Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.1

EXECUTIVE EMPLOYMENT AGREEMENT

This Executive Employment Agreement effective January 1, 2008, is between Allis-Chalmers
Energy Inc. and Mark Patterson. Certain capitalized terms used herein are defined in Section 1
below.

R E C I T A L S:

A. Company wishes to employ Executive, and Executive desires to accept employment with
Company, by entering into a written agreement to specify the terms and conditions of Executive’s
continued employment with Company;

B. Company considers the maintenance of a sound management team, including Executive,
essential to protecting and enhancing its best interests and those of its stockholders;

C. Company recognizes that the possibility of a change in control of Company may result in the
departure or distraction of management to the detriment of Company and its stockholders; and

D. Company has determined that appropriate steps should be taken to obtain and retain the
continued attention and dedication of selected members of Company’s management team to their
assigned duties without the distraction arising from the possibility of a change in control of
Company.

NOW, THEREFORE, in consideration of Executive’s past and future employment with Company and
other good and valuable consideration, the parties agree as follows:

Section 1. Definitions. As used in this Agreement, the following terms will have the
following meanings:

(a) Agreement refers to the Executive Employment Agreement represented by this
document.

(b) Cause has the meaning ascribed to it in Section 7(a)(ii).

(c) Change In Control means:

(i) The acquisition after the date hereof by any individual, entity or group,
or a Person (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act)
other than an Excluded Person, of ownership of more than 50% of either: (i) the then
outstanding shares of Common Stock (“Outstanding Common
Stock”); or (ii) the combined voting power of the then outstanding voting securities
of the Company entitled to vote generally in the election of directors (“Outstanding
Voting Securities”);

 

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(ii) Individuals who, as of the date hereof, constitute the Board of Directors
of the Company (“Incumbent Board”) cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a director
subsequent to the date hereof whose election, or nomination for election by the
Company’s stockholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, as a member of the
Incumbent Board, any such individual whose initial assumption of office occurs as a
result of either an actual or threatened election contest (as such terms are used in
Rule 14a-11 of Regulation 14A promulgated under the Securities Exchange Act of 1934)
or other actual or threatened solicitation of proxies or consents by or on behalf of
a Person other than the Board;

(iii) Approval by the stockholders of the Company of a reorganization, merger
or consolidation, in each case, unless, following such reorganization, merger or
consolidation, (i) more than 50% of, respectively, the then outstanding shares of
common stock of the corporation resulting from such reorganization, merger or
consolidation and the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding Common Stock and Outstanding Voting Securities
immediately prior to such reorganization, merger or consolidation, in substantially
the same proportions as their ownership, immediately prior to such reorganization,
merger or consolidation of the Outstanding Common Stock and Outstanding Voting
Securities, as the case may be, or at least a majority of the members of the board
of directors of the corporation resulting from such reorganization, merger or
consolidation were members of the Incumbent Board at the time of the execution of
the initial agreement providing for such reorganization, merger or consolidation; or

(iv) Approval by the stockholders of the Company of (i) a complete liquidation
or dissolution of the Company or (ii) the sale or other disposition of all or
substantially all of the assets of the Company, other than to a corporation, with
respect to which following such sale or other disposition, (1) more than 50% of,
respectively, the then outstanding shares of common stock of such corporation and
the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election for directors is then
beneficially owned, directly or indirectly, by all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
Outstanding Common Stock and Outstanding Voting Securities immediately prior to such
sale or other disposition in substantially the same proportion as their ownership,
immediately prior to such sale or other disposition, of the Outstanding Common Stock
and Outstanding Voting Securities, as the case may be; or (2) at least a majority
of the members of the board of directors of such corporation were members of the
Incumbent Board at the time of the execution of the initial agreement or action of
the Board providing for such sale or other disposition of assets of the Company.

 

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(d) Code means the Internal Revenue Code of 1986, as amended.

(e) Commencement Date has the meaning ascribed to it in Section 4.

(f) Company means Allis-Chalmers Energy Inc.

(g) Confidential Information has the meaning ascribed to it in Section 9(b).

(h) Constructively Terminated with respect to an Executive’s employment with Company
will be deemed to have occurred if Executive terminates his employment within six months
following the date on which Company:

(i) demotes Executive to a lesser position, either in title or responsibility,
than the highest position held by Executive with Company at any time during
Executive’s employment with Company after the date hereof unless the Company
reverses such demotion within 30 days after receiving written notice of such
demotion from Executive;

(ii) decreases Executive’s salary below the highest level in effect at any time
during Executive’s employment with Company or reduces Executive’s benefits and
perquisites below the highest levels in effect at any time during Executive’s
employment with Company (other than as a result of any amendment or termination of
any Executive or group or other executive benefit plan, which amendment or
termination is applicable to all executives of Company or any reduction in benefits
that Company cures within 30 days after receiving written notice of such reduction
from Executive);

(iii) requires Executive to relocate to a principal place of business more than
50 miles from the principal place of business occupied by Company on the date
hereof, unless the Company reverses such relocation within 30 days after receiving
written notice of Executive’s intention to terminate his employment in reliance on
this Section;

(iv) is subject to a Change In Control, unless Executive accepts employment
with a successor to Company; or

(v) breaches any other material term of this Agreement which is not cured by
Company within 30 days after receiving notice of such breach from Executive.

(i) Designated Industry has the meaning ascribed to it in Section 10(a)(i)(1).

(j) Determination has the meaning ascribed to such term in Section 1313(a) of the Code.

 

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(k) Disability with respect to Executive shall be deemed to exist if he meets the
definition of disability under the terms of the Company’s current long-term disability
policy (or any replacement long-term disability policy). Any refusal by Executive to submit
to a reasonable medical examination to determine whether Executive is so disabled shall be
deemed conclusively to constitute evidence of Executive’s disability.

(l) Executive refers to Mark Patterson.

(m) Excluded Person means any Person who beneficially owns more than 10% of the
outstanding shares of the Company’s Common Stock at any time prior to the date hereof.

(n) Company refers collectively to the Company and its subsidiaries and other
affiliates.

(o) Incentive Plan means the Allis-Chalmers Energy Inc. 2006 Incentive Plan, as amended
from time to time.

(p) Inventions has the meaning ascribed to it in Section 8(a).

(q) Salary has the meaning ascribed to it in Section 5(a).

(r) Separation Payment Period has the meaning ascribed to it in Section 7(b)(ii).

(s) Separation Payments has the meaning ascribed to it in Section 7(b)(ii).

Section 2. Employment. Company hereby employs Executive, and Executive hereby accepts
employment by Company, upon the terms and subject to the conditions hereinafter set forth.

Section 3. Duties. Executive shall be employed as Senior Vice President—Rental Services of
the Company and as President of Allis-Chalmers Rental Services LLC. Executive agrees to devote
substantially all of his business time as is necessary to perform his duties attendant to his
executive position with Company. Executive shall be allowed to engage in other activities as an
investor as well as participate in activities of charitable organizations of his choice so long as
they do not materially interfere with his duties for Company.

Section 4. Term. The term of employment of Executive hereunder shall commence on the date of
this Agreement and terminate on January 1, 2011.

