Document:

Exhibit 10.2

 

 

Carbon Energy Corporation

 

Omnibus Annual Incentive Plan

 

     

     

    

 

Carbon Energy Corporation

 

Omnibus Annual Incentive Plan

 

1.
Background and Purpose.

 

1.1 Purpose.
The purpose of Carbon Energy Corporation’s (the “Company”) Omnibus Annual Incentive Plan (the “Plan”)
is to meet the following objectives:

 

		●	Provide a plan that is performance driven and is focused
on objectives which are critical to the success of Carbon Energy Corporation and to the creation of value for the stockholders;

 

		●	Offer competitive cash compensation for employees;

 

		●	Reward outstanding achievement; and

 

		●	Recruit and retain key employees.

 

1.2 The Plan provides
for Annual Incentive Awards which will be determined, in part, on the basis of the Company’s achievement of financial and
operating performance measures, including with respect to the Company’s Affiliates, Carbon California Company, LLC (“Carbon
California”) and/or Carbon Appalachian Company, LLC (“Carbon Appalachia”) and/or Nytis
Exploration Company LLC (“Nytis”).

 

1.3
Effective Date. The Plan is effective as of January 1, 2019 (the “Effective Date”), and
shall remain in effect until it has been terminated pursuant to Section 9.6.

 

2.
Definitions. The following terms shall have the following meanings:

 

“Affiliate”
means any corporation, partnership, limited liability company, limited liability partnership, association, trust or other organization
that, directly or indirectly, controls, is controlled by, or is under common control with, the Company. For purposes of the preceding
sentence, “control” (including, with correlative meanings, the terms “controlled by” and “under common
control with”), as used with respect to any entity or organization, shall mean the possession, directly or indirectly, of
the power (i) to vote more than 50% of the securities having ordinary voting power for the election of directors of the controlled
entity or organization or (ii) to direct or cause the direction of the management and policies of the controlled entity or organization,
whether through the ownership of voting securities, by contract, or otherwise.

 

“Award”
means an award granted pursuant to the Plan, the payment of which shall be partially contingent on the attainment of Performance
Goals with respect to a Performance Period and partially determined at the discretion of the Committee, as determined by the Committee
pursuant to Section 5.2(b).

 

“Base Salary”
means (a) if the Participant was employed during the entire Performance Period, the Participant’s average rate of base
salary during the Performance Period or (b) if the Participant (i) was employed after the commencement of the Performance
Period, (ii) took a leave of absence during the Performance Period or (iii) was absent from employment during a portion
of the Performance Period due to unforeseen circumstances, the base salary earned during the Performance Period, in each case before
deductions for taxes or benefits.

 

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“Board”
means the Board of Directors of the Company, as constituted from time to time.

 

“Cause”
means:

 

(a) If the
Participant is a party to an employment agreement with the Company or an Affiliate and such agreement provides for a definition
of Cause, the definition contained therein; or

 

(b) If no
such agreement exists, or if such agreement does not define Cause:

 

(i) the Participant’s
willful failure to perform his or her duties (other than any such failure resulting from incapacity due to physical or mental illness);

 

(ii) the Participant’s
willful engagement in dishonesty, illegal conduct or misconduct, which is, in each case, materially injurious to the Company or
its Affiliates;

 

(iii) the Participant’s
embezzlement, misappropriation or fraud, whether or not related to the Participant’s employment with the Company;

 

(iv) the Participant’s
conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony (or state law equivalent) or a crime that
constitutes a misdemeanor involving moral turpitude, if such felony or other crime is work-related, materially impairs the Participant’s
ability to perform services for the Company or results in material harm to the Company or its Affiliates; or

 

(v) the Participant’s
violation of any restrictive covenants entered into between the Participant and the Company or the Company’s Code of Conduct.

 

“CEO”
means the Chief Executive Officer of the Company.

 

“Change
in Control” means any of the following:

 

(a) A “change
in the ownership” of the Company within the meaning of Treasury Regulation § 1.409A-3(i)(5)(v), whereby any one
person, or more than one person acting as a “group” (as such term is defined in Treasury Regulation § 1.409A-3(i)(5)(v)(B)),
acquires beneficial ownership (as such term is defined in Rule 13d-3), directly or indirectly, of securities in the Company that,
together with securities beneficially owned by such person or group, constitutes more than 50% of the total fair market value or
total voting power of the outstanding securities of the Company; provided, however, that this clause (a) shall not
apply to any acquisitions by funds affiliated with Yorktown Energy Partners or any of their respective Affiliates (collectively,
the “Yorktown Holders”) until the first date after the Effective Date on which the Yorktown Holders beneficially
own (as such term is defined in Rule 13d-3), directly or indirectly, less than 20% of the total voting power of the outstanding
securities of the Company;

 

(b) A “change
in the effective control” of the Company within the meaning of Treasury Regulation § 1.409A-3(i)(5)(vi), whereby
either (i) any one person, or more than one person acting as a “group” (as such term is defined in Treasury Regulation
§ 1.409A-3(i)(5)(vi)(D)), acquires (or has acquired during the 12-month period ending on the date of the most recent
acquisition by such person or persons) beneficial ownership (as such term is defined in Rule 13d-3), directly or indirectly, of
securities of the Company possessing 30% or more of the total voting power of the outstanding securities of the Company; provided,
however, that this clause (b)(i) shall not apply to any acquisitions by the Yorktown Holders until the first date after
the Effective Date on which the Yorktown Holders beneficially own (as such term is defined in Rule 13d-3), directly or indirectly,
less than 20% of the total voting power of the outstanding securities of the Company; or (ii) a majority of the members of the
Board are replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members
of the Board prior to the date of the appointment or election; or

 

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(c) A “change
in the ownership of a substantial portion” of the Company’s assets within the meaning of Treasury Regulation § 1.409A-3(i)(5)(vii),
whereby any one person, or more than one person acting as a “group” (as such term is defined in Treasury Regulation
§ 1.409A-3(i)(5)(vii)(C)), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition
by such person or persons) assets of the Company that have a total gross fair market value equal to or more than 40% of the total
gross fair market value of all the assets of the Company immediately prior to such acquisition or acquisitions.

 

Notwithstanding the
foregoing, if a Change in Control constitutes a payment event with respect to any portion of an Award that provides for a deferral
of compensation under the Nonqualified Deferred Compensation Rules, the transaction or event described in clauses (a), (b) or (c)
above with respect to such Award (or portion thereof) must also constitute a “change in control event,” as defined
in Treasury Regulation § 1.409A-3(i)(5) to the extent required by the Nonqualified Deferred Compensation Rules.

 

“Code”
means the U.S. Internal Revenue Code of 1986, as amended from time to time, including any regulations or authoritative guidance
promulgated thereunder and successor provisions thereto.

 

“Committee”
means the Compensation, Nominating and Governance Committee of the Board.

 

“Company”
means Carbon Energy Corporation, a Delaware corporation, and any successor thereto.

 

“Discretionary
Award” has the meaning provided in Section 5.2(b).

