Document:

Exhibit 10.1

 

ADAPTEC,
INC.

 

Adaptec
Incentive Plan Document

Fiscal
Year 2006

 

1.                                      Plan
Name and Effective Date

 

The name of the plan is the Adaptec Incentive Plan (the “AIP”). The AIP
is effective for Adaptec’s 2006 fiscal year from April 1, 2005 through March 31,
2006 (“Fiscal Year 2006”).

 

2.                                      Purpose

 

The purpose of the AIP is to provide a direct financial incentive for
eligible executives, managers and individual contributors to make a significant
contribution to Adaptec’s established goals in order to help Adaptec’s
stockholders realize increased value from their investment.

 

3.                                      Eligibility

 

All full or part-time exempt employees in grade 21 and above are
eligible to participate in the AIP. Employees in grades 21 and above working in
Singapore are not eligible to participate in the AIP except for 8 or 9 key
managers and executives as determined by management. All eligible employees
must have worked for Adaptec at least six months and must still be an employee
of Adaptec at the time payments are made, as discussed below, in order to
qualify to participate in the AIP. Commissioned sales employees, temporary
employees and independent contractors are not eligible to participate in the
AIP.  All Adaptec employees that are
eligible to participate in the AIP are deemed to be “Participants” in the AIP.

 

4.                                      Timing
of AIP Payments

 

Except for holdback payments as described in Section 8 below,
payments that become due under the AIP will be paid to Participants as soon as
administratively feasible after the overall budget is approved by the
Compensation Committee of Adaptec’s Board of Directors (“the Compensation
Committee”) following the close of the second quarter of Fiscal Year 2006 or
the fourth quarter of Fiscal Year 2006, as applicable.

 

5.                                      Funding the AIP Pool

 

The AIP reinforces two key goals that support Adaptec’s strategic
plans: maximizing Adaptec’s revenue (“Revenue”) and maximizing Adaptec’s
Operating Profit Before Taxes (“OPBT”). 
In order for the Compensation Committee to fund the AIP incentive pool
(the “AIP Pool”) and in order for Participants to be eligible to receive
payments 

 

 

from the AIP Pool, Revenue and OPBT each must meet minimum thresholds
as determined by the Compensation Committee.

 

The matrix for determining the size of the AIP Pool for Adaptec’s Q1
and Q2 performance is set forth in Chart A and the matrix for determining the
size of the AIP Pool for Adaptec’s Q3 and Q4 performance is in the process of
being finalized by the Compensation Committee. The size of the AIP Pool will be
determined by the amount that each of Adaptec’s Revenue and OPBT exceeds the
minimum thresholds established by the Compensation Committee; as Revenue and
OPBT increase, the AIP Pool will increase as set forth in Chart A. Revenue and
OPBT are each weighted equally in determining the size of the AIP Pool.  In addition, the Compensation Committee may
increase or decrease the size of the AIP Pool by 25% based on Adaptec’s
performance during Fiscal Year 2006.

 

If the Revenue and OPBT minimum thresholds set by the Compensation
Committee are both not met, then no AIP Pool will be established.
Notwithstanding the foregoing, in extraordinary and extenuating circumstances,
the Compensation Committee may determine to fund the AIP Pool and make payments
to Participants if Revenue and/or OPBT do not meet the established minimum
thresholds.  In all cases, the
Compensation Committee must review and approve the funding of the AIP Pool.

 

Chart A

 

Q1 and Q2

 

	
  AIP Pool

  	
   

  	
  Revenue

  	
   

  	
  OPBT

  	
   

  
	
  (in millions)

  	
   

  	
  (in millions)

  	
   

  	
  (in millions)

  	
   

  
	
  5.00

  	
   

  	
  A + 100.0

  	
   

  	
  B + 25.0

  	
   

  
	
  2.50

  	
   

  	
  A + 90.0

  	
   

  	
  B + 22.5

  	
   

  
	
  0.00

  	
   

  	
  A + 80.0

  	
   

  	
  B + 20.0

  	
   

  
	
  0.00

  	
   

  	
  A + 70.0

  	
   

