case: (i) by the Board by a majority
vote of a quorum consisting of Disinterested Directors (as hereinafter defined); or (ii) if a
quorum of the Board consisting of Disinterested Directors is not obtainable or, even if obtainable,
such quorum of Disinterested Directors so directs, by Independent Counsel (as hereinafter defined),
as selected pursuant to Section 8(d), in a written opinion to the Board (which opinion may
be a “more likely than not” opinion), a copy of which shall be delivered to the Indemnitee. If it
is so determined that the Indemnitee is entitled to indemnification, the Company shall make payment
to the Indemnitee within 10 days after such determination. The Indemnitee shall cooperate with the
Person or Persons making such determination with respect to the Indemnitee’s entitlement to
indemnification, including providing to such Person or Persons upon reasonable advance request any
documentation or information which is not privileged or otherwise protected from disclosure and
which is reasonably available to the Indemnitee and reasonably necessary to such determination.
Subject to the provisions of Section 10 hereof, any costs or expenses (including reasonable
attorneys’ fees and disbursements) incurred by the Indemnitee in so cooperating with the Person or
Persons making such determination shall be

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borne by the Company, and the Company hereby agrees to indemnify and hold the Indemnitee
harmless therefrom.

          (c) Notwithstanding the foregoing, if a Change of Control has occurred, the Indemnitee may
require a determination with respect to the Indemnitee’s entitlement to indemnification to be made
by Independent Counsel, as selected pursuant to Section 8(d), in a written opinion to the
Board (which opinion may be a “more likely than not” opinion), a copy of which shall be delivered
to the Indemnitee.

          (d) In the event the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 8(b) or (c) hereof, the Independent Counsel
shall be selected as provided in this Section 8(d). If a Change of Control shall not have
occurred, the Independent Counsel shall be selected by the Board (including a vote of a majority of
the Disinterested Directors if obtainable), and the Company shall give written notice to the
Indemnitee advising him of the identity of the Independent Counsel so selected. If a Change of
Control shall have occurred, the Independent Counsel shall be selected by the Indemnitee (unless
the Indemnitee shall request that such selection be made by the Board, in which event the preceding
sentence shall apply), and approved by the Company (which approval shall not be unreasonably
withheld, conditioned or delayed). If (i) an Independent Counsel is to make the determination of
entitlement pursuant to Section 8(b) or (c) hereof, and (ii) within 20 days after
submission by the Indemnitee of a written request for indemnification pursuant to Section
8(a) hereof, no Independent Counsel shall have been selected, either the Company or the
Indemnitee may petition the Chancery Court of the State of Delaware for the appointment as
Independent Counsel of a Person selected by such court or by such other Person as such court shall
designate. The Company shall pay any and all reasonable fees and expenses of Independent Counsel
incurred by such Independent Counsel in connection with acting pursuant to Section 8(b) or
(c) hereof, and the Company shall pay all reasonable fees and expenses incident to the
procedures of this Section 8(d), regardless of the manner in which such Independent Counsel
was selected or appointed. Upon the due commencement of any judicial proceeding or arbitration
pursuant to Section 10(a)(iv) of this Agreement, Independent Counsel shall be discharged
and relieved of any further responsibility in such capacity (subject to the applicable standards of
professional conduct then prevailing).

          9. Presumptions and Effect of Certain Proceedings; Construction of Certain Phrases.

          (a) In making a determination with respect to whether the Indemnitee is entitled to
indemnification hereunder, the Person(s) making such determination shall presume that the
Indemnitee is entitled to indemnification under this Agreement if the Indemnitee has submitted a
request for indemnification in accordance with Section 8(a) of this Agreement, and anyone
seeking to overcome this presumption shall have the burden of proof and the burden of persuasion,
by clear and convincing evidence.

          (b) Subject to the terms of Section 16 below, the termination of any Proceeding or of
any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of
nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this
Agreement) of itself adversely affect the right of the Indemnitee to indemnification or create a

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presumption that the Indemnitee did not act in good faith and in a manner which he reasonably
believed to be in or not opposed to the best interests of the Company or, with respect to any
criminal Proceeding, that the Indemnitee had reasonable cause to believe that his conduct was
unlawful.

