Document:

exv10w1

 

Exhibit 10.1

WESTERN NATIONAL BANK

508 WEST WALL STREET, SUITE 1100

MIDLAND, TEXAS

79701

January 18, 2006

Dawson Geophysical Company

508 W. Wall Street, Ste. 800

Midland, Texas 79701

	 	 	 	RE: Revolving Line of Credit Loan from Western National Bank to Dawson
Geophysical Company

Gentlemen:

Pursuant to the terms of a letter loan agreement, dated December 22, 2004, (the “Original Loan
Agreement”), Western National Bank (alternatively, “Western” or the “Bank”) has previously
committed to provide to Dawson Geophysical Company (alternatively “Dawson Geophysical” or the
“Borrower”), a revolving line of credit loan in the original principal amount of Ten Million and
No/Dollars ($10,000,000.00) (the “Existing Loan”). The Existing Loan is evidenced by a revolving
line of credit note, of even date herewith, executed by the Borrower on behalf of Western in the
original principal amount of Ten Million and No/100 Dollars ($10,000,000.00) (the “Existing Note”).
The Existing Note is secured by that certain Security Agreement, dated December 22, 2004, covering
those accounts receivables described therein (the “Existing Security Agreement”). From time to
time, the Security Agreement, and any financing statements filed to perfect the security interest
created thereunder, may be collectively referred to herein as the “Existing Security Instruments”.

Borrower has now requested that Western renew and extend the Existing Loan into a new revolving
line of credit loan, dated of even date herewith, in the original principal amount of Ten Million
and No/100 Dollars ($10,000,000.00) (the “Loan”). The Loan will be evidenced by a revolving line of
credit note, of even date herewith, in the original principal amount of Ten Million and No/100
Dollars ($10,000,000.00), which will be in renewal and extension of the Original Note (the “Note”).
The Borrower’s performance under the Note will be secured by the execution of a new Security
Agreement, of even date herewith, the security interest of which will be perfected by the filing of
amendments to the financing statement, both covering the accounts receivables described therein
(collectively, the “Security Instruments”.

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Western has agreed to renew the Existing Loan into the Loan. In consideration of Western’s renewal
of the Existing Loan into the Loan, Borrower has agreed to execute this Loan Agreement, the Note
and the Security Agreements required by the Bank, subject to the fulfillment of the following terms
and conditions of this letter agreement (the “Agreement”):

I. TERMS

Agreement

This letter agreement, dated as of January 18, 2006, and any extensions, renewals, or modifications
hereof.

Borrower

Dawson Geophysical Company

Bank

Western National Bank

Commitment

The lesser of the following amounts: (a) the face amount of the Note; or (b) the Borrowing Base
then in effect.

Rate

Interest under the Note shall accrue at an annual rate equal to the Prime Rate, but in no event
should be less than five percent (5.0%). For purposes of this Agreement, the “Prime Rate” shall be
defined as that rate established as the prime rate in the money rate table of The Wall Street
Journal, a Dow Jones publication, as of each Business Day, as hereinafter defined, (and for
holidays or weekends, the Prime Rate shall be the prime rate published in that money rate table of
The Wall Street Journal, as of the close of business on the most recent Business Day immediately
preceding such weekend or holiday). Without notice to the Borrower or any other person, the Prime
Rate may change from time to time pursuant to the preceding sentence, with the effective date of
each change to be the effective date reflected in the money rate table of The Wall Street Journal.
The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate
actually charged to any customer. The Bank may make commercial loans or other loans at rates of
interest at, above, or below the Prime Rate. “Business Day” shall mean any day other than a
Saturday, Sunday or legal holiday for commercial banks under the laws of the State of Texas.

Security

The Loan shall be secured by the Security Instruments.

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Structure

Under the Note, funds will be available on a revolving basis through January 18, 2007, the maturity
date of the Revolver Loan (the “Revolving Period”). During the Revolving Period, the Borrower may
borrow, repay, and re-borrow funds as long as the aggregate amount (including outstanding letters
of credit) does not exceed the Commitment.

Borrowing Base

At any time, and from time to time, the amounts outstanding under the Revolver Note shall not
exceed the lesser of: (a) the face amount of the Revolver Note; or (b) the Borrowing Base, as
determined from time to time by the Bank, acting in its sole and unlimited discretion (said lesser
amount being referred to herein as the “Revolver Commitment”). As used in this Agreement, the term
“Borrowing Base” shall mean an amount equal to seventy-five percent (75%) of the Borrower’s
Eligible Accounts.

For the purposes of this Agreement, the term “Eligible Account” shall mean an account receivable of
any of the Borrower (net of any credit balance, trade discount, or unbilled amount or retention)
that is contractually due, for which each of the following statements is accurate and complete (and
the Borrower, by including such account receivable in any computation of the Borrowing Base, shall
be deemed to represent and warrant to the Bank the accuracy and completeness of such statements):

	 	a.	 	Said account receivable is a binding and valid
obligation of the obligor thereon, in full force and effect, and enforceable
in accordance with its terms;
	 
	 	b.	 	Said account receivable is genuine, in all respects,
as appearing on its face as represented in the books and records of Borrower,
and all information set forth therein is true and correct;
	 
	 	c.	 	Said account receivable is free of all default of
any party thereto, counterclaims, offsets, and defenses, and from any
rescission, cancellation, or avoidance, and all right thereof, whether by
operation of law or otherwise;
	 
	 	d.	 	The payment of said account receivable is not more
than ninety (90) days past due the invoice date thereof;
	 
	 	e.	 	Said account receivable is free of concessions or
understandings with the obligor thereon of any kind not disclosed to and
approved by the Bank in writing;
	 
	 	f.	 	Said account receivable is, and at all times will
be, free and clear of all liens except those in favor of the Bank;
	 
	 	g.	 	Said account receivable is not a receivable arising
from intercompany indebtedness existing between or among any of the Borrower;

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	 	h.	 	Said account receivable is derived from sales made
or services rendered to the obligor in the ordinary course of the business of
the Borrower;
	 
	 	i.	 	The obligor on said account receivable (i) is
located within the United States or the District of Columbia; (ii) is not the
subject of any bankruptcy or insolvency proceeding, nor has a trustee or
receiver been appointed for all or a substantial part of its property, nor
has said obligor made an assignment for the benefit of creditors, admitted
its inability to pay its debts as they mature or suspended its business,
(iii) is not affiliated, directly or indirectly, with Borrower, as a
subsidiary or affiliate, employee or otherwise; and (iv) is not a state or
federal government department, commission, board, bureau, or agency;
	 
	 	j.	 	Said account receivable did not arise from a single
customer whose accounts receivable to Borrower constitute more than
twenty-five percent (25%) of Borrower’s accounts receivable;
	 
	 	k.	 	Said account receivable is not owed by a customer
whose principal place of business is located in a foreign country; and
	 
	 	l.	 	Said account receivable did not arise from sales to
an obligor as to whom fifteen percent (15%) or more of the total accounts
receivable owing by such obligor to the Borrower are delinquent accounts
receivable (that is, an account that is more than ninety (90) days
delinquent).

