Document:

exv10w39

 

Exhibit 10.39

COOPER CAMERON CORPORATION

Restricted Stock Unit Award Agreement

Effective Date: January 1, 2006

Target Minimum: [ ] Units

Target Maximum: [ ] Units

Below Target Could Result in Zero Units Awarded

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

This Award covers the performance period from January 1, 2006 through December 31, 2006. This
Award is performance based and, as a result, the ultimate number of actual units earned under the
Award and the actual value of the Award will range between 0 and 200% of the target award, based on
the Company’s financial attainment under the annual Management Incentive Compensation Plan (“MICP”)
as determined on the date that the Compensation Committee of the Board of Directors approves the
attainments under the MICP.

     1. Effective Date and Issuance of Restricted Stock. The Company hereby grants to the
Participant, on the terms and conditions set forth herein, an award of Restricted Stock Units.
This Restricted Stock Unit Award is a commitment to issue one Share of Cooper Cameron common stock
(“Share”) for each share of restricted stock units actually earned. If Participant completes,
signs, and returns one copy of the Award Agreement to the Company in Houston, Texas, U.S.A., this
Award Agreement will become effective as of January 1, 2006.

     2. Terms Subject to the Plan. This Award Agreement is expressly subject to the terms
and provisions of the Company’s Equity Incentive Plan (the “Plan”), as indicated in the Notice of
Grant of Award. A copy of the Plan is available upon request from the Corporate Secretary’s
office. In the event there is a conflict between the terms of the Plan and this Award Agreement,
the terms of the Plan shall control.

     3. Vesting Requirement. The Award shall become vested in three installments as
follows: 12.5% on February 28, 2007, 12.5% on February 28, 2008 and, 75% on February 28, 2009
(each a “Vesting Date”), provided the Participant remains continuously employed by the Company or a
subsidiary from the date hereof until each such Vesting Date. If this service requirement is not
satisfied, the Award (or remaining unvested portion thereof) shall be immediately forfeited and no
Shares (or not more Shares) will be delivered. All Restricted Stock Units as to which the vesting
requirements of this Section 3 have been satisfied shall be payable in accordance with Section 5
hereof and Appendix A attached hereto.

 

 

     4.Termination of Employment.

     Notwithstanding the foregoing:

     (a) If the Participant’s employment voluntarily terminates at age 60 or older for reasons
other than cause, and the Participant has at least ten years of service with the Company, any
unvested Restricted Stock Units (RSU) shall continue to vest according to the terms of the RSU
Award; except that if such termination occurs within one year from the effective date of the Award,
the number of RSUs that will continue to vest shall be reduced to be proportionate to that portion
of the year between such effective date and the date of termination. The balance of the Award shall
be immediately cancelled.

     (b) If the Participant’s employment terminates by reason of the death or long-term disability
(as defined in Company plans) of the Participant, the Award shall be immediately vested and payable
in full as of the date of death or the date of such termination; except that if such death or
termination occurs within one year from the effective date of the Award, the number of RSUs that
will vest in full shall be reduced to be proportionate to that portion of the year between the
effective date of the Award and the date of death or long-term disability. The balance of the Award
shall be immediately cancelled.

     (c) If the Participant’s employment terminates by reason of a workforce reduction, the Award
shall be immediately vested and payable in full as of the date of such termination; except that if
such termination occurs within one year from the effective date of the Award, the number of RSUs
that will vest in full shall be reduced to be proportionate to that portion of the year between
such effective date and the date of termination. The balance of the Award shall be immediately
cancelled.

     (d) If the Participant’s employment terminates for reasons other than for those addressed in
the previous three subsections, no additional RSUs shall vest for the benefit of the Participant
after the termination date.

     5. Change of Control.

     (a) Except as provided by Section 11.2 of the Plan, upon a “Change of Control” of the Company,
the Award granted hereunder shall immediately and fully vest.

