Document:

EX-10.1

 Exhibit 10.1 

[Microsoft letterhead] 
 February 3, 2014 

Satya Nadella 
 Microsoft Corporation 

One Microsoft Way 
 Redmond, WA 98052 

Dear Satya: 
 On behalf of the Board of Directors (Board), I am pleased to offer you
the position of Chief Executive Officer of Microsoft Corporation (CEO). 
 Position and Effective Date 

In your capacity as CEO, you will report directly (and only) to the Board and have all of the customary authorities, duties and responsibilities that accompany your
position. On the effective date, you will also become a member of the Board. The effective date for your new roles will be February 4, 2014. 
 Salary

 On the effective date, your annual salary rate will increase to $1,200,000, payable semi-monthly. 

Ongoing Incentive Compensation 
 You will participate in Microsoft’s
Executive Incentive Program (EIP) as it may be in effect from time to time. We expect that you will work with the Compensation Committee of the Board to assess and revise, if appropriate, the EIP to ensure alignment with business priorities. There
are currently two key components of the EIP. 
  

	•	 	EIP Cash Award  

 For Microsoft’s 2014 and 2015 fiscal years, your annual
cash award target will be 300% of your salary earned as CEO during the fiscal year. Your actual cash award can be from 0-300% of the target and will be based on your performance as evaluated by the Board. 

 

	•	 	EIP Stock Award 

 For Microsoft’s 2015 fiscal year, on an annualized basis your EIP
stock award will be $13,200,000. 
 One-Time Compensation 
 To further align
your interests with the long-term performance of Microsoft, you will be granted Long-Term Performance Stock Awards (LTPSAs) on the effective date. 
 One-third of
your LTPSAs will be earned based on Microsoft’s Total Shareholder Return relative to the S&P 500 (Relative TSR) over each of three overlapping, five-year performance periods (LTPSA Performance Periods) commencing on the grant date and the
first and second anniversaries thereof. The number of LTPSAs that will vest at the end of the applicable LTPSA Performance Period will be determined according to the following schedule. 

													
	 If 5-year Relative TSR is (1)
	 	 30th
 percentile

or less
	 	 40th
 percentile
	 	 50th
 percentile
	 	 60th
 percentile
	 	 70th
 percentile
	 	
80th

percentile and above

	 	 	 	 	 	 	 
	 The number of LTPSAs that vest is
	 	150,000 (2)	 	300,000	 	450,000	 	600,000	 	750,000	 	900,000
	 	 	 	 	 	 	 
	 	 	Threshold	 	 	 	 	 	Target	 	 	 	Maximum

															
	(1)	  	If Relative TSR falls between the amounts shown in the table, the number of LTPSAs that vest will be determined by linear interpolation.
	(2)	  	Requires satisfaction of the Threshold Goal set forth in the LTPSA award agreement.

  
 Termination of Employment

 You will continue to participate in Microsoft’s Senior Executive Severance Benefit Plan (SESBP), as it may be in effect from time to time (except that, for
the first 24 months of your new role, vesting of “eligible stock awards” under the SESBP that would otherwise vest in the 12 months following the Covered Termination (as defined in the SESBP) will be determined without proration). In
addition, if your employment is terminated by Microsoft without Cause (as defined in the SESBP), 
  

	 	(1)	your LTPSAs for which the LTPSA Performance Period has begun but has not been completed will be prorated and continue to vest without regard to any employment or performance condition (other than satisfaction of the
Threshold Goal set forth in the LTPSA award agreement), based on deemed Relative TSR at the 30th percentile level for the Performance Period and the ratio of the number of full and partial months
from the beginning of the LTPSA Performance Period to the date your employment terminates and the number of full months in the LTPSA Performance Period, and 

  

	 	(2)	in the case of such a termination before the grant of your 2015 EIP stock award, you will receive cash payments under the SESBP with respect to that stock award as if it had been granted on the date of this offer.

 Moreover, while the terms of the SESBP indicate that the SESBP may be amended or terminated by Microsoft’s Compensation Committee in any manner,
no such amendment or termination of the SESBP shall operate to reduce the terms of the SESBP (as modified above) as they would apply to you as of the date of this offer. In other words, the terms of the SESBP as they would apply to you can be
changed to increase amounts payable to you thereunder, but cannot be changed to reduce or eliminate amounts payable to you under the SESBP as currently in effect (and as modified by this offer). 

