exv10w6






Exhibit 10.6




FORM OF EXECUTIVE

ANNUAL STOCK INCENTIVE

PERFORMANCE UNIT AGREEMENT

(Goal Based; One Calendar Year Performance Period)




     AGREEMENT made as of the                      day of May, 2010 between GLOBAL INDUSTRIES, LTD., a Louisiana
corporation (the “Company”), and                                          (“Participant”).



     To carry out the purposes of the GLOBAL INDUSTRIES, LTD. 2005 STOCK INCENTIVE PLAN (the
“Plan”) and in consideration of services performed by Participant and the mutual agreements and
other matters set forth herein and in the Plan, the Company and the Participant hereby agree as
follows:



     1. Grant of Performance Units. The Company, pursuant to the Plan, has granted on
                    ,
20___ (the “Date of Grant”), to Participant                      performance units (each a
“Performance Unit”). Each Performance Unit represents the right to receive an unrestricted share
(which need not be a whole number) of common stock, $0.01 par value per share, of the Company
(“Stock”) for each Performance Unit to the extent “earned.” The Performance Units granted to
Participant under this Agreement shall be subject to all the terms, conditions and restrictions set
forth in the Plan and this Agreement, including future amendments to either, if any, pursuant to
the terms thereof. In the event of a change in the capitalization of the Company due to a stock
split, stock dividend, recapitalization, merger, consolidation, combination, or similar event, the
terms of this Agreement, including the number of Performance Units, may be adjusted by the
Committee to appropriately reflect such change.



     2. Earned Shares.




     (a) As soon as administratively practicable after the last day of the Performance
Period, the Committee shall determine for the Performance Period the 1) Earnings Per Share,
2) Free Cash Flow and 3) Backlog for the Company and the Earned Percentage. The Committee’s
determinations pursuant to the preceding sentence shall be certified by the Committee in
writing and delivered to the Secretary of the Company. For purposes of the preceding
sentence, written authorization of the Committee Chairman or approved minutes of the
Committee meeting in which the certification is made shall be treated as a written
certification. Shares of Stock shall be deemed earned under this Paragraph 2(a) (to the
extent the applicable performance goals are satisfied) on the date the Committee takes the
action set forth in the first sentence of this Paragraph 2(a) (the “Certification Date”).
At the time of such certification and based on the Earnings Per Share, Free Cash Flow and
Backlog “earned” for the Performance Period, the number of shares of Stock that shall be
earned shall be equal to the number of Performance Units granted hereunder multiplied by the
Earned Percentages (expressed as a percentage rounded to two decimal places). The Earned
Percentage shall be determined in accordance with the schedules set forth on Appendix A
hereto.



 









 






     (b) Notwithstanding any provision of Paragraph 2(a) to the contrary, no shares of Stock
shall be earned if Participant’s employment is Terminated for any reason by the Company or
by Participant for any reason other than death, Disability or Retirement, in either case
before the Certification Date.




     (c) In the event of a Change in Control during the Performance Period if such Change of
Control occurs either (i) while Participant is in the employ of the Company or (ii) on or
after the date upon which Participant’s employment with the Company terminated by reason of
Retirement, death or Disability, one share of Stock shall be earned for each Performance
Unit as of the effective date of such Change in Control multiplied by the portion (expressed
as the number of days in the Performance Period completed as of change in control date
divided by 365 as a percentage rounded to two decimal places) of the Performance Period
complete as of the date of the Change In Control and the provisions of Section 2(a) shall
cease to apply.




     (d) In the event of termination of Participant’s employment by reason of Retirement,
death or Disability and subject to the provisions of Paragraph 2(c), the number of shares of
Stock that shall be earned on the Certification Date shall equal the total number of shares
of Stock that would be earned as provided in Paragraph 2(a) if Participant was still
employed on the Certification Date multiplied by the portion (expressed as the number of
days in the Performance Period during which Participant was actively employed divided by 365
as a percentage rounded to two decimal places) of the Performance Period during which
Participant was an employee of the Company.



