Document:

exv10w49

 

Exhibit 10.49

February 19, 2004

Mr. Dalton Thomas

Vice President, Operations Support

1333 West Loop South, Suite 1700

Houston, Texas 77027

Dear Mr. Thomas,

     Cooper Cameron Corporation (the “Company”) considers the establishment and maintenance of a
sound and vital management to be essential for the protection and enhancement of the best interests
of the Company and its shareholders. The Company recognizes that, as is the case with many
publicly-held corporations, the possibility of a Change of Control1 may arise and that
such possibility, and the uncertainty and questions which it may raise among management, may result
in the departure or distraction of management personnel to the detriment of the Company and its
shareholders. Accordingly, the Board of Directors of the Company (the “Board”) has determined that
appropriate steps should be taken to assure the Company of the continuation of your service and to
reinforce and encourage the attention and dedication of members of the Company’s management to
their assigned duties without distraction in circumstances arising from the possibility of a Change
of Control. In particular the Board believes it important, should the Company or its shareholders
receive a proposal for or notice of a Change of Control, or consider one itself, that you be able
to assess and advise the Company whether such transaction would be or is in the best interests of
the Company and its shareholders, and to take such other action regarding such transaction as the
Board might determine to be appropriate without being influenced by the uncertainties of your own
situation.

     In order to induce you to remain in the employ of the Company, this letter agreement (the
“Agreement”), prepared pursuant to authority granted by the Board, sets forth the compensation and
severance benefits which the Company agrees will be provided to you should your employment with the
Company be terminated in connection with a Change of Control under the circumstances described
below, as well as certain other benefits which will be made available to you should you be employed
by the Company on the Effective Date of a Change of Control.

	 
	

	1	Reference is made to Annex I hereto for
definitions of certain terms used in this Agreement, and such definitions are
incorporated herein by such reference with the same effect as if set forth
herein. Certain capitalized terms used in this Agreement in connection with
the description of various Plans are defined in the respective Plans, but if
any conflicts with a definition herein contained, the latter shall prevail.

 

 

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     This Agreement shall remain in full force and effect for as long as you remain in your current
position with the Company or any other position of equal or higher grade which has historically
made its holder eligible for a Change of Control Agreement; provided, however, that this Agreement
shall terminate and cease to be in full force and effect upon your giving notice of your intent to
terminate your employment with the Company for any reason other than Good Reason, whether by
retirement, early retirement, or otherwise. This Agreement supersedes any prior Agreement between
you and the Company regarding the subject matter hereof.

          1. Termination in Connection with a Change of Control.

               (a) If there is a termination of your employment with the Company either by the Company
without Cause or by you for Good Reason during the period between the Effective Date of a Change of
Control and 2 years following the occurrence of the Change of Control (the “Effective Period”), and
if such Effective Date occurs during the life of this Agreement, you shall be entitled to the
following benefits, whether or not this Agreement has been cancelled prior to the time of your
termination:

               (i) all benefits conferred upon you by the Severance Package, and

               (ii) in addition, all benefits payable under the provisions either of the Company’s employee
and executive Plans in which you are a participant immediately prior to the Effective Date, or of
those plans in existence at the time of your Termination Date, whichever are more favorable to you,
in accordance with the terms and conditions of such Plans or plans, such benefits to be paid under
such Plans or plans and not under this Agreement.

               (b) Notwithstanding the above, you shall not be entitled to any such benefits if your
termination results from your death or disability, unless your death or disability occurs
(i) during the Effective Period and (ii), with respect to the benefits conferred by the Severance
Package only, after either it has been decided that you will be terminated without Cause during the
Effective Period, or you have given notice of termination for Good Reason during the Effective
Period.

               (c) You shall not be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment, nor shall the amount of any payment provided for in this
Agreement be reduced by any compensation earned by you as the result of employment by another
employer after any Termination Date.

          2. Procedures for Termination.

               (a) If it is intended that your employment be terminated by you for Good Reason you shall
transmit to the Company written notice setting forth the particulars upon which you base your
determination that Good Reason exists and, only if the stated basis therefore is capable of being
cured, requesting a cure within 10 days. Failing such a cure, a “final separation” shall then
occur, and if such stated basis is not capable of cure by the Company, “final

 

 

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separation” shall occur co-extensive with delivery of the notice. For purposes of this
Agreement, a “Termination Date” shall be deemed to have occurred upon the date of such “final
separation”.