Additionally, and for the avoidance of doubt, nothing in (1) or (2) above shall operate to reduce severance amounts payable to you under that portion of the
SESBP that provides for reduction for “any severance or similar benefits under any other Microsoft plan, program or policy.” 
 Benefits 

You will continue to be eligible to participate in Microsoft’s broad-based employee benefit programs. 

 Reimbursement of Expenses 
 We
will reimburse you for the reasonable expenses incurred in negotiating the terms of your employment up to $50,000. 
 Stock Ownership and Executive Compensation
Recovery Policy 
 Long-term perspective and accountability are fundamental values of Microsoft. As a senior executive, you agree that you will continue to be
subject to Microsoft’s Stock Ownership and Holding Requirements and Executive Compensation Recovery Policy as they may change from time to time. Links to these policies are available at
http://www.microsoft.com/investor/CorporateGovernance/ShareholderAccountability/default.aspx. 
 Cooperation 

You agree (whether during or after your employment with Microsoft) to reasonably cooperate with Microsoft in connection with any litigation or regulatory matter or with
any government authority on any matter, in each case, pertaining to Microsoft and with respect to which you may have relevant knowledge, provided that, in connection with such cooperation, Microsoft will reimburse your reasonable expenses and you
shall not be required to act against your own legal interests. 
 Standard Microsoft Arrangements 

This offer is subject to your signed acceptance of the Microsoft’s standard Arbitration Agreement and Employee Agreement. Microsoft will treat all payments to you
under this offer (except for expense reimbursements that are not subject to taxation) as compensation for services and, accordingly, may withhold from any payment any taxes that are required to be withheld under any law, rule or regulation. Any
equity awards granted under this offer will be subject to the terms of Microsoft’s 2001 Stock Plan (or any successor) and the applicable form of award agreement approved under that Plan. 

Entire Agreement 
 This offer, together with the Arbitration Agreement, the
Microsoft Corporation Employee Agreement, and the applicable Microsoft plan documents, constitute the complete and exclusive agreement between us regarding this offer and your employment and supersede any prior representations or promises, whether
written or oral. This offer may only be amended or modified in a written agreement signed by you and a person authorized to act on behalf of the Board. 
 The Board
looks forward to your acceptance. 
  

									
	Sincerely,	  		  		  	
					
	 /s/ Lisa Brummel
	  		  		  		  	
	Lisa Brummel, Executive Vice President, Human Resources	  		  	
					
	ACCEPTANCE:	  		  		  		  	
				
	I have read and fully understood this offer. I agree with, and accept, this offer subject to the terms and conditions detailed above.	  		  		  	
					
	 /s/ Satya Nadella
	  		  	 February 3, 2014
	  	(date)EX-10.1

 Exhibit 10.1 

DRESSER-RAND GROUP INC. 

STANDARD TERMS AND CONDITIONS FOR 

EMPLOYEE NONQUALIFIED STOCK OPTIONS 

These Standard Terms and Conditions apply to any Options granted under the Dresser-Rand Group Inc. 2008 Stock Incentive Plan, as amended (the
“Plan”), on or after January 1, 2014, which are identified as nonqualified stock options and are evidenced by a Grant Notice or an action of the Committee that specifically refers to these Standard Terms and Conditions.
Participant must formally accept the Option grant in the manner specified in the applicable Grant Notice within 90 days following the Grant Date specified by the Grant Notice; if the Participant fails to do so, the Participant’s
Option will be forfeited and the Participant will have no further rights with respect to such Option.  
  

	1.	TERMS OF OPTION 

  

	 	A.	Dresser-Rand Group Inc. (the “Company”) has granted to the Participant named in the Grant Notice provided to said the Participant herewith (the “Grant Notice”) a nonqualified stock option (the
“Option”) to purchase up to the number of shares of the Company’s common stock (the “Common Stock”), set forth in the Grant Notice, at the purchase price per share and upon the other terms and subject to the conditions set
forth in the Grant Notice, these Standard Terms and Conditions (as amended from time to time), and the Plan. For purposes of these Standard Terms and Conditions and the Grant Notice, any reference to the Company shall include a reference to any
Subsidiary. Capitalized terms not defined in this document have the meaning given to them in Plan or Grant Notice. 

