Document:

exv10w1

Exhibit 10.1

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (this “Agreement”) is made and entered into as of
________ __, 2011, by and between Dawson Geophysical Company, a Texas corporation (the
“Company”), and ________________ (the “Indemnitee”).

     WHEREAS, qualified persons are reluctant to serve organizations as directors or officers or in
other capacities unless they are provided with adequate protection against risks of claims and
actions against them arising out of their service to and activities on behalf of such
organizations;

     WHEREAS, the parties hereto recognize that the legal risks and potential liabilities, and the
threat thereof, associated with lawsuits filed against persons serving the Company and/or its
subsidiaries, and the resultant substantial time, expense and anxiety spent and endured in
defending lawsuits bears no reasonable relationship to the compensation received by such persons,
and thus poses a significant deterrent and increased reluctance on the part of experienced and
capable individuals to serve the Company and/or its subsidiaries;

     WHEREAS, the uncertainties related to obtaining adequate insurance and indemnification have
increased the difficulty of attracting and retaining such persons;

     WHEREAS, Chapter 8 of the Texas Business Organizations Code (the “TBOC”) of the State
of Texas, under which law the Company is organized, empowers a corporation organized in Texas to
indemnify persons who serve as directors and/or officers of the corporation, or persons who serve
at the request of the corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise;

     WHEREAS, the Bylaws of the Company permit indemnification to the fullest extent permitted by
applicable law;

     WHEREAS, it is reasonable, prudent and necessary for the Company to contractually agree to
indemnify such persons to the fullest extent permitted by law, so that such persons will serve or
continue to serve the Company and/or its subsidiaries free from undue concern that they will not be
adequately indemnified; and

     WHEREAS, the Indemnitee is willing to serve, continue to serve and to take on additional
service for and on behalf of the Company on the condition that the Indemnitee is indemnified
according to the terms of this Agreement;

     NOW, THEREFORE, in consideration of the premises and of the Indemnitee’s agreement to provide
services to the Company and/or its subsidiaries and intending to be legally bound hereby, the
parties hereto agree as follows:

 

 

     1. Certain Definitions. For purposes of this Agreement:

     (a) “Agreement” shall have the meaning ascribed to such term in the
preamble.

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

     (c) “Change in Control” means a change in control of the Company
occurring after the date hereof in any of the following circumstances: (i) there
shall have occurred an event required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A (or in response to any similar item on any similar
schedule or form) promulgated under the Exchange Act, whether or not the Company is
then subject to such reporting requirement; (ii) any “person” (as such term is used
in Section 13(d) and 14(d) of the Exchange Act), other than a trustee or other
fiduciary holding securities under an employee benefit plan of the Company or a
corporation or other entity owned directly or indirectly by the shareholders of the
Company in substantially the same proportions as their ownership of stock of the
Company, shall have become the “beneficial owner” (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Company representing
20% or more of the combined voting power of the Company’s then outstanding voting
securities without prior approval of at least two-thirds of the members of the Board
in office immediately prior to such person attaining such percentage interest; (iii)
the Company is a party to a merger, consolidation, share exchange, sale of assets or
other reorganization, or a proxy contest, as a consequence of which members of the
Board in office immediately prior to such transaction or event constitute less than
a majority of the Board thereafter; or (iv) during any fifteen-month period,
individuals who at the beginning of such period constituted the Board (including for
this purpose any new director whose election or nomination for election by the
Company’s shareholders was approved by a vote of at least two-thirds of the
directors then still in office who were directors at the beginning of such period)
cease for any reason to constitute at least a majority of the Board.

     (d) “Company” shall have the meaning ascribed to such term in the
preamble.

     (e) “Disqualifying Event” shall have the meaning ascribed to such term
in Section 6(d).

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

     (g) “Expenses” means any judgment, penalty, settlement, fine, excise or
similar tax and all reasonable attorneys’ fees, retainers, court costs, transcript
costs, fees of experts, witness fees, travel expenses, duplicating costs, printing
and binding costs, telephone charges, postage, delivery service fees, and all other
disbursements or expenses of the types customarily incurred in connection with

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prosecuting, defending, preparing to prosecute or defend, investigating, or
being or preparing to be a witness or otherwise participating in a Proceeding.

     (h) “Indemnifiable Event” means any event or occurrence related to the
fact that the Indemnitee is or was serving as a member of the Board and/or an
officer of the Company, or is or was serving at the request of the Company as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise.

     (i) “Indemnitee” shall have the meaning ascribed to such term in the
preamble.

     (j) “Special Legal Counsel” means a law firm, or member of a law firm,
that is experienced in matters of corporation law and neither presently is, nor in
the five years previous to his selection or appointment has been, retained to
represent: (i) the Company or the Indemnitee in any matter material to either such
party; (ii) any other party to the Proceeding giving rise to a claim for
indemnification hereunder; or (iii) the beneficial owner, directly or indirectly, of
securities of the Company representing 30% or more of the combined voting power of
the Company’s then outstanding voting securities. Notwithstanding the foregoing,
the term “Special Legal Counsel” shall not include any person who, under the
applicable standards of professional conduct then prevailing in the State of Texas,
would have a conflict of interest in representing either the Company or the
Indemnitee in an action to determine the Indemnitee’s rights to indemnification
under this Agreement.

     (k) “Proceeding” includes (i) any threatened, pending or completed
action, suit, arbitration, alternate dispute resolution proceeding, investigation,
administrative hearing and any other proceeding, whether civil, criminal,
administrative, arbitrative, investigative or other, (ii) any appeal of an action or
proceeding described in (i), or (iii) any inquiry or investigation, whether
conducted by or on behalf of the Company, a subsidiary of the Company or any other
party, formal or informal, that the Indemnitee in good faith believes might lead to
the institution of an action or proceeding described in (i), except one initiated by
the Indemnitee (other than as provided pursuant to Section 8).

     (l) “TBOC” shall have the meaning ascribed to such term in the
recitals.

     2. Indemnification Arrangement. In the event the Indemnitee was, is or becomes a
party to or witness or other participant in, or is threatened to be made a party to or witness or
other participant in, a Proceeding by reason of (or arising in part out of) an Indemnifiable Event,
to the fullest extent permitted by the TBOC or other applicable law as the same may exist or be
hereinafter amended (by statute or judicial decision) (but in the case of any such amendment, with
respect to matters occurring before such amendment, only to the extent that such amendment permits
the Company to provide broader indemnification rights than said law permitted the Company to
provide prior to such amendment), the Company shall, subject to

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and in accordance with the provisions of Section 6, indemnify and hold harmless the Indemnitee
against any and all Expenses of such Proceeding as soon as practicable but in any event no later
than (a) in the case of an initial written request for indemnification in connection with a
Proceeding, five days after a determination has been made, or is deemed to have been made, that the
Indemnitee is entitled to indemnification and (b) in the case of a written request for
indemnification made pursuant to Section 5 in connection with a Proceeding for which a
determination has been made that the Indemnitee is entitled to indemnification in connection with
such Proceeding, five days after such written request.

     3. Advancement or Reimbursement of Expenses. The rights of the Indemnitee provided
under Section 2 shall include, but not be limited to, the right to be indemnified and to have all
Expenses advanced (including the payment of Expenses before final disposition of a Proceeding) in
all Proceedings to the fullest extent permitted, or not prohibited, by the TBOC or other applicable
law. In addition, to the extent the Indemnitee is, by reason of (or arising in part out of) an
Indemnifiable Event, a witness or otherwise participates in any Proceeding at a time when he is not
named a defendant or respondent in the Proceeding, he shall be indemnified against all Expenses
actually and reasonably incurred by him or on his behalf in connection therewith. The Indemnitee
shall be advanced Expenses, within five days after any request for such advancement, to the fullest
extent permitted, or not prohibited, by Chapter 8 of the TBOC; provided that the Indemnitee has
provided to the Company all affirmations, acknowledgments, representations and undertakings that
may be required of the Indemnitee by Chapter 8 of the TBOC.

