Document:

Exhibit

Exhibit 10.1
ATLANTIC CAPITAL BANCSHARES, INC.  
EXECUTIVE OFFICER LONG TERM INCENTIVE PLAN 
(AS AMENDED AND RESTATED EFFECTIVE APRIL 19, 2018)
Section 1Purpose
The purpose of this Plan is to provide an incentive for each Participant to improve the Company’s performance using the Performance Metrics set by the Committee under this Plan to measure such improvement. The Plan is also intended to align management and shareholder interests; focus Participants on the achievement of long-term results; support the growth and profitability of the Company and the Bank; and retain executive talent.
Section 2    Definitions
In addition to other terms defined herein or in an applicable Award Agreement, the following terms shall have the meanings given:
“Affiliate” means any majority-owned subsidiary or other entity controlled by, controlling or under common control with the Company, including but not limited to the Bank.
“Applicable Law” means any applicable laws, rules or regulations, including the listing or other rules of any applicable stock exchange.
“Award” means a bonus opportunity granted by the Committee to a Participant for a Bonus Period.
“Award Agreement” means the document which evidences the terms and conditions of an Award granted to a Participant under this Plan for a Bonus Period.  An Award Agreement may, in the Committee’s discretion, be in the form of (i) an award certificate and/or (ii) an award agreement used with respect to a Stock Plan, if and to the extent that the Plan Award, to the extent earned, will be settled in shares of Common Stock (or cash) issued under the Stock Plan.
“Bank” means Atlantic Capital Bank, N.A., a Georgia banking corporation, and any successor to such corporation. 
“Base Salary” means, unless the Committee determines otherwise, a Participant’s annual base salary as approved by the Board or the Committee, as in effect on January 1st of the first year of a Bonus Period.
“Beneficiary” means the individual designated by a Participant on the form provided for this purpose by the Company to receive the Bonus, if any, payable on his or her behalf if the Participant dies before his or her Bonus is paid or, if no individual is so designated or if no individual so designated survives the Participant, the Participant’s estate.
“Board” means the Board of Directors of the Company.

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“Bonus” means a bonus, if any, payable under the terms of this Plan.
“Bonus Period” means, unless the Committee determines otherwise, a period of more than one calendar year, as established by the Committee and as set forth in an Award Agreement.
“Change in Control” means a “Change in Control” as defined in, and determined in accordance with the terms of, the 2015 Plan or other applicable Stock Plan (as determined by the Committee).
“Committee” means the Compensation Committee of the Board (or a subcommittee thereof) and/or the full Board (or a committee thereof) if and to the extent that the Board has assumed authority to administer the Plan. It is intended that Compensation Committee members shall be independent under applicable standards to the extent required by Applicable Law.
“Company” means Atlantic Capital Bancshares, Inc., a Georgia corporation, and any successor to such corporation.
“Common Stock” means the Company’s common stock, $1.00 par value, or any successor securities thereto.
“Disability” means, unless otherwise determined by the Committee or provided in an Award Agreement, a Participant’s inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death, or which has lasted or can be expected to last for a continuous period of not less than 12 months.  The Committee has authority to determine if a Disability has occurred.  
“Maximum Bonus Performance Level” means the level of performance which will result in the payment of the maximum Bonus payable with respect to a particular Performance Metric or Performance Metrics.
“Participant” means an employee of the Company or an Affiliate of the Company who is designated as a participant in the Plan by the Committee.
“Plan” means this Atlantic Capital Bancshares, Inc. Executive Officer Long Term Incentive Plan, as amended and restated effective April 19, 2018, and as it may be further amended and/or restated from time to time.
“Performance Metric” means a performance-related metric set by the Committee to measure the performance on which a Bonus (or portion thereof) under this Plan will be based.
“Retirement” means, unless otherwise determined by the Committee or provided in an Award Agreement, a Participant’s retirement pursuant to the terms of the Company’s retirement policy for executives if the Committee and the Participant consent to such retirement.  For clarity, “Retirement” shall be defined as provided under the Stock Plan or applicable Stock Plan award agreement if and to the extent an Award is settled in shares of Common Stock. 

