Document:

exv10w42

 

ADDENDUM

TO THE

INTERNATIONAL TRANSMISSION COMPANY

MANAGEMENT SUPPLEMENTAL BENEFIT PLAN

          This Addendum is to the International Transmission Company (“ITC”) Management Supplemental
Benefit Plan (“Plan”), established May 10, 2005 to supplement the pension benefits of Joseph L.
Welch (“Executive”), the president and chief executive officer of ITC Holdings Corp. and ITC.
Effective as set forth below, the following additional provisions shall be considered a part of the
Plan:

          1.      The following additional sentence shall be added to the end of Section 2.f. of the Plan,
effective as of the date of this Addendum, to read as follows:

          “The foregoing notwithstanding, the Executive’s “Compensation” shall not include any “Special
Bonus Amounts” awarded, paid, accrued, vested or deferred at any time after the effective date of
this Addendum under the ITC Holdings Corp. Executive Group Special Bonus Plan.”

          2.      The language of “Step 2” under Section 7 of the Plan shall be revised, effective as of the
date of this Addendum, to read as follows:

          “Executive will be a participant in the ITC Retirement Plan. At the time Executive’s benefits
are calculated for this Plan, his total benefits under the ITC Retirement Plan will be determined,
including (i) the value of his cash balance account as of the calculation date, and (ii) any other
annuity benefit that is payable to Executive thereunder. The total of such benefit amounts will be
converted into an annuity that is equal to the Actuarial Equivalent of the Guaranteed Term Plus
Life Benefit (the “ITC Plan Benefit”).”

          3.      The following additional sentence shall be added to the end of Section 6 of the Plan,
effective as of the date which is 12 months after the date of this Addendum, to read as follows:

          “In the event the commencement of such payments is delayed due to the provisions of Section
409A, there shall be payable to or on behalf of Executive at the time such payments are permitted
to commence, a lump sum amount equal to the payments under this Plan that would otherwise have been
payable during the period of delay required by Section 409A.”

 

 

ADOPTED AND EFFECTIVE as of this 17th day of May, 2006

	 	 	 	 	 
	 	INTERNATIONAL TRANSMISSION COMPANY

 	 
	 	By /s/ Daniel J. Oginsky
 	 
	 	Title  Vice President, General Counsel and Secretary 	 
	 	 	 
	 

CONSENTED TO as of this 17th day of May, 2006

	 	 	 	 	 
	 	EXECUTIVE

 	 
	 	/s/ Joseph L. Welch
 	 
	 	Joseph L. Welchexv10w43

 

SECOND AMENDMENT

TO THE

INTERNATIONAL TRANSMISSION COMPANY

EXECUTIVE SUPPLEMENTAL RETIREMENT PLAN

          This Second Amendment to the International Transmission Company Executive Supplemental
Retirement Plan (“Plan”), established effective March 1, 2003 to supplement the pension benefits of
certain executives and key management employees of ITC Holdings Corp. and its subsidiaries, is
hereby adopted pursuant to the amendment power reserved in Section 10.01 of the Plan, effective as
of January 1, 2006:

          1.      Section 2.18 of the Plan is restated in its entirety, to read as follows:

          "2.18 “Investment Credit” means the hypothetical earnings posted to the Participant’s Account
each Plan Year. The Investment Credit will be equal to the same earnings rate that is determined
from time to time as the “Interest Credit” applied to the cash balance accounts for participants
under Section 5.02(d) of the International Transmission Company Retirement Plan.”

          2.      Section 4.01 of the Plan is restated in its entirety, to read as follows:

          "4.01 Establishment of Accounts. The Committee shall establish a hypothetical
bookkeeping Account for each Participant. The initial value of a Participant’s Account shall be
zero. Compensation Credits shall be credited to a Participant’s Account as of the last business
day of the Plan Year. The Participant’s Account at the end of the first Plan Year in which the
Participant commences participation in the Plan shall equal the Compensation Credit for the
Participant for that Plan Year, less the “Special Employer Contribution” (if any) made with respect
to the Participant under Section 5.02(i) of the International Transmission Company Retirement Plan.

            In all subsequent years, the Participant’s Account shall be recalculated at the end of each
Plan Year, and shall equal the sum of the following:

            (a)      the prior Plan Year’s ending balance of the Account; plus

            (b)      the Investment Credit on the prior Plan Year’s ending Account balance; plus

            (c)      the Compensation Credit for the Participant for the current Plan Year, less the “Special
Employer Contribution” (if any) made with respect to the Participant under Section 5.02(i) of the
International Transmission Company Retirement Plan.”

 

 

ADOPTED this 17th day of May, 2006, effective as of January 1, 2006.

	 	 	 	 	 
	 	ITC HOLDINGS CORP.

 	 
	 	     By /s/Daniel J. Oginsky
 	 
	 	Title Vice President, General Counsel and Secretaryexv10w1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“Agreement”) is made by and between Trico Marine Services, Inc., a
Delaware corporation (“Company”), and Larry Francois (“Executive”).