The Borrower may request in writing an increase in the Borrowing Base, such request to be
accompanied by a description and evaluation of any additional collateral to be provided by the
Bank. The Bank may evaluate such for an increase in its sole and absolute discretion, and in
conjunction with such evaluation, may conduct a full credit analysis of the Borrower and the
existing or additional collateral.

If the aggregate amounts outstanding under the Note exceeds the Revolver Commitment at any time,
the Bank will provide written notice of that event to Borrower. On or before the tenth
(10th) day following receipt of such notification by Borrower, Borrower will either, at
the direction of the Bank, acting in its sole and absolute discretion: (a) make a mandatory payment
to the Bank of the principal of the Note in an amount at least equal to
the amount necessary to cause the outstanding principal balance of the Note to be less than or
equal to the Revolver Commitment; or (b) create liens on other assets of Borrower, satisfactory in
nature, quantity, and value to the Bank, acting in its sole discretion, said assets to have a fair
market value sufficient to at least equal to the amount necessary to cause the outstanding
principal balance of the Note to be less than or equal to the Revolver Commitment.

Non-Recourse

Borrower shall have no personal liability for payment of principal and interest on the Obligations
or for the breach by Borrower of any covenant, agreement, representation, or warranty set forth in
this Agreement or any other loan documentation. The Bank shall look solely to the Collateral for

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satisfaction in the payment of such principal and interest and shall not institute any action or
proceeding seeking a deficiency or other personal judgment against the Borrower in the event that
the sale of the Collateral shall be insufficient to satisfy the Indebtedness. Nothing herein
contained shall, however, impair any right, remedy or security of the Bank with respect to the
Collateral under any other loan documentation.

Purpose

Funds from the Loan shall be to renew and extend the Original Loan and to provide working capital
to offset the increase in receivables due to the significant growth in Borrower’s business. No
proceeds from the Loan shall be used for the purpose of purchasing or carrying margin stock in
violation of Regulations G, U, or X of the Board of Governors of the Federal Reserve System.

Maturity Date

As stated, the maturity date of the Note is January 18, 2007.

II. REPRESENTATIONS AND WARRANTIES

     A. Good Standing and Identity. The Borrower is a corporation, duly organized
and in good standing under the laws of Texas. The Borrower’s legal name is that reflected in the
address of this Agreement. Borrower has the power to own its property and to carry on its business
in each jurisdiction in which the Borrower operates.

     B. Authority and Compliance. The Borrower has full power and authority to enter
into this Agreement, to make the borrowing hereunder, to execute and deliver the Note, to mortgage
those interests covered by the Security Instruments, and to incur the obligations provided for
herein, all of which will be duly authorized by all proper and necessary corporate action. No
consent or approval of any public authority is required as a condition to the validity of this
Agreement, the Note, and the Security Instrument, and Borrower is in compliance with all laws and
regulatory requirements to which he is subject.

     C. Litigation. There are no proceedings pending or, to the knowledge of
Borrower, threatened before any court or administrative agency that will or may have a material
adverse effect on the financial condition or operations of Borrower, except as disclosed to the
Bank in writing prior to the date of this Agreement.

     D. Ownership of Assets. As of the date of this Agreement, Borrower has good
title to the interests covered by the Security Instruments and any other collateral pledged and the
other collateral is owned free and clear of liens. Borrower will at all times maintain its tangible
property, real and personal, in good order and repair, taking into consideration reasonable wear
and tear.

     E. Taxes. All income taxes and other taxes due and payable through the date of
this Agreement have been paid prior to becoming delinquent.

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     F. Financial Statements. The books and records of the Borrower properly reflect
the financial condition of the Borrower in all material respects, and there has been no material
change in Borrower’s financial condition as represented in its most recent financial statements.

     G. Hazardous Wastes and Substances. To the best knowledge of the Borrower, the
Borrower and its properties are in compliance with applicable state and federal environmental laws
and regulations and the Borrower is not aware of and has not received any notice of any violation
of any applicable state or federal environmental law or regulation and there has not heretofore
been filed any complaint, nor commenced any administrative procedure, against the Borrower or any
of its predecessors, alleging a violation of any environmental law or regulation. Currently and
from time to time, the Borrower, in the course of its regular business, may use or generate on a
portion of its properties materials which are Hazardous Materials, as hereinafter defined. The
Borrower has and will make a good faith attempt to comply with all applicable statutes and
regulations in the use, generation and disposal of such materials. To the best of its knowledge,
the Borrower has not otherwise installed, used, generated, stored or disposed of any hazardous
waste, toxic substance, asbestos or related material (“Hazardous Materials”) on its properties. For
the purposes of this Agreement, Hazardous Materials shall include, but shall not be limited to,
substances defined as “hazardous substances” or “toxic substances” in the Comprehensive
Environmental Response Compensation and Liability Act of 1980, as amended, 42 U.S.C. §9061, et
seq., Hazardous Materials Transportation Act, 49 U.S.C. §1802, et seq., and the
Resource Conservation and Recovery Act, 42 U.S.C. §6901, et seq., or as “hazardous
substances,” “hazardous waste” or “pollutant or contaminant” in any other applicable federal, state
or local environmental law or regulation. There do not exist upon any property owned by Borrower
any underground storage tanks or facilities, and to the knowledge of Borrower, none of such
property has ever been used for the treatment, storage, recycling, or disposal of any Hazardous
Materials.

III. CONDITIONS PRECEDENT

The provisions of this Agreement will serve as the proposed terms of the borrowing arrangements.
Prior to any funds being made available, Borrower will execute and deliver to the Bank, in form and
substance satisfactory to the Bank, this Agreement, the Note, and the Security Instruments.

