Document:

exv10w6

 

EXHIBIT 10.6

MITCHAM INDUSTRIES, INC.

STOCK APPRECIATION RIGHTS AGREEMENT

(1998 STOCK AWARDS PLAN)

     THIS STOCK APPRECIATION RIGHTS AGREEMENT (the “SAR Agreement”) is between
Mitcham Industries, Inc., a Texas corporation (the “Company”), and
                    (the “Employee”), which parties agree as follows:

     1. Introduction. The Company has adopted the Mitcham Industries, Inc.
1998 Stock Awards Plan (the “Plan”) to provide employees upon whom the
responsibilities of the successful administration and management of the Company
rest additional incentive and reward opportunities designed to advance the
Company’s profitable growth. The Company, acting through the Committee, has
determined that its interests will be advanced by issuing the Employee Stock
Appreciation Rights under the Plan. All capitalized terms in this SAR
Agreement not defined in this SAR Agreement will have the meanings given to
them in the Plan.

     2. Grant of Stock Appreciation Rights. The Company hereby irrevocably
grants to the Employee                     Stock Appreciation Rights under the terms and
conditions set forth herein and in the Plan. A “Stock Appreciation Right” is
the right to receive a payment from the Company in an amount equal to the
“Spread,” which is defined as the excess of the Fair Market Value of one share
of common stock, $.01, par value (the “Stock”) of the Company at the Exercise
Date (defined in Section 5) over a specified price (the “Award Price”) fixed by
the Committee which is not less than 100% of the Fair Market Value of the Stock
at the grant date of the Stock Appreciation Rights. If the Stock Appreciation
Rights are granted in tandem with an Option, the Employee’s exercise of the
Stock Appreciation Rights will result in his exercise of the related option at
the same time.

     3. Award Price. The Award Price of the Stock Appreciation Rights to the
Employee is $                    per Stock Appreciation Right.

     4. Stock Appreciation Right Period. The Employee may exercise the Stock
Appreciation Rights, in whole or in part, during a ten-year period beginning
                                      ,                     (the “Date of Grant”) (the “SAR Period”), except that
they may not be exercised (a) at any time before the expiration of the Date of
Grant; or (b) for more than a percentage of the aggregate number of Stock
Appreciation Rights granted by this SAR Agreement determined by the number of
full years of the Employee’s employment with the Company or its Affiliates from
the Date of Grant to the Exercise Date (the “Vested SARs”), as follows:

	 
	Number of 	 	Percentage
	Full Years
	 	Exercisable

Notwithstanding anything in this SAR Agreement to the contrary, the Committee,
in its sole discretion, may waive the foregoing schedule of vesting and
accelerate the earliest date or dates on which any of the Stock Appreciation
Rights are exercisable.

 

 

     5. Procedure for Exercise. The Employee may exercise Vested SARs by
delivering written notice to the Secretary of the Company including the number
of Vested SARs being exercised and the date on which such exercise is to be
effective (“Exercise Date”). Upon the Employee’s exercise of Vested SARs under
this SAR Agreement, the Company shall pay the Employee, within thirty (30) days
of the Exercise Date, an amount equal to the product of (i) the number of
Vested SARs exercised, multiplied by (ii) the Spread. Such payment will be
made, in the Committee’s discretion, in (a) cash, (b) shares of Stock with a
Fair Market Value equal to the amount of the payment, or (c) a combination of
cash and shares of Stock.

     6. Termination of Employment. If the Employee ceases to be employed by
the Company or its Affiliates for any reason other than death or disability,
all Stock Appreciation Rights, whether vested or not, granted to the Employee
shall expire upon such termination of employment. However, the Committee may
allow the Employee to exercise all or a portion of the Employee’s Vested SARs
for a period of time after the Employee’s termination of employment hereunder.

     7. Death or Disability. If the Employee dies or is determined to be
disabled while employed by the Company or its Affiliates, then the Employee,
the guardian of the Employee’s estate, the executor or administrator of the
Employee’s estate or the person or persons to whom the Employee’s rights under
this SAR Agreement pass by will or the laws of descent and distribution, may
exercise all Vested SARs at any time and from time to time, within a one-year
period after such death or determination of disability. However, the Vested
SARs may not be exercised after the SAR Period. The Employee shall be deemed
to be disabled if, in the opinion of a physician selected by the Committee, the
Employee incapable of performing for the Company services of the kind he was
performing at the time the disability occurred, due to any medically
determinable physical or mental impairment that can be expected to result in
death or to continue indefinitely. The date of determination of disability for
purposes hereof shall be the date of such physician’s determination.