W I T N E S S E T H:

     WHEREAS, Company is desirous to employ Executive in an executive capacity on the terms and
conditions, and for the consideration, hereinafter set forth and Executive is desirous of
continuing to be employed by Company on such terms and conditions and for such consideration;

     NOW, THEREFORE, for and in consideration of the mutual promises, covenants and obligations
contained herein, Company and Executive agree as follows:

ARTICLE 1: EMPLOYMENT AND DUTIES

     1.1 Employment; Effective Date. Effective as of May 8, 2006 (the “Effective Date”)
and continuing for the period of time set forth in Article 2 of this Agreement, Executive’s
employment by Company shall be subject to the terms and conditions of this Agreement.

     1.2 Positions. From and after the Effective Date, Company shall employ Executive in
the positions of Senior Vice President of Operations of the Company, or in such other positions as
the parties mutually may agree.

     1.3 Duties and Services. Executive agrees to serve in the positions referred to in
paragraph 1.2 and to perform diligently and to the best of his abilities the duties and services
appertaining to such offices, as well as such additional duties and services appropriate to such
offices which the parties mutually may agree upon from time to time. Executive’s employment shall
also be subject to the policies maintained and established by Company that are of general
applicability to Company’s executive employees, as such policies may be amended from time to time.

     1.4 Other Interests. Executive agrees, during the period of his employment by
Company, to devote substantially all of his business time, energy and best efforts to the business
and affairs of Company and its affiliates and not to engage, directly or indirectly, in any other
business or businesses, whether or not similar to that of Company, except with the consent of the
Board of Directors of Company (the “Board of Directors”). The foregoing notwithstanding, the
parties recognize and agree that Executive may engage in other business activities that do not
conflict with the business and affairs of Company or interfere with Executive’s performance of his
duties hereunder, which shall be at the sole determination of the Board of Directors.

     1.5 Duty of Loyalty. Executive acknowledges and agrees that Executive owes a
fiduciary duty of loyalty to act at all times in the best interests of Company. In keeping with
such duty, Executive shall make full disclosure to Company of all business opportunities pertaining
to Company’s business and shall not appropriate for Executive’s own benefit business opportunities
concerning Company’s business.

 

 

ARTICLE 2: TERM AND TERMINATION OF EMPLOYMENT

     2.1 Term. Unless sooner terminated pursuant to other provisions hereof, Company
agrees to employ Executive for the period beginning on the Effective Date and ending on the first
anniversary of the Effective Date (the “Initial Expiration Date”); provided, however, that
beginning on the Initial Expiration Date, and on each anniversary of the Initial Expiration Date
thereafter, if this Agreement has not been terminated pursuant to paragraph 2.2 or 2.3, then said
term of employment shall automatically be extended for an additional one-year period unless on or
before the date that is 30 days prior to the first day of any such extension period either party
shall give written notice to the other that no such automatic extension shall occur.

     2.2 Company’s Right to Terminate. Notwithstanding the provisions of paragraph 2.1,
Company shall have the right to terminate Executive’s employment under this Agreement at any time
for any of the following reasons:

      (i) upon Executive’s death;

      (ii) upon Executive’s becoming incapacitated by accident, sickness, or other
circumstances which, in the opinion of a physician selected by Company, renders him mentally
or physically incapable of performing the duties and services required of him hereunder;

      (iii) for “Cause”, which shall mean Executive (A) has engaged in gross negligence or
willful misconduct in the performance of the duties required of him hereunder, (B) has
willfully refused without proper legal reason to perform the duties and responsibilities
required of him hereunder, (C) has materially breached any material provision of this
Agreement or any material corporate policy maintained and established by Company that is of
general applicability to Company’s executive employees, (D) has willfully engaged in conduct
that he knows or should know is materially injurious to Company or any of its affiliates, or
(E) has been convicted of, or pleaded no contest to, a crime involving moral turpitude or
any felony, or (F) has engaged in any act of serious dishonesty which adversely affects, or
reasonably could in the future adversely affect, the value, reliability, or performance of
Executive in a material manner; provided, however, that Executive’s employment may be
terminated for Cause only if such termination is approved by at least a majority of a quorum
(as defined in Company’s By-laws) of the members of the Board of Directors after Executive
has been given written notice by Company of the specific reason for such termination and an
opportunity for Executive, together with his counsel, to be heard before the Board of
Directors; or

      (iv) for any other reason whatsoever, in the sole discretion of the Board of Directors.

Members of the Board of Directors may participate in any hearing that is required pursuant to
paragraph 2.2(iii) by means of conference telephone or similar communications equipment by means of
which all persons participating in the hearing can hear and speak to each other.

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     2.3 Executive’s Right to Terminate. Notwithstanding the provisions of paragraph 2.1,
Executive shall have the right to terminate his employment under this Agreement for any of the
following reasons:

      (i) for “Good Reason”, which shall mean, within 60 days of and in connection with or
based upon (A) a material breach by Company of any material provision of this Agreement
(provided, however, that a reduction in Executive’s annual base salary that is consistent
with reductions taken generally by other executives of Company shall not be considered a
material breach of a material provision of this Agreement), (B) a significant reduction in
the nature or scope of Executive’s duties and responsibilities, (C) the assignment to
Executive of duties and responsibilities that are materially inconsistent with the positions
referred to in paragraph 1.2, (D) any requirement that Executive relocate to a site more
than 50 miles from his present business address, or (E) Executive not being offered a
comparable position at the “resulting entity” (as defined in paragraph 4.1) in connection
with a Change in Control. Prior to Executive’s termination for Good Reason, Executive must
give written notice to Company of the reason for his termination and the reason must remain
uncorrected for 30 days following such written notice; or

      (ii) at any time for any other reason whatsoever, in the sole discretion of Executive.

