Document:

exv10w2

Exhibit 10.2

May 20, 2010

Mr. James G. Osborn

502 Stoneleigh Drive

Houston, Texas 77079

			
	     Re:	 	Employment as Chief Marketing Officer

Dear Jim:

     I am writing to formalize our offer to join Global Industries, Ltd. (“Global” or “the
Company”) as its Chief Marketing Officer. In this position, you will report to John Reed, Chief
Executive Officer. As agreed, our expectation is that you will commence employment with Global on
or about June 7, 2010. Terms and conditions of your employment will be as outlined below.

A. Standard Compensation

     1. Base Compensation

     In your position as Chief Marketing Officer, your base annual salary will be $325,000. At
Global, salary payments are made twice per month. At Global, Base Compensation is reviewed
annually by the Compensation Committee.

     2. Annual Bonus Incentive Plan

     As an executive of the Company, you will be eligible for participation in an Annual Bonus
Incentive Plan (“Bonus Plan”). For 2010, your target-level participation in the Bonus Plan will be
fifty (50%) percent of your base salary if performance goals are achieved at the Target level.
Achievement of goals at the Maximum level will result in an award of up to 100% with Threshold
performance set at 50% of the Target. Payment of this bonus will be in Global common stock with
target bonus opportunity converted to stock at $7.05/share.

     3. Equity Awards

     As an executive with the Company, you are eligible for awards of stock-based compensation.
Generally, such awards are made in February following approval by the Board of Directors. While
the number of shares granted and the components of our equity award program may vary, our annual
program for 2010 consists of performance shares earned based upon results versus goals over a
two-year performance cycle. However, as you start your Chief Marketing Officer position with the
Company, a special equity-based Employment Incentive award consisting of Restricted Stock and Stock
Options has been approved by the Board. (Details of

Initials                     

11490 Westheimer • Suite 400 • Houston, Texas 77077 • (281) 529-7979 • Fax # (281) 529-7980

 

 

			
	 	 	 
	Mr. James G. Osborn

May 20, 2010 

Page 2
	 	

the Employment Incentive award are outlined below.) Assuming that the Board follows prior
practice, you can anticipate another regular equity award in February 2011.

     Effective on the date you commence employment, you will be granted a Target of 40,000
Performance Units. The number of shares that you may earn under the Performance Unit award will
depend on actual results compared to performance goals that were established by the Compensation
Committee at its meeting on February 24, 2010. All members of Global’s management team have the
same performance goals. The award has three basic performance levels: threshold, target and
maximum. Based on the actual performance against the goals, your actual award can range from zero
to 200%. Of course, if the threshold level of performance is not achieved you will not have earned
any shares of stock and the award will expire.

     4. Benefits

     The Company offers a variety of employee benefits designed to protect you and your dependants
from financial loss due to sickness, disability or death. A summary of executive level benefits is
attached. Our most current informational brochure on benefits will be forwarded to your attention.
Eligibility for welfare benefits will commence on July 1, 2010.

     5. Paid Time Off (PTO)

     Twenty-five (25) days per year. For 2010, your pro-rated PTO will be fifteen (15) days. Paid
Time Off covers all excused absences from work such as vacation and/or absence due to illness. PTO
does not apply to holidays, jury duty, military leave, or funeral leave.

B. Employment Incentive

     1. Restricted Shares

     Effective on the date you commence employment, you will be awarded 49,500 restricted shares of
Company stock. Assuming your continued employment with the Company, 27,000 shares will vest on
July 15, 2010; 8,500 will vest on November 30, 2011; and the remaining 14,000 will vest on November
20, 2013. A stock agreement will be forwarded to you shortly after you have commenced employment
with the Company.

     2. Stock Options

     Effective on the date you commence employment, you will be granted options to purchase 15,000
shares of Global common stock at the closing market price on that date. Subject to your continued
employment, the options are valid for ten (10) years, taxable when executed with 33% annual vesting
over three (3) years per the terms and conditions of the Stock Option Agreement. A Stock Option
Agreement detailing its terms and conditions will be forwarded to you shortly after you have
commenced employment with the Company.

Initials                     

 

 

			
	 	 	 
	Mr. James G. Osborn

May 20, 2010 

Page 3
	 	

C. Change-In-Control Agreement

     As a senior executive, you will be provided a Change-In-Control Agreement in a standard format
as approved by the Board of Directors. A copy is attached.