Section 5. Compensation and Benefits. In consideration for the services of Executive
hereunder, Company shall compensate Executive as follows (except as set forth herein, Executive
acknowledges payment in full of all amounts due to him for services rendered prior to the date
hereof):

(a) Salary. Company shall pay Executive, semi-monthly in arrears with its normal
payroll procedures, a salary which is equivalent to an annual rate of $225,000 (the
“Salary”) which salary may be increased to $250,000.00 in 90 days at the discretion of the
Chief Executive Officer of the Company. The Salary may not be decreased at any time during the term of Executive’s employment hereunder. Any increase, except
the increase described in the preceding sentence, in Salary shall be in the sole discretion
of the Compensation Committee of the Board of Directors of the Company.

 

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(b) Management Incentive Bonus. Executive shall be entitled to receive a bonus in an
amount up to 100% of his Salary on an annual basis upon meeting the budgeted EBITDA goals as
determined by the Chief Executive Officer of the Company and the Compensation Committee.
Such bonus shall be paid annually within 30 days after the completion of the Company’s
audited financial statements for each year. Executive shall also be eligible to receive
from Company such additional annual management incentive bonuses as may be provided in
management incentive bonus plans adopted from time to time by Company.

(c) Vacation. Executive shall be entitled to three (3) weeks paid vacation per year.
Unless otherwise approved by the Compensation Committee of the Board of Directors of the
Company, a maximum of ten days accrued vacation not taken in any calendar year shall be
carried forward and may be used in the next subsequent calendar year. Executive shall
schedule his paid vacation to be taken at times which are reasonably and mutually convenient
to both Company and Executive.

(d) Insurance Benefits. Company shall provide accident, health, dental, disability and
life insurance for Executive under the group accident, health, dental, disability and life
insurance plans as may be maintained by Company for its full-time, salaried Executives from
time to time.

(e) Car Allowance. The Executive will be paid a $1,000 per month car allowance during
the term of this Agreement.

(f) Sign on Bonus. The Company shall pay Executive $60,000.00 upon execution of this
Agreement.

Section 6. Expenses. The parties anticipate that in connection with the services to be
performed by Executive pursuant to the terms of this Agreement, Executive will be required to make
payments for travel, entertainment of business associates and similar expenses. Company shall
reimburse Executive for all reasonable expenses of types authorized by Company and incurred by
Executive in the performance of his duties hereunder, consistent with past practices. Executive
shall comply with such reporting requirements with respect to expenses as Company may establish
from time to time.

Section 7. Termination.

(a) General. Executive’s employment hereunder shall commence on the Commencement Date
and continue until the end of the term specified in Section 4, except that the employment of
Executive hereunder shall terminate prior to such time in accordance with the following:

 

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(i) Death or Disability. Upon the death of Executive during the term of his
employment hereunder or, at the option of Company, in the event of Executive’s
Disability, upon 30 days’ notice to Executive.

(ii) For Cause. For “Cause” immediately upon written notice by Company to
Executive. A termination shall be for Cause if:

(1) Executive commits a criminal act involving dishonesty or moral
turpitude; or

(2) Executive commits a material breach of any of the covenants, terms
and provisions hereof or fails to obey written directions delivered to
Executive by the Company’s President or Chief Executive Officer which are
not inconsistent with Executive’s rights under this Agreement.

(iii) Without Cause. Without Cause upon notice by the Board of Directors to
Executive or upon notice by Executive to the Board if Executive has been
Constructively Terminated.

(b) Severance Pay.

(i) Termination Upon Death or Disability or For Cause. Executive shall not be
entitled to any severance pay or other compensation upon termination of his
employment pursuant to Section 7(a)(i) or (ii) except for his Salary earned but
unpaid as of the date of termination, unpaid expense reimbursements under Section 6
for expenses incurred in accordance with the terms hereof prior to termination, and
compensation for accrued, unused vacation as of the date of termination.

(ii) Termination Without Cause. In the event Executive’s employment hereunder
is terminated pursuant to Section 7(a)(iii), Company shall pay Executive Separation
Payments as Executive’s sole remedy in connection with such termination.
“Separation Payments” are payments made at the semi-monthly rate of Executive’s then
current salary in effect immediately preceding the date of termination. Separation
Payments shall be made for the lesser of one year following termination of
employment or the remaining term of this Agreement (the “Separation Payment
Period”), and shall be paid by Company in equal semi-monthly payments in arrears or
in accordance with its then-current normal payroll procedure, provided that
Company’s obligation to make Separation Payments shall be reduced by any amounts
earned by Executive for services during the Separation Payment Period. Company
shall also pay Executive his Salary earned but unpaid as of the date of termination,
unpaid expense reimbursements under Section 6 for expenses incurred in accordance
with the terms hereof prior to termination, and compensation for accrued, unused
vacation as of the date of termination.

Section 8. Inventions; Assignment.

 

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(a) Inventions Defined. All rights to discoveries, inventions, improvements, designs
and innovations (including all data and records pertaining thereto) that relate to the
business of Company, whether or not patentable, copyrightable or reduced to writing, that
Executive may discover, invent or originate during the term of his employment hereunder, and
for a period of six months thereafter, either alone or with others and whether or not during
working hours or by the use of the facilities of Company (“Inventions”), shall be the
exclusive property of Company. Executive shall promptly disclose all Inventions to Company,
shall execute at the request of Company any assignments or other documents Company may deem
necessary to protect or perfect its rights therein, and shall assist Company, at Company’s
expense, in obtaining, defending and enforcing Company’s rights therein. Executive hereby
appoints Company as his attorney-in-fact to execute on his behalf any assignments or other
documents deemed necessary by Company to protect or perfect its rights to any Inventions.

(b) Covenant to Assign and Cooperate. Without limiting the generality of the
foregoing, Executive hereby assigns and transfers to Company the world-wide right, title and
interest of Executive in the Inventions. Executive agrees that Company may apply for and
receive patent rights (including Letters Patent in the United States) for the Inventions in
Company’s name in such countries as may be determined solely by Company. Executive shall
communicate to Company all facts known to Executive relating to the Inventions and shall
cooperate with Company’s reasonable requests in connection with vesting title to the
Inventions and related patents exclusively in Company and in connection with obtaining,
maintaining and protecting Company’s exclusive patent rights in the Inventions.

(c) Successors and Assigns. Executive’s obligations under this Section 8 shall inure
to the benefit of Company and its successors and assigns and shall survive the expiration of
the term of this Agreement for such time as may be necessary to protect the proprietary
rights of Company in the Inventions.

Section 9. Confidential Information.

(a) Acknowledgment of Proprietary Interest. Executive acknowledges the proprietary
interest of Company in all Confidential Information. Executive agrees that all Confidential
Information learned by Executive during his employment with Company or otherwise, whether
developed by Executive alone or in conjunction with others or otherwise, is and shall remain
the exclusive property of Company. Executive further acknowledges and agrees that his
disclosure of any Confidential Information will result in irreparable injury and damage to
Company.

(b) Confidential Information Defined. “Confidential Information” means all
confidential and proprietary information of Company, including without limitation (i)
information derived from reports, investigations, experiments, research and work in
progress, (ii) methods of operation, (iii) market data, (iv) proprietary computer programs
and codes, (v) drawings, designs, plans and proposals, (vi) marketing and sales programs,
(vii) client lists, (viii) historical financial information and financial projections, (ix)
pricing formulae and policies, (x) all other concepts, ideas, materials and information prepared or performed for or by Company and (xi) all
information related to the business, products, purchases or sales of Company or any of its
suppliers and customers, other than information that is publicly available.