 

“Disability”
means unless otherwise defined in an employment agreement between the Participant and the Company, permanent and total disability
within the meaning of Code Section 22(e)(3).

 

“Nonqualified
Deferred Compensation Rules” means the limitations or requirements of Code Section 409A, as amended from time to
time, including the guidance and regulations promulgated thereunder and successor provisions, guidance and regulations thereto.

 

“Participant”
means as to any Performance Period, (a) the executive officers of the Company designated by the Committee to participate in
the Plan for a particular Performance Period and (b) other employees of the Company or an Affiliate who are designated by
the CEO to participate in the Plan for a particular Performance Period.

 

“Performance
Criteria” means the performance criteria upon which the Performance Goals for a particular Performance Period are
based, which may include any of the following, or such other criteria as determined by the Committee in accordance with Section
5.2:

 

(a) net earnings or
net income (before or after taxes);

 

(b) basic or diluted
earnings per share (before or after taxes);

 

(c) net revenues or
net revenue growth;

 

(d) gross revenue;

 

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(e) gross profit or
gross profit growth;

 

(f) net operating profit
(before or after taxes);

 

(g) return on assets,
capital, invested capital, equity or sales;

 

(h) cash flow (including,
but not limited to, operating cash flow, free cash flow, and cash flow return on capital);

 

(i) earnings before
or after taxes, interest, depreciation and/or amortization;

 

(j) gross or operating
margins;

 

(k) improvements in
capital structure;

 

(l) budget and expense
management;

 

(m) productivity ratios;

 

(n) economic value
added or other value-added measurements;

 

(o) share price (including,
but not limited to, growth measures and total shareholder return);

 

(p) production targets;

 

(q) expense targets;

 

(r) margins;

 

(s) operating efficiency;

 

(t) working capital
targets;

 

(u) enterprise value;

 

(v) safety record;
and

 

(w) completion of acquisitions,
divestitures or business expansion.

 

Such Performance Criteria
may relate to the performance of the Company as a whole, a business unit, division, department, individual or any combination of
these and may be applied on an absolute basis and/or relative to one or more peer group companies or indices, or any combination
thereof, as the Committee shall determine.

 

“Performance
Goals” means the financial and operating performance measures selected by the Committee, in its discretion, to be
applicable to a Participant for any Performance Period. Performance Goals shall be based upon one or more Performance Criteria.
Performance Goals may include a threshold level of performance below which no Award will be paid and levels of performance at which
specified percentages of the Target Award will be paid and may also include a maximum level of performance above which no additional
Award amount will be paid.

 

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“Performance
Period” means the period over which the attainment of one or more Performance Goals will be measured for the purpose
of determining a Participant’s right to and the payment of an Award, as determined by the Committee.

 

“Plan”
means the Company’s Omnibus Annual Incentive Plan, as hereafter amended from time to time.

 

“Plan Year”
means the Company’s fiscal year, which commences on January 1st and ends on December 31st.

 

“Pro-Rated
Award” means an amount equal to the Award otherwise payable to the Participant for a Performance Period in which
the Participant was actively employed by the Company or an Affiliate for only a portion thereof, multiplied by a fraction, the
numerator of which is the number of days the Participant was actively employed by the Company or an Affiliate during the Performance
Period and the denominator of which is the number of days in the Performance Period.

 

“Target
Award” means the target award payable under the Plan to a Participant for a particular Performance Period, expressed
as a percentage of the Participant’s Base Salary. In special circumstances, the target award may be expressed as a fixed
amount of cash.

 

3. Administration.

 

3.1 Administration
by the Committee. The Plan shall be administered by the Committee.

 

3.2 Authority
of the Committee. Subject to the provisions of the Plan and applicable law, the Committee shall have the power, in addition
to other express powers and authorizations conferred on the Committee by the Plan, to: (a) designate executive officer Participants;
(b) determine the terms and conditions of any Award; (c) determine whether, to what extent, and under what circumstances Awards
may be forfeited or suspended; (d) interpret, administer, reconcile any inconsistency, correct any defect and/or supply any omission
in the Plan or any instrument or agreement relating to, or Award granted under, the Plan; (e) establish, amend, suspend, or
waive any rules for the administration, interpretation and application of the Plan; and (f) make any other determination and take
any other action that the Committee deems necessary or desirable for the administration of the Plan.

 

3.3 Decisions
Binding. All determinations and decisions made by the Committee, the Board, and any delegate of the Committee pursuant
to the provisions of the Plan shall be final, conclusive and binding on all persons, and shall be given the maximum deference permitted
by law.

 

3.4 Delegation
by the Committee. The Committee, in its sole discretion, may delegate all or part of its authority and powers under
the Plan to one or more officers of the Company; provided, however, that the Committee may not delegate its responsibility
to make Awards to executive officers.

 

3.5 Agents;
Limitation of Liability. The Committee may appoint agents to assist in administering the Plan. The Committee and each
member thereof shall be entitled to, in good faith, rely or act upon any report or other information furnished to it or him by
any officer or employee of the Company, the Company’s certified public accountants, consultants or any other agent assisting
in the administration of the Plan. Members of the Committee and any officer or employee of the Company acting at the direction
or on behalf of the Committee shall not be personally liable for any action or determination taken or made in good faith with respect
to the Plan, and shall, to the extent permitted by law, be fully indemnified and protected by the Company with respect to any such
action or determination. The Company’s Chief Financial Officer shall verify for the Committee the calculations of any financial
and operating measures.

 

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4. Eligibility
and Participation.

 

4.1
Eligibility. Other than executive officer Participants (whose eligibility shall be determined by the Committee),
the CEO shall determine which employees shall participate in the Plan.

 

4.2 Participation.
The Committee (with respect to the executive officers) or the CEO (with respect to all other employees), in its or his discretion,
shall select the persons who shall be Participants for each Performance Period. Only eligible individuals who are designated by
the Committee or the CEO, as the case may be, to participate in the Plan with respect to a particular Performance Period may participate
in the Plan for that Performance Period. An individual who is designated as a Participant for a given Performance Period is not
guaranteed or assured of being selected for participation in any subsequent Performance Period.

 

4.3 New
Hires; Newly Eligible Participants. A newly hired or newly eligible Participant will be eligible to receive a Pro-Rated
Award at the discretion of the Committee or the CEO, as the case may be.

 

4.4 Leaves
of Absence. If a Participant is on a leave of absence for a portion of a Performance Period, the Participant will be
eligible to receive a Pro-Rated Award reflecting participation for the period during which he or she was actively employed and
not any period when he or she was on leave.

 

5. Terms
of Awards.

 

5.1
Determination of Target Awards. Prior to, or reasonably promptly following the commencement of each Performance
Period, the Committee (or the CEO, as applicable), in its sole discretion, shall establish the Target Award for each Participant,
the payment of which shall be conditioned on the achievement of the Performance Goals for the Performance Period.

