Document:

exv10w32

 

Exhibit 10.32

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of the
20th day of November, 2007 (the “Effective Date”), between Integrated Service Company
LLC, an Oklahoma limited liability company (the “Employer”), and Arlo B. DeKraai (the “Executive”).

RECITALS

     WHEREAS, the Executive is currently employed by the Employer as the President; and

     WHEREAS, the Executive is a shareholder of the Employer; and

     WHEREAS, on the Effective Date, Willbros USA, Inc., a Delaware corporation (“Willbros”), is
purchasing all outstanding shares of limited liability company membership interest of the Employer
(“Shares”), which purchase includes all of the business and goodwill of the Employer (the “Purchase
Transaction”); and

     WHEREAS, the Executive is selling his Shares to Willbros pursuant to the Purchase Transaction;
and

     WHEREAS, a condition of the Purchase Transaction is the Executive’s agreement to remain
employed by the Employer for a specified term and to forego business competition with the Employer
for the term of this Agreement as set forth herein; and

     WHEREAS, the Executive has agreed to forego other business opportunities and to continue his
employment with the Employer following the closing of the Purchase Transaction;

     NOW, THEREFORE, in consideration of the mutual covenants and representations contained herein,
and the mutual benefits derived herefrom, the parties agree as follows:

ARTICLE I

FULL-TIME EMPLOYMENT OF EXECUTIVE

     1.1 DUTIES AND STATUS.

          (a) The Employer hereby engages the Executive as a full-time employee for the period specified
in Section 3.1 below (the “Employment Period”), and the Executive accepts such employment, on the
terms and conditions set forth in this Agreement.

          (b) The Executive shall serve in a management capacity and shall perform such duties and
responsibilities as may be assigned from time to time by the Employer. He shall report to Randy
Harl, or such other officer of the Employer as the President or board of managers of the Employer
shall designate.

 

 

          (c) Throughout the Employment Period, the Executive shall devote substantially all his full
time and efforts to the business of the Employer and shall not engage in consulting work or any
trade or business for his own account or for or on behalf of any other person, firm or entity which
competes, conflicts or interferes with the performance of his duties under this Agreement in any
way; provided, however, nothing contained herein will prevent the Executive from serving on the
board of directors of any company that does not compete with the Employer, or from serving on the
board of directors of any charitable or philanthropic organization.

          (d) Except for reasonable business travel, the Executive shall be required to perform the
services and duties provided for in this Section 1.1 only at the principal offices of the Employer
in the Tulsa, Oklahoma, metropolitan area.

     1.2 COMPENSATION AND GENERAL BENEFITS. The Executive shall be compensated as follows:

          (a) Beginning on the Effective Date, and continuing until adjusted by the mutual agreement of
the Employer and the Executive, the Employer shall pay the Executive a base salary in the amount of
Three Hundred Thirty Thousand Two Hundred Dollars ($330,200) per year. The Executive will be
eligible for increases in such base salary during the Employment Period based on merit as
determined by the Employer. Such salary shall be payable in periodic equal installments pursuant
to the Employer’s payroll policy covering management employees.

          (b) Throughout the Employment Period, the Executive shall be entitled to participate in such
vacation, retirement, bonus, disability, life, sickness, accident, dental, medical and health
benefits and other employee benefit programs, plans and arrangements of the Employer which are in
effect for senior management employees on the Effective Date, and in any successor or amended
employee benefit programs, plans or arrangements which may be established by the Employer.

     1.3 BONUS. The Executive shall be eligible for participation in the Willbros
Management Incentive Plan, as amended from time to time.

     1.4 RESTRICTED STOCK AWARD. In consideration of the Executive foregoing other
business opportunities and agreeing to accept employment with the Employer and to perform the
services described in this Agreement, and provided, that, at the 2008 annual meeting of the
stockholders of Willbros Group, Inc. (“WGI”), such stockholders approve an amendment to the WGI
1996 Stock Plan (the “Plan”) to provide for an increase in the number of shares of common stock
available for issuance under the Plan, that the board of directors of WGI shall recommend, the
Executive will be awarded 25,000 shares of common stock, par value $.05 per share (“common stock”)
of WGI (such shares of common stock, the “restricted stock shares”) promptly following such annual
meeting, subject to (i) all of the terms and provisions of the Plan as amended, (ii) the
Executive’s execution and delivery of a Restricted Stock Award Agreement substantially in the form
of Exhibit A attached hereto (the

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“Restricted Stock Award Agreement”), and (iii) Section 3.3 below. The Executive’s Restricted
Stock Award will fully vest, and all applicable restrictions on such shares will automatically
lapse on the date that is three (3) years from the Effective Date.