  	
  B + 17.5

  	
   

  
	
  0.00

  	
   

  	
  A + 60.0

  	
   

  	
  B + 15.0

  	
   

  
	
  0.00

  	
   

  	
  A + 50.0

  	
   

  	
  B + 12.5

  	
   

  
	
  0.00

  	
   

  	
  A + 40.0

  	
   

  	
  B + 10.0

  	
   

  
	
  0.00

  	
   

  	
  A + 30.0

  	
   

  	
  B + 7.5

  	
   

  
	
  0.00

  	
   

  	
  A + 20.0

  	
   

  	
  B + 5.0

  	
   

  
	
  0.00

  	
   

  	
  A + 10.0

  	
   

  	
  B + 2.5

  	
   

  
	
  0.00

  	
   

  	
  A

  	
   

  	
  B

  	
   

  

 

6.                                      Calculation
of Payments

 

Chart B shows the targeted incentives by a Participant’s grade/position
and as a percentage of a Participant’s base salary if Adaptec were to reach the
100% funding level set forth in Chart A. Chart B also shows what percentage of
the eligible employee population would be targeted to receive an incentive
payment.

 

 

Chart B

 

Participants: AIP Payments (for six months)

 

	
  Grade/Position

  	
   

  	
  Target % of Base Salary

  	
   

  	
  Target Receiving

  	
   

  
	
  Chief Executive
  Officer

  	
   

  	
  85

  	
  %

  	
  100

  	
  %

  
	
  President

  	
   

  	
  75

  	
  %

  	
  100

  	
  %

  
	
  Chief
  Financial Officer

  	
   

  	
  60

  	
  %

  	
  100

  	
  %

  
	
  Vice
  President/General Manager

  	
   

  	
  50

  	
  %

  	
  100

  	
  %

  
	
  Vice
  President

  	
   

  	
  40

  	
  %

  	
  100

  	
  %

  
	
  31-33

  	
   

  	
  25

  	
  %

  	
  70-90

  	
  %

  
	
  29-30

  	
   

  	
  15

  	
  %

  	
  70-90

  	
  %

  
	
  27-28

  	
   

  	
  12

  	
  %

  	
  70-90

  	
  %

  
	
  24-26

  	
   

  	
  10

  	
  %

  	
  70-90

  	
  %

  
	
  21-23

  	
   

  	
  8

  	
  %

  	
  70-90

  	
  %

  

 

 

7.                                      AIP
Payments

 

Once the AIP Pool amount is determined for each six-month period, the
actual payment to a Participant is based on the Participant’s performance and
can range from 0 to 200% of target incentive amount. In no case will the sum of
all payments exceed the amount funded by the AIP. All payments from the AIP
Pool made to Section 16(b) officers of Adaptec will be recommended by
Adaptec’s CEO and will be reviewed by the Compensation Committee. In addition,
the Compensation Committee will approve the CEO’s payment from the AIP Pool.

 

8.                                      Holdback
AIP Payments for Executive Participants

 

Payments under the AIP that are to be made to Participants with a
position of Vice President or higher (“Executive Participants”) for first and
second fiscal quarter achievements will be paid as follows.  Fifty percent (50%) of payments earned by
Executive Participants during the first half of Fiscal Year 2006 will be paid
at the same time as AIP payments are made to other Participants and fifty
percent (50%) will be held back pending the performance of Adaptec in the
second half of Fiscal Year 2006. This holdback will be paid to Executive
Participants at the same time that other Participants receive payments under
the AIP following the close of the fourth quarter of Fiscal Year 2006 and could
be funded at 0% to 150% depending on how Adaptec performs relative to the
Revenue and OPBT thresholds established by the Compensation Committee.Exhibit 10.1

 

Employment Contract

 

TGC INDUSTRIES, INC.

 

(Whitener)

 

This Contract is entered into between TGC
Industries, Inc., a Texas corporation (hereafter called “Company”), and Wayne A. Whitener (hereafter called “Employee”).