IV. COVENANTS

Unless the Bank will otherwise consent in writing, and so long as any debt remains outstanding or
the commitment still available, the Borrower agrees to comply with the following covenants:

A. Affirmative Covenants.

     1. As soon as available, but in any event not later than ninety (90) days after the end of
each fiscal year, Borrower will provide financial statements, in form and substance
satisfactory to the Bank, reflecting Borrower’s financial performance as of the end of such
year and the related statements of income and changes in cash flows for such year, with the
first fiscal year ending on September 30, 2006, such statements to be audited by an
independent certified accountant and to be prepared according to generally accepted
accounting principals, consistently applied (“GAAP”)

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     2. Within ninety (90) days of the end of each calendar quarter, with the next quarter ending
on March 31, 2006, the Borrower will submit to the Bank a financial statement reflecting
Borrower’s financial performance during the previous calendar quarter, such statements to
be reviewed by an independent certified accountant and to be prepared according to GAAP.

     3. Within thirty (30) days of the end of each calendar month, Borrower shall provide
internally prepared financial statements reflecting Borrower’s financial performance during
the previous month, such statements to be prepared according GAAP.

     4. Within thirty (30) days of the end of each calendar month, Borrower shall provide monthly
accounts receivable aging reports.

     5. Within thirty (30) days of transmitting any tax return to any governmental authority, the
Borrower will submit to the Bank a copy of that tax return.

     6. Within thirty (30) days following the end of each calendar month, Borrower shall provide
a monthly compliance certificate in the form attached hereto as Exhibit “A”.

     7. Within thirty (30) days following the end of each calendar month, Borrower shall provide
a monthly borrowing base report in the form attached hereto as Exhibit “B”.

     8. Borrower
shall maintain an average Cash Flow Coverage Ratio of not less than 1.50 to 1.0,
calculated monthly, beginning on January 31, 2006, from the date of the Loan to maturity.
For purposes of this Agreement, “Cash Flow Coverage Ratio” means, with respect to any
period of calculation thereof, the ratio of the sum of: (i) the net income (or loss) from
continuing operations of Borrower during such period calculated after any and all
distributions to shareholders, plus (ii) interest, depreciation, depletion, and
amortization expenses of Borrower during such period, less (iii) gains from the sale of any
assets; plus (iv) losses from the sale of any assets; less (v) extraordinary adjustments to
net income divided by (vi) scheduled capital lease obligations and Principal and Interest
payments, all determined in accordance with GAAP.

     9. Borrow shall maintain a Current Ratio of not less than 1.50 to 1.0, measured monthly,
beginning on January 31, 2006, from the date of the Loan to maturity. For purposes of this
Agreement, “Current Ratio” means, with respect to any period of calculation thereof, the
ratio of the sum of: (i) current assets, plus (ii) availability under the Revolver Loan,
divided by (iii) current liabilities. Current assets shall include a minimum balance of
cash, plus marketable securities, of not less than $3,500,000.00.

     10. Borrower shall submit copies of all financial statements, reports, notices, and proxy
statements sent or made available generally by the Borrower to its shareholders, of all
regular and periodic reports and all private placement memorandums and all registration
statements and prospectuses, if any, filed by the Borrower with any securities exchange or
with the Security Exchange Commission; and all press releases and other statements made
available generally by the Borrower to the public concerning material changes in the
business

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of the Borrower upon their becoming available, but in no event later than 10 days
after the same was sent.

     11. Borrower shall maintain a minimum Tangible Net Worth of $40,000,000.00, to be measured
monthly. “Tangible Net Worth” means the excess, if any, of the total assets of any person
over all items of indebtedness, obligations, or liability which would be classified as
liabilities of that person, for the time period to be measured, each to be determined in
accordance with GAAP; provided, however, that for the purposes of any such computation of
Tangible Net Worth, “assets” will not include (a) goodwill (whether representing the excess
of cost over book value of assets acquired or otherwise), and (b) patents, trademarks,
trade names, copyrights, franchises, and deferred charges.

     12. For any time period for which reporting is required, Borrower will maintain a Debt to
Tangible Net Worth ratio of at least 1.50 to 1.00 to be measured monthly. For purposes of
this paragraph, “Debt” shall mean, as to any person, all liabilities,
obligations, and indebtedness to any person, of any kind or nature, now or hereafter owing,
arising, due or payable, howsoever evidenced, created, incurred, acquired or owing, whether
primary, secondary, direct, contingent, fixed, or otherwise, and “Tangible Net Worth” shall
have the same meaning set forth in Paragraph (11) above.

     13. The Borrower will maintain its existence in good standing and comply with all laws,
regulations and governmental requirements applicable to it or to any of its property,
business operations and transactions.

     14. The Borrower will promptly pay any reasonable costs incurred by the Bank in connection
with the preparation or enforcement of this Agreement, the Notes, the Security Instruments,
and any other documentation executed concurrently herewith.

     15. The Borrower will remain in substantial compliance with same and will not place or
permit to be placed any Hazardous Materials on any of its properties in violation of
applicable state and federal environmental laws. In the event that the Borrower should
discover any Hazardous Materials on any of its properties that could result in a breach of
the foregoing covenant, the Borrower shall notify the Bank within three (3) days after such
discovery. The Borrower shall dispose of all material amounts of Hazardous Materials that
it generates only at facilities or with carriers that maintain valid governmental permits
under the Resource Conservation and Recovery Act, 42 U.S.C. §6901. In the event of any
notice or filing of any procedure against the Borrower alleging a violation of any
environmental law or regulation, the Borrower shall give notice to the Bank within five (5)
days after receiving notice of such notice or filing.

     16. The Borrower will provide such other information as the Bank may reasonably request from
time to time in its sole discretion.

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B. Negative Covenants.

     1. The Borrower will not make any change in its present accounting method or change its
present fiscal year.

     2. The Borrower will not make any substantial change in the nature of its business as now
conducted.

     3. The Borrower will not reorganize or merge with any other entity, without the prior
written consent of the Bank.

     4. With respect to the Borrower’s interest in any of the properties covered by the Security
Instrument, the Borrower will not sell, contract to sell, convey, assign, transfer,
mortgage, pledge, hypothecate, encumber, or in any way alienate that interest in such
properties, without the consent of the Bank.