     2.4 Notice of Termination. If Company desires to terminate Executive’s employment
hereunder at any time prior to expiration of the term of employment as provided in paragraph 2.1,
it shall do so by giving written notice to Executive that it has elected to terminate Executive’s
employment hereunder and stating the effective date and reason for such termination, provided that
no such action shall alter or amend any other provisions hereof or rights arising hereunder. If
Executive desires to terminate his employment hereunder at any time prior to expiration of the term
of employment as provided in paragraph 2.1, he shall do so by giving a 30-day written notice to the
Company that he has elected to terminate his employment hereunder and stating the effective date
and reason for such termination, provided that no such action shall alter or amend any other
provisions hereof or rights arising hereunder.

     2.5 Deemed Resignations. Any termination of Executive’s employment shall constitute
an automatic resignation of Executive as an officer of Company and each affiliate of Company, and
an automatic resignation of Executive from the Board of Directors (if applicable) and from the
board of directors of any affiliate of Company and from the board of directors or similar governing
body of any corporation, limited liability company or other entity in which Company or any
affiliate holds an equity interest and with respect to which board or similar governing body
Executive serves as Company’s or such affiliate’s designee or other representative.

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ARTICLE 3: COMPENSATION AND BENEFITS

     3.1 Base Salary. During the period of this Agreement, Executive shall receive a
minimum annual base salary of $250,000. Executive’s annual base salary shall be reviewed by the
Board of Directors (or a committee thereof) on an annual basis, and, in the sole discretion of the
Board of Directors (or such committee), such annual base salary may be increased, but not decreased
(except for a decrease that is consistent with reductions taken generally by other executives of
Company), effective as of any date determined by the Board of Directors. Executive’s annual base
salary shall be paid in equal installments in accordance with Company’s standard policy regarding
payment of compensation to executives but no less frequently than monthly.

     3.2 Bonuses. Executive shall be eligible to participate in Company’s annual cash
incentive plan as approved from time to time by the Board of Directors in amounts to be determined
by the Board of Directors (or a duly authorized committee thereof) based upon criteria established
by the Board of Directors (or such committee, if any).

     3.3 Other Perquisites. During his employment hereunder, Executive shall be afforded
the following benefits as incidences of his employment:

      (i) Business and Entertainment Expenses - Subject to Company’s standard policies and
procedures with respect to expense reimbursement as applied to its executive employees
generally, Company shall reimburse Executive for, or pay on behalf of Executive, reasonable
and appropriate expenses incurred by Executive for business related purposes, including dues
and fees to industry and professional organizations and costs of entertainment and business
development.

      (ii) Vacation - During his employment hereunder, Executive shall be entitled to four
weeks of paid vacation each calendar year (or such greater amount of vacation as provided to
executives of Company generally) and to all holidays provided to executives of Company
generally; provided, however, that for the period beginning on the Effective Date and ending
on the last day of the calendar year in which the Effective Date occurs, Executive shall be
entitled to four weeks of paid vacation (or such greater amount of vacation as provided to
executives of Company generally) reduced by the number of vacation days that Executive has
already used during such calendar year and prior to the Effective Date.

      (iii) Equity Awards – Subject to shareholder approval of an increase in the number of
shares eligible for issuance under the Company’s 2004 Stock Incentive Plan (the “Plan”) at
the annual meeting of shareholders in 2006 (the “Annual Meeting”), Executive shall receive:
(A) 9,000 restricted shares of common stock of Company, with forfeiture restrictions that
will lapse 100% on the third anniversary of the date of grant; and (B) options to purchase
9,000 shares of common stock of the Company, vesting ratably over three years beginning on
the first anniversary of the date of grant. The terms of the restricted stock and option
awards shall be determined by the administrator of the Plan based upon criteria established
from time to time by the administrator, except that the terms of the restricted stock and
option awards must not conflict with the provisions

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of this Agreement. It is expressly understood that upon approval of the increase of
shares available for issuance under the Plan at the Annual Meeting, the equity awards
described in this section 3.3(iii)(A) and 3.3(iii)(B) shall be granted as of the date of the
Annual Meeting and subject to no additional approvals by the Company and/or the Board of
Directors of the Company.

      (iv) Other Company Benefits.

         a. Executive and, to the extent applicable, Executive’s spouse, dependents and
beneficiaries, shall be allowed to participate in all benefits, plans and programs,
including improvements or modifications of the same, which are now, or may hereafter be,
available to other executive employees of Company. Such benefits, plans and programs shall
include, without limitation, any profit sharing plan, thrift plan, health insurance or
health care plan, life insurance, disability insurance, pension plan, supplemental
retirement plan, vacation and sick leave plan, and the like which may be maintained by
Company. Company shall not, however, by reason of this paragraph be obligated to institute,
maintain, or refrain from changing, amending, or discontinuing, any such benefit plan or
program, so long as such changes are similarly applicable to executive employees generally.
Notwithstanding the foregoing, Company shall reimburse Executive for COBRA (as defined in
Section 4.1 below) coverage and benefits from the Effective Date until such time as
Executive and, to the extent applicable, Executive’s spouse, dependents and beneficiaries,
are eligible to participate in Company’s benefits, plans and programs which are now, or may
hereafter be, available to other executive employees of Company.

         b. Executive is entitled to reimbursement of reasonable out-of-pocket relocation
expenses (including, but not limited to, realtor fees, closing costs and transportation of
Executive’s automobiles and other personal effects) up to a maximum amount of $35,000.

         c. Executive is entitled to reimbursement of reasonable out-of-pocket housing expenses
for a period of up to four months from the Effective Date (such expenses not to exceed a
maximum amount of $12,000).

         d. Company shall, at no additional cost to Executive, provide a life insurance policy
equal to three times the Executive’s base salary as set forth in section 3.1 above.