          (c) For purposes of any determination of the Indemnitee’s entitlement to indemnification under
this Agreement or otherwise, the Indemnitee shall be deemed to have acted in good faith and in a
manner he reasonably believed to be in or not opposed to the best interests of the Company, and,
with respect to a criminal Proceeding, to have also had no reasonable cause to believe his conduct
was unlawful, if it is determined by the Board or by the Independent Counsel, as applicable, that
Indemnitee’s action is based on the Indemnitee’s reliance in good faith on the records or books of
account of the Company or another enterprise, including financial statements, or on information
supplied to the Indemnitee by the officers of the Company or another enterprise in the course of
their duties, or on the advice of legal or financial counsel for the Company or the Board (or any
committee thereof) or for another enterprise or its board of directors (or any committee thereof),
or on information or records given or reports made by an independent certified public accountant or
by an appraiser or other expert selected by the Company or the Board (or any committee thereof) or
by another enterprise or its board of directors (or any committee thereof). For purposes of this
Section 9(c), the term “another enterprise” means any other corporation, partnership,
limited liability company, joint venture, trust, employee benefit plan or other enterprise of which
the Indemnitee is or was serving at the request of the Company as a director, officer, employee or
agent. The provisions of this Section 9(c) shall not be deemed to be exclusive or to limit
in any way the other circumstances in which the Indemnitee may be deemed or found to have met the
applicable standard of conduct set forth in this Agreement. In addition, the knowledge and/or
actions, or failure to act, of any other director, trustee, partner, managing member, fiduciary,
officer, agent or employee of the Company shall not be imputed to the Indemnitee for purposes of
determining the right to indemnification under this Agreement. Whether or not the foregoing
provisions of this Section 9(c) are satisfied, it shall in any event be presumed that the
Indemnitee has acted in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the Company, and, with respect to a criminal Proceeding, that he also had
no reasonable cause to believe his conduct was unlawful. Anyone seeking to overcome this
presumption shall have the burden of proof and the burden of persuasion, by clear and convincing
evidence.

          (d) For purposes of this Agreement, references to “fines” shall include any excise taxes
assessed on the Indemnitee with respect to an employee benefit plan; references to “serving at the
request of the Company” shall include, but shall not be limited to, any service as a director,
officer, employee or agent of the Company which imposes duties on, or involves services by, the
Indemnitee with respect to an employee benefit plan, its participants or its beneficiaries; and if
the Indemnitee has acted in good faith and in a manner he reasonably believed to be in the interest
of the participants and beneficiaries of an employee benefit plan, he shall be deemed to have acted
in a manner “not opposed to the best interests of the Company” as used in this Agreement. The
provisions of this Section 9(d) shall not be deemed to be exclusive or to limit in any way
the other circumstances in which the Indemnitee may be deemed or found to have met the applicable
standard of conduct set forth in this Agreement.

          10. Remedies of the Indemnitee.

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          (a) In the event that (i) a determination is made pursuant to Section 8 of this
Agreement that the Indemnitee is not entitled to indemnification under this Agreement, (ii)
advancement of Expenses is not timely made pursuant to Section 7 of this Agreement, (iii)
the determination of entitlement to indemnification is to be made by the Board pursuant to
Section 8(b) of this Agreement and such determination shall not have been made and
delivered to the Indemnitee in writing within twenty (20) days after receipt by the Company of the
request for indemnification, (iv) the determination of entitlement to indemnification is to be made
by Independent Counsel pursuant to Section 8(b) or (c) of this Agreement and such
determination shall not have been made in a written opinion to the Board and a copy delivered to
the Indemnitee within forty-five (45) days after receipt by the Company of the request for
indemnification, (v) payment of indemnification is not made pursuant to Section 6 of this
Agreement within 10 days after receipt by the Company of a written request therefor or (vi) payment
of indemnification is not made within 10 days after a determination has been made that the
Indemnitee is entitled to indemnification or such determination is deemed to have been made
pursuant to Section 8 or 9 of this Agreement, the Indemnitee shall be entitled to
an adjudication in the Court of Chancery of the State of Delaware of his entitlement to such
indemnification or advancement of Expenses. Alternatively, the Indemnitee, at his sole option, may
seek an award in arbitration to be conducted by a single arbitrator pursuant to the rules of the
American Arbitration Association. The Indemnitee shall commence such Proceeding seeking an
adjudication or an award in arbitration within 180 days following the date on which the Indemnitee
first has the right to commence such Proceeding pursuant to this Section 10(a);
provided, however, that the foregoing clause shall not apply in respect of a
Proceeding brought by the Indemnitee to enforce his rights under Section 5 of this
Agreement.

