Document:

exv10w6

 

Exhibit 10.6

BASIC ENERGY SERVICES, INC.

FORM OF RESTRICTED STOCK GRANT AGREEMENT

(Non-Employee Director)

Grantee: ____________________

     1.     Grant of Stock. As of the Grant Date (identified in Section 12 below), Basic
Energy Services, Inc. (formerly BES Holding Co.), a Delaware corporation (the “Company”), hereby
grants to the Grantee (identified above), an employee of the Company, the number of shares of the
Company’s common stock, $0.01 par value per share (the “Common Stock”) identified in Section 12)
below (the “Shares”), subject to the terms and conditions of this agreement (the “Agreement”) and
the Second Amended and Restated Basic Energy Services, Inc. 2003 Incentive Plan (the “Plan”). The
Plan is hereby incorporated in this Agreement in its entirety by reference. The Shares, when
delivered to Grantee upon expiration of the vesting period, shall be fully paid and nonassessable.

     2.     Definitions. All capitalized terms used herein shall have the meanings set forth
in the Plan unless otherwise provided herein. Section 12 below sets forth meanings for certain of
the capitalized terms used in this Agreement.

     3.     Vesting Term. The Shares granted to Grantee hereunder on the Grant Date
(identified in Section 12 below) will vest in Grantee in the increments set forth in Section 12
below on each of the dates set forth in Section 12 below.

     4.     Grant Price. No consideration shall be payable by the Grantee to the Company for
the Shares.

     5.     Restriction on Shares.

	 	 	     (a)     The Shares granted to Grantee hereunder shall be retained in the possession of the
Company until vested in the Grantee as provided in Sections 3 and 12 hereof.
	 
	 	 	     (b)     All unvested shares will be forfeited by the Grantee in the event of Grantee’s
resignation or removal from the Board of Directors of the Company under circumstances that
do not cause Grantee to become fully vested under the terms of this Agreement.
	 
	 	 	     (c)     At such time as the vesting period is satisfied, a certificate for the Shares no
longer subject to forfeiture will be delivered to the Grantee without the legend set forth
in Section 5(e) below.
	 
	 	 	     (d)     From and after the date of this Grant and prior to any forfeiture of the Shares,
the Grantee shall be entitled to vote the Shares and shall be entitled to receive any

 

 

	 	 	cash dividends payable on the Shares. Any stock dividends applicable to the Shares
shall be retained by the Company until the vesting period of the Shares on which the stock
dividend was issued is satisfied.
	 	 	     (e)      A certificate representing the Shares granted hereunder shall be issued to the
Grantee pursuant to the terms of the Plan as of the Grant Date and shall be marked with the
following legend:
	 
	 	 	“The shares represented by this certificate have been issued pursuant to the terms of the
Second Amended and Restated Basic Energy Services, Inc. 2003 Incentive Plan and may not be
sold, pledged, transferred, assigned or otherwise encumbered in any manner except as set
forth in the terms of such Plan or Award dated ___.”

     6.     Independent Legal and Tax Advice. Grantee acknowledges that the Company has
advised Grantee to obtain independent legal and tax advice regarding the grant of the Shares and
any disposition of any such Shares.

     7.     Reorganization of Company. The existence of the Grant shall not affect in any way
the right or power of the Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in Company’s capital structure or its business,
or any merger or consolidation of the Company, or any issue or bonds, debentures, preferred or
prior preference stock ahead of or affecting the Shares or the rights thereof, or the dissolution
or liquidation of the Company, or any sale or transfer of all or any part of its assets or
business, or any other corporate act or proceeding, whether of a similar character or otherwise.

     8.     Investment Representation. Grantee will enter into such written representations,
warranties and agreements as Company may reasonably request in order to comply with any federal or
state securities law. Moreover, any stock certificate for any Shares issued to Grantee hereunder
may contain a legend restricting their transferability as determined by the Company in its
discretion. Grantee agrees that Company shall not be obligated to take any affirmative action in
order to cause the issuance or transfer of Shares hereunder to comply with any law, rule or
regulation that applies to the Shares subject to the Grant.

     9.     No Guarantee of Employment. The Grant shall not confer upon Grantee any right to
continued employment with the Company or any Affiliate thereof.

