Document:

exv10w3

 

Exhibit 10.3

BASIC ENERGY SERVICES, INC.

FORM OF RESTRICTED STOCK GRANT AGREEMENT

(Non-Employee Director)

Grantee:                                         

     1. Grant of Stock. As of the Grant Date (identified in Section 12 below), Basic
Energy Services, Inc. (formerly BES Holding Co.), a Delaware corporation (the “Company”), hereby
grants to the Grantee (identified above), an employee of the Company, the number of shares of the
Company’s common stock, $0.01 par value per share (the “Common Stock”) identified in Section 12)
below (the “Shares”), subject to the terms and conditions of this agreement (the “Agreement”) and
the Second Amended and Restated Basic Energy Services, Inc. 2003 Incentive Plan (as amended, the
“Plan”). The Plan is hereby incorporated in this Agreement in its entirety by reference. The
Shares, when delivered to Grantee upon expiration of the vesting period, shall be fully paid and
nonassessable.

     2. Definitions. All capitalized terms used herein shall have the meanings set forth
in the Plan unless otherwise provided herein. Section 12 below sets forth meanings for certain of
the capitalized terms used in this Agreement.

     3. Vesting Term. The Shares granted to Grantee hereunder on the Grant Date
(identified in Section 12 below) will vest in the Grantee in the increments set forth in Section 12
below on each of the dates set forth in Section 12 below.

     4. Grant Price. No consideration shall be payable by the Grantee to the Company for
the Shares.

     5. Restriction on Shares.

     (a) The Shares granted to Grantee hereunder shall be maintained in book entry form or
the stock certificates shall be retained in the possession of the Company until vested in
the Grantee as provided in Sections 3 and 12 hereof.

     (b) All unvested shares will be forfeited by the Grantee (a) if the Grantee is removed
from the Board of Directors of the Company for “Cause” before the Shares are vested or (b)
if the Grantee terminates his position as a member of the Board of Directors of the Company
before the Shares are vested for any reason other than the death or “Disability” of the
Grantee, as such terms “Cause” or “Disability” or equivalent terms (such as “Termination for
Cause”) are defined in the Plan at the time of such termination of employment to the extent
not modified in Section 12 below.

     (c) At such time as the vesting period is satisfied, a certificate for the Shares no
longer subject to forfeiture will be delivered to the Grantee without the legend set forth
in Section 5(e) below.

 

 

     (d) From and after the date of this Grant and prior to any forfeiture of the Shares,
the Grantee shall be entitled to vote the Shares and shall be entitled to receive any cash
dividends payable on the Shares. Any stock dividends applicable to the Shares shall be
retained by the Company until the vesting period of the Shares on which the stock dividend
was issued is satisfied.

     (e) Any book entry of shares or certificate representing the Shares granted hereunder
shall be issued to the Grantee pursuant to the terms of the Plan as of the Grant Date and
shall be marked with the following legend:

“The shares represented by this certificate have been issued pursuant to the terms of the
Second Amended and Restated Basic Energy Services, Inc. 2003 Incentive Plan and may not be
sold, pledged, transferred, assigned or otherwise encumbered in any manner except as set
forth in the terms of such Plan or Award dated March 11, 2008.”

     6. Independent Legal and Tax Advice. Grantee acknowledges that the Company has
advised Grantee to obtain independent legal and tax advice regarding the grant of the Shares in
accordance with this Agreement and any disposition of any such Shares.

     7. Reorganization of Company. The existence of this Agreement shall not affect in any
way the right or power of the Company or its stockholders to make or authorize any or all
adjustments, recapitalizations, reorganizations or other changes in Company’s capital structure or
its business, or any merger or consolidation of the Company, or any issue or bonds, debentures,
preferred or prior preference stock ahead of or affecting the Shares or the rights thereof, or the
dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets
or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

     8. Investment Representation. Grantee will enter into such written representations,
warranties and agreements as Company may reasonably request in order to comply with any federal or
state securities law. Moreover, any stock certificate for any Shares issued to Grantee hereunder
may contain a legend restricting their transferability as determined by the Company in its
discretion. Grantee agrees that Company shall not be obligated to take any affirmative action in
order to cause the issuance or transfer of Shares hereunder to comply with any law, rule or
regulation that applies to the Shares subject to this Agreement.

     9. No Guarantee of Employment. This Agreement shall not confer upon Grantee any right
to continued employment with the Company or any Affiliate thereof.