          (b) In the event that a determination is made pursuant to Section 8 of this Agreement
that the Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration
commenced pursuant to this Section 10 shall be conducted in all respects as a de novo trial
or a de novo arbitration (as applicable) on the merits, and the Indemnitee shall not be prejudiced
by reason of that adverse determination. In any judicial proceeding or arbitration commenced
pursuant to this Section 10, the Company shall have the burden of proving that the
Indemnitee is not entitled to indemnification, and the Company shall be precluded from referring to
or offering into evidence a determination made pursuant to Section 8 of this Agreement that
is adverse to the Indemnitee’s right to indemnification. If the Indemnitee commences a judicial
proceeding or arbitration pursuant to this Section 10, the Indemnitee shall not be required
to reimburse the Company for any advances pursuant to Section 7 until a final determination
is made with respect to the Indemnitee’s entitlement to indemnification (as to which all rights of
appeal have been exhausted or have lapsed).

          (c) If a determination is made or deemed to have been made pursuant to Section 8 or
9 of this Agreement that the Indemnitee is entitled to indemnification, the Company shall
be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this
Section 10, absent (i) an intentional misstatement by the Indemnitee of a material fact, or
an intentional omission by the Indemnitee of a material fact necessary to make the Indemnitee’s
statement not materially misleading, in connection with the request for indemnification, or (ii) a
prohibition of such indemnification under applicable law.

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          (d) The Company shall be precluded from asserting in any judicial proceeding or arbitration
commenced pursuant to this Section 10 that the procedures and presumptions of this
Agreement are not valid, binding and enforceable and shall stipulate in any such court or before
any such arbitrator that the Company is bound by all of the provisions of this Agreement.

          (e) In the event that the Indemnitee, pursuant to this Section 10, seeks a judicial
adjudication or an award in arbitration to enforce his rights under, or to recover damages for
breach of, this Agreement, the Indemnitee shall be entitled to recover from the Company, and shall
be indemnified by the Company against, any and all Expenses actually and reasonably incurred by him
in such judicial adjudication or arbitration to the fullest extent permitted by law; provided,
however, that until a final determination is made, the Indemnitee shall be entitled under
Section 7 to receive payment of Expenses hereunder with respect to such Proceeding. In the
event that a Proceeding is commenced by or in the right of the Company against the Indemnitee to
enforce or interpret any of the terms of this Agreement, the Indemnitee shall be entitled to
recover from the Company, and shall be indemnified by the Company against, any and all Expenses
actually and reasonably incurred by him in such Proceeding (including with respect to any
counter-claims or cross-claims made by the Indemnitee against the Company in such Proceeding) to
the fullest extent permitted by law; provided, however, that until a final determination is made,
the Indemnitee shall be entitled under Section 7 to receive payment of Expenses hereunder
with respect to such Proceeding.

          (f) Any judicial adjudication or arbitration determined under this Section 10 shall be
final and binding on the parties.

          11. Defense of Certain Proceedings. In the event the Company shall be obligated under this
Agreement to pay the Expenses of any Proceeding against the Indemnitee in which the Company is a
co-defendant with the Indemnitee, the Company shall be entitled to assume the defense of such
Proceeding, with counsel approved by the Indemnitee, which approval shall not be unreasonably
withheld, upon the delivery to the Indemnitee of written notice of its election to do so. After
delivery of such notice, approval of such counsel by the Indemnitee and the retention of such
counsel by the Company, the Indemnitee shall nevertheless be entitled to employ or continue to
employ his own counsel in such Proceeding. Employment of such counsel by the Indemnitee shall be
at the cost and expense of the Company unless and until the Company shall have demonstrated to the
reasonable satisfaction of the Indemnitee and the Indemnitee’s counsel that there is complete
identity of issues and defenses and no conflict of interest between the Company and the Indemnitee
in such Proceeding, after which time further employment of such counsel by the Indemnitee shall be
at the cost and expense of the Indemnitee. In all events, if the Company shall not, in fact, have
timely employed counsel to assume the defense of such Proceeding, then the fees and Expenses of the
Indemnitee’s counsel shall be at the cost and expense of the Company.