     3. Stock Issuance. The Company shall cause to be issued certificates representing any
shares of Stock earned hereunder in the name of Participant (or the estate or beneficiary of
Participant in the event of Participant’s prior death) as promptly as practicable after the
Certification Date, but in no event later than March 15th of the calendar year after the calendar
year in which the “Performance Period” (as defined in Appendix A) ends; provided however, that, if
the shares of Stock are earned pursuant to Paragraph 2(c), then the certificates shall be issued on
the effective date of the Change in Control. No fraction of a share of Stock shall be issued by
the Company under this Agreement; rather, the total number of shares of Stock that would otherwise
be issued hereunder shall be rounded up to the next whole share of Stock. Unless and until a
certificate or certificates representing such shares of Stock shall have been issued by the Company
to Participant, Participant (or the estate or beneficiary of Participant in the event of
Participant’s prior death) shall not be or have any of the rights or privileges of a shareholder of
the Company with respect to shares of Stock that may be, or have been, earned under this Agreement.
The shares of Stock so issued under this Agreement and the Plan shall be issued in Participant’s
name and subject to all the terms, conditions and restrictions set forth in the Plan and this
Agreement. The Company, in its sole discretion, may elect to deliver the certificate either in
certificate form or electronically to a brokerage account established for Participant’s benefit at
a brokerage/financial institution selected by the Company. Participant agrees to complete and sign
any documents and take additional action that the Company may request to enable it to deliver the
shares on Participant’s behalf.



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     4. Securities Laws Compliance.




     (a) The Company has registered or intends to register for issuance under the Securities
Act of 1933, as amended (the “Act”), the shares of Stock that may be earned and issued under
this Agreement. In the absence of such effective registration or an available exemption
from registration under the Act, issuance of shares of Stock earned under this Agreement
will be delayed until registration of such shares is effective or an exemption from
registration under the Act is available. The Company intends to use its reasonable best
efforts to insure that no delay will occur. If an exemption from registration under the Act
is available and necessary upon issuance of shares of Stock earned hereunder, Participant
(or the estate or beneficiary of Participant in the event of Participant’s prior death), if
requested by the Company to do so, will execute and deliver to the Company in writing an
agreement containing such provisions as the Company may require to assure compliance with
applicable securities laws.




     (b) Participant agrees that the shares of Stock acquired hereunder will not be sold or
otherwise disposed of in any manner that would constitute a violation of any applicable
securities laws. Participant also agrees that (i) the certificates representing the shares
of Stock acquired under this Agreement may bear such legend or legends as the Administrator
of the Plan deems appropriate in order to assure compliance with applicable securities laws,
(ii) the Company may refuse to register the transfer of the share of Stock acquired under
this Agreement on the transfer records of the Company if such proposed transfer would, in
the opinion of counsel satisfactory to the Company, constitute a violation of any applicable
securities law and (iii) the Company may give related instructions to its transfer agent, if
any, to stop registration of the transfer of the shares of Stock acquired under this
Agreement.



     5. Withholding of Tax. To the extent the earning or issuance of Performance Units or
shares of Stock or the lapse of Forfeiture Restrictions results in the receipt of compensation
income or wages by Participant for federal, state or local tax purposes, Participant shall deliver
to the Company at such time such amount of money (or, with the consent of the Administrator, shares
of Stock) as the Company may require to meet all obligations under applicable tax laws or
regulations, and if Participant fails to do so, the Company is authorized to withhold from any cash
or stock compensation then or thereafter payable to Participant, including from the shares of Stock
otherwise issuable under this Agreement, any tax required to be withheld by reason thereof. If
Participant makes the election authorized by section 83(b) of the Code, Participant shall submit to
the Company a copy of the statement filed by Participant to make such election.



     6. Community Interest of Spouse. The community interest, if any, of any spouse of
Participant in any of the Restricted Shares shall be subject to Restricted Shares shall be subject
to all other terms, conditions and restrictions of this Agreement and the Plan, and shall be
forfeited and surrendered to the Company upon the occurrence of any of the events requiring
Participant’s interest in such Restricted Shares to be so forfeited and surrendered pursuant to
this Agreement or the Plan.



