Document:

EX-10.4

 Exhibit 10.4 

DRESSER-RAND GROUP INC. 

STANDARD TERMS AND CONDITIONS FOR 

PERFORMANCE RESTRICTED STOCK UNITS 
 These
Standard Terms and Conditions apply to any Award of performance restricted stock units granted to an employee of the Company under the Dresser-Rand Group Inc. 2008 Stock Incentive Plan (the “Plan”), on or after January 1, 2014, which
are evidenced by a Grant Notice or an action of the Committee that specifically refers to these Standard Terms and Conditions. Grantee must formally accept the Award in the manner specified in the applicable Grant Notice within 90 days
following the Grant Date specified in the Grant Notice; if Grantee fails to do so, the Award will be forfeited and Grantee will have no further rights with respect to the Award. 

 

	1.	TERMS OF PERFORMANCE RESTRICTED STOCK UNITS 

  

	 	A.	Dresser-Rand Group Inc., a Delaware corporation (the “Company”), has granted to the Grantee named in the Grant Notice provided to said Grantee herewith (the “Grant Notice”) an award of a number of
performance restricted stock units (the “Award” or the “Performance RSUs”) specified in the Grant Notice. Each Performance RSU represents the right to receive one share of the Company’s Common Shares, $0.01 par value per
share (the “Common Shares”) upon the terms and subject to the conditions set forth in the Grant Notice, these Standard Terms and Conditions, and the Plan, each as amended from time to time. For purposes of these Standard Terms and
Conditions and the Grant Notice, any reference to the Company shall, unless the context requires otherwise, include a reference to any Affiliate, as such term is defined in the Plan. 

 

	 	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.	VESTING OF PERFORMANCE RESTRICTED STOCK UNITS 

 The Award shall not be vested as of the Grant
Date set forth in the Grant Notice and shall be forfeitable unless and until otherwise vested pursuant to the terms of these Standard Terms and Conditions. After the Grant Date, subject to termination or acceleration as provided in these Standard
Terms and Conditions and the Plan, the Award shall become vested as described in this Section 2 with respect to that number of Performance RSUs as described in this Section 2. The Award shall vest as follows on each of the following
“Vesting Dates”: 
 Portion of Award Vesting February 15, 2015 

 

			
	Company’s Relative TSR for period from January 1, 2014 through December 31, 2014	  	Portion of Target Award Vesting (subject to adjustment by interpolation for performance within Threshold, Target and Maximum)*

			
	Below 25th Percentile Relative to Peer Group	  	0% (provided that, if the Annualized Absolute TSR of the Company’s Common Shares for the 2014 Period is greater than 20%, 33.33% shall vest)
		
	At least 25th Percentile But Below 50th Percentile of Peer Group (“Threshold”)*	  	16.67% (provided that, if the Annualized Absolute TSR of the Company’s Common Shares for the 2014 Period is greater than 20%, 33.33% shall vest)
		
	At least 50th Percentile But Below 75th Percentile of Peer Group (“Target”)*	  	33.33%
		
	At or above 75th Percentile of Peer Group (“Maximum”)*	  	66.67% (provided that, if the Annualized Absolute TSR of the Company’s Common Shares for the 2014 Period is negative, 33.33% shall vest)

 Portion of Award Vesting February 15, 2016 

 

			
	Company’s Relative TSR for period from January 1, 2014 through December 31, 2015	  	Portion of Target Award Vesting (subject to adjustment by interpolation for performance within Threshold, Target and Maximum)*
		
	Below 25th Percentile Relative to Peer Group	  	0% (provided that, if the Annualized Absolute TSR of the Company’s Common Shares for the 2014-15 Period is greater than 20%, 33.33% shall vest)
		
	At least 25th Percentile But Below 50th Percentile of Peer Group (“Threshold”)* 	  	16.67% (provided that, if the Annualized Absolute TSR of the Company’s Common Shares for the 2014-15 Period is greater than 20%, 33.33% shall vest)
		
