Document:

exv10w4

 

Exhibit 10.4

SECOND AMENDMENT TO

COOPER INDUSTRIES, LTD.

AMENDED AND RESTATED

DIRECTORS’ RETAINER FEE STOCK PLAN

(April 1, 2003 Restatement)

WHEREAS, the Corporation maintains the Cooper Industries, Ltd. Amended and Restated Directors’
Retainer Fee Stock Plan (the “Plan”); and

WHEREAS, the Plan currently expires on April 30, 2008 and it is advisable to extend the term of the
Plan;

RESOLVED, effective as of February 12, 2008, the second sentence in Section 14 of the Plan is
hereby amended to read as follows:

“Unless terminated earlier pursuant to Section 15, the term of the Plan shall
expire on April 30, 2016.”

Executed as of this 12th day of February 2008.

	 	 	 	 	 
	COOPER INDUSTRIES, LTD.	 	 
	 
	 	 	 	 
	By:

	 	/s/ James P. Williams	 	 
	 

	 	 

     James P. Williams
	 	 
	 

	 	     Senior Vice President	 	 
	 

	 	     Human Resourcesexv10w3

 

Exhibit 10.3

TRICO INCENTIVE BONUS PLAN

2008

     This Trico Marine Services, Inc. Annual Incentive Plan (the “Plan”) is adopted by Trico Marine
Services, Inc., a Delaware corporation (the “Company”). The terms of the Plan have been approved
by the Company’s Board of Directors and are as follows:

I.    Purpose

     The Plan is designed to increase shareholder value through effective use of performance-based
bonus awards. The Plan is intended to advance the best interests of the Company and its
subsidiaries by providing key employees with additional incentives through the grant of cash awards
based on the performance of the Company and the individual employee, thereby increasing the
personal stake of such employees in the continued success and growth of the Company and encouraging
them to remain in the employ of the Company.

II.    Term

     The effective date of this Plan is January 1, 2006. The Plan will remain in effect for
successive fiscal years beginning on January 1, 2006 (each, a “Plan Year”).

III.    Eligibility

     The participants in this Plan shall be those employees of the Company who have been selected
by the CEO, and are approved by the Compensation Committee of the Company’s Board of Directors (the
“Compensation Committee”). Notwithstanding the foregoing, eligible employees must have been
full-time employees with the Company or any of its subsidiaries for at least three months of the
Plan Year and remain employed on a full-time basis through the bonus payment date for such Plan
Year. Directors who are not employees of the Company shall not be eligible to participate in the
Plan.

IV.    Change in Eligibility Status

     In making decisions regarding employees’ participation in the Plan, the CEO may consider any
factors that he or she may consider relevant. The following guidelines are provided as general
information regarding employee status changes upon the occurrence of the events described below,
provided that recommendation to include an employee in the Plan originates from the CEO:

	 	(a)	 	New hire, Transfer, Promotion. A newly hired, transferred or
promoted employee selected and approved as a Participant in the Plan after March 1
of the Plan Year may participate in the Plan on a pro rata basis as of the date the
Participant was approved into the Plan. A newly hired, transferred or promoted
employee selected and approved as a Participant in the Plan prior to March 1 of the
Plan Year may participate based on a full Plan Year.

3200 Southwest Freeway, Suite 2950 • Houston, Texas 77057 • (713) 780-9926 • Fax (713) 780-0062

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	 	(b)	 	Demotion. An Incentive Award will generally not be made to an
employee who has been demoted during the Plan Year because of performance.
	 
	 	(c)	 	Termination. An Incentive Award will generally not be made to
any Participant whose services are terminated prior to the payment of the Incentive
Award for reasons of misconduct, failure to perform or other cause.
	 
	 	(d)	 	Resignation. An Incentive Award will generally not be made to
any Participant who resigns for any reason, including retirement, before the
Incentive Award is made. However, if the Participant has voluntarily terminated
his or her employment with the Company’s consent, the Participant may be considered
for a pro rata Incentive Award, provided the Participant otherwise qualifies for
the Incentive Award.
	 
	 	(e)	 	Death and Disability. A Participant whose status as an active
employee is changed prior to the payment of the Incentive Award for any reason
other than the reasons cited above may be considered for a pro rata Incentive
Award, provided the Participant otherwise qualifies for the Incentive Award. In
the event that an Incentive Award is made on behalf of an employee who has
terminated employment by reason of death, any such payments or other amounts due
will generally be paid to the Participant’s estate.