     Pursuant to this Agreement, in the event of a Change-In-Control transaction, all outstanding
stock options and restricted shares will vest immediately and performance share units will be
deemed earned at the Target level. In addition, if your employment is terminated without cause or
you resign with good reason following a Change-In-Control, you will receive a lump sum payment
equal to three (3) times your base salary and target bonus as well as other benefits as outlined in
the agreement. Please review the attached agreement for additional details.

D. Stock Ownership Guidelines

     The Compensation Committee of the Board of Directors has implemented share ownership
guidelines for all Executives. These new ownership guidelines require that all Executives hold at
least one (1) times their annual base salary in market value (i.e., number of shares times stock
price) of Global Industries stock within five (5) years. The Board believes this share ownership
guideline will visibly link executive fortunes with those of shareholders of the long term. In
order to assist you in reaching the targeted level of ownership, the Board has included the
following in their definition of shares owned: shares held outright and unvested Restricted stock.
Please contact Dave Sheil, Senior Vice President, Human Resources for further information regarding
your specific guideline.

E. Pre-Employment Physical Examination & Other Pre-Employment Requirements

     If you accept employment with the Company offered in this Letter of Appointment, you
understand that you will be required to successfully complete a physical examination. This offer
of employment is conditional upon the satisfactory completion of a background check and drug and
alcohol screening.

F. Choice of Law

All claims, disputes and controversies, including, but not limited to, personal injury, illness or
death claims, working condition controversies, termination, discrimination, harassment, civil
rights violations, wages and payment disputes, arising out of or relating to your employment or
otherwise which you, your legal representatives, spouse, estate, children and/or statutory
beneficiaries have or may come to have against your employer, its parents, subsidiaries, affiliates
or related entities, or their agents or representatives, or against the customer for whom the work
is being performed or its partners, joint venturers, parents, subsidiaries, affiliates and related
entities, contractors and subcontractors, or against any vessel owned, operated or chartered by any
of such persons or entities, which cannot be resolved by mutual agreement shall be finally decided
by arbitration utilizing a single arbitrator in accordance with the rules then in effect for the
resolution of employment disputes by the American Arbitration Association. The arbitration

Initials                     

 

 

			
	 	 	 
	Mr. James G. Osborn

May 20, 2010 

Page 4
	 	

shall be conducted in Houston, Texas or in such other location as shall be mutually agreed by the
parties. The decision of the arbitrator shall be final, binding and enforceable in any court of
competent jurisdiction, and there shall be no appeal from the arbitrators decision except as
specifically provided by laws applicable to arbitral awards. All statutes of limitation that would
otherwise be applicable shall apply to any arbitration proceeding conducted hereunder. Should any
portion of this arbitration agreement be unenforceable under applicable law for any reason, all
other portions of this agreement shall be unaffected by the presence of the unenforceable portion
or portions, and the unenforceable portion or portions of the agreement shall automatically be
modified but only to the extent necessary to render those portions valid and enforceable under
applicable law. To the maximum extent practicable, an arbitration proceeding hereunder shall be
concluded within one-hundred eighty (180) days of the filing of the dispute with the American
Arbitration Association. To the extent permitted by applicable law, the arbitrator shall have the
power to award recovery of all costs and fees (including, without limitation, reasonable attorneys’
fees, administrative fees, and arbitrators’ fees) to the prevailing party. The parties agree to
keep all disputes and arbitration proceedings strictly confidential, except for disclosures
required by applicable law.

     Should you have any questions, please do not hesitate to contact me at (281) 529-7930.

Sincerely,

Global Industries, Ltd.

David R. Sheil

Senior Vice President, Human Resources

	 	 	 	 	 	 	 

	Accepted:

	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 

 

 

Executive Benefits Summary

     The following benefits will be provided to you as part of your overall compensation package.

     Medical

     If you and your family are enrolled in Global’s medical insurance plan, you will be reimbursed
100% for your deductible, office visit co-payments, and co-insurance payments under our current
medical plan through a supplemental medical plan. Prescription co-pays are also reimbursed.
Charges that are considered “above usual and customary” will not be reimbursed. Benefits paid
under this plan will not be considered taxable income.