ARTICLE 4: EFFECT OF TERMINATION AND CHANGE IN CONTROL ON COMPENSATION; ADDITIONAL PAYMENTS

     4.1 Defined Terms. For purposes of this Article 4, the following terms shall have the
meanings indicated:

      “Change in Control” means (i) a merger of Company with another entity, a consolidation
involving Company, or the sale of all or substantially all of the assets of Company to
another entity if, in any such case, (A) the holders of equity securities of Company
immediately prior to such transaction or event do not beneficially own

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immediately after such transaction or event equity securities of the resulting entity
entitled to 50% or more of the votes then eligible to be cast in the election of directors
generally (or comparable governing body) of the resulting entity in substantially the same
proportions that they owned the equity securities of Company immediately prior to such
transaction or event or (B) the persons who were members of the Board of Directors
immediately prior to such transaction or event shall not constitute at least a majority of
the board of directors of the resulting entity immediately after such transaction or event,
(ii) the dissolution or liquidation of Company, (iii) when any person or entity, including a
“group” as contemplated by Section 13(d)(3) of the Securities Exchange Act of 1934, as
amended, acquires or gains ownership or control (including, without limitation, power to
vote) of more than 50% of the combined voting power of the outstanding securities of, (A) if
Company has not engaged in a merger or consolidation, Company, or (B) if Company has engaged
in a merger or consolidation, the resulting entity, or (iv) as a result of or in connection
with a contested election of directors, the persons who were members of the Board of
Directors immediately before such election shall cease to constitute a majority of the Board
of Directors. For purposes of the preceding sentence, (1) “resulting entity” in the context
of a transaction or event that is a merger, consolidation or sale of all or substantially
all assets shall mean the surviving entity (or acquiring entity in the case of an asset
sale) unless the surviving entity (or acquiring entity in the case of an asset sale) is a
subsidiary of another entity and the holders of common stock of Company receive capital
stock of such other entity in such transaction or event, in which event the resulting entity
shall be such other entity, and (2) subsequent to the consummation of a merger or
consolidation that does not constitute a Change in Control, the term “Company” shall refer
to the resulting entity and the term “Board of Directors” shall refer to the board of
directors (or comparable governing body) of the resulting entity.

      “Change in Control Benefits” means (i) a lump sum cash payment equal to the sum of: (A)
1.5 times Executive’s annual base salary at the rate in effect under paragraph 3.1 on the
date of termination of Executive’s employment (or, if higher, Executive’s annual base salary
in effect immediately prior to the Change in Control), (B) 1.5 times the higher of (1)
Executive’s highest annual bonus paid during the three most recent fiscal years or (2)
Executive’s Target Bonus (as provided in Company’s annual cash incentive plan) for the
fiscal year in which Executive’s date of termination occurs, and (C) any bonus that
Executive has earned and accrued as of the date of termination of Executive’s employment
which relates to periods that have ended on or before such date and which have not yet been
paid to Executive by Company; (ii) all of the outstanding stock options, restricted stock
awards and other equity based awards granted by Company to Executive shall become fully
vested and immediately exercisable in full on the date of termination of Executive’s
employment; and (iii) Health Coverage.

      “Health Coverage” means that if Executive elects to continue coverage for himself or
his eligible dependents under Company’s group health plans pursuant to the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), during the one-year period
commencing on the date of Executive’s termination of employment from Company (the “Severance
Period”), then throughout the Severance Period Company shall promptly reimburse Executive on
a monthly basis for the difference between the amount Executive pays to effect and continue
such coverage and

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the employee contribution amount that active senior executive employees pay for the
same or similar coverage under Company’s group health plans. Further, if after the
Severance Period Executive continues his COBRA coverage and Executive’s COBRA coverage
terminates at any time during the eighteen-month period commencing on the day immediately
following the last day of the Severance Period (the “Extended Coverage Period”), then
Company shall provide Executive (and his eligible dependents) with health benefits
substantially similar to those provided under its group health plans for active employees
for the remainder of the Extended Coverage Period at a cost to Executive that is no greater
than the cost of COBRA coverage; provided, however, that Company shall use its reasonable
efforts so that such health benefits are provided to Executive under one or more insurance
policies (or such other manner) so that reimbursement or payment of benefits to Executive
thereunder shall not result in taxable income to Executive. Notwithstanding the preceding
provisions of this paragraph, Company’s obligation to reimburse Executive during the
Severance Period and to provide health benefits to Executive during the Extended Coverage
Period shall immediately end if and to the extent Executive becomes eligible to receive
health plan coverage from a subsequent employer (with Executive being obligated hereunder to
promptly report such eligibility to Company).