     (b) “Change of Control” for the purposes of this Award, shall mean the earliest date on which:

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

	(ii)	 	individuals who constitute the Board on the date hereof (the “Incumbent Board”) cease for any
reason to constitute at least a majority thereof, provided that any person becoming a director
subsequent to the date hereof whose election, or nomination for election by the Company’s
shareholders, was approved by a vote

 

 

	 	 	of at least two-thirds of the directors comprising the
Incumbent Board shall from and after such election be deemed to be a member of the Incumbent
Board; or

	(iii)	 	a merger or consolidation involving the Company or its stock, or an acquisition by the
Company, directly or indirectly or through one or more subsidiaries, of another entity or its
stock or assets in exchange for the stock of the Company unless, immediately following such
transaction less than 50% of the then outstanding voting securities of the surviving or
resulting corporation or entity will be (or is) then beneficially owned, directly or
indirectly, by all or substantially of the individuals and entities who were the beneficial
owners of the Company’s outstanding voting securities immediately prior to such transaction
(treating, for purposes of determining whether the 50% continuity test is met, any ownership
of the voting securities of the surviving or resulting corporation or entity that results from
a stockholder’s ownership of the stock of, or their ownership interest in, the corporation or
other entity with which the Company is merged or consolidated as not owned by persons who were
beneficial owners of the Company’s outstanding voting securities immediately prior to the
transaction).

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

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

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

     6. Payment of Award. Payment of vested Restricted Stock Units shall be made within 30
days following the satisfaction of the vesting requirement under Section 3 hereof for each
respective Vesting Date (or following any accelerated vesting under Section 4 hereof). The Shares
which the Award entitles the Participant to receive shall be paid to the Participant, after
deduction of the number of Shares the Fair Market
Value, as defined in the Plan, of which equals the applicable minimum statutory withholding taxes.

     7. Restrictions on Transfer. Except as provided by the Plan, neither this Restricted
Stock Unit Award nor any Restricted Stock Units covered hereby may be

 

 

sold, assigned, transferred,
encumbered, hypothecated or pledged by the Participant, other than to the Company as a result of
forfeiture of the units as provided herein.

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

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

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

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

     (b) “Detrimental Activity” for the purposes hereof, other than with respect to involuntary
termination without cause, termination in connection with or as a result of a “Change of Control”
(as defined in Section 10(b) hereof), or termination following a reduction in job responsibilities,
shall include: (i) rendering of services for any person or organization, or engaging directly or
indirectly in any business, which is or becomes competitive with the Company; (ii) disclosing to
anyone outside the Company, or using in other than the Company’s business, without prior written
authorization from the Company, any confidential information including material relating to the
business, products or services of the Company acquired by the Optionee during employment with the
Company; (iii) soliciting, interfering, inducing, or attempting to cause any employee of the
Company to leave his or her employment, whether done on Optionee’s own account or on account of any
person, organization or business which is or becomes
competitive with the Company, or (iv) directly or indirectly soliciting the trade or business
of any customer of the Company. “Detrimental Activity” for the purposes hereof with respect to
involuntary termination without cause, termination in connection with or as a result of a “Change
of Control”, or termination following a reduction in job responsibilities, shall include only part
(ii) of the preceding sentence.

 

 

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

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

     Notices to the Company should be addressed to:

Cooper Cameron Corporation

1333 West Loop South, Suite 1700

Houston, Texas 77027

Attention: Corporate Secretary

Telephone: 713-513-3322

     13. Tax Withholding. Participant agrees that as a condition to the payment of the
Award hereunder, any Shares issued under this Award shall be reduced by the number of Shares of the
Fair Market Value of which equals the amounts required to be withheld or paid with respect thereto
under all applicable federal, state and local taxes and other laws and regulations that may be in
effect as of the date of each such payment (“Tax Amounts”.)exv10w41

 

Exhibit 10.41

COOPER CAMERON CORPORATION

DEFERRED COMPENSATION PLAN

FOR NON-EMPLOYEE DIRECTORS

     1. Definitions.

     (a) “Account” means the account maintained on the books of the Company pursuant to Section 4
for the Director Compensation deferred by each Participant for a Plan Year. Separate Accounts
shall be maintained for each Participant for the Director Compensation deferred for each Plan Year.

     (b) “Beneficiary” means the beneficiary or beneficiaries of the Participant designated
pursuant to Section 6.

