FORM OF AMENDMENT TO NON-QUALIFIED STOCK OPTION AGREEMENT
FORM OF
AMENDMENT TO NON-QUALIFIED STOCK OPTION AGREEMENT
THIS AMENDMENT TO NON-QUALIFIED STOCK OPTION AGREEMENT (this “Amendment”) is entered
into as of April 20, 2008, but to be effective as provided in Section 5 hereof, by and
between Grey Wolf, Inc., a Texas corporation (the “Company”), and [ ] (the
“Grantee”).
RECITALS:
A. The Company and the Grantee entered into one or more Non-Qualified Stock Option Agreements
as set forth on the attached Exhibit A (each, an “Award Agreement”) setting forth certain
agreements regarding the Company’s grant to the Grantee of options to purchase shares of common
stock of the Company pursuant to the Company’s 2003 Incentive Plan.
B. The Company and the Grantee desire to amend each Award Agreement as provided herein.
AGREEMENT:
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants and
agreements contained herein, the parties hereby agree as follows:
1. The Company and the Grantee hereby amend each Award Agreement by deleting Section 12(f) in
its entirety and replacing it with the following:
“f. Change of Control. The Grantee may exercise this Option as to all of the Shares
subject to this Option (whether previously exercisable or not, i.e., whether vested
or unvested) on or before the expiration of the Expiration Date if (i) a Change of
Control of the Company shall be deemed to have occurred and (ii) within two (2)
years after the date a Change of Control of the Company shall be deemed to have
occurred, Grantee’s employment with the Company or a parent or subsidiary
corporation of the Company is terminated for any reason other than voluntary
resignation, retirement, death, Disability or Cause. For purposes hereof, voluntary
resignation shall not include (1) a termination without Cause or a constructive
termination without Cause as described in any employment agreement between the
Grantee and the Company, or (2) a “Qualifying Termination” as defined in the
Company’s Executive Severance Plan if the Grantee is a “Participant” under such
Executive Severance Plan.
A “Change in Control” of the Company shall be deemed to occur if:
(i) any “person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934 (the “Act”)) is or becomes the “beneficial owner”
(as defined in Rule 13d-3 under the Act), directly or indirectly, of securities of
the Company representing fifty percent 50% or more of the combined voting power of
the Company’s then outstanding securities;
(ii) there occurs a proxy contest or a consent solicitation, or the Company is
a party to a merger, consolidation, sale of assets, plan of liquidation or other
reorganization as a consequence of which members of the Board of Directors in office
immediately prior to such transaction or event constitute less than a majority of
the Board of Directors thereafter;
(iii) during any period of two consecutive years, other than as a result of an
event described in clause (ii) of this Section 12(f), individuals who at the
beginning of such period constituted the Board of Directors (including for this
purpose any new director whose election or nomination for election by the Company’s
stockholders was approved by a vote of at least a majority of the directors then
still in office who were directors at the beginning of such period) cease for any
reason to constitute at least a majority of the Board of Directors;
(iv) the shareholders of the Company approve a reorganization, merger,
consolidation or similar business combination involving the Company (a “Merger”),
unless immediately following such Merger, substantially all of the holders of the
then outstanding shares of common stock of the Company (the “Outstanding Company
Voting Securities”) immediately prior to the Merger beneficially own, directly or
indirectly, more than fifty percent (50%) of the common stock of the corporation
resulting from such Merger (or its parent corporation) in substantially the same
proportions as their ownership of Outstanding Company Voting Securities immediately
prior to such Merger;
(v) all or substantially all of the assets of the Company and its subsidiaries
are sold or otherwise disposed of (including through sale or other disposition of
the stock of such subsidiaries), unless immediately following such sale or other
disposition, substantially all of the holders of the Outstanding Company Voting
Securities immediately prior to the consummation of such sale or other disposition
beneficially own, directly or indirectly, more than fifty percent (50%) of the
common stock of the corporation acquiring such assets in substantially the same
proportions as their ownership of Outstanding Company Voting Securities immediately
prior to the consummation of such sale or disposition; or
(vi) any other event that a majority of the Board of Directors, in its sole
discretion, shall determine constitutes a Change in Control hereunder; or
(vii) upon the effectiveness of the proposed merger, consolidation or other
business combination of the Company and Basic Energy Services, Inc., a Delaware
corporation, into each other or a new corporation, however structured.”
2. This Amendment, which may be executed in one or more counterparts, is executed as and shall
constitute an amendment to each Award Agreement, and shall be construed in connection with and as a
part of each Award Agreement. Except as amended by this Amendment, all the terms and provisions of
each Award Agreement shall remain in full force and effect.
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3. This Amendment embodies the entire agreement and understanding between the parties related
to the subject matter hereof, and supersedes and replaces any other agreement or understanding
between the parties regarding the subject matter of this Amendment, whether written or oral, prior
to this Amendment. This Amendment may not be modified, amended, varied or supplemented except by
an instrument in writing signed by the parties.
4. This Amendment shall be interpreted and enforced in accordance with the laws of the State
of Texas, without regard to any conflict of laws rule or provision.
5. This Amendment shall become effective immediately prior to the effectiveness of the
proposed merger, consolidation or other business combination of the Company and Basic Energy
Services, Inc., a Delaware corporation, into each other or a new corporation, however structured
(the “Proposed Merger”). If the Proposed Merger is not effective for any reason on or before
November 30, 2008, this Amendment shall terminate and be of no further force or effect.
IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date first above
written.
| GREY WOLF, INC. |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| [ ] | ||||
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| Number of | Number of Shares | |||||
| Grant Date | Exercise Price | Shares Granted | Currently Unvested | |||
| [ ] | [ ] | [ ] | [ ] | |||
| [ ] | [ ] | [ ] | [ ] | |||
| [ ] | [ ] | [ ] | [ ] | |||
| [ ] | [ ] | [ ] | [ ] | |||
| [ ] | [ ] | [ ] | [ ] |