      “Termination Benefits” means (i) a lump sum cash payment equal to the sum of: (A) 1.5
times the Executive’s annual base salary at the rate in effect under paragraph 3.1 on the
date of termination of Executive’s employment, (B) 1.5 times the higher of (1) Executive’s
highest annual bonus paid during the three most recent fiscal years or (2) Executive’s
Target Bonus (as provided in Company’s annual cash incentive plan) for the fiscal year in
which Executive’s date of termination occurs, and (C) any bonus that Executive has earned
and accrued as of the date of termination of Executive’s employment which relates to periods
that have ended on or before such date and which have not yet been paid to Executive by
Company; and (ii) Health Coverage.

     4.2 Termination By Expiration. If Executive’s employment hereunder shall terminate
upon expiration of the term provided in paragraph 2.1 hereof because either party has provided the
notice contemplated in such paragraph, then all compensation and all benefits to Executive
hereunder shall continue to be provided until the expiration of such term and such compensation and
benefits shall terminate contemporaneously with termination of his employment.

     4.3 Termination By Company. If Executive’s employment hereunder shall be terminated
by Company prior to expiration of the term provided in paragraph 2.1, then, upon such termination,
regardless of the reason therefor, all compensation and benefits to Executive hereunder shall
terminate contemporaneously with the termination of such employment; provided, however, that,
subject to paragraph 4.7 below, if such termination shall be for any reason other than those
encompassed by paragraph 2.2(i), 2.2(ii), or 2.2(iii), then Company shall provide Executive with
the Termination Benefits, except that if Executive is entitled to the Change in Control Benefits
pursuant to paragraph 4.5 as a result of such termination, then Executive will not receive the
Termination Benefits provided by Company under this paragraph. Any lump sum cash payment due to
Executive pursuant to the preceding sentence shall be paid to Executive within five business days
of the date of Executive’s termination of employment

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with Company; provided, however, that if the lump sum cash payment would be subject to
additional taxes and interest under Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”), then payment of the lump sum cash payment shall be deferred to the extent required to
avoid such additional taxes and interest.

     4.4 Termination By Executive. If Executive’s employment hereunder shall be terminated
by Executive prior to expiration of the term provided in paragraph 2.1, then, upon such
termination, regardless of the reason therefor, all compensation and benefits to Executive
hereunder shall terminate contemporaneously with the termination of such employment; provided,
however, that, subject to paragraph 4.7 below, if such termination occurs for Good Reason, then
Company shall provide Executive with the Termination Benefits, except that if Executive is entitled
to the Change in Control Benefits pursuant to paragraph 4.5 as a result of such termination, then
Executive will not receive the Termination Benefits provided by Company under this paragraph. Any
lump sum cash payment due to Executive pursuant to this paragraph shall be paid to Executive within
five business days of the date of Executive’s termination of employment with Company; provided,
however, that if the lump sum cash payment would be subject to additional taxes and interest under
Section 409A of the Code, then payment of the lump sum cash payment shall be deferred to the extent
required to avoid such additional taxes and interest.

     4.5 Change in Control Benefits. If Executive’s employment is terminated pursuant to
paragraph 2.2(iv) or paragraph 2.3(i) in connection with, based upon, or within 12 months after, a
Change in Control, then Company shall provide Executive with the Change in Control Benefits. Any
lump sum cash payment due to Executive pursuant to the preceding sentence shall be paid to
Executive within five business days of the date of Executive’s termination of employment with
Company; provided, however, that if the lump sum cash payment would be subject to additional taxes
and interest under Section 409A of the Code, then payment of the lump sum cash payment shall be
deferred to the extent required to avoid such additional taxes and interest.

     4.6 Additional Payments by Company. Notwithstanding anything to the contrary in this
Agreement, in the event that any payment or distribution by Company to or for the benefit of
Executive, whether paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise (a “Payment”), would be subject to the excise tax imposed by Section 4999 of
the Code, or any interest or penalties with respect to such excise tax (such excise tax, together
with any such interest or penalties, are hereinafter collectively referred to as the “Excise Tax”),
Company shall pay to Executive an additional payment (a “Gross-up Payment”) in an amount such that
after payment by Executive of all taxes (including any interest or penalties imposed with respect
to such taxes), including any Excise Tax imposed on any Gross-up Payment, Executive retains an
amount of the Gross-up Payment equal to the Excise Tax imposed upon the Payments. Company and
Executive shall make an initial determination as to whether a Gross-up Payment is required and the
amount of any such Gross-up Payment. Executive shall notify Company in writing of any claim by the
Internal Revenue Service which, if successful, would require Company to make a Gross-up Payment (or
a Gross-up Payment in excess of that, if any, initially determined by Company and Executive) within
10 days of the receipt of such claim. Company shall notify Executive in writing at least 10 days
prior to the due date of any response required with respect to such claim if it plans to contest
the claim. If Company decides