ARTICLE II

COMPETITION AND CONFIDENTIAL INFORMATION

     2.1 COMPETITION AND CONFIDENTIAL INFORMATION. The Executive has had access to and has
acquired, will have access to and will acquire, and has assisted in and may assist in developing,
confidential and proprietary information relating to the business and operations of the Employer
and its affiliates, including but not limited to information with respect to present and
prospective business plans, financing arrangements, marketing plans, customer and supplier lists,
contracts and proposals.

     The Executive acknowledges that such information has been and will continue to be of central
importance to the business of the Employer and its affiliates and that disclosure or use by others
could cause substantial loss to the Employer and its affiliates. The Executive and the Employer
also recognize that an important part of the Executive’s duties have been, and will continue to be,
to develop goodwill for the Employer and its affiliates through his personal contact with vendors,
customers, subcontractors, and others sharing business relationships with the Employer and its
affiliates, and that there is a danger that this goodwill, a proprietary asset of the Employer and
its affiliates, may follow the Executive if and when his employment relationship with the Employer
is terminated.

     The Executive accordingly agrees that, during the Employment Period and for any period during
which the Executive is receiving payments pursuant to Section 3.3(a), below, the Executive will
not, either individually or as owner, partner, agent, employee, or consultant, engage in any
activity competitive with the Employer or any of its affiliates and will not on his own behalf or
that or any third party directly or indirectly hire, discuss employment with, or recommend to any
third party the employment of any employee of the Employer or any of its affiliates who was
actively employed by the Employer or an affiliate on the Effective Date without regard to whether
that employee has subsequently terminated his or her employment with the Employer.

     In the event that the Employment Period terminates pursuant to Sections 3.2(b) (d) or (e),
below prior to the end of the three-year term of this Agreement, Executive agrees that he will not,
for the remaining term of this Agreement individually or as owner, partner, agent, employee, or
consultant of another entity, solicit directly or indirectly business of the nature engaged in by
the Employer from a current customer of the Employer or a former customer of the Employer with
which the Executive has dealt on behalf of the Employer, or on his own behalf or that of a third
party, hire, discuss employment with, or recommend to any third party the employment of any
employee of the Employer, or any of its affiliates, who was actively employed by the Employer or an
affiliate on the Effective Date without regard to whether that employee has subsequently terminated
his or her employment with the Employer.

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     Nothing in this Article shall be construed to prevent the Executive from owning, as an
investment, not more than one percent (1%) of a class of equity securities issued by any issuer and
publicly traded and registered under Section 12 of the Securities Exchange Act of 1934.

     2.2 NON-DISCLOSURE. At all times after the Effective Date, the Executive will keep
confidential any confidential or proprietary information of the Employer and its affiliates which
is now known to him or which hereafter may become known to him as a result of his employment or
association with the Employer and shall not at any time directly or indirectly disclose any such
information to any person, firm or employer, or use the same in any way other than in connection
with the business of the Employer and its affiliates, or pursuant to any duly issued court order or
subpoena. For purposes of this Agreement, “confidential or proprietary information” means
information unique to the Employer and its affiliates which has a significant business purpose and
is not known or generally available from sources outside the Employer and its affiliates. This
Section 2.2 shall survive the termination of this Agreement for whatever reason.

     2.3 REMEDIES FOR BREACH. It is recognized that damages in the event of a breach of
this Article II by the Executive would be difficult, if not impossible, to ascertain, and it is
therefore agreed that, if such breach occurs, the Employer, in addition to and without limiting any
other remedy or right it may have, shall have the right to an injunction or other equitable relief,
in any court of competent jurisdiction, enjoining any such breach, and the Executive hereby waives
any and all defenses he may have on the ground of lack of jurisdiction or competence of the court
to grant such an injunction or other equitable relief. The existence of this right shall not
preclude any other rights and remedies at law or equity which the Employer may have.