	At least 50th Percentile But Below 75th Percentile of Peer Group (“Target”)*	  	33.33%
		
	At or above 75th Percentile of Peer Group (“Maximum”)*	  	66.67% (provided that, if the Annualized Absolute TSR of the Company’s Common Shares for the 2014-15 Period is negative, 33.33% shall vest)

  
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 Portion of Award Vesting February 15, 2017 

 

			
	Company’s Relative TSR for period from January 1, 2014 through December 31, 2016	  	Portion of Target Award Vesting (subject to adjustment by interpolation for performance within Threshold, Target and Maximum)*
		
	Below 25th Percentile Relative to Peer Group	  	0% (provided that, if the Annualized Absolute TSR of the Company’s Common Shares for the 2014-16 Period is greater than 20%, 33.33% shall vest)
		
	At least 25th Percentile But Below 50th Percentile of Peer Group (“Threshold”)* 	  	16.67% (provided that, if the Annualized Absolute TSR of the Company’s Common Shares for the 2014-16 Period is greater than 20%, 33.33% shall vest)
		
	At least 50th Percentile But Below 75th Percentile of Peer Group (“Target”)*	  	33.33%
		
	At or above 75th Percentile of Peer Group (“Maximum”)*	  	66.67% (provided that, if the Annualized Absolute TSR of the Company’s Common Shares for the 2014-16 Period is negative, 33.33% shall vest)

  

	 	*	The portion of the Target Award that vests on a Vesting Date shall be calculated by straight-line interpolation for results achieved between Threshold and Target, or for results achieved between Target and Maximum
(provided that, (A) if the Annualized Absolute TSR of the Company’s Common Shares is greater than 20% for the Applicable Period, no less than 33.33% shall vest in any circumstance and (B) if the Annualized Absolute TSR of the Company’s
Common Shares for the Applicable Period is negative, no more than 33.33% shall vest in any circumstance). For example, if the Company’s Relative TSR for an Applicable Period is at 37.5% (halfway between the 25th Percentile and the 50th
Percentile) and the Annualized Absolute TSR for the Applicable Period is 20% or less, the portion of the Target Award that would vest for that period would be 25% (halfway between 16.67% and 33.33%). 

For purposes hereof: 
  

	 	•	 	“Company’s Relative TSR” means the ranking of the TSR of the Company’s Common Shares for the Applicable Period, on a percentile basis, compared to the TSRs of the common shares of the Peer Group for
such Applicable Period. 

  
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	 	•	 	“TSR” for each Applicable Period means the percentage change in the Average Stock Price of a Common Share (or, for each member of the Peer Group, a share of the class of common stock most widely traded) from
January 1, 2014 through the last day of the Applicable Period (or, in the event of death or Disability, the date of such death or Disability). For this purpose, any dividends paid between January 1, 2014, and the last day of the Applicable Period
(or, in the event of death or Disability, the date of such death or Disability) with respect to a Common Share (or for each member of the Peer Group, a share of the class of common stock most widely traded) shall be included so as to reflect the
cumulative rate of return utilizing price appreciation plus reinvestment of dividends so that they are reflected as an increase in such Average Stock Price. In addition, TSR shall be appropriately adjusted by the Compensation Committee to reflect
stock splits, stock dividends, and similar events with respect to the Common Shares (or, as applicable, the class of common stock taken into account in determining the TSR of a member of the Peer Group). 

 

	 	•	 	“Absolute TSR” means the percentage change in the Average Stock Price of a Common Share for the Applicable Period, determined in each case using the same principles as specified in the definition of TSR.

  

	 	•	 	“Applicable Period” means each of the following performance periods: (i) January 1, 2014 through December 31, 2014 (the “2014 Period”); (ii) January 1, 2014 through December 31, 2015 (the
“2014-15 Period”); and (iii) January 1, 2014 through December 31, 2016 (the “2014-16 Period”); provided that, in the event the Grantee’s separation from service is due to death or Disability, the Applicable Period shall run
from January 1, 2014 through the date of such death or Disability. 