 

Company is engaged in the business of providing seismic data
acquisition services primarily to domestic onshore oil and natural gas
exploration and production companies. 
Company desires to retain the services of Employee as one of its key
executives, and Employee is willing and able to perform in that capacity.

 

Accordingly, in consideration of the mutual covenants herein contained,
the parties to this Contract agree as follows:

 

1.   Employment.  Company hereby continues the employment of
Employee, and Employee hereby accepts such employment from Company, pursuant to
those provisions herein contained.

 

2.   Term of Employment.  Subject to the provisions for termination
hereafter provided, this Contract shall be for a term of two (2) years
beginning on August 1, 2005,
and ending on July 31, 2007.  By a subsequent agreement in writing signed
by both parties, this Contract may be extended for one or more additional terms
as agreed upon by the parties hereto.

 

3.   Duties of Employee.  Employee is employed as President and Chief
Executive Officer of Company.  Employee
shall devote substantially all of his time, attention, best efforts, and energy
to the business of Company, and may not, during the term of this Contract, be
engaged in any other material business activities which interfere with his
ability to carry out his obligations hereunder. 
However, such restriction shall not be construed as preventing Employee
from making investments in (non-competitive) business enterprises so long as
Employee will not be required to render personal services to any such business
enterprises during Employee’s normal business hours with Company.

 

4.   Compensation.  To the extent Employee continues to comply
with all of the provisions of this Contract (including the covenants referenced
in paragraph 9 below and contained in Exhibit ”A”
attached hereto):

 

 

a.   Base Salary.  Company shall pay to Employee a minimum base
salary of $175,000 per year
payable in twenty-six (26) equal payments of $6,730.77
(or in accordance with such other sequence of payments as determined by Company’s
then existing payroll policies), from which federal withholding and social
security taxes will be deducted; and

 

b.   Performance Bonus.  At the end of each calendar year, Company’s
Board of Directors will make a determination as to whether the results of
Company’s operations for such preceding calendar year warrant the payment to
Employee of a special performance bonus. 
If so, Employee shall be entitled to receive, in addition to the base
salary referred above, a special performance bonus in such amount as is
determined by the Board of Directors in the exercise of their sole discretion
(up to a maximum of $175,000).

 

c.   Increases.  The Board of Directors of Company may, at any
time, elect to increase Employee’s Base Salary above the amount referred to in
subparagraph “a.” above (in which event the ceiling on Employee’s Performance
Bonus under subparagraph “b.” above shall be similarly increased).

 

5.   Fringe Benefits.  During the period that Employee continues to
comply with all of the provisions of this Contract, Employee shall receive the
following fringe benefits:

 

a.   Medical Benefits.  Employee and his dependent family members
shall be covered under the same group hospitalization, accident, and major
medical plans as Company provides from time to time for other officers;
provided, however, that (i) Employee shall pay the same portion of the
cost thereof as may be required from Company’s officers generally, and (ii) Employee
shall apply for and elect to participate in Medicare parts A and B, at his own
expense, as soon as he shall become eligible to do so;

 

b.  Paid Vacation.  Each calendar year (or portion thereof),
Employee may take a vacation of four (4) weeks during which time his
compensation shall be paid in full;

 

c.  Automobile.  Company shall provide an automobile for
Employee’s use in connection with the services to be rendered by Employee to
Company.  Company shall pay or reimburse
Employee for maintenance and repair expenses of the automobile upon submission of
vouchers or itemized lists of such expenses prepared in compliance with Company’s
policy.  For so long as Company owns (or
leases) the automobile, Company shall insure the automobile with adequate
automobile insurance company coverage. 
Company agrees that Employee shall be designated as an additional
insured on any Company provided policy providing liability insurance
coverage.  In the event the automobile is
damaged or destroyed

 

2

 

by reason of accident, theft, vandalism, or otherwise, Employee will
not have any liability to Company for any such loss or damage (including
out-of-pocket deductibles); and

 

d.  Other Benefits.  No provision of this Contract shall preclude
Employee from participating in any fringe benefit plan now in effect or
hereafter adopted by Company, but Company shall be under no obligation to
provide for his participation in, or to institute, any such plan or to make any
contribution under any such plan, unless such opportunities are provided to all
Company employees as a group, or to all of Company’s senior officers as a
group.