 

5.2 Determination
of Performance Goals and Performance Formula; Discretionary Awards.

 

(a) Prior
to, or reasonably promptly following the commencement of, each Performance Period, the Committee, in its sole discretion, shall
establish in writing the Performance Goals for the Performance Period and shall prescribe a formula for determining the percentage
of the Target Award which may be payable based upon the level of attainment of the Performance Goals for the Performance Period.
The Performance Goals shall be based on one or more Performance Criteria, each of which may carry a different weight, and which
may differ from Participant to Participant.

 

(b)
In addition to the Performance Goals, the Committee may establish a discretionary component of the Awards (the “Discretionary
Award”) designed to reward notable achievements which may not be captured in the Performance Goals. If the Committee
establishes Discretionary Awards for a particular Performance Period, it shall also prescribe the percentage of the Target Award
which is attributable to such Discretionary Award.

 

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5.3 Adjustments.

 

(a)
The Committee is authorized to adjust or modify the calculation of a Performance Goal for a Performance Period in connection
with any one or more of the following events:

 

(i) changes
in the Company’s business plan;

 

(ii) asset
write-downs;

 

(iii) significant
litigation or claim judgments or settlements;

 

(iv) the effect
of changes in tax laws, accounting standards or principles, or other laws or regulatory rules affecting reporting results;

 

(v) any reorganization
and restructuring programs;

 

(vi) acquisitions
or divestitures;

 

(vii) any other
specific unusual or nonrecurring events or objectively determinable category thereof;

 

(viii) commodity
prices;

 

(ix) a change
in the Company’s fiscal year; and

 

(x) changes
in the Company’s (or its Affiliate’s) capital expenditure budget.

 

(b) The CEO
is authorized to adjust or modify, at his discretion, the Target Awards and the allocation of Awards among Participants other than
executive officer Participants.

 

6.
Payment of Awards.

 

6.1
Determination of Awards.

 

(a) Following
the completion of each Performance Period, the Company’s Chief Financial Officer shall provide the Committee with the calculations
of the Performance Goals and the Committee shall determine the extent to which the Performance Goals have been achieved or exceeded.
If the minimum Performance Goals established by the Committee are not achieved, then no payment will be made.

 

(b) To the
extent that the Performance Goals are achieved, the Committee shall determine the extent to which the Performance Goals applicable
to each Participant have been achieved and shall then determine the amount of each Participant’s Award.

 

6.2
Form and Timing of Payment. Except as otherwise provided herein, as soon as practicable following the determination
pursuant to Section 6.1 for the applicable Performance Period, each Participant shall receive a cash lump sum payment of
his or her Award, less required withholding. In no event shall such payment be made later than 2 1/2 months following the date
the Committee determines that the Performance Goals have been achieved, which determination shall be made as quickly as practicable
following the completion of the audit or review of the Company’s financial statements for the applicable Performance Period.

 

6.3
Employment Requirement. Except as otherwise provided in Section 7, no Award shall be paid to any Participant
who is not actively employed by the Company or an Affiliate on the last day of the Performance Period.

 

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7. Termination
of Employment.

 

7.1 Employment
Requirement. Except as otherwise provided in Section 7.2, if a Participant’s employment terminates for
any reason prior to the last day of the Performance Period, all of the Participant’s rights to an Award for the Performance
Period shall be forfeited; provided, however, the Committee, in its sole discretion, may pay a Pro-Rated Award, subject
to the Committee’s determination that the Performance Goals for the Performance Period have been met. Such Pro-Rated Award
will be paid at the same time and in the same manner as Awards are paid to other Participants. Notwithstanding the foregoing, if
a Participant’s employment is terminated for Cause, the Participant shall in all cases forfeit any Award not already paid.

 

7.2
Termination of Employment Due to Death or Disability. If a Participant’s employment is terminated by reason
of his or her death or Disability during a Performance Period, the Participant or his or her beneficiary will be paid a Pro-Rated
Award. In the case of a Participant’s Disability, the employment termination shall be deemed to have occurred on the date
that the Committee determines that the Participant is Disabled. Payment of such Pro-Rated Award will be made at the same time
and in the same manner as Awards are paid to other Participants.

 

8. Change
in Control.

 

8.1 If a Change in
Control occurs during a Performance Period, Awards under the Plan will be calculated based on the Company’s performance as
of the date of the Change in Control. Awards paid in connection with a Change in Control will be paid no later than 2 1/2 months
following the date the Committee determines that the Performance Goals have been achieved.

 

9. General
Provisions.

 

9.1 Compliance
with Legal Requirements. The Plan and the granting of Awards shall be subject to all applicable federal and state laws,
rules and regulations, and to such approvals by any regulatory or governmental agency as may be required.

 

9.2 Non-transferability.
A person’s rights and interests under the Plan, including any Award previously made to such person or any amounts payable
under the Plan may not be assigned, pledged, or transferred, except in the event of the Participant’s death, to a designated
beneficiary in accordance with the Plan, or in the absence of such designation, by will or the laws of descent or distribution.

 

9.3 No
Right to Employment. Nothing in the Plan or in any notice of Award shall confer upon any person the right to continue
in the employment of the Company or any Affiliate or affect the right of the Company or any Affiliate to terminate the employment
of any Participant.

 

9.4 No
Right to Award. Unless otherwise expressly set forth in an employment agreement signed by the Company and a Participant,
a Participant shall not have any right to any Award under the Plan until such Award has been paid to such Participant and participation
in the Plan in one Performance Period does not connote any right to become a Participant in the Plan in any future Performance
Period.

 

9.5 Withholding.
The Company shall have the right to withhold from any Award, any federal, state or local income and/or payroll taxes required by
law to be withheld and to take such other action as the Committee may deem advisable to enable the Company and Participants to
satisfy obligations for the payment of withholding taxes and other tax obligations relating to an Award.

 

9.6 Amendment
or Termination of the Plan. The Board or the Committee may, at any time, amend, suspend or terminate the Plan in whole
or in part. Notwithstanding the foregoing, no amendment shall adversely affect the rights of any Participant to Awards allocated
prior to such amendment, suspension or termination.

 

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9.7 Unfunded
Status. Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed
to create a trust of any kind or a fiduciary relationship between the Company and any Participant, beneficiary or legal representative
or any other person. To the extent that a person acquires a right to receive payments under the Plan, such right shall be no greater
than the right of an unsecured general creditor of the Company. All payments to be made hereunder shall be paid from the general
funds of the Company and no special or separate fund shall be established and no segregation of assets shall be made to assure
payment of such amounts except as expressly set forth in the Plan. The Plan is not intended to be subject to the Employee Retirement
Income Security Act of 1974, as amended (ERISA).

 

9.8 Governing
Law. The Plan shall be construed, administered and enforced in accordance with the laws of Colorado without regard to
conflicts of law.

 

9.9 Beneficiaries.
To the extent that the Committee permits beneficiary designations, any payment of Awards due under the Plan to a deceased Participant
shall be paid to the beneficiary duly designated by the Participant in accordance with the Company’s practices. If no such
beneficiary has been designated or survives the Participant, payment shall be made by will or the laws of descent or distribution.