     5. Borrower shall not pay any dividends or distributions to shareholders with the exception
of those used to pay income tax liabilities incurred in connection with the Borrower’s
business.

V. EVENTS OF DEFAULT

The occurrence and continuing existence of any one of the following will constitute an Event of
Default under this Agreement and the Note:

     A. Borrower fails to pay when due any principal, interest, or other amount payable
under this Agreement, the Note, or any other promissory notes executed or guaranteed by the
Borrower in favor of the Bank;

     B. Any representation or warranty made by the Borrower hereunder or in any related
collateral security or other documents entered into with the Bank proves to be at any time
incorrect in any significant respect;

     C. The Borrower fails to observe or perform any covenant, obligation, agreement, or
other provision contained herein or in any other contract or instrument executed in connection
herewith;

     D. Any default or defined Event of Default under any security agreement, deed of trust,
promissory note, loan agreement or other contract or instrument executed by the Borrower pursuant
to, or as required by, this Agreement;

     E. Any final judgment or judgments for the payment of money is rendered against
Borrower and is not be satisfied or discharged at least thirty (30) days prior to the date on which
any of their assets could be lawfully sold to satisfy such judgment or judgments, unless Borrower
brings litigation to stay same; or

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     F. Borrower: (a) becomes insolvent, or suffers or consents to, or applies for the
appointment of a receiver, trustee, custodian or liquidator for himself or any of his property, or
generally fails to pay his debts as they become due, or makes a general assignment for the benefit
of creditors; or (b) files a voluntary petition in bankruptcy, or seeking reorganization, in order
to effect a plan or other arrangement with creditors or any other relief under the Bankruptcy
Reform Act, Title 11 of the United States Code, as recodified from time to time (“Bankruptcy
Code”), or as now or hereafter in effect, or any involuntary petition or proceeding pursuant to
said Bankruptcy Code or any other applicable state or federal law relating to bankruptcy or
reorganization or other relief for debtors is filed or commenced against Borrower; or (c) files any
answer admitting the jurisdiction of the court and the material allegations of any such involuntary
petition; or (d) is adjudicated a bankrupt, under said Bankruptcy Code or any other state or federal law
relating to bankruptcy, reorganization, or other relief for debtors.

VI. REMEDIES

If any Event of Default occurs, any term hereof or of the Note to the contrary notwithstanding, the
Note shall at the Bank’s option become immediately due and payable. In addition, the obligation, if
any, of the Bank to permit further borrowings hereunder will immediately cease and terminate and
the Bank will have all rights, powers, and remedies available under this Agreement, the Note, or
other contracts or instruments executed in connection herewith, or accorded by law, including,
without limitation, the right to resort to any or all of the collateral and to exercise any or all
of its rights, powers, or remedies at any time and from time to time after the occurrence of an
Event of Default.

ONCE AN EVENT OF DEFAULT HAS OCCURRED, WESTERN MAY PURSUE THE REMEDIES PROVIDED FOR IN THIS
AGREEMENT, THE NOTE, AND THE SECURITY INSTRUMENTS WITHOUT PRESENTMENT, DEMAND, PROTEST, NOTICE OF
ACCELERATION, NOTICE OF INTENT TO ACCELERATE, NOTICE OF PROTEST OR NOTICE OF DISHONOR, OR ANY OTHER
NOTICE OF ANY KIND, ALL OF WHICH ARE EXPRESSLY WAIVED BY BORROWER.

All rights, powers, and remedies of the Bank in connection with this Agreement, the promissory
notes or any other contract or instrument on which the Borrower may at any time be obligated to the
Bank (or any holder thereof) are cumulative and not exclusive and will be in addition to any other
rights, powers, or remedies provided by law or equity, including without limitation the right to
set off any liability owing by the Bank to the Borrower (including sums deposited in any deposit
account of Borrower with the Bank) against any liability of the Borrower to the Bank.

VII. WAIVER

No delay, failure, or discontinuation by the Bank, or any holder of the Note, in exercising any
right, power, or remedy under this Agreement, the Note or any other contract or instrument on which
the Borrower may at any time be obligated to the Bank (or any holder thereof) will affect or
operate as waiver of such right, power or remedy. Any waiver, permit, consent, or approval of any
kind by the Bank (or any holder of the Note), or of any provisions or conditions of, or any breach
or default under this Agreement, the Note or any other contract or instrument on which the Borrower
may at

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any time be obligated,
must be in writing and will be effective only to the extent set forth in such writing.

VIII. NOTICES

All notices, requests, and demands given to or made upon the respective parties must be in
writing and shall be deemed to have been given or made: (1) at the time of personal delivery
thereof, (2) or two days after any of the same are deposited in the U.S. Mail, first class and
postage prepaid, addressed as follows:

	 	 	 
	Borrower:

	 	Dawson Geophysical Company
	 

	 	508 West Wall Street, Suite 800
	 

	 	Midland, Texas 79701
	 
	 	 
	Western:

	 	Western National Bank
	 

	 	Attention: James R. Kreuz
	 

	 	508 West Wall Street, Suite 1100
	 

	 	Midland, Texas 79701

or other such address as any party may designate by written notice to all other parties.

IX. SUCCESSORS, ASSIGNMENTS

This Agreement will be binding on and inure to the benefit of the heirs, executors, administrators,
legal representatives, successors, and assigns of the parties, provided, however, that this
Agreement may not be assigned by the Borrower without the prior written consent of the Bank. The
Bank reserves the right to sell, assign, transfer, negotiate, or grant participations in all or any
part of, or any interest in, the Bank’s rights and benefits under this Agreement, the Note or any
contracts or instruments relating thereto. In connection therewith, the Bank may disclose all
documents and information which the Bank now has or may hereafter acquire relating to the loan or
the Note, the Borrower or his business, or any collateral required hereunder.

X. SEVERABILITY OF PROVISIONS

If any of the provisions of this Agreement shall be prohibited by or invalid under applicable law,
such provision shall be ineffective only to the extent of such prohibition or invalidity without
invalidating the remainder of such provision or any remaining provisions of this Agreement.