          12. Exception to Right of Indemnification or Advancement of Expenses. Notwithstanding any
other provision of this Agreement, the Indemnitee shall not be entitled to indemnification or
advancement of Expenses under this Agreement with respect to any Proceeding, or any claim therein,
brought or made by the Indemnitee against:

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          (a) the Company, except for (i) any claim or Proceeding in respect of this Agreement and/or
the Indemnitee’s rights hereunder, (ii) any claim or Proceeding to establish or enforce a right to
indemnification under any statute or law, other agreement with the Company or the Company’s
Certificate of Incorporation or Bylaws as now or hereafter in effect, and (iii) any counter-claim
or cross-claim brought or made by him against the Company in any Proceeding brought by or in the
right of the Company against him; or

          (b) any other Person, except for Proceedings or claims approved by the Board.

          13. Contribution.

          (a) If, with respect to any Proceeding, the indemnification provided for in this Agreement is
held by a court of competent jurisdiction to be unavailable to the Indemnitee for any reason other
than that the Indemnitee did not act in good faith and in a manner he reasonably believed to be in
or not opposed to the best interests of the Company or, with respect to a criminal Proceeding, that
the Indemnitee had reasonable cause to believe his conduct was unlawful, the Company shall
contribute to the amount of Expenses, judgments, penalties, fines and amounts paid in settlement
actually and reasonably incurred by the Indemnitee or on his behalf in connection with such
Proceeding or any claim, issue or matter therein in such proportion as is appropriate to reflect
the relative benefits received by the Indemnitee and the relative fault of the Indemnitee versus
the other defendants or participants in connection with the action or inaction which resulted in
such Expenses, judgments, penalties, fines and amounts paid in settlement, as well as any other
relevant equitable considerations.

          (b) The Company and the Indemnitee agree that it would not be just and equitable if
contribution pursuant to this Section 13 were determined by pro rata or per capita
allocation or by any other method of allocation which does not take into account the equitable
considerations referred to in Section 13(a) above.

          (c) No Person found guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act of 1933) shall be entitled to contribution from any Person who was not
found guilty of such fraudulent misrepresentation.

          14. Officer and Director Liability Insurance.

          (a) The Company shall use all commercially reasonable efforts to obtain and maintain in effect
during the entire period for which the Company is obligated to indemnify the Indemnitee under this
Agreement, one or more policies of insurance with reputable insurance companies to provide the
directors and officers of the Company with coverage for losses from wrongful acts and omissions and
to ensure the Company’s performance of its indemnification obligations under this Agreement. In
all such insurance policies, the Indemnitee shall be named as an insured in such a manner as to
provide the Indemnitee with the same rights and benefits as are accorded to the most favorably
insured of the Company’s directors and officers. Notwithstanding the foregoing, the Company shall
have no obligation to obtain or maintain such insurance if the Company determines in good faith
that the Indemnitee is covered by such insurance maintained by a subsidiary or parent of the
Company.

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          (b) To the extent that the Company maintains an insurance policy or policies providing
liability insurance for directors or officers of any other corporation, partnership, limited
liability company, joint venture, trust, employee benefit plan or other enterprise which the
Indemnitee serves at the request of the Company, the Indemnitee shall be named as an insured under
and shall be covered by such policy or policies in accordance with its or their terms to the
maximum extent of the coverage available for the most favorably insured director or officer under
such policy or policies.

          (c) In the event that the Company is a named insured under any policy or policies of insurance
referenced in either Section 14(a) or (b) above, the Company hereby covenants and
agrees that it will not settle any claims or Proceedings that may be covered by such policy or
policies of insurance and in which the Indemnitee has or may incur Expenses, judgments, penalties,
fines or amounts paid in settlement without the prior written consent of the Indemnitee.