          (b) If it is intended that your employment be terminated by the Company without Cause, a
“Termination Date” shall be deemed to have occurred upon the 30th day following the date
of receipt of any notice so stating, or upon the date specified in the notice, whichever is later.
If it is intended that your employment be terminated by the Company for Cause, if you contest such
termination pursuant to any proceeding initiated pursuant to Section 6 hereof within 15 days of
receipt of such notice, and it is ultimately determined that cause did not exist, then (anything
else in the Agreement to the contrary notwithstanding) a “Termination Date” shall be deemed to have
occurred upon the final resolution of such proceeding.

     3. LTIP Benefit Acceleration. Immediately upon an applicable Termination Date, all
contingent compensation rights issued to you under the LTIP Plan, which are then (i) held by you, a
member of your Immediate Family, or a partnership or limited liability company whose partners or
shareholders are you and members of your Immediate Family, and (ii) outstanding, shall become
vested, exercisable, distributable and unrestricted (any contrary provision in the LTIP Plan
notwithstanding) whether or not you continue to be employed by the Company. You shall have the
right immediately upon any written request by you to the Company, to (i) exercise all or any
portion of all your options covered (including, at your sole election, any associated Tandem SAR)
by the LTIP Plan and to have the underlying Shares issued to you, (ii) have issued to you on a
non-forfeitable basis any or all Shares covered by Restricted Stock Awards held by you under the
LTIP Plan, (iii) have issued to you any or all Performance Shares and/or Performance Units held by
you in the LTIP Plan, (iv) exercise all or any portion of any LTIP Plan Freestanding SAR held by
you, and (v) obtain the full benefit of any other contingent compensation rights to which you may
be entitled under the LTIP Plan, in each case as though all applicable Performance Targets had been
met or achieved at maximum levels for all Performance Periods (including those extending beyond the
Effective Date) and any and all other LTIP Plan contingencies had been satisfied in full at the
date of the Change of Control and the maximum possible benefits thereunder had been earned at the
date of the Change of Control.

     4. Conditional Share Purchase Obligation.

          (a) If a Change of Control occurs as a consequence of a tender offer or exchange offer (the
“Tender Offer”), the Company shall, if requested by you, purchase from you (whether a Termination
Date has occurred following the Change of Control) for cash on any business day selected by you
upon not less than ten days’ notice to the Company, which day shall not be less than ten days
following consummation of the Tender Offer nor more than three years after the Effective Date, up
to that number of Shares which shall be equal to the product of (x) the number of Shares acquired
by you upon exercise or distribution of any benefit under the Bonus Plan or LTIP Plan prior to
consummation of the Tender Offer, multiplied by (y) the decimal equivalent of (I) the number of
Shares accepted for purchase or exchange in the Tender Offer, divided by (II) the number of Shares
timely and validly tendered pursuant to the Tender Offer. In the event the above obligation to
purchase Shares occurs by reason of a cash tender offer or a combination cash tender offer and
exchange offer, the cash price per share to be paid to you hereunder shall be equal to the highest
price paid in cash pursuant to the Tender Offer. In the

 

 

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event such obligation occurs by reason of an exchange offer, the cash price per share to be paid to
you hereunder shall be equal to the closing price, if traded on a stock exchange, or the average
bid and asked prices, if traded in the over-the-counter market, of the security of the person so
exchanged for the Shares (the “Exchange Security”) on the first day on which the Exchange Security
could have been sold by you on such exchange or in the over-the-counter market, as the case may be,
in a regular broker’s transaction had your Shares been tendered and accepted, multiplied by the
number of Exchange Securities (or fraction thereof) issued in the Tender Offer for each Company
Share; and