XI. VENUE AND JURISDICTION

Any suit, action or proceeding against the Borrower arising out of or relating to this Agreement or
any judgment entered by any court in respect thereof, may be brought or enforced in the courts of
the State of Texas, County of Midland, or in the United States District Court for the Western
District of Texas, as Western in its sole discretion may elect, and Borrower hereby submits to the
nonexclusive jurisdiction of such courts for the purpose of any such suit, action or proceeding.
The Borrower hereby irrevocably consents to service of process in any suit, action or proceeding in
any

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of said courts by the mailing thereof by the Bank by registered or certified mail, postage prepaid, to the Borrower,
at the address set forth herein.

THE BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTIONS THAT HE MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
BROUGHT IN ANY OF SAID COURTS AND HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH SUIT,
ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM AND ANY
RIGHT GRANTED BY STATUTE, RULE OR COURT OR OTHERWISE TO HAVE SUCH SUIT, ACTION OR PROCEEDING TRIED
BY A JURY.

XII. MISCELLANEOUS

     A. Texas Law Applicable. This Agreement, the Note, the Security Instruments,
and any contracts or instruments relating thereto, shall be governed by and construed in accordance
with the laws of the State of Texas, except to the extent that the Bank has greater rights or
remedies under federal law or the law of any jurisdiction in which the collateral properties are
located, in which case such choice of Texas law shall not be deemed to deprive the Bank of such
rights and remedies under federal law or the law of any jurisdiction in which the collateral
properties are located, in which case such choice of Texas law shall not be deemed to deprive the
Bank of such rights and remedies as may be available under such law.

     B. Notice of Final Agreement. THIS AGREEMENT, THE NOTE, ANY CONTRACTS OR
INSTRUMENTS RELATING THERETO, REPRESENT THE ENTIRE AGREEMENT BETWEEN THE PARTIES, AND IT IS
EXPRESSLY UNDERSTOOD THAT ALL PRIOR CONVERSATIONS OR MEMORANDA BETWEEN THE PARTIES REGARDING THE
TERMS OF THIS AGREEMENT SHALL BE SUPERSEDED BY THIS AGREEMENT. ANY AMENDMENT, APPROVAL, OR WAIVER
BY WESTERN OF THE TERMS OF THIS AGREEMENT, THE NOTE AND ANY CONTRACTS OR INSTRUMENTS RELATING
THERETO, MUST BE IN WRITING OR CONFIRMED WRITING, AND SHALL BE EFFECTIVE ONLY TO THE EXTENT
SPECIFICALLY SET FORTH IN SUCH WRITING. THIS AGREEMENT, IN CONJUNCTION WITH THE NOTE AND ANY
CONTRACTS OR INSTRUMENTS RELATING THERETO, SHALL SERVE TO EVIDENCE THE TERMS OF THE ENTIRE
AGREEMENT BETWEEN THE PARTIES.

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     Please acknowledge your acceptance of and agreement to the terms of this Agreement by dating
and executing where indicated.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	WESTERN NATIONAL BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ James R. Kreuz	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	James R. Kreuz	 	 
	 

	 	 	 	Senior Vice President	 	 

AGREED TO AND ACCEPTED THIS

18th
DAY OF JANUARY 2006.

BORROWER:

DAWSON GEOPHYSICAL COMPANY

	 	 	 	 	 
	By:
	 	/s/ Stephen C. Jumper	 	 
	 
	 	 	 
	 
	 	Stephen C. Jumper	 	 
	 
	 	President	 	 
	 
	 	 	 	 
	By:
	 	/s/ L. Decker Dawson	 	 
	 
	 	 	 
	 
	 	L. Decker Dawson	 	 
	 
	 	Chairman of the Board	 	 

13

 

EXHIBIT “A”

COMPLIANCE CERTIFICATE

     Reference is made to that certain Loan Agreement dated as of January 18, 2006 by and between
DAWSON GEOPHYSICAL COMPANY (“Borrower”); and WESTERN NATIONAL BANK (“Bank”) (the “Loan Agreement”).

     1. Pursuant to the provisions of the Loan Agreement, the undersigned hereby certifies,
represents and warrants to Bank that, to the best of their knowledge, except as set forth below,
(i) during the period covered by this certificate, no Event of Default has occurred; (ii) there
exists no condition or event that, with the giving of notice or lapse of time or both, would
constitute an Event of Default; and (iii) during the period covered by this certificate, Borrower
has observed, performed and complied in all material respects with all covenants, agreements,
duties and obligations contained in the Loan Documents.

     Exceptions to the above certification: [State “none” or specify the nature and period of
existence thereof and the action that Borrower is taking or proposed to take with respect thereto.]

     2. Borrower’s Cash Flow Coverage Ratio is            to 1.0.

     3. Borrower’s
Current Ratio is ___ to 1.0.

     4. Borrower’s Tangible Net Worth is $                    .

     5. Borrower’s
Debt to Tangible Net Worth Ratio is ___ to 1.0.

     6. To the best knowledge of the undersigned, the attached financial statements are true
and correct and correctly set forth the financial position and results of operations at the date(s)
and for the period(s) stated. The attached financial statements include all contingent liabilities
and cash flow information of Borrower.

     7. Period
covered: [Year or Month] ended
                                        ,
200__.

     8. Capitalized terms used but not defined herein shall have the respective meanings
ascribed thereto in the Loan Agreement.

     Dated:                      ___, 200__.

	 	 	 	 	 	 	 
	 	 	DAWSON GEOPHYSICAL COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

1

 

EXHIBIT “B”

Form of Borrowing Base Certificate

DAWSON GEOPHYSICAL COMPANY

BORROWING BASE REPORT

ACCOUNTS RECEIVABLES:

	 	 	 
	Eligible Accounts Receivable as of                                                             

	 	$                    
	 
	 	 
	Multiplier

	 	      x 75%
	 
	 	 
	Receivables portion of Borrowing Base

	 	$                    
	 
	 	 
	Borrowing Base:

	 	$                    

	 	 	 	 	 
	Submitted By: Dawson Geophysical Company	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Stephen C. Jumper	 	 
	 

	 	President	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	L. Decker Dawson	 	 
	 

	 	Chairman of the Board	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	Date	 	 

1<PAGE>

                                                                    EXHIBIT 10.1

                        PAREXEL INTERNATIONAL CORPORATION

                           RESTRICTED STOCK AGREEMENT

      THIS AGREEMENT (the "Agreement") is entered into as of ___________, 200_
(the "Award Date") by and between PAREXEL International Corporation, a
Massachusetts corporation (the "Company") and ____________, a member of the
Board of Directors of the Company, hereinafter referred to as the "Participant."

