Document:

EX-10.1

 Exhibit 10.1 

SEPARATION AGREEMENT 
 This Separation
Agreement and Release of Claims (“Agreement”) is made by and between MARK MARGAVIO (the “Employee”) an individual, and Frank’s International, LLC, a Texas limited liability company, its subsidiaries, parents, joint
ventures, affiliates and related parties, and their respective officers, directors, shareholders, employees, agents, and representatives (collectively, “Frank’s”), as of July 3, 2014 (the “Offer Date”). 

In exchange for consideration as stated below, Employee agrees to the following terms of separation and release of claims. 

Terms of Separation 
  

	 	•	 	Effective date of termination shall be December 31, 2014. 

  

	 	•	 	If Employee signs this Agreement, does not revoke it, and abides by its terms then Frank’s will provide Employee with the following valuable consideration:

 

	 	(i)	Compensation at Employee’s current base salary through December 31, 2014 

  

	 	(ii)	Vesting as of December 31, 2014 of the unvested portion of Employee’s Executive Deferred Compensation account 

  

	 	(iii)	Vesting as of December 31, 2014 of the unvested portion of all Restricted Stock Units made the subject of the Frank’s International N.V. Restricted Stock Unit (RSU) Agreement between you and Frank’s
International N.V. dated as of August 14, 2013 

  

	 	(iv)	Frank’s will reimburse Employee for up to $10,000 in attorney fees with respect to the review of this Agreement 

Pre-Termination Status and Cooperation 
 After the date
hereof through December 31, 2014, Employee will not seek, accept or commence work on behalf of any third party other than Frank’s or any entity owned or controlled by the Mosing family, whether as an employee, consultant or in any other
capacity. In that regard, Employee will provide Frank’s with such ongoing assistance and cooperation as may be requested by Frank’s with respect to Frank’s or any entity owned or controlled by the Mosing family from time to time for
no additional consideration through December 31, 2014, and after December 31, 2014, at an hourly rate of $200 plus pre-approved expenses, billed to Frank’s monthly in 1/6 hour increments; provided that, the level of bona fide services
to be performed by Employee following December 31, 2014 shall not exceed 20% of the average level of bona fide services performed by Employee over the immediately preceding 36-month period in accordance with Treas. Reg. 1.409A-1(h)(1)(ii);
provided further that, the limitation in the preceding clause shall be applied in the aggregate over the course of an entire calendar year such that the occurrence of a single day, week or month where Employee performs services that exceed 20% of
the average level of bona fide services performed per day, week or month over the immediately preceding 36-month period shall not, standing alone, violate such clause. 

If Frank’s determines, in Frank’s reasonable discretion, that Employee either (i) is not timely and in good faith providing such assistance and
cooperation, or (ii) has engaged in work for any third party other than Frank’s or any entity owned or controlled by the Mosing family, then Frank’s shall send Employee a written notice specifying the failure to comply with this
provision and the opportunity to cure such failure within ten (10) calendar days after the date of the notice. If Employee fails to cure the failure to Frank’s satisfaction within such ten (10) day period, then Frank’s shall have
the option to immediately cease all further payments and vesting of benefits hereunder by providing further written notice to Employee. Upon Employee’s receipt of such written notice that Frank’s is ceasing further payments and vesting of
benefits, then thereafter Employee will no longer be obligated to not work for third parties or to provide assistance and cooperation to Frank’s or any entity owned or controlled by the Mosing family; provided, however, that such cessation of
further payments shall not affect Employee’s other obligations and agreements hereunder. 

 Release of Claims 

By signing this Agreement and in exchange for the consideration described above, Employee fully and completely releases and discharges Frank’s and its
directors, officers, agents, employees, shareholders, representatives and attorneys, from any and all claims, demands, causes of action, complaints, charges and liability, of any kind, known and unknown, which Employee has or might have as a result
of or in any way relating to Employee’s employment with Frank’s or the termination of such employment, (other than Frank’s agreements and obligations regarding the payment described above), including without limitation, any claims
relating to pay, executive deferred compensation plans, restricted stock unit agreements, 401K plans (other than the 401K plan in Employee’s name being administered by The Newport Group), any other fringe benefits or fringe benefit plans, or
other terms of employment; claims based on any tort, whistleblower, or wrongful discharge theory; claims based on breach of contract (express or implied), breach of covenant of good faith and fair dealing; of intentional infliction of emotional
distress, violation of public policy, defamation, invasion of privacy, impairment of economic opportunity, or any other tort; any claims for punitive, exemplary of compensatory damages; back or front pay claims; attorney’s fees or costs; claims
based on discrimination or harassment on the basis of race, color, religion, sex, national origin, age, handicap, disability, or other category protected under the Civil Rights Acts of 1866, 1871, 1964, and 1991, or any other similar federal, state,
or local constitution, regulation, law (statutory or common), or legal theory. All such claims, if any, are hereby compromised, settled, and extinguished in their entirety. 