  

	 	B.	In the event there is a conflict between these Standard Terms and Conditions or the applicable Grant Notice and applicable local law, local law shall govern. 

 

	2.	NON-QUALIFIED STOCK OPTION 

 The Option is not intended to be an incentive stock option
under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”) and will be interpreted accordingly. 
  

	3.	EXERCISE OF OPTION 

 The Option shall not be exercisable as of the Grant Date set forth
in the Grant Notice. After the Grant Date, to the extent not previously exercised, and subject to termination or acceleration as provided in these Standard Terms and Conditions and the Plan, the Option shall be exercisable to the extent it becomes
vested, as described in the Grant Notice, to purchase up to that number of shares of Common Stock as set forth in the Grant Notice provided that (except as set forth in Section 4.A below) the Participant remains employed with the Company and
does not experience a termination of employment. The vesting period and/or exercisability of an Option may be adjusted by the Committee to reflect the decreased level of employment during any period in which the Participant is on an approved leave
of absence or is employed on a less than full time basis, provided that the Committee may take into consideration any accounting consequences to the Company. 

  
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 To exercise the Option (or any part thereof), the Participant shall deliver to the Company a
“Notice of Exercise” on a form either provided by the Company or follow a mechanism established by the Company with the broker administering the Option, specifying the number of whole shares of Common Stock the Participant wishes to
purchase and how the Participant’s shares of Common Stock should be registered (in the Participant’s name only or in the Participant’s and the Participant’s spouse’s names as community property or as joint tenants with right
of survivorship). 
 The exercise price (the “Exercise Price”) of the Option is set forth in the Grant Notice. The Company shall
not be obligated to issue any shares of Common Stock until the Participant shall have paid the total Exercise Price for that number of shares of Common Stock. The exercise price of may be paid in Common Stock, cash or a combination thereof,
including an irrevocable commitment by a broker to pay over such amount from a sale of the Common Stock issuable under the Option, the delivery of previously owned Common Stock and withholding of Common Stock deliverable upon exercise. 

Fractional shares may not be exercised. Shares of Common Stock will be issued as soon as practical after exercise. Notwithstanding the above,
the Company shall not be obligated to deliver any shares of Common Stock during any period when the Company determines that the exercisability of the Option or the delivery of shares hereunder would violate any federal, state or other applicable
laws. 
  

	4.	EXPIRATION OF OPTION 

 Except as provided in this Section 4, the Option shall expire
and cease to be exercisable as of the Expiration Date set forth in the Grant Notice. 
  

	 	A.	If the Participant’s employment terminates by reason of Retirement (as defined in Section 14.G below), the Participant (or the Participant’s estate, beneficiary or legal representative), subject to
Section 9, may exercise the Option to the extent vested or exercisable until the Expiration Date. Upon Retirement, the unvested portion of the Option shall continue to vest under the schedule described in the Grant Notice; provided, however,
that if the Participant’s Retirement is less than twelve (12) months after the Grant Date, only the following portion of the unvested Option shall continue to vest under the schedule described in the Grant Notice: (x) the number of
then-unvested Options granted hereunder, (y) multiplied by a fraction, (I) the numerator of which is the number of full days from the Grant Date through the date of Retirement, and (II) the denominator of which is 365. The remaining
unvested portion of the Option shall be forfeited and canceled as of the date of such Retirement. 

  
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	 	B.	If the Participant’s employment terminates by reason of death or Disability, the Participant (with Participant’s estate, beneficiary or legal representative, may exercise the Option (regardless of whether then
vested or exercisable) until the earlier of (i) the twelve month anniversary of the date of such termination and (ii) the Expiration Date. 

  

	 	C.	If the Participant’s employment terminates for any reason other than death, Disability, Cause or Retirement, the Participant may exercise any Options that are vested and exercisable at the time of such termination
of employment until the earlier of (A) the 90-day anniversary of the date of such termination of employment and (B) the Expiration Date. Any portion of the Option that is not vested and exercisable at the time of such a termination of
employment shall be forfeited and canceled as of the date of termination of employment. 

  

	 	D.	If the Participant’s employment is terminated for Cause, the entire Option, whether or not then vested and exercisable, shall be immediately forfeited and canceled as of the date of such termination of employment.