     8. Expiration of Stock Appreciation Rights. Any Stock Appreciation Rights
exercised under this Agreement shall expire automatically as of the Exercise
Date. Stock Appreciation Rights shall also expire upon the Employee’s
termination of employment with the Company or its Affiliates in accordance with
Sections 6 and 7 above.

     9. Extraordinary Corporate Transactions. Solely for purposes of the Plan
and this SAR Agreement, each Stock Appreciation Right has been equated with one
share of Stock as constituted on the execution date of this SAR Agreement. If,
after the execution of this SAR Agreement, the Company is recapitalized or
otherwise changes its capital structure or the number of issued and outstanding
shares of Stock as a result of a share dividend or a subdivision or
consolidation of shares without receipt of consideration by the Company, the
number of Stock Appreciation Rights previously granted to the Employee shall be
appropriately adjusted as provided under the Plan. If there is a “Change of
Control” all Stock Appreciation Rights shall immediately vest and be fully
exercisable.

     10. Requirements of Law. The granting of Stock Appreciation Rights shall
be subject to all applicable laws, rules, and regulations, and to such
approvals by any governmental agencies or national securities exchanges as may
be required.

2

 

     11. Withholding of Tax. To the extent that the exercise or disposition of
the Stock Appreciation Rights results in compensation income to the Employee
for federal or state income tax purposes, the Employee shall pay to the Company
at the time of such exercise or disposition such amount of money as the Company
may require to meet its obligations under applicable tax laws or regulations.
If the Employee fails to do so, the Company is authorized to withhold any such
tax from any cash remuneration then or thereafter payable to the Employee, or
may otherwise refuse to issue or transfer any shares otherwise required to be
issued or transferred under this SAR Agreement.

     12. No Right to Employment. The Employee shall be considered to be in the
employment of the Company or its Affiliates as long as he remains employed on a
full-time basis by the Company or its Affiliates, or any corporation to which
substantially all of the assets and business of the Company are transferred.
The Committee shall determine whether and when there has been a termination of
the Employee’s employment and the cause of such termination, and its
determination shall be final. Nothing in this SAR Agreement or the granting of
Stock Appreciation Rights shall confer on the Employee the right to continued
employment by the Company or its Affiliates or affect in any way the right of
the Company or its Affiliates to terminate such employment at any time.

     13. Resolution of Disputes. As a condition of the granting of the Stock
Appreciation Rights, the Employee and his heirs and successors agree that the
Committee shall determine and resolve in its sole discretion and judgment, any
dispute or disagreement that arises hereunder, and that any such determination
and any resolution of the terms of this SAR Agreement shall be final, binding
and conclusive upon the Company, the Employee, his heirs and personal
representatives.

     14. Prohibition Against Assignment or Encumbrance. Except as provided in
Sections 7 and 15, no right, title, interest or benefit hereunder shall ever be
transferable or liable for or charged with any of the torts or obligations of
the Employee or any person claiming under the Employee, or be subject to
seizure by any creditor of the Employee or any person claiming under the
Employee. The Employee shall not nor any person claiming under the Employee
anticipate or dispose of any right, title, interest or benefit hereunder in any
manner until the same shall have been actually distributed free and clear under
the terms of this SAR Agreement.

     15. Beneficiary Designation. The Employee may name, from time to time, any
beneficiary or beneficiaries (who may be named contingently or successively) to
whom any benefit under this SAR Agreement is to be paid in the case of the
death of the Employee before he receives any or all of such benefit. Each
designation will revoke all prior designations by the Employee, shall be in a
form prescribed by the Committee, and will be effective only when filed by the
Employee in writing with the Committee during his lifetime. In the absence of
any such designation, benefits remaining unpaid at the Employee’s death shall
be paid to his estate.

     16. Notices. Every notice hereunder shall be in writing and shall be
given by registered or certified mail. All notices of the exercise of any Stock
Appreciation Rights hereunder shall be directed to Mitcham Industries, Inc.,
44000 Highway 75 South, P. O. Box 1175, Huntsville, Texas 77342. Attention:
Secretary. Any notice given by the Company to the Employee directed to him at
his address on file with the Company shall be effective to bind him

3

 

and any other person who shall acquire rights hereunder. The Company has
no obligation to advise the Employee of the existence, maturity or termination
of any of the Employee’s rights hereunder. The Employee shall be deemed to
have familiarized himself or herself with all matters contained in this SAR
Agreement and in the Plan that may affect any of the Employee’s rights or
privileges hereunder.