          (b) If a Change of Control occurs pursuant to a Tender Offer and (i) a merger, consolidation,
reorganization, sale, spin-off, or purchase of assets under which all remaining outstanding Shares
will be converted into or become exchangeable for cash, or for securities (“Merger Security”)
issued or to be issued by the Person who made the Tender Offer (or a subsidiary or affiliate of
such Person) is thereafter proposed to the Company or its shareholders, and (ii) such merger,
consolidation, reorganization or purchase of assets occurs less than three years after the
Effective Date, and (iii) the amounts of cash into which each Share would be converted if the
transaction is effected wholly for cash, or the Merger Security Value (as defined below) if such
transaction is effected wholly for Merger Securities, or the sum of the cash and the Merger
Security Value if the Transaction is effected partly for cash and partly for Merger Securities, as
the case may be, is less than 95% of the per share price that would have been paid by the Company
for such portion of your Shares had you exercised your option to require the Company to purchase
such Shares under Section 4(a) above, the Company shall pay you (whether or not a Termination Date
has occurred following a Change of Control), an amount in cash equal to the difference between the
aggregate price you would have received from the number of Shares the Company would have been
required to purchase from you had you exercised such option under Section 4(a) and the amount of
cash and/or the Merger Security Value received for the same number of Shares in such merger,
consolidation, reorganization or purchase of assets. Such cash payment shall be made to you on a
business day selected by you upon no less than ten-calendar days’ notice to the Company or its
Successor (as hereinafter defined). For purposes of this Section 4(b), “Merger Security Value”
shall mean the closing price, if traded on a stock exchange, or the average bid and asked prices if
traded in the over-the-counter market, of the Merger Security on the first day on which the Merger
Security could have been sold by you on such exchange or in the over-the-counter market, as the
case may be, in a regular broker’s transaction, multiplied by the number of Merger Securities (or
fraction thereof) for which each Share was exchangeable or into which each Share was convertible.
If no public market develops for the Merger Security within 30 days from the date of its issue,
however, “Merger Security Value” shall mean the fair market value of such Merger Security (on a per
unit basis in the written opinion of a nationally recognized investment banking firm acceptable to
you) on the effective date of the merger, consolidation, reorganization or purchase of assets, as
the case may be, multiplied by the number of Merger Securities (or fraction thereof) for which each
Share was exchangeable or into which each Share was convertible.

 

 

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     5. Excise Tax.

          (a) Any other provision of this Agreement to the contrary notwithstanding, if any payment in
the nature of compensation to be paid or provided to you under this Agreement or otherwise is
considered to be a “parachute payment” within the meaning of Section 280G(b) of the Code, the
Company shall pay to you an additional amount (hereinafter referred to as the “Excise Tax
Premium”). The Excise Tax Premium shall be equal to the excise tax determined under Code Section
4999 attributable to the total amount of payments received by you. The Excise Tax Premium shall
also include any amount attributable to excise tax on the Excise Tax Premium. The Company shall
also pay to you an additional amount (the “Additional Amount”) such that the net amount received by
you, after paying any applicable Excise Tax Premium and any federal or state income, excise or
other tax on such additional amount, shall be equal to the amount that you would have received if
such Excise Tax Premium were not applicable. You shall be deemed to pay income taxes at all
relevant times at the highest marginal rate of income taxation in effect in your taxing
jurisdiction. The Additional Amount shall include any amount attributable to income, excise or
other tax on the Additional Amount.

          (b) Not later than 30 days following any payment in the nature of compensation described
herein, the independent public accountants acting as auditors for the Company on the date of the
transaction constituting the change of control within the meaning of Code Section 280G (or another
accounting firm designated by you) shall determine whether the sum of the present value of any
“parachute payments” payable under this Agreement or otherwise and the present value of any other
“parachute payments” received by you upon or after any such change of control is in excess of the
amount you can receive without causing you to be subject to an excise tax with respect to such
amount on account of Code Section 4999, and shall determine the amount of any Excise Tax Premium
and Additional Amount payable to you. The Excise Tax Premium and Additional Amount shall be paid
to you as soon as practicable but in no event later than the time when the tax payment is due,
including by way of withholding, and shall be net of any amounts required to be withheld for taxes.

          (c) For purposes of this Section, “present value” means the value determined in accordance
with the principles of Section 1274 (b) (2) of the Code under the rules provided in Treasury
Regulations under Section 280G of the Code.

          (d) To the extent Code Section 280G is amended prior to the termination of this Agreement, or
is replaced by a successor statute, the provisions of this Section 5 shall be deemed modified
without further action of the parties in a manner consistent with such amendments or successor
statutes, as the case may be. In the event that Code Section 280G or any successor statute is
repealed, this Section 5 shall cease to be effective on the effective date of such repeal. The
parties recognize that Treasury Regulations under Code Sections 280G and 4999 may affect the amount
that may be paid hereunder and agree that, upon the issuance of any such regulations, this
Agreement may be modified as in good faith may be deemed necessary in light of the provisions of
such regulations to achieve the purposes hereof, and that consent to such modifications shall not
be unreasonably withheld.

 

 

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     6. Dispute Resolution.

          (a) This Agreement shall be governed in all respects, including as to validity, interpretation
and effect, by the internal laws of the State of Texas without regard to choice of law principles.