     10. Withholding of Taxes; Share Withholding. The Grantee shall have the
responsibility of discharging all taxes (state and federal) owed by the Grantee as a result of this
Agreement. Grantee agrees that, if he makes an election under Section 83(b) of the Internal
Revenue Code of 1986, as amended, with regard to the Shares, he will so notify the Company in
writing within two (2) weeks after making such election, so as to enable the Company to timely
comply with any applicable governmental reporting requirements. In accordance with Section 9(b)
of the Plan, the Company hereby agrees that the Grantee may direct the Company to satisfy the
Company’s actual withholding tax obligations through the “constructive” tender and

2

 

withholding of vested Restricted Stock under this Agreement; provided, the Company may revoke
such right at any time prior to the vesting date of Awards under this Agreement by giving written
notice to the Grantee.

     11. General.

     (a) Notices. All notices under this Agreement shall be mailed or delivered by
hand to the parties at their respective addresses set forth beneath their signatures below
or at such other address as may be designated in writing by either of the parties to one
another, or to their permitted transferees if applicable. Notices shall be effective upon
receipt.

     (b) Transferability of Grant. The rights of the Grantee pursuant to this
Agreement are not transferable by Grantee. No right or benefit hereunder shall in any
manner be liable for or subject to any debts, contracts, liabilities, obligations or torts
of Grantee or any permitted transferee thereof. Any purported assignment, alienation,
pledge, attachment, sale, transfer or other encumbrance of the Shares, prior to the lapse of
restrictions, that does not satisfy the requirements hereunder shall be void and
unenforceable against the Company.

     (c) Amendment and Termination. No amendment, modification or termination of
this Agreement shall be made at any time without the written consent of Grantee and the
Company.

     (d) No Guarantee of Tax Consequences. The Company and the Committee make no
commitment or guarantee that any federal or state tax treatment will apply or be available
to any person eligible for benefits under this Agreement. The Grantee has been advised and
been provided the opportunity to obtain independent legal and tax advice regarding the award
of Shares pursuant to this Agreement and the disposition of any Common Stock acquired
thereby.

     (e) Severability. In the event that any provision of this Agreement shall be
held illegal, invalid or unenforceable for any reason, such provision shall be fully
severable, but shall not affect the remaining provisions of the Agreement, and the Agreement
shall be construed and enforced as if the illegal, invalid or unenforceable provision had
not been included therein.

     (f) Supersedes Prior Agreements. This Agreement shall supersede and replace
all prior agreements and understandings, oral or written, between the Company and the
Grantee regarding the grant of the Shares covered hereby.

     (g) Governing Law. This Agreement shall be construed in accordance with the
laws of the State of Texas without regard to its conflict of law provisions, to the extent
federal law does not supersede and preempt Texas law.

     (h) No Trust or Fund Created. This Agreement shall not create or be construed
to create a trust or separate fund of any kind or a fiduciary relationship between the
Company or any Affiliate and a Grantee or any other Person. To the extent that any
 Person acquires a right to receive payments from the Company or any Affiliates pursuant
to an Award, such right shall be no greater than the right of any general unsecured creditor
of the Company or any Affiliate.

3

 

     (i) Other Laws. The Company retains the right to refuse to issue or transfer
any Shares if it determines that the issuance or transfer of such Shares might violate any
applicable law or regulation or entitle the Company to recover under Section 16(b) of the
Securities Exchange Act of 1934.

     (j) Binding Effect. This Agreement shall be binding upon and inure to the
benefit of any successors of the Company and all persons lawfully claiming under the
Grantee.

     12. Definitions and Other Terms. The following capitalized terms shall have those
meanings set forth opposite them:

	 	 	 
	(a) Grantee:

	 	The person specified as the Grantee on page 1 and the signature page hereto
	 
	 	 
	(b) Grant Date:

	 	March 11, 2008
	 
	 	 
	(c) Shares:

	 	                     Shares of the Company’s Common Stock
	 
	 	 
	(d) Vesting:

	 	Subject to Section 5 above and the terms of
the Plan, the Grantee shall vest in all rights to the Shares and any rights
of the Company to such Shares shall lapse with respect to the Shares on the
earlier of (i) the dates set forth below; (ii) a Change in Control; (iii) the
death or Disability of the Grantee; or (iv) Grantee attains the age 75 and
terminates service on the Board. If not earlier vested, the Shares shall
vest according to the following schedule:
	 
	 	 
	 

	 	     March 15, 2010 -                      Shares
	 

	 	     March 15, 2011 -                      Shares
	 

	 	     March 15, 2012 -                      Shares
	 

	 	     March 15, 2013 -                      Shares
	 
	 	 
	(e) Disability.