     (c) “Board means the Board of Directors of the Company.

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

     (e) “Committee” means the Compensation Committee of the Board.

     (f) “Company” means Cooper Cameron Corporation, a Delaware corporation.

     (g) “Director” means any member of the Board who is not an employee of the Company or any of
its subsidiaries.

     (h) “Director Compensation” means the cash compensation to which the Participant is entitled
as a retainer as a member of the Board or as the Chair of a committee of the Board.

     (i) “Effective Date” means January 1, 2006.

     (j) “Investment Funds” means the investment funds under the Savings Plan (including the Stock
Fund), except as otherwise determined by the Committee.

     (k) “Investment Fund Accounts” means the sub-Accounts maintained under the Plan to which
deferred compensation is credited pursuant to Section 4, to reflect equivalent investment
performance of the Investment Funds.

     (l) “Participant” means a Director who elects to participate in this Plan as provided in
Section 3.

     (m) “Plan” means the Cooper Cameron Corporation Deferred Compensation Plan for Non-Employee
Directors as set for the herein and as amended from time to time.

     (n) “Plan Year” means the calendar year.

 

 

     (o) “Savings Plan” means the Cooper Cameron Corporation Retirement Savings Plan.

     (p) “Shares” means the shares of common stock of the Company, par value $.01 per share.

     (q) “Stock Fund” means the Cooper Cameron Stock Fund under the Savings Plan.

     2. Administration.

     (a) The Plan shall be administered by the Committee. The Committee shall have the authority
to make, amend, interpret, and enforce all appropriate rules and regulations for the administration
of the Plan and decide any and all questions as may arise in connection with the interpretation or
application of the Plan.

     (b) The decision or action of the Committee in respect to any question arising out of or in
connection with the administration, interpretation and application or the Plan and the rules and
regulations promulgated hereunder shall be final, conclusive and binding upon Participants and all
other persons having or claiming any interest in the Plan.

     3. Participation.

     (a) A Director may elect to participate in the Plan by filing a written election with the
Company, on such form as may be prescribed by the Committee, to defer 25%, 50%, 75% or 100% of his
or her Director Compensation.

     (b) A deferral election shall become effective on the first day of the Plan Year following the
date the election is made, except as provided in paragraph (c) of this Section. A deferral
election for a Participant shall remain effective for each subsequent Plan Year unless the
Participant files another election in which the Participant elects to cease deferring Director
Compensation or to change the percentage of Director Compensation which is deferred. The new
deferral election shall become effective on the first day of the Plan Year following the date the
election is made.

     (c) An individual who become a Director after the Effective Date may make a deferral election
within 30 days after becoming a Director. For the Plan Year in which the election is made it shall
be effective only with respect to Director Compensation earned during the Plan Year after the date
such election is made.

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     4. Accounts.

     (a) The Director Compensation for a Plan Year that is deferred by a Participant pursuant to a
deferral election shall be credited to the Participant’s Account and shall be allocated in
multiples of 25%, in accordance with the Participant’s deferral election, among the Investment Fund
Accounts maintained for the Participant as if invested in the applicable Investment Fund as of the
business day on which such Director Compensation would have otherwise been paid.

     (b) A Participant may transfer the balance credited to each Investment Fund Account once each
calendar quarter, to one or more of the other Investment Fund Accounts, in multiples of 25%. Such
transfer shall be made by filing a written election with the Company in accordance with rules
prescribed by the Committee. In no event may a transfer be made that would violate the provisions
of Section 16 of the Securities Exchange Act of 1934, as amended.

     (c) The balance credited to a Participant’s Investment Fund Accounts shall be adjusted from
time to time to reflect the equivalent investment performance of the applicable Investment Fund.

     5. Payment of Deferred Compensation.

     (a) Election of Payment Event. Payment of the Account of a Participant for Director
Compensation deferred for a Plan Year shall be made or commenced in the form elected by the
Participant (pursuant to paragraph (b) of this Section) at one of the times set forth below in
accordance with the Participant’s written election (on such form as prescribed by the Committee)
filed with the Company prior to the beginning of such Plan Year:

     (i) The date specified by the Participant;

     (ii) In the month following the Participant’s termination of service as a Director;

     (iii) The earlier of (A) the date elected by the Participant or (B) in the month following
the Participant’s termination of service as a Director; or

     (iv) The later of (A) the date elected by the Participant or (B) in the month following
the Participant’s termination of service as a Director.