     7. Employment Relationship. Nothing contained in this Agreement or the Plan shall
interfere with or limit in any way the right of the Company to terminate the employment of



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Participant, nor confer upon Participant any right to continued employment. For purposes of
this Agreement, Participant shall be considered to be an employee of the Company so long as
Participant remains an employee of either the Company, or a parent or subsidiary of the Company.
Without limiting the scope of the preceding sentence, it is expressly provided that Participant’s
employment with the Company shall be considered to have been terminated at the time the entity or
other organization that employs Participant ceases to be a parent or subsidiary of the Company
event shall not constitute a Termination for Cause. Subject to the preceding sentence, any
question as to whether and when there has been a termination of such employment, and whether such
event is a Termination for Cause, shall be determined by the Committee, and its determination shall
be final.




     8. Entire Agreement; Amendment. Except to the extent expressly provided otherwise in
any employment, severance or change of control agreement with Participant, this Agreement replaces
and merges all previous agreements and discussions relating to this award of Performance Units
between Participant and the Company and together with the Plan constitutes the entire agreement
between Participant and the Company with respect to the subject matter of this Agreement. This
Agreement may not be modified in any respect by any verbal statement, representation or agreement
made by any employee, officer, or representative of the Company. Except as provided below, any
modification of this Agreement shall be effective only if it is in writing and signed by both
Participant and an authorized officer of the Company. Notwithstanding anything in the Plan or this
Agreement to the contrary, if the Committee determines that the provisions of Section 409A of the
Code apply to this Agreement and that the terms of this Agreement do not, in whole or in part,
satisfy the requirements of such section, then the Committee, in its sole discretion, may
unilaterally modify this Agreement in such manner as it deems appropriate to comply with such
section and any regulations or guidance issued thereunder.



     9. Notices. Any notices or other communications provided for in this Agreement shall
be sufficient if in writing. In the case of Participant, such notices or communications shall be
deemed effectively delivered if hand delivered to Participant at Participant’s principal place of
employment or if sent by registered or certified mail, return receipt requested, postage paid, to
Participant at the last address Participant has filed with the Company. In the case of the
Company, such notices or communications shall be effectively delivered if sent by registered or
certified mail to the Company at its principal executive offices.



     10. Interpretation. In the event of any conflict between the terms of this Agreement
and the Plan, the Plan shall control.



     11. Acknowledgments. Participant is not relying upon any written or oral statement or
representation of the Company, its affiliates, or any of its or their respective employees,
officers, directors, attorneys or agents (collectively, the “Company Parties”) regarding the tax
consequences associated with Participant’s execution of this Agreement, and in deciding to enter
into this Agreement, Participant is relying on his own judgment and the judgment of the
professionals of his choice with whom he has consulted. Participant hereby releases, acquits and
forever discharges the Company Parties from all actions, causes of actions, suits, debts,
obligations, liabilities, claims, damages, losses, costs and expenses of any nature whatsoever,
known or unknown, on account of, arising out of, or in any way related to the tax consequences



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associated with Participant’s execution of this Agreement and his receipt of Performance Units
or shares of Stock hereunder.




     12. Certain Definitions. Wherever used in this Agreement, the following words and
phrases when capitalized will have the meanings ascribed below, unless the context clearly
indicates to the contrary, and all capitalized terms used in this Agreement, which are not defined
in this Agreement, will have the meanings set forth in the Plan.



     “Backlog” means the combined value at a point in time of all executed contracts and
unambiguous letters of intent to perform future work for customers.



     “Capex” means any expenditure or the incurrence of any liability for any purchase or other
acquisition of any asset which would be classified as a fixed asset on the consolidated balance
sheet of the Company prepared in accordance with GAAP, but excluding any such expenditures related
to the construction of the Global 1200 and Global 1201.



     “Cash Tax” means foreign, federal, state, and local taxes on net income as reflected on the
Statement of Operations included in the Company’s Form 10-K for the Performance Period, plus or
minus any taxes which have been classified as deferred income taxes reflected on the Statement of
Cash Flow included in the Company’s Form 10-K for the Performance Period.