 

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(c) Covenant Not To Divulge Confidential Information. Company is entitled to prevent
the disclosure of Confidential Information. As a portion of the consideration for the
employment of Executive and for the compensation being paid to Executive by Company,
Executive agrees at all times during the term of his employment hereunder and thereafter to
hold in strict confidence and not to disclose or allow to be disclosed to any person, firm
or corporation, other than to his professional advisors (who have the obligation to maintain
the confidentiality of such information) and to persons engaged by Company to further the
business of Company, and not to use except in the pursuit of the business of Company, the
Confidential Information, without the prior written consent of Company.

(d) Return of Materials at Termination. In the event of any termination or cessation
of his employment with Company for any reason, Executive shall promptly deliver to Company
all documents, data and other information derived from or otherwise pertaining to
Confidential Information. Executive shall not take or retain any documents or other
information, or any reproduction or excerpt thereof, containing or pertaining to any
Confidential Information.

Section 10. Noncompetition.

(a) Executive understands that the Confidential Information and Executive’s work and
experience with Company has and will continue to enhance Executive’s value not only to
Company, but also to its competitors, and that the nature of the Confidential Information
to which Executive shall and will have access will make it difficult, if not impossible,
for Executive to work for a competitor or for any other company which competes with the
Company’s business, and for whom Executive, while employed by Company, has performed
services within twenty four months prior to the date of Executive’s termination without
disclosing or utilizing the Confidential Information to which he has had access during
the course of Executive’s employment. Executive further acknowledges and agrees that
Company’s agreement to impart to and to provide Executive with access to its Confidential
Information is ancillary to and contingent upon Executive’s agreement and that he will
not during Executive’s employment and for a period of two years immediately following
Executive’s last day of employment with Company or two years from the date of any court
order enforcing all or part of this Agreement, whichever is later (the “Non-Compete
Period”):

(i) carry on, initiate or have any ownership interest (directly or indirectly)
in any business that services, or distributes services similar to those of Company,
successors or assigns or that otherwise competes with Company, successors or assigns
provided that this provision shall not apply to the ownership by Executive of less
than 5% of a class of publicly traded equity securities;

 

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(ii) become employed by, derive benefit from or otherwise provide services for
compensation (whether as an owner, partner, consultant, employee or otherwise) or
divert Company’s business to any person or entity that is a Major Competitor (as
defined below) of Company or any other business in which Company maintains customers
or engages in business and for whom Executive, while employed by Company, has
performed services within twenty four months prior to the date of Executive’s
separation; or

(iii) contact, solicit, or divert (directly or indirectly), for the purpose of
attempting to enter into a business relationship related to the distribution or
services provided by Company or its subsidiaries, successors or assigns any customer
with whom Company has had a contractual relationship during the two year period
prior to Executive’s last day of employment with Company.

(b) Company’s business includes, without limitation, providing rental equipment to
the oil and gas industry. This description of the business, both actual and intended,
is not intended to be limiting. The business will continue to grow and evolve and the
range of services and the ways of providing services will continue to be enhanced and
supplemented.

Notwithstanding the foregoing, in the event that Executive is terminated pursuant to
Section 7(a)(iii), then the covenants regarding non-competition in this Section 10(a)
shall not apply to Executive as a result of termination of employment under Section
7(a)(iii).

(c) If any part of this provision is held unenforceable or invalid, the remaining
parts thereof shall continue to be enforceable.

(d) Executive acknowledges and agrees that Executive’s signing of and compliance is
a condition of Executive’s employment. Executive acknowledges and agrees that the scope
of this Agreement and promises herein are reasonable as to time, area and scope of
activity restrained and are necessary to protect Company’s legitimate business interests.
Specifically, Executive has considered this Agreement and the promises Executive has
made in light of the benefits that Executive has and will continue to obtain and has
concluded that the promises and agreements leave Executive with a reasonable number and
variety of permitted avenues for engaging in employment in a number of locations and a
number of occupations during the period of restriction. If the provisions of this
Section 10 pertaining to time, geographic area, and scope are deemed unenforceable by a
court of competent jurisdiction, then such provision shall include the maximum time,
geographic area, and scope which a court of competent jurisdiction determines to be
reasonable, valid, and enforceable. To the extent that the court permits bluepenciling
of the non-competition agreement, the parties intend that the court will take all action
necessary to revise it and those provisions necessary to it so as to create a binding and
enforceable provision.

 

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(e) Major Competitor shall include, without limitation, (i) all entities which are
in the same or a similar business to that of Company, its affiliates, successors or
assigns and/or which offer a service and/or product the same or similar to any service
and/or product offered or in the process of being developed or offered by Company, its
subsidiaries, affiliates, successors or assigns and (ii) all of the following entities
and their respective successors in interest:

Weatherford International.

Quail Oil Tools

RPC Rental Group

Knight Rental Tools

Section 11. General.

(a) Notices. All notices and other communications hereunder shall be in writing or by
written telecommunication, and shall be deemed to have been duly given upon delivery if
delivered personally or via written telecommunication, or five days after mailing if mailed
by certified mail, return receipt requested or by written telecommunication, to the relevant
address set forth below, or to such other address as the recipient of such notice or
communication shall have specified to the other party in accordance with this Section 11(a):

	 	 	 
	If to Company, to:
 

	 	If to Executive:
 
	Allis-Chalmers Energy Inc.

	 	Mark Patterson
	5075 Westheimer, Suite 890

	 	16627 Avenfield Rd.
	Houston, Texas 77056

	 	Tomball, Texas 77377
	Attn: Chief Executive Officer
	 	 

(b) Withholding. All payments required to be made to Executive by Company under this
Agreement shall be subject to the withholding of such amounts, if any, relating to federal,
state and local taxes as may be required by law.

(c) Equitable Remedies. Each of the parties hereto acknowledges and agrees that upon
any breach by Executive or Company of his or its obligations hereunder, Company and
Executive shall have no adequate remedy at law and accordingly shall be entitled to specific
performance and other appropriate injunctive and equitable relief.

(d) Severability. If any provision of this Agreement is held to be illegal, invalid
or unenforceable, such provision shall be fully severable, and this Agreement shall be
construed and enforced as if such illegal, invalid or unenforceable provision never
comprised a part hereof, and the remaining provisions hereof shall remain in full force and
effect and shall not be affected by the illegal, invalid or unenforceable provision or by
its severance herefrom. Furthermore, in lieu of such illegal, invalid or unenforceable
provision, there shall be added automatically as part of this Agreement a provision as similar in its terms to such illegal, invalid or unenforceable provision
as may be possible and be legal, valid and enforceable.

 

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(e) Waivers. No delay or omission by either party in exercising any right, power or
privilege hereunder shall impair such right, power or privilege, nor shall any single or
partial exercise of any such right, power or privilege preclude any further exercise thereof
or the exercise of any other right, power or privilege.

(f) Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original, and all of which together shall constitute one and the
same instrument.

(g) Captions. The captions in this Agreement are for convenience of reference only
and shall not limit or otherwise affect any of the terms or provisions hereof.

(h) Reference to Agreement. Use of the words “herein,” “hereof,” “hereto,” “hereunder”
and the like in this Agreement refer to this Agreement only as a whole and not to any
particular section or subsection of this Agreement, unless otherwise noted.