  

	5.	CHANGE IN CONTROL 

 The Options shall be treated as follows if there is a Change in
Control: 
  

	 	A.	If the Options are not continued, assumed or substituted by the Participant’s employer (or an Affiliate of such employer) that engages the Participant immediately following the Change in Control, the entire Option
shall fully vest and become exercisable immediately prior to the occurrence of the Change in Control. Alternatively, the Committee may provide for a cash payment equal to the excess (if any) of the Change in Control Price over the Exercise Price in
settlement of the Options (including, without limitation, those Options that vest pursuant to this Section 5.A). 

  

	 	B.	If the Options are continued, assumed or substituted by the Participant’s employer (or an Affiliate of such employer) that engages the Participant immediately following the Change in Control, the Options shall
continue to vest and become exercisable as provided in the Grant Notice; provided, however, that if the Participant’s employment is terminated other than for Serious Misconduct, or the Participant resigns for Good Reason, in either case within
twelve months following the Change in Control, the Option shall fully vest and become exercisable upon such termination or resignation. 

  
 3 

 For purposes hereof, the Options shall be considered “assumed” if, following the Change
in Control, the Option confers the right to purchase or receive, for each share of Common Stock subject to the Option immediately prior to the Change in Control, (i) the consideration (whether stock, cash, or other securities or property)
received in the Change in Control by holders of Common Stock for each share held on the effective date of the Change in Control in excess of the Exercise Price, or (ii) common stock of the successor to the Company of substantially equivalent
economic value to the consideration received in the Change in Control by holders of Common Stock for each share held on the effective date of the Change in Control (as determined by the Committee in its discretion) in excess of the Exercise Price.
The Options will be considered “substituted for” if the successor or acquiror replaces the Options with equity awards of substantially equivalent economic value measured as of the date the Change in Control occurs (as determined by the
Committee in its discretion). 
  

	6.	RESTRICTIONS ON RESALES OF SHARES ACQUIRED PURSUANT TO OPTION EXERCISE 

 The Company may
impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by the Participant or other subsequent transfers by the Participant of any shares of Common Stock issued as a result of the
exercise of the Option, including without limitation (a) restrictions under an insider trading policy, (b) restrictions designed to delay and/or coordinate the timing and manner of sales by the Participant and other optionholders and
(c) restrictions as to the use of a specified brokerage firm for such resales or other transfers. 
  

	7.	INCOME TAXES 

 The Company shall not deliver shares of Common Stock in respect of the
exercise of any Option unless and until the Participant has made arrangements satisfactory to the Committee to satisfy applicable withholding tax obligations. Unless otherwise permitted by the Committee, withholding shall be effected by withholding
Common Stock issuable in connection with the exercise of the Option. The Participant acknowledges that the Company shall have the right to deduct any taxes required to be withheld by law in connection with the exercise of the Options from any
amounts payable by it to the Participant (including, without limitation, future cash wages). 
  

	8.	NON-TRANSFERABILITY OF OPTION 

 The Participant may not assign or transfer the Option to
anyone other than by will or the laws of descent and distribution and, subject to Section 4.B, the Option shall be exercisable only by the Participant during his or her lifetime. The Company may cancel the Participant’s Option if the
Participant attempts to assign or transfer it in a manner inconsistent with this Section 8. 

  
 4 

	9.	RESTRICTED ACTIVITIES 

  