     2.4 TERMINATION FOR GOOD REASON. If the Executive should terminate his employment
with the Employer for Good Reason (as defined in Section 3.4(c) below), then the non-compete and
non-solicitation restrictions of this Article II shall be canceled; provided, however, in such
event the confidentiality and non-disclosure obligations of this Article II shall continue in full
force and effect in accordance with their terms.

ARTICLE III

EMPLOYMENT PERIOD

     3.1 DURATION. The term of this Agreement shall commence on the Effective Date and
shall terminate on the third annual anniversary thereof. The “Employment Period” shall be
contemporaneous with the term of this Agreement, unless terminated early in conformity with Section
3.2 below.

     3.2 EARLY EMPLOYMENT TERMINATION. The Employment Period shall be terminated prior to
the end of this Agreement for any of the following reasons or upon the occurrence of any of the
following events:

          (a) Termination of the Executive’s employment by the Employer without cause (as defined in
Section 3.4(a) below); or

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          (b) Discharge of the Executive for cause; or

          (c) Death of the Executive; or

          (d) Total disability of the Executive (as defined in Section 3.4(b) below); or

          (e) Voluntary resignation of the Executive; or

          (f) Voluntary resignation of the Executive for Good Reason.

     3.3 COMPENSATION AND/OR BENEFITS FOLLOWING EARLY EMPLOYMENT TERMINATION.

          (a) In the event of an early termination of the Employment Period due to the Employer’s
involuntary termination of the Executive’s employment without cause, the Employer shall pay the
Executive an amount equal to his base salary at the rate specified in Section 1.2(a) above or his
base salary in effect immediately before the involuntary termination, whichever is greater, for the
period representing the remainder of the term of this Agreement. Any payment made to Executive
pursuant to this Section 3.3(a) shall be paid in the same manner as Executive’s base salary during
the period of employment; provided, however, the first such payment shall be made to the Executive
within ten (10) days after the date of such termination, and shall equal seven twelfths (7/12’s) of
the Executive’s annual salary specified in Section 1.2(a) above. The second payment shall be made
to the Executive on the date that is eight (8) months after such termination date and shall equal
one twelfth (1/12) of the Executive’s annual salary specified in Section 1.2(a) above. All
remaining post-termination payments shall be made monthly on the day of the month on which the
Executive’s employment was terminated, each such payment in an amount equal to one twelfth (1/12)
of the Executive’s annual salary specified in Section 1.2(a) above, until the expiration of the
term of this Agreement. Each payment under this Section 3.3(a) shall be deemed to be a separate
payment for purposes of Section 409A of the Internal Revenue Code of 1986, as amended, and
applicable Treasury guidance thereunder.

          (b) In the event of an early termination of the Employment Period because of the voluntary
resignation (whether or not for Good Reason), total disability or death of the Executive, or
termination of the Executive’s employment for cause, the Executive, or his estate in the event of
his death, will receive his base salary at the rate specified in Section 1.2(a) above only through
the date of employment termination.

          (c) In the event of an early termination of this Agreement other than pursuant to Section
3.2(b), 3.2(e) or 3.2(f) above, all restrictions shall lapse on the restricted stock shares awarded
pursuant to Section 1.4 above and the Plan, and such award shall immediately vest. With respect to
such vesting of the restricted stock shares, in the event of any discrepancy between the
definitions in Section 3.4(a) or Section 3.4(b) below and the

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Plan and the Restricted Stock Award Agreement, the Plan and the Restricted Stock Award
Agreement shall govern.

          (d) In the event of an early termination of the Employment Period, the Employer shall pay to
the Executive all accrued but unpaid vacation pay, bonuses or other compensation earned by the
Executive prior to the date of termination.

     3.4 DEFINITIONS. The following words shall have the specified meanings when used in
the Sections specified:

          (a) As used in Sections 3.2(a), 3.2(b) and 3.3(b) above, the term “cause” means (i) willful
and continued non-performance of his job responsibilities, after the Executive has been provided
written notice of such nonperformance, counseling and a reasonable time period, not less than three
months, has passed without substantial correction of such nonperformance, (ii) the Executive’s
conviction for a felony, (iii) proven or admitted fraud, misappropriation, theft or embezzlement by
the Executive, (iv) the Executive’s inebriation or use of illegal drugs in the course of, related
to or connected with the business of the Employer, (v) the Executive’s willful engaging in
misconduct that is materially injurious to the Employer or its affiliates, monetarily or otherwise,
or (vi) the breach by the Executive of his obligations under Sections 2.1 and 2.2 above.

