Contract
Exhibit 10.3
Restricted Stock Units
2007 CHAIRMAN RESTRICTED STOCK UNIT AGREEMENT
This 2007 Chairman Restricted Stock Unit Agreement (this “Agreement”) is between
Oceaneering international, inc. (the “Company”) and (the “Participant”), the
non-employee Chairman of the Board of Directors of the Company (“Chairman”), regarding an award
(“Award”) of units (“Restricted Stock Units”) representing shares of Common Stock (as
defined in the 2005 Incentive plan of oceaneering international, inc. (the “Plan”),
awarded to the Participant effective February 23, 2007 (the “Award Date”), such number of
Restricted Stock Units subject to adjustment as provided in Section 15 of the Plan, and further
subject to the following terms and conditions:
1. Relationship to Plan. This Award is subject to all of the terms, conditions and
provisions of (i) the Plan and administrative interpretations thereunder, if any, which have been
adopted by the Committee thereunder and are in effect on the date hereof, and (ii) the Amended and
Restated Service Agreement dated December 21, 2006 between the Participant and the Company (the
“Service Agreement”). In the event of a conflict between this Agreement and the Service
Agreement, the Service Agreement shall control the Participant’s rights under this Agreement.
Except as defined or otherwise specifically provided herein, capitalized terms shall have the same
meanings ascribed to them under the Plan and the Service Agreement.
2. Vesting.
(a) All Restricted Stock Units subject to this Award shall vest in full on the third
anniversary of the Award Date, provided the Participant is Chairman on such anniversary.
(b) Restricted Stock Units subject to this Award shall vest, irrespective of the
provisions set forth in subparagraph (a) above, provided that the Participant has
continuously served as Chairman from the Award Date until the applicable December
15th following the later of (i) the Award Date, and (ii) his attainment of
Retirement Age, in the following amounts provided the Participant is serving as Chairman on
the applicable December 15th:
(i) on December 15, 2007, one-third of the Award shall be vested;
(ii) on December 15, 2008, an additional one-third of the Award shall
be vested; and
(iii) on December 15, 2009, the entire Award shall be vested.
(c) All Restricted Stock Units (and any substitute security and cash component
distributed in connection with a Change of Control) subject to this Award shall vest in
full, irrespective of the provisions set forth in subparagraphs (a) or (b) above,
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provided that the Participant has continuously served as Chairman since the Award Date,
upon the Participant ceasing to serve as Chairman pursuant to Section 4(a) of the Service
Agreement.
(d) For purposes of this Agreement,
(i) “Change of Control” means:
(A) any Person is or becomes the “beneficial owner” (as defined in Rule
13d-3 under the Securities Exchange Act of 1934, as amended), directly or
indirectly, of securities of the Company representing 20% or more of the
combined voting power of the Company’s outstanding Voting Securities, other
than through the purchase of Voting Securities directly from the Company
through a private placement; or
(B) individuals who constitute the Board on the date hereof (the
“Incumbent Board”) cease for any reason to constitute at least a majority
thereof, provided that any person becoming a Director subsequent to the date
hereof whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least two-thirds of the Directors
comprising the Incumbent Board shall from and after such election be deemed
to be a member of the Incumbent Board; or
(C) the Company is merged or consolidated with another corporation or
entity and as a result of such merger or consolidation less than 60% of the
outstanding Voting Securities of the surviving or resulting corporation or
entity shall then be owned by the former shareholders of the Company; or
(D) a tender offer or exchange offer is made and consummated by a
Person other than the Company for the ownership of 20% or more of the Voting
Securities of the Company then outstanding; or
(E) all or substantially all of the assets of the Company are sold or
transferred to a Person as to which:
(1) the Incumbent Board does not have authority (whether by law
or contract) to directly control the use or further disposition of
such assets; and
(2) the financial results of the Company and such Person are not
consolidated for financial reporting purposes.
(F) Anything else in this definition to the contrary notwithstanding:
(1) no Change of Control shall be deemed to have occurred by virtue of
any transaction which results in the Participant, or a group of Persons
which includes the Participant, acquiring more than 20%
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of either the combined voting power of the Company’s outstanding Voting
Securities or the Voting Securities of any other corporation or entity which
acquires all or substantially all of the assets of the Company, whether by
way of merger, consolidation, sale of such assets or otherwise; and
(2) no Change of Control shall be deemed to have occurred unless such
event constitutes an event specified in Code Section 409A(2)(a)(v) and the
Treasury Regulations promulgated thereunder.
(ii) “Person” means, any individual, corporation, partnership, group,
association or other “person,” as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended, and the related
rules and regulations promulgated thereunder.
(iii) “Retirement Age” means the earlier to occur of:
(A) age 65 or more, or
(B) age 60 or more with at least 15 years of continuous service with
the Company,
provided that the Participant has remained in service with the Company until
the earlier to occur of (A) or (B). The Company hereby acknowledges that
Participant has satisfied the requirements of “Retirement Age” as set forth
herein as of the date of this Agreement.