	 	A.	By accepting the Option, the Participant acknowledges and agrees that (i) the Company is engaged in a highly competitive business; (ii) the Company has expended considerable time and resources to develop
goodwill with its customers, vendors, and others, and to create, protect, and exploit its Confidential Information (as defined in Section 14.B below); (iii) the Company must continue to prevent the dilution of its goodwill and unauthorized
use or disclosure of its Confidential Information to avoid irreparable harm to its legitimate business interests; (iv) the Participant’s participation in or direction of the Company’s day-to-day operations and strategic planning are
an integral part of the Company’s continued success and goodwill; (v) in the period between the Participant’s notice to the Committee of the Participant’s Retirement and the date of the Participant’s Retirement (the
“Transition Period”), the Participant will participate in identifying a successor, transitioning his or her responsibilities to and training a successor, and engaging in other transition activities (the “Transition Process”);
(vi) given the Participant’s position and responsibilities, including during the Transition Period, he or she necessarily will be relying on and/or creating Confidential Information that belongs to the Company and enhances the
Company’s goodwill; during the Transition Process will be transmitting Confidential Information to his or her successor; and in carrying out his or her responsibilities, including during the Transition Process, the Participant in turn will be
relying on the Company’s goodwill and the disclosure by the Company to him or her of Confidential Information; (vii) the Participant will have access to Confidential Information, including concerning the Transition Process, that could be
used by any competitor of the Company in a manner that would irreparably harm the Company’s competitive position in the marketplace and dilute its goodwill; (viii) the Participant’s engaging in any of the Restricted Activities during
the Restriction Period would result in the inevitable disclosure or use of Confidential Information for the Competitor’s benefit or to the detriment of the Company; (ix) the Participant will return to the Company upon Retirement all the
Confidential Information, in whatever form or media and all copies thereof, in his or her possession, custody, or control; (x) by giving advance notice of his or her Retirement, the Participant represents that he or she will not engage in the
Restricted Activities; (xi) the Company is relying on such representation in providing the Participant continuing access to Confidential Information and authorizing him or her to engage in the Transition Process and other activities that will
create new and additional Confidential Information during the Transition Period; and (xii) absent the Participant’s agreement to this Section 9, the Company would not authorize the Participant to participate in the Transition Process
and engage in other activities that will create new and additional Confidential Information in an unfettered fashion and would not provide for the extended exercisability of the Option (regardless of whether then vested or exercisable) upon
Retirement as provided for in Section 4.A. 

  

	 	B.	The Company, by granting the Option, and the Participant, by accepting the Option, thus acknowledge and agree that during the remaining term of the Participant’s employment with the Company, including the
Transition Period, the Participant (i) will receive Confidential Information that is unique, proprietary, and valuable to the Company; (ii) will rely on and/or create Confidential Information that is unique, proprietary, and valuable to
the Company; and (iii) will benefit, including without limitation by way of increased earnings and earning capacity, from the goodwill the Company has generated and from the Confidential Information. 

  
 5 

	 	C.	Accordingly, in consideration of the promises of the Company set out in Section 9.B, the Option, and the extended exercisability of the Option (regardless of whether then vested or exercisable) upon Retirement as
provided for in Section 4.A, the Participant agrees that: 

  

	 	1.	He or she will not engage in any of the Restricted Activities (as defined in Section 14.E below) during the Restriction Period (as defined in Section 14.F below); 

 

	 	2.	If he or she engages in, or threatens to engage in, any of the Restricted Activities during the Restriction Period or otherwise violates his or her obligations under this Section 9, then (x) the Option shall
immediately expire and cease to be exercisable (regardless of whether then vested or exercisable) and (y) with respect to any Option (or any part thereof) that has been exercised, the Participant shall immediately pay to the Company the excess
of the fair market value of the Common Stock associated with the exercise of the Option (or any part therof) at the time of exercise over the Exercise Price; 

  

	 	3.	If he or she engages in, or threatens to engage in, any of the Restricted Activities during the Restriction Period or otherwise violates his or her obligations under this Section 9, the Company would not have an
adequate remedy at law and would be irreparably harmed and, accordingly, that the Company shall be entitled to equitable relief, including preliminary and permanent injunctions and specific performance, in the event the Participant engages or
threatens to engage in any of the Restricted Activities during the Restriction Period or otherwise violates his or her obligations under this Section 9, without the necessity of posting any bond or proving special damages or irreparable injury;
and 

  

	 	4.	Neither Section 9.C.2 nor Section 9.C.3 constitute the Company’s exclusive remedy for a breach or threatened breach of the Participant’s obligations under this Section 9, but shall be in
addition to all other remedies available to the Company at law or equity. 

  
 6 

	 	D.	By accepting the Option, the Participant acknowledges and agrees that (i) the restrictions contained in this Section 9 are ancillary to an otherwise enforceable agreement, including without limitation the
mutual promises and undertakings set out in Section 9.A and B, the Option, and the extended exercisability of the Option (regardless of whether then vested or exercisable) upon Retirement as provided for in Section 4.A; (ii) the
Company’s promises and undertakings set out in these Standard Terms and Conditions, and in particular Section 9.B, the Grant Notice, and the Plan, and the Participant’s position and responsibilities with the Company and his or her
promises and undertakings set out in Section 9.A, give rise to the Company’s interest in restricting the Participant’s post-Retirement activities; (iii) such restrictions are designed to enforce the Participant’s promises
and undertakings set out in Section 9.A and his or her common-law obligations and duties owed to the Company; (iv) the restrictions are reasonable and necessary, are valid and enforceable, and do not impose a greater restraint than
necessary to protect the Company’s goodwill, Confidential Information, and other legitimate business interests; (v) he or she will immediately notify the Company in writing should he or she believe or be advised that the provisions of this
Section 9 are not, or likely are not, valid and enforceable; (vi) he or she will not challenge the enforceability of this Section 9; (vii) absent the Participant’s agreement to this Section 9, the Company would not
authorize the Participant to participate in the Transition Process and engage in other activities that provide access to or create new and additional Confidential Information in an unfettered fashion and would not provide for the extended
exercisability of the Option (regardless of whether then vested or exercisable) upon Retirement as provided for in Section 4.A. 