          (b) It is irrevocably agreed that if any dispute arises between us under this Agreement: (i)
exclusive jurisdiction shall be in the lowest Texas state court of general jurisdiction sitting in
Harris County, Texas, (ii) we are each at the time present in Texas for the purpose of conferring
personal jurisdiction; (iii) any such action may be brought in such court, and any objection that
the Company or you may now or hereafter have to the venue of such action or proceeding in any such
court or that such action or proceeding was brought in an inconvenient court is waived, and we each
agree not to plead or claim the same, (iv) service of process in any such proceeding or action may
be effected by mailing a copy thereof by registered or certified mail, return receipt requested (or
any substantially similar form of mail), postage prepaid, to such party at the address provided in
Section 11 hereof, and (v) prior to any trial on the merits, we will submit to court supervised,
non-binding mediation.

          (c) Notwithstanding any contrary provision of Texas law, the Company shall have the burden of
proof with respect to any of the following: (i) that Cause existed at the time any notice was given
to you under Section 2 (ii) that Good Reason did not exist at the time notice was given to the
Company under Section 2; and (iii) that a Change of Control has not occurred.

     7. Successors; Binding Agreement.

          (a) In the event any Successor (as defined below) does not assume this Agreement by operation
of law the Company will seek to have any Successor, by agreement in form and substance satisfactory
to you, expressly assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it. If there has been a Change of Control
prior to, or a Change of Control will result from, any such succession, then failure of the Company
to obtain at your request such agreement prior to or upon the effectiveness of any such succession
(unless assumption occurs as a matter of law) shall constitute Good Reason for termination by you
of your employment and, upon delivery of a notice of termination by you to the Company, you shall
be entitled to the benefits provided for herein. “Successor” shall mean any Person that succeeds
to, or has the ability to control, the Company’s business as a whole, directly by merger,
consolidation, spin-off or similar transaction, or indirectly by purchase of the Company’s Voting
Securities or acquisition of all or substantially all of the assets of the Company.

          (b) This Agreement shall inure to the benefit of and be enforceable by your personal and legal
representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

 

 

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     8. Fees and Expenses. The Company shall pay all legal fees and expenses incurred by
you as a result of your seeking to interpret, obtain, assert or enforce any right or benefit
conferred upon you by this Agreement to the extent you are the prevailing party.

     9. Notices. Any and all notices required or permitted to be given hereunder shall be
in writing and shall be deemed to have been given when delivered in person to the persons specified
below or deposited in the United States mail, certified or registered mail, postage prepaid and
addressed as follows:

	 	 	 
	If to the Company:

	 	Cooper Cameron Corporation
	

	 	1333 West Loop South, Suite 1700
	

	 	Houston, Texas 77027
	

	 	Attention: Chief Executive Officer
	

	 	 
	If to you:

	 	Dalton Thomas
	

	 	99 Lake Estates Drive
	

	 	Montgomery, Texas 77356

     Either party may change, by the giving of notice in accordance with this Section 10, the
address to which notices are thereafter to be sent.

     10. Validity. The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this Agreement, which
shall remain in full force and effect.

     11. Survival. All obligations undertaken and benefits conferred pursuant to this
Agreement, shall survive any termination of your employment and continue until performed in full.

     12. Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such modification, waiver or discharge is agreed to in writing signed by you and
the Company. No waiver by either party hereto at any time of any breach by the other party hereto
of, or of compliance with, any condition or provision of this Agreement to be performed by such
other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or
implied, with respect to the subject matter hereof have been made by either party which are not
expressly set forth in this Agreement. The internal laws of the State of Texas shall govern the
validity, interpretation, construction and performance of this Agreement.

     13. Duplicate Originals. This Agreement has been executed in duplicate originals,
with one to be held by each of the parties hereto.

     If this letter correctly sets forth our understanding with respect to the subject matter
hereof, please sign and return one copy of this letter to the Company.

 

 

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	 	 	 	Sincerely,	 	 
	

	 	 
	 	 
	 	 
	 
	 	 	 	COOPER CAMERON CORPORATION
	

	 	 	 	 	 	 
	

	 	 	 	BY: /s/ Sheldon R. Erikson	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Sheldon R. Erikson	 	 
	

	 	 	 	Chairman, President and	 	 
	

	 	 	 	Chief Executive Officer	 	 
	Agreed to as of the 19th
	 	 	 	 	 	 
	day of February, 2004
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Dalton Thomas
	 	 	 	 	 	 
	

	 	 
	 	 
	 	 
	Dalton Thomas
	 	 	 	 	 	 

 

 

Annex I to Agreement dated February 19, 2004

between

Cooper Cameron Corporation

and

Dalton Thomas

Definition of

Certain Terms

     “Agreement” means the letter agreement between Dalton Thomas and the Company dated February
19, 2004.