     17. SAR Agreement Subject to Plan. This SAR Agreement is subject to the
Plan. The terms and provisions of the Plan (including any amendments thereto)
are hereby incorporated in this SAR Agreement by reference thereto. If there
is a conflict between any term or provision contained in this SAR Agreement and
a term or provision of the Plan, the terms and provisions of the Plan will
govern and prevail.

     18. Binding Effect. This SAR Agreement shall be binding upon and inure to
the benefit of any successors to the Company and all persons lawfully claiming
under the Employee.

     19. Employee Rights Unsecured. The right of the Employee to receive
payment under this SAR Agreement shall be an unsecured claim against the
general assets of the Company. The Employee shall have no right in or against
any assets of the Company.

     20. Governing Law. This SAR Agreement shall be governed by and construed
in accordance with the laws of the State of Texas.

DATED                                       ,                    .

	 	 	 
	

	 	MITCHAM INDUSTRIES, INC.
	 
	 	 
	

	 	By:
	 

	 	

	

	 	Name:
	 

	 	

	

	 	Title:
	 

	 	

	 
	 	 
	

	 	THE EMPLOYEE
	 

	 	 
	 

	 	

4exv10w7

 

EXHIBIT 10.7

MITCHAM INDUSTRIES, INC.

INCENTIVE STOCK OPTION AGREEMENT

(2000 STOCK OPTION PLAN)

     Mitcham Industries, Inc., a Texas corporation (the “Company”), has granted
to                                        (the “Optionee”), an option (“Option”) to purchase a total
of                    shares of Common Stock (the “Shares”), at the price set forth below
and in all respects subject to the terms, definitions and provisions of the
Company’s 2000 Stock Option Plan (the “Plan’) adopted by the Company, the terms
of which are incorporated herein by reference. Capitalized terms used but not
defined in this Option shall have the same meanings as are given to them in the
Plan.

     1. Nature of Option. This Option is intended by the Company and the
Optionee to be an Incentive Stock Option within the meaning of Section 422 of
the Internal Revenue Code of 1986, as amended.

     2. Exercise Price. The exercise price is                    ($                   ) for
each Share (the “Exercise Price”), which is at least 100% of the fair market
value (as defined in the Plan) of a share of Common Stock on the date of grant.

     3. Exercise of Option. This Option shall be exercisable as to 1/3 of the
Shares on each of the first, second and third anniversary dates of this Option,
subject to the provisions of Section 9 of the Plan and the provisions of this
Option.

     This Option is exercisable by written notice stating the election to
exercise the Option, the number of Shares in respect of which this Option is
being exercised, and such representations and agreements as to the holder’s
investment intent with respect to such Shares as may be required by the
Company. Such written notice shall be signed by the Optionee and shall be
delivered in person or by certified mail to the Secretary of the Company. The
written notice shall be accompanied by payment of the Exercise Price in full.
This Option shall be deemed exercised upon receipt by the Company of such
written notice accompanied by the Exercise Price.

     No Shares will be issued on the exercise of this Option unless such
issuance and such exercise complies with all relevant provisions of any
applicable law including, without limitation, the Securities Act of 1933, as
amended (the “Securities Act”), the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the requirements
of any stock exchange upon which the Shares may then be listed, and shall be
further subject to approval of counsel for the Company with respect to such
compliance. Assuming such compliance, for income tax purposes, the Shares
shall be considered transferred to the Optionee on the date on which this
Option is exercised with respect to such Shares.

     4. Method of Payment. Payment of the exercise price shall be by any of
the following, or a combination thereof, at the election of the Board:

     (a) cash;

 

 

     (b) certified or cashier’s check; or

     (c) surrender of other shares of Common Stock of the Company
that (i) either have been owned by the Optionee for more than six
months on the date of surrender or were not acquired, directly or
indirectly, from the Company and (ii) have a fair market value on
the date of surrender equal to the aggregate Exercise Price of the
Shares as to which this Option is being exercised.

     5. Restrictions on Exercise. This Option may not be exercised: (a) until
the Plan has been approved by the shareholders of the Company or (b) if the
issuance of such Shares upon such exercise or the method or payment of
consideration for such Shares would constitute a violation of any applicable
federal or state securities or other law or regulation. As a condition to the
exercise of this Option, the Company may require the Optionee to make any
representation and warranty to the Company as may be required by any applicable
law or regulation.

     6. Termination of Status as an Employee. In the event of termination of
the Optionee’s Continuous Status as an Employee, he may, but only for a period
of time of no more than three months after the date of such termination (but in
no event later than the date of expiration of the term of this Option as set
forth in Section 11 below), exercise this Option to the extent that he was
entitled to exercise it as of the date of such termination. To the extent that
he was not entitled to exercise this Option at the date of such termination, or
if he does not exercise this Option within the time specified herein, this
Option shall terminate with respect to all Shares whether vested or unvested.