      WHEREAS, the Company has adopted the PAREXEL International Corporation
2005 Stock Incentive Plan (as it may be amended from time to time, the "Plan"),
the terms of which are hereby incorporated by reference and made a part of this
Agreement; and

      WHEREAS, Section 7 of the Plan provides for the issuance of awards of the
Company's common stock, par value $0.01 per share ("Common Stock"), subject to
certain restrictions ("Restricted Stock"); and

      WHEREAS, the Nominating and Corporate Governance Committee of the Board of
Directors of the Company (the "Board") and the full Board have determined that
it would be to the advantage and in the best interest of the Company and its
stockholders to award shares of Restricted Stock to the Participant pursuant to
the terms and conditions set forth herein; and

      NOW, THEREFORE, in consideration of the mutual covenants herein contained
and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties hereto do hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

1.1 IN GENERAL. Capitalized terms used but not defined herein shall have the
meanings assigned to such terms in the Plan.

1.2 "RESTRICTIONS" shall mean the restrictions on sale or other transfer set
forth in Section 4.2 and the exposure to forfeiture set forth in Section 3.1.

                                   ARTICLE II
                             RESTRICTED STOCK AWARD

2.1 AWARD OF RESTRICTED STOCK. In consideration of the Participant's services on
the Board, in exchange for the promises contained herein, and for other good and
valuable consideration which the Board has determined exceeds the aggregate par
value of the shares of Common Stock subject to the Award (as defined below), as
of the Award Date, the Company issues to the Participant the number of shares of
Restricted Stock set forth on the signature page hereof (the "Award").

2.2 AWARD SUBJECT TO PLAN. The Award granted hereunder is subject to the terms
and provisions of the Plan, including without limitation Section 10 thereof.

<PAGE>

                                   ARTICLE III
                                  RESTRICTIONS

3.1 FORFEITURE.

      Unless otherwise provided by written agreement between the Company and
Participant, any Award which is not vested as of ________shall thereupon be
forfeited immediately and without any further action by the Company. Any portion
of an Award that is not vested at the time the Participant ceases to serve on
the Board for any reason shall thereupon be forfeited immediately and without
further action by the Company.

      3.2 VESTING AND LAPSE OF RESTRICTIONS. Subject to Section 3.1, the Award
(or portions thereof) shall vest as follows:

      [                                 ]
      [                                 ]
      [                                 ]

3.3 LEGEND. Until such time as Restrictions have lapsed, the Company may, at any
time, place legends referencing the Restrictions and any applicable federal
and/or state securities laws restrictions on certificates representing shares of
Restricted Stock issued pursuant to this Agreement. The legend may include the
following:

      "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
      RESTRICTIONS SET FORTH IN THE AWARD AGREEMENT BETWEEN THE CORPORATION AND
      THE REGISTERED HOLDER, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE
      OF THE CORPORATION."

3.4 PAYMENT OF TAXES; ISSUANCE OF SHARES.

      (a) Participant understands, acknowledges and agrees that the value of the
Restricted Stock is subject to state and federal income taxes and certain rules
which require the Company to withhold amounts necessary to pay these taxes. If
the Company in its discretion determines that it is obligated to withhold any
tax in connection with the vesting or transfer of the Award or any shares of the
Restricted Stock, or the making of a distribution or other payment with respect
to the Restricted Stock, participant hereby authorizes the Company to, in the
Company's discretion, (i) reduce the number of shares of Restricted Stock (or
other property) delivered to Participant at the time the restrictions lapse by
the number of shares of Restricted Stock (or other property) required to satisfy
the tax withholding requirements (based on the fair market value of shares or
other property at such time), or (ii) withhold from the Participant's board fees
the appropriate amount of tax. Such shares of Restricted Stock withheld pursuant
to clause (i) above shall be returned to the Company. Participant's
acknowledgement and acceptance of these tax withholding provisions are
conditions precedent to the right of Participant to receive the Restricted Stock
under the Plan and this Agreement.

      (b) In lieu of either the reduction of shares or other property delivered
or the withholding of board fees described in paragraph (a) above, Participant
may pay to the Company the amount of tax required to be withheld in cash, by
check or in other form satisfactory to the Company. Such payment must be made by
the date on which the Restrictions lapse or such later

                                       2

<PAGE>

date as is established by the Company (not to exceed 15 days after the date on
which the Restrictions lapse).

      (c) The Shares will be released to the Participant when vested and the
applicable withholding obligations have been satisfied.

3.5. CERTAIN CHANGES IN CAPITALIZATION AND REORGANIZATION EVENTS. Section 9 of
the Plan shall govern the treatment of the Award in the event of certain Changes
in Capitalization and Reorganization Events.

3.6 SECTION 83(b) ELECTION. Participant understands that Section 83(a) of the
Code taxes as ordinary income the difference between the amount, if any, paid
for the shares of Common Stock and the Fair Market Value of such shares at the
time the Restrictions on such shares lapse. Participant understands that,
notwithstanding the preceding sentence, Participant may elect to be taxed at the
time of the Award Date, rather that at the time the Restrictions lapse, by
filing an election under Section 83(b) of the Code (an "83(b) Election") with
the Internal Revenue Service within 30 days of the Award Date. In the event
Participant files an 83(b) Election, Participant will recognize ordinary income
in an amount equal to the difference between the amount, if any, paid for the
shares of Common Stock and the Fair Market Value of such shares as of the Award
Date. Participant further understands that an additional copy of such 83(b)
Election form should be filed with his or her federal income tax return for the
calendar year in which the date of this Agreement falls. Participant
acknowledges that the foregoing is only a summary of the effect of United States
federal income taxation with respect to the award of Restricted Stock hereunder,
and does not purport to be complete. PARTICIPANT FURTHER ACKNOWLEDGES THAT THE
COMPANY IS NOT RESPONSIBLE FOR FILING THE PARTICIPANT'S 83(b) ELECTION, AND THE
COMPANY HAS DIRECTED PARTICIPANT TO SEEK INDEPENDENT ADVICE REGARDING THE
APPLICABLE PROVISIONS OF THE CODE, THE INCOME TAX LAWS OF ANY MUNICIPALITY,
STATE OR FEDERAL GOVERNMENT OR FOREIGN COUNTRY IN WHICH PARTICIPANT MAY RESIDE,
AND THE TAX CONSEQUENCES OF PARTICIPANT'S DEATH.