(iv) “Voting Securities” means, with respect to any corporation or
other business enterprise, those securities, which under ordinary
circumstances are entitled to vote for the election of directors or others
charged with comparable duties under applicable law.
3. Forfeiture of Award. If the Participant ceases to serve as Chairman pursuant to Section
4(b) of the Service Agreement, all unvested Restricted Stock Units as of the date Participant no
longer serves as Chairman shall be forfeited.
4. Registration of Units. The Participant’s right to receive the Restricted Stock Units shall
be evidenced by book entry registration (or by such other manner as the Committee may determine).
5. Dividend Equivalent Payments. The Company will pay dividend equivalents for each
outstanding Restricted Stock Unit in cash as soon as administratively practicable after dividends,
if any, are paid on the Company’s outstanding shares of Common Stock. Such payments shall be made
no later than March 15th following the year in which the dividends are paid.
6. Shareholder Rights. The Participant shall have no rights of a shareholder with respect to
shares of Common Stock subject to this Award unless and until such time as the Award has been
settled by the transfer of shares of Common Stock to the Participant.
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7. Settlement and Delivery of Shares.
(a) Unless settled earlier pursuant to Sections 7(b) or 7(c) below, settlement of
vested Restricted Stock Units that vest in accordance with Subparagraph 2(a) shall be made
as soon as administratively practicable after vesting, but in no case later than the 15th
day of the third calendar month following the calendar month in which vesting occurs. Unless
settled earlier pursuant to Sections 7(b) or 7(c) below, settlement of vested Restricted
Stock Units that vest in accordance with Subparagraph 2(b) shall be made as soon as
administratively practicable after the third anniversary of the Award Date, but in no case
later than the 15th day of the third calendar month following the calendar month in which
the third anniversary occurs.
(b) Upon Participant ceasing to serve as Chairman pursuant to Section 4(b) of the
Service Agreement, settlement of the Restricted Stock Units that have vested in accordance
with Subparagraph 2(b) shall be made as soon as administratively practicable after such
cessation of service, but in no case later than the 15th day of the third calendar month
following the calendar month in which the date of such cessation of service occurs.
(c) Upon Participant ceasing to serve as Chairman pursuant to Section 4(a) of the
Service Agreement, any unvested Restricted Stock Units shall be vested pursuant to
Subparagraph 2(c) and settlement of all such vested Restricted Stock Units shall be made as
soon as administratively practicable after such cessation of service, but in no case later
than the 15th day of the calendar month following the calendar month in which the date of
such cessation of service occurs.
(d) Settlement will be made by payment in shares of Common Stock.
(e) The Company shall not be obligated to deliver any shares of Common Stock if counsel
to the Company determines that such sale or delivery would violate any applicable law or any
rule or regulation of any governmental authority or any rule or regulation of, or agreement
of the Company with, any securities exchange or association upon which the Common Stock is
listed or quoted. The Company shall in no event be obligated to take any affirmative action
in order to cause the delivery of shares of Common Stock to comply with any such law, rule,
regulation or agreement.
8. Notices. Unless the Company notifies the Participant in writing of a different procedure,
any notice or other communication to the Company with respect to this Agreement or the Plan shall
be in writing addressed to the Corporate Secretary of the Company and shall be: (a) by registered
or certified United States mail, postage prepaid, to 00000 XX 000, Xxxxxxx, Xxxxx 00000-0000; or
(b) by hand delivery or otherwise to 00000 XX 000, Xxxxxxx, Xxxxx 00000-0000. Any such notice
shall be deemed effectively delivered or given upon receipt.
Notwithstanding the foregoing, in the event that the address of the Company’s principal
executive offices is changed prior to the date of any exercise of this Award, notices shall instead
be made pursuant to the foregoing provisions at the then current address of the Company’s principal
executive offices.
Any notice or other communication to the Participant with respect to this
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Agreement or the Plan shall be given in writing and shall be deemed effectively delivered or
given upon receipt or, in the case of notices mailed by the Company to the Participant, five days
after deposit in the United States mail, postage prepaid, addressed to the Participant at the
address specified at the end of this Agreement or at such other address as the Participant
hereafter designates by written notice to the Company.
9. Assignment of Award. Except as otherwise permitted by the Committee and as provided in the
immediately following paragraph, the Participant’s rights under the Plan and this Agreement are
personal, and no assignment or transfer of the Participant’s rights under and interest in this
Award may be made by the Participant other than by a domestic relations order. This Award is
payable during his lifetime only to the Participant, or in the case of the Participant being
mentally incapacitated, this Award shall be payable to his guardian or legal representative.