  

	 	•	 	“Annualized Absolute TSR” means (i) (A) 1 plus the Absolute TSR for the Applicable Period raised to the power (B) 1 divided by the number of years in the Applicable Period, minus (ii) 1. For purposes
of determining the number of years in the Applicable Period, partial years shall be rounded to the nearest one-one hundredth. For example, if a grantee’s death or Disability occurred on July 1, 2015, the number of years in the Applicable
Period would be 1.5. 

  

	 	•	 	“Peer Group” means the companies listed on Exhibit A. If a member of the Peer Group is acquired or is otherwise a party to a corporate transaction and no longer exists as a separate entity, or if its common
stock is delisted, the TSR of the Peer Group will be determined for remaining performance periods retroactively to January 1, 2014, without such former Peer Group member. 

 

	 	•	 	“Average Stock Price” means the average closing price of the Common Shares (or for each member of the Peer Group, the class of common stock most widely traded) for the 30 calendar days immediately preceding
January 1, 2014 or, as applicable, the last day of the Applicable Period (or, in the event of death or Disability, the date of such death or Disability). 

Notwithstanding anything contained in these Standard Terms and Conditions to the contrary: 

 

	 	(i)	if the Grantee’s separation from service is due to death or Disability before December 31, 2016, the Award shall vest with respect to any uncompleted calendar years in the same manner as specified above, but using
the Company’s Relative TSR and Annualized Absolute TSR through the date of death or Disability, rather than through the end of the Applicable Period(s); 

  
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	 	(ii)	subject to Section 9, if the Grantee’s separation from service is due to the Grantee’s Retirement (as defined in Section 18.H below): 

 

	 	(x)	on a date that is less than twelve (12) months after the Grant Date, only a pro-rata portion of the Award shall continue to vest under the schedule described in the Grant Notice and this Section 2, and the
remaining portion of the Award shall be forfeited and canceled as of the date of such Retirement; or 

  

	 	(y)	on a date that is twelve (12) or more months after the Grant Date, the Award shall continue to vest under the schedule described in the Grant Notice and this Section 2; and 

 

	 	(iii)	if the Grantee’s separation from service is for any reason other than Retirement, death or Disability, any then-unvested portion of the Award held by the Grantee shall be forfeited and canceled as of the date of
such separation from service. 

 For purposes of this Section 2, a “pro-rata portion” means a number of
Performance RSUs, rounded down to the nearest whole number, calculated by multiplying the Award by a fraction, where the numerator is the number of calendar days between the Grant Date and the date of the Grantee’s Retirement, and the
denominator is 365. 
  

	3.	SETTLEMENT OF PERFORMANCE RESTRICTED STOCK UNITS 

 Vested Performance RSUs shall be settled by
the delivery to the Grantee or a designated brokerage firm of one Common Share per vested Performance RSU following each performance period or as soon as reasonably practicable thereafter (but in no event later than the March 15th following the performance period); provided that in the event the Grantee’s separation from service is due to death or Disability, such settlement shall occur as soon as reasonably practicable
following the date of death or Disability (and in no event later than two and one-half months following the date of death or Disability). 
  

	4.	RIGHTS AS STOCKHOLDER 

 The Grantee shall have no voting rights or the right to receive any
dividends with respect to Common Shares underlying Performance RSUs unless and until such Common Shares are reflected as issued and outstanding shares on the Company’s stock ledger. 