 

6.   Business Expenses.  Employee may incur reasonable expenses in
connection with the promotion of Company’s business including expenses for
entertainment, travel, and similar items. 
Company agrees to reimburse Employee for all such reasonable expenses
upon the presentation by Employee, from time to time as required by Company, of
an itemized account of such expenditures; provided, however, Employee shall not
expend any sums in excess of those amounts permitted by the Internal Revenue
Code of 1986, as amended, without prior written approval from Company’s Board
of Directors.

 

7.   Key-Man Insurance.  The parties agree that Company shall continue
to own (and pay for) life insurance on Employee’s life in the amount of one
million dollars ($1,000,000).  Employee
agrees that he shall, at Company’s request, submit to such medical
examinations, supply such information, and execute such documents as may be
requested by the insuring company or companies. 
It is agreed and understood that if Employee dies during the term of
this Contract, the full amount of the proceeds payable under any such policy
will be receivable solely by Company.

 

8.   Termination of Employment.

 

a.   By Company.

 

(1)   Date of Termination.  Company may at any time terminate this
Contract, in which event Employee shall leave the premises on such date (the “Date of Termination”) as is specified by
Company in the notice of termination (which date can be as early as the date of
such notice).

 

(2)   For Cause.  If such termination is “for cause,” Company will have no
obligation to pay to Employee any compensation or fringe benefits following the
Date of Termination.  For purposes of the
preceding sentence, the phrase “for cause”
will be deemed to mean:

 

(a) 
absence from Company’s offices, physical or mental illness, or any other
reason, for any successive period of forty-five (45) days, or for a total
period of ninety (90) days in any one of

 

3

 

Company’s fiscal years (except
that any vacation periods, travel on Company business, or leaves of absence
specifically granted by Company’s Board of Directors shall not be considered as
periods of absence from employment);

 

(b) 
Employee’s commission of an act of gross negligence in the performance of his
duties or obligations hereunder;

 

(c) 
Employee’s commission of any act of fraud, malfeasance, disloyalty, or breach
of trust against the Company, or Employee fails to observe any covenant
referenced in paragraph 9 below or contained in Exhibit ”A” hereto;

 

(d) 
Employee’s refusal, or substantial inability, to perform the duties assigned in
good faith to him pursuant to paragraph 3 hereof;

 

(e) 
Employee dies or gives affirmative indication, in the opinion of a majority of
Company’s Board of Directors, that he no longer intends to abide by the terms
of this Contract; or

 

(f) 
Employee is guilty of acts of moral turpitude or dishonesty in Company’s
affairs, gross insubordination or the equivalent, or Employee violates, or
fails to comply with, any of the provisions of this Contract.

 

(3)   Not For Cause.  If such termination is based on any reason
other than “for cause,” Company
shall be obligated to pay to Employee:  (a) his
base salary during the remainder of the term of this Contract (on a monthly
basis at the same rate as payable immediately before the Date of Termination);
and (b) the full amount of the Performance Bonus referred to in paragraph
4.b. above which would have been received by Employee during the remainder of
the term of this Contract if such termination had not occurred.

 

(a) 
Included within the definition of a termination of Employee other than “for cause” will be a “Change in Control of Company.”  For purposes of this Contract, the term “Change in Control of Company” will mean:

 

(i)  the
consummation of any consolidation or merger of Company into or with another
corporation or other legal person, and as a result of such consolidation or
merger less than a majority of the combined voting power

 

4

 

of the then-outstanding
securities of such corporation or person immediately after such transaction are
held in the aggregate by holders of Voting Stock (as defined below) of Company
immediately prior to such transaction;

 

(ii)  any
sale, lease, exchange, or other transfer, whether in one transaction or any
series of related transactions, of all or significant portions of the assets of
Company to any other corporation or other legal persons, less than a majority
of the combined voting power of the then-outstanding securities of such
corporation or person immediately after such sale, lease, exchange, or transfer
is held in the aggregate by the holders of Voting Stock of Company immediately
prior to such sale, lease, exchange, or transfers;