	 	“Disability” shall mean that Grantee is
entitled to receive long-term disability (“LTD”) income benefits under the LTD
plan or policy maintained by the Company that covers Grantee. If, for any
reason, Grantee is not covered under such LTD plan or policy, then “Disability”
shall mean a “permanent and total disability” as defined in Section 22(e)(3) of
the Code and Treasury regulations thereunder. Evidence of such Disability
shall be certified by a physician acceptable to the
Company. Grantee agrees to submit to any
examinations that are reasonably required by the
attending physician or other healthcare service
providers to determine whether he or she has a
Disability.

4

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its
duly authorized officer and Grantee has hereunto executed this Agreement as of the same date, to be
effective as of March  , 2008.

	 	 	 	 	 	 	 
	 	 	BASIC ENERGY SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	Basic Energy Services, Inc.	 	 
	 	 	P.O. Box 10460	 	 
	 	 	Midland, Texas 79702	 	 
	 	 	Fax: (432) 620-5501	 	 
	 
	 	 	 	 	 	 
	 	 	Attn: President	 	 
	 
	 	 	 	 	 	 
	 	 	GRANTEE	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Fax:	 	 	 	 
	 

	 	 	 	 

	 	 

6exv10w2

 

Exhibit 10.2

SEVERANCE AGREEMENT AND RELEASE

          David D. Muth (herein referred to as “Employee”) and Avalon Pharmaceuticals, Inc. (including
its parent company and all past, present and future affiliates and subsidiaries, hereinafter
collectively referred to as the “Company”) have reached the following Severance Agreement and
Release (“the Agreement”), dated as of March 8 , 2008 (“the Effective Date”), providing for the
termination of Employee’s employment by the Company, and for Employee to receive certain benefits
from the Company.

1. TERMINATION

          Employee and the Company hereby mutually agree that Employee’s employment with the Company
terminated effective February 20, 2008 (herein referred to as the “Termination Date”). All of
Employee’s rights to benefits or other obligations from the Company shall cease as of the
Termination Date, except as specifically provided herein, in his Employment Agreement dated
September 12, 2006, as amended December 22, 2006 (see Exhibit A for a summary of the provisions of
the amended Employment Agreement) or as otherwise provided under applicable law.

2. BENEFITS

     The Company will provide the following benefits to Employee:

	 	a)	 	If Employee executes this agreement and does not revoke it, the
Company will pay the Employee $72,800 (the “Consulting Fees”). The payment of
the Consulting Fees shall commence after the expiration of the revocation period
described in Section 9 herein, with three equal payments to be made over a three
(3) month period. The Consulting Fees shall be paid in arrears as of Employee’s
Termination Date. Employee understands that he will be an independent contractor
and will be responsible for any and all state and federal taxes that he may owe on
the Consulting Fees.
	 
	 	b)	 	If Employee executes this agreement and does not revoke it, the
Company shall extend Employee reimbursement for continued health coverage pursuant
to the federal law commonly referred to as COBRA at the level of coverage
currently maintained from February 20, 2008 through February 20, 2009, which
Employee acknowledges is an additional six months beyond the initial Severance
Period (February 20, 2008 through August 20, 2008). Thereafter, Employee may be
eligible to receive insurance continuance under COBRA at Employee’s own expense.
	 
	 	c)	 	If Employee executes this agreement and does not revoke it, the
Company shall convert Employee’s vested and unexercised options
to non-qualified options and extend the time during which Employee may exercise
them until February 20, 2010.

 

 

3. NO OTHER BENEFITS

          The Employee acknowledges that he has been paid at his current base salary rate, and has
received all benefits due to him through the Termination Date and all payments due him under this
Agreement. Employee understands and agrees that Employee shall receive no further wage, vacation,
severance, or other benefits from the Company after the Termination Date beyond those described in
Section 2 hereof.