Employee further agrees and waives any claim to reinstatement or future employment with Frank’s. 

Employee acknowledges that this release of claims is not and cannot be considered as an admission of liability on the part of Frank’s; on the contrary,
it is understood that any and all liability is expressly denied. 
 Employee covenants that Employee has not filed any claims, lawsuits or actions with any
local, state, or federal court against Frank’s and covenants not to do so at any time based on any matter covered by this release of claims. 

Confidentiality 
 Until and unless the Confidential and
Proprietary Information of Frank’s becomes public knowledge through no fault, either directly or indirectly, of Employee, Employee promises to keep confidential, and not directly or indirectly disclose, disseminate, publish, or threaten to do
the same, all Confidential and Proprietary Information gained as a result of Employee’s engagement with Frank’s. This covenant extends beyond the date of the execution of this Agreement. For purposes of this Agreement, “Confidential
and Proprietary Information” means all (i) non-public information, (ii) knowledge, (iii) data, (iv) trade secrets (i.e., anything that gives Frank’s a competitive advantage), (v) proprietary information,
(vi) confidential information, or (vii) information provided to Frank’s by its customers, suppliers, contractors, subcontractors, agents or representatives (regardless of whether Frank’s is contractually obligated to keep such
information confidential), obtained by Employee from or through Frank’s during the course of Employee’s employment with Frank’s, concerning the business or affairs of Frank’s or Frank’s customers, suppliers, contractors,
subcontractors, agents or representatives. Employee further acknowledges and covenants that all property of Frank’s in the Employee’s possession has been returned to Frank’s prior to the execution of this Agreement. In addition,
Employee agrees and acknowledges that the obligations and covenants contained in the Confidential Information Section of the Frank’s Employee Handbook remain in full force and effect and survive the execution of this Agreement. 

Non-Disparagement 
 From and after the date hereof, both
Employee and Frank’s covenant to and with the other that they will not, directly or indirectly, at any time, for any reason whatsoever, with or without cause, disseminate, disclose, divulge or in any manner whatsoever permit to be disseminated,
divulged or disclosed to any person, firm, corporation, association or other business entity, any disparaging remarks concerning the other, and with regard to Frank’s, its operations, products, services, customers, or suppliers. 

 Acknowledgment of Waiver of Claims under ADEA: 

Employee acknowledges that Employee is waiving and releasing any rights Employee may have under the Age Discrimination in Employment Act of 1967
(“ADEA”) and that this waiver and release is knowing and voluntary. Employee and Frank’s agree that this waiver and release does not apply to any rights or claims that may arise under ADEA after Effective Date (as defined below).
Employee acknowledges that the consideration given for this Agreement is in addition to anything of value to which Employee was already entitled. Employee further acknowledges that Employee has been advised by this writing that: (a) Employee
should consult with an attorney prior to executing this Agreement; (b) Employee has at least twenty-one (21) days within which to consider this Agreement (although Employee may choose to execute this Agreement earlier); (c) Employee
has seven (7) days following the execution of this Agreement to revoke it ; and (d) this Agreement shall not be effective until the revocation period has expired (the “Effective Date”). 

Breach of Agreement 
 In the event of a dispute under this
Agreement, the prevailing party shall be entitled to recover from the other party as additional damages the prevailing party’s attorney’s fees, costs and expenses incurred in enforcing such party’s rights. 