     “Disability” means that, as a result of incapacity due to physical or mental illness, a
Participant has been absent from work for an extended period and has been determined to be
permanently and totally disabled by the Social Security Administration or under the terms of the
Company’s long-term disability plan.



     “Drydock Costs” means any expenditure or the incurrence of any liability for cost incurred
which would be classified as a deferred charge for regulatory vessel maintenance on the
consolidated balance sheet of the Company prepared in accordance with GAAP.



     “Earnings Per Share” or “EPS” means, with respect to the Performance Period, the sum of the
annual “earnings per common share — diluted” reflected in the regularly prepared and publicly
available consolidated financial statements of the Company prepared in accordance with GAAP for the
Performance Period, adjusted for non-recurring, unusual and unexpected items.



     “EBITDA” means, with respect to the Performance Period, consolidated net income reflected in
the regularly prepared and publicly available consolidated financial statements of the Company
plus, to the extent deducted in determining consolidated net income, (i) consolidated interest
expense, (ii) foreign, federal, state and local taxes on net income, (iii) depreciation expense,
(iv) amortization expense, (v) non-operating, non-cash charges, (vi) non-cash charges related to
the impairment of assets or losses in connection with the sale or disposal of assets, minus
non-operating gains and other gains in connection with the sale or disposal of assets, all
determined in accordance with GAAP.



     “Free Cash Flow” or “FCF” means EBITDA minus Capex, Drydock Costs and Cash Taxes.



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     “GAAP” means United States generally accepted accounting principles, consistently applied.



     “Performance Period” means the one-year period set forth on Appendix A of this Agreement.



     “Retirement” means the termination of Participant’s employment with the consent of the Company
after at least ten years of service, not including service time with any company or entity acquired
by the Company prior to such acquisition.



     “Termination for Cause” means termination as a result of Participant’s gross negligence or
willful misconduct in the performance of his employment or Participant’s final conviction of a
misdemeanor involving moral turpitude or any felony.



     13. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
any successors to the Company and all persons lawfully claiming under Participant.



     14. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Texas.



     15. Section 409(A). To the extent that Code Section 409A applies to any Performance
Units granted under this Agreement, (a) this Agreement shall be construed and interpreted to comply
with Code Section 409A, (b) notwithstanding anything herein to the contrary, the required
definitions under Code Section 409A shall be used, and (c) with respect to any shares of Stock to
be issued on account of a termination of employment of a Participant who is a “Specified Employee”
within the meaning of Code Section 409A at the time of such termination of employment, such shares
shall not be issued until the first business day which is six (6) months after the Participant’s
termination of employment. For the purposes of Code Section 409A to the extent it applies to the
Performance Units under this Agreement, a termination of employment under this Agreement shall mean
a “separation of service” within the meaning of Code Section 409A, Disability shall comply with the
requirements of such term in Section 1.409A-3(i)(4) of the final regulations, and an event under
this Agreement will not constitute a Change in Control during the Performance Period unless it is
also a “change in the ownership or effective control of” the Company, or a “change in the ownership
of a substantial portion of the assets” of the Company (in each case as determined under Section
409A(a)(2)(A)(v) of the Code and final Treasury Regulations or other IRS guidance issued under Code
Section 409A from time to time).



[Signature page follows.]




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     IN WITNESS WHEREOF, the Company has executed this Agreement by its duly authorized officer,
and Participant has executed this Agreement, all as of the day and year first above written.



	 	 	 	 	 	 	 

	 	 	GLOBAL INDUSTRIES, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	PARTICIPANT	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 











 









 








Appendix A




ANNUAL 2010 STOCK INCENTIVE

PERFORMANCE UNIT AGREEMENT



AWARD OF PERFORMANCE UNITS


Performance Period: January 1, 2010 to December 31, 2010



Calculation of earned award shall be made for each Performance Measure.