          (b) As used in Sections 3.2(d) and 3.3(b) above, the term “total disability” means a physical
or mental condition which causes the Executive to be unable to perform substantially all of the
duties of his position hereunder for a period of six consecutive months or more as reasonably
determined by the Employer.

          (c) As used in Sections 2.4, 3.2(f) and 3.3(b) above, the term “for Good Reason” means any of
the following: (a) the Employer’s material breach of this Agreement; (b) the assignment of the
Executive without his consent to a position, responsibilities or duties of a materially lesser
status or degree of responsibility than his position, responsibilities or duties at the Effective
Date; (c) the requirement by the Employer that the Executive be based anywhere other than as set
forth in Section 1.1(d) above; or (d) a reduction in the Executive’s base salary from that in
effect at the Effective Date.

ARTICLE IV

NOTICES

Any notices requests, demands and other communications provided for by this Agreement shall be
sufficient if in writing and if sent by registered or certified mail to the Executive at the last
address he has filed in writing with the Employer or, in the case of the Employer, at its principal
offices.

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ARTICLE V

MISCELLANEOUS

     5.1 ENTIRE AGREEMENT. This Agreement, the Share Purchase Agreement
executed to evidence the Purchase Transaction, the Restricted Stock Award Agreement and the
Management Incentive Plan constitute the entire understanding of the Executive and the Employer
with respect to the subject matter hereof, and supersede any and all prior understandings on the
subjects contained herein, written or oral.

     5.2 MODIFICATION. This Agreement shall not be varied, altered, modified, canceled,
changed, or in any way amended, nor any provision hereof waived, except by mutual agreement of the
parties in a written instrument executed by the parties hereto or their legal representatives.
Nothing in this Agreement shall affect the Employer’s and its affiliates’ rights to amend or
terminate any of its employee benefit plans, as permitted under applicable law and the respective
terms of such plans.

     5.3 SEVERABILITY. In the event that any provision or portion of this
Agreement shall be determined to be invalid or unenforceable for any reason, the remaining
provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect,
provided, that if the unenforceability of any provision is because of the breadth of its scope, the
duration of such provision or the geographical area covered thereby, the parties agree that such
provision shall be amended, as determined by the court, so as to reduce the breadth of the scope or
the duration and/or geographical area of such provision such that, in its reduced form, said
provision shall then be enforceable.

     5.4 GOVERNING LAW AND VENUE. The provisions of this Agreement shall be construed and
enforced in accordance with the laws of the State of Texas, without regard to any otherwise
applicable principles of conflicts of laws. The parties further agree that any dispute arising
from this Agreement shall be submitted to and determined by a court of general jurisdiction sitting
in Tulsa County, Oklahoma.

[Signatures on next page]

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     IN WITNESS WHEREOF, the parties have executed and delivered this Agreement on the date first
above written.

	 	 	 	 	 
	 	INTEGRATED SERVICE COMPANY LLC

 	 
	 	By:  	/s/ Dennis G. Berryhill
 	 
	 	 	Name:  	Dennis G. Berryhill 	 
	 	 	Its:               Vice President 	 
	 
	 	EXECUTIVE

 	 
	 	/s/ Arlo B. DeKraai
 	 
	 	Arlo B. DeKraai 	 
	 	 	 

 

 

	 	 	 	 	 

EXHIBIT “A”

Restricted Stock Award Agreement

WILLBROS GROUP, INC.

RESTRICTED STOCK AWARD AGREEMENT

[DATE]

[Name]

[Address]

[Address]

Dear __________________:

     1. Restricted Stock Award. Willbros Group, Inc., a Republic of
Panama corporation (the “Company”), hereby grants to you an aggregate of ___shares of Common
Stock, par value $.05 per share, of the Company (the “Restricted Shares”). This award is subject to
your acceptance of and agreement to all of the applicable terms, conditions, and restrictions
described in the Company’s 1996 Stock Plan, as amended (the “Plan”), a copy of which, along with
the Prospectus for the Plan, are attached hereto, and to your acceptance of and agreement to the
further terms, conditions, and restrictions described in this Restricted Stock Award Agreement
(this “Award Agreement”). To the extent that any provision of this Award Agreement conflicts with
the expressly applicable terms of the Plan, it is hereby acknowledged and agreed that those terms
of the Plan shall control and, if necessary, the applicable provisions of this Award Agreement
shall be hereby deemed amended so as to carry out the purpose and intent of the Plan.