          15. Security. Upon reasonable request by the Indemnitee, the Company shall provide security
to the Indemnitee for the Company’s obligations hereunder through an irrevocable bank letter of
credit, funded trust or other similar collateral. Any such security, once provided to the
Indemnitee, may not be revoked or released without the prior written consent of the Indemnitee,
which consent may be granted or withheld at the Indemnitee’s sole and absolute discretion.

          16. Settlement of Claims. The Company shall not be liable to indemnify the Indemnitee under
this Agreement for any amounts paid in settlement of any Proceeding effected without the Company’s
written consent, which consent shall not be unreasonably withheld.

          17. Duration of Agreement. This Agreement shall be unaffected by the termination of the
Corporate Status of the Indemnitee and shall continue for so long as the Indemnitee may have any
liability or potential liability by virtue of his Corporate Status, including, without limitation,
the final termination of all pending Proceedings in respect of which the Indemnitee is granted
rights of indemnification or advancement of Expenses hereunder and of any Proceeding commenced by
the Indemnitee pursuant to Section 10 of this Agreement relating thereto, whether or not he
is acting or serving in such capacity at the time any liability or Expense is incurred for which
indemnification can be provided under this Agreement. This Agreement shall be binding upon and
inure to the benefit of and be enforceable by the parties hereto and their respective successors
(including any direct or indirect successor by purchase, merger, consolidation or otherwise to all
or substantially all of the business or assets of the Company), assigns, spouses, heirs, executors
and personal and legal representatives.

          18. Remedies of the Company. The Company hereby covenants and agrees to submit any and all
disputes relating to this Agreement that the parties are unable to resolve between themselves to
binding arbitration pursuant to the rules of the American Arbitration Association and waives all
rights to judicial adjudication of any matter or dispute relating to this Agreement except where
judicial adjudication is requested or required by the Indemnitee.

          19. Limitation of Liability. Notwithstanding any other provision of this Agreement, neither
party shall have any liability to the other for, and neither party shall be

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entitled to recover from the other, any consequential, special, punitive, multiple or
exemplary damages as a result of a breach of this Agreement.

          20. Subrogation. In the event of any payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee, who
shall execute all papers required and take all action necessary to secure such rights, including
execution of such documents as are necessary to enable the Company to bring suit to enforce such
rights.

          21. Definitions. For purposes of this Agreement:

          (a) “Affiliate” means, with respect to any Person, any other Person directly or
indirectly controlling, controlled by or under common control with such Person. For purposes
hereof, “control” (including, with correlative meaning, the terms “controlling”, “controlled by”
and “under common control with”) means the possession, directly or indirectly, of the power to
direct or cause the direction of management and policies of such Person, by contract or otherwise.

          (b) “Authorized Representative” means (i) a director, officer, employee, agent or
fiduciary of the Company or any Subsidiary and (ii) a person serving at the request of the Company
or any Subsidiary as a director, officer, employee, fiduciary or other representative of another
corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or
other enterprise.

          (c) “Board” means the Board of Directors of the Company.

          (d) “Change of Control” shall mean a change in control of the Company occurring after
the date of this Agreement of a nature that would be required to be reported in response to Item
6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule
or form) promulgated under the Exchange Act, whether or not the Company is then subject to such
reporting requirement. Without limiting the foregoing, such a Change in Control shall be deemed to
have occurred if, after the date of this Agreement, (i) any “person” (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act) other than a Permitted Holder is or becomes the
“beneficial owner” (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or
indirectly, of securities of the Company representing 20% or more of the combined voting power of
the Company’s then outstanding securities entitled to vote generally in the election of directors
without the prior approval of at least two-thirds of the members of the Board in office immediately
prior to such person attaining such percentage interest; (ii) the Company is a party to a merger,
consolidation, sale of assets or other reorganization, or a proxy contest, as a consequence of
which members of the Board in office immediately prior to such transaction or event constitute less
than a majority of the Board thereafter; (iii) during any period of two consecutive years,
individuals who at the beginning of such period constituted the Board (including for this purpose
any new director whose election or nomination for election by the Company’s shareholders was
approved by a vote of at least two-thirds 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; or (iv) approval by the shareholders of the Company of a liquidation or dissolution of the
Company.

10

 

          (e) “Company” means Basic Energy Services, Inc., a Delaware corporation.