     4. No Settlement without Consent. The Company shall not be liable to indemnify the
Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding effected
without its written consent. The Company shall not settle any action or claim in any manner which
would impose any penalty or limitation on the Indemnitee without the Indemnitee’s written consent.
Neither the Company nor the Indemnitee will unreasonably withhold or delay their consent to any
proposed settlement.

     5. Request for Indemnification. To obtain indemnification as herein provided, the
Indemnitee shall submit to the Secretary of the Company a written claim or request. Such written
claim or request shall contain sufficient information to reasonably inform the Company about the
nature and extent of the indemnification or advance sought by the Indemnitee. The Secretary of the
Company shall promptly advise the Board of such request.

     6. Determination of Request.

     (a) Upon written request to the Company by the Indemnitee for indemnification
pursuant to this Agreement, a determination, if required by applicable law, with
respect to the Indemnitee’s entitlement thereto shall be made in accordance with
Section 8.103(a)(1) or (2) of the TBOC; provided, however, that notwithstanding the
foregoing, if a Change in Control shall have occurred, such determination shall be
made by a Special Legal Counsel selected by the Board, unless the Indemnitee shall
request (at the time the Indemnitee submits the written request for indemnification)
that such determination be made in accordance with Section 8.103(a)(1) or (2) of the
TBOC.

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     (b) If entitlement to indemnification is to be determined by a Special Legal
Counsel, the Company shall furnish notice to the Indemnitee within ten days after
receipt of a claim of or request for indemnification, specifying the identity and
address of the Special Legal Counsel and a certification by the Special Legal
Counsel that the Special Legal Counsel has reviewed and is in compliance with the
requirements to be a Special Legal Counsel. The Indemnitee may, within seven days
after receipt of such written notice of selection, deliver to the Company a written
objection to such selection. Such objection may be asserted only on the ground that
the Special Legal Counsel selected does not meet the requirements of a Special Legal
Counsel as defined in this Agreement, and the objection shall set forth with
particularity the factual basis for that assertion. If there is an objection to the
selection of the Special Legal Counsel, either the Company or the Indemnitee may
petition the Court for a determination that the objection is without a reasonable
basis and/or for the appointment of a Special Legal Counsel selected by the Court.
The Company shall pay any and all reasonable fees and expenses of the Special Legal
Counsel incurred in connection with any such determination. If a Change in Control
shall have occurred, the Indemnitee shall be presumed (except as otherwise expressly
provided in this Agreement) to be entitled to indemnification under this Agreement
upon submission of a request to the Company for indemnification, and thereafter the
Company shall have the burden of proof in overcoming that presumption in reaching a
determination contrary to that presumption. The presumption shall be used by the
Special Legal Counsel, or such other person or persons determining entitlement to
indemnification, as a basis for a determination of entitlement to indemnification
unless the Company provides information sufficient to overcome such presumption by
clear and convincing evidence or the investigation, review and analysis of the
Special Legal Counsel or such other person or persons convinces him or them by clear
and convincing evidence that the presumption should not apply.

     (c) The Indemnitee will cooperate with the person or persons making the
determination under this Section 6 with respect to the Indemnitee’s entitlement to
indemnification under this Agreement, including providing to such person or persons,
on reasonable advance request, any documentation or information that is: (i) not
privileged or otherwise protected from disclosure; (ii) reasonably available to
Indemnitee; and (iii) reasonably necessary to that determination.

     (d) Any determination of the Indemnitee’s entitlement to indemnification to be
made pursuant to this Section 6 shall be made, and the Indemnitee shall be notified
of such determination, not later than 20 days after receipt by the Secretary of the
Company of the Indemnitee’s written claim for indemnification; provided, however,
that in the case of a determination to be made by Special Legal Counsel the
selection of whom is the subject of an existing objection, such determination, and
the Indemnitee’s notification of such determination, shall be made not later than 20
days after the selection of the Special Legal Counsel is finally determined.
Notwithstanding anything herein to

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the contrary, if the person or persons empowered under this Section 6 to
determine entitlement to indemnification have not made a determination within the
applicable period set forth in this Section 6(d), the Indemnitee shall be deemed to
be entitled to indemnification unless the Company establishes that a Disqualifying
Event has occurred. Subject to applicable law, determinations of entitlement to
indemnification made, or deemed to have been made, in accordance with the provisions
of this Section 6, shall be conclusive, final and binding on the parties hereto
unless, in the event the Company has previously determined to indemnify the
Indemnitee, the Company establishes as provided in the final sentence of this
Section 6 that: (i) the Indemnitee misrepresented or failed to disclose a material
fact in making the request for indemnification; or (ii) such indemnification is
prohibited by applicable law (each event described in subclause (i) or (ii) of this
Section 6, a “Disqualifying Event”). Notwithstanding the foregoing, the
Company may bring an action, in an appropriate court in the State of Texas or any
other court of competent jurisdiction, contesting the right of the Indemnitee to
receive indemnification hereunder due to the occurrence of a Disqualifying Event;
provided, however, that in any such action the Company will have the burden of
proving the occurrence of such Disqualifying Event.

     7. Effect of Certain Proceedings. The termination of any Proceeding or of any matter
therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its
equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself
adversely affect the right of the Indemnitee to indemnification or create a presumption that (a)
the Indemnitee did not conduct himself in good faith and in a manner which he reasonably believed,
in the case of conduct in his official capacity, to be in the best interests of the Company, or, in
all other cases, that at least his conduct was not opposed to the Company’s best interests, or (b)
with respect to any criminal Proceeding, that the Indemnitee had reasonable cause to believe that
his conduct was unlawful.

     8. Expenses of Enforcement of Agreement. The Indemnitee shall be entitled to seek an
adjudication to enforce his rights under, or to recover damages for breach of rights created under
or pursuant to, this Agreement either, at the Indemnitee’s option, in (a) an appropriate court of
the State of Texas or any other court of competent jurisdiction, or (b) an arbitration to be
conducted by a single arbitrator, selected by mutual agreement of the Company and the Indemnitee
(or, failing such agreement by the then sitting Chief Judge of the United States District Court for
the appropriate jurisdiction), pursuant to the commercial arbitration rules of the American
Arbitration Association. In the event that the Indemnitee seeks any such judicial adjudication or
arbitration award to enforce his rights under, or to recover damages for breach of rights created
under or pursuant to, this Agreement, the Indemnitee shall be entitled to recover from the Company,
and shall be indemnified by the Company against, any and all Expenses actually and reasonably
incurred by him in such judicial adjudication but only if he prevails therein. If it shall be
determined in said judicial adjudication that the Indemnitee is entitled to receive part but not
all of the indemnification or advancement of Expenses sought, the Expenses incurred by the
Indemnitee in connection with such judicial adjudication shall be reasonably prorated in good faith
by counsel for the Indemnitee. Notwithstanding the foregoing, if a Change in Control shall have
occurred, the Indemnitee shall be entitled to indemnification

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under this Section 8 regardless of whether the Indemnitee ultimately prevails in such judicial
adjudication.

