Document:

exv10w6

 

Exhibit 10.6

INTEGRATED PRODUCTION SERVICES, INC.

2001 STOCK INCENTIVE PLAN

I. PURPOSE

     The purpose of the INTEGRATED PRODUCTION SERVICES, INC. 2001 STOCK INCENTIVE PLAN (the “Plan”)
is to provide a means through which Integrated Production Services, Inc., a Delaware corporation
(the “Company”), and its Affiliates may attract able persons to serve as Directors or Consultants
or to enter the employ of the Company and its Affiliates and to provide a means whereby those
individuals upon whom the responsibilities of the successful administration and management of the
Company and its Affiliates rest, and whose present and potential contributions to the Company and
its Affiliates are of importance, can acquire and maintain stock ownership, thereby strengthening
their concern for the welfare of the Company and its Affiliates. A further purpose of the Plan is
to provide such individuals with additional incentive and reward opportunities designed to enhance
the profitable growth of the Company and its Affiliates. Accordingly, the Plan provides for
granting Incentive Stock Options, options that do not constitute Incentive Stock Options,
Restricted Stock Awards, or any combination of the foregoing, as is best suited to the
circumstances of the particular employee, Consultant or Director as provided herein. This Plan
amends and restates in its entirety the Saber Energy Services, Inc. 2001 Stock Incentive Plan (the
“Original Plan”); provided, however, that to the extent amendments made by the Plan to the Original
Plan would impair the rights under an Option Agreement awarded under the Original Plan, such
amendments shall not apply to such Option Agreement unless the optionee consents to such
amendments. Prior to the adoption of this Plan but after the adoption of the Original Plan, the
Company effected a 10-for-1 stock split of the Common Stock.

II. DEFINITIONS

     The following definitions shall be applicable throughout the Plan unless specifically modified
by any paragraph:

     (a) “Affiliate” means any corporation, partnership, limited liability company or partnership,
association, trust or other organization which, directly or indirectly, controls, is controlled by,
or is under common control with, the Company. For purposes of the preceding sentence, “control”
(including, with correlative meanings, the terms “controlled by” and “under common control with”),
as used with respect to any entity or organization, shall mean the possession, directly or
indirectly, of the power (i) to vote more than 50% of the securities having ordinary voting power
for the election of directors of the controlled entity or organization, or (ii) to direct or cause
the direction of the management and policies of the controlled entity or organization, whether
through the ownership of voting securities or by contract or otherwise.

     (b) “Award” means, individually or collectively, any Option or Restricted Stock Award.

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

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     (d) “Code” means the Internal Revenue Code of 1986, as amended. Reference in the Plan to any
section of the Code shall be deemed to include any amendments or successor provisions to such
section and any regulations under such section.

     (e) “Committee” means a committee of the Board that is selected by the Board as provided in
Paragraph IV(a).

     (f) “Common Stock” means the common stock, par value $0.01 per share, of the Company, or any
security into which such Common Stock may be changed by reason of any transaction or event of the
type described in Paragraph IX.

     (g) “Company” means Integrated Production Services, Inc., a Delaware corporation.

     (h) “Company Change” shall have the meaning assigned to such term in Paragraph IX(c) of the
Plan.

     (i) “Consultant” means any person who is not an employee or a Director and who is providing
advisory or consulting services to the Company or any Affiliate.

     (j) “Director” means an individual elected to the Board by the stockholders of the Company or
by the Board under applicable corporate law who is serving on the Board on the date the Plan is
adopted by the Board or is elected to the Board after such date.

     (k) An “employee” means any person (including a Director) in an employment relationship with
the Company or any Affiliate.

     (l) “Fair Market Value” means, as of any specified date, the mean of the high and low sales
prices of the Common Stock (i) reported by the National Market System of NASDAQ on that date or
(ii) if the Common Stock is listed on a national stock exchange, reported on the stock exchange
composite tape on that date (or such other reporting service approved by the Committee); or, in
either case, if no prices are reported on that date, on the last preceding date on which such
prices of the Common Stock are so reported. If the Common Stock is traded over the counter at the
time a determination of its fair market value is required to be made hereunder, its fair market
value shall be deemed to be equal to the average between the reported high and low or closing bid
and asked prices of Common Stock on the most recent date on which Common Stock was publicly traded.
In the event Common Stock is not publicly traded at the time a determination of its value is
required to be made hereunder, the determination of its fair market value shall be made by the
Committee in such manner as it deems appropriate. Notwithstanding the foregoing, the Fair Market
Value of a share of Common Stock on the date of an initial public offering of Common Stock shall be
the offering price under such initial public offering.

     (m) “Incentive Stock Option” means an incentive stock option within the meaning of section 422
of the Code.

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     (n) “Option” means an Award granted under Paragraph VII of the Plan and includes both
Incentive Stock Options to purchase Common Stock and Options that do not constitute Incentive Stock
Options to purchase Common Stock.

     (o) “Option Agreement” means a written agreement between the Company and a Participant with
respect to an Option.

     (p) “Participant” means an employee, Consultant, or Director who has been granted an Award.

     (q) “Plan” means the Integrated Production Services, Inc. 2001 Stock Incentive Plan, as
amended from time to time.

     (r) “Restricted Stock Agreement” means a written agreement between the Company and a
Participant with respect to a Restricted Stock Award.

     (s) “Restricted Stock Award” means an Award granted under Paragraph VIII of the Plan.

     (t) “Stock Appreciation Right” shall have the meaning assigned to such term in Paragraph
VII(d) of the Plan.

III. EFFECTIVE DATE AND DURATION OF THE PLAN

     The Plan shall become effective upon the date of its adoption by the Board, provided the Plan
is approved by the stockholders of the Company within 12 months thereafter. Notwithstanding any
provision in the Plan, in any Option Agreement or in any Restricted Stock Agreement, no Option
shall be exercisable and no Restricted Stock Award shall vest prior to such stockholder approval.
No further Awards may be granted under the Plan after 10 years from the date the Plan is adopted by
the Board. The Plan shall remain in effect until all Options granted under the Plan have been
satisfied or expired, and all Restricted Stock Awards granted under the Plan have vested or been
forfeited.

IV. ADMINISTRATION

     (a) Composition of Committee. The Plan shall be administered by a committee of, and
appointed by, the Board. In the absence of the Board’s appointment of a committee to administer
the Plan, the Board shall serve as the Committee.

     (b) Powers. Subject to the express provisions of the Plan, the Committee shall have
authority, in its discretion, to determine which employees, Consultants, or Directors shall receive
an Award, the time or times when such Award shall be made, whether an Incentive Stock Option or
nonqualified Option shall be granted, and the number of shares to be subject to each Option or
Restricted Stock Award. In making such determinations, the Committee shall take into account the
nature of the services rendered by the respective employees, Consultants, or Directors, their

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present and potential contribution to the Company’s success and such other factors as the
Committee in its discretion shall deem relevant.