 

9.10 Nonqualified
Deferred Compensation Rules. It is intended that payments under the Plan qualify as short-term deferrals exempt from
the requirements of the Nonqualified Deferred Compensation Rules. In the event that any Award does not qualify for treatment as
an exempt short-term deferral, it is intended that such amount will be paid in a manner that satisfies the requirements of the
Nonqualified Deferred Compensation Rules. The Plan shall be interpreted and construed accordingly.

 

9.11 Expenses.
All costs and expenses in connection with the administration of the Plan shall be paid by the Company.

 

9.12 Section
Headings. The headings of the Plan have been inserted for convenience of reference only and in the event of any conflict,
the text of the Plan, rather than such headings, shall control.

 

9.13 Severability.
In the event that any provision of the Plan shall be considered illegal or invalid for any reason, such illegality or invalidity
shall not affect the remaining provisions of the Plan, but shall be fully severable, and the Plan shall be construed and enforced
as if such illegal or invalid provision had never been contained therein.

 

9.14 Gender
and Number. Except where otherwise indicated by the context, wherever used, the masculine pronoun includes the feminine
pronoun; the plural shall include the singular, and the singular shall include the plural.

 

9.15 Non-exclusive.
Nothing in the Plan shall limit the authority of the Company, the Board or the Committee to adopt such other compensation arrangements,
as it may deem desirable for any Participant.

 

9.16 Notice.
Any notice to be given to the Company or the Committee pursuant to the provisions of the Plan shall be in writing and directed
to the Secretary of the Company at 1700 Broadway, Suite 1170, Denver, Colorado 80290.

 

9.17 Successors.
All obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding upon any successor to the
Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation or otherwise,
of all or substantially all of the assets of the Company.

 

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9.18 Clawback.

 

(a)
If the Board determines that a significant restatement of the Company’s financial results or other Company metrics
for any of the three prior fiscal years for which audited financial statements have been prepared is required and (a) such restatement
is the result of fraud or willful misconduct and (b) the Participant’s Award amount would have been lower had the results
or metrics been properly calculated, the Committee has the authority to obtain reimbursement from any Participant responsible for
the fraud or willful misconduct resulting in the restatement. Such reimbursement shall consist of any portion of any Award previously
paid that is greater than it would have been if calculated based upon the restated financial results or metrics.

 

(b) The action
permitted to be taken by the Board under this Section 9.18 is in addition to, and not in lieu of, any and all other rights of the
Board and/or the Company under applicable law and shall apply notwithstanding anything to the contrary in the Plan.

 

 

11EX-10.1

 Exhibit 10.1 

SEPARATION AGREEMENT 

This Separation Agreement (this “Agreement”) is entered into by and between, and shall inure to the benefit of and be binding
upon, the following parties: 
 STUART SPENCE, hereinafter referred to as “Employee”; and 

MCDERMOTT, INC., a Delaware corporation, hereinafter referred to as the “Company.” 

W I T N E S S E T H: 

WHEREAS, Employee is currently an employee of the Company; 

WHEREAS, pursuant to a resignation letter in the form attached hereto as Exhibit A, Employee has tendered to McDermott International, Inc., a
Panamanian corporation of which the Company is a wholly owned subsidiary (“MII”), Employee’s resignation from all positions held as an officer, employee, member of the board of directors or board of managers (and member of any
and all committees thereof), of MII and its subsidiaries and joint venture entities, and from any and all positions or capacities with respect to any employee benefit plan sponsored or maintained by any such entity, effective November 4, 2019
(the “Resignation Date”); and 
 WHEREAS, Employee and the Company mutually desire to establish and agree on the terms and
conditions of Employee’s separation from service; 
 NOW, THEREFORE, in consideration of the premises and the mutual agreements,
covenants and obligations set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, Employee and the Company hereby agree as follows: 

Section 1. Termination Date and Type. For purposes of interpreting and applying the provisions of compensation arrangements and
employee benefit plans of MII or any of its subsidiaries (including the Company) applicable to Employee and subject to Section 2 hereof, (a) Employee’s date of termination shall be the Resignation Date, (b) Employee’s
termination of employment is voluntary by Employee and not by the Company, and (c) subject to complying with the requirements of this Agreement, Employee shall be entitled to the compensation and benefits provided in this Agreement. 

Section 2. Severance Benefits and Payments. Subject to the execution of this Agreement by Employee and the lapse of the seven
(7) day revocation period referenced in Section 7 hereof (the “Revocation Period”) without revocation of this Agreement or any part hereof by Employee, Employee shall be entitled to receive the following payments
and benefits, to which Employee would not otherwise be entitled, subject to the terms and conditions set forth in this Agreement: 

(a)    in a lump-sum payment, the amount of $866,666.67 (consisting
of the Second Retention Payment and Third Retention Payment, as such terms are defined in that 

 
certain Retention Bonus letter agreement between Employee and MII, dated as of October 17, 2019) subject to normal statutory and tax withholdings (the “Severance
Payment”). The Severance Payment will be paid three (3) days after the end of the Revocation Period. 

(b)    each currently outstanding award of MII restricted stock units (“RSUs”) granted to
Employee under the 2016 McDermott International, Inc. Long Term Incentive Plan (the “MII LTIP”) which would, absent Employee’s termination of employment, remain outstanding and, to the extent applicable, continue to vest during
the period from the Resignation Date through March 1, 2022 (the “Extended Vesting Period”) shall remain in full force and effect and, to the extent applicable, shall become vested and shall be settled on the first to occur of
(i) the date such award would otherwise be settled in accordance with the terms of the MII LTIP and the applicable grant agreement if Employee’s employment had continued during the Extended Vesting Period and (ii) March 15, 2020.
Any and all other outstanding unvested equity- or performance-based awards previously granted to Employee by the Company shall be forfeited as of the Resignation Date; 

(c)    Employee’s unvested benefits under the McDermott International, Inc. Director and Executive
Deferred Compensation Plan (the “EDCP”) shall be fully vested as of the Resignation Date and such amounts shall be paid in accordance with the terms of the EDCP; 

(d)    a lump-sum payment in an amount equal to the cost of funding
six (6) months of continuing medical insurance coverage under the U.S. Consolidated Omnibus Reconciliation Act (“COBRA”) which amount shall be paid to Employee three days after the end of the Revocation Period; and 

(e)    accrued but unutilized vacation pay. 

To the extent necessary to give effect to the provisions of Section 2 (b) above, the applicable grant agreements shall be deemed amended by the
provisions of Section 2(b) above. All payments made pursuant to this Section 2 shall be subject to appropriate tax withholding and are subject to all the terms and conditions of this Agreement. Employee acknowledges and agrees that, except
as expressly set forth in Section 2 hereof, Employee is not entitled to receive any additional compensation, bonus, equity compensation, payment in lieu of any paid time off, equity awards, severance payments or other payments or benefits of
any kind from the Company or its parents, subsidiaries or its affiliates or with respect to Employee’s employment with the Company or any of its parents, subsidiaries and affiliates. 