     You are free to use any provider in or out of the Company approved network. However, we
encourage you to use network providers whenever possible to avoid incurring charges considered
“above usual and customary” for which you would not be reimbursed as well as creating a significant
cost to the Company. If you do choose to utilize the services of a non-PPO provider, please be
aware that you may be asked to pay in full at the time of service. While these amounts will be
refunded to you, if you utilize a PPO provider you should only be asked to pay the $15 co-pay at
the time services are rendered.

     Dental

     You will be reimbursed 100% of the $50 calendar year deductible, and 20% and/or 50% of
co-payments for dental service charges up to the plan annual maximum of $1,000. Charges that are
“above usual and customary” will not be considered for payment under either plan. Benefits paid
under this plan will not be considered taxable income. You are free to use any dental provider.
If your dental provider does not file claims for you, initial claims should be filed with the
Company’s Benefits Administrator.

     While the Company is paying the cost of the executive dental coverage, you will be required to
pay monthly dental insurance premiums for both yourself and dependents who are participating in
this benefit.

     Supplemental Life/AD&D

     In addition to the one (1) times base in life insurance you will receive from the Company, you
will be provided with an additional $100,000 of life insurance at no cost.

     Long Term Disability

     You will be provided with Long-Term Disability coverage at no cost. If it should become
necessary for you to utilize this coverage, any benefits paid to you would be considered taxable
income.exv10w5

Exhibit 10.5

FORM OF EXECUTIVE

LONG-TERM INCENTIVE

PERFORMANCE UNIT AGREEMENT

(EPS Based)

     AGREEMENT
made as of the ___ day of May, 2010 between GLOBAL INDUSTRIES, LTD., a Louisiana
corporation (the “Company”), and                                          (“Participant”).

     To
carry out the purposes of the GLOBAL INDUSTRIES, LTD. 2005 STOCK INCENTIVE PLAN  (the
“Plan”) and in consideration of services performed by Participant and the mutual agreements and
other matters set forth herein and in the Plan, the Company and the Participant hereby agree as
follows:

     1. Grant of Performance Units. The Company, pursuant to the Plan, has granted on
                    , 20___(the “Date of Grant”), to Participant a target of                      performance units
(each a “Performance Unit”). Each Performance Unit represents the right to receive an unrestricted
share (which need not be a whole number) of common stock, $0.01 par value per share, of the Company
(“Stock”) for each Performance Unit to the extent “earned” that shall be determined by the
Company’s cumulative Earnings Per Share (“EPS”) during the Performance Period from January 1, 2010
through December 31, 2011 (the “Performance Period”). The EPS Earned Percentage shall be
determined in accordance with the schedule set forth on the attached Exhibit A. The Performance
Units granted to Participant under this Agreement shall be subject to all the terms, conditions and
restrictions set forth in the Plan and this Agreement, including future amendments to either, if
any, pursuant to the terms thereof. In the event of a change in the capitalization of the Company
due to a stock split, stock dividend, recapitalization, merger, consolidation, combination, or
similar event, the terms of this Agreement, including the number of Performance Units, may be
adjusted by the Committee to appropriately reflect such change.

     2. Earned Shares.

     (a) As soon as administratively practicable after the last day of the Performance
Period, the Committee shall determine for the Performance Period the Earnings Per Share for
the Company and the Earned Percentage. The Committee’s determinations pursuant to the
preceding sentence shall be certified by the Committee in writing and delivered to the
Secretary of the Company. For purposes of the preceding sentence, written authorization of
the Committee Chairman or approved minutes of the Committee meeting in which the
certification is made shall be treated as a written certification. Shares of Stock shall be
deemed earned under this Paragraph 2(a) (to the extent the applicable performance goals are
satisfied) on the date the Committee takes the action set forth in the first sentence of
this Paragraph 2(a) (the “Certification Date”). At the time of such certification and based
on the Earnings Per Share for the Performance Period, the number of shares of Stock that
shall be earned shall be equal to the number of Performance Units granted hereunder
multiplied by the Earned Percentage (expressed as a percentage rounded to two decimal
places).

 

 

     (b) Notwithstanding any provision of Paragraph 2(a) to the contrary, no shares of Stock
shall be earned if Participant’s employment is Terminated for any reason by the Company or
by Participant for any reason other than death, Disability or Retirement, in either case
before the Certification Date.