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“Stock Plan” means the Atlantic Capital Bancshares, Inc. 2015 Stock Incentive Plan (the “2015 Plan”), the Atlantic Capital Bancshares, Inc. 2006 Stock Incentive Plan (the “2006 Plan”), or any successor plan, in each case as amended and/or restated.
“Threshold Bonus Performance Level” means the minimum level of performance which must be attained to result in the payment of any Bonus with respect to a particular Performance Metric or Performance Metrics.
Section 3    Performance Metrics; Eligibility
3.1    General.  The Committee shall select the employees of the Company or any Affiliate who shall be eligible to participate in the Plan. The Bonus, if any, payable to a Participant for a Bonus Period shall be based on the extent to which the Committee determines in its discretion that a Performance Metric, or the Performance Metrics, applicable to a Participant is, or are, met for a Bonus Period.
3.2    Performance Metrics; Bonus Periods.  The Committee shall set the Performance Metric, or the Performance Metrics, for each Participant for each Bonus Period. The Committee may set a Performance Metric based on individual performance, business unit, division or similar performance or Company-wide performance or any combination of individual, business unit, division (or similar) or Company-wide performance metrics. Performance Metrics may be established at such levels and on such terms as the Committee may determine, in its discretion, including but in no way limited to on an absolute basis, in relation to performance in a prior period, relative to one or more peer (or similar) group companies or indices, on a per share and/or share per capita basis, on a pre-tax or after-tax basis and/or any combination thereof.  The Committee acting in its discretion shall determine at the end of each Bonus Period the level of performance achieved with respect to each Performance Metric for such Bonus Period. The Committee shall establish each Bonus Period.  In the Committee’s discretion, and subject to Applicable Law, a Participant who is employed by the Company or an Affiliate, or selected to participate in the Plan, for only a portion of a Bonus Period may be eligible for payment of a pro rata Bonus, if and to the extent the Bonus is otherwise earned, based on a fraction, the numerator of which will be the number of full calendar months that the Participant was employed by the Company or an Affiliate or selected to participate in the Plan (as determined by the Committee), and the denominator or which will be the number of full calendar months in the Bonus Period, or may be eligible on such other bases as may be determined by the Committee (taking into account any Code Section 162(m) considerations if and to the extent applicable).  
3.3    Threshold Bonus Performance Level and Maximum Bonus Performance Level.  The Committee shall establish a Threshold Bonus Performance Level for each Performance Metric, and no Bonus payment will be made with respect to that Performance Metric if the Threshold Bonus Performance Level is not achieved. The Committee shall also establish a Maximum Bonus Performance Level for each Performance Metric, and no additional Bonus payment will be made for that Performance Metric for performance which exceeds the Maximum Bonus Performance Level.  The Committee in its discretion may also establish additional performance levels.

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Section 4    Bonus Computation
4.1    General.  Except as expressly provided in an Award Agreement, no Bonus will be payable to a Participant under this Plan unless the performance with respect to a Performance Metric set for the Participant equals or exceeds the Threshold Bonus Performance Level for that Performance Metric, as determined by the Committee.  
4.2    Bonus.  A Participant’s Bonus opportunity, if any, under this Plan may be expressed as a percentage of his or her Base Salary, a fixed dollar amount, a fixed number of shares of Common Stock or upon such other bases as may be determined by the Committee.  The Committee shall determine if and to the extent that a Participant has earned a Bonus for any Bonus Period.
4.3    Bonus Break-Points.  The Committee may establish at its discretion break-points regarding amounts payable as a Bonus for performance at any level between the Threshold Bonus Performance Level and the Maximum Bonus Performance Level for a Performance Metric as the Committee deems appropriate under the circumstances so that the Bonus, if any, payable to a Participant with respect to such Performance Metric is computed on a basis other than a straight-line interpolation between performance at the Threshold Bonus Performance Level and performance at the Maximum Bonus Performance Level. If no such break-points are established (and unless the Committee determines otherwise), then the amount of any Bonus based on performance at any level between the Threshold Bonus Performance Level and the Maximum Bonus Performance Level for any Performance Metric shall be determined by interpolation.  
Section 5    Bonus Payments
5.1    Conditions to Payment.
(a)    General Rule.  A Participant will be eligible for the payment of a Bonus, if any, determined under Section 4 if he or she is employed by the Company or an Affiliate on the date the Bonus is paid (unless the Committee determines otherwise). Subject to Section 5.1(b) (and unless the Committee determines otherwise), a Participant will forfeit any right to the payment of any Bonus under this Plan if his or her employment with the Company or an Affiliate terminates for any reason whatsoever before the date the Bonus is paid.  
(b)    Special Rules for Certain Terminations.  A Participant whose employment with the Company or an Affiliate is terminated at any time before the date a Bonus is paid nevertheless may, in the Committee’s discretion, be eligible for the payment of such Bonus (or a portion thereof) if his or her employment is terminated as a result of his or her Death, Disability or Retirement or is terminated under other circumstances which the Committee in its discretion determines is comparable to such types of terminations; provided, however, that, (i) the Bonus shall be paid only if and to the extent that the Bonus is otherwise deemed earned; and (ii) if a Participant’s employment so terminates before the end of the Bonus Period, the Bonus which would have been payable to, or on behalf of, such Participant (if he or she had been employed by the Company or an Affiliate on the date the Bonus was paid) will be pro-rated using a fraction, the numerator of which will be the number of full calendar months he or she was employed by the Company or an Affiliate during the Bonus Period and the denominator of which will be the number of full calendar months in the 