Section 3. Release of Claims. 

(a)    General Release by Employee. In consideration of the foregoing (including the payments and
benefits under Section 2 (a-d) hereof, which the Company is not required to make or provide under any preexisting agreement, plan or policy), which Employee hereby expressly acknowledges as good and
sufficient consideration for the releases provided below, Employee hereby unconditionally and irrevocably releases, acquits and forever discharges, to the fullest extent permitted by applicable law, (i) the Company and all of its predecessors,
successors and assigns, (ii) all of the Company’s past, present and 

  
 - 2 - 

 
future affiliates, parent corporations (including MII), subsidiaries, divisions and joint venture entities and all of their respective predecessors, successors and assigns and (iii) all of
the past, present and future officers, directors, managers, shareholders, investors, employee benefit plan administrators, employees, agents, attorneys and other representatives of each of the entities described in the immediately preceding clauses
(i) and (ii), individually and in their respective representative capacities (the persons or entities referred to in the immediately preceding clauses (i), (ii) and (iii) being, individually, a “Releasee” and,
collectively, the “Releasees”), from any and every action, cause of action, complaint, claim, demand, administrative charge, legal right, compensation, obligation, damages (including consequential, exemplary and punitive damages),
liability, cost or expense (including attorney’s fees) that Employee has, may have or may be entitled to from or against any of the Releasees, whether legal, equitable or administrative, in any forum or jurisdiction, whether known or unknown,
foreseen or unforeseen, matured or unmatured, accrued or not accrued, which arises directly or indirectly out of, or is based on or related in any way to Employee’s employment with or termination of employment from the Company or
Employee’s service for or other affiliation with MII or any of its subsidiaries (including the Company) or joint venture entities, including any such matter arising from the negligence, gross negligence or reckless, willful or wanton
misconduct of any of the Releasees (together, the “Released Claims”); provided, however, that this Release does not apply to, and the Released Claims do not include: (i) any claims arising solely and
specifically under the U.S. Age Discrimination in Employment Act of 1967 after the date this Agreement is executed by Employee; (ii) any claim for indemnification (including under MII’s or the Company’s organizational documents or
insurance policies) arising in connection with an action instituted by a third party against MII or the Company or any of their affiliates or Employee, in his capacity as an officer, director, manager, employee, agent or other representative of MII
or the Company or any of their affiliates; (iii) any claims for vested benefits under the Company’s 401(k) plan or vested benefits under the EDCP; (iv) any claims relating to Employee’s eligibility to continue participating in
health coverage currently available to Employee in accordance with COBRA, subject to the terms, conditions and restrictions of that Act; (v) any claim arising from any breach or failure to perform any provision of this Agreement; or
(vi) any claim for worker’s compensation benefits or any other claim that cannot be waived by a general release. 

(b)    Release to be Full and Complete; Waiver of Claims, Rights and Benefits. The parties intend
this Release to cover any and all such Released Claims, whether they are contract claims, equitable claims, fraud claims, tort claims, discrimination claims, harassment claims, retaliation claims, personal injury claims, constructive or wrongful
discharge claims, emotional distress claims, pain and suffering claims, public policy claims, claims for debts, claims for expense reimbursement, wage claims, claims with respect to any other form of compensation, claims for attorneys’ fees,
other claims or any combination of the foregoing, and whether they may arise under any employment contract (express or implied), policies, procedures, practices or by any acts or omissions of any of the Releasees or whether they may arise under any
state, local or federal law, statute, ordinance, rule or regulation, including all Texas employment discrimination laws, Chapter 21 of the Texas Labor Code, the Texas Payday Act, all U.S. federal discrimination laws, the U.S. Age Discrimination in
Employment Act of 1967, the U.S. Employee Retirement Income Security Act of 1974, Title VII of the U.S. Civil Rights Act of 1964, the U.S. Civil 

  
 - 3 - 

 
Rights Act of 1991, the U.S. Rehabilitation Act of 1973, the U.S. Americans with Disabilities Act of 1990, the U.S. Equal Pay Act, the U.S. National Labor Relations Act, the U.S. Older Workers
Benefit Protection Act, the U.S. Worker Adjustment and Retraining Notification Act, the U.S. Family and Medical Leave Act, the U.S. Sarbanes-Oxley Act of 2002 or common law, without exception. As such, it is expressly acknowledged and agreed that
this Release is a general release, representing a full and complete disposition and satisfaction of all of the Company’s and any Releasee’s real or alleged legal obligations to Employee, with the only exceptions being as expressly stated
in the proviso to Section 3(a) hereof. Employee understands and agrees, in compliance with any law, statute, ordinance, rule or regulation which requires a specific release of unknown claims or benefits, that this Agreement includes a release
of unknown claims, and Employee hereby expressly waives and relinquishes any and all Released Claims and any associated rights or benefits that Employee may have, including any that are unknown to Employee at the time of the execution this
Agreement. 
 (c)    Certain Representations of Employee. Employee represents and warrants that:
(i) Employee is the sole and lawful owner of all rights, titles and interests in and to all Released Claims; and (ii) Employee has the fully legal right, power, authority and capacity to execute and deliver this Agreement. 

(d)    Covenant Not to Sue. Employee expressly agrees that neither Employee nor any person acting on
Employee’s behalf will file or bring or permit to be filed or brought any lawsuit or other action before any court, agency or other governmental authority for legal or equitable relief against any of the Releasees involving any of the Released
Claims. In the event that such an action is filed against any of the Releasees, Employee agrees that such Releasees are entitled to legal and equitable remedies against Employee, including an award of attorney’s fees. Notwithstanding the
foregoing or any other provision in this Agreement to the contrary, including any provision in Sections 5, 6 or 7, the Company and Employee further agree that nothing in this Agreement (i) limits Employee’s ability to file a charge or
complaint with the EEOC, the NLRB, OSHA, the SEC or any other federal, state or local governmental agency or commission (“Government Agencies”); (ii) limits Employee’s ability to communicate with any Government Agencies or otherwise
participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information and reporting possible violations of law or regulation or other disclosures protected under the
whistleblower provisions of applicable law or regulation, without notice to the Company; or (iii) limits Employee’s right to receive an award for information provided to any Government Agencies. Should Employee file a charge or complaint
with any Government Agency, or should any governmental entity, agency or commission file a charge, action, complaint or lawsuit against any of the Releasees based on any Released Claim, Employee agrees not to seek or accept any payment from any of
the Releasees. 

  
 - 4 - 

 Section 4. Return of Materials, Nondisparagement and Cooperation Undertakings.

 (a)    Return of Materials. On or promptly after the Resignation Date, Employee shall return to
MII or the Company, with no request being required of MII or the Company (i) any and all documents, records, files, reports, memoranda, books, papers, plans, letters and any other data in Employee’s possession regardless of the medium
maintained, held or stored (whether documentary, computer or other electronic storage or other) that relate in any way to the business or operations of MII or the Company or any of their past or present affiliates, subsidiaries, divisions or joint
ventures (such entities being, individually, a “Company Entity” and, collectively, the “Company Entities”) (and Employee shall not retain, recreate or deliver to anyone else such information); and (ii) any
credit cards, keys, access cards, calling cards, computer equipment and software, telephone, facsimile or other equipment or property of any of the Company Entities. 