Applicable Law and Venue 
 This Agreement shall be
governed and construed in accordance with the laws of the State of Texas. Any disputes arising under this Agreement shall be resolved in the courts of Houston, Harris County, Texas, and Employee submits to the jurisdiction of such courts for
purposes of this Agreement. 
 Offer Expiration 
 If
Employee accepts this Agreement, Employee must execute the Agreement and return the original executed Agreement to Frank’s, to the attention of John Sinders, no later than 5:00 p.m., Houston time, on July 24, 2014. To revoke this
Agreement, Employee must provide written notice to John Sinders within seven (7) days from the date Employee signed this Agreement. 
 Advise to
Seek Counsel 
 Frank’s advises Employee to consult with an attorney prior to executing this Agreement regarding the terms of this waiver and
release and particularly the claims or causes of action covered by the waiver and release. 
 Employee acknowledges that Employee has reviewed and
understands the terms of this Agreement including the waiver and release provisions, and has had an opportunity to review it with Employee’s advisers, including legal counsel of Employee’s choice. Employee agrees to be bound by the terms
of this Agreement. Employee agrees and understands that the laws of the State of Texas will apply to any dispute arising out of the interpretation of this Agreement. 

 Upon execution by both parties and upon Employee’s receipt of the payment described above, this Agreement
shall be effective as of the Effective Date. 
  

			
	FRANK’S:
	
	FRANK’S INTERNATIONAL, LLC
		
	 By:
	 	 /s/ John Sinders

		 	 John Sinders,

		 	 Executive Vice President, Administration

	
	EMPLOYEE:
	
	 /s/ Mark Margavio

	 Mark Margavio

	 Date signed: July 14, 2014CHANGE
IN TERMS AGREEMENT

 

	
        Principal

        $10,000,000.00
	
        Loan Date

        03-01-2013
	
        Maturity

        03-01-2016
	
        Loan No

        155354101
	
        Call / Coll

        CLS 07 / 240
	
        Account

        600714
	
        Officer

        765
	Initials
	References in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or item. Any item above containing “***” has been omitted due to text length limitations.

 

	Borrower:	BISCO INDUSTRIES, INC.	Lender:	COMMUNITY BANK
	 	1500 N. LAKEVIEW AVENUE	 	ANAHEIM BRANCH
	 	ANAHEIM, CA 92807	 	1750 S. STATE COLLEGE BLVD.
	 	 	 	ANAHEIM, CA 92806
	 	 	 	(800) 788-9999
	 	 	 	 

 

	Principal
    Amount:  $10,000,000.00	Date
    of Agreement:  April 25, 2014

 

DESCRIPTION OF EXISTING INDEBTEDNESS.

 

A loan to Borrower evidenced by a Promissory
Note dated November 15, 2000, as modified by Change in Terms Agreements dated May 1, 2001; July 1, 2001; September 1, 2001; October
19, 2001; April 30, 2002; June 17, 2002; August 28, 2002; September 16, 2002; October 28, 2002; January 24, 2003; March 27, 2003;
June 1, 2003; October 1, 2003; December 1, 2003; February 1, 2004; May 1, 2004; June 23, 2004; August 1, 2004; February 1, 2005;
April 1, 2005; April 1, 2006; March 28, 2007; June 1, 2007; July 13, 2007; March 27, 2008, May 15, 2008; March 3, 2009; March 23,
2010; April 16, 2010; October 1, 2010; January 3, 2011; March 1, 2011; May 10, 2012; September 18, 2012 and March 26, 2013 (“Note”).

 

DESCRIPTION OF COLLATERAL.

 

A security interest in personal property assets
as described in two (2) Commercial Security Agreements each dated March 23, 2010 and a security interest in personal property assets
as described in a Commercial Security Agreement dated August 1, 2004 (“Security Agreement”).

 

DESCRIPTION OF CHANGE IN TERMS.

 

EFFECTIVE AS OF March 27, 2014 (“Effective
Date”):

 

MODIFICATION OF BUSINESS LOAN AGREEMENT. The
Business Loan Agreement dated June 1, 2007 (“Loan Agreement”) is hereby modified and amended as follows:

 

1)     The
paragraph entitled “Individual Guarantor” is hereby deleted in its entirety and replaced with the following:

 

Individual Guarantor. Borrower shall
furnish to Lender as soon as available and in any event within thirty (30) days after filing, Individual Guarantor’s federal
income tax returns and supporting schedules. Borrower shall furnish to Lender Individual Guarantor’s financial statement
annually.

 

2)     The
paragraph entitled “Tax Returns (EACO Corporation)” is hereby deleted in its entirety and replaced with the
following:

 

Tax Returns (EACO Corporation). Borrower
shall furnish to Lender as soon as available and in any event within thirty (30) days after filing, Corporate Guarantor’s
federal income tax returns and supporting schedules, prepared by a tax professional satisfactory to Lender.