     9. Common Attorney. Notwithstanding the obligation of the Company to indemnify the
Indemnitee against Expenses pursuant to Section 2, in the event there is a Proceeding by reason of
(or arising in part out of) an Indemnifiable Event against several persons, including the
Indemnitee, who have a right of indemnification against the Company with respect to Expenses
relating to such Proceeding and who have totally common interests such that their goals are
identical and there are no conflicts-of-interest among them, then such group of persons shall, by
majority vote of such persons, select a single attorney or law firm to serve as the sole and
exclusive legal counsel for all of the members of such group (including the Indemnitee). In the
event the Indemnitee acts independently by retaining the legal services of any other attorney or
law firm to additionally or separately represent him, all Expenses relating to such independently
retained attorney or law firm shall be the sole responsibility of the Indemnitee.

     10. Nonexclusive Rights; Subsequent Change in Law. The rights of indemnification and
to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of
any other rights to which the Indemnitee may at any time be entitled under applicable law, the
articles of incorporation of the Company, the Bylaws of the Company, agreement, insurance,
arrangement, a vote of shareholders or a resolution of directors, or otherwise. To the extent that
a change in the TBOC or other applicable law (whether by statute or judicial decision) permits
greater indemnification by agreement than would be afforded currently under the Company’s articles
of incorporation or bylaws and this Agreement, it is the intent of the parties hereto that the
Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change.

     11. D&O Liability Insurance. The Company shall from time to time make a good faith
determination whether or not it is practicable for the Company to obtain and maintain a policy or
policies of insurance with reputable insurance companies providing the directors and officers of
the Company or its subsidiaries or affiliates, with coverage for losses incurred in connection with
their services to the Company or its subsidiaries or affiliates or to ensure the Company’s
performance of its indemnification obligations under this Agreement. Among other considerations,
the Company will weigh the costs of obtaining such insurance coverage against the protection
afforded by such coverage. To the extent the Company maintains an insurance policy or policies
providing directors’ and/or officers’ liability insurance, the Indemnitee shall be covered by such
policy or policies, in accordance with its or their terms, to the maximum extent of the coverage
available for any of the Company’s directors and/or officers. The Company shall not be liable
under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the
extent that the Indemnitee has otherwise actually received such payment under any bylaws, insurance
policy, contract, agreement or otherwise.

     12. No Employment Rights. Nothing in this Agreement is intended to create in the
Indemnitee any right to continued service as a director and/or officer with the Company.

     13. Amendments; Waiver. No supplement, modification or amendment of this Agreement
shall be binding unless executed in writing by both of the parties hereto. No

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waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver
of any other provisions hereof (whether or not similar) nor shall such waiver constitute a
continuing waiver.

     14. Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee, who
shall execute all papers required and shall do everything that may be necessary to secure such
rights, including the execution of such documents necessary to enable the Company effectively to
bring suit to enforce such rights.

     15. Term. This Agreement shall be effective from and after the date hereof, and shall
continue until and terminate upon the later of: (a) the sixth anniversary after the Indemnitee has
ceased to be a member of the Board and/or an officer of the Company or otherwise hold a position
that could give rise to an Indemnifiable Event or (b) the final termination or resolution of all
Proceedings with respect to which the Company is indemnifying the Indemnitee against any and all
Expenses relating to such Proceeding pursuant to the terms of this Agreement that are commenced
prior to such six-year anniversary.

     16. Notification and Defense of Claims. The Indemnitee agrees to notify the Company
promptly in writing upon being served with any summons, citation, subpoena, complaint, indictment,
information, or other document relating to any matter which may be subject to indemnification
hereunder, whether civil, criminal, or investigative; provided. however, that the failure of the
Indemnitee to give such notice to the Company shall not adversely affect the Indemnitee’s rights
under this Agreement except to the extent the Company has been materially prejudiced as a direct
result of such failure. Nothing in this Agreement shall constitute a waiver of the Company’s right
to seek participation at its own expense in any Proceeding which may give rise to indemnification
hereunder.

     17. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
and be enforceable by the parties hereto and their respective successors or assigns (including any
direct or indirect successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business and/or assets of the Company), spouses, heirs, executors and
personal or legal representatives. This Agreement shall continue in effect regardless of whether
the Indemnitee continues to serve as a director and/or officer of the Company.

     18. Severability. The provisions of this Agreement shall be severable in the event
that any of the provisions hereof (including any provision within a single section, paragraph or
sentence) is held by a court of competent jurisdiction to be invalid, void or otherwise
unenforceable in any respect, and the validity and enforceability of any such provision in every
other respect and of the remaining provisions hereof shall not be in any way impaired and shall
remain enforceable to the fullest extent permitted by law. To the fullest extent possible, the
provisions of this Agreement shall be construed so as to give effect to the intent manifested by
the provision held invalid, illegal or unenforceable.

     19. Governing Law. This Agreement and all acts and transactions pursuant hereto and
the rights and obligations of the parties hereto shall be governed, construed and

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interpreted in accordance with the laws of the State of Texas, without giving effect to
conflicts of law provisions thereof.

     20. Notice. All notices, demands and other communications required or permitted under
this Agreement shall be made in writing and shall be deemed to have been duly received upon actual
receipt if delivered by hand, against receipt, or mailed, postage prepaid, certified or registered
mail, return receipt requested, and addressed to the Company at:

Dawson Geophysical Company

508 West Wall, Suite 800

Midland, Texas 79701

Attn: Secretary

and to Indemnitee at the address set forth on the signature page attached hereto.

[Signature page follows]

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth
above.

	 	 	 	 	 	 	 

	 	 	DAWSON GEOPHYSICAL COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	INDEMNITEE	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Address:
	 	 

	 	 
	 

	 	 	 	 

	 	 

10exv10w2

Exhibit 10.2

EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is made as of the _____ day of
_________________, 20__ (the “Effective Date”) by and between
__________________1, a Texas corporation (the “Company”), and _________________
(the “Executive”). The Company and the Executive are hereinafter collectively referred to
as the “Parties.”

RECITALS

     WHEREAS, the Company desires to employ the Executive on the terms and conditions, and for the
consideration, hereinafter set forth, and the Executive desires to be employed by the Company on
such terms and conditions and for such consideration;

     WHEREAS, this Agreement is intended to benefit Dawson Geophysical Company and its
subsidiaries;

AGREEMENT

     NOW, THEREFORE, for good and valuable consideration and in further consideration of the mutual
covenants and agreements contained herein, the Parties hereby covenant and agree as follows:

	1.	 	Definitions

	 	 	For purposes of this Agreement, the following definitions shall apply:

	 	(a)	 	“Affiliate” shall mean, as to the Company, each of Dawson Geophysical Company
and its subsidiaries.
	 
	 	(b)	 	“Board” shall mean the Board of Directors of the Company.
	 