The Participant may designate a beneficiary or beneficiaries (the “Beneficiary”) to whom the
Award under this Agreement, if any, will pass upon the Participant’s death and may change such
designation from time to time by filing with the Company a written designation of Beneficiary on
the form attached hereto as Exhibit A, or such other form as may be prescribed by the Committee;
provided that no such designation shall be effective unless so filed prior to the death of the
Participant and no such designation shall be effective as of a date prior to receipt by the
Company. The Participant may change his Beneficiary without the consent of any prior Beneficiary
by filing a new designation with the Company. The last such designation that the Company receives
in accordance with the foregoing provisions will be controlling. Following the Participant’s
death, the Award, if any, will pass to the designated Beneficiary and such person will be deemed
the Participant for purposes of any applicable provisions of this Agreement. If no such
designation is made or if the designated Beneficiary does not survive the Participant’s death, the
Award shall pass by will or, if none, then by the laws of descent and distribution.
10. Withholding. The Company’s obligations under this Agreement shall be subject to the
satisfaction of all applicable federal, state and local income and employment tax withholding
requirements (the “Required Withholding”). The Company may withhold an appropriate amount of cash
(with respect to the payment of dividend equivalents) or number of shares from the Common Stock
that would otherwise have been delivered to the Participant (with respect to the settlement of the
Award) necessary to satisfy the Participant’s Required Withholding, and deliver the remaining
amount of cash or shares of Common Stock to the Participant, unless the Participant has made
arrangements with the Company for the Participant to deliver to the Company cash, check, other
available funds or shares of previously owned Common Stock for the full amount of the Required
Withholding by 5:00 p.m. Central Standard Time on the date an amount is included in the income of
the Participant. The amount of the Required Withholding and the number of shares to satisfy the
Participant’s Required Withholding shall be based on the Fair Market Value of the shares on the
date prior to the applicable date of income inclusion.
11. Stock Certificates. Certificates representing the Common Stock issued pursuant to the
settlement of an Award will bear all legends required by law and necessary or advisable to
effectuate the provisions of the Plan and this Award. The Company may place a “stop transfer”
order against shares of the Common Stock issued pursuant to this Award until all restrictions and
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conditions set forth in the Plan or this Agreement and in the legends referred to in this
Section 11 have been complied with.
12. Successors and Assigns. This Agreement shall bind and inure to the benefit of and be
enforceable by the Participant, the Company and their respective permitted successors and assigns
(including personal representatives, heirs and legatees), except that the Participant may not
assign any rights or obligations under this Agreement except to the extent and in the manner
expressly permitted in Section 9 of this Agreement.
13. No Service as Chairman Guaranteed. No provision of this Agreement shall confer any right
upon the Participant to serve as Chairman.
14. Code Section 409A Compliance. If any provision of this Agreement would result in the
imposition of an additional tax under Section 409A of the Code and related regulations and Treasury
pronouncements (“Section 409A”), that provision will be reformed to avoid imposition of the
additional tax and no action taken to comply with Section 409A shall be deemed to impair a benefit
under this Agreement.
15. Governing Law. This Agreement shall be governed by, construed, and enforced in accordance
with the laws of the State of Texas, excluding any choice of law provision thereof that would
result in the application of the laws of any other jurisdiction.
16. Amendment. Except as set forth herein, this Agreement cannot be modified, altered or
amended except by an agreement, in writing, signed by both the Company and the Participant.
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| OCEANEERING INTERNATIONAL, INC. |
||||
| Award Date: February 23, 2007 | By: | |||
| Xxxxxx X. Xxxxxxxxxxx, Xx. | ||||
| Senior Vice President, General Counsel and Secretary | ||||
The Participant hereby accepts the foregoing 2007 Chairman Restricted Stock Unit Agreement,
subject to the terms and provisions of the Plan and administrative interpretations thereof referred
to above.
| PARTICIPANT: |
||||||
| Date: | ||||||
| Participant’s Address: | ||||||
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\
Exhibit A to 2007 Chairman
Restricted Stock Unit Agreement
Restricted Stock Unit Agreement
Designation of Beneficiary
I, ______ (“Participant”), hereby declare that upon my death,
___ (the “Beneficiary”) of ______ (address), who is my
_________ (relationship), will be entitled to the Award which may become payable
under the Plan and all other rights accorded the Participant under the Participant’s 2007 Chairman
Restricted Stock Unit Agreement (capitalized terms used but not defined herein have the respective
meanings assigned to them in such agreement).
It is understood that this designation of Beneficiary is made pursuant to the Agreement and is
subject to the conditions stated therein, including the Beneficiary’s survival of Participant. If
any such condition is not satisfied, such rights shall devolve according to the Participant’s last
will and testament, or if none, then the laws of descent and distribution.
It is further understood that all prior designations of beneficiary under the Agreement are
hereby revoked upon the filing of this designation with the Company. This designation of
Beneficiary may only be revoked in writing, signed by the Participant, and filed with the Corporate
Secretary of the Company prior to the Participant’s death.
| Participant | ||||
| Date | ||||
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