     2. Possession of Certificates. The Company shall issue a certificate or certificates
for the Restricted Shares in your name and shall retain the certificate(s) for the period during
which the restrictions described in Section 4(b) are in effect. You shall execute and deliver to
the Company a stock power or stock powers in blank for the Restricted Shares. You hereby agree that
the Company shall hold the certificate(s) for the Restricted Shares and the related stock power(s)
pursuant to the terms of this Award Agreement until such time as the restrictions described in
Section 4(b) lapse as described in Section 5 or the Restricted Shares are canceled pursuant to the
terms of Section 4(b).

     3. Ownership of Restricted Shares. You shall be entitled to all the rights of
absolute ownership of the Restricted Shares, including the right to vote such shares and to receive
dividends therefrom if, as, and when declared by the Company’s Board of Directors, subject,
however, to the terms, conditions, and restrictions described in the Plan and in this Award
Agreement.

 

 

     4. Restrictions.

          (a) Your ownership of the Restricted Shares shall be subject to the restrictions set forth in
subsection (b) of this Section until such restrictions lapse pursuant to the terms of Section 5, at
which time the Restricted Shares shall no longer be subject to the applicable restrictions.

          (b) The restrictions referred to in subsection (a) of this Section are
as follows:

               (1) At the time of your “Termination of Employment” (as defined in Section 10(b)), other than
a Termination of Employment that occurs as a result of an event described in Section 5(b)(1) or a
Termination of Employment that is described in Section 5(b)(2), you shall forfeit the Restricted
Shares to the Company and all of your rights thereto shall terminate without any payment of
consideration by the Company. If you forfeit any Restricted Shares and your interest therein
terminates pursuant to this paragraph, such Restricted Shares shall be canceled.

               (2) You may not sell, assign, transfer, pledge, hypothecate, or otherwise dispose of the
Restricted Shares.

     5. Lapse of Restrictions.

     (a) The restrictions described in Section 4(b) shall lapse with respect to all of the
Restricted Shares on the third anniversary of the effective date of the employment agreement
between Integrated Service Company LLC and you. Following the lapse of such restrictions with
respect to any Restricted Shares, such Restricted Shares shall no longer be subject to the
restrictions described in Section 4(b).

     (b) Notwithstanding the provisions of subsection (a) of this Section, the restrictions
described in Section 4(b) shall lapse with respect to all the Restricted Shares at the time of the
occurrence of any of the following events:

          (1) Your death, “Disability” (as defined in the Plan) or “Retirement” (as defined in Section
10(c));

          (2) Your Termination of Employment, but only if such Termination of Employment is the result
of a dismissal or other action by the Company or any of its Subsidiaries and does not constitute a
“Termination for Cause” (as defined in Section 10(a)); or

          (3) A “Change of Control” (as defined in the Plan) of the Company.

 

 

     6. Agreement With Respect to Taxes; Share Withholding.

          (a) You agree that (1) you will pay to the Company or a Subsidiary, as the case may be, or
make arrangements satisfactory to the Company or such Subsidiary regarding the payment of any
foreign, federal, state, or local taxes of any kind required by law to be withheld by the Company
or any of its Subsidiaries with respect to the Restricted Shares, and (2) the Company or any of its
Subsidiaries shall, to the extent permitted by law, have the right to deduct from any payments of
any kind otherwise due to you any foreign, federal, state, or local taxes of any kind required by
law to be withheld with respect to the Restricted Shares.

          (b) With respect to withholding required upon the lapse of restrictions or upon any other
taxable event arising as a result of the Restricted Shares awarded, you may elect, subject to the
approval of the committee of the Board of Directors of the Company that administers the Plan, to
satisfy the withholding requirement, in whole or in part, by having the Company withhold Restricted
Shares having a Fair Market Value on the date the tax is to be determined equal to the minimum
statutory total tax which could be withheld on the transaction. All such elections shall be
irrevocable, made in writing, signed by you, and shall be subject to any restrictions or
limitations that such committee, in its sole discretion, deems appropriate.