	 	(c)	 	“Cause” shall mean any of the following conduct by the Executive: (A)
fraud, embezzlement, misappropriation of funds, willful or intentional misconduct or
gross negligence in connection with the business of the Company or its affiliates; (B)
commission or conviction of any felony or of any misdemeanor involving theft or moral
turpitude, or entry of a plea of guilty or nolo contendere to any felony or any
misdemeanor involving theft or moral turpitude; (C) acts of dishonesty or disloyalty
that adversely affect or could reasonably be expected to adversely affect the Company
or its affiliates in any material respect; (D) engagement in any activity that the
Executive knows or should know could materially harm the business or reputation of the
Company or its affiliates, including alcohol or substance abuse that has impaired or
could reasonably be expected to impair the ability of the Executive to perform the
Executive’s duties; (E) a material failure to adhere to requirements applicable to the
Company’s operations, published corporate codes, policies or procedures of the Company;
(F) the Executive’s failure to meet applicable performance standards as determined by
the Board from time to time; (G) the Executive’s excess absenteeism, willful or
persistent neglect of, or abandonment of his duties (other than due to illness or any
other physical condition that could reasonably be expected to result in Disability); or

 

			
	1	 	To be Dawson Geophysical Company or its
subsidiaries as applicable.

 

 

	 	 	 	(H) material breach of any contract entered into between the Executive and the
Company or an affiliate of the Company, including this Agreement. Notwithstanding
the foregoing, no event or condition described under clauses (D), (E), (F), (G) or
(H) above that is capable of being cured or corrected shall constitute Cause unless
(1) the Company gives the Executive written notice or objection to such event or
condition after the occurrence of the event or condition and (2) such event or
condition is not corrected by the Executive within 20 days after receipt of such
notice.
	 
	 	(d)	 	“Confidential Information” is defined as information the Executive
learns as a consequence of or through employment by the Company (including information
conceived, originated, discovered, or developed by the Executive), not generally known
in the trade or industry and not freely available to persons not employed by the
Company, about the Company’s or its Affiliates’ products, services, processes, and
business operating procedures, or those of any organization to whom the Company or its
Affiliates is bound by contract, including, but not limited to, trade secrets and
information relating to research, development, inventions, equipment, services,
distribution, manufacturing, purchasing, marketing, customer lists, financial data,
engineering, business opportunities or ventures and information relating to the
analysis, computation and estimation of the physical properties of three dimensional
porous media. For clarity, Confidential Information shall include all information
generated by the Executive that is derived from, contains, reflects or incorporates the
information provided as Confidential Information.
	 
	 	(e)	 	“Disability” means any event where the Executive is or becomes
physically or mentally disabled, whether totally or partially, during the Term so that
the Executive is unable to perform the essential job functions hereunder, as determined
by the Company in its good faith judgment, for: (A) a period of 90 consecutive days; or
(B) for shorter periods aggregating 120 days during any 12-month period.
	 
	 	(f)	 	“Good Reason” means: (A) the assignment to the Executive of any duties
inconsistent in any respect with the Executive’s position (including status, offices,
titles and reporting requirements), authority, duties, or responsibilities, or any
other action by Employer which results in a diminution in such position, authority,
duties, or responsibilities, excluding for this purpose an isolated, insubstantial, and
inadvertent action not taken in bad faith and which is remedied by Employer within 20
days after receipt of notice thereof given by the Executive; (B) any material reduction
in the amount or type of compensation and benefits paid to the Executive, as described
in Section 4 and 5; (C) the Company requiring the Executive to be based at any office
or location other than facilities within 50 miles of ____________2, (D) the
Company materially interfering with the Executive’s ability to fulfill the Executive’s
duties, (E) any material breach of any material contract entered into between the
Executive and the Company or an affiliate of the Company, including this Agreement or
(F) any purported termination by the Company of the Executive’s employment otherwise
than as expressly permitted by this Agreement.

 

			
	2	 	To reflect Executive’s base of operations.

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	 	(g)	 	“Non-Competition Period” is defined as:

	 	(A)	 	in the case of a termination pursuant to Section 7(a)(i) [for
Cause], Section 7(a)(iii) [without Good Reason] or Section 7(a)(vi)
[Disability], a period of one year after termination of the Executive;
	 
	 	(B)	 	in the case of a termination pursuant to Section 7(A)(ii)
[without Cause] or Section 7(A)(iv) [with Good Reason], the period beginning on
the termination of the Executive and continuing for the longer of (x) one year
or (y) the remainder of the Term; provided, however, that in the event the
Executive becomes employed during such period in a position that would be
prohibited by Section 9(b), the obligations set forth in Section 9(b) and
Section 9(c) (and only such obligations) shall terminate and the compensation
to be received by the Executive under Section 7(b)(ii) shall terminate from the
date of such employment; and
	 
	 	(C)	 	in the case of expiration of this Agreement, (i) if the Company
elects not to renew, a period of six months after termination of the Executive
for the obligations in Section 9(d), but the Executive shall have no
obligations under Section 9(b) or Section 9(c) or (ii) if the Executive elects
not to renew, a period of six months after termination of the Executive;
provided, however, that during such six month term, the Company shall continue
to pay Executive the Executive’s then-current Base salary on each applicable
payroll date.

	 	(h)	 	“Work Product” is defined as all inventions, ideas, and discoveries
(whether patentable or not), designs, products, processes, procedures, methods,
developments, formulae, techniques, analyses, drawings, notes, documents, information,
materials, improvements and all other developments, whether tangible or intangible,
including, but not limited to, computer programs and related documentation, and all
intellectual property rights therein, made, conceived, developed, or prepared, in whole
or in part, by the Executive during the Term, alone or with others, whether or not
during work hours or on the Company’s premises, which are (a) within the scope of
business operations of the Company or its Affiliates, or a reasonable or contemplated
expansion thereof, of which reasonable or contemplated expansion the Executive is or
should have been aware, (b) related to any work or project of the Company or any of its
Affiliates, present, past or contemplated, of which contemplation the Executive is or
should have been aware (c) created with the aid of the Company’s or its Affiliates’
materials, equipment or personnel, or (d) based upon information to which the Executive
has access solely as a result of or in connection with his employment with the Company.

	2.	 	Employment

	 	(a)	 	Employment by the Company. The Company hereby employs the Executive in
the capacity of _____________________, and the Executive hereby accepts such
employment, upon the terms and conditions of this Agreement.
	 
	 	(b)	 	Duties. The Executive shall devote the Executive’s best efforts to the
performance of the Executive’s duties. The Executive shall comply with all

3

 

	 	 	 	policies and procedures of the Company which are provided to the Executive. The
Executive understands and acknowledges that employment with the Company requires the
Executive’s full attention and effort. The Executive agrees that, during the Term
(as defined below), the Executive shall devote all of the Executive’s working time,
attention, knowledge and skill to the business and interests of the Company. The
Executive will not, without the express written consent of the Board, engage in any
employment or business activity other than for the Company, including but not
limited to employment or business activity which is competitive with, or would
otherwise conflict with, his employment by the Company. Further, the Executive
shall refer to the Company any business opportunity similar to the business of the
Company or its affiliates or any opportunity to perform services which comes to the
Executive’s attention, and shall accept the decision of the Company in its sole
discretion to accept or reject any such opportunity. The foregoing shall not
preclude the Executive from managing private investments, participating in industry
and/or trade groups, engaging in volunteer civic, charitable or religious
activities, serving on boards of directors of charitable not-for-profit entities or,
with the consent of the Board, serving on board of directors of other entities, in
each case as long as such activities, individually or in the aggregate, do not
materially interfere or conflict with Employee’s responsibilities to the Company.
	 
	 	(c)	 	[Service on the Board. For so long as Executive remains an employee of
the Company, the Company shall take all necessary action to cause Executive to be
nominated as a director of the Company at any meeting of shareholders for the election
of directors.]3
	 
	 	(d)	 	The Executive’s Ability to Perform. The Executive represents and
warrants that with respect to the Executive’s employment or services for the Company,
the Executive is not under any obligation, contractual or otherwise, to any other
person or entity which would preclude the Executive from entering into this Agreement
or performing the terms hereof or permit any other person or entity to obtain
substantial damages in connection with the Executive’s employment by the Company. The
Executive represents and warrants that the Executive is free to enter into the employ
of the Company and perform the terms of this Agreement.