     10.     Withholding of Taxes. The Grantee shall have the responsibility of discharging
all taxes (state and federal) owed by the Grantee as a result of the Grant. Grantee agrees that,
if he makes an election under Section 83(b) of the Internal Revenue Code of 1986, as amended, with
regard to the Shares, he will so notify the Company in writing within two (2) weeks after making
such election, so as to enable the Company to timely comply with any applicable governmental
reporting requirements.

     11.     General.

	 	 	     (a)     Notices. All notices under this Agreement shall be mailed or delivered by
hand to the parties at their respective addresses set forth beneath their signatures below
or at such other address as may be designated in writing by either of the parties to one

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	 	 	another, or to their permitted transferees if applicable. Notices shall be effective
upon request.
	 	 	     (b)     Transferability of Grant. The rights of the Grantee pursuant to this
Agreement are not transferable by Grantee. No right or benefit hereunder shall in any
manner be liable for or subject to any debts, contracts, liabilities, obligations or torts
of Grantee or any permitted transferee thereof. Any purported assignment, alienation,
pledge, attachment, sale, transfer or other encumbrance of the Shares, prior to the lapse of
restrictions, that does not satisfy the requirements hereunder shall be void and
unenforceable against the Company.
	 
	 	 	     (c)     Amendment and Termination. No amendment, modification or termination of
the Grant or this Agreement shall be made at any time without the written consent of Grantee
and the Company.
	 
	 	 	     (d)     No Guarantee of Tax Consequences. The Company and the Committee make no
commitment or guarantee that any federal or state tax treatment will apply or be available
to any person eligible for benefits under the Grant. The Grantee has been advised and been
provided the opportunity to obtain independent legal and tax advise regarding the grant and
exercise of the Grant and the disposition of any Shares acquired thereby.
	 
	 	 	     (e)     Severability. In the event that any provision of this Agreement shall be
held illegal, invalid or unenforceable for any reason, such provision shall be fully
severable, but shall not affect the remaining provisions of the Agreement, and the Agreement
shall be construed and enforced as if the illegal, invalid or unenforceable provision had
not been included therein.
	 
	 	 	     (f)     Supersedes Prior Agreements. This Agreement shall supersede and replace
all prior agreements and understandings, oral or written, between the Company and the
Grantee regarding the grant of the Shares covered hereby.
	 
	 	 	     (g)     Governing Law. The Grant shall be construed in accordance with the laws of
the State of Texas without regard to its conflict of law provisions, to the extent federal
law does not supersede and preempt Texas law.
	 
	 	 	     (h)     No Trust or Fund Created. This Agreement shall not create or be construed
to create a trust or separate fund of any kind or a fiduciary relationship between the
Company or any Affiliate and a Grantee or any other Person. To the extent that any Person
acquires a right to receive payments from the Company or any Affiliates pursuant to an
Award, such right shall be no greater than the right of any general unsecured creditor of
the Company or any Affiliate.
	 
	 	 	     (i)     Other Laws. The Company retains the right to refuse to issue or transfer
any Shares if it determines that the issuance or transfer of such Shares might violate any
applicable law or regulation or entitle the Company to recover under Section 16(b) of the
Securities Exchange Act of 1934.

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     12.     Definitions and Other Terms. The following capitalized terms shall have those
meanings set forth opposite them:

	 	 	 	 	 	 	 
	 

	 	(a)
	 	Grantee:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(b)
	 	Grant Date:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(c)
	 	Shares:
	 	___Shares of the Company’s Common Stock
	 
	 	 	 	 	 	 
	 

	 	(d)
	 	Vesting:
	 	Subject to Section 5 above and the terms of
the Plan, the Grantee shall vest in all rights to the Shares and any rights
of the Company to such Shares shall lapse with respect to the Shares on the
earlier of (i) the dates set forth below; (ii) a Change in Control; (iii) the
death or Disability of the Grantee; or (iv) Grantee attains the age 75 and
terminates service on the Board. If not earlier vested, the Shares shall
vest according to the following schedule:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	- ___Shares
	 

	 	 	 	 	 	- ___Shares
	 

	 	 	 	 	 	- ___Shares
	 

	 	 	 	 	 	- ___Shares
	 
	 	 	 	 	 	 
	 

	 	(e)
	 	Disability.
	 	“Disability” shall mean that Grantee is
entitled to receive long-term disability (“LTD”) income benefits under the LTD
plan or policy maintained by the Company that covers Grantee. If, for any
reason, Grantee is not covered under such LTD plan or policy, then “Disability”
shall mean a “permanent and total disability” as defined in Section 22(e)(3) of
the Code and Treasury regulations thereunder. Evidence of such Disability
shall be certified by a physician acceptable to the Company. Grantee agrees to
submit to any examinations that are reasonably required by the attending
physician or other healthcare service providers to determine whether he or she
has a Disability.

