Document:

Exhibit 10.11

Exhibit 10.11

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, 2011, which are evidenced by a Grant Notice or an action of
the Committee that specifically refers to these Standard Terms and Conditions.

	1.	 	TERMS OF PERFORMANCE RESTRICTED STOCK UNITS

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.

	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, 2012

	 	 	 
	Company’s Relative TSR for period
from January 1, 2011 through
December 31, 2011

	 	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%
	 
	 	 
	At least 25th Percentile
But Below 50th Percentile
of Peer Group (“Threshold”)*

	 	16.67%
	 
	 	 
	At least 50th Percentile
But Below 75th Percentile
of Peer Group (“Target”)*

	 	33.33%
	 
	 	 
	Above 75th Percentile of
Peer Group (“Maximum”)*

	 	50%

 

 

 

Portion of Award Vesting February 15, 2013

	 	 	 
	Company’s Relative TSR for period
from January 1, 2011 through
December 31, 2012

	 	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%
	 
	 	 
	At least 25th Percentile
But Below 50th Percentile
of Peer Group (“Threshold”)*

	 	16.67%
	 
	 	 
	At least 50th Percentile
But Below 75th Percentile
of Peer Group (“Target”)*

	 	33.33%
	 
	 	 
	Above 75th Percentile of
Peer Group (“Maximum”)*

	 	50%

Portion of Award Vesting February 15, 2014

	 	 	 
	Company’s Relative TSR for period
from January 1, 2011 through
December 31, 2013

	 	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%
	 
	 	 
	At least 25th Percentile
But Below 50th Percentile
of Peer Group (“Threshold”)*

	 	16.67%
	 
	 	 
	At least 50th Percentile
But Below 75th Percentile
of Peer Group (“Target”)*

	 	33.33%
	 
	 	 
	Above 75th Percentile of
Peer Group (“Maximum”)*

	 	50%

	 	 	 
	*	 	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. 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), the portion of the
Target Award that would vest for that period would be 25% (halfway between 16.67% and
33.33%).

 

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For purposes hereof:

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

	 	•	 	“TSR” for each performance 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, 2011 through the last day
of the applicable year (or, in the event of Retirement in 2011, death or
Disability, the date of such Retirement, death or Disability). For this purpose,
any dividends paid between January 1, 2011 and the last day of the applicable year
(or, in the event of Retirement in 2011, death or Disability, the date of such
Retirement, 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).

	 	•	 	“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, 2011, 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, 2011 or, as
applicable, the last day of the applicable calendar year (or, in the event of
Retirement in 2011, death or Disability or Retirement, the date of such Retirement,
death or Disability).

 

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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, 2013, the Award shall vest with respect to with
respect to any uncompleted calendar years in the same manner as specified
above, but using the Company’s Relative TSR through the date of death of
Disability rather than through the end of the applicable calendar year(s);

	 	(ii)	 	subject to Section 9, if the Grantee’s separation from service
is due to the Grantee’s Retirement (as defined in Section 18.G below) (x)
during calendar year 2011, a pro-rata portion of the Target Award for 2011
shall vest, or (y) during calendar year 2012 or 2013, the Award shall continue
to vest in the same manner as specified above (i.e., based on actual
performance); provided, however, that if the Grantee’s Retirement is less than
twelve (12) months after the Grant Date, only the following portion of the
Award scheduled to vest in 2012 and 2013 shall be eligible to vest in the
manner specified above: (x) the portion of the Award attributable to 2012 and
2013 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 1095. The remaining portion
of the Award shall be forfeited and canceled as of the date of such Retirement;
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, “pro-rata portion” means a percentage, where the numerator
is the number of days between January 1, 2011 and the date of the Grantee’s Retirement in
2010, 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 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 (i) 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), or (ii) is
due to Retirement in 2011, such settlement shall occur as soon as reasonably practicable
following such Retirement (and in no event later than two and one-half months following such
Retirement).

 

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	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.

	5.	 	CHANGE IN CONTROL

Unless otherwise provided in an employment, severance or other agreement between the Company
and the Grantee, the Committee shall determine the effect of a Change in Control on all
unvested Performance RSUs. Without limitation, the Committee may provide for the
acceleration of vesting of all or a portion of the unvested Performance RSUs at such
performance level as determined by the Committee, for a cash payment based on the Change in
Control Price in settlement of the Performance RSUs at such performance level as determined
by the Committee, or for the assumption or substitution of Performance RSUs by the Grantee’s
employer (or the parent or an Affiliate of such employer) or other service recipient that
engages the Grantee immediately following the Change in Control. In all events, any action
under this Section 5 shall comply with the applicable 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.