(i) Binding Agreement. This Agreement shall be binding upon and inure to the benefit
of the parties and shall be enforceable by the personal representatives and heirs of
Executive and the successors and assigns of Company. This Agreement may be assigned by the
Company or any Company to any Company or, subject to Section 7(b)(iii), to any successor to
all or substantially all of the Company’s business as a result of a merger, consolidation,
sale of stock or assets, or similar transaction; provided that in the event of any such
assignment, the Company shall remain liable for all of its obligations hereunder and shall
be liable for all obligations of all such assignees hereunder. If Executive dies while any
amounts would still be payable to him hereunder, such amounts shall be paid to Executive’s
estate. This Agreement is not otherwise assignable by Executive.

(j) Entire Agreement. This Agreement contains the entire understanding of the
parties, supersedes all prior agreements and understandings relating to the subject matter
hereof and may not be amended except by a written instrument hereafter signed by each of the
parties hereto.

(k) Governing Law. This Agreement and the performance hereof shall be construed and
governed in accordance with the laws of the State of Texas, without regard to its choice of
law principles.

(l) Gender and Number. The masculine gender shall be deemed to denote the feminine or
neuter genders, the singular to denote the plural, and the plural to denote the singular,
where the context so permits.

 

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Section 12. Section 409A.

(a) Section 409A Compliance. Executive and Company agree that this Agreement is
intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended
(“Section 409A”) and that any ambiguous provision will be construed in a manner that will
result in treatment of the relevant portions of this Agreement as a nonqualified deferred
compensation plan that complies with or is exempt from Section 409A.

(b) Specified Employees. If Executive is a “specified employee,” as such term is
defined in Section 409A and determined as described below in this Section 13(b), any
payments of amounts which are deferred compensation subject to the provisions of Section
409A that are payable as a result of Executive’s termination (other than death) shall not be
payable before the earliest of (i) the date that is six months after Executive’s
termination, (ii) the date of Executive’s death, or (iii) the earliest date that otherwise
complies with the requirements of Section 409A. This Section 13(b) shall be applied by
accumulating all payments that otherwise would have been paid within six months of
Executive’s termination and paying such accumulated amounts at the earliest date which
complies with or is exempt from the application of the requirements of Section 409A.
Executive shall be a “specified employee” for the twelve-month period beginning on April 1
of a year if Executive is a “key employee” as defined in Section 416(i) of the Internal
Revenue Code (without regard to Section 416(i)(5)) as of December 31 of the preceding year
or using such specified employee identification dates as designated by the Compensation
Committee in accordance with Section 409A and in a manner that is consistent with respect to
all of Company’s nonqualified deferred compensation plans. For purposes of determining the
identity of specified employees, the Compensation Committee may establish procedures as it
deems appropriate in accordance with Section 409A.

Executed February 21, 2008.

	 	 	 	 	 
	 	 	ALLIS-CHALMERS ENERGY INC.
	 
	 	 	 	 
	 

	 	By
	 	/s/ Munawar H. Hidayatallah
	 

	 	 	 	 
	 

	 	 	 	Munawar H. Hidayatallah, Chief Executive Officer
	 
	 	 	 	 
	 

	 	 	 	EXECUTIVE
	 
	 	 	 	 
	 

	 	 	 	/s/ Mark Patterson
	 

	 	 	 	 
	 

	 	 	 	Mark Patterson

 

-12-Filed by Bowne Pure Compliance

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

This Employment Agreement (this “Agreement”), by and between Global Cash Access, Inc., a
Delaware corporation (the “Company”) and wholly-owned subsidiary of Global Cash Access Holdings,
Inc., a Delaware corporation (“GCA Holdings”), and George Gresham (“Executive”), is made as of
February 25, 2008 (the “Effective Date”).

R E C I T A L S

A. The Company desires assurance of the association and services of Executive in order to
retain Executive’s experience, skills, abilities, background and knowledge, and is willing to
engage Executive’s services on the terms and conditions set forth in this Agreement.

B. Executive desires to be in the employ of the Company, and is willing to accept such
employment on the terms and conditions set forth in this Agreement.

C. Company and Executive wish to enter into an employment relationship with a written
employment agreement intended to supersede all other written and oral representations regarding
Executive’s employment with Company.

AGREEMENT

NOW, THEREFORE, based on the foregoing recitals and in consideration of the commitments set
forth below, Executive and the Company agree as follows:

1. Position, Duties, Responsibilities

1.1. Position. The Company hereby employs Executive to render services to the Company
in the position of Executive Vice President and Chief Financial Officer reporting to the Chief
Executive Officer of the Company, commencing on the Effective Date. The Company’s employment of
Executive hereunder is contingent upon Executive successfully completing a drug screen and
background investigation. The duties of this position shall include such duties and
responsibilities as are reasonably assigned to Executive by the Chief Executive Officer or Board of
Directors, including but not limited to those customarily performed by chief financial officers of
similarly situated corporations. Executive agrees to serve in a similar capacity for the benefit
of GCA Holdings and any of the Company’s direct or indirect, wholly-owned or partially-owned
subsidiaries or affiliates. Additionally, Executive shall serve in such other capacity or
capacities as the Chief Executive Officer or Board of Directors may from time to time prescribe.
During his employment by the Company, Executive shall, subject to Section 1.2, devote his full
energies, interest, abilities and productive time to the proper and efficient performance of his
duties under this Agreement.

 

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1.2. Other Activities. Except upon the prior written consent of the Board of
Directors, Executive will not (i) accept any other full- or part-time employment, or (ii) engage,
directly or indirectly, in any other business activity (whether or not pursued for pecuniary
advantage) that is or may be in conflict with, or that might place Executive in a conflicting position to that of, the Company. Notwithstanding the foregoing, Executive shall be permitted
to engage in occasional charitable activities outside the scope of his employment with the Company
so long as such activities (A) do not conflict with the actual or proposed business of the Company
or any of its subsidiaries or affiliates, and (B) do not affect the performance of his duties
hereunder. In addition, subject to the prior written consent of the Chief Executive Officer or
Board of Directors of the Company and subject to Executive’s fiduciary duties to the Company,
Executive shall be permitted to serve as a director of other corporations provided that their
businesses are not competitive with the actual or proposed business of the Company or any of its
subsidiaries or affiliates and provided further that Executive’s service as a director of such
other corporations does not interfere with his performance of his duties hereunder. Any such prior
written consent may be subsequently revoked in the event that the Chief Executive Officer or Board
of Directors determines, in good faith, that Executive’s position as a director of any such other
corporation has developed into a conflict of interest.

1.3. Location. Executive’s principal place of employment shall be at the Company’s
corporate headquarters, which is located in Las Vegas, Nevada on the date of this Agreement. For
the first six (6) months of Executive’s employment with the Company, the Company shall reimburse
Executive for all reasonable out-of-pocket expenses that he incurs in the course of commuting from
a residence outside of the Las Vegas metropolitan area, including weekly airfare, a furnished
apartment in the Las Vegas metropolitan area, rental car, and meal allowance. In addition, during
each of the first six (6) months of Executive’s employment with the Company, the Company shall
reimburse Executive for all reasonable out-of-pocket expenses that his spouse and children incur in
the course of traveling to the Las Vegas metropolitan area not more frequently than once per month
for the purpose of preparing for the relocating of Executive’s principal residence to the Las Vegas
metropolitan area. Such reimbursements shall be in accordance with the Company’s travel policies.
The Company will also reimburse Executive for all pre-approved documented expenses incurred in the
course of relocating his principal residence to the Las Vegas metropolitan area, including expenses
incurred in connection with the sale of Executive’s current residence and expenses incurred in
connection with the purchase of a residence in the Las Vegas metropolitan area, in all cases
consistent with the relocation expense reimbursement guidelines previously provided by the Company
to Executive.