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     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its
duly authorized officer and Grantee has hereunto executed this Agreement as of the same date, to be
effective as of ___.

	 	 	 	 	 
	 	 	BASIC ENERGY SERVICES, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

	 	 	 	 	 
	 	 	Address for Notices:
	 
	 	 	 	 
	 	 	Basic Energy Services, Inc.
	 	 	400 West Illinois, Suite 800
	 	 	Midland, Texas 79701
	 	 	Fax: (432) 620-5501
	 	 	Attn: President
	 
	 	 	 	 
	 	 	GRANTEE
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	Address for Notices:
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	Fax:	 	 
	 

	 	 	 	 

5exv10w7

 

Exhibit
10.7

BASIC ENERGY SERVICES, INC.

FORM OF NONQUALIFIED STOCK OPTION AGREEMENT

Optionee: _______________

	1.	 	Grant of Stock Option. As of the Grant Date (identified in Section 18 below), Basic Energy
Services, Inc. (formerly named BES Holding Co.), a Delaware corporation (the “Company”),
hereby grants a Nonqualified Stock Option (the “Option”) to the Optionee (identified above),
an employee of the Company, to purchase the number of shares of the Company’s common stock,
$0.01 par value per share (the “Common Stock”) identified in Section 18 below (the “Shares”),
subject to the terms and conditions of this agreement (the “Agreement”) and the Second Amended
and Restated Basic Energy Services, Inc. 2003 Incentive Plan, as it may be amended from time
to time (the “Plan”). The Plan is hereby incorporated herein in its entirety by reference.
The Shares, when issued to Optionee upon the exercise of the Option, shall be fully paid and
nonassessable. The Option is a nonqualified stock option and is not intended to be an
“incentive stock option” as defined in Section 422 of the Internal Revenue Code.
	 
	2.	 	Definitions. All capitalized terms used herein shall have the meanings set forth in the Plan
unless otherwise provided herein. Section 18 below sets forth meanings for various
capitalized terms used in this Agreement.
	 
	3.	 	Option Term. The Option shall commence on the Grant Date (identified in Section 18 below)
and terminate on the tenth anniversary of such Grant Date, unless earlier exercised,
terminated or forfeited in accordance with its terms. The period during which the Option is
in effect and may be exercised is referred to herein as the “Option Period”.
	 
	4.	 	Option Price. The Option Price per Share is identified in Section 18 below.
	 
	5.	 	Method of Exercise. The Option is exercisable by delivery of a written notice to the
Secretary of the Company, signed by the Optionee, specifying the number of Shares to be
acquired on, and the effective date of, such exercise. The Optionee may exercise all or any
part of the Option as it vests in accordance with Section 18(f).
	 
	6.	 	Method of Payment. The Option Price upon exercise of the Option shall be payable to the
Company in full either: (i) in cash or its equivalent; (ii) subject to prior approval by the
Committee in its discretion, by tendering previously acquired Shares having an aggregate Fair
Market Value (as defined in the Plan) at the time of exercise equal to the total Option Price
(provided that the Shares must have been held by the Optionee for at least six (6) months
prior to their tender to satisfy the Option Price); (iii) subject to the prior approval by the
Committee in its discretion, by withholding Shares which otherwise would be acquired on
exercise having an aggregate Fair Market Value at the time of exercise equal to the total
Option Price; or (iv) any other permitted method pursuant to the applicable terms and
conditions of the Plan.

 

 

	 	 	As soon as practicable after receipt of a written notification of exercise and full payment,
the company shall deliver to or on behalf of the Optionee, in the name of the Optionee or
other appropriate recipient, Share certificates for the number of Shares purchased under the
Option. Such delivery shall be effected for all purposes when the Company or its stock
transfer agent shall have deposited such certificates in the United States mail, addressed
to Optionee or other appropriate recipient.
	 