 

3)     The
paragraph entitled “Effective Tangible Net Worth” is hereby deleted in its entirety and replaced with the following:

 

Effective Tangible Net Worth. Maintain
an Effective Tangible Net Worth of not less than $13,500,000.00 to be measured at the end of each fiscal quarter. The term
“Effective Tangible Net Worth” means Borrower’s total assets, less intangibles [i.e., goodwill, trademarks, patents,
copyrights, organizational expenses, and similar intangible items, but including leaseholds and leasehold improvements], less amounts
due from officers, partners, stockholders, directors, affiliates, and subsidiaries, less total liabilities, plus amounts subordinated
to Lender, as evidenced by a subordination agreement, if any. The first measurement will be as of February 28, 2014.

 

4)     The
paragraph entitled “Current Assets” is hereby deleted in its entirety and replaced with the following:

 

Current Assets. Borrower shall maintain
a minimum current assets of $25,000,000.00 on a consolidated basis measured quarterly, per GAAP, Investments in Data I/O
are to continue to be shown as non-current assets. The first measurement will be as of February 28, 2014.

 

5)     The
Affirmative Covenants of Borrower are amended to include the following covenant:

 

Profit Retention. Notwithstanding anything
to the contrary contained herein, Borrower further covenants and agrees with Lender, that a minimum of 50% of net profit after
tax will be retained in the company at fiscal year end. To be measured on an annual basis.

 

MODIFICATION OF NOTE. The Note is hereby modified
and amended as follows:

 

1)     The
maturity date of the Note is hereby extended from March 1, 2015 to March 1, 2016.

 

PAYMENT. Borrower will pay this loan in
full immediately upon Lender’s demand. If no demand is made. Borrower will pay this loan in one payment of all outstanding
principal plus all accrued unpaid interest on March 1, 2016. In addition, Borrower will pay regular monthly payments of all accrued
unpaid interest due as of each payment date, beginning June 1, 2014, with all subsequent interest payments to be due on the same
day of each month after that.

 

2)     The
provision of the Note entitled “PRIMARY BANKING RELATIONSHIP” is hereby deleted in its entirety and replaced
with the following:

 

PRIMARY BANKING RELATIONSHIP. Borrower
and Lender acknowledge and agree that Borrower now maintains or will maintain its primary banking relationship, including its primary
deposit account relationship (“Primary Banking Relationship”), with Lender. In the event Borrower ceases to maintain
its Primary Banking Relationship with Lender (as determined by Lender in its sole discretion), the interest rate set forth in this
Note shall be increased by one percent (1.00%), at Lender’s option, following a five (5) day written notice to the Borrower.
The payments due after such notice is given to Borrower shall be recalculated in an amount necessary to amortize the principal
balance for the remaining term of the loan.

 

    	 

    	 

    

 

	 	CHANGE IN TERMS AGREEMENT	 
	Loan No: 155354101	(Continued)	Page 2

 

CONTINUING VALIDITY. Except as expressly
changed by this Agreement, the terms of the original obligation or obligations, including all agreements evidenced or securing
the obligation(s), remain unchanged and in full force and effect. Consent by Lender to this Agreement does not waive Lender’s
right to strict performance of the obligation(s) as changed, nor obligate Lender to make any future change in terms. Nothing in
this Agreement will constitute a satisfaction of the obligation(s). It is the intention of Lender to retain as liable parties all
makers and endorsers of the original obligation(s), including accommodation parties, unless a party is expressly released by Lender
in writing. Any maker or endorser, including accommodation makers, will not be released by virtue of this Agreement. If any person
who signed the original obligation does not sign this Agreement below, then all persons signing below acknowledge that this Agreement
is given conditionally, based on the representation to Lender that the non-signing party consents to the changes and provisions
of this Agreement or otherwise will not be released by it. This waiver applies not only to any initial extension, modification
or release, but also to all such subsequent actions.

 

PRIOR TO SIGNING THIS AGREEMENT, BORROWER
READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT. BORROWER AGREES TO THE TERMS OF THE AGREEMENT.

 

BORROWER:

 

 

	BISCO INDUSTRIES, INC.	 
	 	 
	By:	/s/ GLEN F. CEILEY	 
	 	GLEN F. CEILEY, Chairman and CEO of BISCO

INDUSTRIES, INC.	 
	 	 	 

LASER PRO Lending, Ver. 13.3.0.024 Copr.
Harland Financial Solutions, Inc. 1997, 2014. All Rights Reserved. CA G:\CFI50\CFI\LPL\D20C.FC TR.21034 PR-38

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