1.4. Proprietary Information. Executive recognizes that his employment with the
Company will involve contact with information of substantial value to the Company, which is not
generally known in the trade, and which gives the Company an advantage over its competitors who do
not know or use it. As a condition precedent to Executive’s employment by the Company, Executive
agrees to execute and deliver to the Company, concurrent with his execution and delivery of this
Agreement, a copy of the “Employee Proprietary Information and Inventions Agreement” attached
hereto as Exhibit A.

1.5. Regulatory Approval. Due to the nature of the Company’s business and Executive’s
position with the Company, Executive may also be required to complete applications required by
various gaming regulatory, tribal, state or other international governments in whose jurisdiction
the Company and its affiliates conduct business, as well as other applications that may be required
by such regulatory authorities with jurisdiction over the

 

2

 

Company and its affiliates. Such applications are generally in addition to normal credit,
reference and background investigation for employment. Such applications may require complete
disclosure of personal and financial information, criminal convictions or arrests (expunged or not)
and business associations. As an ongoing condition of Executive’s employment, Executive must be
able to satisfy the licensing process and obtain appropriate gaming and other regulatory licenses.

2. Compensation of Executive

2.1. Base Salary. In consideration of the services to be rendered under this
Agreement, while employed by the Company, Company shall pay Executive an initial base annual salary
of three hundred seventy five thousand dollars ($375,000), less standard deductions and
withholdings, payable in regular periodic payments in accordance with Company payroll policy. Such
salary shall be prorated for any partial month of employment on the basis of a 30-day fiscal month.
Such base salary shall be subject to annual review by the Board of Directors commencing on January
1, 2009.

2.2. Signing Bonus. Upon the commencement of Executive’s employment hereunder,
Executive shall be paid a one-time bonus of $100,000 (the “Payment”), together with an additional
amount (the “Gross-Up Payment”) such that the net amount retained by Executive after deduction of
any federal, state and local income and employment taxes imposed upon the Gross-Up Payment shall be
equal to the Payment. For purposes of determining the amount of the Gross-Up Payment, Executive
shall be deemed to pay federal income tax and employment taxes at the highest marginal rate of
federal income and employment taxation and state and local income taxes at the highest marginal
rate of taxation in the state and locality of Executive’s residence (or, if greater, the state and
locality in which Executive is required to file a nonresident income tax return with respect to the
Payment), net of the maximum reduction in federal income taxes that may be obtained from the
deduction of such state and local taxes. If, during the first year of Executive’s employment
hereunder, Executive terminates his employment other than for Good Reason or the Company terminates
Executive’s employment for Cause, Executive shall, within five (5) days of such termination, repay
to the Company all amounts paid under this Section 2.2.

2.3. Bonus. For each full fiscal year of Executive’s employment with the Company,
Executive shall be eligible for a discretionary bonus in an amount of up to seventy-five percent
(75%) of his then current base salary, with a target amount equal to fifty percent (50%) of his
then current base salary, the exact amount of such bonus to be determined by the Board of Directors
based on the measurement of certain performance criteria or goals. One-half of the amount of such
bonus shall be based upon performance criteria or goals relating to Executive’s organization within
the Company as are mutually agreed to by Executive and the Company during the first quarter of such
fiscal year and the other half of which shall be based upon the Company’s earnings per share during
such fiscal year.

2.4. Stock Option. Concurrently herewith, the Board of Directors of GCA Holdings has
approved the grant to Executive of an option to purchase 350,000 shares of GCA Holdings’ common stock
pursuant to its 2005 Stock Incentive Plan (the “Plan”) and Notice of Stock Option Award
and Stock Option Award Agreement to be entered into by and between
Executive and GCA Holdings in substantially the form attached hereto as Exhibit B (the
“Stock Option Agreement”).

 

3

 

2.5. Benefits. Executive shall be entitled to participate in the Company’s group
medical, dental, life insurance, 401(k), deferred compensation or other benefit plans and programs
on the same terms and conditions as other members of the Company’s senior executive management,
beginning on March 1, 2008. Executive shall be provided such perquisites of employment, including
paid time off as are provided to all other members of the Company’s senior executive management.
Executive shall be entitled to reimbursement of all reasonable expenses incurred by Executive in
the performance of his duties hereunder, in accordance with the policies and procedures established
by the Company from time to time, and as may be amended from time to time. In addition, Executive
shall be entitled to reimbursement of certain medical expenses under the Company’s Exec-u-care
coverage on the same terms as other members of the Company’s senior executive management.

3. Employment At Will

Company or Executive may terminate Executive’s employment with Company at any time for any
reason, including no reason at all, notwithstanding anything to the contrary contained in or
arising from any statements, policies, or practices of Company relating to the employment,
discipline, or termination of its employees. This at-will employment relationship cannot be
changed except in a writing executed on behalf of the Board of Directors. This Section 3 shall
survive any termination or expiration of this Agreement.

4. Termination of Employment

4.1. Termination by Executive. Executive may terminate his employment upon notice to
the Company. In the event that Executive elects to terminate his employment other than for Good
Reason (as defined below), the Company shall pay Executive all base salary due and owing and all
other accrued but unpaid benefits (e.g., accrued vacation) through the last day actually worked and
thereafter the Company’s obligations under this Agreement shall terminate.

4.2. Termination by the Company for Cause. In the event that the Company terminates
Executive’s employment for Cause, the Company shall pay Executive all base salary due and owing and
all other accrued but unpaid benefits (e.g., accrued vacation) through the last day actually worked
and thereafter the Company’s obligations under this Agreement shall terminate. For the purposes of
this Agreement, termination shall be for “Cause” if (i) Executive refuses or fails to act in
accordance with any lawful order or instruction of the Chief Executive Officer or Board of
Directors, and such refusal or failure to act has not been cured within five (5) days of written
notice from the Chief Executive Officer or Board of Directors of such disobedience, (ii) Executive
fails to devote reasonable attention and time during normal business hours to the business affairs
of the Company or Executive is determined by the Chief Executive Officer or Board of Directors to
have been unfit (e.g., denied any license, permit or qualification required by any gaming regulator
or found unsuitable by any gaming

 

4

 

regulator) (other than as a result of an Incapacity), unavailable for service (other than as a
result of an Incapacity) or grossly negligent in connection with the performance of his duties on
behalf of the Company, which unfitness, unavailability or gross negligence has not been cured
within five (5) days of written notice from the Chief Executive Officer or Board of Directors of
the same; (iii) Executive is determined by the Chief Executive Officer or Board of Directors to
have committed a material act of dishonesty or willful misconduct or to have acted in bad faith to
the material detriment of the Company in connection with the performance of his duties on behalf of
the Company; (iv) Executive is convicted of a felony or other crime involving dishonesty, breach of
trust, moral turpitude or physical harm to any person, or (v) Executive materially breaches any
agreement with the Company which material breach has not been cured within five (5) days written
notice from the Chief Executive Officer or Board of Directors of the same. For purposes of this
Agreement, the term “without Cause” shall mean termination of Executive’s employment for reasons
other than for “Cause.”