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	% of	 	Maximum	 	Target	 	Threshold
	Performance Measure	 	Target	 	Goal	 	Goal	 	Goal
	Earnings Per Share (EPS)
	 	 	33.33	 	 	$	0.64	 	 	$	0.32	 	 	$	0.11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Free Cash Flow (FCF)
	 	 	33.33	 	 	$	100.0M	 	 	$	70.0M	 	 	$	50.0M	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Backlog (12/31/10)
	 	 	33.33	 	 	Discretionary	 	Discretionary	 	$	300.0M	 






	 	 	 
	Actual Performance for EPS &	 	 
	FCF for the Performance Period	 	Earned Percentage
	At or above the Maximum Goal

	 	200%
	 	 	 
	Above the Target Goal but less than the 

Maximum Goal
	 	Calculated percentage between

100% and 200%
	 	 	 
	At the Target Goal
	 	100%
	 	 	 
	Above the Threshold Goal but less than the 

Target Goal
	 	Calculated percentage between

50% and 100%
	 	 	 
	At the Threshold Goal
	 	50%
	 	 	 
	Below the Threshold Goal
	 	0%






     The calculated percentage referred to in the schedule above shall be determined (i) for an EPS
and FCF above the Target Goal but less than the Maximum Goal by increasing the stated Earned
Percentage at the Target Goal (100%) by the Above Target Incremental Percentage (as defined below)
and (ii) for an EPS and/or FCF above the Threshold Goal but less than the Target Goal by increasing
the stated Earned Percentage at the Threshold Goal (50%) by the Below Target Incremental Percentage
(as defined below).



Appendix A-1




 









 








     “Above Target Incremental Percentage” means the amount equal to (i) the Earned Percentage for
the Maximum Goal (200%) minus the Earned Percentage at the Target Goal (100%) multiplied by (i) (A)
actual EPS/FCF over the Target Goal divided by (B) the difference between the Maximum Goal for
EPS/FCF, as the case may be, and the Target Goal for EPS/FCF, as the case may be.



     To illustrate the calculation of the Above Target Incremental Percentage, if, for the
Performance Period, the Target Goal EPS is $1.00, the Maximum Goal for EPS is $2.00 and the actual
EPS is $1.60, then the Above Target Incremental Percentage is 60%, calculated as follows: ((200% -
100%) * [($1.60 — $1.00)/($2.00 — $1.00)]). Since the actual EPS exceeds the Maximum Goal for EPS
in this example by $0.60, the Earned Percentage would be 160%, calculated as follows: the Earned
Percentage for at the Target Goal (100%) plus the Above Target Incremental Percentage (60%).



     “Below Target Incremental Percentage” means the amount equal to (i) the Earned Percentage for
the Target Goal (100%) minus the Earned Percentage for the Threshold Goal (50%) multiplied by (i)
(A) actual EPS/FCF over the Threshold Goal divided by (B) the difference between the Target Goal
for EPS/FCF, as the case may be, and the Threshold Goal for EPS/FCF, as the case may be.



     To illustrate the calculation of Below Target Incremental Percentage, if, for the Performance
Period, the Target Goal for EPS is $0.40, the Threshold Goal for EPS is $0.20, and the actual EPS
is $0.30, then the Below Target Incremental Percentage is 25%, calculated as follows: (50% *
($.10/$.20). Since the actual EPS exceeds the Threshold Goal for EPS in this example by $0.10, the
Earned Percentage would be 75%, calculated as follows: the Earned Percentage for at the Threshold
Goal (50%) plus the Below Target Incremental Percentage (25%).



     Backlog Results for the Performance Period



     Global defines and regularly tracks its backlog of future work. Backlog is defined as the
combined value of all executed contracts and unambiguous letters of intent to perform future work
for customers. To earn a Threshold Award for Backlog in 2010, the Company’s Backlog as of December
31, 2010 must equal or exceed $300 million. To determine Earned Percentage above the Threshold,
the Committee will evaluate the amount by which actual Backlog exceeds the Threshold and the
anticipated timetable and profitability of the Backlog.



Appendix A-2