 

(iii) 
the shareholders of Company approve any plan for the liquidation or dissolution
of Company;

 

(iv)  any
person (as such term is used in Sections 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)), becomes, either
directly or indirectly, the beneficial owner (within the meaning of Rule 13d-3
under the Exchange Act) of securities representing more than 50% of the
combined voting power of the then-outstanding securities entitled to vote
generally in the election of directors of Company (“Voting Stock”); or

 

(v)  if
at any time during a fiscal year a majority of the Board of Directors are
replaced by persons who were not recommended for those positions by at least
two-thirds of the directors of Company who were directors of Company at the
beginning of the fiscal year.

 

Notwithstanding
the preceding, a “Change of Control” shall not be deemed to have occurred with
respect to any of the foregoing transactions conducted by any employee benefit
plan (or related trust) sponsored or maintained by Company, any corporation
controlled by Company, or any affiliate of Company.

 

(b)  If,
at the time of termination, Company was providing an automobile to Employee
under paragraph 5.c. above, then, for a consideration of Ten Dollars ($10.00)
cash paid by Employee to

 

5

 

Company, the following shall
apply:  (i) if Company owned the
automobile, Company shall transfer the title (free and clear of any liens or
other encumbrances) to Employee (along with any insurance coverage [if
assignable]); and (ii) if Company was leasing such automobile, Company
shall assign to employee all of its right, title, and interest in and to such
lease.

 

(c) 
Employee shall not be required to mitigate the amount of any payment provided
for in this subparagraph 3) by seeking other employment or otherwise, nor
shall the amount of any payment provided for in this subparagraph 3) be
reduced by any compensation earned by Employee as the result of self-employment
or employment by another employer.

 

b.   By Employee.  If such termination is caused by Employee for
any reason, Company will have no obligation to pay to Employee any compensation
or fringe benefits following the Date of Termination.

 

9.   Disclosure of Confidential Information; Covenant Not To
Compete.  Company
possesses secret and confidential equipment, techniques, processes, procedures,
technical data and information, and customer lists used or intended for
utilization in its operations of which Employee has obtained or may obtain
knowledge, and Company would suffer serious harm if this confidential
information were disclosed or if Employee used this information to compete
against Company.  Accordingly, Employee
hereby agrees that simultaneously with the execution of this Contract he shall
execute and deliver to Company and thereafter abide by the terms of a “Confidentiality Agreement and Covenant Not to Compete”
a copy of which is attached hereto as Exhibit ”A”
and incorporated herein by reference.

 

10.   Remedies. 
Employee agrees that in the event of his breach of his covenants and
agreements contained or referenced in this Contract, Company shall be entitled
to obtain injunctive or similar relief from a court of competent
jurisdiction.  The covenants contained in
Exhibit ”A” hereof shall be
construed as agreements independent of any other agreements between Company and
Employee, and the existence of any claim or cause of action of Employee against
Company, whether predicated on this Contract or otherwise, shall not constitute
a defense to the enforcement by Company of those covenants and agreements.  Company shall be entitled to reasonable attorneys’
fees and related legal costs in the event of a breach, or attempted breach, of
such covenants by Employee.  The remedies
of Company and Employee under this Contract are cumulative and will not exclude
any other remedies to which any party may be entitled hereunder, including a
right of offset, whether at law or in equity.

 

11.   Notices. 
All notices allowed or required to be given hereunder must be in writing
and dispatched by United States certified mail, return receipt requested, to
the

 

6

 

address of the party entitled
to such notice shown at the end of this Contract.  Either party hereto may change the address to
which any such notice is to be addressed by giving notice in writing to the
other party of such change.  Any time
limitation provided for in this Contract shall commence with the date that the
party actually receives such written notice, and the date or postmark of any
return receipt indicating the date of delivery of such notice to the addressee
shall be conclusive evidence of such receipt. 
In addition to the parties hereto, copies of all notices should be sent
to:

 

Mr. William J. Barrett

c/o Barrett-Gardner Associates, Inc.