     “Bonus Plan” means for each year, the Company’s Management Incentive Compensation Plan or any
other Plan adopted by the Board which provides for the payment of additional compensation on an
annual basis to senior executive officers contingent upon the Company’s results of operations for
that specific year, in either case as such Plan shall be amended or modified to, but not on or
after, any Effective Date.

     “Bylaws” means the bylaws of the Company as in effect at the date hereof and as the same shall
be amended or otherwise modified to, but not on or after, any Effective Date.

     “Cause” means (i) your conviction by a court of competent jurisdiction, from which conviction
no further appeal can be taken, of a felony-grade crime involving moral turpitude, or (ii) your
willful failure to perform substantially your duties with the Company (other than a failure due to
physical or mental illness) which is materially and demonstrably injurious to the Company. No act
or failure to act on your part shall be considered “willful” unless done, or omitted to be done, by
you in bad faith and without reasonable belief that your action or omission was in, or not opposed
to, the best interests of the Company.

     “Change of Control” means the earliest date at which:

     (i) any Person is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the
combined voting power of the Company’s outstanding Voting Securities, other than through the
purchase of Voting Securities directly from the Company through a private placement; or

     (ii) individuals who constitute the Board on the date hereof (the “Incumbent Board”) cease for
any reason to constitute at least a majority thereof, provided that any person becoming a director
subsequent to the date hereof whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least two-thirds of the directors comprising the
Incumbent Board shall from and after such election be deemed to be a member of the Incumbent Board;
or

     (iii) the Company is merged or consolidated with another corporation or entity and as a result
of such merger or consolidation less than 60% of the outstanding Voting Securities of the

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surviving or resulting corporation or entity shall then be owned by persons or entities not
stockholders of the Company immediately prior to the merger or consolidation (in the event a
stockholder owns shares of stock or other ownership interests in the corporation or entity with
which the Company is merged or consolidated, such stockholder shall be considered not a stockholder
of the Company immediately before the merger or consolidation with respect to its ownership
interest in such other corporation or other entity); or

     (iv) a tender offer or exchange offer is made and consummated by a Person other than the
Company for the ownership of 20% or more of the Voting Securities of the Company then outstanding;
or

     (v) all or substantially all of the assets of the Company are sold or transferred to a Person
as to which (A) the Incumbent Board does not have authority (whether by law or contract) to
directly control the use or further disposition of such assets and (B) the financial results of the
Company and such Person are not consolidated for financial reporting purposes.

     Anything else in this definition to the contrary notwithstanding, no Change of Control shall
be deemed to have occurred by virtue of any transaction which results in you, or a group of Persons
which includes you, acquiring more than 20% of either the combined voting power of the Company’s
outstanding Voting Securities or the Voting Securities of any other corporation or entity which
acquires all or substantially all of the assets of the Company, whether by way of merger,
consolidation, sale of such assets or otherwise.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Defined Benefit Plan” means the Company’s Retirement Plan and Supplemental Excess Defined
Benefit Plan, as the same shall be amended or modified to, but not on or after, any Effective Date.

     “Defined Contribution Plan” means the Company’s Retirement Savings Plan and Supplemental
Excess Defined Contribution Plan, as the same shall be amended or modified to, but not on or after,
any Effective Date.

     “Disability” means your continuing full-time absence from your duties with the Company for 180
days or longer as a result of physical or mental incapacity.

     “Effective Date” means the earliest date upon which (i) any of the events set forth under the
definition of Change of Control shall have occurred, (ii) the receipt by the Company of a Schedule
13D stating the intention of any Person to take actions which, if accomplished, would constitute a
Change of Control, (iii) the public announcement by any Person of its intention to take any such
action, in each case without regard for any contingency or condition which has not been satisfied
on such date, (iv) the agreement by the Company to enter into a transaction which, if consummated,
would result in a Change of Control, or (v) consideration by the Board of a transaction which, if
consummated, would result in a Change of Control.

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     If, however, an Effective Date occurs but the proposed transaction to which it relates ceases
to be actively considered, the Effective Period will be deemed not to have commenced for purposes
of this Agreement. If an Effective Date occurs with respect to a proposed transaction which ceases
to be actively considered but for which active consideration is revived, the Effective Date with
respect to the Change of Control that ultimately occurs shall be that date when consideration was
revived and carried through to consummation.