                                   ARTICLE IV
                                OTHER PROVISIONS

4.1 STOCK CERTIFICATES. Stock certificates issued in respect of this Award shall
be registered in the name of the Participant and shall be deposited in escrow
with the escrow agent appointed by the Company; provided, however, that in no
event shall the Participant retain physical custody of any certificates
representing unvested Restricted Stock issued such Participant. The deposited
certificates shall remain in escrow until all Restrictions lapse or have been
removed. The Participant shall, upon the execution of this Agreement, execute
Joint Escrow Instructions in the form attached to this Agreement as Exhibit A.
The Joint Escrow Instructions shall be delivered to escrow agent named therein.
The Participant shall deliver to such escrow agent a stock assignment duly
endorsed in blank, in the form attached to this Agreement as Exhibit B, and
hereby instructs the Company to deliver to such escrow agent, on behalf of the
Participant, the certificate(s) evidencing the Restricted Stock issued
hereunder. Such materials shall be held by such escrow agent pursuant to the
terms of such Joint Escrow Instructions.

4.2 RESTRICTED STOCK NOT TRANSFERABLE. Prior to vesting pursuant to Section 3.2
above, no Restricted Stock or any interest or right therein or part thereof
shall be liable for the debts,

                                       3

<PAGE>

contracts or engagements of the Participant or his successors in interest or
shall be subject to disposition by transfer, alienation, anticipation, pledge,
encumbrance, assignment or any other means whether such disposition be voluntary
or involuntary or by operation of law by judgment, levy, attachment, garnishment
or any other legal or equitable proceedings (including bankruptcy), and any
attempted disposition thereof shall be null and void and of no effect; provided,
however, that this Section 4.2 shall not prevent transfers by will or by
applicable laws of descent and distribution.

4.3 RIGHTS AS STOCKHOLDER. No Participant shall have any rights as a stockholder
with respect to any shares of Common Stock to be distributed with respect to an
Award until becoming the record holder of such shares.

4.4 GOVERNING LAW. The laws of the Commonwealth of Massachusetts shall govern
the interpretation, validity, administration, enforcement and performance of the
terms of this Agreement regardless of the law that might be applied under
principles of conflicts of laws.

4.5 CONFORMITY TO SECURITIES LAWS. The Participant acknowledges that the Plan
and this Agreement are intended to conform to the extent necessary with all
provisions of the Securities Act of 1933, as amended, and the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and any and all
regulations and rules promulgated thereunder by the Securities and Exchange
Commission, including without limitation Rule 16b-3 under the Exchange Act.
Notwithstanding anything herein to the contrary, the Plan shall be administered,
and the Awards are granted, only in such a manner as to conform to such laws,
rules and regulations. To the extent permitted by applicable law, the Plan and
this Agreement shall be deemed amended to the extent necessary to conform to
such laws, rules and regulations.

4.6 AMENDMENT, SUSPENSION AND TERMINATION. The Awards may be wholly or partially
amended or otherwise modified, suspended or terminated at any time or from time
to time by the Board, provided that, except as may otherwise be provided by the
Plan, neither the amendment, suspension nor termination of this Agreement shall,
without the consent of the Participant, alter or impair any rights or
obligations under any Award.

4.7 NOTICES. Notices required or permitted hereunder shall be given in writing
and shall be deemed effectively given upon personal delivery or upon deposit in
the United States mail by certified mail, with postage and fees prepaid,
addressed to the Participant to his address shown in the Company records, and to
the Company at its principal executive office.

4.8 SEVERABILITY. The invalidity or unenforceability of any paragraph or
provision of this Agreement shall not affect the validity or enforceability of
any other paragraph or provision, and all other provisions shall remain in full
force and effect. If any provision of this Agreement is held to be excessively
broad, then such provision shall be reformed and construed by limiting and
reducing it so as to be enforceable to the maximum extent permitted by law.

4.9 NO OBLIGATION TO CONTINUE BUSINESS RELATIONSHIP. Neither the Plan, this
Agreement, nor the grant of this Award imposes any obligation on the Company to
continue to maintain a business relationship with the Participant.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       4

<PAGE>

IN WITNESS WHEREOF, this Agreement has been executed and delivered by the
parties hereto.

                                        PAREXEL INTERNATIONAL CORPORATION

                                        By:_____________________________________
                                        Name:
                                        Title:

                                        Signed:_________________________________
                                        [Participant's Typed Name]

Aggregate number of shares of Restricted Stock subject to the Award:____________

                                       5

<PAGE>

                                    Exhibit A

                        PAREXEL International Corporation

                            Joint Escrow Instructions

                                                                 _________, 200_

W. Brett Davis
Associate General Counsel
PAREXEL International Corporation
200 West Street
Waltham, MA 02451

Dear Sir:

      As Escrow Agent for PAREXEL International Corporation, a Massachusetts
corporation, and its successors in interest under the Restricted Stock Agreement
(the "Agreement") of even date herewith, to which a copy of these Joint Escrow
Instructions is attached (the "Company"), and the undersigned person ("Holder"),
you are hereby authorized and directed to hold the documents delivered to you
pursuant to the terms of the Agreement in accordance with the following
instructions:

1.    Appointment. Holder irrevocably authorizes the Company to deposit with you
      any certificates evidencing Restricted Stock (as defined in the Agreement)
      to be held by you hereunder and any additions and substitutions to said
      Restricted Stock. For purposes of these Joint Escrow Instructions,
      "Restricted Stock" shall be deemed to include any additional or substitute
      property. Holder does hereby irrevocably constitute and appoint you as his
      attorney-in-fact and agent for the term of this escrow to execute with
      respect to such Restricted Stock all documents necessary or appropriate to
      make such Restricted Stock negotiable and to complete any transaction
      herein contemplated. Subject to the provisions of this Section 1 and the
      terms of the Agreement, Holder shall exercise all rights and privileges of
      a stockholder of the Company while the Restricted Stock is held by you.