          (f) “Corporate Status” describes the status of an individual who is or was an officer,
director, employee or agent of the Company or any of the Company’s Affiliates, or is or was serving
at the request of the Company or any of its Affiliates as an officer, director, employee, agent or
trustee of another corporation, partnership, limited liability company, joint venture, trust,
employee benefit plan or other enterprise.

          (g) “Disinterested Director” means a director of the Company who is not and was not a
party to, or otherwise involved in, the Proceeding for which indemnification is sought by the
Indemnitee.

          (h) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          (i) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees and all other disbursements or
expenses of the types customarily incurred in connection with prosecuting, defending, preparing to
prosecute or defend, investigating or being or preparing to be a witness in a Proceeding.

          (j) “Independent Counsel” means a law firm or a member of a law firm that is
experienced in matters of corporation law and neither presently is, nor in the past five (5) years
has been, retained to represent: (i) the Company or the Indemnitee in any matter material to either
such party or (ii) any other party to the Proceeding giving rise to a claim for indemnification
hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any
Person who, under the applicable standards of professional conduct then prevailing, would have a
conflict of interest in representing either the Company or the Indemnitee in an action to determine
the Indemnitee’s rights under this Agreement

          (k) “Permitted Holder” means Credit Suisse First Boston, Inc., its Affiliates, and DLJ
Merchant Banking Partners III, L.P. and any other partnerships, funds or other entities either
controlled by Credit Suisse First Boston, Inc. or its Affiliates or for which such Persons have
voting or investment control over shares of the Company’s securities without other control.

          (l) “Person” means a natural person, firm, partnership, joint venture, association,
corporation, company, limited liability company, trust, business trust, estate or other entity.

          (m) “Proceeding” includes any action, suit, arbitration, alternate dispute resolution
mechanism, investigation, administrative hearing or any other proceeding whether civil, criminal,
administrative or investigative.

          22. Non-Exclusivity. The Indemnitee’s rights of indemnification and to receive advancement of
Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which
the Indemnitee may at any time be entitled under applicable law, the Certificate, the Bylaws, any
other agreement, a vote of stockholders, a resolution of directors or otherwise.

11

 

          23. Remedies Not Exclusive. No right or remedy herein conferred upon the Indemnitee is
intended to be exclusive of any other right or remedy, and every other right or remedy shall be
cumulative of and in addition to the rights and remedies given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy of
the Indemnitee hereunder or otherwise shall not be deemed an election of remedies on the part of
the Indemnitee and shall not prevent the concurrent assertion or employment of any other right or
remedy by the Indemnitee.

          24. Changes in Law. In the event that a change in applicable law after the date of this
Agreement, whether by statute, rule or judicial decision, expands or otherwise increases the right
or ability of a Delaware corporation to indemnify (or otherwise pay or advance Expenses as to any
Proceeding for the benefit of) a member of its board of directors or an officer, the Indemnitee
shall, by this Agreement, enjoy the greater benefits so afforded by such change. In the event that
a change in applicable law after the date of this Agreement, whether by statute, rule or judicial
decision, narrows or otherwise reduces the right or ability of a Delaware corporation to indemnify
(or otherwise pay or advance Expenses as to any Proceeding for the benefit of) a member of its
board of directors or an officer, such change shall have no effect on this Agreement or any of the
Indemnitee’s rights hereunder, except and only to the extent required by law.

          25. Interpretation of Agreement; Negligence. The Company and the Indemnitee acknowledge and
agree that it is their intention that this Agreement be interpreted and enforced so as to provide
indemnification to the Indemnitee to the fullest extent now or hereafter permitted by law. WITHOUT
LIMITING THE GENERALITY OF THE FOREGOING< THE COMPANY AND THE INDEMNITEE EACH HEREBY EXPRESSLY
ACKNOWLEDGES AND AGREES THAT (A) THE INDEMNIFICATION PROVIDED UNDER THIS AGREEMENT SHALL EXTEND TO
AND INCLUDE, BUT SHALL NOT BE LIMITED TO, INDEMNIFICATION FOR EXPENSES, JUDGMENTS, PENALTIES, FINES
AND AMOUNTS PAID IN SETTLEMENT ARISING, IN WHOLE OR IN PART, OUT OF THE SOLE OR CONCURRENT
NEGLIGENCE OF THE INDEMNITEE AND (B) THIS SECTION 25 CONSTITUTES A CONSPICUOUS NOTICE OF
SUCH AGREEMENT FOR ALL PURPOSES.