     (c) Additional Powers. The Committee shall have such additional powers as are
delegated to it by the other provisions of the Plan. Subject to the express provisions of the
Plan, this shall include the power to construe the Plan and the respective agreements executed
hereunder, to prescribe rules and regulations relating to the Plan, and to determine the terms,
restrictions and provisions of the agreement relating to each Award, including such terms,
restrictions and provisions as shall be requisite in the judgment of the Committee to cause
designated Options to qualify as Incentive Stock Options, and to make all other determinations
necessary or advisable for administering the Plan. The Committee may correct any defect or supply
any omission or reconcile any inconsistency in the Plan or in any agreement relating to an Award in
the manner and to the extent it shall deem expedient to carry it into effect. The determinations
of the Committee on the matters referred to in this Paragraph IV shall be conclusive.

V. SHARES SUBJECT TO THE PLAN; GRANT OF AWARDS

     (a) Shares Subject to the Plan. Subject to adjustment in the same manner as provided
in Paragraph IX with respect to shares of Common Stock subject to Options then outstanding, the
aggregate number of shares of Common Stock that may be issued under the Plan shall not exceed
1,000,000 shares. Shares shall be deemed to have been issued under the Plan only (i) to the extent
actually issued and delivered pursuant to an Award or (ii) to the extent an Award is settled in
cash. To the extent that an Award lapses or the rights of its holder terminate, any shares of
Common Stock subject to such Award shall again be available for the grant of an Award under the
Plan.

     (b) Grant of Awards. The Committee may from time to time grant Awards to one or more
employees, Consultants, or Directors determined by it to be eligible for participation in the Plan
in accordance with the terms of the Plan.

     (c) Stock Offered. Subject to the limitations set forth in Paragraph V(a), the stock
to be offered pursuant to the grant of an Award may be authorized but unissued Common Stock or
Common Stock previously issued and outstanding and reacquired by the Company. Any of such shares
which remain unissued and which are not subject to outstanding Awards at the termination of the
Plan shall cease to be subject to the Plan but, until termination of the Plan, the Company shall at
all times make available a sufficient number of shares to meet the requirements of the Plan.

VI. ELIGIBILITY

     Awards may be granted only to persons who, at the time of grant, are employees, Consultants,
or Directors. An Award may be granted on more than one occasion to the same person, and, subject
to the limitations set forth in the Plan, such Award may include an Incentive Stock Option, an
Option that is not an Incentive Stock Option, a Restricted Stock Award, or any combination thereof.

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VII. STOCK OPTIONS

     (a) Option Period. The term of each Option shall be as specified by the Committee at
the date of grant.

     (b) Limitations on Exercise of Option. An Option shall be exercisable in whole or in
such installments and at such times as determined by the Committee.

     (c) Special Limitations on Incentive Stock Options. An Incentive Stock Option may be
granted only to an individual who is employed by the Company or any parent or subsidiary
corporation (as defined in section 424 of the Code) of the Company at the time the Option is
granted. To the extent that the aggregate Fair Market Value (determined at the time the respective
Incentive Stock Option is granted) of Common Stock with respect to which Incentive Stock Options
are exercisable for the first time by an individual during any calendar year under all incentive
stock option plans of the Company and its parent and subsidiary corporations exceeds $100,000, such
Incentive Stock Options shall be treated as Options which do not constitute Incentive Stock
Options. The Committee shall determine, in accordance with applicable provisions of the Code,
Treasury regulations and other administrative pronouncements, which of a Participant’s Incentive
Stock Options will not constitute Incentive Stock Options because of such limitation and shall
notify the Participant of such determination as soon as practicable after such determination. No
Incentive Stock Option shall be granted to an individual if, at the time the Option is granted,
such individual owns stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company or of its parent or subsidiary corporation, within the meaning of
section 422(b)(6) of the Code, unless (i) at the time such Option is granted the option price is at
least 110% of the Fair Market Value of the Common Stock subject to the Option and (ii) such Option
by its terms is not exercisable after the expiration of five years from the date of grant. An
Incentive Stock Option shall not be transferable otherwise than by will or the laws of descent and
distribution, and shall be exercisable during the Participant’s lifetime only by such Participant
or the Participant’s guardian or legal representative.

     (d) Option Agreement. Each Option shall be evidenced by an Option Agreement in such
form and containing such provisions not inconsistent with the provisions of the Plan as the
Committee from time to time shall approve, including, without limitation, provisions to qualify an
Incentive Stock Option under section 422 of the Code. Each Option Agreement shall specify the
effect of termination of (i) employment, (ii) the consulting or advisory relationship, or (iii)
membership on the Board, as applicable, on the exercisability of the Option. An Option Agreement
may provide for the payment of the option price, in whole or in part, by the delivery of a number
of shares of Common Stock (plus cash if necessary) having a Fair Market Value equal to such option
price. Moreover, an Option Agreement may provide for a “cashless exercise” of the Option by
establishing procedures satisfactory to the Committee with respect thereto. Further, an Option
Agreement may provide for the surrender of the right to purchase shares under the Option in return
for a payment in cash or shares of Common Stock or a combination of cash and shares of Common Stock
equal in value to the excess of the Fair Market Value of the shares with respect to which the right
to purchase is surrendered over the option

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price therefor (“Stock Appreciation Rights”), on such terms and conditions as the Committee in
its sole discretion may prescribe. In the case of any such Stock Appreciation Right that is
granted in connection with an Incentive Stock Option, such right shall be exercisable only when the
Fair Market Value of the Common Stock exceeds the price specified therefor in the Option or the
portion thereof to be surrendered. The terms and conditions of the respective Option Agreements
need not be identical. Subject to the consent of the Participant, the Committee may, in its sole
discretion, amend an outstanding Option Agreement from time to time in any manner that is not
inconsistent with the provisions of the Plan (including, without limitation, an amendment that
accelerates the time at which the Option, or a portion thereof, may be exercisable.)

     (e) Option Price and Payment. The price at which a share of Common Stock may be
purchased upon exercise of an Option shall be determined by the Committee but, subject to
adjustment as provided in Paragraph IX, (i) in the case of an Incentive Stock Option, such purchase
price shall not be less than the Fair Market Value of a share of Common Stock on the date such
Option is granted, and (ii) in the case of an Option that does not constitute an Incentive Stock
Option, such purchase price shall not be less than 85% of the Fair Market Value of a share of
Common Stock on the date such Option is granted. The Option or portion thereof may be exercised by
delivery of an irrevocable notice of exercise to the Company, as specified by the Committee. The
purchase price of the Option or portion thereof shall be paid in full in the manner prescribed by
the Committee. Separate stock certificates shall be issued by the Company for those shares
acquired pursuant to the exercise of an Incentive Stock Option and for those shares acquired
pursuant to the exercise of any Option that does not constitute an Incentive Stock Option.

     (f) Stockholder Rights and Privileges. The Participant shall be entitled to all the
privileges and rights of a stockholder only with respect to such shares of Common Stock as have
been purchased under the Option and for which certificates of stock have been registered in the
Participant’s name.

     (g) Options and Rights in Substitution for Options Granted by Other Employers.
Options and Stock Appreciation Rights may be granted under the Plan from time to time in
substitution for options held by individuals providing services to corporations or other entities
who become employees, Consultants, or Directors as a result of a merger or consolidation or other
business transaction with the Company or any Affiliate.