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to contest such claim, Executive shall cooperate fully with Company in such action; provided,
however, Company shall bear and pay directly or indirectly all costs and expenses (including
additional interest and penalties) incurred in connection with such action and shall indemnify and
hold Executive harmless, on an after-tax basis, for any Excise Tax or income tax, including
interest and penalties with respect thereto, imposed as a result of Company’s action. If, as a
result of Company’s action with respect to a claim, Executive receives a refund of any amount paid
by Company with respect to such claim, Executive shall promptly pay such refund to Company. If
Company fails to timely notify Executive whether it will contest such claim or Company determines
not to contest such claim, then Company shall immediately pay to Executive the portion of such
claim, if any, which it has not previously paid to Executive. In addition, Company may use
reasonable tax planning options to mitigate the effects of the Excise Tax and Executive agrees to
cooperate fully with Company in using all available tax planning options to mitigate the effects of
the Excise Tax; provided, however, Company shall bear and pay directly or indirectly all costs and
expenses (including additional interest and penalties) incurred in connection with using such tax
planning options and shall indemnify and hold Executive harmless, on an after-tax basis, for any
Excise Tax or income tax, including interest and penalties with respect thereto, imposed as a
result of Company’s use of such tax planning options.

     4.7 Release and Full Settlement. Anything to the contrary herein notwithstanding, as
a condition to the receipt of Termination Benefits under paragraph 4.3 or 4.4 hereof, Executive
shall first execute a release, in the form established by the Board of Directors, releasing the
Board of Directors, Company, and Company’s parent corporation, subsidiaries, affiliates, and their
respective shareholders, partners, officers, directors, employees, attorneys and agents from any
and all claims and from any and all causes of action of any kind or character including, but not
limited to, all claims or causes of action arising out of Executive’s employment with Company or
its affiliates or the termination of such employment, but excluding all claims to vested benefits
and payments Executive may have under any compensation or benefit plan, program or arrangement,
including this Agreement. The performance of Company’s obligations hereunder and the receipt of
any benefits provided under paragraphs 4.3 and 4.4 shall constitute full settlement of all such
claims and causes of action.

     4.8 No Duty to Mitigate Losses. Executive shall have no duty to find new employment
following the termination of his employment under circumstances which require Company to pay any
amount to Executive pursuant to this Article 4. Except to the extent Executive becomes eligible to
receive health plan coverage from a subsequent employer as provided in paragraph 4.1 with respect
to Health Coverage, any salary or remuneration received by Executive from a third party for the
providing of personal services (whether by employment or by functioning as an independent
contractor) following the termination of his employment under circumstances pursuant to which this
Article 4 apply shall not reduce Company’s obligation to make a payment to Executive (or the amount
of such payment) pursuant to the terms of this Article 4.

     4.9 Liquidated Damages. In light of the difficulties in estimating the damages for an
early termination of Executive’s employment under this Agreement, Company and Executive hereby
agree that the payments, if any, to be received by Executive pursuant to this Article 4 shall be
received by Executive as liquidated damages.

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     4.10 Other Benefits. This Agreement governs the rights and obligations of Executive
and Company with respect to Executive’s base salary and certain perquisites of employment. Except
as expressly provided herein, Executive’s rights and obligations both during the term of his
employment and thereafter with respect to stock options, restricted stock, incentive and deferred
compensation, life insurance policies insuring the life of Executive, and other benefits under the
plans and programs maintained by Company shall be governed by the separate agreements, plans and
other documents and instruments governing such matters.

ARTICLE 5: OWNERSHIP AND PROTECTION OF INFORMATION; COPYRIGHTS

     5.1 Disclosure to Executive. Executive acknowledges that Company has and will in the
course of his employment disclose to Executive, or place Executive in a position to have access to
or develop, trade secrets or confidential information of Company and its affiliates; and/or shall
entrust Executive with business opportunities of Company and its affiliates; and/or shall place
Executive in a position to develop business good will on behalf of Company and its affiliates.

     5.2 Property of Company. All information, ideas, concepts, improvements, discoveries,
and inventions, whether patentable or not, which are conceived, made, developed or acquired by
Executive, individually or in conjunction with others, during Executive’s employment by Company
(whether during business hours or otherwise and whether on Company’s premises or otherwise) which
relate to the business, products or services of Company or its affiliates shall be disclosed to
Company and are and shall be the sole and exclusive property of Company and its affiliates.
Moreover, all documents, drawings, memoranda, notes, records, files, correspondence, manuals,
models, specifications, computer programs, E-mail, voice mail, electronic databases, maps and all
other writings or materials of any type embodying any of such information, ideas, concepts,
improvements, discoveries, and inventions are and shall be the sole and exclusive property of
Company and its affiliates. Upon Executive’s termination of employment for any reason, Executive
shall deliver the same, and all copies thereof, to Company.