     “Effective Period” means the period between the Effective Date of a Change of Control and 2
years following the occurrence of the Change of Control.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

     “Good Reason” means any of the following:

     (i) except as a result of your death or Retirement, or following the receipt by you of
a Notice of Termination for Cause or due to Disability, a change in your status, title(s) or
position(s) with the Company, including as an officer of the Company, which, in your
reasonable judgment, does not represent a promotion, with commensurate adjustment of
compensation, from your status, title(s) and position(s) immediately prior to the Effective
Date; or the assignment to you of any duties or responsibilities which, in your reasonable
judgment, are inconsistent with such status, title(s) or position(s); or the withdrawal from
you of any duties or responsibilities which in your reasonable opinion are consistent with
such status, title(s) or position(s); or any removal of you from or any failure to reappoint
or reelect you to such position(s); or

     (ii) a reduction by the Company any time after the Effective Date in your then current
base salary: or

     (iii) the failure by the Company to continue in effect any Plan in which you were
participating immediately prior to the Effective Date other than as a result of the normal
expiration or amendment of any such Plan in accordance with its terms, or the taking of any
action, or the failure to act, by the Company which would adversely affect your continued
participation in any such Plan on at least as favorable a basis to you as is the case
immediately prior to the Effective Date or which would materially reduce your benefits under
any of such Plans or deprive you of any material benefit enjoyed by you immediately prior to
the Effective Date, except as consented to by you; or

     (iv) the relocation of the principal place of your employment to a location 25 miles
further from your principal residence without your express written consent; or

     (v) the failure by the Company upon a Change of Control to obtain the assumption of
this Agreement by any Successor (other than by operation of law); or

     (vi) any refusal by the Company to continue to allow you to attend to matters or engage
in activities not directly related to the business of the Company which you

A-3

 

     attended to or were engaged in immediately prior to the Effective Date and which do not
otherwise violate your obligations hereunder; or

     (vii) any continuing material default by the Company in the performance of its
obligations under this Agreement, whether before or after a Change of Control.

     “LTIP Option” means any option granted under the LTIP Plan.

     “LTIP Plan” means the Company’s Long-Term Incentive Plan and/or its Broadbased 2000 Incentive
Plan adopted as such plan may be amended, modified, or replaced, up to, but not on or after, an
Effective Date.

     “Market Value” means, when used with respect to Shares or Voting Securities, the closing price
therefore on the New York Stock Exchange on the date for which the market value is to be
determined, or if not listed thereon, on such other exchange as shall at that time constitute the
principal exchange for trading the Shares or Voting Securities.

     “Options In Lieu Of Salary Plan” means the Company’s plan which allows certain executive
officers of the Company to receive stock options in lieu of all or any portion of their Base Salary
as the same may be amended or modified up to, but not on or after, any Effective Date, or any
successor plan which provides the same or substantially similar benefit.

     “Other Plans” means any thrift; bonus or incentive; stock option or stock accumulation;
pension; medical, disability, accident or life insurance plan, program or policy of the Company
which is intended to benefit employees of the Company that are similarly situated to you (other
than the Bonus Plan, Defined Benefit Plan, Defined Contribution Plan, LTIP Plan or Purchase Plan).

     “Person” means any individual, corporation, partnership, group, association or other “person,”
as such term is used in Sections 13(d) and 14(d) of the Exchange Act, other than the Company or any
Plans sponsored by the Company.

     “Perquisites” means individual perquisites benefits received by you immediately prior to the
Effective Date, including, but not limited to, club membership dues and certain automobile
expenses.

     “Plans” means the Bonus Plan, Defined Benefit Plan, Defined Contribution Plan, LTIP Plan,
Purchase Plan, Compensation Deferral Plan and Other Plans.

     “Purchase Plan” means the Company’s Employee Stock Purchase Plan adopted as the same shall be
amended or modified to, but not on or after, any Effective Date.

     “Retirement” means termination of your employment on the “normal retirement date” as set forth
in the Defined Benefit Plan.

     “Severance Package” means your right to receive, and the Company’s obligation to pay and/or
perform on, the following:

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     (a) on or within ten days following an applicable Termination Date, the Company shall
pay to you a lump sum, cash amount equal to the sum of (i) three times the highest annual
rate of base salary in effect during the current year or any of the three years preceding
the Termination Date and (ii) three times the greater of (A) the maximum award you would
have been eligible to receive under the Bonus Plan in respect of the current year,
regardless of any limitations otherwise applicable to the Bonus Plan (i.e., the failure to
have completed any vesting period or the current measurement period, or the failure to
achieve any performance goal applicable to all or any portion of the measurement period) or
(B) the largest award earned (whether or not paid) under the Bonus Plan in respect of any of
the three years preceding the Termination Date, or (C) 100% of your Base Pay at the
applicable Termination Date, and (iii) three times the Black-Scholes value at the time of
grant of the most valuable one-year option grant (excluding any option you received at your
election in lieu of salary or bonus award) you had received from the Company during the five
years prior to your Termination Date with any such Black-Scholes valuation performed on a
basis consistent with the methodology set forth on Exhibit A to the Agreement; and