4.3. Termination by the Company without Cause or Termination by Executive for Good
Reason. In the event that the Company terminates Executive’s employment without Cause or
Executive terminates his employment for Good Reason, the Company shall pay Executive all base
salary due and owing and all other accrued but unpaid benefits (e.g., accrued vacation) through the
last day actually worked, and Executive shall be entitled to receive the severance payments and
benefits set forth below in this Section 4.3; provided, however, that such severance and benefits
are conditioned on Executive’s execution and non-revocation of a release agreement, the form of
which is attached hereto as Exhibit C, and thereafter the Company’s obligations under this
Agreement shall terminate. For the purposes of this Agreement, termination shall be for “Good
Reason” if (i) there is a material diminution of Executive’s responsibilities with the Company, or
a material change in the Executive’s reporting responsibilities or title, in each case without
Executive’s consent; (ii) there is a reduction by the Company in the Executive’s annual base salary
then in effect without Executive’s consent; or (iii) Executive’s principal work location is
relocated outside of the Las Vegas, Nevada metropolitan area without Executive’s consent.
Executive agrees that he may be required to travel from time to time as required by the Company’s
business and that such travel shall not constitute grounds for Executive to terminate his
employment for Good Reason.

4.3.1. Base Salary Continuation. The Company shall continue to pay to Executive his
then-current base annual salary for a period of twelve (12) months (the “Salary Continuation
Period”). Such salary continuation shall be subject to standard deductions and withholdings and
shall be payable in regular periodic payments in accordance with Company payroll policy. The
Company may discontinue such salary continuation in the event that Executive breaches any of the
provisions of Sections 6 or 7.

4.3.2. Target Bonus. In the event that the termination occurs after the first
anniversary of the Effective Date, the Company shall also pay to Executive, subject to standard
deductions and withholdings, a bonus in the amount of fifty percent (50%) of his then-current base
salary, payable in equal installments concurrent with the salary continuation payments pursuant to
Section 4.3.1.

 

5

 

4.3.3. Vesting of Stock Option. Shares subject to the stock option described in
Section 2.3 shall vest in accordance with and subject to the terms of the Stock Option Agreement.

4.3.4. Group Medical Coverage. The Company shall, following the Executive’s timely
election, provide the Executive with continued coverage for the Salary Continuation Period under
the Company’s group health insurance plans in effect upon termination of Executive’s employment
without Cause or for Good Reason in accordance with the provisions of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (“COBRA”), at no cost to Executive.

4.4. Termination for Incapacity. In the event that Executive suffers an Incapacity
during the term of his employment hereunder, the Company may elect to terminate Executive’s
employment pursuant to this Section 4.4. In such event, the Company shall pay Executive all base
salary due and owing and all other accrued but unpaid benefits (e.g., accrued vacation) through the
date on which an Incapacity is determined to exist (the “Determination Date”). Thereafter the
Company’s obligations under this Agreement shall terminate; provided, however, that nothing
contained in this Agreement shall limit Executive’s rights to payments or other benefits under any
long-term disability plans of the Company in which Executive participates, if any. For the
purposes of this Agreement, Executive shall be deemed to have suffered an “Incapacity” if Executive
shall, due to illness or mental or physical incapacity, be unable to perform the duties and
responsibilities required to be performed by him on behalf of the Company for a period of at least
180 days.

4.5. Termination upon Death. In the event that Executive dies during the term of his
employment hereunder, Executive’s employment shall be deemed to have terminated upon the date of
death. In such event, the Company shall pay Executive’s estate all base salary due and owing and
all other accrued but unpaid benefits (e.g., accrued vacation) through the date of death.
Thereafter the Company’s obligations under this Agreement shall terminate; provided, however, that
nothing contained in this Agreement shall limit Executive’s estate’s or beneficiaries’ rights to
payments or other benefits under any life insurance plan or policy in which Executive participates
or with respect to which Executive has designated a beneficiary, if any.

4.6. Compliance with Section 409A of the Code. This Agreement is intended to comply
with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (or any
regulations or rulings thereunder), and shall be construed and interpreted in accordance with such
intent. Notwithstanding anything to the contrary in this Agreement, the Company, in the exercise
of its sole discretion and without the consent of Executive, shall have the authority to delay the
payment of any amounts or the provision of any benefits under this Agreement to the extent it deems
necessary or appropriate to comply with Section 409A(a)(2)(B)(i) of the Code (relating to payments
made to certain “key employees” of certain publicly-traded companies) as amplified by any Internal
Revenue Service or U.S. Treasury Department guidance as the Company deems appropriate or advisable.
In such event, any amounts or benefits under this Agreement to which Executive would otherwise be
entitled during the six (6) month period following Executive’s termination of employment will be
paid on the first business day following the expiration of such six (6) month period. Any provision of
this Agreement that would cause the payment of any benefit to fail to satisfy Section 409A of the
Code shall have no force and effect until amended to comply with Code Section 409A (which amendment
may be retroactive to the extent permitted by the Code or any regulations or rulings thereunder).

 

6

 

4.7. No Other Compensation or Benefits. Executive acknowledges that except as
expressly provided in this Agreement, he will not be entitled to any additional compensation,
severance payments or benefits after the termination of his employment.

5. Termination Obligations

5.1. Return of Company’s Property. Without in any way limiting Executive’s
obligations and the Company’s rights under the Employee Proprietary Information and Inventions
Agreement described in Section 1.3, Executive hereby acknowledges and agrees that all books,
manuals, records, reports, notes, contracts, lists, spreadsheets and other documents or materials,
or copies thereof, and equipment furnished to or prepared by Executive in the course of or incident
to Executive’s employment, belong to Company and shall be promptly returned to Company upon
termination of Executive’s employment.

5.2. Cooperation in Pending Work. Following any termination of Executive’s
employment, Executive shall, at the Company’s request, reasonably cooperate with the Company in all
matters relating to the winding up of pending work on behalf of the Company and the orderly
transfer of work to other employees of the Company. Executive shall also cooperate, at the
Company’s request, in the defense of any action brought by any third party against the Company that
relates in any way to Executive’s acts or omissions while employed by the Company. In
consideration of Executive’s cooperation under this Section 5.2, the Company shall reimburse
Executive for his reasonable out-of-pocket costs incurred to cooperate and the Company shall pay
Executive an hourly consulting fee equal to the hourly rate that results from dividing his
then-current base annual salary by 2,080.

5.3. Resignation. Upon the termination of Executive’s employment for any reason,
Executive shall be deemed to have resigned from all positions as an employee, officer, director or
manager then held with the Company, GCA Holdings or any of their respective subsidiaries or
affiliates. Executive agrees to execute and delivery such documents or instruments as are
reasonably requested by the Company, GCA Holdings or any such subsidiary or affiliate to evidence
such resignations.

5.4. Survival. The representations and warranties contained herein and Executive’s
and the Company’s obligations under Sections 4, 5, 6, 7 and 8 and under the Employee Proprietary
Information and Inventions Agreement shall survive termination of Executive’s employment and the
expiration of this Agreement.

6. Restrictions on Competition after Termination.

 

7

 

6.1. Reasons for Restrictions. Executive acknowledges that the nature of the
Company’s business is such that it would be extremely difficult for Executive to honor and comply
with Executive’s obligation under the Employee Proprietary and Inventions Agreement described in
Section 1.3 to keep secret and confidential the Company’s trade secrets if Executive were to become
employed by or substantially interested in the business of a competitor of the Company soon
following the termination of Executive’s employment with the Company, and it would also be
extremely difficult to determine in any reasonably available forum the extent to which Executive
was or was not complying with Executive’s obligations under such circumstances.