VIII. RESTRICTED STOCK AWARDS

     (a) Forfeiture Restrictions To Be Established by the Committee. Shares of Common
Stock that are the subject of a Restricted Stock Award shall be subject to restrictions on
disposition by the Participant and an obligation of the Participant to forfeit and surrender the
shares to the Company under certain circumstances (the “Forfeiture Restrictions”). The Forfeiture
Restrictions shall be determined by the Committee in its sole discretion, and the Committee may
provide that the Forfeiture Restrictions shall lapse upon (i) the attainment of one or more
performance targets established by the Committee, (ii) the Participant’s continued employment with
the Company or an Affiliate or continued service as a Consultant or Director

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for a specified period of time, (iii) the occurrence of any event or the satisfaction of any
other condition specified by the Committee in its sole discretion, or (iv) a combination of any of
the foregoing. Each Restricted Stock Award may have different Forfeiture Restrictions, in the
discretion of the Committee.

     (b) Other Terms and Conditions. Common Stock awarded pursuant to a Restricted Stock
Award shall be represented by a stock certificate registered in the name of the Participant.
Unless provided otherwise in a Restricted Stock Agreement, the Participant shall have the right to
receive dividends with respect to Common Stock subject to a Restricted Stock Award, to vote Common
Stock subject thereto and to enjoy all other stockholder rights, except that (i) the Participant
shall not be entitled to delivery of the stock certificate until the Forfeiture Restrictions have
expired, (ii) the Company shall retain custody of the stock until the Forfeiture Restrictions have
expired, (iii) the Participant may not sell, transfer, pledge, exchange, hypothecate or otherwise
dispose of the stock until the Forfeiture Restrictions have expired, and (iv) a breach of the terms
and conditions established by the Committee pursuant to the Restricted Stock Agreement shall cause
a forfeiture of the Restricted Stock Award. At the time of such Award, the Committee may, in its
sole discretion, prescribe additional terms, conditions or restrictions relating to Restricted
Stock Awards, including, but not limited to, rules pertaining to the termination of employment or
service as a Consultant or Director (by retirement, disability, death or otherwise) of a
Participant prior to expiration of the Forfeitures Restrictions. Such additional terms, conditions
or restrictions shall be set forth in a Restricted Stock Agreement made in conjunction with the
Award.

     (c) Payment for Restricted Stock. The Committee shall determine the amount and form
of any payment for Common Stock received pursuant to a Restricted Stock Award, provided that in the
absence of such a determination, a Participant shall not be required to make any payment for Common
Stock received pursuant to a Restricted Stock Award, except to the extent otherwise required by
law.

     (d) Committee’s Discretion to Accelerate Vesting of Restricted Stock Awards. The
Committee may, in its discretion and as of a date determined by the Committee, fully vest any or
all Common Stock awarded to a Participant pursuant to a Restricted Stock Award and, upon such
vesting, all restrictions applicable to such Restricted Stock Award shall terminate as of such
date. Any action by the Committee pursuant to this Subparagraph may vary among individual
Participants and may vary among the Restricted Stock Awards held by any individual Participant.

     (e) Restricted Stock Agreements. At the time any Award is made under this Paragraph
VIII, the Company and the Participant shall enter into a Restricted Stock Agreement setting forth
each of the matters contemplated hereby and such other matters as the Committee may determine to be
appropriate. The terms and provisions of the respective Restricted Stock Agreements need not be
identical. Subject to the consent of the Participant, the Committee may, in its sole discretion,
amend an outstanding Restricted Stock Agreement from time to time in any manner that is not
inconsistent with the provisions of the Plan.

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IX. RECAPITALIZATION OR REORGANIZATION

     (a) No Effect on Right or Power. The existence of the Plan and the Awards granted
hereunder shall not affect in any way the right or power of the Board or the stockholders of the
Company to make or authorize any adjustment, recapitalization, reorganization or other change in
the Company’s or any Affiliate’s capital structure or its business, any merger or consolidation of
the Company or any Affiliate, any sale of all of the Common Stock of the Company, any issue of debt
or equity securities ahead of or affecting Common Stock or the rights thereof, the dissolution or
liquidation of the Company or any Affiliate or any sale, lease, exchange or other disposition of
all or any part of its assets or business or any other corporate act or proceeding.

     (b) Subdivision or Consolidation of Shares; Stock Dividends. The shares with respect
to which Options may be granted are shares of Common Stock as presently constituted, but if, and
whenever, prior to the expiration of an Option theretofore granted, the Company shall effect a
subdivision or consolidation of shares of Common Stock or the payment of a stock dividend on Common
Stock without receipt of consideration by the Company, the number of shares of Common Stock with
respect to which such Option may thereafter be exercised (i) in the event of an increase in the
number of outstanding shares shall be proportionately increased, and the purchase price per share
shall be proportionately reduced, and (ii) in the event of a reduction in the number of outstanding
shares shall be proportionately reduced, and the purchase price per share shall be proportionately
increased. Any fractional share resulting from such adjustment shall be rounded up to the next
whole share.

     (c) Recapitalizations and Company Changes. If the Company recapitalizes, reclassifies
its capital stock, or otherwise changes its capital structure (a “recapitalization”), the number
and class of shares of Common Stock covered by an Option theretofore granted shall be adjusted so
that such Option shall thereafter cover the number and class of shares of stock and securities to
which the Participant would have been entitled pursuant to the terms of the recapitalization if,
immediately prior to the recapitalization, the Participant had been the holder of record of the
number of shares of Common Stock then covered by such Option. If (i) the Company shall not be the
surviving entity in any merger or consolidation (or survives only as a subsidiary of an entity),
(ii) the Company sells, leases or exchanges or agrees to sell, lease or exchange all or
substantially all of its assets to any other person or entity, (iii) the Company is to be dissolved
and liquidated, (iv) any person or entity (other than SCF-IV, L.P. and its Affiliates), including a
“group” as contemplated by Section 13(d)(3) of the Securities Exchange Act of 1934, as amended,
acquires or gains ownership or control (including, without limitation, power to vote) of more than
50% of the outstanding shares of the Company’s voting stock (based upon voting power), or (v) as a
result of or in connection with a contested election of Directors, the persons who were Directors
of the Company before such election shall cease to constitute a majority of the Board (each such
event is referred to herein as a “Company Change”), no later than (x) 10 days after the approval by
the stockholders of the Company of such merger, consolidation, reorganization, sale, lease or
exchange of assets or dissolution or such election of Directors or (y) 30 days after a Company
Change of the type described in clause (iv), the Committee, acting in its sole discretion without
the consent or approval of any Participant, shall effect one or more of the following alternatives,
which alternatives may vary among individual Participants and which

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may vary among Options held by any individual Participant: (1) accelerate the time at which
Options then outstanding may be exercised so that such Options may be exercised in full for a
limited period of time on or before a specified date (before or after such Company Change) fixed by
the Committee, after which specified date all unexercised Options and all rights of Participants
thereunder shall terminate, (2) require the mandatory surrender to the Company by selected
Participants of some or all of the outstanding Options held by such Participants (irrespective of
whether such Options are then exercisable under the provisions of the Plan) as of a date, before or
after such Company Change, specified by the Committee, in which event the Committee shall thereupon
cancel such Options and cause the Company to pay to each Participant an amount of cash per share
equal to the excess, if any, of the amount calculated in Subparagraph (d) below (the “Change of
Control Value”) of the shares subject to such Option over the exercise price(s) under such Options
for such shares, or (3) make such adjustments to Options then outstanding and the Plan as the
Committee deems appropriate to reflect such Company Change (provided, however, that the Committee
may determine in its sole discretion that no adjustment is necessary to Options then outstanding),
including, without limitation, adjusting an Option to provide that the number and class of shares
of Common Stock covered by such Option shall be adjusted so that such Option shall thereafter cover
securities of the surviving or acquiring corporation or other property (including, without
limitation, cash) as determined by the Committee in its sole discretion.