	7.	 	Restrictions on Exercise. The Option may not be exercised if the issuance of such Shares or
the method of payment of the consideration for such Shares would constitute a violation of any
applicable federal or state securities or other laws or regulations, or any rules or
regulations of any stock exchange on which the Common Stock may be listed. In addition, to
the extent required by the Committee as a condition precedent to the grant and/or exercise of
the Option, the Optionee (and spouse), if applicable, must first execute and become a party to
a Stockholders Agreement in the form then in use by the Company.
	 
	8.	 	Termination of Employment. Voluntary or involuntary termination of employment shall affect
Optionee’s rights under the Option as follows:

	 	(a)	 	Termination for Cause. The vested and non-vested portions of the
Option shall expire on 12:01 a.m. (CST) on the date of termination of employment and
shall not be exercisable to any extent if Optionee is terminated for Cause (as defined
in the Plan at the time of such termination of employment).
	 
	 	(b)	 	Retirement. If Optionee’s employment is terminated for Retirement as
defined in Section 18 below, then (i) the non-vested portion of the Option shall
immediately expire on the termination date and (ii) the vested portion of the option
shall expire to the extent not exercised before the six (6) month anniversary of the
date of such termination of employment. In no event may the Option be exercised by
anyone after the earlier of (i) the expiration of the Option Period or (ii) six months
from the date of termination of employment due to Retirement.
	 
	 	(c)	 	Death or Disability. If Optionee’s employment is terminated by death
or Disability (as defined in this Agreement or, if applicable, in the Plan at the time
of such termination of employment), then (i) the non-vested portion of the Option shall
immediately expire on the date of termination of employment and (ii) the vested portion
of the Option shall expire on the one year anniversary date of the termination of
employment date to the extent not exercised by Optionee or, in the case of death, by
the person or persons to whom Optionee’s rights under the Option have passed by will or
by the laws of descent and distribution, or in the case of Disability, by Optionee or
Optionee’s legal representative. In no event may the Option be exercised by anyone on
or after the earlier of (i) the expiration of the Option Period or (ii) one year after
the date of Optionee’s death or termination of employment due to Disability.
	 
	 	(d)	 	Other Involuntary Termination or Voluntary Termination. If Optionee’s
employment is terminated for any reason other than for Cause, Retirement, death

2

 

	 	 	 	or Disability, then (i) the non-vested portion of the Option shall immediately
expire on the termination of employment date and (ii) the vested portion of the
Option shall expire to the extent not exercised within 90 calendar days after such
termination date. In no event may the Option be exercised by anyone after the
earlier of (i) the expiration of the Option Period or (ii) 90 calendar days after
the termination of employment date.

	9.	 	Independent Legal and Tax Advice. Optionee acknowledges that the Company has advised
Optionee to obtain independent legal and tax advice regarding the grant and exercise of the
Option and the disposition of any Shares acquired thereby.
	 
	10.	 	Reorganization of Company. The existence of the Option shall not affect in any way the right
or power of the Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in Company’s capital structure or its
business, or any merger or consolidation of the Company, or any issue of bonds, debentures,
preferred or prior preference stock ahead of or affecting the Shares or the rights thereof, or
the dissolution or liquidation of the Company, or any sale or transfer of all or any part of
its assets or business, or any other corporate act or proceeding, whether of a similar
character or otherwise.
	 
	11.	 	Adjustment of Shares. In the event of stock dividends, spin-offs of assets or other
extraordinary dividends, stock splits, combinations of shares, recapitalizations, mergers,
consolidations, reorganizations, liquidations, issuance of rights or warrants and similar
transactions or events involving Company or a change in the accounting rules required by the
Financial Accounting Standards Board, appropriate adjustments shall be made to the terms and
provisions of the Option as provided in the Plan.
	 
	12.	 	No Rights in Shares. Optionee shall have no rights as a stockholder in respect of the Shares
until the Optionee becomes the record holder of such Shares.
	 