6.2. Duration of Restriction. In consideration for the Company’s undertakings and
obligations under this Agreement, Executive agrees that during the Noncompete Term, Executive will
not directly or indirectly engage in (whether as an employee, consultant, proprietor, partner,
director or otherwise), or have any ownership interest in, or participate in the financing,
operation, management or control of, any person, firm, corporation or business that engages in any
line of business in which the Company engages at the time of such termination, in the United
States, Canada, the United Kingdom or such other countries in which the Company conducts business
at the time of such termination (“Restricted Territory”). For the avoidance of doubt, the
foregoing shall not prohibit Executive from engaging in, owning an interest in, or participating in
any business that processes credit card, debit card or automated teller machine transactions
originated from outside of gaming establishments. For purposes of this Agreement, the “Noncompete
Term” shall be the period of two (2) years after the termination of Executive’s employment
hereunder. The parties agree that ownership of no more than 1% of the outstanding voting stock of
a publicly-traded corporation or other entity shall not constitute a violation of this provision.
The parties intend that the covenants contained in this section shall be construed as a series of
separate covenants, one for each county, city, state and other political subdivision of the
Restricted Territory. Except for geographic coverage, each such separate covenant shall be deemed
identical in terms to the covenant contained in this section. If, in any judicial proceeding, a
court shall refuse to enforce any of the separate covenants (or any part thereof) deemed included
in this section, then such unenforceable covenant (or such part) shall be deemed eliminated from
this Agreement for the purpose of those proceedings to the extent necessary to permit the remaining
separate covenants (or portions thereof) to be enforced by such court. It is the intent of the
parties that the covenants set forth herein be enforced to the maximum degree permitted by
applicable law.

7. Restrictions on Solicitation after Termination.

For a period of two (2) years following the termination of Executive’s employment hereunder
for any reason, Executive shall not, without the prior written consent of the Company, directly or
indirectly, as a sole proprietor, member of a partnership, stockholder or investor, officer or
director of a corporation, or as an executive, associate, consultant, independent contractor or
agent of any person, partnership, corporation or other business organization or entity other than
the Company solicit or endeavor to entice away from the Company any person or entity who is, or,
during the then most recent three-month period, was, employed by, or had served as an agent or key
consultant of the Company, provided, however, that Executive shall not be prohibited from receiving and responding to unsolicited requests for employment or career
advice from Company’s employees.

 

8

 

8. Arbitration.

8.1. Agreement to Arbitrate Claims. The Company and Executive hereby agree that, to
the fullest extent permitted by law, any and all claims or controversies between them (or between
Executive and any present or former officer, director, agent, or employee of the Company or any
parent, subsidiary, or other entity affiliated with the Company) relating in any manner to the
employment or the termination of employment of Executive shall be resolved by final and binding
arbitration. Except as specifically provided herein, any arbitration proceeding shall be conducted
in accordance with the National Rules for the Resolution of Employment Disputes of the American
Arbitration Association (“the AAA Rules”). Claims subject to arbitration shall include contract
claims, tort claims, claims relating to compensation and stock options, as well as claims based on
any federal, state, or local law, statute, or regulation, including but not limited to any claims
arising under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act,
the Americans with Disabilities Act, and the California Fair Employment and Housing Act. However,
claims for unemployment compensation, workers’ compensation, and claims under the National Labor
Relations Act shall not be subject to arbitration.

8.2. Arbitrator. A neutral and impartial arbitrator shall be chosen by mutual
agreement of Executive and the Company; however, if Executive and the Company are unable to agree
upon an arbitrator within a reasonable period of time, then a neutral and impartial arbitrator
shall be appointed in accordance with the arbitrator nomination and selection procedure set forth
in the AAA Rules. The arbitrator shall prepare a written decision containing the essential
findings and conclusions on which the award is based so as to ensure meaningful judicial review of
the decision. The arbitrator shall apply the same substantive law, with the same statutes of
limitations and same remedies, that would apply if the claims were brought in a court of law. The
arbitrator shall have the authority to consider and decide pre-hearing motions, including
dispositive motions.

8.3. Enforcement Actions. Either the Company or Executive may bring an action in
court to compel arbitration under this Agreement and to enforce an arbitration award. Except as
otherwise provided in this Agreement, neither party shall initiate or prosecute any lawsuit in any
way related to any arbitrable claim, including without limitation any claim as to the making,
existence, validity, or enforceability of the agreement to arbitrate. All arbitration hearings
under this Agreement shall be conducted in Las Vegas, Nevada.

8.4. Exceptions. Nothing in this Agreement precludes a party from filing an
administrative charge before an agency that has jurisdiction over an arbitrable claim. In
addition, either party may, at its option, seek injunctive relief in a court of competent
jurisdiction for any claim or controversy arising out of or related to the unauthorized use,
disclosure, or misappropriation of the confidential and/or proprietary information of either party.
By way of example, the Company may choose to use the court system to seek injunctive relief to
prevent disclosure of its proprietary information or trade secrets; similarly, Executive may elect to
use the court system to seek injunctive relief to protect Executive’s own inventions or trade
secrets.

 

9

 

8.5. Governing Law. The agreement to arbitrate under this Section 8 shall be governed
by the Uniform Arbitration Act of 2000 (Nevada Revised Statutes 38.206 et seq).
In ruling on procedural and substantive issues raised in the arbitration itself, the Arbitrator
shall in all cases apply the substantive law of the State of Nevada.

8.6. Attorneys’ Fees. Each party shall pay its own costs and attorney’s fees, unless
a party prevails on a statutory claim, and the statute provides that the prevailing party is
entitled to payment of its attorneys’ fees. In that case, the arbitrator may award reasonable
attorneys’ fees and costs to the prevailing party as provided by law. The costs and fees of the
arbitrator shall be borne equally by Executive and the Company.

8.7. Survival. The parties’ obligations under this Section 8 shall survive the
termination of Executive’s employment with the Company and the expiration of this Agreement.

8.8. Acknowledgements. THE PARTIES UNDERSTAND AND AGREE THAT THIS SECTION 8
CONSTITUTES A WAIVER OF THEIR RIGHT TO A TRIAL BY JURY OF ANY CLAIMS OR CONTROVERSIES COVERED BY
THIS SECTION 8. THE PARTIES AGREE THAT NONE OF THOSE CLAIMS OR CONTROVERSIES SHALL BE RESOLVED BY
A JURY TRIAL. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE BEEN GIVEN THE OPPORTUNITY TO DISCUSS
THIS SECTION 8 WITH THEIR LEGAL COUNSEL AND HAVE AVAILED THEMSELVES OF THAT OPPORTUNITY TO THE
EXTENT THEY WISH TO DO SO.

9. Expiration

The terms of this Agreement are intended by the parties to govern Executive’s employment with
the Company during the term of such employment. Upon the termination of Executive’s employment
with the Company, this Agreement shall expire and be of no further force or effect, except to the
extent of provisions hereof which expressly survive the expiration or termination of this
Agreement.

10. Entire Agreement

The terms of this Agreement are intended by the parties to be the final and exclusive
expression of their agreement with respect to the employment of Executive by Company and may not be
contradicted by evidence of any prior or contemporaneous statements or agreements. The parties
further intend that this Agreement shall constitute the complete and exclusive statement of its
terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative,
or other legal proceeding involving this Agreement. To the extent any provisions in this
Agreement are inconsistent with any provisions of the Exhibits, the provisions of the Exhibits
shall supersede and be controlling.