(b)    Nondisparagement. Employee shall refrain from making, directly or indirectly, in any public
or private communication (whether oral, written or electronic), any criticisms or negative or disparaging comments or other statements about the Company or any of the other Releasees, or about any aspect of the respective businesses, operations,
financial results or prospects of any of the Company Entities, including comments relating to Employee’s termination of employment. Notwithstanding the foregoing, it is understood and agreed that nothing in this Section 4(b) or in
Section 5 hereof is intended to: (i) prevent Employee from testifying truthfully in any legal proceeding brought by any governmental authority or other third party or interfere with any obligation Employee may have to cooperate with or
provide information to any government agency or commission, subject to compliance with the provisions of Section 5(c) hereof, if applicable; (ii) prevent Employee from advising Employee’s spouse of the terms and conditions of this
Agreement; or (iii) prevent Employee from consulting with Employee’s own legal counsel, as contemplated by Section 7 of this Agreement. 

(c)    Cooperation. Employee agrees to be reasonably available to the Company Entities or their
representatives (including their attorneys) to provide information and assistance as requested by MII or the Company. Such information and assistance may include testifying (and preparing to testify) as a witness in any proceeding or otherwise
providing information or reasonable assistance to the Company Entities in connection with any investigation, claim or suit, and cooperating with the Company Entities regarding any litigation, government investigation, regulatory matter, claim or
other disputed item involving any of the Company Entities that relate to matters within the knowledge or responsibility of Employee during Employee’s employment. Specifically, Employee agrees (i) to meet with the Company Entities’
representatives, their counsel or other designees at reasonable times and places with respect to any matter within the scope of the foregoing provisions of this Section 4(c); (ii) to provide truthful testimony regarding any such matter to any
applicable court, agency or other adjudicatory body; (iii) to provide the Company Entities with immediate notice of contact or subpoena by any non-governmental adverse party (known to Employee to be
adverse to any of the Company Entities or their 

  
 - 5 - 

 
interests), and (iv) to not voluntarily assist any such non-governmental adverse party or such
non-governmental adverse party’s representatives. Such cooperation required by Employee shall not unreasonably interfere with Employee’s other business endeavors. 

(d)    Enforcement. The covenants set forth in the foregoing provisions of this
Section 4 may be enforced pursuant to the provisions of Sections 5(e) and 5(f) hereof. 
 Section 5. Confidentiality
Agreement. 
 (a)    Definition of Trade Secrets and Confidential Business Information.
Employee acknowledges and agrees that any and all non-public information regarding the Company Entities and their customers and suppliers (including any and all information relating to the Company
Entities’ respective business plans or practices, products, services, contracts with customers, backlog, bids outstanding, target projects, financial or operational performance, finances, financial accounting policies, practices or systems,
internal controls or internal control systems, financial projections or budgets, board of directors or board committee proceedings, investor relations practices, capital expenditures, equipment, pricing strategies, marketing programs or plans,
executive management or other personnel, human resources plans, policies, practices, records or systems, information technology systems or other business systems, project management, business strategy, profits or overhead) is confidential and the
unauthorized disclosure of such confidential information could result in irreparable harm to one or more of the Company Entities. Such confidential information, in whatever form maintained, held or stored (whether documentary, computer or other
electronic storage or other), includes each Company Entity’s proprietary interest in its trade secrets, including its lists of customers and prospective customers, and other information that has recognized value and that is not generally
available through other sources (collectively, “Trade Secrets”), and information regarding each Company Entity’s various services, projects, products, procedures or systems that is treated as confidential by such Company Entity
which may not rise to the level of a Trade Secret (collectively, “Confidential Business Information”). Confidential Business Information does not include information that properly and lawfully has become generally known to the
public other than as a result of any act or omission of Employee. Collectively, Trade Secrets and Confidential Business Information (and including all the non-public information referred to in the first
sentence of this Section 5(a) and all information relating to Employee’s separation from service with the Company) are referred to herein as “Confidential Information.” 

(b)    Importance of Confidential Information. The parties hereby agree that Employee has been
provided with Confidential Information during the period of Employee’s employment. By signing this Agreement, Employee acknowledges delivery to and receipt by Employee of Confidential Information. Employee further acknowledges that the
preservation and protection of the Confidential Information was an essential part of Employee’s employment with the Company and that Employee has had a duty of fidelity and trust to the Company Entities in handling the Confidential Information.

 (c)    Nondisclosure or Misuse. Employee agrees that Employee will not disclose or take away
any of the Confidential Information, directly or indirectly, or use such 

  
 - 6 - 

 
information in any way. Without limiting the generality of the foregoing, Employee will not disclose any of the Confidential Information to any securities analysts, shareholders, prospective
investors, customers, competitors or any other third party, including any third party who has or may express an interest in acquiring any of the Company Entities or all or any significant portion of their respective outstanding equity securities or
assets. If Employee is legally required to disclose any Confidential Information, Employee shall, to the extent not prohibited by applicable law or legal process, promptly notify the Company in writing of such requirement so that the Company or any
of the other Company Entities may seek an appropriate protective order or other relief or waive compliance with the nondisclosure provisions of this Section 5 with respect to such Confidential Information. To the extent not prohibited by
applicable law, Employee agrees to cooperate with and not to oppose any effort by the Company or any other Company Entity to resist or narrow such request or to seek a protective order or other appropriate remedy. In any such case, Employee will:
(i) disclose only that portion of the Confidential Information that, according to written advice of Employee’s counsel, is required to be disclosed; (ii) use reasonable best efforts to obtain assurances that such Confidential
Information will be treated confidentially; and (iii) to the extent not prohibited by applicable law, promptly notify the Company in writing of the items of Confidential Information so disclosed. The foregoing obligations are in addition to any
confidentiality obligations Employee may have under any other agreements or arrangements with any of the Company Entities. Nothing in this Agreement prohibits Employee from reporting possible violations of law or regulation to any governmental
agency or entity (or of making any other protected disclosures). Pursuant to the Defend Trade Secrets Act of 2016, Employee is advised that an individual shall not be held criminally or civilly liable under any Federal or state trade secret law for
the disclosure of a trade secret that (i) is made (A) in confidence to a Federal, state or local government official, either directly or indirectly, or to an attorney and (B) solely for the purpose of reporting or investigating a
suspected violation of law or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Further, an individual who files a lawsuit for retaliation by an employer for reporting a
suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (x) files any document containing the trade secret under seal; and
(y) does not disclose the trade secret, except pursuant to court order. 
 (d)    Return of
Confidential Information. On or promptly after the Resignation Date, all documents or other information containing or referring to any of the Confidential Information as may be in Employee’s possession, or over which Employee may have
control, regardless of whether prepared by Employee, shall be returned by Employee to the Company in accordance with the provisions of Section 4(a) hereof. 