2.    Closing of Purchase.

      (a) Upon the exercise of any forfeiture rights by the Company of the
      Restricted Stock pursuant to the Agreement, the Company shall give to
      Holder and you a written notice pursuant to the Agreement. Holder and the
      Company hereby irrevocably authorize and direct you to close the
      transaction contemplated by such notice in accordance with the terms of
      said notice (the "Closing").

                                       6

<PAGE>

      (b) At the Closing, you are directed (i) to date the stock assignment form
      or forms necessary for the transfer of the Restricted Stock, (ii) to fill
      in on such form or forms the number of Restricted Stock being transferred,
      and (iii) to deliver same, together with the certificate or certificates
      evidencing the Restricted Stock to be transferred, to the Company.

3.    Withdrawal. The Holder shall have the right at any time to withdraw from
      this escrow any Restricted Stock which is no longer subject to forfeiture.

4.    Duties of Escrow Agent.

      (a) Your duties hereunder may be altered, amended, modified or revoked
      only by a writing signed by all of the parties hereto.

      (b) You shall be obligated only for the performance of such duties as are
      specifically set forth herein and may rely and shall be protected in
      relying or refraining from acting on any instrument reasonably believed by
      you to be genuine and to have been signed or presented by the proper party
      or parties. You shall not be personally liable for any act you may do or
      omit to do hereunder as Escrow Agent or as attorney-in-fact of Holder
      while acting in good faith and in the exercise of your own good judgment,
      and any act done or omitted by you pursuant to the advice of your own
      attorneys shall be conclusive evidence of such good faith.

      (c) You are hereby expressly authorized to disregard any and all warnings
      given by any of the parties hereto or by any other person or entity,
      excepting only orders or process of courts of law, and are hereby
      expressly authorized to comply with and obey orders, judgments or decrees
      of any court. If you are uncertain of any actions to be taken or
      instructions to be followed, you may refuse to act in the absence of an
      order, judgment or decrees of a court. In case you obey or comply with any
      such order, judgment or decree of any court, you shall not be liable to
      any of the parties hereto or to any other person or entity, by reason of
      such compliance, notwithstanding any such order, judgment or decree being
      subsequently reversed, modified, annulled, set aside, vacated or found to
      have been entered without jurisdiction.

      (d) You shall not be liable in any respect on account of the identity,
      authority or rights of the parties executing or delivering or purporting
      to execute or deliver the Agreement or any documents or papers deposited
      or called for hereunder.

      (e) You shall be entitled to employ such legal counsel and other experts
      as you may deem necessary properly to advise you in connection with your
      obligations hereunder and may rely upon the advice of such counsel.

      (f) Your rights and responsibilities as Escrow Agent hereunder shall
      terminate if (i) you cease to be an employee of the Company or (ii) you
      resign by written notice to each party. In the event of a termination
      under clause (i), the Secretary of the Company or its designee shall
      become Escrow Agent hereunder; in the event of a termination under clause
      (ii), the Company shall appoint a successor Escrow Agent hereunder.

                                       7

<PAGE>

      (g) If you reasonably require other or further instruments in connection
      with these Joint Escrow Instructions or obligations in respect hereto, the
      necessary parties hereto shall join in furnishing such instruments.

      (h) It is understood and agreed that if you believe a dispute has arisen
      with respect to the delivery and/or ownership or right of possession of
      the securities held by you hereunder, you are authorized and directed to
      retain in your possession without liability to anyone all or any part of
      said securities until such dispute shall have been settled either by
      mutual written agreement of the parties concerned or by a final order,
      decree or judgment of a court of competent jurisdiction after the time for
      appeal has expired and no appeal has been perfected, but you shall be
      under no duty whatsoever to institute or defend any such proceedings.

      (i) These Joint Escrow Instructions set forth your sole duties with
      respect to any and all matters pertinent hereto and no implied duties or
      obligations shall be read into these Joint Escrow Instructions against
      you.

      (j) The Company shall indemnify you and hold you harmless against any and
      all damages, losses, liabilities, costs, and expenses, including
      attorneys' fees and disbursements, (including without limitation the fees
      of counsel retained pursuant to Section 4(e) above, for anything done or
      omitted to be done by you as Escrow Agent in connection with this
      Agreement or the performance of your duties hereunder, except such as
      shall result from your gross negligence or willful misconduct.

5.    Notice. Any notice required or permitted hereunder shall be given in
      writing and shall be deemed effectively given upon personal delivery or
      upon deposit in the United States Post Office, by registered or certified
      mail with postage and fees prepaid, addressed to each of the other parties
      thereunto entitled at the following addresses, or at such other addresses
      as a party may designate by ten days' advance written notice to each of
      the other parties hereto.

                COMPANY:             Notices to the Company shall be sent to
                                     the address set forth in the salutation
                                     hereto, Attn: Chief Financial Officer

                HOLDER:              Notices to Holder shall be sent to the
                                     address set forth below Holder's signature
                                     below.

                ESCROW AGENT:        Notices to the Escrow Agent shall be sent
                                     to the address set forth in the salutation
                                     hereto.

6.    Miscellaneous.

      (a) By signing these Joint Escrow Instructions, you become a party hereto
      only for the purpose of said Joint Escrow Instructions, and you do not
      become a party to the Agreement.

                                       8

<PAGE>

      (b) This instrument shall be binding upon and inure to the benefit of the
      parties hereto and their respective successors and permitted assigns.

                                        Very truly yours,

                                        PAREXEL International Corporation

                                        By:_____________________________________

                                        Title:__________________________________

                                        HOLDER:

                                        ________________________________________
                                                     (Signature)

                                        ________________________________________
                                                      Print Name

                                        Address:  ______________________________

                                                  ______________________________

                                        Date Signed:____________________________

ESCROW AGENT:
_______________________________

                                        9

<PAGE>

                                    Exhibit B

                                    (STOCK ASSIGNMENT SEPARATE FROM CERTIFICATE)

      FOR VALUE RECEIVED, I hereby sell, assign and transfer unto PAREXEL
International Corporation (_________) shares of Common Stock, $0.01 par value
per share, of PAREXEL International Corporation (the "Corporation") standing in
my name on the books of the Corporation represented by Certificate(s) Number
__________ herewith, and do hereby irrevocably constitute and appoint
______________________ attorney to transfer the said stock on the books of the
Corporation with full power of substitution in the premises.

                                                 Dated:_________________________

                                                 _______________________________

                                                 _______________________________

                                       10

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