The written election of the time of payment of Director Compensation that is deferred pursuant to
paragraph (c) of Section 3 must be filed by the Participant within 30 days after becoming a
Director.

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The Participant may change the time when payment of an Account will be made or commenced by filing
a written election with the Company, on such form as prescribed by the Committee; provided,
however, that:

     (i) The election will not take effect for at least 12 months after the date on which it
is made as required by Section 409A of the Code (i.e., the election must be made at least 12
months in advance; and

     (ii) The new payment time must be at least five years after the date it would have
otherwise been made.

     (b) Form of Payment. Payment of the Participant’s Account for Director Compensation
deferred for a Plan Year shall be made in cash equal to the value of the Participant’s Investment
Fund Accounts as of the business day preceding the date payment is to be made, except that payments
with respect to the Investment Fund Account based on the Stock Fund shall be made in cash or Shares
as elected by the Participant. Payment shall be made in either a lump sum or substantially equal
annual installments over a period not to exceed ten years, as elected by the Participant in writing
on such form as prescribed by the Committee and filed with the Company prior to the beginning of
such Plan Year. The written election of a lump sum or installments of Director Compensation that
is deferred pursuant to paragraph (c) of Section 3 must be filed by the Participant within 30 days
after becoming a Director.

     The Participant may change whether payment of an Account will be made in a lump sum or
installments by filing a written election with the Company, on such form as prescribed by the
Committee; provided, however, that:

     (i) The election will not take effect for at least 12 months after the date on which it
is made as required by Section 409A of the Code (i.e., the election must be made at least 12
months in advance); and

     (ii) The new payment time will be five years after the date it would have otherwise been
made.

     (c) Change in Control; Death. Notwithstanding anything contained herein to the
contrary, in the event of a Change of Control (as defined in Appendix A) or the death of the
Participant, regardless of an election or change in election by the Participant of the applicable
payment time or form of payment:

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     (i) If such event occurs prior to the time elected by the Participant pursuant to
paragraph (a) of this Section, a lump sum payment of the Participant’s Accounts shall be made
to the Participant (to the Participant’s Beneficiary in the event of the Participant’s death)
within 30 days following the Change of Control or the Participant’s death; and

     (ii) If such event occurs following the time elected by the Participant pursuant to
paragraph (a) of this Section, a lump sum payment of the remaining portion of the Participant’s
Accounts, if any, shall be made to the Participant (to the Participant’s Beneficiary in the
event of the Participant’s death) within 30 days following the Change of Control or the
Participant’s death.

     6. Beneficiary Designation. Each Participant shall have the right, at any time, to
designate any person or persons as his beneficiary or beneficiaries to whom payment of the
Participant’s Accounts shall be made in the event of the death of the Participant. Any beneficiary
designation may be made or changed by a Participant by a written instrument in such form prescribed
by the Committee which is filed with the Company prior to the Participant’s death. If a
Participant fails to designate a beneficiary, or if all designated beneficiaries predecease the
Participant, then any amounts otherwise payable to the Participant’s beneficiary shall be paid to
the Participant’s estate.

     7. Amendment and Termination of Plan.

     (a) The Board may at any time amend the Plan in whole or in part, provided that no amendment
shall adversely affect the rights of a Participant to receive payment of the amount credited to the
Participant’s Accounts as of the date of the amendment in accordance with the terms of the Plan in
effects prior to such amendment, except as may be required to comply with Section 409A of the Code
and regulations and other guidance issued thereunder.

     (b) The Board may, in its sole discretion, terminate the Plan at any time; provided, however,
that in such event payment shall be made in accordance with the last election made by the
Participant pursuant to section 5 prior to the Plan’s termination.

     8. Miscellaneous.

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     (a) The Company’s obligation to make payments under the Plan shall be contractual only and all
payments hereunder shall be made by the Company from its general assets at the time and in the
manner provided for in the Plan.