     (d) Change of Control Value. For the purposes of clause (2) in Subparagraph (c)
above, the “Change of Control Value” shall equal the amount determined in clause (i), (ii) or
(iii), whichever is applicable, as follows: (i) the per share price offered to stockholders of the
Company in any such merger, consolidation, sale of assets or dissolution transaction, (ii) the
price per share offered to stockholders of the Company in any tender offer or exchange offer
whereby a Company Change takes place, or (iii) if such Company Change occurs other than pursuant to
a tender or exchange offer, the fair market value per share of the shares into which such Options
being surrendered are exercisable, as determined by the Committee as of the date determined by the
Committee to be the date of cancellation and surrender of such Options. In the event that the
consideration offered to stockholders of the Company in any transaction described in this
Subparagraph (d) or Subparagraph (c) above consists of anything other than cash, the Committee
shall determine the fair cash equivalent of the portion of the consideration offered which is other
than cash.

     (e) Other Changes in the Common Stock. In the event of changes in the outstanding
Common Stock by reason of recapitalizations, reorganizations, mergers, consolidations,
combinations, split-ups, split-offs, spin-offs, exchanges or other relevant changes in
capitalization or distributions to the holders of Common Stock occurring after the date of the
grant of any Award and not otherwise provided for by this Paragraph IX, such Award and any
agreement evidencing such Award shall be subject to adjustment by the Committee at its discretion
as to the number and price of shares of Common Stock or other consideration subject to such Award.
In the event of any such change in the outstanding Common Stock or distribution to the holders of
Common Stock, the aggregate number of shares available under the Plan shall be appropriately
adjusted by the Committee, whose determination shall be conclusive.

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     (f) Stockholder Action. Any adjustment provided for in the above Subparagraphs shall
be subject to any required stockholder action.

     (g) No Adjustments unless Otherwise Provided. Except as hereinbefore expressly
provided, the issuance by the Company of shares of stock of any class or securities convertible
into shares of stock of any class, for cash, property, labor or services, upon direct sale, upon
the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or
obligations of the Company convertible into such shares or other securities, and in any case
whether or not for fair value, shall not affect, and no adjustment by reason thereof shall be made
with respect to, the number of shares of Common Stock subject to Awards theretofore granted or the
purchase price per share, if applicable.

X. AMENDMENT AND TERMINATION OF THE PLAN

     The Board in its discretion may terminate the Plan at any time with respect to any shares of
Common Stock for which Awards have not theretofore been granted. The Board shall have the right to
alter or amend the Plan or any part thereof from time to time; provided that no change in the Plan
may be made that would impair the rights of a Participant with respect to an Award theretofore
granted without the consent of the Participant, and provided, further, that the Board may not,
without approval of the stockholders of the Company, amend the Plan to (a) increase the maximum
aggregate number of shares that may be issued under the Plan or (b) change the class of individuals
eligible to receive Awards under the Plan.

XI. MISCELLANEOUS

     (a) Shareholders Agreement. Every Participant who receives shares of Common Stock
pursuant to this Plan, whether pursuant to the exercise of an Option, receipt of a Restricted Stock
Award or otherwise, shall be subject to the terms of the Shareholders Agreement among the Company,
SCF-IV, L.P., HSBC Capital (Canada) Inc. and certain other persons dated September 20, 2002, as the
same may be amended or restated from time to time (the “Shareholders Agreement”). Any Option
Agreement or Restricted Stock Agreement shall provide that the Participant specifically
acknowledges and agrees that the Participant is bound by the terms of the Shareholders Agreement
when Common Stock is issued to him and agrees that, if requested by the Company at any time, the
Participant (or other person in whose name the Common Stock is registered) will immediately execute
and deliver a counterpart execution page to the Shareholders Agreement to the Company so as to
better evidence that the Participant is a party thereto.

     (b) No Right To An Award. Neither the adoption of the Plan nor any action of the
Board or of the Committee shall be deemed to give an employee, Consultant, or Director any right to
be granted an Option, a right to a Restricted Stock Award, or any other rights hereunder except as
may be evidenced by an Option Agreement or a Restricted Stock Agreement duly executed on behalf of
the Company, and then only to the extent and on the terms and conditions expressly set forth
therein. The Plan shall be unfunded. The Company shall not be required to

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establish any special or separate fund or to make any other segregation of funds or assets to
assure the performance of its obligations under any Award.

     (c) No Employment/Membership Rights Conferred. Nothing contained in the Plan shall
(i) confer upon any employee or Consultant any right with respect to continuation of employment or
of a consulting or advisory relationship with the Company or any Affiliate or (ii) interfere in any
way with the right of the Company or any Affiliate to terminate his or her employment or consulting
or advisory relationship at any time. Nothing contained in the Plan shall confer upon any Director
any right with respect to continuation of membership on the Board.

     (d) Other Laws; Withholding. The Company shall not be obligated to issue any Common
Stock pursuant to any Award granted under the Plan at any time when the shares covered by such
Award have not been registered under the Securities Act of 1933, as amended, or in respect of which
a prospectus has not been filed in the applicable Canadian provinces, as applicable, and such other
state, provincial and federal laws, rules and regulations as the Company or the Committee deems
applicable and, in the opinion of legal counsel for the Company, there is no exemption from the
registration requirements of such laws, rules and regulations available for the issuance and sale
of such shares. No fractional shares of Common Stock shall be delivered, nor shall any cash in
lieu of fractional shares be paid. The Company shall have the right to deduct in connection with
all Awards any taxes required by law to be withheld and to require any payments required to enable
it to satisfy its withholding obligations.

     (e) No Restriction on Corporate Action. Nothing contained in the Plan shall be
construed to prevent the Company or any Affiliate from taking any action which is deemed by the
Company or such Affiliate to be appropriate or in its best interest, whether or not such action
would have an adverse effect on the Plan or any Award made under the Plan. No Participant,
beneficiary or other person shall have any claim against the Company or any Affiliate as a result
of any such action.

     (f) Restrictions on Transfer. An Award (other than an Incentive Stock Option, which
shall be subject to the transfer restrictions set forth in Paragraph VII(c)) shall not be
transferable otherwise than (i) by will or the laws of descent and distribution, (ii) pursuant to a
qualified domestic relations order as defined by the Code or Title I of the Employee Retirement
Income Security Act of 1974, as amended, or the rules thereunder, or (iii) with the consent of the
Committee.

     (g) Governing Law. The Plan shall be governed by, and construed in accordance with,
the laws of the State of Delaware, without regard to conflicts of law principles thereof.

Integrated Production Services, Inc.

Stock Incentive Plan

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Exhibit 10.7

COMPLETE ENERGY SERVICES, INC.