  
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	5.	CHANGE IN CONTROL 

 If there is a Change in Control, unless otherwise provided in an employment,
severance or other agreement between the Company and the Grantee that specifically addresses the treatment of performance-based equity awards (and not just the treatment of restricted stock units or other equity awards generally), a number of such
Performance RSUs shall be calculated based on actual performance goal attainment through the date of the Change in Control, as determined by the Committee in its discretion (the “Earned PSUs”), and any such Performance RSUs that are not
determined as having been achieved based on actual performance pursuant to this Section 5 shall be forfeited. The Earned PSUs shall be treated as follows: 
  

	 	A.	If the Earned PSUs are not continued, assumed or substituted by the Grantee’s employer (or an Affiliate of such employer) that engages the Grantee immediately following the Change in Control, the Earned PSUs shall
fully vest upon the occurrence of the Change in Control. For each Earned PSU, the Grantee shall receive (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, (ii) common stock of the successor to the Company with a value equal to the Change in Control Price, or (iii) cash equal to the Change in Control Price, as determined by
the Committee in its discretion. 

  

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

 For purposes hereof, the Earned
PSUs shall be considered “assumed” if, following the Change in Control, the Earned PSUs confer the right to receive, for each share of Common Stock subject to the Earned PSU 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, 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). The Earned PSUs will be considered “substituted for” if the successor or acquiror replaces the Earned PSUs 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). 
 In all events, any action under this Section 5 shall comply with the applicable
requirements of Section 409A of the Code (such that, for the avoidance of doubt, no action shall be taken by the Committee pursuant to this Section 5 that would violate the requirements of Section 409A of the Code). 

 

	6.	RESTRICTIONS ON RESALES OF SHARES 

 The Company may impose such restrictions, conditions or
limitations as it determines appropriate as to the timing and manner of any resales by the Grantee or other subsequent transfers by the Grantee of any Common Shares issued in respect of vested Performance RSUs, 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 Grantee and other holders and (c) restrictions as to the use of a specified brokerage firm for
such resales or other transfers. 

  
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	7.	INCOME TAXES 

 The Company shall not deliver shares in respect of any Performance RSUs unless
and until the Grantee 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 Shares issuable in
connection with the delivery of the Performance RSUs. The Grantee acknowledges that the Company shall have the right to deduct any taxes required to be withheld by law in connection with the delivery of the Performance RSUs from any amounts payable
by it to the Grantee (including, without limitation, future cash wages). 
  

	8.	NON-TRANSFERABILITY OF AWARD 

 The Grantee represents and warrants that the Performance RSUs are
being acquired by the Grantee solely for the Grantee’s own account for investment and not with a view to or for sale in connection with any distribution thereof. The Grantee further understands, acknowledges and agrees that, except as otherwise
provided in the Plan, the Performance RSUs may not be sold, assigned, transferred, pledged or otherwise directly or indirectly encumbered or disposed of except to the extent expressly permitted hereby and at all times in compliance with the U.S.
Securities Act of 1933, as amended, and the rules and regulations of the Securities Exchange Commission thereunder, and in compliance with applicable state securities or “blue sky” laws and non-U.S. securities laws. Unless permitted by the
Committee, the Performance RSUs may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated by the Grantee other than by will or the laws of descent and distribution. 

 

	9.	RESTRICTED ACTIVITIES 

 This Section 9 applies if the Grantee’s separation from
service is due to the Grantee’s Retirement and, as a result, all or a portion of the Performance RSUs vest pursuant to Section 2(ii). 
  

	 	A.	By accepting the Performance RSU, the Grantee 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 18.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 Grantee’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 Grantee’s notice to the Committee of the Grantee’s Retirement and the date of the Grantee’s Retirement (the “Transition
Period”), the Grantee 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
Grantee’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 Grantee 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 Grantee 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 Grantee’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 Grantee 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 Grantee represents that he or she will not engage in the Restricted Activities; (xi) the Company is
relying on such representation in providing the Grantee 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 (xi) absent the Grantee’s agreement to this Section 9, the Company would not authorize the Grantee 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 continued vesting of the Performance RSU upon Retirement as provided for in Section 2. 

  
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	 	B.	The Company, by granting the Performance RSU, and the Grantee, by accepting the Performance RSU, thus acknowledge and agree that during the remaining term of the Grantee’s employment with the Company, including the
Transition Period, the Grantee (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. 