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Bonus Period, or such Bonus shall be determined on such other bases as the Committee may determine to be appropriate (taking into account any Code Section 162(m) considerations if and to the extent applicable).  
5.2    Time and Form of Payment.
(a)    Time.  Any Bonus payable under this Plan will be paid at such time as the Committee in its discretion determines that payment will be made; provided, however, that payment will (subject to Section 5, Section 6 and Section 8) be made no earlier than January 1 of the calendar year immediately following the end of the calendar year in which the Bonus Period ends and no later than March 15 of such immediately following calendar year (or otherwise in a manner intended to be exempt from, or to comply with, Code Section 409A).
(b)    Form.  A Bonus at the discretion of the Committee may be paid to, or on behalf of, a Participant in a lump sum in cash or in Common Stock or in any combination of cash and Common Stock. The Committee shall have the discretion to decide whether a particular Participant will be paid in Common Stock or in cash, or in a combination of Common Stock and cash, and the Committee shall have the discretion to make one decision with respect to one Participant or Beneficiary and a different decision with respect to another Participant or Beneficiary. If payment is made in Common Stock, the value of the Common Stock, or the process to determine such value, will be determined by the Committee. Any shares of Common Stock issued under the Plan shall be issued under the 2006 Plan, the 2015 Plan or other applicable Stock Plan (as determined by the Committee). No shares of Common Stock will be issued under this Plan.  Payments made in cash may, in the Committee’s sole discretion, be made in the form of Cash-Based Awards under the 2015 Plan or other applicable Stock Plan. Any shares of Common Stock or other benefit earned under this Plan and distributed under the 2006 Plan, the 2015 Plan or other applicable Stock Plan shall be subject to the terms and conditions of such Stock Plan and related award agreements or award certificates.
5.3    Beneficiary.  If a Participant dies before the payment of his or her Bonus, the Bonus will be paid on the Participant’s behalf to his or her Beneficiary.
5.4    Tax Withholdings.  The payment of any Bonus under this Plan will be made subject to applicable tax withholdings which may be made from a Bonus or deducted from a Participant’s other compensation.  Any Bonuses paid in the form of shares of Common Stock shall be further subject to the withholding provisions of the applicable Stock Plan and/or award agreement.
5.5    Source of Funds.  Any cash payment made under this Plan will be made from the Company’s general assets.
5.6    Creditor Status.  A Participant’s status as a creditor of the Company with respect to a claim for a Bonus under this Plan will be no higher than the status of a general and unsecured creditor of the Company.  Nothing in the Plan or related Award Agreement shall be deemed to create any fiduciary relationship between the Company and a Participant or any other person.

Section 6    Change in Control

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In the event of a Change in Control, the Committee (as constituted immediately prior to the Change in Control) shall, in its sole discretion, determine whether and to what extent the Performance Metrics have been met or shall be deemed to have been met with respect to Bonus Periods in effect for the year in which the Change in Control occurs and for any completed Bonus Period for which a determination has not yet been made regarding the extent, if any, to which Bonuses have been earned; provided, however, that, in the event any such Bonuses are settled in shares of Common Stock (or cash) issued under a Stock Plan, such Bonuses shall be subject to the terms of the relevant Stock Plan and applicable award agreement.
Section 7    Operation and Administration
The Committee acting in its discretion will be responsible for the operation and administration of this Plan, and the Committee in connection with the exercise of such discretion may interpret any provision which the Committee deems ambiguous, may cure any provision which the Committee deems defective and may take any other action which the Committee deems necessary or appropriate under the circumstances, including but not limited to making exceptions to the express terms of this Plan when called for under the terms of an employment or other agreement between the Company and a Participant. All determinations and calculations required under this Plan shall be made by the Committee and shall be binding on the Company, on each Participant and Beneficiary and on each other person who has an interest in such determination or calculation. The Committee may in its discretion delegate to the Chief Executive Officer or other officers ministerial or other administrative authority under the Plan, subject to the requirements of Applicable Law and the terms and conditions established by the Committee.
Section 8    Amendment and Termination
The Plan may be amended, suspended and/or terminated at any time by the Board; provided that (i) approval of an amendment to the Plan by the shareholders of the Company shall be required if and to the extent that shareholder approval is required by Applicable Law; and (ii) amendment or termination of the Plan shall not, without the consent of a Participant with respect to Bonus award opportunities which are outstanding at the time of such amendment or termination, be made if such action would materially adversely affect the rights of the Participant with respect to such outstanding Bonus award opportunities. For clarification, and without limiting the effect of the preceding, with respect to Bonus award opportunities which were outstanding prior to April 19, 2018 (the date of the amendment and restatement of the Plan), Participant consent shall be required if such amendments would materially adversely affect a Participant’s rights with respect to such Bonus award opportunities.   Notwithstanding the other provisions of this Section 8, the Committee shall have unilateral authority to amend the Plan (or any Bonus or Award Agreement) to the extent necessary to comply with Applicable Law or changes in Applicable Law.
Section 9    Miscellaneous
9.1    Governing Law.  This Plan shall be governed by and construed in accordance with the laws of the State of Georgia without regard to the conflict of laws provisions of any state, and in accordance with any applicable laws of the United States.