2003 STOCK INCENTIVE PLAN

ARTICLE I

PURPOSE

     The purpose of this COMPLETE ENERGY SERVICES, INC. 2003 STOCK INCENTIVE PLAN is to provide a
means through which Complete Energy Services, Inc., a Delaware corporation (the “Company”), and its
Affiliates may attract able persons to serve as Directors or Consultants or to enter the employ of
the Company or its Affiliates and to provide a means whereby those individuals upon whom the
responsibilities of the successful administration and management of the Company or its Affiliates
rest, and whose present and potential contributions to the Company or its Affiliates are of
importance, can acquire and maintain stock ownership, thereby strengthening their concern for the
welfare of the Company and its Affiliates. A further purpose of this Plan is to provide such
individuals with additional incentive and reward opportunities designed to enhance the profitable
growth of the Company and its Affiliates. Accordingly, this Plan provides for granting Incentive
Stock Options, options that do not constitute Incentive Stock Options, Restricted Stock Awards, or
any combination of the foregoing, as is best suited to the circumstances of the particular
employee, Consultant or Director as provided herein.

ARTICLE II

DEFINITIONS

     The following definitions shall be applicable throughout this Plan unless specifically
modified by any paragraph:

     (a) “Affiliate” means any corporation, partnership, limited liability company or
partnership, association, trust or other organization which, directly or indirectly,
controls, is controlled by, or is under common control with, the Company. For purposes of
the preceding sentence, “control” (including, with correlative meanings, the terms
“controlled by” and “under common control with”), as used with respect to any entity or
organization, shall mean the possession, directly or indirectly, of the power (i) to vote
more than 50% of the securities having ordinary voting power for the election of directors
of the controlled entity or organization, or (ii) to direct or cause the direction of the
management and policies of the controlled entity or organization, whether through the
ownership of voting securities or by contract or otherwise.

     (b) “Award” means, individually or collectively, any Option or Restricted Stock Award.

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

     (d) “Code” means the Internal Revenue Code of 1986, as amended. Reference in this Plan
to any section of the Code shall be deemed to include any

 

 

amendments or successor provisions to such section and any regulations under such
section.

     (e) “Committee” means a committee of the Board that is selected by the Board as
provided in Section 4.1.

     (f) “Common Stock” means the common stock, par value $0.01 per share, of the Company,
or any security into which such Common Stock may be changed by reason of any transaction or
event of the type described in Article IX.

     (g) “Company” means Complete Energy Services, Inc., a Delaware corporation, or any
successor thereto.

     (h) “Company Change” shall have the meaning assigned to such term in Section 9.3.

     (i) “Consultant” means any person who is not an employee or a Director and who is
providing advisory or consulting services to the Company or any Affiliate.

     (j) “Director” means an individual who is a member of the Board.

     (k) An “employee” means any person (including a Director) in an employment relationship
with the Company or any Affiliate.

     (l) “Fair Market Value” means, as of any specified date, (i) the mean of the high and
low sales prices of the Common Stock (A) reported by the National Market System of NASDAQ on
that date, (B) if the Common Stock is listed on a national stock exchange, reported on the
stock exchange composite tape on that date (or such other reporting service approved by the
Committee) or, (C) in either case, if no prices are reported on that date, on the last
preceding date on which such prices of the Common Stock are so reported; or (ii) if the
Common Stock is then traded over the counter, the average between the reported high and low
or closing bid and asked prices of Common Stock on the most recent date on which Common
Stock was publicly traded; or (iii) if the Common Stock is not then publicly traded, the
fair market value as determined in good faith by the Committee in such manner as it deems
appropriate. Notwithstanding the foregoing, the Fair Market Value of a share of Common Stock
on the date of an initial public offering of Common Stock shall be the offering price under
such initial public offering.

     (m) “Incentive Stock Option” means an incentive stock option within the meaning of
section 422 of the Code.

     (n) “Option” means an Award granted under Article VII and includes both Incentive Stock
Options to purchase Common Stock and Options that do not constitute Incentive Stock Options
to purchase Common Stock.

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     (o) “Option Agreement” means a written agreement between the Company and a Participant
with respect to an Option.

     (p) “Participant” means an employee, Consultant, or Director who has been granted an
Award.

     (q) “Plan” means this Complete Energy Services, Inc. 2003 Stock Incentive Plan, as
amended from time to time.

     (r) “Restricted Stock Agreement” means a written agreement between the Company and a
Participant with respect to a Restricted Stock Award.

     (s) “Restricted Stock Award” means an Award granted under Article VIII.

     (t) “Stock Appreciation Right” shall have the meaning assigned to such term in Section
7.4.

ARTICLE III

EFFECTIVE DATE AND DURATION OF THIS PLAN

     This Plan shall become effective upon the date of its adoption by the Board, provided this
Plan is approved by the stockholders of the Company within 12 months thereafter. Notwithstanding
any provision in this Plan, in any Option Agreement or in any Restricted Stock Agreement, no Option
shall be exercisable and no Restricted Stock Award shall vest prior to such stockholder approval.
No further Awards may be granted hereunder after 10 years from the date this Plan is adopted by the
Board. This Plan shall remain in effect until all Options granted hereunder have been satisfied or
expired, and all Restricted Stock Awards granted hereunder have vested or been forfeited.

ARTICLE IV

ADMINISTRATION

     Section 4.1 Composition of Committee. This Plan shall be administered by a committee
of, and appointed by, the Board. In the absence of the Board’s appointment of a committee to
administer this Plan, the Board shall serve as the Committee.

     Section 4.2 Powers. Subject to the express provisions hereof, the Committee shall
have authority, in its discretion, to determine which employees, Consultants, or Directors shall
receive an Award, the time or times when such Award shall be made, whether an Incentive Stock
Option, an Option that does not constitute an Incentive Stock Option or a Restricted Stock Award
shall be granted, and the number of shares to be subject to each Option or Restricted Stock Award.
In making such determinations, the Committee shall take into account the nature of the services
rendered by the respective employees, Consultants, or Directors, their present and potential
contribution to the Company’s success and such other factors as the Committee in its discretion
shall deem relevant.

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     Section 4.3 Additional Powers. The Committee shall have such additional powers as are
delegated to it by the other provisions hereof. Subject to the express provisions hereof, this
shall include the power to construe this Plan and the respective agreements executed hereunder, to
prescribe rules and regulations relating to this Plan, and to determine the terms, restrictions and
provisions of the agreement relating to each Award, including such terms, restrictions and
provisions as shall be requisite in the judgment of the Committee to cause designated Options to
qualify as Incentive Stock Options, and to make all other determinations necessary or advisable for
administering this Plan. The Committee may correct any defect or supply any omission or reconcile
any inconsistency in this Plan or in any agreement relating to an Award in the manner and to the
extent it shall deem expedient to carry it into effect. The determinations of the Committee on the
matters referred to in this Article IV shall be conclusive.

ARTICLE V

SHARES SUBJECT TO THIS PLAN; GRANT OF AWARDS

     Section 5.1 Shares Subject to this Plan. Subject to adjustment in the same manner as
provided in Article IX with respect to shares of Common Stock subject to Awards then outstanding,
the aggregate number of shares of Common Stock that may be issued hereunder shall not exceed 15,000
shares, and the maximum number of shares of Common Stock for which the Options may be granted to
any one Participant during a calendar year is 10,000. Shares shall be deemed to have been issued
hereunder only (i) to the extent actually issued and delivered pursuant to an Award or (ii) to the
extent an Award is settled in cash. To the extent that an Award lapses or the rights of its holder
terminate, any shares of Common Stock subject to such Award shall again be available for the grant
of an Award hereunder.