 

	 	C.	Accordingly, in consideration of the promises of the Company set out in Section 9.B, the Performance RSU, and the continued vesting of all or a portion of the Performance RSU upon Retirement as provided for in
Section 2, the Grantee agrees that: 

  

	 	1.	He or she will not engage in any of the Restricted Activities (as defined in Section 18.F below) during the Restriction Period (as defined in Section 18.G below); 

  
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	 	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 Performance
RSUs held by the Grantee that have not been settled shall immediately be forfeited and canceled (regardless of whether then vested or unvested) and (y) with respect to any Performance RSUs that have been settled, the Grantee shall immediately
pay to the Company the fair market value of the Shares associated with the settlement of the Performance RSUs at the time of vesting; 

  

	 	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 Grantee 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 Grantee’s obligations under this Section 9, but shall be in addition to
all other remedies available to the Company at law or equity. 

  

	 	D.	By accepting the Performance RSU, the Grantee 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 Performance RSU, and the continued vesting of all or a portion of the Performance RSU upon Retirement as provided for in Section 2; (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 Grantee’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 Grantee’s post-Retirement activities; (iii) such restrictions are designed to enforce the Grantee’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 Grantee’s agreement to this Section 9, the Company would not authorize the Grantee 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 continued vesting of the Performance RSU upon
Retirement as provided for in Section 2. 

  
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	 	E.	The provisions of Section 2 providing for the continued vesting of all or a portion of the Performance RSU upon Retirement and this Section 9 are mutually dependent and not severable, and the Grantee
acknowledges and agrees that the Company would not provide for the continued vesting of the Performance RSU upon Retirement as provided for in Section 2 but for the Grantee’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 Grantee agrees that (x) the Performance RSUs held
by the Grantee that have not been settled shall immediately be forfeited and canceled (regardless of whether then vested or unvested) and (y) with respect to any Performance RSUs that have been settled, the Grantee shall immediately pay to the
Company the fair market value of the Shares associated with the settlement of the Performance RSUs at the time of vesting; 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 Grantee 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 Award shall be
subject to the terms of the Plan, which are incorporated into these Standard Terms and Conditions by this reference. Certain capitalized terms not otherwise defined herein are defined in the Plan. In the event of a conflict between the terms and
conditions of these Standard Terms and Condition and the Plan, the Plan controls. 
 Subject to the next paragraph, the Grant Notice, these
Standard Terms and Conditions and the Plan constitute the entire understanding between the Grantee and the Company regarding the Award, and any prior agreements, commitments or negotiations concerning the Award are superseded. 

The Award (including the terms described herein) are subject to the provisions of the Plan and, if the Grantee is outside the U.S., there may
be an addendum containing special terms and conditions applicable to grants in the Grantee’s country. The grant of the Performance RSUs to any such Grantee is contingent upon the Grantee executing and returning any such addendum in the manner
directed by the Company. 
  

	11.	NOT A CONTRACT FOR EMPLOYMENT. 

 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 Grantee any right to continue in the Company’s employ or service nor limit in any way the Company’s right to terminate the Grantee’s employment
or other service at any time for any reason. 

  
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	12.	SEVERABILITY. 

 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. 
  

	13.	HEADINGS. 

 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. 
  

	14.	FURTHER ASSURANCES. 

 Each party shall cooperate and take such action as may be reasonably
requested by another party in order to carry out the provisions and purposes of these Standard Terms and Conditions. 
  

	15.	BINDING 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. 
  

	16.	ELECTRONIC DELIVERY 

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

	17.	SECTION 409A 

 The Award shall be administered pursuant to the requirements of Section 409A
of the Code. For purposes hereof, “separation from service” shall have the meaning specified in Section 409A of the Code and the regulations thereunder. To the extent required by Section 409A of the Code, any payment hereunder to
a Grantee is a “specified employee” shall be delayed until six months following such Grantee’s separation from service. 