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9.2    Successors.  This Plan shall be binding on the Company, any successor to the Company (whether by contract or by operation of law) and on any Participant or Beneficiary of a Participant and on any other person who might have an interest in any Bonus.
9.3    Right of Offset.  The Company shall have the right (subject to any Code Section 409A considerations) to reduce any Bonus otherwise payable under this Plan to, or on behalf of, any Participant by the amount of any obligation which the Participant has to the Company or any Affiliate of the Company that is or has become due and payable to the Company or such Affiliate.
9.4    No Assignment.  A Participant shall not have the right to alienate or otherwise transfer or assign any interest in any Bonus to any person whomsoever absent the express written consent of the Committee, and any attempt to do so absent such express written consent shall be null and void ab initio.
9.5    Headings.  The headings to sections of this Plan are solely for the convenience of the reader and shall not be taken into account in the construction or interpretation of this Plan.
9.6    Code Section 162(m).  At the Committee’s discretion, and to the extent provided under Applicable Law, Bonuses earned under this Plan and payable under the 2015 Plan or other Stock Plan may be structured as qualified performance-based awards intended to comply with the deduction exception under Code Section 162(m). In such event, such Bonuses shall be subject to the terms and conditions applicable to awards intended to qualify for the performance-based compensation exception under the 2015 Plan or other Stock Plan, or as may otherwise be imposed under Code Section 162(m) and related regulations. Notwithstanding the foregoing, nothing in the Plan or any Stock Plan shall require that Bonuses payable under the Plan be structured to comply with Code Section 162(m), and the Committee shall have full discretion to grant Bonuses that are not intended to comply with Code Section 162(m).  
9.7    Compliance with Applicable Law.  The Company may impose such restrictions on any benefits provided under the Plan as may be required under Applicable Law. Notwithstanding any other Plan provision to the contrary, the Company shall not be obligated to make any distribution of benefits or take any other action unless such distribution or action is in compliance with Applicable Law.
9.8    Compliance with Recoupment, Ownership and Other Policies or Agreements.  Notwithstanding anything in the Plan to the contrary, the Committee may, at any time, in its discretion provide that benefits payable under the Plan shall be forfeited and/or recouped if the Participant, during employment or service or following termination of employment or service for any reason, engages in certain specified conduct, including but not limited to violation of policies of the Company or an Affiliate, breach of non-solicitation, noncompetition, confidentiality or other restrictive covenants, or other conduct by the Participant that is determined by the Administrator to be detrimental to the business or reputation of the Company or any Affiliate. In addition, without limiting the effect of the foregoing, as a condition to participation in the Plan and receipt or retention of any benefit under the Plan, the Committee may, at any time, require that a Participant agree to abide by any equity retention policy, stock ownership guidelines, compensation recovery policy and/or other policies adopted by the Company or an Affiliate, each as in effect from time to time and to the extent applicable to the Participant. Further, each Participant shall be subject to such 