  

	 	E.	The provisions of Section 4.A providing for the extended exercisability of all or a portion of the Option (regardless of whether then vested or exercisable) upon Retirement and this Section 9 are mutually
dependent and not severable, and the Participant acknowledges and agrees that the Company would not provide for the extended exercisability of the Option (regardless of whether then vested or exercisable) upon Retirement as provided for in
Section 4.A but for the Participant’s promises set out in and the enforceability of this Section 9. Accordingly, if Section 9 or any part of it is ever declared to be illegal, invalid, or otherwise unenforceable in any respect by
a court of competent jurisdiction, then the Participant agrees that (x) the Option shall immediately expire and cease to be exercisable (regardless of whether then vested or exercisable) and (y) with respect to any Option (or any part
thereof) that has been exercised, the Participant shall immediately pay to the Company the excess of the fair market value of the Common Stock associated with the exercise of the Option (or any part therof) at the time of exercise over the Exercise
Price; provided that if the scope of the restrictions in this Section 9 as to time, geography, or scope of activities are deemed by court of competent jurisdiction to exceed the limitations permitted by applicable law, the Participant and the
Company agree that the restrictions so deemed shall be, and are, automatically reformed to the maximum limitation permitted by such law. 

  

	10.	THE PLAN AND OTHER AGREEMENTS 

 In addition to these Terms and Conditions, the Option
shall be subject to the terms of the Plan, which are incorporated into these Standard Terms and Conditions by this reference. Capitalized terms not otherwise defined herein shall have the meaning set forth in the Plan. 

  
 7 

 The Grant Notice, these Standard Terms and Conditions and the Plan constitute the entire
understanding between the Participant and the Company regarding the Option. Any prior agreements, commitments or negotiations concerning the Option are superseded. 
  

	11.	LIMITATION OF INTEREST IN SHARES SUBJECT TO OPTION 

 Neither the Participant
(individually or as a member of a group) nor any beneficiary or other person claiming under or through the Participant shall have any right, title, interest, or privilege in or to any shares of Common Stock allocated or reserved for the purpose of
the Plan or subject to the Grant Notice or these Standard Terms and Conditions except as to such shares of Common Stock, if any, as shall have been issued to such person upon exercise of the Option or any part of it. Nothing in the Plan, in the
Grant Notice, these Standard Terms and Conditions or any other instrument executed pursuant to the Plan shall confer upon the Participant any right to continue in the Company’s employ or service nor limit in any way the Company’s right to
terminate the Participant’s employment at any time for any reason. 
  

	12.	GENERAL 

 Except as provided for in Section 9.E, in the event that any provision of
these Standard Terms and Conditions is declared to be illegal, invalid or otherwise unenforceable by a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal, valid and enforceable,
or otherwise deleted, and the remainder of these Standard Terms and Conditions shall not be affected except to the extent necessary to reform or delete such illegal, invalid or unenforceable provision. 

The headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a part of
these Standard Terms and Conditions, nor shall they affect its meaning, construction or effect. 
 These Standard Terms and Conditions shall
inure to the benefit of and be binding upon the parties hereto and their respective permitted heirs, beneficiaries, successors and assigns. 

These Standard Terms and Conditions shall be construed in accordance with and governed by the laws of the State of Delaware, without regard to
principles of conflicts of law. 
 All questions arising under the Plan or under these Standard Terms and Conditions shall be decided by the
Committee in its total and absolute discretion. 
  

	13.	ELECTRONIC DELIVERY 

 By executing the Grant Notice, the Participant hereby consents to
the delivery of information (including, without limitation, information required to be delivered to the Participant pursuant to applicable securities laws) regarding the Company and the Subsidiaries, the Plan, the Options and the Common Stock via
Company web site or other electronic delivery. 