     (b) Neither a Participant nor any other person shall have any right to sell, assign, transfer,
pledge, anticipate, or otherwise encumber, the amounts, if any, payable hereunder, to the
Participant or such other person. No part of the amounts payable under the Plan shall be subject
to seizure or sequestration for the payment of any debts, judgments, alimony or separate
maintenance owned by a Participant or any other person, nor be transferable by operation or law in
the event of a Participant’s or any other person’s bankruptcy or insolvency.

     (c) This Plan shall be governed by the laws of the State of Delaware, without references to
principles of conflict of laws, and shall be construed accordingly.

     (d) This Plan is intended to comply and shall be administered in a manner that is intended to
comply with Section 409A of the Code and shall be construed and interpreted in accordance with such
intent. Payment under this Plan shall be made in a manner that will comply with Section 409A of
the Code, including regulations or other guidance issued with respect thereto. Any provision of
this Plan that would cause the payment or settlement thereof to fail to satisfy Section 409A of the
Code shall be amended to comply with Section 409A of the Code on a timely basis, which may be made
on a retroactive basis, in accordance with regulations and other guidance issued under Section 409A
of the Code.

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Appendix A

     “Change of Control” means and shall be deemed to have occurred as of the date of the first to
occur of the following events:

     (a) Any Person or Group acquires stock of the Company that, together with stock held by such
Person or Group, constitutes more than 50% of the total fair market value or total voting power of
the stock of the Company. However, if any Person or Group is considered to own more than 50% of
the total fair market value or total voting power of the stock of the Company, the acquisition of
additional stock by the same Person or Group is not considered to cause a Change in Control. An
increase in the percentage of stock owned by any Person or Group as a result of a transaction in
which the Company acquires its stock in exchange for property will be treated as an acquisition of
stock for purposes of this subsection. This subsection applies only when there is a transfer of
stock of the Company (or issuance of stock of the Company) and stock in the Company remains
outstanding after the transaction;

     (b) Any Person or Group acquires (or has acquired during the 12-month period ending on the
date of the most recent acquisition by such Person or Group) ownership of stock of the Company
possessing 35% or more of the total voting power of the stock of the Company. However, if any
Person or Group is considered to own 35% of the total voting power of the stock of the Company, the
acquisition of additional stock by the same Person or Group is not considered to cause a Change in
Control;

     (c) A majority of members of the Company’s Board is replaced during any 12-month period by
Directors whose appointment or election is not endorsed by a majority of the members of the
Company’s Board prior to the date of the appointment or election; or

     (d) Any Person or Group acquires (or has acquired during the 12-month period ending on the
date of the most recent acquisition by such Person or Group) assets from the Company that have a
total gross fair market value equal to or more than 40% of the total gross fair market value of all
of the assets of the Company immediately prior to such acquisition or acquisitions. For this
purpose, gross fair market value means the value of the assets of the Company, or the value of the
assets being disposed of, determined without regard to any liabilities associated with such assets.
However, no Change in Control shall be deemed to occur under this subsection (d) as a result of a
transfer to:

     (i) A shareholder of the Company (immediately before the asset transfer) in exchange for or
with respect to its stock;

     (ii) An entity, 50% or more of the total value or voting power of which is owned, directly
or indirectly, by the Company;

     (iii) A Person or Group that owns, directly or indirectly, 50% or more of the total value
or voting power of all the outstanding stock of the Company; or

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     (iv) An entity, at least 50% of the total value or voting power of which is owned, directly
or indirectly, by a person described in clause (iii) above.

     For these purposes, the term “Person” shall mean an individual, Company, association, joint
stock company, business trust or other similar organization, partnership, limited liability
company, joint venture, trust, unincorporated organization or government or agency, instrumentality
or political subdivision thereof. The term “Group” shall have the meaning set forth in Rule13d-5
of the Securities Exchange Commission, modified to the extent necessary to comply with Proposed
Treasury Regulation Section 1.409A-3(g)(5)(v)(B), or any successor thereto in effect at the time a
determination of whether a Change of Control has occurred is being made.

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