     (c) In the event of a Change in Control during the Performance Period if such Change of
Control occurs either (i) while Participant is in the employ of the Company or (ii) on or
after the date upon which Participant’s employment with the Company terminated by reason of
Retirement, death or Disability or by the Company other than a Termination for Cause, one
share of Stock shall be earned for each Performance Unit as of the effective date of such
Change in Control and the provisions of Section 2(a) shall cease to apply.

     (d) In the event of termination of Participant’s employment by reason of Retirement,
death or Disability and subject to the provisions of Paragraph 2(c), the number of shares of
Stock that shall be earned on the Certification Date shall equal the total number of shares
of Stock that would be earned as provided in Paragraph 2(a) if Participant was still
employed on the Certification Date multiplied by the portion (expressed as a percentage
rounded to two decimal places) of the Performance Period during which Participant was an
employee of the Company.

     3. Stock Issuance.

     (a) The Company shall cause to be issued certificates representing any shares of Stock
earned hereunder in the name of Participant (or the estate or beneficiary of Participant in
the event of Participant’s prior death) as promptly as practicable after the Certification
Date, but in no event later than March 15th of the calendar year after the calendar year in
which the Performance Period ends; provided however, that, if the shares of Stock are earned
pursuant to Paragraph 2(c), then the certificates shall be issued on the effective date of
the Change in Control. No fraction of a share of Stock shall be issued by the Company under
this Agreement; rather, the total number of shares of Stock that would otherwise be issued
hereunder shall be rounded up to the next whole share of Stock. Unless and until a
certificate or certificates representing such shares of Stock shall have been issued by the
Company to Participant, Participant (or the estate or beneficiary of Participant in the
event of Participant’s prior death) shall not be or have any of the rights or privileges of
a shareholder of the Company with respect to shares of Stock that may be, or have been,
earned under this Agreement.

     (b) The Company has registered or intends to register for issuance under the Securities
Act of 1933, as amended (the “Act”), the shares of Stock that may be earned under this
Agreement, and intends to keep such registration effective until the Committee shall make
its determination under Paragraph 2(a). In the absence of such effective registration or an
available exemption from registration under the Act, issuance of shares of Stock earned
under this Agreement will be delayed until registration of such shares is effective or an
exemption from registration under the Act is available. The Company intends to use its
reasonable best efforts to insure that no delay will occur. If an exemption from
registration under the Act is available and necessary upon issuance of

2

 

shares of Stock earned hereunder, Participant (or the estate or beneficiary of
Participant in the event of Participant’s prior death), if requested by the Company to do
so, will execute and deliver to the Company in writing an agreement containing such
provisions as the Company may require to assure compliance with applicable securities laws.

     (c) Participant agrees that the shares of Stock acquired hereunder will not be sold or
otherwise disposed of in any manner that would constitute a violation of any applicable
securities laws. Participant also agrees that (i) the certificates representing the shares
of Stock earned under this Agreement may bear such legend or legends as the Administrator of
the Plan deems appropriate in order to assure compliance with applicable securities laws,
(ii) the Company may refuse to register the transfer of the share of Stock earned under this
Agreement on the transfer records of the Company if such proposed transfer would, in the
opinion of counsel satisfactory to the Company, constitute a violation of any applicable
securities law and (iii) the Company may give related instructions to its transfer agent, if
any, to stop registration of the transfer of the shares of Stock earned under this
Agreement.

     4. Withholding of Tax. To the extent the earning or issuance of Performance Units or
shares of Stock results in the receipt of compensation income or wages by Participant for federal,
state or local tax purposes, Participant shall deliver to the Company at the time of such receipt
such amount of money (or, with the consent of the Administrator, shares of Stock) as the Company
may require to meet all obligations under applicable tax laws or regulations, and if Participant
fails to do so, the Company is authorized to withhold from any cash or stock compensation then or
thereafter payable to Participant, including from the shares of Stock otherwise issuable under this
Agreement, any tax required to be withheld by reason thereof.

     5. Employment Relationship. Nothing contained in this Agreement or the Plan shall
interfere with or limit in any way the right of the Company to terminate the employment of
Participant, nor confer upon Participant any right to continued employment. For purposes of this
Agreement, Participant shall be considered to be an employee of the Company so long as Participant
remains an employee of either the Company, or a parent or subsidiary of the Company. Without
limiting the scope of the preceding sentence, it is expressly provided that Participant’s
employment with the Company shall be considered to have been terminated at the time the entity or
other organization that employs Participant ceases to be a parent or subsidiary of the Company
event shall not constitute a Termination for Cause. Subject to the preceding sentence, any
question as to whether and when there has been a termination of such employment, and whether such
event is a Termination for Cause, shall be determined by the Committee, and its determination shall
be final.