	3.	 	Term

	 	(a)	 	Initial Term. The term of the Executive’s employment pursuant to this
Agreement (the “Initial Term”) shall begin on the Effective Date and shall
terminate at the close of business on the third anniversary of the Effective Date,
subject to earlier termination in accordance with Section 7 and the other terms,
provisions and conditions set forth in this Agreement.
	 
	 	(b)	 	Renewal Terms. At the end of the Initial Term, unless either the
Company or the Executive provides sixty (60) days’ notice of the intent not to renew
this Agreement, the Executive’s employment and this Agreement shall renew for
successive one-year terms (“Renewal Terms”).

 

			
	3	 	Provision to be applicable to Mr. Jumper and
Mr. Whitener only.

4

 

	 	(c)	 	Term. Together, the Initial Term and any Renewal Terms are defined as
the “Term.”

	4.	 	Compensation

	 	 	In consideration of the services to be rendered by the Executive pursuant to this Agreement,
including without limitation any services that may be rendered by the Executive as an
officer, director, manager or member of any committee of the Company or any of its
subsidiaries or affiliates, the Executive shall receive the following compensation and
benefits:

	 	(a)	 	Base Salary. The Company shall pay the Executive an base salary of
$___________ if annualized (the “Base Salary”), which shall be earned and
payable in accordance with the Company’s usual payroll practices. The Base Salary may
be reviewed annually by the Company, and may be adjusted upward in the Board’s sole
discretion.
	 
	 	(b)	 	Bonus. In addition to the Base Salary, the Executive may be awarded, at
the discretion of the Board for any fiscal year ending during the Term, a bonus.
Participation in any bonus, profit sharing or other plan measured shall be at the
sole discretion of the Board. Eligibility for bonuses of any kind ceases on the day
that employment terminates, regardless of when such bonuses were earned.

	5.	 	Benefits

	 	(a)	 	Reimbursed Expenses. Reasonable expenses actually incurred by the
Executive in direct conduct of the Company’s business shall be reimbursed to the
Executive to the extent they are reimbursable under the established policies of the
Company. Any such reimbursement of expenses shall be made by the Company in accordance
with its established policies (but in any event not later than the close of the
Executive’s taxable year following the taxable year in which the expense is incurred by
the Executive).
	 
	 	(b)	 	Benefits. During the Term, the Executive and where applicable the
Executive’s spouse and dependents shall be eligible to participate in the same benefit
plans or fringe benefit policies such as health, dental, life insurance, vision, and
401(k), as are offered to members of the Company’s executive management, subject to
applicable eligibility requirements and the terms and conditions of all plans and
policies
	 
	 	(c)	 	Vacation, Holidays and Paid Time Off. During the Term, the Executive
shall be entitled to paid vacation, holidays, sick leave, or other paid time off in
accordance with the most favorable plans, policies, programs and practices of the
Company then in effect for its executives.
	 
	 	(d)	 	Automobile. During the Term, the Company will provide Executive a
___________ or, at Executive’s choice, comparable automobile commensurate with
Executive’s position with the Company and pay for fuel, insurance,

5

 

	 	 	 	maintenance, repair and all other reasonable costs of such automobile. Executive
may also use the automobile for reasonable personal use.

	6.	 	Key Man Insurance

	 	 	The Company may, at its sole discretion, own (and pay for) life insurance on Executive’s
life in the name of parties as designated by the Company as the beneficiaries. The
Executive agrees that he shall, at Company’s request, submit to such medical examinations,
supply such information, and execute such documents as may be requested by the insuring
company or companies. It is agreed and understood that if Employee dies during the Term,
the full amount of the proceeds payable under any such policy will be receivable solely as
designated by the Company.

	7.	 	Termination of Employment

	 	(a)	 	Termination of Employment. The Executive’s employment with the Company
may be terminated as follows:
	 
	 	 	 	(i) Termination by the Company for Cause. The Company may, on written notice to the
Executive, immediately terminate the Executive’s employment for Cause, in which
event both this Agreement and the Executive’s employment with the Company shall
terminate as of the date provided in such notice of termination, which notice must
state the reasons for such termination.
	 
	 	 	 	(ii) Termination by the Company Without Cause. The Company may, on written notice
to the Executive, terminate the Executive’s employment other than for Cause or for
no reason, in which event both this Agreement and the Executive’s employment with
the Company shall terminate 30 days after the date of delivery of such notice of
termination.
	 
	 	 	 	(iii) Termination by the Executive Without Good Reason. The Executive may, on
written notice to the Company, terminate the Executive’s employment at any time and
for any reason, in which event both this Agreement and the Executive’s employment
with the Company shall terminate on a date specified by the Executive in such notice
of termination, which date shall be at least 30 days after the date of delivery of
such notice of termination to the Company.
	 
	 	 	 	(iv) Termination by the Executive for Good Reason. The Executive may terminate the
Executive’s employment for Good Reason after providing the Company with written
notice of the Executive’s intent to terminate the Executive’s employment and the
reason(s) therefor. The Company will have 30 days in which to cure the reason(s)
provided by the Executive. At the end of the 30-day period, if the Company has not
cured the Good Reason cause of the Executive’s termination, the Executive’s
employment will terminate following a reasonable transition period specified by the
Company not to exceed 30 days.
	 
	 	 	 	(v) Termination upon Death. The Executive’s date of death shall constitute
termination of employment and all rights to further compensation or benefits,
including bonuses, shall cease as of that date.

6

 

	 	 	 	(vi) Termination upon Disability. If the Executive becomes Disabled, the Company
may, but shall not be required to, by written notice to the Executive, terminate the
Executive’s employment with the Company, in which event this Agreement shall
terminate 30 days after the date upon which the Company shall have given notice the
Executive of its intention to terminate the Executive’s employment because of
Disability.
	 
	 	(b)	 	Effect of Termination.
	 
	 	 	 	(i) Payment Upon Termination for any Reason. In the case of a termination
of the Executive’s employment with the Company pursuant to Section 7(a), (A) on the
next regular payroll date, or sooner if required by law, the Company shall pay to
the Executive (or, in the case of death, the Executive’s estate) (1) all Base Salary
that has accrued and not been paid as of the effective date of termination in
accordance with the Company’s customary payroll schedules for salaried Executives
and (2) any employment benefits that have fully accrued and vested but have not been
paid as of the effective date of such termination in accordance with the terms of
any applicable employment benefit arrangements and applicable law and (B) all other
rights and benefits of the Executive hereunder shall terminate upon such
termination, except for (1) any right of the Executive or his dependants to continue
benefits pursuant to applicable law, (2) any rights that the Executive may have
under Section 7(b)(ii) or under Section 7(b)(iii).
	 
	 	 	 	(ii) Payment Upon Termination by the Company Without Cause or by the Executive
for Good Reason. In the case of a termination pursuant to Section 7(a)(ii) or
Section 7(a)(iv) (but not any other applicable termination provisions of this
Agreement), provided the Executive has executed and delivered (without subsequent
revocation) to the Company a release, in a form satisfactory to the Company, of all
claims against the Company arising from or associated with the Executive’s
employment by such date, the Executive shall be entitled to severance payments in an
amount equal to the greater of (A) the continuation of the Executive’s then-current
Base Salary for the remainder of the Term or (B) the continuation of the Executive’s
Base Salary for one year. The form of any release shall be specified at such time by
the Company. Any payments pursuant to this Section shall commence on the first
payroll date following the sixtieth (60th) day following the Executive’s termination
of employment, subject to the Executive’s return of the release, and shall continue
on each following payroll date through the applicable severance period.
	 
