Document:

Unassociated Document

    CHINA
POWER EQUIPMENT, INC

    INDEPENDENT DIRECTOR AGREEMENT

     

    THIS
AGREEMENT (the "Agreement")
is made as of the ___ day of ___________, 2010 and is by and between CHINA POWER
EQUIPMENT, INC., a Maryland corporation (hereinafter referred to as the "Company"),
and ______________ (hereinafter referred to as the "Director").

    

    WHEREAS, it is essential to
the Company to retain and attract as directors the most capable persons
available to serve on the board of directors of the Company (the “Board”);
and

    

    WHEREAS, the Company believes
that Director possesses the necessary qualifications and abilities to serve as a
director of the Company and to perform the functions and meet the Company’s
needs related to its Board; and

    

    WHEREAS, the Board of the
Company desires to appoint the Director to serve as and perform the duties of an
independent director and the Director desires to be so appointed and to perform
the duties required of such position in accordance with the terms and conditions
of this Agreement;

    

    NOW, THEREFORE, the parties
agree as follows:

    

    AGREEMENT

    

    In
consideration for the above recited promises and the mutual promises contained
herein, the adequacy and sufficiency of which are hereby acknowledged, the
Company and the Director hereby agree as follows:

    

    1.     DUTIES.
Director will serve as a director of the Company and perform all duties of a
director of the Company, including without limitation (1) attending
meetings of the Board, (2) serving on one or more committees of the Board
(each a “Committee”)
and attending meetings of each Committee of which Director is a member,
(3) using reasonable efforts to promote the business of the Company, and
(4) any other customary duties of a director as may be determined and assigned
by the Board of Directors of the Company and as may be required by the Company’s
constituent instruments, including its certificate or articles of incorporation,
bylaws and its corporate governance and board committee charters, each as
amended or modified from time to time, and by applicable law, including by the
Maryland Code, Corporations and Associations (the "Maryland
Code"). The Company currently intends to hold one in-person regular
meeting of the Board and each Committee each quarter, together with additional
meetings of the Board and Committees as may be required by the business and
affairs of the Company.

    

    The
Director agrees to devote as much time as is necessary to perform completely the
duties of a director of the Company, including duties as a member of the Audit
Committee and such other committees as the Director may hereafter be appointed
to.  The Director will perform such duties in accordance with the
general fiduciary duty of directors arising under the Maryland
Code.

    

    2.    
TERM. The term of this
Agreement shall commence as of the date of the Director’s appointment by the
Board of Directors of the Company and shall continue until the Director’s
removal or resignation.

    

    3.    
COMPENSATION. The Company will compensate the Director as
follows:

    

    (i) The
Company shall pay the Director an annual retainer fee of RMB60,000.00 to be paid
arrears in equal installments on the last day of each quarter, but for partial
quarter the retainer fee paid shall be pro-rated for the number of days the
Director serves as director.

    

    (ii)  If
the Director is required to travel in order to attend meetings of the Board that
the Director attends in person, the Company shall reimburse the Director for
reasonable travel expenses.

    

    4.     EXPENSES.
In addition to the compensation provided in paragraph 3 hereof, the Company will
reimburse the Director for pre-approved reasonable business-related expenses
incurred in good faith in the performance of the Director’s duties for the
Company. Such payments shall be made by the Company upon submission by the
Director of a signed statement itemizing the expenses incurred. Such statement
shall be accompanied by sufficient documentary matter to support the
expenditures.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    5.    
CONFIDENTIALITY. The Company and the Director each acknowledge that, in
order for the intents and purposes of this Agreement to be accomplished, the
Director shall necessarily be obtaining access to certain confidential
information concerning the Company and its affairs, including but not limited to
business methods, information systems, financial data and strategic plans which
are unique assets of the Company ("Confidential
Information"). The Director covenants not to, either directly or
indirectly, in any manner, utilize or disclose to any person, firm, corporation,
association or other entity any Confidential Information.

    

    6.    
NON-COMPETE. During the term of this Agreement and for a period of twelve
(12) months following the Director’s removal or resignation from the Board of
Directors of the Company or any of its subsidiaries or affiliates (the "Restricted
Period"), the Director shall not, directly or indirectly, (i) in any
manner whatsoever engage in any capacity with any business competitive with the
Company’s current lines of business or any business then engaged in by the
Company, any of its subsidiaries or any of its affiliates (the "Company's
Business") for the Director’s own benefit or for the benefit of any
person or entity other than the Company or any subsidiary or affiliate; or (ii)
have any interest as owner, sole proprietor, shareholder, partner, lender,
director, officer, manager, employee, consultant, agent or otherwise in any
business competitive with the Company's Business; provided, however, that the
Director may hold, directly or indirectly, solely as an investment, not more
than two percent (2%) of the outstanding securities of any person or entity
which are listed on any national securities exchange or regularly traded in the
over-the-counter market notwithstanding the fact that such person or entity is
engaged in a business competitive with the Company's Business. In addition,
during the Restricted Period, the Director shall not develop any property for
use in the Company’s Business on behalf of any person or entity other than the
Company, its subsidiaries and affiliates.