          26. Severability. If any provision or provisions of this Agreement shall be held to be
invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and
enforceability of the remaining provisions of this agreement (including, without limitation, each
portion of any Section of this Agreement containing any such provision held to be invalid, illegal
or unenforceable) shall not in any way be affected or impaired thereby; (b) such provision or
provisions will be deemed reformed to the extent necessary to conform to applicable law and to give
maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the
provisions of this Agreement (including, without limitation, each portion of any Section of this
Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not
itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent
manifested by the provision or provisions held invalid, illegal or unenforceable.

          27. Governing Law; Jurisdiction and Venue; Specific Performance.

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          (a) The parties agree that this Agreement shall be governed by, and construed and enforced in
accordance with, the internal laws of the State of Delaware without giving effect to any choice or
conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the State of Delaware.

          (b) ANY “ACTION OR PROCEEDING” (AS SUCH TERM IS DEFINED BELOW) ARISING OUT OF OR RELATING TO
THIS AGREEMENT SHALL BE FILED IN AND LITIGATED OR ARBITRATED SOLELY BEFORE THE CHANCERY COURT OF
THE STATE OF DELAWARE OR AN ARBITRATION HEARING HELD IN HARRIS COUNTY, TEXAS, AND EACH PARTY TO
THIS AGREEMENT: (i) GENERALLY AND UNCONDITIONALLY ACCEPTS THE EXCLUSIVE JURISDICTION OF THE
AFORESAID COURTS AND VENUE THEREIN, AND WAIVES TO THE FULLEST EXTENT PROVIDED BY LAW ANY DEFENSE OR
OBJECTION TO SUCH JURISDICTION AND VENUE BASED UPON THE DOCTRINE OF “FORUM NON CONVENIENS;” AND
(ii) GENERALLY AND UNCONDITIONALLY CONSENTS TO SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING
BY DELIVERY OF CERTIFIED OR REGISTERED MAILING OF THE SUMMONS AND COMPLAINT IN ACCORDANCE WITH THE
NOTICE PROVISIONS OF THIS AGREEMENT. FOR PURPOSES OF THIS SECTION, THE TERM “ACTION OR PROCEEDING”
IS DEFINED AS ANY AND ALL CLAIMS, SUITS, ACTIONS, HEARINGS, ARBITRATIONS OR OTHER SIMILAR
PROCEEDINGS, INCLUDING APPEALS AND PETITIONS THEREFROM, WHETHER FORMAL OR INFORMAL, GOVERNMENTAL OR
NON-GOVERNMENTAL, OR CIVIL OR CRIMINAL. THE FOREGOING CONSENT TO JURISDICTION SHALL NOT CONSTITUTE
GENERAL CONSENT TO SERVICE OF PROCESS IN THE STATE OF DELAWARE OR THE STATE OF TEXAS FOR ANY
PURPOSE EXCEPT AS PROVIDED ABOVE, AND SHALL NOT BE DEEMED TO CONFER RIGHTS ON ANY PERSON OTHER THAN
THE PARTIES TO THIS AGREEMENT.

          (c) The Company acknowledges that the Indemnitee may, as a result of the Company’s breach of
its covenants and obligations under this Agreement, sustain immediate and long-term substantial and
irreparable injury and damage which cannot be reasonably or adequately compensated by damages at
law. Consequently, the Company agrees that the Indemnitee shall be entitled, in the event of the
Company’s breach or threatened breach of its covenants and obligations hereunder, to obtain
equitable relief from a court of competent jurisdiction, including enforcement of each provision of
this Agreement by specific performance and/or temporary, preliminary and/or permanent injunctions
enforcing any of the Indemnitee’s rights, requiring performance by the Company, or enjoining any
breach by the Company, all without proof of any actual damages that have been or may be caused to
the Indemnitee by such breach or threatened breach and without the posting of bond or other
security in connection therewith. The Company waives the claim or defense therein that the
Indemnitee has an adequate remedy at law, and the Company shall not allege or otherwise assert the
legal position that any such remedy at law exists. The Company agrees and acknowledges that: (i)
the terms of this Section 27(c) are fair, reasonable and necessary to protect the
legitimate interests of the Indemnitee; (ii) this waiver is a material inducement to the Indemnitee
to enter into the

13

 

transactions contemplated hereby; and (iii) the Indemnitee relied upon this waiver in entering
into this Agreement and will continue to rely on this waiver in its future dealings with the
Company. The Company represents and warrants that it has reviewed this provision with its legal
counsel, and that it has knowingly and voluntarily waived its rights referenced in this Section
27 following consultation with such legal counsel.