636 River Road

P. O. Box 6199

Fair Haven, NJ  07704

 

Haynes and Boone, LLP

201 Main Street, Suite 201

Fort Worth, Texas 76102

Attn:  
Rice M. Tilley, Jr., Esq.

 

12.   Assignment.  Neither Employee nor anyone claiming under
him may commute, encumber, or dispose of the right to receive benefits
hereunder.  Such right to receive
benefits hereunder is expressly declared to be non-assignable and non-transferable
by Employee, and in the event of any attempted assignment or transfer, Company
shall have no further liability hereunder; provided, however, the foregoing
shall not apply to assignments by operation of law, such as to a guardian or to
an executor of Employee’s estate.

 

13.   Waiver. 
The waiver by Company of Employee’s breach of any provision hereof shall
not operate or be construed as a waiver of any subsequent breach by Employee.

 

14.   Binding Effect.  This Contract shall be binding upon the
parties hereto and their heirs, successors, executors, administrators, personal
representatives, and (except as provided in paragraph 12) assigns.

 

15.   Survival of Provisions.  All provisions of this Contract, including
all representations, warranties, covenants, and agreements contained or
referenced herein, will survive the execution and delivery hereof and any
investigation of the parties with respect thereto.  The provisions of paragraphs 9 and 10,
and Exhibit ”A,” will survive
the termination or amendment of this Contract.

 

16.   Validity. 
If any provision of this Contract is held by a court of law to be
illegal or unenforceable, the remaining provisions of the Contract will remain
in full force and effect.  In lieu of
such illegal or unenforceable provision, there shall be added

 

7

 

automatically as a part of this
Contract a provision as similar in terms to such illegal or unenforceable
provision as may be possible and be legal and enforceable.

 

17.   Amendments.  This Contract may be amended at any time and
from time to time in whole or in part by an instrument in writing setting forth
the particulars of such amendment and duly executed by Company and Employee.

 

18.   Duplicate Originals.  This Contract has been executed in duplicate
originals, each of which for all purposes is to be deemed an original, and all
of which constitute, collectively, one agreement; but in making proof of this
Contract, it will not be necessary to produce or account for more than one such
duplicate.

 

19.   Captions. 
The captions or section headings of this Contract are provided for
convenience and shall not limit or affect the interpretation of this Contract.

 

20.   Governing Law.  This Agreement has been made in, and its
validity, interpretation, construction, and performance shall be governed by
and be in accordance with, the laws of the State of Texas, without reference to
its laws governing conflicts of law. 
Each party hereby irrevocably agrees that any legal action or
proceedings with respect to this Agreement may be brought in the courts of the
State of Texas, or in any United States District Court of Texas, and, by its
execution and delivery of this Agreement, each party hereby irrevocably submits
to each such jurisdiction and hereby irrevocably waives any and all objections
which it may have as to venue in any of the above courts.  Each party further consents and agrees that
any process or notice of motion or other application to either of said Courts
or any judge thereof, or any notice in connection with any proceedings
hereunder, may be served inside or outside the State of Texas by registered or
certified mail, return receipt requested, postage prepaid, and be effective as
of the receipt thereof, or in such other manner as may be permissible under the
rules of said Courts.

 

21.   Complete Understanding.  This Contract constitutes the complete
understanding between the parties hereto, except as otherwise expressly
provided or referenced herein, with respect to the employment of Employee.  This Contract supersedes all prior agreements
and understandings between the parties with respect to the subject matter
hereof.

 

8

 

IN
WITNESS WHEREOF, the parties have executed this
Contract to be effective August 1, 2005.

 

	
  COMPANY:

  	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  	
   

  
	
   

  	
  TGC INDUSTRIES, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   William J. Barrett,

  	
   

  	
   

  	
   

  	
  Wayne A. Whitener

  
	
   

  	
   

  	
   Director

  	
   

  	
   

  	
   

  	
  49 Sunrise Circle

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Pottsboro, Texas 75076

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date: August        , 2005

  	
   

  	
   

  	
   

  	
  Date: August        , 2005

  
								

 

9

 

Exhibit ”A”

to

Employment Contract

 

Confidentiality Agreement and

Covenant Not To Compete

 

Wayne A. Whitener
(hereafter called “Employee”) has
entered into an Employment Contract with TGC
Industries, Inc., a Texas corporation (hereafter called “Company”), which is in the business of
providing seismic data acquisition services primarily to domestic onshore oil
and natural gas exploration and production companies.

