Exhibit 10.25
EXECUTIVE AGREEMENT
This Executive Agreement
(“Agreement”) between Oil States International, Inc., a
Delaware corporation (the “Company”), and Ron Green
(the “Executive”) is made and entered into effective as
of the date of May 17, 2007 (the “Effective
Date”).
WHEREAS , Executive is a key
executive of the Company or a subsidiary; and
WHEREAS , the Company
believes it to be in the best interests of its stockholders to
attract, retain and motivate key executives and ensure continuity
of management; and
WHEREAS , it is in the best
interest of the Company and its stockholders if the key executives
can approach material business development decisions objectively
and without concern for their personal situation; and
WHEREAS , the Company
recognizes that the possibility of a Change of Control (as defined
below) of the Company may result in the departure of key executives
to the detriment of the Company and its stockholders; and
WHEREAS , the Board of
Directors of the Company has authorized this Agreement and certain
similar agreements in order to retain and motivate key management
and to ensure continuity of key management;
THEREFORE , for good and
valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and Executive agree as
follows:
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A. |
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This Agreement shall commence on the Effective Date and,
subject to the provisions for earlier termination in this
Agreement, shall continue in effect through the third anniversary
of the Effective Date; provided, however, commencing on the
Effective Date and on each day thereafter, the term of this
Agreement shall automatically be extended for one additional day
unless the Board of Directors of the Company shall give written
notice to Executive that the term shall cease to be so extended in
which event the Agreement shall terminate on the third anniversary
of the date such notice is given. |
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B. |
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Notwithstanding anything in this Agreement to the contrary,
this Agreement, if in effect on the date of a Change of Control,
shall automatically be extended for the 24-month period following
the Change of Control. |
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C. |
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Termination of this Agreement shall not alter or impair any
rights of Executive arising hereunder on or before such
termination. |
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(i) |
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Executive’s conviction of (or plea of nolo contendere to)
a felony, dishonesty or a breach of trust as regards the Company or
any subsidiary; |
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(ii) |
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Executive’s commission of any act of theft, fraud,
embezzlement or misappropriation against the Company or any
subsidiary that is materially injurious to the Company or such
subsidiary regardless of whether a criminal conviction is
obtained; |
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(iii) |
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Executive’s willful and continued failure to devote
substantially all of his business time to the Company’s
business affairs (excluding failures due to illness, incapacity,
vacations, incidental civic activities and incidental personal
time) which failure is not remedied within a reasonable time after
written demand is delivered by the Company, which demand
specifically identifies the manner in which the Company believes
that Executive has failed to devote substantially all of his
business time to the Company’s business affairs; or |
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(iv) |
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Executive’s unauthorized disclosure of confidential
information of the Company that is materially injurious to the
Company. |
For purposes of this definition, no
act, or failure to act, on Executive’s part shall be deemed
“willful” unless done, or omitted to be done, by
Executive not in good faith and without reasonable belief that
Executive’s action or omission was in the best interest of
the Company.
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B. |
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“ Change of Control ” shall mean any of the
following: |
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(i) |
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any “person” (as such term is used in Section 13(d)
and 14(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)), (other than a trustee or other
fiduciary holding securities under an employee benefit plan of the
Company or any affiliate, SCF III, L.P., SCF IV, L.P., or any
affiliate of SCF-III, L.P. or SCF-IV, L.P. or any corporation
owned, directly or indirectly, by the stockholders of the Company
in substantially the same proportions as their ownership of stock
of the Company), acquires “beneficial ownership”
(within the meaning of Rule 13d-3 under the Exchange Act) of
securities of the Company representing 35% or more of the combined
voting power of the Company’s then outstanding securities;
provided, however, that if the Company engages in a merger or
consolidation in which the Company or surviving entity in such
merger or consolidation becomes a subsidiary of another entity,
then references to the Company’s then outstanding securities
shall be deemed to refer to the outstanding securities of such
parent entity; |
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(ii) |
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a change in the composition of the Board, as a result of which
fewer than a majority of the directors are Incumbent Directors.