  
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	18.	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 Grantee); 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 Grantee. 

  

	 	C.	“Disability” shall have the meaning specified in Section 409A(a)(2)(C) of the Code and the related Treasury Regulations. 

  
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	 	D.	“Good Reason” shall mean the Grantee’s resignation from employment from the Company or its successor within sixty (60) days following the occurrence of (i) a material reduction in the
Grantee’s base salary; (ii) a material adverse change in the Grantee’s responsibilities; or (iii) a required relocation of the Grantee’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 Grantee shall have provided written notice to the Company or its successor of his or her intention to resign for Good Reason and the grounds therefore 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. 

 

	 	E.	“Noncompetition Area” shall mean the following geographic areas to the extent the Grantee’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 Grantee’s employment by
the Company; and (ii) any state or territory of the United States of America. 

  

	 	F.	“Restricted Activities” means: 

  

	 	1.	The Grantee, 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 Grantee’s conduct had been employed by the Company
within the previous 12 months, to leave that employment or cease performing those services; 

  

	 	2.	The Grantee, 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 Grantee, 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 Grantee’s conduct 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 

  
 13 

	 	4.	The Grantee’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 F.2 and F.3 extend only to a customer,
supplier, or vendor or prospective customer, supplier, or vendor with respect to whom or whose business the Grantee has or had Confidential Information (including without limitation knowledge of or participation in a bid, proposal, or offer); and
the Restricted Activities in F.4 extend only to a (x) the performance by the Grantee, directly or indirectly, of the same or similar activities the Grantee 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 Grantee’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. 
  

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

 

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

  

	 	I.	“Serious Misconduct” shall mean the occurrence of any of the following: (i) the material failure or refusal by the Grantee to perform his or her duties to the Company or its successor (including, without
limitation, the Grantee’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 Grantee 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 Grantee 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 Grantee’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 Grantee; provided, however, that in the event that the Company or its successor determines to terminate the Grantee’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 Grantee 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 Grantee shall
fail within thirty (30) days of such notice to substantially remedy or correct the same. 

  
 14 

 EXHIBIT A 

MEMBERS OF PEER GROUP 
 Baker Hughes Incorporated
(BHI) 
 Cameron International (CAM) 
 Chart Industries Inc.
(GTLS) 
 Dril-Quip, Inc. (DRQ) 
 Exterran Holdings (EXH) 

Flowserve (FLS) 
 FMC Technologies (FTI) 

Halliburton (HAL) 
 Idex (IDEX) 

National Oilwell (NOV) 
 Oceaneering International (OLL) 

Schlumberger (SLB) 
 Weatherford International (WFT) 

  
 15EX-10.5

 Exhibit 10.5 

DRESSER-RAND GROUP INC. 

STANDARD TERMS AND CONDITIONS FOR 

STOCK APPRECIATION RIGHTS 
 These
Standard Terms and Conditions apply to any Stock Appreciation Rights (the “SARs”) granted under the Dresser-Rand Group Inc. 2008 Stock Incentive Plan, as amended (the “Plan”), on or after January 1, 2014, which 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 grant of Stock Appreciation Rights 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 Stock Appreciation Rights will be forfeited and the Participant will have no further rights with respect to such Stock Appreciation
Rights.  
  

	1.	TERMS OF STOCK APPRECIATION RIGHTS 

  

	 	A.	Dresser-Rand Group Inc. (the “Company”) has granted to the Participant named in the Grant Notice provided to said Participant herewith (the “Grant Notice”) Stock Appreciation Rights with respect to
the number of shares of the Company’s common stock (the “Shares”), 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.	EXERCISE OF STOCK APPRECIATION RIGHT 

 The Stock Appreciation Rights 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 Stock
Appreciation Rights shall be exercisable to the extent it becomes vested, as described in the Grant Notice. The Participant may exercise any SARs that have become vested and exercisable by providing written notice of exercise to the Company
specifying the number of SARs to be exercised. As soon as practicable following receipt of notice of exercise, the Company shall make a payment to the Participant equal to the excess of (i) the aggregate Fair Market Value on the date of
exercise of the number of Shares subject to the SARs being exercised over (ii) the aggregate Exercise Price of the SARs being exercised. Such payment shall be made in cash, in Shares or in a combination thereof, as determined by the Committee
in its sole discretion. 