     7. Adjustment of Shares.  The number of Restricted Shares subject to this Award
Agreement shall be adjusted as provided in Section 13 of the Plan. Any shares or other securities
received by you as a stock dividend on, or as a result of stock splits, combinations, exchanges of
shares, reorganizations, mergers, consolidations or otherwise with respect to the Restricted Shares
shall have the same terms, conditions and restrictions and bear the same legend as the Restricted
Shares.

     8. Agreement With Respect to Securities Matters. You agree that you will not sell or
otherwise transfer any Restricted Shares except pursuant to an effective registration statement
under the U.S. Securities Act of 1933, as amended, or pursuant to an applicable exemption from such
registration.

     9. Restrictive Legend. You hereby acknowledge that the certificate(s) for the
Restricted Shares will bear a conspicuous legend referring to the terms, conditions, and
restrictions described in the Plan and this Award Agreement. Any attempt to dispose of any
Restricted Shares in contravention of the terms, conditions, and restrictions described in the Plan
or this Award Agreement shall be ineffective.

     10. Certain Definitions. As used in this Award Agreement, the following terms shall
have the respective meanings indicated:

          (a) “Termination for Cause” shall mean a Termination of Employment as a result of (1) your
willful and continued failure substantially to perform your duties (other than any such failure
resulting from your incapacity due to physical or mental

 

 

illness), (2) your conviction for a felony, proven or admitted fraud, misappropriation, theft or
embezzlement by you, your inebriation or use of illegal drugs in the course of, related to or
connected with the business of the Company or any of its Subsidiaries, or your willful engaging in
misconduct that is materially injurious to the Company or any of its Subsidiaries, monetarily or
otherwise, or (3) if you have entered into an employment agreement or contract with the Company or
any of its Subsidiaries, any other action or omission that is identified in such agreement or
contract as giving rise to “Cause” for the termination of your employment with the Company or any
of its Subsidiaries. For this purpose, no act, or failure to act, on your part shall be considered
“willful” unless done, or omitted, by you not in good faith and without reasonable belief that your
action or omission was in the best interest of the Company or any of its Subsidiaries.

          (b) “Termination of Employment” shall mean the termination of your full-time employment with
the Company or any of its Subsidiaries for any reason other than your death, Disability or
Retirement.

          (c) “Retirement” shall mean the voluntary termination of your full-time employment with the
Company or any of its Subsidiaries after you are at least 62 years of age and have a minimum of
four consecutive years of continuous service with the Company or any of its Subsidiaries.

     Capitalized terms used in this Award Agreement and not otherwise defined herein shall have the
respective meanings provided in the Plan.

     If you accept this Restricted Stock Award and agree to the foregoing terms and conditions,
please so confirm by signing and returning the duplicate copy of this Award Agreement enclosed for
that purpose.

	 	 	 	 	 
	 	WILLBROS GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

     The foregoing Restricted Stock Award is accepted by me as of the ___day of ___,
___, and I hereby agree to the terms, conditions, and restrictions set forth above and in the
Plan.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	[Name]exv10w35

 

Exhibit 10.35

WILLBROS GROUP, INC.

AMENDED AND RESTATED

MANAGEMENT INCENTIVE COMPENSATION PROGRAM

1. Purpose

     The Compensation Committee (the “Committee”) of the Board of Directors of Willbros Group, Inc.
(the “Company”) has approved this Management Incentive Compensation Program (the “Program”) to
reward key employees for enhancing the value and efficiency of the Company.

     The Program will consist of Participants designated by the Committee throughout the Company
including its subsidiaries (collectively, the “Group”). The Program will reward the Participants
based upon achievement against Performance Metrics set by the Committee at, or as soon as
practicable after, the beginning of each Program Year.

     The Program Year will coincide with the fiscal year of the Company. Awards made under the
Program are in addition to Base Salary and Base Salary adjustments to maintain market
competitiveness.

     The Committee reserves the right to amend, modify or revoke the Program at its discretion,
without prior notice to Participants; provided, however, any amendments, modifications or
revocations shall not be retroactive as to Awards granted for prior Program Years. This is a
discretionary program and no contractual right or property interest to any benefit described herein
is intended to be created by this document or any related action of the Company, and none should be
inferred from the descriptions of the Program.

2. Definitions

     Award — Cash awarded to a Participant under the Program, net of all required foreign,
federal and state withholding taxes, due to Group performance and results.