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compensation recovery, recoupment, forfeiture or other similar provisions as may apply under Applicable Law.
9.9    Adjustments.  The Committee shall have authority to adjust or modify the terms of the Plan, Bonuses and/or Performance Metrics due to extraordinary items, transactions, events or developments, or in recognition of other unusual, nonrecurring or infrequent events affecting the Company or the financial statements of the Company, or in response to changes in Applicable Law or accounting principles, subject to the requirements of Applicable Law.
9.10    Code Section 409A.  Notwithstanding any other provision in the Plan to the contrary, if and to the extent that Code Section 409A is deemed to apply to the Plan or any benefit under the Plan, it is the general intention of the Company that the Plan and any such benefit shall, to the extent practicable, be construed in accordance therewith. Deferrals pursuant to an award otherwise exempt from Code Section 409A in a manner that would cause Code Section 409A to apply shall not be permitted unless such deferrals are permitted by the Committee and structured to be in compliance with or exempt from Code Section 409A. Without in any way limiting the effect of the foregoing, (i) in the event that Code Section 409A requires that any special terms, provision or conditions be included in the Plan, then such terms, provisions and conditions shall, to the extent practicable, be deemed to be made a part of the Plan, and (ii) terms used in the Plan shall be construed in accordance with Code Section 409A if and to the extent required. Further, in the event that the Plan or any benefit shall be deemed not to comply with Code Section 409A, then neither the Company, the Bank, the Board, the Committee nor its or their designees or agents shall be liable to any participant or other persons for actions, decisions or determinations made in good faith. Notwithstanding any provision to the contrary in the Plan, if a Participant is deemed on the date of his or her “separation from service” (within the meaning of Treas. Reg. Section 1.409A-1(h)) to be a “specified employee” (within the meaning of Treas. Reg. Section 1.409A-1(i)), then with regard to any payment that is required to be delayed pursuant to Code Section 409A(a)(2)(B), the portion, if any, of such payment so required to be delayed shall not be made prior to the earlier of (i) the expiration of the six (6)-month period measured from the date of his or her “separation from service,” or (ii) the date of his or her death (the “Delay Period”). Upon the expiration of the Delay Period, all payments delayed pursuant to this Section shall be paid to the Participant or his Beneficiary in a lump sum (with such payments made following the expiration of the six (6)‐month period to be made in the seventh month following the separation from service), and any remaining payments shall be made as provided in the Plan and/or Award Agreement and in a manner in accordance with (or exempt from) Code Section 409A. Whenever payments under the Plan are to be made in installments, each such installment shall be deemed to be a separate payment for purposes of Code Section 409A.
[Signature Page to Follow]

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IN WITNESS WHEREOF, the Board of Directors of Atlantic Capital Bancshares, Inc. has caused a duly authorized officer to execute this Plan on its behalf to evidence its approval of this Plan.
Atlantic Capital Bancshares, Inc.
By:  /s/ Douglas L. Williams 
Name: Douglas L. Williams
Title: President & Chief Executive Officer
Plan initially approved: April 18, 2012
Plan amended and restated October 20, 2016 to be effective: January 1, 2017
Plan further amended and restated April 19, 2018

9ex_110694.htm

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (this “Agreement”), effective as of April 19, 2018 (the “Effective Date”), is by and between GulfMark Offshore, Inc. (“GulfMark” and, together with its subsidiaries, the “Company”) and Quintin Kneen (“Executive”).

 

WHEREAS, the Company and Executive previously entered into that certain Amended and Restated Employment Agreement, dated May 11, 2017 (the “Prior Agreement”);

 

WHEREAS, GulfMark filed for relief under chapter 11 of title 11 of the United States Code in the Bankruptcy Court for the District of Delaware and was the proponent of the Amended Chapter 11 Plan of Reorganization of GulfMark Offshore, Inc. (as amended, modified or supplemented, the “Reorganization”);

 

WHEREAS, in connection with the Reorganization, the parties hereby agree that the Prior Agreement is terminated as of the Effective Date and is replaced in its entirety with this Agreement;

 

WHEREAS, GulfMark desires to continue to employ Executive, and Executive desires to continue to be employed by GulfMark; and

 

WHEREAS, the parties desire to set forth in writing the terms and conditions of their understandings and agreements in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, GulfMark hereby agrees to continue to employ Executive and Executive hereby accepts such continued employment upon the terms and conditions set forth in this Agreement:

 

1.     Employment Period.

 

(a)     Subject to Section 4, GulfMark hereby agrees to employ Executive, and Executive hereby agrees to be employed by GulfMark, in accordance with the terms and provisions of this Agreement, for the period commencing as of the Effective Date and ending on April 19, 2021 (the “Employment Period”); provided, however, that the Employment Period shall automatically be renewed and extended for an additional period of twelve (12) months commencing on April 19, 2021 and expiring on April 19, 2022, and on each successive April 19th thereafter, unless at least ninety (90) days prior to the ensuing expiration date (but no more than twelve (12) months prior to such expiration date), GulfMark or Executive shall have given written notice to the other that it or he, as applicable, does not wish to extend this Agreement (a “Non-Renewal Notice”). The term “Employment Period” as utilized in this Agreement, shall refer to the Employment Period as so automatically extended.

 

(b)     During the Employment Period, Executive shall serve as the President and Chief Executive Officer of GulfMark and, in so doing, shall report to the Board of Directors of GulfMark (the “Board”). Executive shall have supervision and control over, and responsibility for, such management and operational functions of the Company currently assigned to such positions, and shall have such other powers and duties (including, but not limited to, holding officer positions with GulfMark and one or more subsidiaries of GulfMark) as may from time to time be prescribed by the Board, so long as such powers and duties are reasonable and customary for the President and Chief Executive Officer of an enterprise comparable to the Company.