     The above guidelines are subject to the terms of any applicable severance or similar
agreements. Nothing in the Plan shall confer any right to any employee to continue in the employ
of the Company.

V.    Performance-Based Bonus Awards

     Subject to the following provisions, the CEO will determine, and recommend for approval by the
Compensation Committee, a Performance-Based Bonus Award (the “Award”) for selected employees. Each
grant of an Award shall specify the amount and nature of the Award to be received by the employee
subject to satisfaction of specified “Incentive Opportunities” within a specified “Performance
Period.”

(a)    Performance Period. The Performance Period with respect to each Award shall be
the period of time within which the Incentive Opportunities relating to the Award are to be
achieved. Unless otherwise specified, the Performance Period shall be the then-current Plan
Year relating to the granting of the Award.

(b)    Incentive Opportunities. The CEO will determine, and recommend for approval by
the Compensation Committee, Incentive Opportunities for each Participant. The Incentive
Opportunities will be defined as Incentive Opportunity Zones that represent a range of
threshold, target and maximum performance outcomes for which incremental increases in
performance will result in incremental increases in the Award. Each Incentive Opportunity
Zone will include threshold, target and maximum incentive opportunities. The Participant’s
target incentive opportunity will be based on the Participant’s role and responsibilities,
and will be expressed as a percentage of the Participant’s base salary. The Participant’s
threshold and maximum incentive opportunities will be expressed as a Payout Multiple of the
target incentive opportunity and will also be based on the Participant’s role and
responsibilities. The tables set forth on Exhibit A outline the target Payout
Multiples for certain Participant categories.

The target incentive opportunity as a multiple of base salary, and the resulting threshold
and maximum opportunities will be determined and approved in writing and kept on file for
each Participant.

3200 Southwest Freeway, Suite 2950 • Houston, Texas 77057 • (713) 780-9926 • Fax (713) 780-0062

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(c)    Performance Goals. Each Participant shall have specific performance goals (the
“Performance Goals”) determined for his or her position for the Plan Year. These
Performance Goals will be based on certain financial and non-financial performance measures
that support the approved business plan of the Company, and should identify how the
Participant will support the achievement of such goals.

     Two performance categories will generally be used for each Participant:

	 	1.	 	Corporate Performance — There will be one or more performance
measures with equal or different weights that may be used within this category,
including without limitation any one or more of the performance criteria
described below:

	 	•	 	Safety
	 
	 	•	 	Corporate EBITDA versus Plan;

	 	 	 	EBITDA is defined as :
	 
	 	 	 	Charter Hire Revenue + Other Vessel Income — Direct Vessel Operating
Expenses — Classification Costs — General and Administrative Costs

	 	•	 	Return on Capital versus Plan
	 
	 	 	 	Return on Capital is defined as:

     Net Income + Tax Adjusted Net Interest Expense 

(Annual Average)Short term debt + Long term debt + Equity + Minority Interest — Unrestricted Cash and Cash Equivalents

The Performance Goals for these financial measures will generally be based on the Company’s
financial plan for the relevant Plan Year as approved by the Board of Directors.

	 	2.	 	Individual Performance — The Individual Performance Goals will
generally be based on those established using the Company’s annual performance
appraisal system.

The target mix and weighting of the Performance Goals for each Participant will vary
depending on the Participant’s role and responsibilities, as set forth on Exhibit B.

For the financial performance measures, threshold, target and maximum Performance Goals will
be established and aligned within the Participant’s applicable Incentive Opportunity Zone as
defined above. Straight line interpolation shall be used to determine the actual
performance of each financial measure. The threshold, target and maximum Performance Goals
for these financial measures, based on the Company’s plan for 2008 are set forth on
Exhibit C.

The threshold, target and maximum individual Performance Goals will be based on how well the
Participant met the goals established using the Company’s annual performance management
system. The Individual Performance Goals will be aligned within the Participant’s
applicable Incentive Opportunity Zone. While the interpretation of how well the Individual
Performance Goals are met will be more subjective than for financial measures, the following
descriptions will be used to interpret individual performance:

	 	1.	 	Exceeds Expectations — Defined as performance that
consistently exceeds established expectations regarding the Participant’s key
individual goals.

3200 Southwest Freeway, Suite 2950 • Houston, Texas 77057 • (713) 780-9926 • Fax (713) 780-0062

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	 	 	 	Performance at this level creates new standards of performance. Individual
awards near or at the maximum will be achieved if the participant has exhibited
“Exceeds Expectations” performance.
	 