     Base Salary — The aggregate amount of wages and/or salary (but excluding any bonus,
disability pay or severance pay) earned by a Participant during the applicable Program Year in
which the Participant was eligible to participate in the Program.

     Disability — The same meaning as such term or similar term as defined in the
disability insurance policy maintained by the Company which covers the Participant at the time of
the alleged disability, or in the event the Company maintains more than one disability insurance
policy which covers the Participant at such time, the meaning in the disability policy most
recently acquired by the Company. If the Company maintains no such disability insurance policy at
such time, Disability shall mean a physical or mental condition which causes the Participant to be
unable to perform substantially all of the duties of his or her position for a period of six (6)
months or more as determined by the Chief Executive Officer of the Company.

     Maximum Annual Incentive % — A maximum value of annual incentive expressed as a
percentage of a Participant’s Base Salary.

     Participant — Any employee of a member of the Group who is designated by the
Committee to participate in the Program for a Program Year.

 

 

     Payout — The actual payment of an Award earned by a Participant.

     Payout Date — The date an Award is paid for a Program Year which date shall be
anytime between the end of the Program Year and two and one-half months following the end of the
Program Year.

     Performance Metrics — Critical financial, operating efficiency and Participant
specific criteria against which the Committee decides to measure performance. Currently the
following are the Performance Metrics from which the Committee will select the Performance Metrics
to be considered for a Program Year:

EPS — Earnings Per Share of the Company for a Program Year per audited
consolidated financial statements.

Net Income — Net income of the Group and/or the specific business unit
within the Group for a Program Year per audited consolidated financial statements.

Safety — The Total Case Incident Rate (as that term is used in the United
States Department of Labor’s Bureau of Labor Statistics) for the Group and/or the
specific business unit within the Group.

Days Sales Outstanding — The product of a formula that measures and is a
reflection of the procedures and practices applied within the Group and/or the
specific business unit within the Group to minimize the number of days required to
collect revenue earned.

Participant Intangibles — Those job performance characteristics of each
individual Participant that such Participant’s supervisors determine have
contributed to the achievement of Group and/or the specific business unit within the
Group goals.

The Committee has the right to amend or change the Performance Metrics at its discretion, including
amendments or changes in light of unforeseen events.

     Performance Metric Hurdles — An assigned threshold, target and maximum value that
corresponds with each individual Performance Metric against which performance is measured.

     Performance Metric Weighting — The allocation of a Participant’s incentive between
Performance Metrics (e.g., Net Income vs. Safety).

     Program — The Management Incentive Compensation Program set forth in this document
and as amended by the Committee from time to time.

     Program Year — The fiscal year of the Company.

     Target Annual Incentive % — A target value of annual incentive expressed as a
percentage of a Participant’s Base Salary determined by the Committee prior to, or as soon as
practicable after, the beginning of each Program Year.

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     Threshold Annual Incentive % — A threshold value of annual incentive expressed as a
percentage of a Participant’s Base Salary. This value corresponds to the minimum performance
criteria to receive any Payout under the Program.

3. Administration 

     The Committee, in its discretion, may establish, prior to or as soon as practicable after the
end of the prior Program Year, the following for each Program Year:

	 	•	 	Performance Metrics, Performance Metric Hurdles and Performance Metric Weighting.
	 
	 	•	 	Participants.
	 
	 	•	 	Each Participant’s Target Annual Incentive % (and associated Threshold Annual
Incentive % and Maximum Annual Incentive %).

     The Committee will be responsible for administration of the Program, but may delegate this
responsibility at its discretion.

     The guidelines and procedures set forth herein will be followed by the Committee (or its
designee) with respect to operation of the Program.

4. Participation/Eligibility

     All employees of the Group are eligible to participate in the Program. Participation will be
at the sole discretion of the Committee in consultation with senior management of the Company.

     Each Participant whose employment is terminated due to death or Disability during a Program
Year shall be eligible for an Award based upon the Base Salary earned by such Participant prior to
termination. Otherwise, no Participant shall be eligible to receive part or all of an Award unless
the Participant is employed by the Company on the Payout Date for the Award.

5. Timing of Award Payments 

     After the year-end audited financial statements have been finalized for a Program Year, the
Awards generated, if any, will be determined and approved by the Committee. After approval by the
Committee, Awards for such Program Year will be paid to Participants no later than two and one half
months following the end of such Program Year. As provided above, a Participant must be employed on
the Payout Date or any Award earned by such Participant will be forfeited, except in cases of death
or Disability.