 

 

 

 

(c)     During the Employment Period, and excluding any periods of vacation and sick leave to which Executive is entitled, Executive agrees to devote substantially all of his business time to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to Executive hereunder or by the Board hereafter, to use Executive’s reasonable best efforts to perform faithfully, effectively and efficiently such responsibilities. During the Employment Period, it shall not be a violation of this Agreement for Executive to (i) serve on corporate, civic or charitable boards or committees, provided that service on any corporate board or committee shall be subject to the prior approval of the Board, (ii) deliver lectures or fulfill speaking engagements, and (iii) manage personal investments, so long as such activities do not materially interfere with the performance of Executive’s responsibilities hereunder.

 

(d)     The parties expressly acknowledge that any performance of Executive’s responsibilities hereunder shall necessitate, and the Company shall provide, access to or the disclosure of Confidential Information (as defined in Section 7(a) below) to Executive, and that Executive’s responsibilities shall include the development of the Company’s goodwill through Executive’s contacts with the Company’s customers and suppliers.

 

2.     Compensation.

 

(a)     Base Salary. GulfMark shall pay Executive an annual base salary (“Base Salary”) at the rate of $510,000 during the Employment Period. The Board may at its discretion elect to increase Executive’s Base Salary at any time if it deems an increase is warranted. Subject to Section 4(c)(ii) hereof, the Board may not decrease Executive’s annual Base Salary without his prior written approval. Base Salary shall be payable in accordance with the ordinary payroll practices of GulfMark, but in no event shall the Base Salary be paid to Executive less frequently than monthly. The term “Base Salary” as used in this Agreement shall refer to the Base Salary as it may be so adjusted from time to time.

 

(b)     Annual Bonus. With respect to each calendar year during the Employment Period, beginning with 2019, Executive shall be eligible to earn an annual bonus (the “Annual Bonus”) in an amount to be determined by the Board or a committee of the Board (“Committee”) based on performance goals established by the Board or Committee, as applicable, with Executive being eligible to earn a target bonus equal to no less than 100% of his Base Salary. Any Annual Bonus earned with regard to a particular calendar year shall be paid to Executive no later than March 15 of the following calendar year, subject to Executive’s continued employment with the Company on the actual date of payment.

 

(c)     MIP Grants. Executive shall be eligible to participate in the Company’s management incentive plan (“MIP”) in accordance with the terms thereof and as determined by the Board.

 

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(d)     2018 Cost Savings Bonus Program. As soon as reasonably practicable following the Effective Date, the Board will implement a one-time cost savings bonus program with regard to calendar year 2018 (the “Cost Savings Bonus Program”). After the Cost Savings Bonus Program is adopted by GulfMark, Executive will be eligible to participate in the Cost Savings Bonus Program with a maximum bonus opportunity equal to Executive’s full annual Base Salary (the “Maximum Bonus”), subject to the achievement of applicable performance metrics thereunder; provided, however, that Executive’s bonus amount under the Cost Savings Bonus Program will not be less than $15,000 (the “Minimum Bonus”). Notwithstanding the foregoing, in the event of a “Qualified Liquidity Event” (as such term is defined in, and determined pursuant to, the GulfMark Offshore, Inc. Management Incentive Plan, as it is in effect as of the Effective Date) during 2018 and while Executive remains employed by the Company, the Company will pay the Maximum Bonus to Executive on the date of the Qualified Liquidity Event (in lieu of any other amounts for which Executive may be eligible under the Cost Savings Bonus Program), irrespective of any applicable performance metrics. Following 2018, the Board will consider whether to adopt a similar bonus program with respect to subsequent calendar years.

 

3.     Employee Benefits.

 

(a)     During the Employment Period, GulfMark shall provide Executive with coverage under all employee pension and welfare benefit programs, plans and practices, which GulfMark makes available to its senior executives (including, but not limited to, participation in health, dental, group life, disability, retirement and all other plans and fringe benefits to the extent generally provided to such senior executives), commensurate with his position in the Company, to the extent permitted under the employee benefit plan or program, and in accordance with the terms of the program and/or plan.

 

(b)     Executive shall be entitled to vacation time in accordance with the Company’s vacation policy, as in effect from time to time. In addition, Executive shall be entitled to receive an allowance of $15,000 with respect to each full year during the Employment Period.

 

(c)     Executive is authorized to incur reasonable expenses in carrying out his duties and responsibilities under this Agreement and promoting the business of the Company, including, but not limited to, reasonable expenses for travel, lodgings, entertainment and similar items related to such duties and responsibilities, in each case in accordance with applicable Company policies. GulfMark will promptly reimburse Executive for all such expenses upon presentation by Executive of appropriately itemized and approved accounts of such expenditures, in accordance with the Company’s expense reimbursement policy; provided, however, that in no event shall the expense reimbursement be made after the last day of the taxable year following the year in which the expense was incurred by Executive, although in the event that the reimbursement would constitute taxable income to Executive, such reimbursements will be paid no later than March 15th of the calendar year following the calendar year in which the expense was incurred. No reimbursement or expenses eligible for reimbursement in any taxable year shall affect the expenses eligible for reimbursement in any other taxable year, nor may the right to receive a reimbursement of expenses be subject to liquidation or exchanged for another benefit.