(e)    Enforcement of Covenants. Employee acknowledges that the injury that would be suffered by the
Company Entities as a result of a breach or threatened breach of the provisions of Section 4 hereof or this Section 5 would be immediate and irreparable and that, because of the difficulty of measuring economic loss of any such breach or
threatened breach, an award of monetary damages to the Company Entities for any such breach would be an inadequate remedy. Accordingly, in the event that the Company determines that Employee has breached or attempted to breach or is threatening to
breach 

  
 - 7 - 

 
any provision of Section 4 hereof or this Section 5, in addition to any other remedies at law or in equity that any of the Company Entities may have available to them, it is agreed that
each of the Company Entities shall be entitled, upon application to any court of proper jurisdiction, to temporary or permanent restraining orders or injunctions against Employee prohibiting such breach or attempted or threatened breach, without the
necessity of: (i) proving immediate or irreparable harm; (ii) establishing that monetary damages are inadequate or that the Company Entities do not have an adequate remedy at law; or (iii) posting any bond with respect thereto. 

(f)    Repayment and Forfeiture. Employee agrees that in the event that (i) Employee breaches
any term of Sections 3 or 4 hereof or this Section 5, or (ii) Employee challenges the validity of all or any part of this Section 5, and all or any part of this Section 5 is found invalid or unenforceable for any reason
whatsoever by a court of competent jurisdiction or an arbitrator in a proceeding between Employee and a Company Entity, in addition to any other remedies at law or in equity the Company may have available to it, the Company shall not be obligated to
make any of the payments and may cease to make such payments or to provide for any of the benefits specified in Section 2 hereof, and shall be entitled to recoup from Employee any and all of the value of the payments and benefits provided
pursuant to Section 2 hereof that have vested or been paid pursuant to that Section. 
 Section 6. Entire Agreement; Amendment;
Third-Party Beneficiaries. Employee and the Company agree and acknowledge that this Agreement contains and comprises the entire agreement and understanding between the parties with respect to the subject matter hereof, that no other
representation, promise, covenant or agreement of any kind whatsoever has been made to cause either party hereto to execute this Agreement, that all agreements and understandings between the parties with respect to the subject matter hereof are
embodied and expressed in this Agreement and that this Agreement supersedes all prior agreements, negotiations, discussions, understandings and commitments, written or oral, between the parties hereto with respect to such subject matter. The
parties also agree that the terms of this Agreement shall not be amended or changed except in writing and signed by Employee and a duly authorized agent of the Company. The parties to this Agreement further agree that this Agreement shall be binding
on and inure to the benefit of Employee and the Company and the Company’s successors and assigns. Except to the extent otherwise provided in this Agreement with respect to the Company Entities and the Releasees (each such Company Entity and
each such Releasee hereby being expressly made a third-party beneficiary of this Agreement), the provisions of this Agreement shall not confer upon any third party any remedy, claim, liability, reimbursement
or other right in excess of those existing without reference to this Agreement. 
 Section 7. Timing and Consultation with
Counsel. Employee acknowledges that Employee has been given a reasonable period of time, not less than twenty-one (21) days, within which to consider this Agreement and has been advised to discuss the
terms of this Agreement with legal counsel of Employee’s own choosing. Employee acknowledges that this Agreement was offered to Employee on November 4, 2019, and Employee was advised that if accepted (i) it must be executed on or
prior to November 25, 2019, and (ii) the Agreement could be revoked, in writing, for up to seven (7) days following the date of such acceptance. Any such revocation must be in writing and delivered to the Company addressed to its
Senior Vice President and Chief Human Resources Officer at 757 N. Eldridge Parkway, Houston, Texas 77079 or via email (email 

  
 - 8 - 

 
address: SAllen@mcdermott.com). If Employee revokes this Agreement, Employee’s resignation shall nevertheless remain effective and Employee will not be entitled to any of the payments or
benefits set forth in Section 2 (a-d) hereof. Employee represents that Employee has relied on Employee’s own knowledge and judgment and on the advice of independent legal counsel of Employee’s
choosing and has consulted with such other independent advisors as Employee and Employee’s counsel deemed appropriate in connection with Employee’s review of this Agreement and Employee’s rights with respect to Employee’s
separation from service from the Company and other Company Entities and with respect to this Agreement. Based on Employee’s review, Employee acknowledges that Employee fully and completely understands and accepts all the terms of this
Agreement, including the Release in Section 3 hereof, and their legal effects, and Employee is entering into this Agreement voluntarily and of Employee’s own free will, with full consideration of any and all rights which Employee may
currently have. Employee further acknowledges that Employee is not relying on any representations or statements made by the Company or any other Company Entity, or by any of their respective officers, directors, employees, affiliates, agents,
attorneys or other representatives, regarding this Agreement, except to the extent such representations are expressly set forth in this Agreement. Employee also acknowledges that Employee is not relying upon a legal duty, if one exists, on the part
of the Company or any other Company Entity, or any of their respective officers, directors, employees, subsidiaries, affiliates, agents, attorneys or other representatives, to disclose any information in connection with the execution of this
Agreement or its preparation, it being expressly understood that Employee shall never assert any failure to disclose information on the part of any such person or entity as a ground for challenging this Agreement or any provision hereof. 

Section 8. Applicable Law; Venue. This Agreement shall be interpreted and construed in accordance with the substantive laws of the
State of Texas, without giving effect to any conflicts of laws provisions thereof that would result in the application of the laws of any other jurisdiction. THE EXCLUSIVE VENUE FOR THE RESOLUTION OF ANY DISPUTE RELATING TO THIS AGREEMENT OR
EMPLOYEE’S EMPLOYMENT (EXCEPT FOR ANY DISPUTE THAT MAY BE SUBJECTED TO ARBITRATION BY MUTUAL AGREEMENT OF THE PARTIES HERETO AFTER THE DATE HEREOF) SHALL BE IN THE STATE AND FEDERAL COURTS LOCATED IN HARRIS COUNTY, TEXAS AND THE PARTIES HEREBY
EXPRESSLY CONSENT TO THE JURISDICTION OF THOSE COURTS. 
 Section 9. Section 409A; Other Tax Matters. This
Agreement is intended to provide payments that are exempt from or compliant with the provisions of Section 409A of the U.S. Internal Revenue Code of 1986 (the “Code”) and related regulations and Treasury pronouncements
(“Section 409A”), and the Agreement shall be interpreted accordingly. Notwithstanding any provisions of an RSU to the contrary, no RSU shall be settled by reason of a change in control of McDermott International,
Inc. or disability of Employee unless such event is a change in control or disability, as applicable, within the meaning of Section 409A. Notwithstanding anything herein to the contrary, if on the date of Employee’s separation from
service Employee is a “specified employee,” as defined in Section 409A, then all or a portion of any severance payments, or benefits under this Agreement that would be subject to the additional tax provided by
Section 409A(a)(1)(B) of the Code if not delayed as required by Section 409A(a)(2)(B)(i) of the Code shall be delayed until the first day of the seventh month following Employee’s separation from service date (or, if earlier,
Employee’s date of death) and shall be paid as a lump sum (without interest) on such date. For purposes of this Agreement, a termination of 