	 	2.	 	Meets Expectations - Defined as performance that consistently
meets and often exceeds established expectations regarding the Participant’s
key individual goals. Individual award at target will be achieved if the
Participant has exhibited “Meets Expectations” performance.
	 
	 	3.	 	Meets Most Expectations - Defined as performance that often
meets established expectations regarding the Participant’s key individual
goals, but also requires some development. Individual award near or at the
minimum will be achieved if the Participant has exhibited “Meets Most
Expectations” performance.
	 
	 	4.	 	Does Not Meet Expectations - Defined as performance that does
not consistently meet established expectations regarding the Participant’s key
individual goals and requires significant development. Individual award at
this level will result in no individual annual incentive payment for the
Participant.

(d)    Minimum Performance Requirements. There are two minimum performance
requirements in order to receive an Award in accordance with the Plan:

	 	1.	 	The Minimum Financial Performance Target level set forth on
Exhibit C must be achieved for Participants to be eligible for the
Award.
	 
	 	2.	 	Individual Performance at “Meets Most Expectations” or better.

(e) Distributions. To the extent it has been earned, an Award shall be distributed
in cash, and shall be paid in lump sum to the employee following approval by the Board of
Directors of the Company’s Plan Year financial statements. The payment of such Award shall
not be assigned, transferred, mortgaged or otherwise disposed of prior to actual receipt,
and any such attempt shall be null and void.

VI.    Administration of the Plan

     This Plan shall be administered by the Compensation Committee with oversight by the Board of
Directors. The Compensation Committee shall have the authority to interpret the provisions of this
Plan and make final decisions with respect to the entitlement of any employee to an Award. The
Committee shall also have the authority to review and approve any proposed amendments to the Plan
throughout the Plan Year. The Committee retains the right to discontinue or amend this Plan at any
time. The Committee may use discretion to adjust the Award levels to account for events that
impact the ability to meet the Incentive Opportunities described in Section V. The CEO will be
responsible for the interpretation and the day-to-day management of the Plan. The CEO shall also
make recommendations to the Committee for review and approval.

     Nothing in this Plan is to be considered a guarantee of an Award. Any decisions by the
Compensation Committee, on behalf of the Board of Directors, are final and binding on all parties.

VII.    Exemption from Liability; Indemnification

3200 Southwest Freeway, Suite 2950 • Houston, Texas 77057 • (713) 780-9926 • Fax (713) 780-0062

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     The members of the Compensation Committee and the persons acting on behalf of the Compensation
Committee shall be free from liability for their acts, omissions, and conduct in the administration
of the Plan, except for those acts, omissions and conduct resulting from willful misconduct or lack
of good faith.

     The Company shall indemnify each member of the Compensation Committee, the persons acting on
behalf of the Compensation Committee and any other employee, officer or director of the Company
against any claims, loss, damage, expense and liability, by insurance or otherwise, reasonably
incurred by the individual in connection with any action or failure to act by reason of performance
of an authorized duty or responsibility for or on behalf of the Company pursuant to the Plan unless
the same is judicially determined to be the result of the individual’s gross negligence or willful
misconduct. The foregoing right shall be in addition to any other rights to which such person may
be entitled to as a matter of law.

VIII.    Additional Provisions

(a)    Amendments. The Board of Directors may, in its sole discretion, discontinue
the Plan at any time, or amend it from time to time. The Compensation Committee shall have
the authority to amend any grant to include any provision which, at the time of such
amendment, is authorized under the terms of the Plan; however, after the end of any plan
year, no award that has been earned and not paid may be revoked.

(b)    No Guaranty of Employment. The grant of an Award under the Plan shall not
constitute an assurance of continued employment during the Performance Period.

(c)    Withholding. Payments under the Plan shall be net of an amount sufficient to
satisfy any federal, state or local withholding tax liability.

(d)    Governing Law. This Plan shall be governed and construed under the laws of the
State of Texas.