     6. Entire Agreement; Amendment. Except to the extent expressly provided otherwise in
any employment, severance or change of control agreement with Participant, this Agreement replaces
and merges all previous agreements and discussions relating to this award of Performance Units
between Participant and the Company and together with the Plan constitutes the entire agreement
between Participant and the Company with respect to the subject matter of this Agreement. This
Agreement may not be modified in any respect by any verbal statement, representation or agreement
made by any employee, officer, or representative of the Company. Except as provided below, any
modification of this Agreement shall be effective only if it is in

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writing and signed by both Participant and an authorized officer of the Company.
Notwithstanding anything in the Plan or this Agreement to the contrary, if the Committee determines
that the provisions of Section 409A of the Code apply to this Agreement and that the terms of this
Agreement do not, in whole or in part, satisfy the requirements of such section, then the
Committee, in its sole discretion, may unilaterally modify this Agreement in such manner as it
deems appropriate to comply with such section and any regulations or guidance issued thereunder.

     7. Notices. Any notices or other communications provided for in this Agreement shall
be sufficient if in writing. In the case of Participant, such notices or communications shall be
deemed effectively delivered if hand delivered to Participant at Participant’s principal place of
employment or if sent by registered or certified mail, return receipt requested, postage paid, to
Participant at the last address Participant has filed with the Company. In the case of the
Company, such notices or communications shall be effectively delivered if sent by registered or
certified mail to the Company at its principal executive offices.

     8. Interpretation. In the event of any conflict between the terms of this Agreement
and the Plan, the Plan shall control.

     9. Acknowledgments. Participant is not relying upon any written or oral statement or
representation of the Company, its affiliates, or any of its or their respective employees,
officers, directors, attorneys or agents (collectively, the “Company Parties”) regarding the tax
consequences associated with Participant’s execution of this Agreement, and in deciding to enter
into this Agreement, Participant is relying on his own judgment and the judgment of the
professionals of his choice with whom he has consulted. Participant hereby releases, acquits and
forever discharges the Company Parties from all actions, causes of actions, suits, debts,
obligations, liabilities, claims, damages, losses, costs and expenses of any nature whatsoever,
known or unknown, on account of, arising out of, or in any way related to the tax consequences
associated with Participant’s execution of this Agreement and his receipt of Performance Units or
shares of Stock hereunder.

     10. Certain Definitions. Wherever used in this Agreement, the following words and
phrases when capitalized will have the meanings ascribed below, unless the context clearly
indicates to the contrary, and all capitalized terms used in this Agreement, which are not defined
in this Agreement, will have the meanings set forth in the Plan.

     “Disability” means that, as a result of incapacity due to physical or mental illness, a
Participant has been absent from work for an extended period and has been determined to be
permanently and totally disabled by the Social Security Administration or under the terms of the
Company’s long-term disability plan.

     “Earnings Per Share” or “EPS” means, with respect to the Performance Period, the sum of the
annual “earnings per common share — diluted” reflected in the regularly prepared and publicly
available consolidated financial statements of the Company prepared in accordance with GAAP for
each fiscal year included in the Performance Period, adjusted for non-recurring, unusual and
unexpected items.

4

 

     “GAAP” means United States generally accepted accounting principles, consistently applied.

     “Performance Period” means the two-year period set forth on Exhibit A of this Agreement.

     “Retirement” means the termination of Participant’s employment with the consent of the Company
after at least ten years of service, not including service time with any company or entity acquired
by the Company prior to such acquisition.

     “Termination for Cause” means termination as a result of Participant’s gross negligence or
willful misconduct in the performance of his employment or Participant’s final conviction of a
misdemeanor involving moral turpitude or any felony.

     11. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
any successors to the Company and all persons lawfully claiming under Participant.

     12. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Texas.