     5.3 Patent and Copyright Assignment. Executive agrees to assign and transfer to
Company or its designee, without any separate remuneration or compensation, his entire right, title
and interest in and to all Inventions and Works in the Field (as hereinafter defined), together
with all United States and foreign rights with respect thereto, and at Company’s expenses to
execute and deliver all appropriate patent and copyright applications for securing United States
and foreign patents and copyrights on such Inventions and Works in the Field, and to perform all
lawful acts, including giving testimony and executing and delivering all such instruments, that may
be necessary or proper to vest all such Inventions and Works in the Field and patents and
copyrights with respect thereto in Company, and to assist Company in the prosecution or defense of
any interference which may be declared involving any of said patent applications or patents or
copyright applications or copyrights. For purposes of this Agreement the words “Inventions and
Works in the Field” shall include any discovery, process, design, development, improvement,
application, technique, program or invention, whether patentable or copyrightable or not and
whether reduced to practice or not, conceived or made by Executive, individually or jointly with
others (whether on or off Company’s premises or during or after normal working hours) while
employed by Company; provided, however, that no discovery, process, design, development,

10

 

improvement, application, technique, program or invention reduced to practice or conceived by
Executive off Company’s premises and after normal working hours or during hours when Executive is
not performing services for Company, shall be deemed to be included in the term “Inventions and
Works in the Field” unless directly or indirectly related to the business then being conducted by
Company or its affiliates or any business which Company or its affiliates is then actively
exploring.

     5.4 No Unauthorized Use or Disclosure. Executive acknowledges that the business of
Company and its affiliates is highly competitive and that their strategies, methods, books,
records, and documents, their technical information concerning their products, equipment, services,
and processes, procurement procedures and pricing techniques, the names of and other information
(such as credit and financial data) concerning their customers and business affiliates, all
comprise confidential business information and trade secrets which are valuable, special, and
unique assets which Company and its affiliates use in their business to obtain a competitive
advantage over their competitors. Executive further acknowledges that protection of such
confidential business information and trade secrets against unauthorized disclosure and use is of
critical importance to Company and its affiliates in maintaining their competitive position.
Executive hereby agrees that Executive will not, at any time during or after Executive’s employment
by Company, make any unauthorized disclosure of any confidential business information or trade
secrets of Company and its affiliates, or make any use thereof, except in the carrying out of
Executive’s employment responsibilities hereunder. Company and its affiliates shall be third party
beneficiaries of Executive’s obligations under this paragraph. As a result of Executive’s
employment by Company, Executive may also from time to time have access to, or knowledge of,
confidential business information or trade secrets of third parties, such as customers, suppliers,
partners, joint venturers, and the like, of Company and its affiliates. Executive also agrees to
preserve and protect the confidentiality of such third party confidential information and trade
secrets to the same extent, and on the same basis, as the confidential business information and
trade secrets of Company and its affiliates. These obligations of confidence apply irrespective of
whether the information has been reduced to a tangible medium of expression (e.g., is only
maintained in the minds of Company’s employees) and, if it has been reduced to a tangible medium,
irrespective of the form or medium in which the information is embodied (e.g., documents, drawings,
memoranda, notes, records, files, correspondence, manuals, models, specifications, computer
programs, E-mail, voice mail, electronic databases, maps and all other writings or materials of any
type).

     5.5 Assistance by Executive. Both during the period of Executive’s employment by
Company and thereafter, Executive shall assist Company and its affiliates and their respective
nominees, at any time, in the protection of Company’s and its affiliates’ worldwide rights, titles,
and interests in and to information, ideas, concepts, improvements, discoveries, and inventions,
and their copyrighted works, including without limitation, the execution of all formal assignment
documents requested by Company and its affiliates or their respective nominees and the execution of
all lawful oaths and applications for applications for patents and registration of copyright in the
United States and foreign countries.

     5.6 Remedies. Executive acknowledges that money damages would not be sufficient
remedy for any breach of this Article 5 by Executive, and Company shall be entitled to enforce the
provisions of this Article 5 by terminating any payments then owing to Executive under this

11

 

Agreement and/or to specific performance and injunctive relief as remedies for such breach or
any threatened breach. Such remedies shall not be deemed the exclusive remedies for a breach of
this Article 5, but shall be in addition to all remedies available at law or in equity to Company
and its affiliates, including the recovery of damages from Executive and Executive’s agents
involved in such breach and remedies available to Company and its affiliates pursuant to other
agreements with Executive.

ARTICLE 6: NON-COMPETITION OBLIGATIONS

     6.1 Non-competition Obligations. As part of the consideration for the compensation
and benefits to be paid to Executive hereunder; to protect the trade secrets and confidential
information of Company and its affiliates that have been or will in the future be disclosed or
entrusted to Executive, the business good will of Company and its affiliates that has been and will
in the future be developed in Executive, or the business opportunities that have been and will in
the future be disclosed or entrusted to Executive by Company and its affiliates; and as an
additional incentive for Company to enter into this Agreement, Company and Executive agree to the
provisions of this Article 6. Executive agrees that during the period of Executive’s
non-competition obligations hereunder, Executive shall not, directly or indirectly for Executive or
for others, in any geographic area or market where Company or its affiliates are conducting any
business as of the date of termination of the employment relationship or have during the previous
12 months conducted any business:

	 	(i)	 	engage in any offshore supply vessel business serving the oil and gas
industry that is competitive with the business conducted by Company or its
affiliates;
	 
	 	(ii)	 	render any advice or services to, or otherwise assist, any other
person, association, or entity who is engaged, directly or indirectly, with any
offshore supply vessel business serving the oil and gas industry that is
competitive with the business conducted by Company or its affiliates;
	 
	 	(iii)	 	induce any employee of Company or its affiliates to terminate his or
her employment with Company or its affiliates, or hire or assist in the hiring
of any such employee by any person, association, or entity not affiliated with
Company;
	 
	 	(iv)	 	request or cause any customer of Company or its affiliates to terminate
any business relationship with Company or its affiliates.