     (b) in addition to your entitlement to the vested portion of your interest in the
Defined Contribution Plan in accordance with the terms of that plan, the Company shall pay
to you, on or within ten days following the applicable Termination Date, an amount in cash
equal to the unvested portion of the Company’s contributions to your account, which unvested
portion shall be valued as of your Termination Date at Market Value ; and

     (c) in addition to any vested retirement benefits to which you are entitled on the
Termination Date under the Defined Benefit Plan, the Company shall pay to you, on or within
ten days following an applicable Termination Date, an amount in cash equal to the product of
(i) a number equal to your years of life expectancy beyond age 65 determined in accordance
with the actuarial assumptions utilized under the Defined Benefit Plan immediately prior to
the Termination Date, times (ii) an amount equal to the difference between (A) the annual
benefit to which you would have been entitled under the “single life annuity” method of
distribution under the Defined Benefit Plan if you were fully vested thereunder (without
regard to (I) whether you shall actually have completed the period of Vesting Service
required to qualify for benefits under the Defined Benefit Plan, (II) any limitation on the
amount used in the calculation of the annual benefit thereunder, (III) any offset thereunder
for severance allowances payable thereunder, or (IV) any amendment to the Defined Benefit
Plan made in connection with a Change of Control and on or prior to the Termination Date,
which amendment adversely affects in any manner the computation of retirement benefits under
such plan) and had accumulated an additional three years of Vesting Service thereunder, and
(B) the annual benefit, if any, to which you would be entitled under the single life annuity
method of distribution under the Defined Benefit Plan as of the Termination Date; and

     (d) an amount in cash equal to three times the average annual cost incurred by the
Company during the preceding three calendar years as a result of your participation in

A-5

 

all insured and self-insured employee welfare benefit Plans and Perquisites in which you
were entitled to participate immediately prior to the Termination Date (or such fewer whole
calendar years as you have so participated).

     Anything else in this Agreement to the contrary notwithstanding, if (i) you are terminated in
connection with a Change of Control, and (ii) you are entitled to the Severance Package, and (iii)
your Termination Date precedes or occurs on the date of the closing thereof, then unless otherwise
agreed to by both parties in writing, all amounts to which you are or shall become entitled to
under this Agreement, which are calculable as of the closing date, shall be accelerated to, and
become immediately due and payable contemporaneously with such closing.

     “Shares” means shares of Common Stock, $.01 par value, of the Company at the date of this
Agreement, as the same shall be subsequently amended, modified or changed.

     “Termination Date” shall have the meaning given it by Section 2 of the Agreement.

     “Voting Securities” means, with respect to any corporation or business enterprise, those
securities, which under ordinary circumstances are entitled to vote for the election of directors
or others charged with comparable duties under applicable law.

A-6exv10w50

 

Exhibit 10.50

COOPER CAMERON CORPORATION

Restricted Stock Unit Award Agreement

This AWARD AGREEMENT (the “Agreement” ) is between the employee listed on the attached Notice
of Grant of Award (“Participant”) and Cooper Cameron Corporation (the “Company”), in connection
with the Restricted Stock Unit Award granted to Participant by the Company, effective January 1,
2005.

     1. Effective Date and Issuance of Restricted Stock. The Company hereby grants to the
Participant, on the terms and conditions set forth herein, an award of Restricted Stock Units (the
“Award”). This Restricted Stock Unit Award is a commitment to issue one share of Cooper Cameron
Common Stock for each share of Restricted Stock Units specified on the Notice of Grant of Award, at
vesting. If Participant completes, signs, and returns one copy of this Agreement to the Company in
Houston, Texas, U.S.A., this Agreement will become effective as of January 1, 2005.

     2. Terms Subject to the Plan. The Agreement is expressly subject to the terms and
provisions of either of the Company’s Broad Based 2000 Incentive Plan or its Amended and Restated
Long-Term Incentive Plan (the “Plan”), as indicated in your Notice of Grant of Award. A copy of
both Plans are available upon request from the Corporate Secretary’s office. In the event there is
a conflict between the terms of the applicable Plan and the Agreement, the terms of the applicable
Plan shall control.