  
 8 

	14.	DEFINITIONS 

 For purposes hereof, the following terms shall have the following meanings:

  

	 	A.	“Competitor” shall mean any person or entity that carries on business activities in competition with the activities of the Company, including but not limited to (i) suppliers of rotating equipment,
services and solutions for applications in the oil, gas, petrochemical and process industries including for oil and gas production; high-pressure gas injection, gas lift and other applications for enhanced oil recovery; natural gas production and
processing; gas liquefaction; gas gathering, transmission and storage; hydrogen, wet and coker gas, synthesis gas, carbon dioxide and other applications for the refining, fertilizer and petrochemical markets; (ii) several applications for the
armed forces; (iii) applications for general industrial markets such as paper, steel, sugar, and distributed and independent power generation; (iv) competing environmental solutions such as compressed air energy storage, combined heat and
power, air separation, bio fuels, and wave or wind energy or (v) servicing the Company’s installed base of equipment, and the installed base of the Company’s class of equipment of other suppliers through the provision of parts,
repairs, overhauls, operation and maintenance, upgrades, revamps, applied technology solutions, coatings, field services, technical support and other extended services. The term “Competitor” specifically includes but is not limited to the
centrifugal turbo and reciprocating compressor, steam and gas turbine, rotating machinery, related aftermarket parts and services (including repairs, revamps, re-rates, upgrades, applied technology, overhauls, remanufacturing, installation and
start-up) and other competing businesses of (x) GE Oil & Gas/Nuovo Pignone, Siemens (including TurboCare), Solar Turbines, Inc., Rolls-Royce Group plc, Elliott Company, General Electric, Alstom, Mitsubishi Heavy Industries, Hitachi,
MAN Turbo, Hickham USA, Sulzer Turbo Services, Wood Group, Burckhardt Compression, Neuman & Esser Group, Ariel Corp., Thomassen Mitsui & Co., Ltd., Ebara, Shin Nippon Machinery Co. Ltd., Caterpillar Inc., Solar, Hoerbiger, or, if
those corporate names are not formally correct, the businesses commonly referred to by those names; and (y) the successors to, assigns of, and affiliates of the persons or entities described in clause (x). 

 

	 	B.	“Confidential Information” shall mean, without limitation, all documents or information, in whatever form or medium, or consisting of knowledge or “know-how” whether or not recorded in any medium,
concerning or evidencing sales; costs; pricing; strategies; forecasts and long range plans; financial and tax information; personnel information (including without limitation compensation, other terms of employment, or performance other than as
concerns solely the Participant); business, marketing and operational projections, plans, and opportunities; and customer, vendor, and supplier information; but excluding any such information that is or becomes generally available to the public
other than as a result of any unauthorized disclosure or breach of duty by the Participant. 

  
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	 	C.	“Good Reason” shall mean the Participant’s resignation from employment from the Company or its successor within sixty (60) days following the occurrence of (i) a material reduction in the
Participant’s base salary; (ii) a material adverse change in the Participant’s responsibilities; or (iii) a required relocation of the Participant’s principal place of employment by more than fifty (50) miles from its
location as in effect immediately prior to the Change in Control; provided, that the Participant shall have provided written notice to the Company or its successor of his or her intention to resign for Good Reason and the grounds therefor within
thirty (30) days following the occurrence of the event constituting Good Reason, and the Company shall have failed to cure such event within thirty (30) days of receiving such notice. 

 

	 	D.	“Noncompetition Area” shall mean the following geographic areas to the extent the Participant’s duties and responsibilities for the Company take or took place anywhere in or are or were directed at any
part of: (i) any foreign country in which the Company has provided, sold, or installed its services, products, or systems or has definitive plans to provide, sell, or install its services, products, or systems during the Participant’s
employment by the Company; and (ii) any state or territory of the United States of America. 