	13.	 	Investment Representation. Optionee will enter into such written representations, warranties
and agreements as Company may reasonably request in order to comply with any federal or state
securities law. Moreover, any stock certificate for any Shares issued to Optionee hereunder
may contain a legend restricting their transferability as determined by the Company in its
discretion. Optionee agrees that Company shall not be obligated to take any affirmative action
in order to cause the issuance or transfer of Shares hereunder to comply with any law, rule or
regulation that applies to the Shares subject to the Option.
	 
	14.	 	Change in Control and Duties. Notwithstanding any other provision of this Agreement to the
contrary, if Optionee’s employment with the Company (or a successor) and all of its Affiliates
terminates within two (2) years after a Change in Control of the Company and (i) such
termination of employment was initiated by the Company (or a successor) other than for Cause
or (ii) such termination of employment was initiated by the Optionee after determining in the
Optionee’s good faith reasonable judgment that the termination is a Termination for Good
Reason, this Option shall become fully vested immediately prior to such Change in Control, all
restrictions, if any, with respect to this Option shall lapse, and all performance criteria,
if any, with respect to this Option shall be deemed to have

3

 

	 	 	been met in full (at the highest level). Subject to the approval of the Board, upon a
Change of Control in the Company, all Options outstanding at the time of the event or
transaction may be terminated, in which event the Optionee shall be paid, with respect to
each Option, an amount in cash equal to the excess of Fair Market Value of a Share over the
Option’s exercise price (or if the Option exercise price exceeds the Fair Market Value of a
Share on such date, the Optionee may be paid an amount in cash equal to the lesser of (x)
$1.00 or (y) the Black-Scholes value of the cancelled Option as determined by the Board).
	15.	 	No Guarantee of Employment. The Option shall not confer upon Optionee any right to continued
employment with the Company or any Affiliate thereof.
	 
	16.	 	Withholding Taxes. The Company shall have the right to (a) make deductions from the number
of Shares otherwise deliverable upon exercise of the Option in an amount sufficient to satisfy
withholding of any federal, state or local taxes required by law, or (b) take such other
action as may be necessary or appropriate to satisfy any such tax withholding obligations.
The Optionee may direct the Company to satisfy the Company’s tax withholding obligation
through the “constructive” tender of already-owned shares.
	 
	17.	 	General.

	 	(a)	 	Notices. All notices under this Agreement shall be mailed or delivered
by hand to the parties at their respective addresses set forth beneath their signatures
below or at such other address as may be designated in writing by either of the parties
to one another, or to their permitted transferees if applicable. Notices shall be
effective upon receipt.
	 
	 	(b)	 	Shares Reserved. The Company shall at all times during the Option
Period reserve and keep available under the Plan such number of Shares as shall be
sufficient to satisfy the requirements of this Option.
	 
	 	(c)	 	Transferability of Option. The Option granted pursuant to this
Agreement is not transferable other than by will or by the laws of descent and
distribution. The Option will be exercisable during Optionee’s lifetime only by
Optionee. No right or benefit hereunder shall in any manner be liable for or subject
to any debts, contracts, liabilities, obligations or torts of Optionee or any permitted
transferee thereof.
	 
	 	(d)	 	Amendment and Termination. No amendment, modification or termination
of the Option or this Agreement shall be made at any time without the written consent
of Optionee and Company.
	 
	 	(e)	 	No Guarantee of Tax Consequences. The Company and the Committee make
no commitment or guarantee that any federal or state tax treatment will apply or be
available to any person eligible for benefits under the Option. The Optionee has been
advised and been provided the opportunity to obtain independent legal and

4

 

	 	 	 	tax advise regarding the grant and exercise of the Option and the disposition of any
Shares acquired thereby.
	 	(f)	 	Severability. If any provision of this Agreement shall be held
illegal, invalid, or unenforceable for any reason, such provision shall be fully
severable, but shall not affect the remaining provisions of the Agreement, and the
Agreement shall be construed and enforced as if the illegal, invalid, or unenforceable
provision had not been included therein.
	 
	 	(g)	 	Supersedes Prior Agreements. This Agreement shall supersede and
replace all prior agreements and understandings, oral or written, between the Company
and the Optionee regarding the grant of the Options covered hereby.
	 
	 	(h)	 	Governing Law. The Option shall be construed in accordance with the
laws of the State of Texas without regard to its conflict of law provisions, to the
extent federal law does not supersede and preempt Texas law.
	 