     3. Vesting Requirement. The Award shall become vested in three installments as follows:
one-fourth on January 3, 2006, one-fourth on January 2, 2007, and one-half on January 2, 2008 (each
a “Vesting Date”), provided the Participant remains continuously employed by the Company or a
subsidiary from the date hereof until each such Vesting Date. If this service requirement is not
satisfied, the Award (or remaining unvested portion thereof) shall be immediately forfeited and no
shares (or no more shares) will be delivered. All Restricted Stock Units as to which the vesting
requirements of this Section 3 have been satisfied shall be payable in accordance with Section 5
hereof.

     4. Accelerated Vesting. Notwithstanding the foregoing, upon the Participant’s retirement at
age 65 or older with the Participant having at least 10 years service with the Company, or death,
this Award shall become immediately and fully vested and shall be payable in accordance with
Section 5 hereof to the extent that it has not previously been forfeited.

     5. Payment of Award. Payment of vested Restricted Stock Units shall be made within 30 days
following the satisfaction of the vesting requirement under Section 3 hereof for each respective
Vesting Date (or following accelerated vesting under Section 4 hereof). The shares of Common Stock
which the Award entitles the Participant to receive shall be paid to the Participant, after
deduction of the number of shares the value of which equals the applicable minimum statutory
withholding taxes.

     6. Restrictions on Transfer. Neither this Restricted Stock Unit Award nor any Restricted
Stock Units covered hereby may be sold, assigned, transferred, encumbered, hypothecated or pledged
by the Participant, other than to the Company as a result of forfeiture of the units as provided
herein.

     7. No Voting Rights. The Restricted Stock Units granted pursuant to this Award, whether
or not vested, will not confer any voting rights upon the Participant, unless and until the Award
is paid in shares of Common Stock.

     8. Changes in Capitalization. The Restricted Stock Units under this Award shall be subject
to the provisions of the Plan relating to adjustments to corporate capitalization.

     9. Covenant Not To Compete, Solicit or Disclose Confidential Information.

       (a) The Participant acknowledges that the Participant is in possession of and has access to
confidential information, including material relating to the business, products or services of the
Company

 

 

and that he or she will continue to have such possession and access during employment by
the Company. The Participant also acknowledges that the Company’s business, products and services are
highly specialized and that it is essential that they be protected, and, accordingly, the
Participant agrees that as partial consideration for the Award granted herein that should the
Participant engage in any “Detrimental Activity,” as defined below, at any time during his or her
employment or during a period of one year following his or her termination the Company shall be
entitled to: (i) recover from the Participant the value of any portion of the Award that has been
paid; (ii) seek injunctive relief against the Participant; (iii) recover all damages, court costs,
and attorneys’ fees incurred by the Company in enforcing the provisions of this Award, and (iv)
set-off any such sums to which the Company is entitled hereunder against any sum which may be owed
the Participant by the Company.

       (b) “Detrimental Activity” for the purposes hereof, other than with respect to involuntary
termination without cause, termination in connection with or as a result of a “Change of Control”
(as defined in the Plan), or termination following a reduction in job responsibilities, shall
include: (i) rendering of services for any person or organization, or engaging directly or
indirectly in any business, which is or becomes competitive with the Company; (ii) disclosing to
anyone outside the Company, or using in other than the Company’s business, without prior written
authorization from the Company, any confidential information including material relating to the
business, products or services of the Company acquired by the Participant during employment with
the Company; (iii) soliciting, interfering, inducing, or attempting to cause any employee of the
Company to leave his or her employment, whether done on Participant’s own account or on account of
any person, organization or business which is or becomes competitive with the Company, or (iv)
directly or indirectly soliciting the trade or business of any customer of the Company.
“Detrimental Activity” for the purposes hereof with respect to involuntary termination without
cause or termination in connection with or as a result of a “Change of Control” shall include only
parts (ii) and (iii) of the preceding sentence.

     10. Employment. This Agreement is not an employment agreement. Nothing contained herein
shall be construed as creating any employment relationship.

     11. Notices. All notices required or permitted under this Agreement shall be in writing
and shall be delivered personally or by mailing the same by registered or certified mail postage
prepaid, to the other party. Notice given by mail as below set out shall be deemed delivered at
the time and on the date the same is postmarked.

     12. Tax Withholding. Participant agrees that as a condition to the payment of the
Award hereunder, any Common Stock issued under this Award shall be reduced by the number of shares
of Common Stock the value of which equals the amounts required to be withheld or paid with respect
thereto under all applicable federal, state and local taxes and other laws and regulations that may
be in effect as of the date of each such payment (“Tax Amounts”.)

Notices to the Company should be addressed to:

Cooper Cameron Corporation

1333 West Loop South, Suite 1700

Houston, Texas 77027

Attention: Corporate Secretary

Telephone: 713-513-3322

2

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