	 	 	 	(iii) Return of Company Property. Upon termination of the Executive’s
employment with the Company, the Executive (or, in the event of death, the
Executive’s estate) shall promptly deliver to the Company all of the Company’s
property in the Executive’s possession or under the Executive’s control or related
to the Company’s business, including but not limited to any vehicle, keys, records,
notes, books, maps, plans, data, memoranda, models, electronically recorded data or
software, and any computers, mobile phones and other equipment owned by the Company
(including any of the foregoing reflecting or containing any information relating to
any assets or projects in which the Company has any direct or indirect interest),
and all other Confidential

7

 

	 	 	 	Information (as defined above), and shall retain no
copies or duplicates of any such property or Confidential Information.
	 
	 	 	 	(iv) Defense of Claims. The Executive agrees that, upon the request of the
Company, the Executive will reasonably cooperate with the Company in the defense of
any claims or actions that may be made by or against the Company that relate to the
Executive’s areas of responsibility during the Executive’s employment with the
Company, except if the Executive’s reasonable interests are adverse to the Company
or its affiliate(s), as applicable, in such claim or action. The Company agrees to
pay or reimburse Employee for all of Employee’s reasonable travel and other direct
expenses incurred, or to be reasonably incurred, to comply with Employee’s
obligations under this Section, provided Employee provides reasonable documentation
of same and obtains the Company’s prior approval for incurring such expenses.
	 
	 	 	 	(v) Form of Payments. Except as expressly set forth otherwise, the Company,
in its sole discretion, may elect any method or manner of payment with respect to
any payments to be made pursuant to this Section 7, and may also require the
Executive to continue to perform the Executive’s duties or other appropriate
transition duties during the period of time after any notices required pursuant to
this Section 7 and prior to the Executive’s specified termination date.
	 
	 	 	 	(vi) Automobile Upon Termination. Upon termination of Executive’s
employment other than for Cause pursuant to Section 7(a)(i) or without Good Reason
pursuant to Section 7(a)(iii), Executive may for consideration of $10.00 purchase
the automobile referenced in Section 5(d). If the Executive’s employment terminates
without Good Reason pursuant to Section 7(a)(iii), the Executive may purchase the
automobile for blue book value or, if leased, by assuming the lease. Furthermore,
(A) if the Company owns the automobile, the Company shall transfer the title
therefor (free and clear of any liens or other encumbrances) to the Executive (along
with insurance coverages, if assignable), or (B) if Company was leasing such
automobile, Company shall assign to Executive all of its right, title and interest
in and to such lease. Such transfer or assignment shall be completed by the Company
not later than seventy-five (75) days after the end of the calendar year in which
the termination occurs.

	8.	 	Confidentiality

	 	(a)	 	Provision of Confidential Information; Acknowledgements. During the
Term of this Agreement, in order to assist the Executive with the Executive’s duties,
the Company agrees to provide the Executive with Confidential Information. The
Executive acknowledges and agrees that all Confidential Information is confidential and
a valuable, special and unique asset of the Company that gives the Company an advantage
over its actual and potential, current and future competitors. The Executive
acknowledges and agrees that, as between the Executive and the Company, the
Confidential Information is now, and will at all times remain, the exclusive property
of the Company, and the Executive has no ownership interest in any Confidential
Information. The Executive acknowledges and agrees that, as part of the Executive’s
duties under this Agreement, the Executive owes the Company a fiduciary duty to
preserve and protect all Confidential Information from unauthorized disclosure or use.
The Executive

8

 

	 	 	 	 recognizes that disclosure of the Confidential Information to
competitors, non-authorized third parties or the general public, or use of the
Confidential Information by the Executive for the Executive’s own benefit, would be detrimental
and cause irreparable harm to the Company.
	 
	 	(b)	 	Non-Disclosure of the Confidential Information. The Executive
covenants and agrees that during the Term and following the termination (for any
reason) of this Agreement, the Executive will keep secret and treat confidentially the
Confidential Information, and will not disclose any Confidential Information to any
person or entity for any purpose other than as directed by the Company in connection
with the business and affairs of the Company nor shall the Executive use any
Confidential Information for any purpose other than as directed by the Company in
connection with the business and affairs of the Company. Except in the proper
performance of his duties, the Executive will not copy, reproduce, decompile, or
reverse engineer, any Confidential Information, or remove or transmit by email or other
electronic means Confidential Information from the premises of the Company absent
specific consent. The Executive agrees that all restrictions contained in this clause
are reasonable and valid in the circumstances. This contractual confidentiality
obligation shall be in addition to, and in no way a limitation of, all such
confidentiality obligations as may exist at law or in equity.

	9.	 	Restrictive Covenants

	 	(a)	 	Consideration; Voluntary Agreement. The Company shall provide the
Executive access to the Confidential Information for use only during the Term, and the
Executive acknowledges and agrees that the Company will be entrusting the Executive, in
the Executive’s unique and special capacity, with developing the goodwill of the
Company, and in consideration thereof and in consideration of the access to
Confidential Information, has voluntarily agreed to the covenants set forth in this
Section 9. The Executive further agrees and acknowledges that the limitations and
restrictions set forth herein, including but not limited to geographical and temporal
restrictions on certain competitive activities, are reasonable and not oppressive and
are material and substantial parts of this Agreement intended and necessary to prevent
unfair competition and to protect the Confidential Information and substantial and
legitimate business interests and goodwill.
	 
	 	(b)	 	Non-Competition. During the Term and during the applicable
Non-Competition Period, the Executive agrees that the Executive will not, directly or
indirectly, acting alone or in conjunction with others, or as an employee, consultant
or independent contractor, or as partner, officer, director, shareholder, manager,
member or owner of any interest in or security of, any partnership, corporation,
limited liability company or other business entity, venture or enterprise, engage or
participate, for compensation or without compensation, in any business which is in
competition with the Company or its Affiliates as conducted at the time of termination
of the Executive’s employment by the Company, in the geographic locations where the
Company or its Affiliates does business; provided, however, the Executive may have
investments in publicly-owned companies which investments do not constitute more than
5% of the voting securities of any such company.

9

 

	 	(c)	 	Non-Solicitation of Customers. During the Term and during the
applicable Non-Competition Period, the Executive agrees that the Executive will not,
directly or indirectly, solicit any customer of the Company or its Affiliates with whom
the Executive conducted business during the Term either to purchase products or
services that are competitive to the products and services then sold by the Company
(customer defined as any person or entity for which the Company has performed services
or sold goods during the Term) or to reduce or cease business with the Company or its
Affiliates.
	 
	 	(d)	 	Non-Solicitation of Employees. During the Term and during the
applicable Non-Competition Period, the Executive agrees that the Executive will not,
directly or indirectly, hire or induce or solicit any current employee of the Company
or any Affiliate or any person who was an employee of the Company or any Affiliate
during the final 12 months of the Executive’s employment to terminate the employee’s
employment with the Company or to work for the Executive or the Executive’s employer.
	 
	 	(e)	 	Non-Disparagement. During the Term and for five years after
termination (for any reason) of the Executive’s employment, the Executive agrees to
refrain from criticizing, denigrating or speaking adversely of the Company and its
Affiliates and their respective operations and their respective executives, and
disclosing negative information about the Company or its Affiliates and their
respective operations and respective executives, management, directors, except as
required by law. During such same five-year period, the Company agrees to instruct its
senior management and the senior management of its Affiliates to refrain from
criticizing, denigrating or speaking adversely of the Executive, and disclosing
negative information about the Executive, except as required by law.
	 