“Incumbent Directors” shall mean directors who either
(i) are directors of the Company as of the Effective Date, or
(ii) are elected, or nominated for election, to the Board with
the affirmative votes of at least two-thirds of the Incumbent
Directors at the time of such election or nomination, but Incumbent
Director shall not include an individual whose election or
nomination occurs as a result of either (1) an actual or
threatened election contest (as such terms are used in
Rule 14a-11 of Regulation 14A promulgated under the
Exchange Act) or (2) an actual or threatened solicitation of
proxies or consents by or on behalf of a person other than the
Board of Directors of the Company; |
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(iii) |
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the consummation of a merger or consolidation of the Company
with any other corporation, other than a merger or consolidation
which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting
securities of the surviving entity (or if the surviving entity is
or shall become a subsidiary of another entity, then such parent
entity)) more than 50% of the combined voting power of the voting
securities of the Company (or such surviving entity or parent
entity, as the case may be) outstanding immediately after such
merger or consolidation; |
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(iv) |
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the stockholders of the Company approve a plan of complete
liquidation of the Company; or |
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(v) |
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the sale or disposition (other than a pledge or similar
encumbrance) by the Company of all or substantially all of the
assets of the Company other than to a subsidiary or subsidiaries of
the Company. |
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C. |
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“ Date of Termination ” shall mean the date
the Notice of Termination is given unless such Notice of
Termination is by Executive in which event the Date of Termination
shall not be less than 30 days following the date the Notice
of Termination is given. Further, a Notice of Termination given by
Executive due to a Good Reason event that is corrected by the
Company before the Date of Termination shall be void. |
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D. |
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“ Good Reason ” shall mean: |
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(i) |
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a material reduction in Executive’s authority, duties or
responsibilities from those in effect immediately prior to the
Change of Control or the assignment to Executive duties or
responsibilities inconsistent in any material respect from those of
Executive in effect immediately prior to the Change of
Control; |
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(ii) |
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a material reduction of Executive’s compensation and
benefits, including, without limitation, annual base salary, annual
bonus, and equity incentive |
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opportunities,
from those in effect immediately prior to the Change of
Control;
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(iii) |
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the Company fails to obtain a written agreement from any
successor or assigns of the Company to assume and perform this
Agreement as provided in Section 9 hereof; or |
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(iv) |
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the Company requires Executive, without Executive’s
consent, to be based at any office located more than 50 miles from
the Company’s offices to which Executive was based
immediately prior to the Change of Control, except for travel
reasonably required in the performance of Executive’s
duties. |
Notwithstanding
the above however, Good Reason shall not exist with respect to a
matter unless Executive gives the Company written notice of such
matter within 30 days of the date Executive knows or should
reasonably have known of its occurrence. If Executive fails to give
such notice timely, Executive shall be deemed to have waived all
rights Executive may have under this Agreement with respect to such
matter.
For purposes of
this Agreement, “Good Reason” shall be construed to
refer to Executive’s positions, duties, and responsibilities
in the position or positions in which Executive serves immediately
before the Change of Control, but shall not include titles or
positions with subsidiaries and affiliates of the Company that are
held primarily for administrative convenience.
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E. |
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“ Notice of Termination” shall mean a
written notice delivered to the other party indicating the specific
termination provision in this Agreement relied upon for termination
of Executive’s employment and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for
termination of Executive’s employment under the provision so
indicated. |
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F. |
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“ Protected Period ” shall mean the 24-month
period beginning on the effective date of a Change of Control. |
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G. |
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“ Target AICP ” shall mean the targeted
value of Executive’s annual incentive compensation plan bonus
for the year in which the Date of Termination occurs or the fiscal
year immediately preceding the Change of Control, whichever is a
greater amount. |
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H. |
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“ Termination Base Salary ” shall mean
Executive’s base sa |
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