	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).

 

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	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

 

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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 8, 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.

	 	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
8.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.E below) during the Restriction Period (as defined in
Section 18.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 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;

 

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	 	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 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 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 Grantee’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 Performance RSU, the Grantee 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 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 8.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 8.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 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 Grantee’s agreement to this
Section 8, 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.

	 	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 8 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 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 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 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 Grantee and the Company agree that the restrictions
so deemed shall be, and are, automatically reformed to the maximum limitation
permitted by such law.

 

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	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.

	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.

 

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	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.

	 	D.	 	“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.

 

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	 	E.	 	“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

	 	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 D.2 and D.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 D.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.

 

12

 

	 	F.	 	“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.

	 	G.	 	“Retirement” shall mean the Grantee’s voluntary separation from service after
the Grantee has attained age sixty-two and completed at least ten years of continuous
service with the Company as of the date of separation or 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.

 

13

 

EXHIBIT A

MEMBERS OF PEER GROUP

Baker Hughes Incorporated (BHI)

Cameron International (CAM)

Exterran Holdings (EXH)

Flowserve (FLS)

FMC Technologies (FTI)

Gardner Denver (GDI)

Global Industries (GLBL)

Halliburton (HAL)

Idex (IDEX)

National Oilwell (NOV)

Oceaneering International (OLL)

Schlumberger (SLB)

Weatherford International (WFT)

 

14Exhibit 10.12

Exhibit 10.12

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, 2011, which are evidenced by a Grant Notice or an action of the Committee that
specifically refers to these Standard Terms and Conditions.

	1.	 	TERMS OF STOCK APPRECIATION RIGHTS

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.

	2.	 	EXERCISE OF STOCK APPRECIATION RIGHT

The Stock Appreciation Right 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 Right 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.

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.F 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 Grantee’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.

	 	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.

 

2

 

	4.	 	CHANGE IN CONTROL

Unless otherwise provided in an employment, severance or other agreement between the Company
and the Participant, the Committee shall determine the effect of a Change in Control on the
Stock Appreciation Rights. Without limitation, the Committee may provide for the
acceleration of vesting and exercisability of any unvested Stock
Appreciation Rights, for a cash payment based on the Change in Control Price in settlement
of the Stock Appreciation Rights, or for the assumption or substitution of Stock
Appreciation Rights by the Participant’s employer (or the parent or an Affiliate of such
employer) that engages the Participant immediately following the Change in Control.

	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 Right to anyone other than
by will or the laws of descent and, subject to Section 3.B, the Stock Appreciation Right
shall be exercisable only by the Participant during his or her lifetime. The Company may
cancel the Participant’s Stock Appreciation Right if the Participant attempts to assign or
transfer it in a manner inconsistent with this Section 7.

 

3

 

	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 Right (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.

 

4

 

	 	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 Right (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.D below) during the Restriction Period (as defined in
Section 13.E 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 Right
shall immediately expire and cease to be exercisable (regardless of whether
then vested or exercisable) and (y) with respect to any Stock Appreciation
Right that has 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.

 

5

 

	 	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
Right (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 Right (regardless of whether then
vested or exercisable) upon Retirement as provided for in Section 3.A.

	 	E.	 	The provisions of Section 3.A providing for the extended exercisability of all
or a portion of the Stock Appreciation Right (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 Right (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 Right shall immediately expire and
cease to be exercisable (regardless of whether then vested or exercisable) and (y) with
respect to any Stock Appreciation Right that has 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; 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.

 

6

 

	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.

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.

 

7

 

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.

	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).

 

8

 

	 	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.

	 	C.	 	“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.

	 	D.	 	“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

 

9

 

	 	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
D.2 and D.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 D.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.

	 	E.	 	“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.

	 	F.	 	“Retirement” shall mean the Participant’s voluntary termination of employment
or other service from the Company after the Participant has attained age sixty-two and
completed at least ten years of continuous service with the Company as of the date of
termination or 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.

 

10

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