          28. Nondisclosure of Payments. Except as expressly required by Federal securities laws, the
Company shall not disclose any payments under this Agreement without the prior written consent of
the Indemnitee. Any payments to the Indemnitee that must be disclosed shall, unless otherwise
required by law, be described only in the Company proxy or information statements relating to
special and/or annual meetings of the Company’s shareholders, and the Company shall afford the
Indemnitee a reasonable opportunity to review all such disclosures and, if requested by the
Indemnitee, to explain in such statement any mitigating circumstances regarding the events
reported.

          29. Notice by the Indemnitee; Notice to Insurers.

          (a) The Indemnitee agrees to promptly notify the Company in writing upon being served with any
summons, citation, subpoena, complaint, indictment, information or other document relating to any
Proceeding or matter which may be subject to indemnification or advancement of Expenses covered
hereunder; provided, however, that the failure of the Indemnitee to timely provide such notice
shall not affect the Indemnitee’s right to be indemnified or to receive adjustment of Expenses
under this Agreement except if, and then only to the extent that, the Company is actually
prejudiced by such failure.

          (b) If, at the time of the receipt by the Company of a notice of a Proceeding pursuant to
Section 29(a) above, the Company has insurance in effect which may cover such Proceeding, the
Company shall give prompt notice of commencement of such Proceeding to the insurers in accordance
with the procedures set forth in the respective policies. The Company shall thereafter take all
necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all
amounts payable as a result of such Proceeding in accordance with the terms of such policies.

          30. Notices. All notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given if (a) delivered by hand and received for by
the party to whom said notice or other communication shall have been directed, or (b) mailed by
U.S. certified or registered mail with postage prepaid, on the third business day after the date on
which it is so mailed: (i) If to the Company: Basic Energy Services, Inc., 500 W. Illinois, Suite
100, Midland, Texas 79701, Attention: President; and (ii) if to any other party hereto, including
the Indemnitee, to the address of such party set forth on the signature page hereof; or to such
other address as may have been furnished by any party to the other(s), in accordance with this
Section 30.

          31. Modification and Waiver. No supplement, modification or amendment of this Agreement or
any provision hereof shall limit or restrict in any way any right of the Indemnitee under this
Agreement with respect to any action taken or omitted by the Indemnitee in his Corporate Status
prior to such supplement, modification or amendment. No supplement,

14

 

modification or amendment of this Agreement or any provision hereof shall be binding unless
executed in writing by both of the Company and the Indemnitee. No waiver of any provision of this
Agreement shall be deemed or shall constitute a wavier of any other provision hereof (whether or
not similar) nor shall such waiver constitute a continuing waiver.

          32. Headings. The headings of the Sections or paragraphs of this Agreement are inserted for
convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

          33. Gender. Use of the masculine pronoun in this Agreement shall be deemed to include usage
of the feminine pronoun where appropriate.

          34. Identical Counterparts. This Agreement may be executed in one or more counterparts
(whether by original, photocopy or facsimile signature), each of which shall for all purposes be
deemed to be an original, but all of which together shall constitute one and the same Agreement.
Only one such counterpart executed by the party against whom enforcement is sought must be produced
to evidence the existence of this Agreement.

15

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the day
and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	BASIC ENERGY SERVICES, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

Name:

	 	 
	 	 	 	 

Name:

	 	 
	 

	 	Title:

	 	 	 	 	 	Title:

	 	 

	 	 	 	 	 
	 	INDEMNITEE

 	 
	 	
 	 
	 	[Name]
 	 
	 	500 W. Illinois, Suite 100

Midland, Texas 79701 	 
	 

16

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