 

10

 

11. Amendments, Waivers

This Agreement may not be modified, amended, or terminated except by an instrument in writing,
signed by Executive and by a duly authorized representative of the Company other than Executive.
No failure to exercise and no delay in exercising any right, remedy, or power under this Agreement
shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy,
or power under this Agreement preclude any other or further exercise thereof, or the exercise of
any other right, remedy, or power provided herein or by law or in equity.

12. Assignment; Successors and Assigns

Executive agrees that Executive may not assign, sell, transfer, delegate or otherwise dispose
of, whether voluntarily or involuntarily, or by operation of law, any rights or obligations under
this Agreement, nor shall Executive’s rights be subject to encumbrance or the claims of creditors.
Any purported assignment, transfer, or delegation shall be null and void. Nothing in this
Agreement shall prevent the consolidation of the Company with, or its merger into, any other
corporation, or the sale by the Company of all or substantially all of its properties or assets, or
the assignment by the Company of this Agreement and the performance of its obligations hereunder to
any successor in interest.

13. Entire Agreement; Severability; Enforcement

This Agreement constitutes the entire agreement of the parties with respect to the subject
matter hereof and supersedes in its entirety all prior undertakings and agreements of the Company
and Executive with respect to the subject matter hereof; provided, however, that to the extent of
any conflict between the provisions of this Agreement, on the one hand, and either the Employee
Proprietary Information and Inventions Agreement attached hereto as Exhibit A or the Stock
Option Agreement attached hereto as Exhibit B, on the other hand, the provisions of such
Employee Proprietary Information and Inventions Agreement or Stock Option Agreement shall govern.
If any provision of this Agreement, or the application thereof to any person, place, or
circumstance, shall be held by a court of competent jurisdiction to be invalid, unenforceable, or
void, the remainder of this Agreement and such provisions as applied to other persons, places, and
circumstances shall remain in full force and effect. Such court shall have the authority to modify
or replace the invalid or unenforceable term or provision with one which most accurately represents
the parties’ intention with respect to the invalid or unenforceable term or provision.

14. Governing Law

The validity, interpretation, enforceability, and performance of this Agreement shall be
governed by and construed in accordance with the law of the State of Nevada.

15. Acknowledgment

The parties acknowledge (a) that they have consulted with or have had the opportunity to
consult with independent counsel of their own choice concerning this Agreement, and (b) that they
have read and understand the Agreement, are fully aware of its legal effect, and have entered into
it freely based on their own judgment and not on any representations or promises other than those
contained in this Agreement.

 

11

 

16. Notices

All notices or demands of any kind required or permitted to be given by the Company or
Executive under this Agreement shall be given in writing and shall be personally delivered (and
receipted for) or mailed by certified mail, return receipt requested, postage prepaid, addressed as
follows:

	 	 	 	 	 
	 

	 	If to Company:
	 	Global Cash Access, Inc.
	 

	 	 	 	Attn: Chief Executive Officer
	 

	 	 	 	3525 East Post Road, Suite 120 
	 

	 	 	 	Las Vegas, NV 89120 
	 
	 	 	 	 
	 

	 	If to Executive:
	 	George Gresham
	 

	 	 	 	c/o Global Cash Access, Inc.
	 

	 	 	 	3525 East Post Road, Suite 120 
	 

	 	 	 	Las Vegas, NV 89120 

Any such written notice shall be deemed received when personally delivered or three (3) days after
its deposit in the United States mail as specified above. Either party may change its address for
notices by giving notice to the other party in the name specified in this section.

17. Representations and Warranties.

Executive represents and warrants that he is not restricted or prohibited, contractually or
otherwise, from entering into and performing each of the terms and covenants contained in this
Agreement, and that his execution and performance of this Agreement will not violate or breach any
other agreements between Executive and any other person or entity.

18. Counterparts

This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, all of which together shall contribute one and the same instrument.

 

12

 

IN WITNESS WHEREOF, each of the undersigned has executed this Agreement as of the date first
set forth above.

	 	 	 	 	 	 	 
	GLOBAL CASH ACCESS, INC.	 	 	 	GEORGE GRESHAM
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	Scott Betts, Chief Executive Officer
	 	 	 	George Gresham

 

13

 

EXHIBIT A

EMPLOYEE PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

 

14

 

EXHIBIT B

STOCK OPTION AGREEMENT

 

15

 

EXHIBIT C

RELEASE AND WAIVER OF CLAIMS

In exchange for the severance payments and other benefits to which I would not otherwise be
entitled, I hereby furnish Global Cash Access Holdings, Inc., Global Cash Access, Inc. and each of
their respective subsidiaries and affiliates (collectively, the “Company”) with the following
release and waiver.

I hereby release, and forever discharge the Company, its officers, directors, agents,
employees, stockholders, attorneys, successors, assigns and affiliates, of and from any and all
claims, liabilities, demands, causes of action, costs, expenses, attorneys fees, damages,
indemnities and obligations of every kid and nature, in law, equity, or otherwise, known and
unknown, suspected and unsuspected, disclosed and undisclosed, arising at any time prior to and
including the date I sign this Release with respect to any claims relating to my employment and the
termination of my employment, including but not limited to: any and all such claims and demands
directly or indirectly arising out of or in any way connected with my employment with the Company
or the termination of that employment; claims or demands related to salary, bonuses, commissions,
stock, stock options, or any other ownership interests in the Company, vacation pay, fringe
benefits, expense reimbursements, sabbatical benefits, severance benefits, or any other form of
compensation; claims pursuant to any federal, state or local law or cause of action including, but
not limited to, the federal Civil Rights Act of 1964, as amended; the federal Age Discrimination
Act of 1990; the Delaware Fair Employment Practices Act, as amended; tort law; contract law;
wrongful discharge; discrimination; harassment; fraud; emotional distress; and breach of the
implied covenant of good faith and fair dealing, provided, however, that this Release shall not
apply to claims or causes of action for defamation, libel, or invasion of privacy.

In granting the releases herein, I acknowledge that I understand that I am waiving any and all
rights and benefits conferred by the provisions of Section 1542 of the Civil Code of the State of
California and any similar provision of law of any other state or territory of the United States or
other jurisdiction to the following effect: “A general release does not extend to claims which the
creditor does not know or suspect to exist in his favor at the time of executing the release, which
if known by him must have materially affected his settlement with the debtor.” I hereby expressly
waive and relinquish all rights and benefits under that section and any law or legal principle of
similar effect in any jurisdiction with respect to the release of unknown and unsuspected claims
granted in this Agreement.

I acknowledge that, among other rights, I am waiving and releasing any rights I may have under
ADEA, that this waiver and release is knowing and voluntary, and that the consideration given for
this waiver and release is in addition to anything of value to which I was already entitled. I
further acknowledge that I have been advised, as required by the Older Workers Benefit Protection
Act, that: (a) the waiver and release granted herein does not relate to claims which may arise
after this agreement is executed; (b) I have the right to consult with an attorney prior to
executing this agreement (although I may choose voluntarily not to do so); (c) I have twenty-one
(21) days from the date I receive this agreement, in which to consider this agreement (although I
may choose voluntarily to execute this agreement earlier); (d) I have seven (7) days following the execution of this agreement to revoke my consent to the agreement; and (e) this
agreement shall not be effective until the seven (7) day revocation period has expired.

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	George Gresham

 

16

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