 

By signing this Agreement, Employee acknowledges his understanding of
the following:

 

A.                                   All companies have
information, generally not known outside the company, called “confidential information.” All companies
must conduct their businesses through their employees, and consequently many
employees must have access to confidential information.  At times the employee himself may generate
confidential information as a part of his job;

 

B.                                     The phrase “confidential information” as used in this
Agreement includes information known as, referred to, or considered to be,
trade secrets, and comprises, without limitation, any technical, economic,
financial marketing, computer program, computer software, computer data
(regardless of the medium on which they are stored), computer source and object
programs or codes, job operating control language procedures, data entry
utility programs, and miscellaneous utilities, disk record layouts, flow
charts, data entry input forms, operations and installation instructions,
report samples, data files, printouts, or other information about Company or
its business which is not common knowledge among competitors or other companies
who might like to possess such confidential information or might find it
useful.  Some examples of confidential
information include customer lists, price lists, details of training methods,
new products or new uses for old products, refining technology, contracts, and
licenses, purchasing, accounting, long-range planning, financial plans and
results, computer programs and operating manuals, computer source codes, and
any other information affecting or relating to the business of Company, its
manner of operation, its plans or processes. 
This list is merely illustrative, and the confidential information
covered by this Agreement is not limited to such illustrations; and

 

1

 

C.                                     Company’s
confidential information, including information referred to as, known as, or
considered to be, trade secrets, represents the most important, valuable, and
unique aspect of Company’s business, and it would be seriously damaged if
Employee breached the position of confidential trust in which Company has
placed him by disclosing such confidential information to others or by
departing and taking with him the aforesaid unique information compiled over a
period of time for the purpose of himself competing against Company or
disclosing such information to Company’s competitors, now existing or hereafter
formed.

 

Accordingly, in consideration of TEN DOLLARS ($10.00) cash in hand paid
to Employee by Company, the receipt and sufficiency of which are hereby
acknowledged, and Company’s agreement to employ him, Employee agrees as follows
(which will constitute an agreement ancillary to Employee’s Employment Contract
with Company):

 

1.                                       Confidential
information, including information referred to as, known as, or considered to
be, trade secrets, is proprietary to Company. 
Employee agrees to hold such information in strictest confidence, and
not to make use thereof except in performance of duties under the Employment
Contract.  Whether during or after his
employment with Company, Employee may not disclose to others (excepting Company
officers or employees having a need to know who have also signed a written
agreement expressly binding themselves not to use or disclose it) any
confidential information originated, known to, or acquired by Employee while
employed by Company.  Employee further agrees
during such period not to remove from the premises any of Company’s records or
other written or tangible materials, including without limitation computer
programs and floppy disks (whether prepared by Employee or others) containing
any confidential information, except as required for Employee to properly
perform his duties as an employee of Company. 
Exceptions to these restrictions may be made only by means of Company’s
permission given in writing signed by the Chairman of the Board of the Company
pursuant to an affirmative approval by a majority of Company’s Board of
Directors granting permission to disclose.

 

2.                                       During a period
of one (1) year following the
cessation of Employee’s employment with Company (for any reason other than “Change in Control of Company” as defined
in paragraph 8.a.(3) of the Employment Contract), Employee covenants that
Employee, either individually or in any capacity, including without limitation,
as an agent, consultant, officer, shareholder, or employee of any business
enterprises or person with which he may become associated or in which Employee
may have a direct or indirect interest, shall not, directly or indirectly for
himself or on behalf of any other person or business entity, engage in any
business venture or other undertaking which is directly or indirectly
competitive with the business or operations of Company (and/or any of its
subsidiaries) as generally conducted at, or prior to, the cessation of Employee’s
employment with Company.  Without
limiting the generality of the foregoing, Employee shall not (i) so
compete with Company or its subsidiaries, (ii) be employed by, (iii) be
an affiliate (as defined by Securities and Exchange Commission Rule 405
under the