    

    7.    
TERMINATION. With or without cause, the Company may terminate this
Agreement at any time upon ten (10) days’ written notice and the Director may
terminate this Agreement at any time upon thirty (30) days’ written notice, and
the Company shall be obligated to pay to the Director the compensation and
expenses due up to the date of the termination. Nothing contained herein or
omitted here from shall prevent the shareholder(s) of the Company from removing
the Director with immediate effect at any time for any reason.

     

    8.    
AMENDMENT AND
WAIVER.  No supplement, modification or amendment of this
Agreement will be binding unless executed in writing by both
parties.  No waiver of any provision of this Agreement on any occasion
will be deemed to constitute or will constitute a waiver of that provision on
any other occasion or a waiver of any other provision of this
Agreement.

    

    9.     NOTICE. Any
and all notices referred to herein shall be sufficient if furnished in writing
at the addresses specified on the signature page hereto or, if to the Company,
to the Company’s address as specified in filings made by the Company with the
U.S. Securities and Exchange Commission.

    

    10.     GOVERNING
LAW. This Agreement shall be interpreted in accordance with, and the
rights of the parties hereto shall be determined by, the laws of the State of
New York.

    

    11.     ASSIGNMENT.
The rights and benefits of the Company under this Agreement shall be
transferable, and all the covenants and agreements hereunder shall inure to the
benefit of, and be enforceable by or against, its successors and assigns. The
duties and obligations of the Director under this Agreement are personal and
therefore the Director may not assign any right or duty under this Agreement
without the prior written consent of the Company.

    

    12.    
MISCELLANEOUS. If any provision of this Agreement shall be declared
invalid or illegal, for any reason whatsoever, then, notwithstanding such
invalidity or illegality, the remaining terms and provisions of this Agreement
shall remain in full force and effect in the same manner as if the invalid or
illegal provision had not been contained herein.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    13.     ARTICLE
HEADINGS. The article headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

    

    14.    
COUNTERPARTS. This Agreement may be
executed in any number of counterparts, all of which taken together shall
constitute one instrument. Facsimile execution and delivery of this Agreement is
legal, valid and binding for all purposes.

    

    15.     ENTIRE
AGREEMENT. Except as provided elsewhere herein, this Agreement sets forth
the entire agreement of the parties with respect to its subject matter and
supersedes all prior agreements, promises, covenants, arrangements,
communications, representations or warranties, whether oral or written, by any
officer, employee or representative of any party to this Agreement with respect
to such subject matter.

    

    [Signature Page
Follows]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the
parties hereto have caused this Independent Director Agreement to be duly
executed and signed as of the day and year first above written.

    
      
         

        CHINA
POWER EQUIPMENT, INC

      

       

      By:

      
        

      

    

    
      Name:  Yongxing
Song

    

    
      Title:  Chief
Executive Officer

       

    

     

    
      INDEPENDENT
DIRECTOR

       

       

      
        
          
            

          

        

        [Name]

      

    

    
      [Address]DRESSER-RAND
GROUP INC.

      GRANT
NOTICE FOR 2008 STOCK INCENTIVE PLAN

      PERFORMANCE
RESTRICTED STOCK UNITS

       

      FOR GOOD
AND VALUABLE CONSIDERATION, Dresser-Rand Group Inc. (the “Company”), hereby
grants to Grantee named below the number of performance restricted stock units
specified below (the “Award” or the “Performance RSUs”), upon the terms and
subject to the conditions set forth in this Grant Notice, the Dresser-Rand Group
Inc. 2008 Stock Incentive Plan (the “Plan”) and the Standard Terms and
Conditions (the “Standard Terms and Conditions”) adopted under such Plan and
provided to Grantee, each as amended from time to time. Each performance
restricted stock unit subject to this Award represents the right to receive one
share of the Company's Common Shares, subject to the conditions set forth in
this Grant Notice, the Plan and the Standard Terms and Conditions. This Award is
granted pursuant to the Plan and is subject to and qualified in its entirety by
the Standard Terms and Conditions. The Standard Terms and Conditions may be
accessed through Grantee's personal Morgan Stanley Smith Barney Benefit Access
account in the Plan Documents section.

      

      
        
          
            
              
                
                  
                    	
                            Name
      of Grantee:

                          	 
      
	
                            Grant
      Date:

                          	 
      
	
                            Number
      of performance restricted

                          	
                            ______________ (Target) (“Target
      Award”)

                          
	
                            stock
      units subject to the Award at

                          	 
      
	
                            target
      and maximum performance:

                          	
                            ______________
      (Maximum)

                          

                  

                

              

            

          

        

      

       

      By
accepting this Grant Notice, Grantee acknowledges that he or she has received
and read, and agrees that this Award shall be subject to, the terms of this
Grant Notice, the Plan and the Standard Terms and Conditions.

      

      
        
          	
                  DRESSER-RAND
      GROUP INC.