     Section 5.2 Grant of Awards. The Committee may from time to time grant Awards to one
or more employees, Consultants, or Directors determined by it to be eligible for participation in
this Plan in accordance with the terms hereof.

     Section 5.3 Stock Offered. Subject to the limitations set forth in Section 5.1, the
stock to be offered pursuant to the grant of an Award may be authorized but unissued Common Stock
or Common Stock previously issued and outstanding and reacquired by the Company. Any of such
shares which remain unissued and which are not subject to outstanding Awards at the termination
hereof shall cease to be subject to this Plan but, until termination hereof, the Company shall at
all times make available a sufficient number of shares to meet the requirements hereof.

ARTICLE VI

ELIGIBILITY

     Awards may be granted only to persons who, at the time of grant, are employees, Consultants or
Directors. An Award may be granted on more than one occasion to the same person, and, subject to
the limitations set forth in this Plan, such Award may include an Incentive Stock Option, an Option
that is not an Incentive Stock Option, a Restricted Stock Award, or any combination thereof.

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ARTICLE VII

STOCK OPTIONS

     Section 7.1 Option Period. The term of each Option shall be as specified by the
Committee in the Option Agreement.

     Section 7.2 Limitations on Exercise of Option. An Option shall be exercisable in
whole or in such installments and at such times as determined by the Committee.

     Section 7.3 Special Limitations on Incentive Stock Options. An Incentive Stock Option
may be granted only to an individual who is employed by the Company or any parent or subsidiary
corporation (as defined in section 424 of the Code) of the Company at the time the Option is
granted. To the extent that the aggregate Fair Market Value (determined at the time the respective
Incentive Stock Option is granted) of Common Stock with respect to which Incentive Stock Options
are exercisable for the first time by an individual during any calendar year under all incentive
stock option plans of the Company and its parent and subsidiary corporations exceeds $100,000, such
Incentive Stock Options shall be treated as Options which do not constitute Incentive Stock
Options. The Committee shall determine, in accordance with applicable provisions of the Code,
Treasury regulations and other administrative pronouncements, which of a Participant’s Incentive
Stock Options will not constitute Incentive Stock Options because of such limitation and shall
notify such Participant of such determination as soon as practicable after such determination. No
Incentive Stock Option shall be granted to an individual if, at the time the Option is granted,
such individual owns stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company or of its parent or subsidiary corporation, within the meaning of
section 422(b)(6) of the Code, unless (i) at the time such Option is granted the option price is at
least 110% of the Fair Market Value of the Common Stock subject to the Option and (ii) such Option
by its terms is not exercisable after the expiration of five years from the date of grant. An
Incentive Stock Option shall not be transferable otherwise than by will or the laws of descent and
distribution, and shall be exercisable during a Participant’s lifetime only by such Participant or
such Participant’s guardian or legal representative.

     Section 7.4 Option Agreement. Each Option shall be evidenced by an Option Agreement
in such form and containing such provisions not inconsistent with the provisions hereof as the
Committee from time to time shall approve, including, without limitation, provisions to qualify an
Incentive Stock Option under section 422 of the Code. Each Option Agreement shall specify the
effect of termination of such Participant’s (i) employment, (ii) consulting or advisory
relationship, or (iii) membership on the Board, as applicable, on the exercisability of the Option.
An Option Agreement may provide for the payment of the option price, in whole or in part, by the
delivery of a number of shares of Common Stock (plus cash if necessary) having a Fair Market Value
equal to such option price. Moreover, an Option Agreement may provide for a “cashless exercise” of
the Option by establishing procedures satisfactory to the Committee with respect thereto. Further,
an Option Agreement may provide for the surrender of the right to purchase shares under the Option
in return for a payment in cash or shares of Common Stock or a combination of cash and shares of
Common Stock equal in value to the excess of the Fair Market Value of the shares with respect to
which the right to

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purchase is surrendered over the option price therefor (“Stock Appreciation Rights”), on such
terms and conditions as the Committee in its sole discretion may prescribe. In the case of any
such Stock Appreciation Right that is granted in connection with an Incentive Stock Option, such
right shall be exercisable only when the Fair Market Value of the Common Stock exceeds the price
specified therefor in the Option or the portion thereof to be surrendered. The terms and
conditions of the respective Option Agreements need not be identical. Subject to the written
consent of the Participant, the Committee may, in its sole discretion, amend an outstanding Option
Agreement from time to time in any manner that is not inconsistent with the provisions hereof
(including, without limitation, an amendment that accelerates the time at which the Option, or a
portion thereof, may be exercisable).

     Section 7.5 Option Price and Payment. The price at which a share of Common Stock may
be purchased upon exercise of an Option shall be determined by the Committee; provided, however,
that, subject to adjustment as provided in Article IX, (i) in the case of an Incentive Stock
Option, such purchase price shall not be less than the Fair Market Value of a share of Common Stock
on the date such Option is granted and (ii) in the case of an Option that does not constitute an
Incentive Stock Option, such purchase price shall not be less than 85% of the Fair Market Value of
a share of Common Stock on the date such Option is granted. The Option or portion thereof may be
exercised by delivery of an irrevocable notice of exercise to the Company, as specified by the
Committee. The purchase price of the Option or portion thereof shall be paid in full in the manner
prescribed in the Option Agreement. Separate stock certificates shall be issued by the Company for
those shares acquired pursuant to the exercise of an Incentive Stock Option and for those shares
acquired pursuant to the exercise of any Option that does not constitute an Incentive Stock Option.

     Section 7.6 Stockholder Rights and Privileges. Each Participant shall be entitled to
all the privileges and rights of a stockholder of the Company only with respect to such shares of
Common Stock as have been purchased under the Option and for which certificates of stock have been
registered in such Participant’s name.

     Section 7.7 Options and Rights in Substitution for Options Granted by Other Employers.
Options and Stock Appreciation Rights may be granted hereunder from time to time in substitution
for options held by individuals providing services to corporations or other entities who become
employees, Consultants, or Directors as a result of a merger or consolidation or other business
transaction with the Company or any Affiliate.

ARTICLE VIII

RESTRICTED STOCK AWARDS

     Section 8.1 Forfeiture Restrictions To Be Established by the Committee. Shares of
Common Stock that are the subject of a Restricted Stock Award granted to a Participant shall be
subject to restrictions on disposition by such Participant and an obligation of such Participant to
forfeit and surrender the shares to the Company under certain circumstances (the “Forfeiture
Restrictions”). Unless otherwise provided in a Restricted Stock Agreement or any applicable
stockholders agreement then in effect, the Forfeiture Restrictions shall be determined by the
Committee in its sole discretion, and the Committee may provide that the

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Forfeiture Restrictions shall lapse upon (i) the attainment of one or more performance targets
established by the Committee, (ii) such Participant’s continued employment with the Company or an
Affiliate or continued service as a Consultant or Director for a specified period of time, (iii)
the occurrence of any event or the satisfaction of any other condition specified by the Committee
in its sole discretion, or (iv) a combination of any of the foregoing. Each Restricted Stock Award
may have different Forfeiture Restrictions, in the discretion of the Committee.