6. Award Determination 

     The Awards for each Program Year shall be calculated, in the case of Group Performance
Metrics, based on the Group’s actual performance as compared to threshold, target and maximum
Performance Metric Hurdle levels for the Performance Metrics determined for that Program Year by
the Committee. That portion of an Award which is based on the Participant Intangibles Performance
Metric shall be based on the recommendation of a Participant’s supervisor as reviewed by the Chief
Executive Officer of the Company. The

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Participants will be granted a percentage of their Target Annual Incentive % based on their
Performance Metric Weighting, as established by the Committee, with such percentage potentially
increasing or decreasing, at the discretion of the Committee, after Program Year results are
determined (to ensure that unforeseen events are considered and accurately measured).

7. Duration of Program 

     The Program is an integral part of the Company’s compensation plan for the future. The
Committee reserves the power and the right at any time, and from time to time, to modify, amend or
terminate (in whole or in part) any or all of the provisions of the Program; provided, however,
that no such modification or amendment shall be retroactive to reduce or affect any Awards
otherwise due and payable under the provisions of the Program for any Program Year during which the
Program was in effect.

8. Termination of Program 

     The incentive computation for the Program Year in which the termination of the Program occurs
will be based on the period ending on the last business day immediately prior to the effective date
of the Program termination. All performance calculations will be adjusted to coincide with such
period. Notwithstanding the termination of the Program before the end of a Program Year, Award
Payments for such Program Year will be made as provided in Section 5.

9. Additional Program Provisions 

	 	•	 	The Committee shall direct the administration of the Program. The Committee shall
have full power to amend, modify, rescind, construe and interpret the Program. Any
action taken or decision made by the Committee arising out of, or in connection with,
the construction, administration, interpretation or effect of the Program or of any
rules and regulations adopted thereunder shall be conclusive and binding upon all
Participants and all persons claiming under or through a Participant.
	 
	 	•	 	The Committee may rely upon any information supplied to it by any officer of any
member of the Group or by the Company’s independent registered public accountants and
may rely on the advice of such accountants or of counsel in connection with the
administration of the Program and shall be fully protected in relying upon such
information or advice.
	 
	 	•	 	No employee or officer of any member of the Group or member of the Committee shall
have any liability for any decision or action if made or done in good faith and the
Company shall indemnify each director, employee, and officer of each member of the
Group acting in good faith pursuant to the Program against any loss or expense arising
therefrom.
	 
	 	•	 	Nothing in the Program shall be construed or interpreted as giving any employee the
right to be employed or retained by any member of the Group or impair the right of any
member of the Group to control its employees or to terminate the services of any
employee at any time. The Program shall not create any rights of future participation
herein.

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	 	•	 	The laws of the State of Texas shall determine and govern the validity and
construction of the Program in all respects. If any term or condition herein conflicts
with applicable law, the validity of the remaining provisions shall not be affected
thereby.
	 
	 	•	 	The Program shall continue in effect until terminated by the Committee in accordance
with its terms.
	 
	 	•	 	No person eligible to receive any payment shall have any rights to pledge, assign or
otherwise dispose of all or any portion of such payments, either directly or by
operation of law, including but not by way of limitation, execution, levy, garnishment,
attachment, pledge or bankruptcy. If a Participant is not living at the time an Award
is payable to him in accordance with the Program, any Award which would have been
payable to him shall be paid to the beneficiary, if any, designated in writing by the
Participant, or if none, to his estate. A Participant may at any time revoke or change
his beneficiary by filing written notice of such revocation or change with the Company.
	 
	 	•	 	The Company shall deduct all required foreign, federal tax and any required state
tax withholding from the Awards.
	 
	 	•	 	The administrative expense of the Program will be borne by the Company.
	 
	 	•	 	Neither the establishment of the Program nor the making of Awards hereunder shall be
deemed to create a trust. The Program shall constitute an unfunded, unsecured liability
of the Company to make payments in accordance with the provisions of the Program, and
no individual shall have any security or other interest in any assets of the Company in
connection with the Program.

10. Effective Date 

     The Program was approved by the Committee on March 1, 2007, to be effective as of January 1,
2007, amended and restated January 15, 2008, and shall continue, as amended from time to time,
until terminated.

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