  

	 	E.	“Restricted Activities” means: 

  

	 	1.	The Participant, whether on his or her own behalf or on behalf of any other individual, partnership, firm, corporation, or business organization, either directly or indirectly soliciting, inducing, persuading, or
enticing, or assisting another to solicit, induce, persuade, or entice, any person who is then employed by or otherwise engaged to perform services for the Company, or any person who at the time of the Participant’s conduct had been employed by
the Company within the previous 12 months, to leave that employment or cease performing those services; 

  

	 	2.	The Participant, whether on his or her own behalf or on behalf of any other individual, partnership, firm, corporation, or business organization, either directly or indirectly soliciting, inducing, persuading, or
enticing, or assisting another to solicit, induce, persuade, or entice, any person or entity who is then a customer, supplier, or vendor of the Company to cease being a customer, supplier, or vendor of the Company or to divert all or any part of
such person’s or entity’s business from the Company; and 

  

	 	3.	The Participant, whether on his or her own behalf or on behalf of any other individual, partnership, firm, corporation, or business organization, either directly or indirectly soliciting, inducing, persuading, or
enticing, or assisting another to solicit, induce, persuade, or entice, any person or entity who is a potential customer, supplier, or vendor of the Company, or at the time of the Participant’s employment was a potential customer, supplier, or
vendor of the Company within the previous 12 months, not to become a customer, supplier, or vendor of the Company or to divert all or any part of such person’s or entity’s business from the Company; and 

  
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	 	4.	The Participant’s association directly or indirectly, as an employee, officer, director, agent, partner, stockholder, owner, member, representative, financial contributor, or consultant, with any Competitor.

 With respect to the post-Retirement Restriction Period, the Restricted Activities in E.2 and E.3 extend only to a customer,
supplier, or vendor or prospective customer, supplier, or vendor with respect to whom or whose business the Participant has or had Confidential Information (including without limitation knowledge of or participation in a bid, proposal, or offer);
and the Restricted Activities in E.4 extend only to a (x) the performance by the Participant, directly or indirectly, of the same or similar activities the Participant performed for the Company prior to Retirement or such other activities that
by their nature are likely to lead to the disclosure of Confidential Information; and (y) that take place anywhere in, or are directed at any part of, the Noncompetition Area. The “Restricted Activities” do not extend to the
Participant’s investment in stock or other securities of a Competitor listed on a national securities exchange or actively traded in the over-the-counter market if he or she and the members of his or her immediate family do not, directly or
indirectly, hold more than a total of 5% of all such shares of stock or other securities issued and outstanding. 
  

	 	F.	“Restriction Period” shall mean the period of the Participant’s employment by the Company and continuing through the date that is three years after the Participant’s Retirement. 

 

	 	G.	“Retirement” shall mean the Participant’s voluntary termination of employment or other service from the Company after the Participant (i) has attained age sixty-two and completed at least ten years
of continuous service with the Company as of the date of termination or (ii) has attained age sixty-five and completed at least five years of continuous service with the Company as of the date of termination, and in either event with the
express intent not to engage in any of the Restricted Activities after termination, provided that the Participant has provided the Committee at least one year’s advance notice of such retirement. 

  
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	 	H.	“Serious Misconduct” shall mean the occurrence of any of the following: (i) the material failure or refusal by the Participant to perform his or her duties to the Company or its successor (including,
without limitation, the Participant’s inability to perform such duties as a result of alcohol or drug abuse, chronic alcoholism or drug addiction) or to devote substantially all of his or her business time, attention and energies to the
performance of his or her duties to the Company or its successor; (ii) any willful, intentional or grossly negligent act by the Participant having the effect of materially injuring the interest, business or prospects of the Company or its
successor or any of their Affiliates; (iii) the material violation or material failure by the Participant to comply with the Company’s or its successor’s material published rules, regulations or policies, as in effect from time to
time; (iv) the Participant’s conviction of a felony offense or conviction of a misdemeanor offense involving moral turpitude, fraud, theft or dishonesty; (v) any willful or intentional, misappropriation or embezzlement of the property
of the Company or its successor or any of their Affiliates (whether or not a misdemeanor or felony); or (vi) a material breach of Section 9 above by the Participant; provided, however, that in the event that the Company or its successor
determines to terminate the Participant’s employment pursuant to clauses (i), (iii) or (vi) of this definition of Serious Misconduct, such termination shall only become effective if the Company or its successor shall first give the
Participant written notice of such Serious Misconduct, which notice shall identify in reasonable detail the manner in which the Company or its successor believes Serious Misconduct to exist and indicates the steps required to cure such Serious
Misconduct, if curable, and the Participant shall fail within thirty (30) days of such notice to substantially remedy or correct the same. 

  
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