     13. Section 409(A). To the extent that Code Section 409A applies to any Performance
Units granted under this Agreement, this Agreement shall be construed and interpreted to comply
with Code Section 409A, notwithstanding anything herein to the contrary, the required definitions
under 409A shall be used, and with respect to any shares of Stock to be issued on account of a
termination of employment of a Participant who is a “Specified Employee” within the meaning of Code
Section 409A at the time of such termination of employment, such shares shall not be issued until
the first business day which is six (6) months after the Participant’s termination of employment.
For the purposes of Code Section 409A to the extent it applies to the Performance Units under this
Agreement, a termination of employment under this Agreement shall mean a “separation of service”
within the meaning of Code Section 409A, Disability shall comply with the requirements of such term
in Section 1.409A-3(i)(4) of the final regulations, and an event under this Agreement will not
constitute a Change in Control during the Performance Period unless it is also a “change in the
ownership or effective control of” the Company, or a “change in the ownership of a substantial
portion of the assets” of the Company (in each case as determined under Section 409A(a)(2)(A)(v) of
the Code and final Treasury Regulations or other IRS guidance issued under Code Section 409A from
time to time).

[Signature page follows.]

5

 

     IN WITNESS WHEREOF, the Company has executed this Agreement by its duly authorized officer,
and Participant has executed this Agreement, all as of the day and year first above written.

	 	 	 	 	 	 	 

	 	 	GLOBAL INDUSTRIES, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	PARTICIPANT	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

Exhibit A

Performance Unit Agreement

(EPS Based; Multi-Year)

AWARD OF PERFORMANCE UNITS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Performance	 	Maximum	 	Target	 	Threshold
	Period	 	EPS	 	EPS	 	EPS
	January 1, 2010 to
December 31, 2011
	 	$	2.00	 	 	$	1.00	 	 	$	0.40	 

	 	 	 	 	 
	Earnings Per Share (“EPS”) for the Performance	 	 
	Period	 	Earned Percentage
	At or above the Maximum EPS
	 	 	200	%
	 
	Above the Target EPS but less than the Maximum EPS
	 	Calculated percentage between 100% and 200%
	 
	At the Target EPS
	 	 	100	%
	 
	Above the Threshold EPS but less than the Target EPS
	 	Calculated percentage between 50% and 100%
	 
	At the Threshold EPS
	 	 	50	%
	 
	Below the Threshold EPS
	 	 	0	%

     The calculated percentage referred to in the schedule above shall be determined (i) for an EPS
above the Target EPS but less than the Maximum EPS by increasing the stated Earned Percentage for
the Target EPS (100%) by the Above Target Incremental Percentage (as defined below) and (ii) for an
EPS greater than the Threshold EPS but less than the Target EPS by increasing the stated Earned
Percentage for Threshold EPS (50%) by the Below Target Incremental Percentage (as defined below).

     “Above Target Incremental Percentage” means the amount equal to (i) the Earned Percentage for
Maximum EPS (200%) minus the Earned Percentage for Target EPS (100%) multiplied by (ii) (A) the
difference between the actual EPS and the Target EPS divided by (B) the difference between the
Maximum EPS and the Target EPS.

     To illustrate the calculation of the Above Target Incremental Percentage, if, for the
Performance Period, the Target EPS is $1.00, the Maximum EPS is $2.00, and the actual EPS is $1.60,
then the Above Target Incremental Percentage is 60%, calculated as
follows: ((200% – 100%) *
[($1.60 – $1.00)/($2.00 – $1.00)]). Since the actual EPS exceeds the Maximum EPS in this example
by $0.60, the Earned Percentage would be 160%, calculated as follows: the Earned Percentage for at
the Target EPS (100%) plus the Above Target Incremental Percentage (60%).

     “Below Target Incremental Percentage” means the amount equal to (i) the Earned Percentage for
Target EPS (100%) minus the Earned Percentage for Threshold EPS (50%) multiplied by (ii) (A) the
difference between the actual EPS and the Threshold EPS divided by (B) the difference between the
Target EPS and the Threshold EPS.

     To illustrate the calculation of the Below Target Incremental Percentage, if, for the
Performance Period, the Target EPS is $1.00, the Threshold EPS is $0.40, and the actual EPS is
$0.70, then the Below Target

Exhibit A-1

 

Incremental
Percentage is 25%, calculated as follows: ((100% – 50%) *
[($0.70 – $0.40)/($1.00
- $0.40)]). Since the actual EPS exceeds the Threshold EPS in this example by $0.30, the Earned
Percentage would be 75%, calculated as follows: the Earned Percentage for at the Threshold EPS
(50%) plus the Below Target Incremental Percentage (25%).

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