     7. Disability of the Optionee. Notwithstanding the provisions of Section
6 above, in the event of termination of the Optionee’s Continuous Status as an
Employee as a result of his total and permanent disability (as defined in
Section 22(e)(3) of the Code), he may, but only within 12 months from the date
of such termination (but in no event later than the date of expiration of the
term of this Option as set forth in Section 11 below), exercise this Option to
the extent he was entitled to exercise it at the date of such termination. To
the extent that he was not entitled to exercise this Option at the date of
termination, or if he does not exercise such Option (which he was entitled to
exercise) within the time specified herein, this Option shall terminate with
respect to all Shares whether vested or unvested.

     8. Death of the Optionee. If the Optionee dies:

     (a) during the term of this Option and while an Employee and
having been in Continuous Status as an Employee since the date of
grant of this Option, this Option may be exercised at any time
within 12 months after the date of death (but in no event later
than the date of expiration of the term of this Option as set
forth in Section 11 below), by the personal representative of the
Optionee’s estate or by a person who acquired the right to
exercise this Option by bequest or inheritance, but only to the
extent of the right to exercise that would have accrued had the
Optionee continued living and remained in Continuous Status as an
Employee 12 months after the date of death; or

2

 

     (b) within 30 days after the termination of the Optionee’s
Continuous Status as an Employee, this Option may be exercised at
any time within 11 months after the date of death (but in no event
later than the date of expiration of the term of this Option as
set forth in Section 11 below), by the Optionee’s estate or by a
person who acquired the right to exercise this Option by bequest
or inheritance, but only to the extent of the right to exercise
that had accrued at the date of termination.

     9. Forfeitures. Notwithstanding any other provisions of this Option, if
an Optionee is convicted of or pleads guilty or nolo contendere to any felony
criminal offense or any civil offense involving either fraud or the
unauthorized closure of confidential information of the Company, the Committee
may then determine that all outstanding options of the Optionee that have not
been exercised are forfeited.

     10. Non-Transferability of Option. This Option may not be transferred in
any manner other than by will or by the laws of descent or distribution and may
be exercised during the lifetime of the Optionee only by the Optionee. The
terms of this Option shall be binding upon the executors, administrators,
heirs, successors and assigns of the Optionee.

     11. Term of Option. This Option may not be exercised more than 10 years
from the date of grant of this Option, and may be exercised during such term
only in accordance with the Plan and the terms of this Option.

DATE OF GRANT:                                       , 20                   .

	 	 	 
	

	 	MITCHAM INDUSTRIES, INC.
	 
	 	 
	

	 	By:
	 

	 	

	

	 	       Billy F. Mitcham, Jr., Chief Executive
Officer

3

 

     THE OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT
TO SECTION 3 HEREOF IS EARNED ONLY BY CONTINUING SERVICE AS AN EMPLOYEE AT THE
WILL OF THE COMPANY (NOT THROUGH THE ACTS OF BEING HIRED, BEING GRANTED THIS
OPTION OR ACQUIRING SHARES HEREUNDER). THE OPTIONEE FURTHER ACKNOWLEDGES AND
AGREES THAT NOTHING IN THIS AGREEMENT, NOR IN THE COMPANY’S 2000 STOCK OPTION
PLAN, WHICH IS INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON THE OPTIONEE
ANY RIGHT WITH RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY WITH THE
COMPANY, NOR SHALL IT INTERFERE IN ANY WAY WITH HIS RIGHT OR THE COMPANY’S
RIGHT TO TERMINATE HIS EMPLOYMENT AT ANY TIME, WITH OR WITHOUT CAUSE, UNLESS
OTHERWISE PROVIDED IN A WRITTEN AGREEMENT WITH THE COMPANY.

     The Optionee acknowledges receipt of a copy of the 2000 Stock Option Plan
and represents that he is familiar with the terms and provisions thereof, and
hereby accepts this Option subject to all of the terms and provisions thereof.
The Optionee has reviewed the 2000 Stock Option Plan and this Option in their
entirety and fully understands all provisions of this Option. The Optionee
hereby agrees to accept as binding, conclusive and final all decisions or
interpretations of the Board upon any questions arising under the 2000 Stock
Option Plan. The Optionee further agrees to notify the Company upon any change
in the residence address indicated below:

     Dated:                                       ,                    .

	 	 	 
	 

	 	

	 
	 	 
	

	 	Residence Address:
	 
	 	 
	 

	 	

	 	 	 
	 

	 	

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]