 

2

 

Securities Act of 1933), (iv) perform any services for, or (v) have
an equity or ownership interest in, any person, firm, partnership, joint
venture, or corporation that so competes, directly or indirectly, with Company
or any of its subsidiaries.  Further,
Employee will not solicit for employment or advise or recommend to any other
person that such person employ, or solicit for employment, any employee of
Company or any of its subsidiaries who was an employee at, or prior to, the
cessation of Employee’s employment with Company.  The foregoing covenant not to compete shall
be limited to a territory consisting of those states in which Company was doing
business as of the time of cessation of Employee’s employment with
Company.  If for any reason any court of
competent jurisdiction finds these covenants to be unreasonable in duration or
geographic scope, the prohibitions herein contained shall be restricted to such
time and geographic areas as such court determines to be reasonable and
enforceable.  However, the restrictions
stated above will not apply if Company liquidates or if Employee becomes
employed by a company (or its affiliate) which acquires (in a voluntary
transaction) the stock or business assets of Company.

 

3.                                       Employee
understands and agrees that his violation of any of the provisions of this Agreement
will constitute irreparable injury to Company immediately authorizing it to
enjoin Employee or the business enterprise with which he may have become
associated from further violations, in addition to all other rights and
remedies which Company may have under law and equity, including recovery of
damages from Employee and a right of offset.

 

4.                                       Each party shall
be entitled to receive from the other party reimbursement of attorney’s fees
and related legal costs to the extent incurred in connection with the
successful enforcement or defense, as the case may be, of the terms and
conditions hereof.

 

5.                                       The waiver by
Company of Employee’s breach of any provision hereof shall not operate or be
construed as a waiver of any subsequent breach by Employee.  This Agreement shall be binding upon the
parties hereto and their heirs, successors, executors, administrators, personal
representatives, and assigns.  Employee
may not assign to any person his covenants, obligations and duties
hereunder.  All provisions of this
Agreement shall survive the termination or amendment of Employee’s Employment
Contract.

 

6.                                       If any provision
of this Agreement is held by a court of law to be illegal or unenforceable, the
remaining provisions of the Agreement shall remain in full force and
effect.  In lieu of such illegal or
unenforceable provision, there shall be added automatically as a part of this
Agreement a provision as similar in terms to such illegal or unenforceable
provision as may be possible and be legal and enforceable.

 

7.                                       This Agreement
has been made in, and its validity, interpretation, construction, and
performance shall be governed by and be in accordance with, the laws

 

3

 

of the State of Texas, without reference to its laws governing
conflicts of law.  Each party hereby
irrevocably agrees that any legal action or proceedings with respect to this
Agreement may be brought in the courts of the State of Texas, or in any United
States District Court of Texas, and, by its execution and delivery of this
Agreement, each party hereby irrevocably submits to each such jurisdiction and
hereby irrevocably waives any and all objections which it may have as to venue
in any of the above courts.  Each party
further consents and agrees that any process or notice of motion or other
application to either of said Courts or any judge thereof, or any notice in
connection with any proceedings hereunder, may be served inside or outside the
State of Texas by registered or certified mail, return receipt requested,
postage prepaid, and be effective as of the receipt thereof, or in such other
manner as may be permissible under the rules of said Courts.

 

IN WITNESS WHEREOF, the parties have executed this Agreement to be
effective August 1, 2005.

 

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Wayne A. Whitener

  
	
   

  	
   

  	
   

  	
  49 Sunrise Circle

  
	
   

  	
   

  	
   

  	
  Pottsboro, Texas 75076

  
	
   

  	
   

  	
   

  	
  Date:  August       ,
  2005

  
	
   

  	
   

  	
   

  	
   

  
	
  ACCEPTED:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TGC INDUSTRIES, INC.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  William J. Barrett,

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Director

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:  August       ,
  2005

  	
   

  	
   

  	
   

  
							

 

4

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