  
 1 

 Fractional shares may not be exercised. To the extent payment is in the form of Shares of Common
Stock, such 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 SAR or the delivery of Shares hereunder would violate any federal, state or other applicable laws. 
  

	3.	EXPIRATION OF STOCK APPRECIATION RIGHTS 

 Except as provided in this Section 3, the
Stock Appreciation Rights 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 13.G below), the Participant (or the Participant’s estate, beneficiary or legal representative), subject to
Section 8, may exercise the Stock Appreciation Rights vested or exercisable until the Expiration Date. Upon Retirement, the unvested Stock Appreciation Rights 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 Stock Appreciation Rights shall continue to vest under the schedule described in the Grant
Notice: (x) the number of unvested Stock Appreciation Rights 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 Stock Appreciation Rights shall be forfeited and canceled as of the date of such Retirement. 

  

	 	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 Stock Appreciation Rights
(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 Stock Appreciation Rights 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 Stock Appreciation Rights 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. 

  
 2 

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

  

	4.	CHANGE IN CONTROL 

 The Stock Appreciation Rights shall be treated as follows if there is
a Change in Control: 
  

	 	A.	If the Stock Appreciation Rights 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 Stock Appreciation Rights 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 Stock Appreciation Rights (including, without limitation, those Stock Appreciation Rights that vest pursuant to this Section 4.A). 

 

	 	B.	If the Stock Appreciation Rights 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
Stock Appreciation Rights 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 Stock Appreciation Rights shall fully vest and become exercisable upon such termination or resignation. 

For purposes hereof, the Stock Appreciation Rights shall be considered “assumed” if, following the Change in Control, the Stock
Appreciation Rights confer the right to purchase or receive, for each share of Common Stock subject to the Stock Appreciation Right 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 Stock Appreciation Rights will be considered “substituted for” if the successor or acquiror replaces the Stock Appreciation Rights 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). 

  
 3 

	5.	RESTRICTIONS ON RESALES OF SHARES 

 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 Shares (if any) issued as a result of the exercise of the Stock Appreciation Right,
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 holders of stock appreciation rights and/or
stock options and (c) restrictions as to the use of a specified brokerage firm for such resales or other transfers. 
  

	6.	INCOME TAXES 

 The Company shall not deliver cash or shares of Common Stock in respect of
the exercise of any Stock Appreciation Right 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 amounts payable (including, to the extent applicable, Shares of Common Stock) issuable in connection with the exercise of the Stock Appreciation Rights. 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 Stock Appreciation Rights from any amounts payable by it to the Participant (including, without limitation, future cash wages). 

 

	7.	NON-TRANSFERABILITY OF STOCK APPRECIATION RIGHTS 

 The Participant may not assign or
transfer the Stock Appreciation Rights to anyone other than by will or the laws of descent and, subject to Section 3.B, the Stock Appreciation Rights shall be exercisable only by the Participant during his or her lifetime. The Company may
cancel the Participant’s Stock Appreciation Rights if the Participant attempts to assign or transfer it in a manner inconsistent with this Section 7. 

  
 4 

	8.	RESTRICTED ACTIVITIES 

  

	 	A.	By accepting the Stock Appreciation Right, 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 13.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 8, 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 Stock Appreciation Rights
(regardless of whether then vested or exercisable) upon Retirement as provided for in Section 3.A. 