	 	(f)	 	Reasonableness of Scope. The Executive represents and agrees that the
geographic scope of the restrictive covenants are necessary and reasonable in light of
the scope of the Company’s and its Affiliates’ business. The Executive further
represents and agrees that the time periods of the restrictive covenants set forth in
this Agreement are reasonable given the value of the good will, customer relationships,
Confidential Information and other tangible and intangible assets. If one or more of
the provisions of this Agreement shall for any reason be held to be excessively broad
as to scope, activity or subject matter so as to be unenforceable at law, such
provision(s) shall be construed and reformed by the appropriate judicial body by
limiting and reducing it (or them), so as to be enforceable to the maximum extent
compatible with the applicable law as it shall then appear.

	10.	 	Discoveries and Inventions

	 	(a)	 	Assignment of Work Product to the Company. The Executive assigns and
agrees to assign to the Company, without additional compensation, all the Executive’s
right, title, and interest in and to any and all Work Product and any related or
associated intellectual property. For clarity, Work Product does not have to be
subject to or eligible for federal or state patent, copyright or trademark protection
to be subject to this provision. If any such Work Product is created wholly or in part
by the Executive during the Executive’s hours of actual work for the Company, or with
the aid of the Company’s materials, equipment, or

10

 

	 	 	 	personnel, or at the premises of the Company, or resulted from or in any way were
derived or generated by performance of the Executives duties under this Agreement,
or is in any way related to or derived from the services or products the Company or
its Affiliates produces or offers, then such creation shall be deemed conclusively
to have occurred in the course of the Executive’s employment. It is recognized that
the Executive will perform the duties assigned to the Executive at times other than
the Executive’s actual working hours and the Company’s rights hereunder shall not be
diminished because the Work Product was created at such other time.
	 
	 	(b)	 	Cooperation; Grant of License. The Executive agrees to perform all
acts necessary or reasonably requested by the Company to enable the Company to learn
of, understand, protect, obtain and enforce patent or copyright rights to the Work
Product, including but not limited to, making full and immediate disclosure and
description to the Company of the Work Product, and assisting in preparation and
execution of documents required to transfer and convey the Work Product and to convey
to the Company patent, copyright or any other intellectual property protection in the
United States and any foreign jurisdiction. In the event the Company is unable to
secure the signature of the Executive to any document required to file, prosecute,
register or memorialize the assignment of any patent copyright maskwork, the Executive
irrevocably appoints the Chief Executive Officer of the Company as the Executive’s
agent and attorney in fact to act for and on behalf of and instead of the Executive to
take such actions needed to enforce and obtain the Company’s rights hereunder. To the
extent any of the Executive’s rights, title or interest to the Work Product can not be
assigned to the Company, the Executive grants and will grant an exclusive, world wide,
transferable, irrevocable, royalty-license (with rights to sublicense without consent
of the Executive) to the Company to exploit fully such Work Product. These obligations
shall continue beyond the termination of this Agreement and shall be binding upon the
Executive’s assigns, executors, administrators and other legal representatives.

	11.	 	Injunctive Relief

	 	 	The Executive acknowledges that the provisions of Sections 8, 9 and 10 are necessary for the
protection of the Company. The Company and its affiliates would be irreparably damaged in
the event any of the restrictions contained in Sections 8, 9 or 10 were not performed in
accordance with their specific terms or were to be otherwise breached. Therefore, the
Company shall be entitled to temporary restraining orders and temporary and permanent
injunction or injunctions to specifically enforce the restrictions in Sections 8, 9 or 10 in
any court, without the necessity of proving actual damages or posting a bond of any type or
size, in addition to any other remedy to which the Company may be entitled, at law or in
equity, all of which shall be cumulative and not exclusive. No failure or delay by the
Company in exercising any right, power or privilege hereunder shall operate as a waiver of
such right, power or privilege, nor shall any whole or partial exercise of any such right
power or privilege preclude any other or further exercise thereof.

11

 

	12.	 	Arbitration

	 	(a)	 	Subject to Section 12(b), any dispute, controversy or claim between the
Executive and the Company arising out of or relating to this Agreement or the
Executive’s employment with the Company will be finally settled by arbitration in
Midland, Texas before, and in accordance with the rules for the resolution of
employment disputes then in effect of, the American Arbitration Association
(“AAA”). The arbitration award shall be final and binding on both parties.
	 
	 	(b)	 	Any arbitration conducted under this Section 12 shall be heard by a single
arbitrator (the “Arbitrator”) selected in accordance with the then-applicable
rules of the AAA. The Arbitrator shall expeditiously (and, if possible, within 90 days
after the selection of the Arbitrator) hear and decide all matters concerning the
dispute. Except as expressly provided to the contrary in this Agreement, the
Arbitrator shall have the power to (i) gather such materials, information, testimony
and evidence as he or she deems relevant to the dispute before him or her (and each
party will provide such materials, information, testimony and evidence requested by the
Arbitrator, except to the extent any information so requested is subject to an
attorney-client or other privilege or other valid objection and, if the information so
requested is proprietary or subject to a third party confidentiality restriction, the
arbitrator shall enter an order providing that such material will be subject to a
confidentiality agreement), and (ii) grant injunctive relief and enforce specific
performance. The decision of the Arbitrator shall be rendered in writing, be final,
non-appealable and binding upon the disputing parties and the parties agree that
judgment upon the award may be entered by any court of competent jurisdiction; provided
that the parties agree that the Arbitrator and any court enforcing the award of the
Arbitrator shall not have the right or authority to award punitive or exemplary damages
to any disputing party.
	 
	 	(c)	 	Each side shall share equally the cost of the arbitration and bear its own
costs and attorneys’ fees incurred in connection with any arbitration, unless the
Arbitrator determines that compelling reasons exist for allocating all or a portion of
such costs and fees to the other side.
	 
	 	(d)	 	Notwithstanding Section 12(a), an application for emergency or temporary
injunctive relief by either party shall not be subject to arbitration under this
Section; provided, however, that the remainder of any such dispute (beyond the
application for emergency or temporary injunctive relief) shall be subject to
arbitration under this Section.
	 
	 	(e)	 	By entering into this Agreement and entering into the arbitration provisions of
this Section 12, THE PARTIES EXPRESSLY ACKNOWLEDGE AND AGREE THAT THEY ARE KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVING THEIR RIGHTS TO A JURY TRIAL.
	 
	 	(f)	 	Nothing in this Section 12 shall prohibit a party to this Agreement from (i)
instituting litigation to enforce any arbitration award, or (ii) joining another party
to this Agreement in a litigation initiated by a person or entity which is not a party
to this Agreement.

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	13.	 	Miscellaneous

	 	(a)	 	Notification of Restrictions to Third Parties. The Executive agrees
that during any period in which Sections 9(b), (c) or (d) of this Agreement are in
effect, if any, the Company may notify any person or entity employing or contracting
with the Executive or evidencing any intention of employing or contracting with the
Executive of the existence and provisions of this Agreement. After termination of the
Executive’s employment and during any period in which Sections 9(b), (c) or (d) of this
Agreement are in effect, if any, if the Executive enters into an employment consulting,
or independent contractor relationship with any third party which is in any way
competitive with the Company, the Executive agrees to provide the Company with written
notice of the Executive’s job responsibilities within five business days of the
Executive’s acceptance of such employment or other relationship (the “Employment
Notice”). The Employment Notice shall include (1) a description of the duties and
responsibilities of the proposed position, (2) identity of the employer(s) or
contracting entity, and (3) the territory in which the Executive will be providing
services. If the Executive fails to provide the required Employment Notice, the
Parties acknowledge and agree that the Company is entitled to presume that the
Executive’s employment or relationship violates the terms of this Agreement, and the
Company will be authorized by this Agreement to seek immediate injunctive relief as
outlined in this Agreement.
	 