     Section 8.2 Other Terms and Conditions. Common Stock awarded to a Participant
pursuant to a Restricted Stock Award shall be represented by a stock certificate registered in the
name of such Participant. Unless provided otherwise in a Restricted Stock Agreement, such
Participant shall have the right to receive dividends with respect to Common Stock subject to a
Restricted Stock Award, to vote Common Stock subject thereto and to enjoy all other stockholder
rights, except that (i) such Participant shall not be entitled to delivery of the stock certificate
until the Forfeiture Restrictions have expired, (ii) the Company shall retain custody of the stock
certificate until the Forfeiture Restrictions have expired, (iii) such Participant may not sell,
transfer, pledge, exchange, hypothecate or otherwise dispose of the stock until the Forfeiture
Restrictions have expired, and (iv) a breach of the terms and conditions established by the
Committee pursuant to the Restricted Stock Agreement shall cause a forfeiture of the Restricted
Stock Award. At the time of such Restricted Stock Award, the Committee may, in its sole
discretion, prescribe additional terms, conditions or restrictions relating to such Restricted
Stock Award, including, but not limited to, rules pertaining to the termination of employment or
service as a Consultant or Director (by retirement, disability, death or otherwise) of a
Participant prior to expiration of the Forfeitures Restrictions. Such additional terms, conditions
or restrictions shall be set forth in a Restricted Stock Agreement made in conjunction with such
Restricted Stock Award.

     Section 8.3 Payment for Restricted Stock. The Committee shall determine the amount
and form of any payment for Common Stock received pursuant to a Restricted Stock Award, provided
that in the absence of such a determination, a Participant shall not be required to make any
payment for Common Stock received pursuant to a Restricted Stock Award, except to the extent
otherwise required by law.

     Section 8.4 Committee’s Discretion to Accelerate Vesting of Restricted Stock Awards.
The Committee may, in its discretion and as of a date determined by the Committee, fully vest any
or all Common Stock awarded to a Participant pursuant to a Restricted Stock Award and, upon such
vesting, all restrictions applicable to such Restricted Stock Award shall terminate as of such
date. Any action by the Committee pursuant to this Section 8.4 may vary among individual
Participants and may vary among the Restricted Stock Awards held by any individual Participant.

     Section 8.5 Restricted Stock Agreements. At the time any Restricted Stock Award is
made under this Article VIII, the Company and each Participant who receives a Restricted Stock
Award shall enter into a Restricted Stock Agreement setting forth each of the matters contemplated
hereby and such other matters as the Committee may determine to be appropriate. The terms and
provisions of the respective Restricted Stock Agreements need not be identical. Subject to the
written consent of each Participant, the Committee may, in its sole

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discretion, amend the outstanding Restricted Stock Agreements from time to time in any manner
that is not inconsistent with the provisions hereof.

ARTICLE IX

RECAPITALIZATION OR REORGANIZATION

     Section 9.1 No Effect on Right or Power. Other than as expressly set forth in this
Plan, an Option Agreement or a Restricted Stock Agreement, the existence of this Plan and the
Awards granted hereunder shall not affect in any way the right or power of the Board or the
stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization
or other change in the Company’s or any Affiliate’s capital structure or its business, any merger
or consolidation of the Company or any Affiliate, any sale of all of the Common Stock of the
Company, any issue of debt or equity securities ahead of or affecting Common Stock or the rights
thereof, the dissolution or liquidation of the Company or any Affiliate or any sale, lease,
exchange or other disposition of all or any part of its assets or business or any other corporate
act or proceeding.

     Section 9.2 Subdivision or Consolidation of Shares; Stock Dividends. The shares with
respect to which Options may be granted are shares of Common Stock as presently constituted, but
if, and whenever, prior to the expiration of an Option theretofore granted, the Company shall
effect a subdivision or consolidation of shares of Common Stock or the payment of a stock dividend
on Common Stock, the number of shares of Common Stock with respect to which such Option may
thereafter be exercised (i) in the event of an increase in the number of outstanding shares shall
be proportionately increased, and the purchase price per share shall be proportionately reduced,
and (ii) in the event of a reduction in the number of outstanding shares shall be proportionately
reduced, and the purchase price per share shall be proportionately increased. Any fractional share
resulting from such adjustment shall be rounded up to the next whole share. The purchase price per
share resulting from such adjustment shall be rounded down to the nearest cent.

     Section 9.3 Recapitalizations and Company Changes. If the Company recapitalizes,
reclassifies its capital stock, or otherwise changes its capital structure (each, a
“recapitalization”), the number and class of shares of Common Stock covered by an Option
theretofore granted shall be adjusted so that such Option shall thereafter cover the number and
class of shares of stock and securities to which the Participant would have been entitled pursuant
to the terms of the recapitalization if, immediately prior to the recapitalization, such
Participant had been the holder of record of the number of shares of Common Stock then covered by
such Option. If (i) the Company shall not be the surviving entity in any merger or consolidation
(or survives only as a subsidiary of an entity), (ii) the Company sells, leases or exchanges all or
substantially all of its assets to any other person or entity, (iii) the Company is to be dissolved
and liquidated, (iv) any person or entity (other than SCF-IV, L.P. or its Affiliates or any other
Affiliate of the Company), including a “group” as contemplated by Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended, acquires or gains ownership or control (including,
without limitation, power to vote) of more than 50% of the outstanding shares of the Company’s
voting stock (based upon voting power), or (v) as a result of or in connection with a contested
election of Directors, the persons who were Directors of the Company before such election shall

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cease to constitute a majority of the Board (each such event is referred to herein as a
“Company Change”), no later than (x) 10 days following the approval by the stockholders of the
Company of such merger, consolidation, reorganization, sale, lease or exchange of assets or
dissolution or such election of Directors or (y) 30 days following a Company Change of the type
described in clause (iv), the Committee, acting good faith without the consent or approval of any
Participant, shall effect one or more of the following alternatives, which alternatives may vary
among, but not within, classes and series of Participants and which may vary among, but not within,
classes or series of securities underlying Options held by any individual Participant: (1)
accelerate the time at which Options then outstanding may be exercised so that such Options may be
exercised in full for a limited, reasonable period of time on or before a specified date (before or
after such Company Change) fixed in good faith by the Committee, after which specified date all
unexercised Options and all rights of Participants thereunder shall terminate, (2) require the
mandatory surrender to the Company by all Participants holding selected classes or series of some
or all of the outstanding Options held by such Participants (provided that in the event such
Options are then exercisable, such Participant shall first have the option (of a period of no less
than 30 days following the occurrence of the Company Change) to exercise such Option in accordance
with its terms) as of a date after such Company Change, specified in good faith by the Committee,
in which event the Committee shall thereupon cancel such Options and cause the Company to pay to
each such Participant an amount of cash per share equal to the excess, if any, of the Change of
Control Value (as calculated in accordance with Section 9.4 below) of the shares subject to such
Option over the exercise price(s) under such Options for such shares, or (3) make such adjustments
to Options then outstanding and this Plan as the Committee in good faith deems appropriate to
reflect such Company Change (provided, however, that the Committee may determine in good faith that
no adjustment is necessary to Options then outstanding), including, without limitation, the
Committee may adjust an Option to provide that the number and class or series of shares of Common
Stock covered by such Option shall be adjusted so that such Option shall thereafter cover
securities of the surviving or acquiring corporation (a “Surviving Adjustment”) or other property
(including, without limitation, cash) as determined by the Committee in good faith; provided,
however, that notwithstanding this Article IX, if in the event the Company either (xx) the Company
is not the surviving entity in a merger or consolidation (or survives only as a subsidiary of an
entity) but more than 50% of the issued and outstanding equity securities of such surviving entity
or parent, as the case may be, immediately following such merger or consolidation is owned by
equity holders who were equity holders of the Company immediately preceding such merger or
consolidation (or their Affiliates), or (yy) the Company sells, leases or exchanges all or
substantially all of its assets to an Affiliate, then in either event, the Option shall be adjusted
so that the Optionee shall be entitled, upon exercise of such Option, to the securities or other
property Optionee would have received if Optionee had exercised such Option immediately prior to
such merger or consolidation.