 

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4.     Termination of Employment.

 

(a)     Termination without Cause or Resignation by Executive for Other than Good Reason. Unless otherwise specified in a separate provision of this Section 4, either party may terminate this Agreement and Executive’s employment for any reason after providing thirty (30) days written notice to the non-terminating party. If Executive terminates this Agreement, pursuant to this provision for any reason other than Good Reason, GulfMark will pay Executive within ten (10) business days after the Date of Termination (as defined below), (i) all accrued but unpaid Base Salary, (ii) a prorated amount of Executive’s Base Salary for accrued but unused vacation days, and (iii) yet unpaid reimbursements for any reasonable and necessary business expenses incurred by Executive prior to the Date of Termination in connection with his duties hereunder (such amounts collectively, the “Accrued Compensation and Reimbursements”). If Executive’s employment with the Company is terminated, by the Company without Cause (other than due to Executive’s death or disability) or if Executive terminates this Agreement for Good Reason (as defined below) pursuant to Section 4(c), in either case prior to the date that bonuses are paid under the Cost Savings Bonus Program, and if Executive is not entitled to receive a larger bonus payment under the Cost Savings Bonus Program, then Accrued Compensation and Reimbursements will include the Minimum Bonus (in lieu of any other amounts for which Executive may be eligible under the Cost Savings Bonus Program). Upon termination by GulfMark of this Agreement pursuant to this Section 4(a) without Cause (other than due to Executive’s death or disability), GulfMark shall pay or provide to Executive the following (subject to Section 6 hereof): (A) within ten (10) business days after the Date of Termination, the Accrued Compensation and Reimbursements; (B) on the sixtieth (60th) day following the Date of Termination, a lump sum payment (the “Severance Payment”) equal to the amount of Executive’s Base Salary (at the rate in effect hereunder as of the Date of Termination) for twenty-four (24) months; (C) a pro rata Annual Bonus in respect of the number of days that Executive was employed by the Company during the year in which the Date of Termination occurs, based on actual performance and paid at the same time Annual Bonuses are paid to other GulfMark executives generally (but in no event later than March 15th of the calendar year following the calendar year in which the Date of Termination occurs) (the “Pro Rata Bonus”); and (D) a lump-sum amount, paid on the sixtieth (60th) day following the Date of Termination, equal to the total premiums Executive would be required to pay for twelve (12) months of continuation coverage under the Company’s health benefit plans (i.e., medical, dental, and vision coverage) pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), determined using the COBRA premium rate in effect for the level of coverage that Executive had in place immediately prior to the Date of Termination (the “COBRA Payment”). Treatment of any awards under the MIP will be as provided under the terms and conditions of the MIP and the applicable individual award agreement.

 

(b)     Termination for Cause. The Company may terminate Executive’s employment at any time for Cause. Upon termination by the Company for Cause, Executive shall only be entitled to Accrued Compensation and Reimbursements, which amount shall be paid within ten (10) business days after the Date of Termination. For purposes hereof, “Cause” means any of the following:

 

(i)     Executive’s commission of theft, embezzlement, any other act of dishonesty relating to his employment or service, or any willful violation of any law, rules or regulation applicable to the Company, including, but not limited to, those laws, rules or regulations established by the Securities and Exchange Commission, or any self-regulatory organization having jurisdiction or authority over Executive or the Company; or

 

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(ii)     Executive’s conviction of, or Executive’s plea of guilty or nolo contendere to, any felony or of any other crime involving fraud, dishonesty or moral turpitude; or

 

(iii)     A determination by the Board that Executive has materially breached this Agreement (other than during any period of Disability, as defined below) where such breach is not remedied within ten (10) business days after written demand by the Board for substantial performance is received by Executive which identifies the manner in which the Board believes Executive has so breached this Agreement; or

 

(iv)     Executive’s willful failure to perform the reasonable and customary duties of his position with the Company, which failure is not remedied within ten (10) business days after written demand by the Board for substantial performance is received by Executive which specifically identifies the nature of such failure.