3200 Southwest Freeway, Suite 2950 • Houston, Texas 77057 • (713) 780-9926 • Fax (713) 780-0062

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Exhibit A

Target Payout Multiples

     The following tables set forth the target Payout Multiples for certain Participant categories
(where “X” equals the target incentive opportunity as a percentage of base salary):

	•	 	Chief Executive Officer — responsible for overall financial performance of the Company:

	 	 	 	 	 
	Threshold Multiple of Target	 	Target	 	Maximum Multiple of Target
	 
	.50X
	 	1.00X
	 	2.00X

	•	 	Named Executive Officers— includes executives with direct profit and loss or overall
financial responsibilities for the Company at the corporate level:

	 	 	 	 	 
	Threshold Multiple of Target	 	Target	 	Maximum Multiple of Target
	 
	0.25X
	 	.50X
	 	1.00X

	•	 	Senior Management — includes employees senior level management responsibilities.
responsibilities:

	 	 	 	 	 
	Threshold Multiple of Target	 	Target	 	Maximum Multiple of Target
	 
	0.15X
	 	.30X
	 	.60X

	•	 	Level 1 Key Employees — includes employees with management responsibilities and indirect
profit and loss responsibilities:

	 	 	 	 	 
	Threshold Multiple of Target	 	Target	 	Maximum Multiple of Target
	 
	0.10X
	 	.20X
	 	.40X

	•	 	Level 2 Key Employees — includes employees with indirect profit and loss responsibilities:

	 	 	 	 	 
	Threshold Multiple of Target	 	Target	 	Maximum Multiple of Target
	 
	0.05X
	 	.10X
	 	.20X

3200 Southwest Freeway, Suite 2950 • Houston, Texas 77057 • (713) 780-9926 • Fax (713) 780-0062

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Exhibit B

Target Mix and Weighting of Performance Goals

Target mix and weighting of the Performance Goals for certain Plan Participants:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Performance Goals Weighting
	 	 	 	 	 	 	Corporate	 	Return on	 	 	 	 
	 	 	 	 	 	 	EBITDA	 	Capital vs.	 	 	 	 
	Position	 	Safety	 	Vs. Plan	 	Plan	 	Individual	 	Total
	 
	President & CEO
	 	 	20	%	 	 	35	%	 	 	25	%	 	 	20	%	 	 	100	%
	Named Executive Officers
	 	 	20	%	 	 	35	%	 	 	25	%	 	 	20	%	 	 	100	%
	Senior Management
	 	 	20	%	 	 	35	%	 	 	25	%	 	 	20	%	 	 	100	%
	Designated Level 1
Employees
	 	 	20	%	 	 	35	%	 	 	25	%	 	 	20	%	 	 	100	%
	Designated Level 2
Employees
	 	 	20	%	 	 	35	%	 	 	25	%	 	 	20	%	 	 	100	%

3200 Southwest Freeway, Suite 2950 • Houston, Texas 77057 • (713) 780-9926 • Fax (713) 780-0062

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Exhibit C

Target Performance Goals

     The following are threshold, target and maximum Performance Goals for financial measures to be
utilized in connection with the Plan:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Performance Goals
	 	 	 	 	Threshold	 	Target (Budget)	 	Maximum
	Performance Measure	 	Rate	 	Rate	 	Rate
	 
	Safety

	 	— ESQS (1) 	 	 	 	 	 	 
	•

	 	Environment
	 	Increase in number
of incidents from
2007 by 20%
	 	Same number of
incidents as in
2007
	 	Reduction by 20% of
incidents from 2007
	•

	 	Safety (TRIR)
	 	10% increase from

Target TRIR
	 	Target TRIR
	 	10% reduction from

Target TRIR
	•

	 	Safety

(Operations)
	 	Increase in number
of incidents from
2007 by 20%
	 	Same number of
incidents as in
2007
	 	Reduction by 20% of
incidents from 2007
	•

	 	Quality
	 	N/A
	 	No major

non-conformities
	 	N/A
	•

	 	Security
	 	N/A
	 	No recordable

security incidents
	 	N/A

 

			
	 	 	(1) Safety bonus would be forfeited in the event of a vessel related accidental death.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Threshold	 	Target (Budget)	 	Maximum
	Performance Measure	 	$ (millions)	 	% of Target	 	$ (millions)	 	% of Target	 	$ (millions)	 	% of Target
	 
	Corporate EBITDA
	 	 	68.4	 	 	 	75	%	 	 	91.2	 	 	 	100	%	 	 	114.0	 	 	 	125	%

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Threshold	 	Target (Budget)	 	Maximum
	Performance Measure	 	%	 	% of Target	 	%	 	% of Target	 	%	 	% of Target
	 
	Return on Capital
	 	 	4.9	 	 	 	75	%	 	 	6.6	 	 	 	100	%	 	 	8.2	 	 	 	125	%

     Pursuant to Section V(d) of the Plan, the Minimum Financial Performance Target level for
Participants to be eligible for Annual Incentives is at least 75% of budgeted Corporate EBITDA.

3200 Southwest Freeway, Suite 2950 • Houston, Texas 77057 • (713) 780-9926 • Fax (713) 780-0062

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