     Section 9.4 Change of Control Value. For the purposes of clause (2) in Section 9.3
above, the “Change of Control Value” shall equal the amount determined in clause (i), (ii) or
(iii), whichever is applicable, as follows: (i) the per share price offered to stockholders of the
Company in any such merger, consolidation, sale, lease or exchange of assets or dissolution
transaction, (ii) the price per share offered to stockholders of the Company in any tender offer or
exchange offer resulting in a Company Change, or (iii) if such Company Change

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occurs other than pursuant to any transaction set forth in (i) and (ii) above, the fair market
value per share of the shares into which such Options being surrendered are exercisable, as
determined in good faith by the Committee as of the date determined by the Committee to be the date
of cancellation and surrender of such Options. In the event that the consideration offered to
stockholders of the Company in any transaction described in Section 9.3 or this Section 9.4
consists of anything other than cash, the Committee shall determine in good faith the fair cash
equivalent of such portion of the consideration offered.

     Section 9.5 Other Changes in the Common Stock. In the event of changes in the
outstanding Common Stock by reason of recapitalizations, reorganizations, mergers, consolidations,
combinations, split-ups, split-offs, spin-offs, exchanges or other relevant changes in
capitalization or distributions to the holders of Common Stock occurring after the date of the
grant of any Award and not otherwise provided for by this Article IX, such Award and any agreement
evidencing such Award shall be subject to adjustment by the Committee in good faith (within the
same spirit and analogous parameters, to the extent reasonably possible, as set forth in this
Article IX) as to the number and price of shares of Common Stock or other consideration subject to
such Award. In the event of any such change in the outstanding Common Stock or distribution to the
holders of Common Stock or upon the occurrence of any other event described in this Article IX, the
aggregate number of shares available hereunder shall be appropriately adjusted in good faith by the
Committee, whose determination shall be conclusive.

     Section 9.6 Stockholder Action. Any adjustment provided for in this Article IX shall
be subject to any required stockholder action as provided in Article X.

     Section 9.7 No Adjustments unless Otherwise Provided. Except as hereinbefore
expressly provided, the issuance by the Company of shares of stock of any class or securities
convertible into shares of stock of any class, for cash, property, labor or services, upon direct
sale, upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares
or obligations of the Company convertible into such shares or other securities, and in any case
whether or not for fair value, shall not affect, and no adjustment by reason thereof shall be made
with respect to, the number of shares of Common Stock subject to Awards theretofore granted or the
purchase price per share, if applicable.

ARTICLE X

AMENDMENT AND TERMINATION OF THIS PLAN

     The Board in its discretion may terminate this Plan at any time with respect to any shares of
Common Stock for which Awards have not theretofore been granted. The Board shall have the right to
alter or amend this Plan or any part thereof from time to time; provided that no change in this
Plan may be made that would impair the rights of a Participant with respect to an Award theretofore
granted without the written consent of such Participant, and provided, further, that the Board may
not, without approval of the stockholders of the Company, amend this Plan to (a) increase the
maximum aggregate number of shares that may be issued hereunder or (b) change the class of
individuals eligible to receive Awards hereunder.

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ARTICLE XI

MISCELLANEOUS

     Section 11.1 No Right To An Award. Neither the adoption of this Plan nor any action
of the Board or of the Committee shall be deemed to give an employee, Consultant, or Director any
right to be granted an Option, a right to a Restricted Stock Award, or any other rights hereunder
except as may be evidenced by an Option Agreement or a Restricted Stock Agreement duly executed on
behalf of the Company, and then only to the extent and on the terms and conditions expressly set
forth therein. This Plan shall be unfunded. The Company shall not be required to establish any
special or separate fund or to make any other segregation of funds or assets to assure the
performance of its obligations under any Award.

     Section 11.2 No Employment/Membership Rights Conferred. Nothing contained in this
Plan shall (i) confer upon any employee or Consultant any right with respect to continuation of
employment or of a consulting or advisory relationship with the Company or any Affiliate or (ii)
interfere in any way with the right of the Company or any Affiliate to terminate his or her
employment or consulting or advisory relationship at any time. Nothing contained in this Plan
shall confer upon any Director any right with respect to continuation of membership on the Board.

     Section 11.3 Other Laws; Withholding. The Company shall not be obligated to issue any
Common Stock pursuant to any Award granted hereunder at any time when the shares covered by such
Award have not been registered under the Securities Act of 1933, as amended, and such other state,
provincial and federal laws, rules and regulations as the Company or the Committee deems applicable
and, in the opinion of legal counsel for the Company, there is no exemption from the registration
requirements of such laws, rules and regulations available to the Company, after taking reasonable
efforts, for the issuance and sale of such shares. No fractional shares of Common Stock shall be
delivered, nor shall any cash in lieu of fractional shares be paid. The Company shall have the
right to deduct in connection with all Awards any taxes required by law to be withheld and to
require any payments required to enable it to satisfy its withholding obligations.

     Section 11.4 Restrictions on Transfer. An Award (other than an Incentive Stock
Option, which shall be subject to the transfer restrictions set forth in Section 7.3) shall not be
transferable otherwise than (i) by will or the laws of descent and distribution, (ii) pursuant to a
qualified domestic relations order as defined by the Code or Title I of the Employee Retirement
Income Security Act of 1974, as amended, or the rules thereunder, or (iii) with the consent of the
Committee.

     Section 11.5 Governing Law. This Plan shall be governed by, and construed in
accordance with, the laws of the State of Delaware, without regard to conflicts of law principles
thereof.

Complete Energy Services, Inc. 

2003 Stock Incentive Plan

11

 

     IN WITNESS WHEREOF, the Company has caused this Plan to be duly executed by an officer
thereunto duly authorized as of November 7, 2003, the date of its adoption by the Board.

	 	 	 	 	 
	 	COMPLETE ENERGY SERVICES, INC.

 	 
	 	By:  	/s/
Andrew L. Waite 	 
	 	 	Name:  	Andrew L. Waite 	 
	 	 	Title:  	President, Chief Executive Officer,
 and
Secretary 	 
	 

Complete Energy Services, Inc. 

2003 Stock Incentive Plan

12

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