4. COMPLETE RELEASE

	 	a)	 	In consideration for the benefits described herein, Employee, on behalf of
himself and all of his agents, attorneys, heirs, executors, administrators,
successors, assigns, and any other person or entity who could now or hereafter assert
a claim in Employee’s name or on Employee’s behalf, hereby releases the Company, its
parent, subsidiary and affiliated companies, and each of its or their predecessors,
successors, assigns, employees, officers, directors, managers, shareholders, agents,
customers, consultants, insurers, attorneys, and representatives, from any and all
complaints, grievances, demands, damages, lawsuits, actions, and causes of action
(collectively referred to as “claims”) that have arisen or may have arisen at any time
up to and including the date and time of Employee’s execution of this Agreement, which
Employee has or may have against any one or more of them for any reason whatsoever,
whether in law or in equity, whether under federal, state, local or other law, whether
known or unknown, whether accrued or unaccrued, whether the same be upon statutory
claim, contract, tort or other basis, including any claims relating to any employment
contract, compensation, benefits, leave of absence, emotional distress or defamation,
any claims relating to any employment discrimination law, including without limitation
the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964,
the Equal Pay Act, Executive Order 11246, the Rehabilitation Act of 1973, the
Americans with Disabilities Act, Article 49B of the Maryland Code, all as amended, any
claims relating to any other employment statute, regulation or ordinance, including
but not limited to the Fair Labor Standards Act, the Family and Medical Leave Act,
Employee Retirement Income Security Act of 1974, and the Maryland Wage Payment and
Collections statute, all as amended, and/or claims relating to your employment or
termination of employment, and any claim for costs or attorneys’ fees. Employee
acknowledges that he is providing a general release.
	 
	 	b)	 	This release does not include, however, a release of Employee’s right, if any, to
benefits under the Company’s 401(k) plan or a release of any of Employee’s rights to
enforce the terms of this Agreement.

 

 

	 	c)	 	Employee represents that he has not filed any complaint or claim of any kind
against the Company or any other person or entity released in this Agreement with any
federal, state or local agency, court or other body. Employee promises never to
initiate or join in any administrative proceeding, lawsuit or any other legal or
equitable proceeding of any kind asserting any claims that are released in Section 4(a)
hereof, that have arisen or may have arisen at any time up to and including the date and
time of Employee’s execution of this Agreement. Excluded from this covenant not to sue
and the release in Section 4(a) above is any right or claim that cannot be waived by
law, including but not limited to the right to file certain charges with, or participate
in an investigation conducted by any government agency that expressly prohibits waiver
relative to same. Employee is waiving, however, any right to monetary recovery,
including but not limited to compensatory or punitive damages, attorneys’ fees or costs,
or right to reinstatement should such an agency, or any group, pursue any claim on his
behalf.
	 
	 	d)	 	Nothing in this Agreement shall be inferred to be an admission of any fault by
the Company.

5. COVENANTS

          Employee agrees that, during the Severance Period, Employee will not (i) hire, or induce or
influence or attempt to induce or influence, either directly or indirectly, any employee of the
Company or its parent, subsidiary or affiliates, to leave its or their employ; or (ii) induce or
attempt to induce, either directly or indirectly, any client, supplier or other business relation
of the Company or its parent, subsidiary or affiliates to cease doing business with it or them, or
in any way interfere with the relationship between any such client, supplier or business relation
and the Company or its parent, subsidiary or affiliates.

     Employee agrees that Employee will not at any time disparage the Company or any of its
affiliated entities, employees or representatives or make any derogatory statements, public or
otherwise, concerning them. The Company agrees that it will not at any time disparage or make any
derogatory statements, public or otherwise, concerning the Employee.

     Employee shall comply with the terms of Employee’s confidentiality agreement with the Company,
which, among other things, prohibits Employee from using, or disclosing to others, any confidential
business or technical information belonging to the Company. Employee agrees to keep this Agreement
and the terms hereof strictly confidential and will not disclose such information to any person or
entity other than members of Employee’s immediate family, Employee’s attorneys and Employee’s
licensed tax advisor, all of whom will be informed of and be bound by this confidentiality
provision.

 

 

     Employee agrees that he shall not re-apply or accept employment at any time for any position
with the Company, its parent, and its current subsidiaries or affiliates. In the event that
Employee is employed with a company that becomes a subsidiary or affiliate of the Company in the
future, Employee’s continued employment with or at any future subsidiary or affiliate of the
Company will be determined at that time.

6. CONSEQUENCES OF EMPLOYEE VIOLATION OF PROMISES

     All of the Company’s obligations hereunder beyond those otherwise required by law are
specifically subject to Employee fulfilling completely each of the promises and requirements set
forth herein. Employee’s failure to comply with each promise and requirement herein shall be cause
for the immediate termination of any remaining financial benefits accorded Employee by the terms of
this Agreement. If Employee files or joins in any claim in violation of the Employee’s promises in
Section 4(c) hereof, Employee will pay for all costs incurred by the Company and others released in
this Agreement, including reasonable attorneys’ fees, in defending against Employee’s claim.
Employee and the Company agree that a breach of Employee’s obligations under Section 5 hereof will
cause irreparable harm to the Company, and that, in the event of such a breach, the Company shall
be entitled to obtain a decree specifically enforcing such covenants in any court of competent
jurisdiction. In addition, the Company expressly reserves the right to exercise any other legal
remedies to which it may be entitled.