	 	(b)	 	Severability. If any covenant or provision herein is finally
adjudicated to be void or unenforceable in whole or in part, it shall be reformed, or
if reformation is not possible, deleted from the remaining Agreement and shall not
affect or impair the validity of any other covenant or provision of this Agreement.
The Executive hereby agrees that all restrictions in this Agreement are reasonable and
valid.
	 
	 	(c)	 	Entire Agreement. This Agreement contains all of the terms, conditions
and agreements of the Parties with respect to the Executive’s employment by the Company
and cancels and supersedes all prior agreements and understandings between the Parties
relating to the Company’s employment and compensation of the Executive for any period
and in any capacity whatsoever. No executive or other representative of the Company
has any authority to make any representation or promise to the Executive not
specifically contained in this Agreement, and the Executive expressly acknowledges and
agrees that he has not executed this Agreement in reliance upon such representation or
promise.
	 
	 	(d)	 	Withholding and other Deductions. The Company shall have the right to
deduct from the Base Salary, other compensation payable to the Executive, and any other
payments, including severance payments, that the Company may make to the Executive
pursuant to the terms hereof, social security taxes and all federal, state, and
municipal taxes and charges as may now be in effect or which may hereafter be enacted
or required under applicable law as charges on the compensation of the Executive.
Subject to applicable law, the Executive further agrees that the Company may deduct
from the Base Salary or other compensation or payments to the Executive to satisfy any
outstanding financial obligations or debts owed to the Company, and to satisfy any
losses resulting from any unlawful activities of the Executive. Subject to applicable
law, the Company may also deduct any money advanced to the Executive as an expense
advance from the Executive’s salary or other compensation. In the event the

13

 

	 	 	 	Executive’s wages are garnished by any court of competent jurisdiction, the
Executive consents to the Company’s compliance with such order and agrees to
reimburse the Company for all costs incurred in complying therewith.
	 
	 	(e)	 	Headings; Interpretation. The section headings hereof are for
convenience only and shall not control or affect the meaning or construction or limit
the scope or intent of any of the provisions of this Agreement. Whenever the context
may require, any pronoun used in this Agreement shall include the corresponding
masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs
shall include the plural and vice versa. In addition, as used in this Agreement,
unless otherwise provided to the contrary, (i) all references to days, months or years
shall be deemed references to calendar days, months or years or (ii) any reference to a
“Section” shall be deemed to refer to a section of this Agreement.
	 
	 	(f)	 	Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given if delivered
in person or mailed, first class postage prepaid or delivered by overnight messenger
service, to the Executive at his last known home address, and to the Company addressed
to the Secretary of the Company at _________________ (delivery of such copy being a
necessary requirement for the notice, request, demand or communication to be effective)
or to such other address as the addressee hereunder may designate.
	 
	 	(g)	 	Modification; Waiver. No modification, amendment or waiver of this
Agreement shall be binding upon the Company unless executed in writing on behalf of the
Company by a person designated by the Board to sign such modification, amendment or
waiver. A waiver by any Party of any breach of this Agreement shall not constitute a
waiver of future reoccurrences of such breach, or other breaches. A waiver by any
Party of any terms, conditions, rights or obligations under this Agreement shall not
constitute a waiver of such term, condition, rights or obligation in the future. No
delay or omission by a Party to exercise any right, power or remedy shall impair or
waive any such right, power or remedy, or be construed as a waiver of any default. No
whole or partial exercise of any right, power or privilege shall preclude any other or
further exercise thereof.
	 
	 	(h)	 	Successors and Assigns. This Agreement shall be binding upon and shall
inure to the benefit of the successors and assigns of the Company, but shall not be
assignable by the Executive. The Company may, without the Executive’s consent, assign
this Agreement to any of its affiliates or to a purchaser, or any of its affiliates, of
the stock or assets of the Company. Dawson Geophysical Company shall be a third party
beneficiary of this Agreement.
	 
	 	(i)	 	Applicable Law; Venue. THIS AGREEMENT SHALL BE INTERPRETED AND
ENFORCED IN CONFORMITY WITH THE LAW OF THE STATE OF TEXAS, WITHOUT REGARD TO ANY
CONFLICTS OF LAW PROVISION THEREOF THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF
ANY OTHER JURISDICTION. UNLESS PROVIDED OTHERWISE BY THE MANDATORY VENUE PROVISIONS OF
THE STATE OF TEXAS, VENUE OF ANY LEGAL ACTION ARISING FROM OR RELATING TO THIS
AGREEMENT SHALL BE IN MIDLAND COUNTY, TEXAS.

14

 

	 	(j)	 	Section 409A.
	 
	 	 	 	(i) This Agreement is intended to provide payments that are exempt from or compliant
with the provisions of Section 409A of the Internal Revenue Code (the
“Code”) and related regulations and Treasury pronouncements (“Section
409A”), and the Agreement shall be interpreted accordingly. Notwithstanding any
provision of this Agreement to the contrary, the Parties agree that any benefit or
benefits under this Agreement that the Company determines are subject to the
suspension period under Code Section 409A(a)(2)(B) shall not be paid or commence
until a date following six months after the Executive’s termination date, or if
earlier, the Executive’s death.
	 
	 	 	 	(ii) Each payment under this Agreement is intended to be (i) excepted from Section
409A, including, but not limited to, by compliance with the short-term deferral
exception as specified in Treasury Regulation § 1.409A-1(b)(4) and the involuntary
separation pay exception within the meaning of Treasury Regulation §
1.409A-1(b)(9)(iii), or (ii) in compliance with Section 409A, including, but not
limited to, being paid pursuant to a fixed schedule or specified date pursuant to
Treasury Regulation § 1.409A-3(i)(1)(v), and the provisions of this Agreement will
be administered, interpreted and construed accordingly (or disregarded to the extent
such provision cannot be so administered, interpreted, or construed).
	 
	 	(k)	 	Survival of Obligations. The Parties expressly agree the provisions of
Sections 7 through 13 shall survive the termination of this Agreement.
	 
	 	(l)	 	Knowledge and Legal Representation. THE EXECUTIVE ACKNOWLEDGES THAT
THE EXECUTIVE HAS CAREFULLY READ THIS AGREEMENT, HAS CONSULTED WITH AN ATTORNEY OF THE
EXECUTIVE’S CHOOSING TO THE EXTENT THE EXECUTIVE DESIRES LEGAL ADVICE REGARDING THIS
AGREEMENT, AND UNDERSTANDS AND AGREES TO ALL OF THE PROVISIONS IN THIS AGREEMENT.
	 
	 	(m)	 	Counterparts. This Agreement may be executed in any number of
counterparts (including executed counterparts delivered and exchanged by facsimile
transmission) with the same effect as if the Parties had originally executed the same
document, and all counterparts shall be construed together and shall constitute the
same instrument.

[signature page follows]

15

 

     IN WITNESS WHEREOF, the Parties have hereunto executed this Agreement on the dates indicated
below.

	 	 	 	 	 	 	 

	 	 	THE EXECUTIVE:	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	[	 	]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

16

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