  

	 	B.	The Company, by granting the Stock Appreciation Right, and the Participant, by accepting the Stock Appreciation Right, 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 8.B, the Stock Appreciation Right, and the extended exercisability of the Stock Appreciation Rights (regardless of whether then vested
or exercisable) upon Retirement as provided for in Section 3.A, the Participant agrees that: 

  

	 	1.	He or she will not engage in any of the Restricted Activities (as defined in Section 13.E below) during the Restriction Period (as defined in Section 13.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 8, then (x) the Stock
Appreciation Rights shall immediately expire and cease to be exercisable (regardless of whether then vested or exercisable) and (y) with respect to any Stock Appreciation Rights that have been exercised, the Participant shall immediately pay to
the Company in cash the payment made to the Participant pursuant to Section 2 for such Stock Appreciation Right, provided that to the extent such payment was made in whole or part in Shares, the repayment shall include payment in cash of the
excess of the Fair Market Value on the date of exercise of the Shares received over the aggregate Exercise Price or, at the Company’s option, the Participant shall surrender the Shares; 

 

	 	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 8, 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 8, without the necessity of posting any bond or proving special damages or irreparable injury;
and 

  

	 	4.	Neither Section 8.C.2 nor Section 8.C.3 constitute the Company’s exclusive remedy for a breach or threatened breach of the Participant’s obligations under this Section 8, but shall be in
addition to all other remedies available to the Company at law or equity. 

  

	 	D.	By accepting the Stock Appreciation Right, the Participant acknowledges and agrees that (i) the restrictions contained in this Section 8 are ancillary to an otherwise enforceable agreement, including without
limitation the mutual promises and undertakings set out in Section 8.A and B, the Stock Appreciation Right, and the extended exercisability of all or a portion of the Stock Appreciation Rights (regardless of whether then vested or exercisable)
upon Retirement as provided for in Section 3.A; (ii) the Company’s promises and undertakings set out in these Standard Terms and Conditions, and in particular Section 8.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 8.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 8.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 8 are not, or likely are not, valid and enforceable; (vi) he or she will not challenge the enforceability of this Section 8;
(vii) absent the Participant’s agreement to this Section 8, 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 Stock Appreciation Rights (regardless of whether then vested or exercisable) upon Retirement as provided for in Section 3.A.

  
 6 

	 	E.	The provisions of Section 3.A providing for the extended exercisability of all or a portion of the Stock Appreciation Rights (regardless of whether then vested or exercisable) upon Retirement and this
Section 8 are mutually dependent and not severable, and the Participant acknowledges and agrees that the Company would not provide for the extended exercisability of the Stock Appreciation Rights (regardless of whether then vested or
exercisable) upon Retirement as provided for in Section 3.A but for the Participant’s promises set out in and the enforceability of this Section 8. Accordingly, if Section 8 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 Stock Appreciation Rights shall immediately expire and cease to be exercisable (regardless of whether then vested
or exercisable) and (y) with respect to any Stock Appreciation Rights that have been exercised, the Participant shall immediately pay to the Company in cash the payment made to the Participant pursuant to Section 2 for such Stock
Appreciation Rights, provided that to the extent such payment was made in whole or part in Shares, the repayment shall include payment in cash of the excess of the Fair Market Value on the date of exercise of the Shares received over the aggregate
Exercise Price or, at the Company’s option, the Participant shall surrender the Shares; provided that if the scope of the restrictions in this Section 8 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. 

 

	9.	THE PLAN AND OTHER AGREEMENTS 

 In addition to these Terms and Conditions, the Stock
Appreciation Rights 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 Stock Appreciation Rights. Any prior agreements, commitments or negotiations concerning the Stock Appreciation Rights are superseded. 

 

	10.	LIMITATION OF INTEREST IN SHARES SUBJECT TO SARS 

 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 Stock Appreciation Rights 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. 
  

	11.	GENERAL 

 Except as provided for in Section 8.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. 
  

	12.	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 Stock Appreciation Rights and the
Common Stock via Company web site or other electronic delivery. 

  
 8 

	13.	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; or (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. 

  
 9 

	 	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 employment 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 

  
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	 	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 conduct 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 

 

	 	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 8 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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