	 	(i)	 	No Trust or Fund Created. This Agreement shall not create or be
construed to create a trust or separate fund of any kind or a fiduciary relationship
between the Company or any Affiliate and an Optionee or any other Person. To the
extent that any Person acquires a right to receive payments from the Company or any
Affiliates pursuant to an Award, such right shall be no greater than the right of any
general unsecured creditor of the Company or any Affiliate.
	 
	 	(j)	 	No Fractional Shares. No fractional Shares shall be issued or
delivered pursuant to this Agreement, and an amount of cash equivalent to the value of
any fractional shares not issued under this Agreement shall be paid or transferred in
lieu of any fractional Shares.
	 
	 	(k)	 	Other Laws. The Company retains the right to refuse to issue or
transfer any Options if it determines that the issuance or transfer of such Options
might violate any applicable law or regulation or entitle the Company to recover under
Section 16(b) of the Securities Exchange Act of 1934.

	18.	 	Definitions and Other Terms. The following capitalized terms shall have those meanings set
forth opposite them:

	 	 	 	 	 	 	 
	 

	 	(a)
	 	Optionee:	 	 
	 

	 	 	 	 	 	 

	 
	 	 	 	 	 	 
	 

	 	(b)
	 	Grant Date:	 	 
	 

	 	 	 	 	 	 

	 
	 	 	 	 	 	 
	 

	 	(c)
	 	Shares:
	 	______ Shares of the Company’s Common Stock
	 
	 	 	 	 	 	 
	 

	 	(d)
	 	Option Price:
	 	$______ per Share (subject to adjustment as provided in the
Plan and Section 4 above)
	 
	 	 	 	 	 	 
	 

	 	(e)
	 	Option Period:
	 	______ through ______

(until 5:00 p.m. CST)

5

 

	 	 	 	 	 	 	 
	 

	 	(f)
	 	Vesting:
	 	Subject to Sections 8 and 14 above and the terms of the Plan,
the Option shall vest according to the following schedule:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	- ______ Shares
	 

	 	 	 	 	 	- ______ Shares
	 

	 	 	 	 	 	- ______ Shares
	 

	 	 	 	 	 	- ______ Shares
	 
	 	 	 	 	 	 
	 	 	(g)	 	Termination for Good Reason:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Termination for Good Reason shall have the meaning
set forth in the Plan, except that clause (ii) of the
definition thereof is hereby amended and restated in
its entirety as follows:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	(ii) reduction in (a) the Participant’s annual base
salary immediately prior to the Change in Control,
(b) the Participant’s target bonus opportunity
(expressed as a percentage of the Participant’s
annual base salary or other method approved by the
Committee) immediately prior to the Change in Control
or (c) benefits comparable in the aggregate to those
enjoyed by the Participant under the Company’s
retirement, life insurance, medical, dental, health,
accident and disability plans in which Participant
was participating immediately prior to the Change in
Control;
	 
	 	 	 	 	 	 
	 

	 	(h)
	 	Disability.
	 	“Disability” shall mean that Optionee is entitled to
receive long-term disability (“LTD”) income benefits under the LTD plan or policy
maintained by the Company that covers Grantee. If, for any reason, Optionee is not
covered under such LTD plan or policy, then “Disability” shall mean a “permanent and
total disability” as defined in Section 22(e)(3) of the Code and Treasury regulations
thereunder. Evidence of such Disability shall be certified by a physician acceptable
to the Company. Optionee agrees to submit to any examinations that are reasonably
required by the attending physician or other healthcare service providers to determine
whether he or she has a Disability.

6

 

	 	 	 	 	 	 	 
	 

	 	(i)
	 	Retirement.
	 	“Retirement” means the termination of Optionee’s employment
for normal retirement at or after attaining age 62 provided that, on the date of his
retirement, Optionee has accrued at least ten years of active service with the Company.

7

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its
duly authorized officer and Optionee has hereunto executed this Agreement as of the same date, to
be effective as of ______.

	 	 	 	 	 
	 	BASIC ENERGY SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Alan Krenek, Senior Vice President 	 
	 	 	 	 
	 

Address for Notice:

 

Basic Energy Services, Inc.

400 W. Illinois, Suite 800

Midland, Texas 79701

 

OPTIONEE

 

 

 

 

Address for Notices:

 

 

 

 

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