SPECIAL RETENTION AWARD AGREEMENT HERCULES OFFSHORE, INC.
Exhibit 10.29
This Special Retention Award Agreement (the “Agreement”) is made and entered into by and
between Hercules Offshore, Inc., a Delaware corporation (the “Company”), and Xxxx X. Xxxx (the
“Participant”) as of January 1, 2011 (the “Grant Date”).
W I T N E S S E T H
WHEREAS, the Compensation Committee of the Board of Directors of the Company evaluates and
implements compensation plans to attract, motivate and retain executive officers who possess
superior capabilities and to encourage such persons to have a proprietary interest in the Company;
and
WHEREAS, the Compensation Committee of the Board of Directors of the Company believes that the
grant to the Participant of the special retention award, as described herein, is consistent with
its stated objective; and
NOW, THEREFORE, in consideration of the mutual covenants and conditions hereafter set forth
and for other good and valuable consideration, the Company and the Participant agree as follows:
1. Special Retention Award. In order to encourage the Participant’s contribution to the
successful performance of the Company, and in consideration of the covenants and promises of the
Participant herein contained, the Company hereby grants to the Participant as of the Grant Date
this special retention award (“Award”), subject to the conditions and restrictions set forth
herein.
2. Vesting and Payment.
| (a) | This Award shall vest if, and only if, the Participant remains continuously employed by the Company from the Grant Date until the earlier of (1) December 31, 2013, or (2) the date on which a Change in Control of the Company occurs (such earlier date being referred to herein as the “Vesting Date”) (the “Vesting Requirement”). | ||
| (b) | If the Vesting Requirement is satisfied, the Award shall vest, as of the Vesting Date, in the amount, less applicable withholding, equal to the product of: |
| (i) | 500,000, and | ||
| (ii) | The lesser of the Average Share Price and $10.00. |
| (Such amount shall be referred to herein as the “Retention Payment”.) The term “Average Share Price” shall mean the average of the closing prices for one share of common stock of the Company (“Common Stock”) reported on the consolidated transaction reporting system for the principal national securities exchange on which shares of the Common Stock are listed for each day on which such a price is reported during the period of ninety (90) calendar days ending on the day prior to the Vesting Date. | |||
| (c) | The Company shall pay the Retention Payment to the Participant in a single, lump sum cash payment during the thirty (30) calendar day period beginning on the first day after the Vesting Date. No other amounts shall be owed or paid under this Agreement. |
3. Restrictions on Transfer. If the Participant should die on or after the Vesting Date and
before receiving payment of the Retention Payment, the Retention Payment shall be paid to the
Participant’s beneficiary, if any, designated in accordance with the procedures prescribed by the
Compensation Committee of the Board of Directors of the Company (“Beneficiary”), and if no
Beneficiary is designated, then to the estate of the Participant. Except as provided in the
preceding sentence of this Paragraph 3, no right or benefit under this Agreement shall be subject
to transfer, anticipation, alienation, sale, assignment, pledge, encumbrance or charge, whether
voluntary, involuntary, by operation of law or otherwise, and any attempt to transfer, anticipate,
alienate, sell, assign, pledge, encumber or charge the same shall be void. No right or benefit
hereunder shall in any manner be liable for or subject to any debts, contracts, liabilities or
torts of the person entitled to such benefits. If the
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Participant or his Beneficiary hereunder shall become bankrupt or attempt to transfer,
anticipate, alienate, assign, sell, pledge, encumber or charge any right or benefit hereunder,
other than as contemplated by this Paragraph 3, or if any creditor shall attempt to subject the
same to a writ of garnishment, attachment, execution, sequestration, or any other form of process
or involuntary lien or seizure, then such right or benefit shall cease and terminate.
4. Effect of Termination of Employment. Vesting in the Award is conditioned upon
Participant’s continuous employment by the Company from the Grant Date until the Vesting Date.
Termination of the Participant’s employment with the Company by any means prior to the Vesting Date
shall result in forfeiture of the Award.
5. Limitation of Rights. Nothing in this Agreement shall be construed to:
| (a) | give the Participant any right to be awarded any other Award in the future, even if other Awards are granted on a regular or repeated basis, as grants of Awards are completely voluntary and made solely in the discretion of the Committee; | ||
| (b) | give the Participant or any other person any interest in any property, including but not limited to, any fund, asset or assets or shares of Common Stock or any asset or assets or shares of any subsidiary of the Company (“Subsidiary”); or | ||
| (c) | confer upon the Participant the right to continue in the employment or service of the Company or any Subsidiary, or affect the right of the Company or any Subsidiary to terminate the employment or service of the Participant at any time or for any reason. |
6. 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 herein.
7. Governing Law. This Award Agreement shall be governed by, construed and enforced in
accordance with the laws of the State of Delaware.
IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its officers
thereunto duly authorized, and the Participant has hereunto set his hand as of the day and year
first above written.
| HERCULES OFFSHORE, INC. | ||||||
| By: | /s/ Xxxxx X. Xxx | |||||
| Name: | Xxxxx X. Xxx | |||||
| Title: | Senior Vice President,
General Counsel and Chief Compliance Officer |
|||||
| PARTICIPANT | ||||||
| Name: | /s/ Xxxx X. Xxxx | |||||
| Name: | Xxxx X. Xxxx | |||||
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