  
 - 9 - 

 
Employee’s employment must be a “separation from service” for purposes of Section 409A. Employee acknowledges and agrees that Employee has obtained no advice from the Company
or any of the other Company Entities, or any of their respective officers, directors, employees, subsidiaries, affiliates, agents, attorneys or other representatives, and that none of such persons or entities have made any representation regarding
the tax consequences, if any, of Employee’s receipt of the payments, benefits and other consideration provided for in this Agreement. Employee further acknowledges and agrees that Employee is personally responsible for the payment of all
federal, state and local taxes that are due, or may be due, for any payments and other consideration received by Employee under this Agreement. Employee agrees to indemnify the Company and hold the Company harmless for any and all taxes, penalties
or other assessments that Employee is, or may become, obligated to pay on account of any payments made and other consideration provided to Employee under this Agreement (including, without limitation, any amounts relating to or imposed by the
operation of Section 409A of the Code). 
 Section 10. Miscellaneous Provisions. 

(a)    Waivers. Any term or provision of this Agreement may be waived, or the time for its performance may be
extended, by the party hereto entitled to the benefit thereof. Any such waiver shall be validly and sufficiently given for the purposes of this Agreement if, as to either party hereto, it is in writing signed by such party or an authorized
representative thereof. Failure on the part of the Company or Employee at any time to insist on strict compliance by the other party with any provisions of this Agreement shall not constitute a waiver of the obligations of either party hereto in
respect thereof, or of either such party’s right hereunder to require strict compliance therewith in the future. No waiver of any breach of this Agreement shall be deemed to constitute a waiver of any other or subsequent breach. 

(b)    Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable under
applicable law, that provision shall be severable and this Agreement shall be construed and enforced as if that illegal, invalid or unenforceable provision never comprised a part hereof, and the remaining provisions hereof shall remain in full force
and effect and shall not be affected by the illegal, invalid or unenforceable provision, and there shall be added automatically as part of this Agreement a provision as similar in its terms to such illegal, invalid or unenforceable provision as may
be possible and be legal, valid and enforceable. 
 (c)    Further Assurances. Employee shall, on request by
the Company from time to time after the date hereof, execute, acknowledge and deliver to the Company such other documents and instruments as the Company may require to give effect to the provisions of this Agreement, including a confirmatory release
of the Released Claims as of the Resignation Date. 
 (d)    Section Headings. Titles and headings to Sections
and subsections hereof are for the purpose of reference only and shall in no way limit, define or otherwise affect the provisions hereof. 

(e)    Construction; Timing of Payments. In this Agreement, unless the context clearly indicates otherwise:
(i) words used in the singular include the plural and words used in the plural include the singular; (ii) reference to any gender includes the other gender and the neuter; (iii) the words “include,” “includes” and
“including” shall be deemed to be followed by the words “without 

  
 - 10 - 

 
limitation”; (iv) the words “shall” and “will” are used interchangeably and have the same meaning; (v) the word “or” shall have the inclusive meaning
represented by the phrase “and/or”; (vi) the words “this Agreement,” “herein,” “hereunder,” “hereof,” “hereto” and words of similar import shall be deemed references to this Agreement
as a whole and not to any particular Section or other provision of this Agreement; (vii) reference to any law (including statutes and ordinances) means such law (including all rules and regulations promulgated thereunder) as amended, modified,
codified or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability; (viii) relative to the determination of any period of time, “from” means “from and including” and
“through” means “through and including”; and (ix) all references to dollar amounts herein shall be in respect of lawful currency of the United States. The language this Agreement uses shall be deemed to be the language that
the parties hereto have chosen to express their mutual intent, and no rule of strict construction shall be applied against either party hereto. If the payment date for, or the last day of any period during which, any payment is to be made by the
Company hereunder falls on a day that is a Saturday or a Sunday or any public or legal holiday, whether federal or state, in Houston, Texas, then the Company will have until the close of business on the next succeeding day that is not a Saturday, a
Sunday or such a holiday to make such payment. 
 (f)    Execution in Counterparts. This Agreement may be
executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. 

[Signature page follows] 

  
 - 11 - 

 I HAVE READ THE FOREGOING SEPARATION AGREEMENT, I FULLY UNDERSTAND ITS TERMS AND THAT I MAY BE WAIVING
SIGNIFICANT LEGAL RIGHTS BY EXECUTING IT, AND I HAVE VOLUNTARILY EXECUTED IT ON THE DATE WRITTEN BELOW, SIGNIFYING THEREBY MY ASSENT TO, AND WILLINGNESS TO BE BOUND BY, ITS TERMS: 

 

							
	Date: November 6, 2019	 		 		 	 /s/ Stuart Spence

		 		 		 	STUART SPENCE

 Before me, a Notary Public in and for Harris County, Texas, personally appeared the above-named
Mr. Spence, who acknowledged that he executed the foregoing instrument for the purposes and consideration therein expressed, and acknowledged the same to be his free act and deed. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal, in the County of Harris and State of Texas, this 6th day of November,
2019. 
  

			
	 /s/ Constance M. Baumgarn

	 NOTARY PUBLIC

	
	 McDERMOTT, INC.

		
	By:	 	 /s/ Stephen L. Allen

	Name:	 	 Stephen L. Allen

	Title:	 	 SVP, Chief HR Officer

 Before me, a Notary Public in and for Harris County, Texas, personally appeared the above-named officer
of McDermott, Inc., who acknowledged that he executed the foregoing instrument for and on behalf of McDermott, Inc., a Delaware corporation, and for the purposes and consideration therein expressed, and acknowledged the same to be his free act and
deed and the free act and deed of said corporation. 
 IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal, in the County of
Harris and State of Texas, this 6th day of November, 2019. 
  

	
	 /s/ Angela R. Smith

	NOTARY PUBLIC

  
 - 12 - 

 EXHIBIT A 

Notice of Resignation 
 To the Board of
Directors of McDermott International, Inc. 
 Effective November 4, 2019, the undersigned, Stuart Spence, resigns from all positions held as an officer
of McDermott International, Inc., a Panamanian corporation (“McDermott”), and from all positions held as an officer, employee, member of the board of directors or board of managers (and member of any and all committees thereof) of any of
McDermott’s subsidiaries (whether corporations, limited liability companies, limited partnerships or other forms of entity) and joint venture entities, and from any and all positions or capacities with respect to any employee benefit plan
sponsored or maintained by any such entity, including but not limited to those as reflected on the attachment hereto. This resignation is not subject to any condition to effectiveness (including, but not limited to, acceptance by the Board of
Directors of McDermott) and is irrevocable. 
  

					
	Dated: November 4, 2019	 		 	
			
		 		 	 /s/ Stuart Spence

		 		 	Stuart Spence

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