          In the event that the restrictions set forth in Section 5 hereof are determined by any court
of competent jurisdiction to be unenforceable by reason of their extending for too great a period
of time or over too great a geographical area or by reason of their being too extensive in any
other respect, the restrictions shall be interpreted to extend only over the maximum period of time
or the maximum geographical area as to which they may be enforceable and to the maximum extent in
all other respects as to which they may be enforceable, as determined by such court in such action.

7. PERIOD FOR REVIEW AND CONSIDERATION OF AGREEMENT

     Employee understands that Employee has 21 days to review and consider this Agreement before
signing it, unless Employee voluntarily chooses to execute the Agreement before the end of the
21-day period. This offer is null and void if not signed by Employee within 21 days from the date
first written above.

8. ENCOURAGEMENT TO CONSULT WITH ATTORNEY

     Employee is advised to consult with an attorney before signing this Agreement.

9. EMPLOYEE’S RIGHT TO REVOKE AGREEMENT

     Employee may revoke this Agreement within seven days of Employee’s signing it. Revocation can
be made by delivering a written notice of revocation to the Company’s Senior Director of Human
Resources at Avalon Pharmaceuticals, Inc., 20358 Seneca

 

 

Meadows Parkway, Germantown, MD 20876. For this revocation to be effective, such written
notice must be received no later than the close of business on the seventh calendar day after
Employee signs this Agreement. This Agreement will not become effective or enforceable until the
end of that seven-day period.

10. APPLICABLE LAW/SEVERABILITY

     This Agreement shall be governed by and construed in accordance with the laws of the State of
Maryland, excluding those laws which would direct the application of the laws of another
jurisdiction. If any provision of this Agreement is found to be unenforceable or invalid, such
unenforceability and invalidity shall not affect the remainder of this Agreement.

11. ENTIRE AGREEMENT

     This is the entire agreement between Employee and Company relating to the subject matter of
this Agreement and supersedes all prior discussions, negotiations and agreements, with the sole
exception of Employee’s obligations to the Company contained in the Confidentiality Agreement dated
September 8, 2006, which shall continue in force notwithstanding anything else in this Agreement to
the contrary. The Company has made no promises to Employee other than than those in this
Agreement. The terms of this Agreement may not be modified except in writing signed by both
Employee and by an authorized officer of the Company.

[SIGNATURES ON NEXT PAGE]

 

 

EMPLOYEE ACKNOWLEDGES THAT EMPLOYEE HAS READ THIS

AGREEMENT, UNDERSTANDS IT, AND IS VOLUNTARILY ENTERING

INTO IT WITHOUT COERCION.

PLEASE READ THIS AGREEMENT CAREFULLY. IT CONTAINS A

RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

	 	 	 	 	 	 	 	 	 
	EMPLOYEE:	 	COMPANY:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Avalon Pharmaceuticals, Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Print Name: David D. Muth	 	 	 	Print Name: Thomas G. David	 	 
	 	 	 	 	Title: General Counsel & SVP Operations	 	 
	 
	 	 	 	 	 	 	 	 
	Dated:	 	Dated:	 	 
	 
	 	 	 	 	 	 	 	 
	Notarized:	 	Notarized:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

 

Exhibit A

Benefits due per Employment Agreement

	 	 	 
	Benefit	 	Status
	Lump sum severance
payment equal to 6
months of base salary

	 	Complete: paid in February 29, 2008 paycheck
	 
	 	 
	Outplacement Services

	 	Complete: Lee Hecht Harrison outplacement firm
has made contact w. D.Muth. Executive services
have been offered.
	 
	 	 
	Reimbursement of COBRA
for 6 months

	 	In process: D. Muth must enroll in COBRA
through Ceredian and send first request for
reimbursement before this is fully complete.
Avalon has begun the process in that Ceredian
has been notified of the termination and will
provide enrollment information. Muth has been
advised about reimbursement process.
	 
	 	 
	Immediate vest one half
of any shares that have
not vested as of the
date of termination.

	 	Complete: 40,000 vested as of February 20,
2008; 40,000 additional shares vested in
accordance with the terms of the Employment
Agreement, for a current total of 80,000 vested
options.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]