These non-competition obligations shall apply during the period that Executive is employed by
Company and shall continue until the first anniversary of the termination of Executive’s
employment. Executive understands that the foregoing restrictions may limit Executive’s ability to
engage in certain businesses anywhere in the world during the period provided for above, but
acknowledges that Executive will receive sufficiently high remuneration and other benefits under
this Agreement to justify such restriction.

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     6.2 Enforcement and Remedies. Executive acknowledges that money damages would not be
sufficient remedy for any breach of this Article 6 by Executive, and Company shall be entitled to
enforce the provisions of this Article 6 by terminating any payments then owing to Executive under
this Agreement and/or to specific performance and injunctive relief as remedies for such breach or
any threatened breach. Such remedies shall not be deemed the exclusive remedies for a breach of
this Article 6, but shall be in addition to all remedies available at law or in equity to Company,
including, without limitation, the recovery of damages from Executive and Executive’s agents
involved in such breach and remedies available to Company pursuant to other agreements with
Executive.

     6.3 Reformation. It is expressly understood and agreed that Company and Executive
consider the restrictions contained in this Article 6 to be reasonable and necessary to protect the
proprietary information of Company and its affiliates. Nevertheless, if any of the aforesaid
restrictions are found by a court having jurisdiction to be unreasonable, or overly broad as to
geographic area or time, or otherwise unenforceable, the parties intend for the restrictions
therein set forth to be modified by such courts so as to be reasonable and enforceable and, as so
modified by the court, to be fully enforced.

ARTICLE 7: MISCELLANEOUS

     7.1 Notices. For purposes of this Agreement, notices and all other communications
provided for herein shall be in writing and shall be deemed to have been duly given when personally
delivered or when mailed by United States registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

	 	 	 
	If to Company to:

	 	Trico Marine Services, Inc.
	 

	 	2401 Fountainview, Suite 920
	 

	 	Houston, Texas 77057
	 

	 	Attention: General Counsel
	 
	 	 
	If to Executive to:

	 	Larry Francois
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

or to such other address as either party may furnish to the other in writing in accordance
herewith, except that notices or changes of address shall be effective only upon receipt.

     7.2 Applicable Law. This Agreement is entered into under, and shall be governed for
all purposes by, the laws of the State of Texas.

     7.3 No Waiver. No failure by either party hereto at any time to give notice of any
breach by the other party of, or to require compliance with, any condition or provision of this
Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or
at any prior or subsequent time.

     7.4 Severability. If a court of competent jurisdiction determines that any provision
of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of that

13

 

provision shall not affect the validity or enforceability of any other provision of this
Agreement, and all other provisions shall remain in full force and effect.

     7.5 Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together will constitute one and the same
Agreement.

     7.6 Withholding of Taxes and Other Employee Deductions. Company may withhold from any
benefits and payments made pursuant to this Agreement all federal, state, city and other taxes as
may be required pursuant to any law or governmental regulation or ruling and all other normal
employee deductions made with respect to Company’s employees generally.

     7.7 Headings. The paragraph headings have been inserted for purposes of convenience
and shall not be used for interpretive purposes.

     7.8 Gender and Plurals. Wherever the context so requires, the masculine gender
includes the feminine or neuter, and the singular number includes the plural and conversely.

     7.9 Affiliate. As used in this Agreement, the term “affiliate” shall mean any entity
which owns or controls, is owned or controlled by, or is under common ownership or control with,
Company.

     7.10 Assignment. This Agreement shall be binding upon and inure to the benefit of
Company and any successor of Company, by merger or otherwise. Except as provided in the preceding
sentence, this Agreement, and the rights and obligations of the parties hereunder, are personal and
neither this Agreement, nor any right, benefit, or obligation of either party hereto, shall be
subject to voluntary or involuntary assignment, alienation or transfer, whether by operation of law
or otherwise, without the prior written consent of the other party.

     7.11 Term. This Agreement has a term co-extensive with the term of employment
provided in paragraph 2.1. Termination shall not affect any right or obligation of any party which
is accrued or vested prior to such termination.

     7.12 Entire Agreement. Except as provided in (i) the written benefit plans and
programs referenced in paragraph 3.3(iv) (and any agreements between Company and Executive that
have been executed under such plans and programs) and (ii) any signed written agreement
contemporaneously or hereafter executed by Company and Executive, this Agreement constitutes the
entire agreement of the parties with regard to the subject matter hereof, and contains all the
covenants, promises, representations, warranties and agreements between the parties with respect to
employment of Executive by Company. Without limiting the scope of the preceding sentence, all
understandings and agreements preceding the date of execution of this Agreement and relating to the
subject matter hereof (other than the agreements described in clause (i) of the preceding sentence)
are hereby null and void and of no further force and effect. Any modification of this Agreement
will be effective only if it is in writing and signed by the party to be charged.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the ___day of May,
2005, to be effective as of the Effective Date.

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	 	 	TRICO MARINE SERVICES, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Trevor Turbidy	 	 
	 	 	 	 	 
	 	 	Title:	 	President and Chief Executive Officer
	 	 	 	 	 
	 

	 	 	 	 	 	“COMPANY”
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Larry Francois
	 

	 	 	 	 	 	“EXECUTIVE”

15

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