                	 
      	 
      
	 
      	 
      	
                  Grantee
      Signature

                
	
                  By

                	 
      	 
      	 
      
	
                  Title:  

                	 
      	 
      	
                  Address
      (please print):

                
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      

        

      

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      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, 2010, 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, 2011

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	
                                              Company’s Relative TSR for
      period

                                              from January 1, 2010 through

                                              December 31, 2010

                                            	 	
                                              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, 2012

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	
                                              Company’s Relative TSR for
      period

                                              from January 1, 2010 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, 2010 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%	 

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                *

              	
                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%).

              

      

       

      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,
      2010 through the last day of the applicable year (or, in the event of
      Retirement in 2010, death or Disability, the date of such Retirement,
      death or Disability).  For this purpose, any dividends paid
      between January 1, 2010 and the last day of the applicable year (or, in
      the event of Retirement in 2010, death or Disability, the date of such
      Retirement, death or Disability) with respect to a Common Shares (or for
      each member of the Peer Group, a share of the class of common stock most
      widely traded) shall reflect cumulate rate of return utilizing price
      appreciation plus reinvestment of dividends and the to the Average Stock
      Price as of the last day of the applicable year (or, in the event of
      Retirement in 2010, death or Disability, the date of such Retirement,
      death or Disability) so that they are reflected as an increase in such
      Average Stock Price.  In addition, TSR shall be appropriately
      adjusted 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, 2010, without
      such former Peer Group member.

              

      

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                ·

              	
                “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, 2010 or,
      as applicable, the last day of the applicable calendar year (or, in the
      event of Retirement in 2010, death or Disability or Retirement, the date
      of such Retirement, death or
Disability).

              

      

       

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

       

      
        	
                 
      

              	
                (i)

              	
                if
      the Grantee’s separation from service is due to death or Disability before
      December 31, 2012, 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 2010, a pro-rate portion of the Target Award for 2010 shall
      vest, or (y) during calendar year 2011 or 2012, the Award shall continue
      to vest in the same manner as specified above (i.e., based on actual
      performance); 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, 2010 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 2010, 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).

       

      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

          
            

          

        

        
           

        

      

      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).

       

      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.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      9.           RESTRICTED
ACTIVITIES

       

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

       

      
        	
                 
      

              	
                A.

              	
                By
      accepting the Performance RSU, the Grantee acknowledges and agrees that
      (i) the Company is engaged in a highly competitive business; (ii) the
      Company has expended considerable time and resources to develop goodwill
      with its customers, vendors, and others, and to create, protect, and
      exploit its Confidential Information (as defined in Section 18.B below);
      (iii) the Company must continue to prevent the dilution of its goodwill
      and unauthorized use or disclosure of its Confidential Information to
      avoid irreparable harm to its legitimate business interests; (iv) the
      Grantee's participation in or direction of the Company's day-to-day
      operations and strategic planning are an integral part of the Company's
      continued success and goodwill; (v) in the period between the Grantee's
      notice to the Committee of the Grantee's Retirement and the date of the
      Grantee's Retirement (the "Transition Period"), the Grantee will
      participate in identifying a successor, transitioning his or her
      responsibilities to and training a successor, and engaging in other
      transition activities (the "Transition Process"); (vi) given the Grantee's
      position and responsibilities, including during the Transition Period, he
      or she necessarily will be relying on and/or creating Confidential
      Information that belongs to the Company and enhances the Company's
      goodwill; during the Transition Process will be transmitting Confidential
      Information to his or her successor; and in carrying out his or her
      responsibilities, including during the Transition Process, the Grantee in
      turn will be relying on the Company's goodwill and the disclosure by the
      Company to him or her of Confidential Information; (vii) the Grantee will
      have access to Confidential Information, including concerning the
      Transition Process, that could be used by any competitor of the Company in
      a manner that would irreparably harm the Company's competitive position in
      the marketplace and dilute its goodwill; (viii) the Grantee's engaging in
      any of the Restricted Activities during the Restriction Period would
      result in the inevitable disclosure or use of Confidential Information for
      the Competitor's benefit or to the detriment of the Company; (ix) the
      Grantee will return to the Company upon Retirement all the Confidential
      Information, in whatever form or media and all copies thereof, in his or
      her possession, custody, or control; (x) by giving advance notice of his
      or her Retirement, the Grantee represents that he or she will not engage
      in the Restricted Activities; (xi) the Company is relying on such
      representation in providing the Grantee continuing access to Confidential
      Information and authorizing him or her to engage in the Transition Process
      and other activities that will create new and additional Confidential
      Information during the Transition Period; and (xi) absent the Grantee's
      agreement to this Section 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.

              

      

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                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 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;

              

      

       

      
        	
                 
      

              	
                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.

              

      

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                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 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 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.

              

      

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      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.

       

      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.

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      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.

       

      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).

              

      

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                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.

              

      

       

      
        	
                 
      

              	
                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

              

      

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                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.

       

      
        	
                 
      

              	
                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)

      
        
           

        

        
          14

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