 

(c)     Termination with Good Reason. Executive may terminate this Agreement for Good Reason, and thereby resign his employment, after providing thirty (30) days’ written notice to GulfMark of the act(s) or omission(s) constituting Good Reason (which notice must be given within ninety (90) days after the occurrence of such act(s) or omission(s) and describe the act(s) or omission(s) in reasonable detail) if such act(s) or omission(s) is/are not cured by the Company within thirty (30) days after GulfMark receives such written notice. For purposes hereof, “Good Reason” means any of the following that occurs without Executive’s consent:

 

(i)     A material reduction in Executive’s authority, duties, or responsibilities; or

 

(ii)     Any reduction in Executive’s Base Salary, other than an across the board reduction of less than 10% of Executive’s Base Salary; or

 

(iii)     Relocation of Executive’s principal place of business to a location fifty (50) or more miles from its location as of the Effective Date; or

 

(iv)     A material breach by GulfMark of this Agreement, which materially and adversely affects Executive; or

 

(v)     GulfMark’s provision to Executive of a Non-Renewal Notice in accordance with Section 1(a); or

 

(vi)     GulfMark’s failure to make any material payment to Executive required to be made under the terms of this Agreement.

 

In the event Executive terminates this Agreement for Good Reason, GulfMark shall pay or provide Executive the following (subject to Section 6 hereof): (i) within ten (10) business days after the Date of Termination, his Accrued Compensation and Reimbursements, (ii) the Pro Rata Bonus, and (iii) on the sixtieth (60th) day following the Date of Termination, the Severance Payment and the COBRA Payment. Treatment of any awards under the MIP will be as provided under the terms and conditions of the MIP and the applicable individual award agreement.

 

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(d)     Termination due to Disability. GulfMark may terminate this Agreement at any time if Executive shall be deemed in the reasonable judgment of the Board to have sustained a Disability. Executive shall be deemed to have sustained a “Disability” if he shall have been unable to substantially perform his duties as an employee of GulfMark as a result of sickness or injury, and shall have remained unable to perform any such duties for a period of more than one-hundred eighty (180) consecutive days in any twelve (12) month period. Upon termination of this Agreement for Disability, Executive shall only be entitled to (i) Accrued Compensation and Reimbursements, which amount shall be paid within ten (10) business days after the Date of Termination, and (ii) any other amounts or benefits to which Executive may be entitled under a separate plan, policy or program maintained by the Company.

 

(e)     Termination by Death. This Agreement will terminate automatically upon Executive’s death. Upon termination of this Agreement due to Executive’s death, GulfMark shall pay or provide Executive’s estate with the following: (i) Accrued Compensation and Reimbursements, which amount shall be paid within ten (10) business days after the Date of Termination, and (ii) any other amounts or benefits to which Executive may be entitled under a separate plan, policy or program maintained by the Company.

 

(f)     Date of Termination. As used in this Agreement, “Date of Termination” means (i) if Executive’s employment is terminated by his death, the date of his death; (ii) if Executive’s employment is terminated as a result of a Disability or by GulfMark for Cause or without Cause, then the date specified in a notice delivered to Executive by GulfMark of such termination, (iii) if Executive’s employment is terminated by Executive for Good Reason, then the date specified in the notice of such termination delivered to GulfMark by Executive, (iv) if Executive’s employment terminates due to the expiration of this Agreement following the provision of a Non-Renewal Notice, the last day of the then-current Employment Period (without any further renewals), and (v) if Executive’s employment is terminated for any other reason, the date specified therefore in the notice of such termination. The Employment Period will terminate upon any termination of Executive’s employment pursuant to this Section 4.

 

5.     Employment.

 

Upon termination of this Agreement, Executive’s employment shall also terminate and cease, and Executive shall be deemed to have voluntarily resigned from all positions and the Board, if Executive is a member of the Board. Executive shall confirm the foregoing resignation(s) by submitting to the Company written confirmation of Executive’s resignation(s), and the Company’s obligations to pay any payments or benefits under this Agreement (other than the Accrued Compensation and Reimbursements), including, without limitation, the Severance Payment, COBRA Payment and/or Pro Rata Bonus, in connection with any applicable termination scenario, shall be subject to the Company’s receipt of such written confirmation.

 

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6.     Release and Continued Compliance.

 

Notwithstanding any other provision in this Agreement to the contrary, as a condition precedent to receiving any payments or benefits under this Agreement (other than the Accrued Compensation and Reimbursements), including, without limitation, the Severance Payment, COBRA Payment and/or Pro Rata Bonus in connection with any applicable termination scenario, Executive agrees to execute a separation and release agreement in a form specified by GulfMark, containing a waiver of all claims against the Company (the “Release”), within the forty-five (45) day period immediately following the Date of Termination, and subsequently not revoke the Release during any period for revocation contained therein. All revocation rights and timing restrictions shall be set forth in such Release. If Executive fails to execute and deliver the Release, or revokes the Release, Executive agrees that he shall not be entitled to receive any payments or benefits under this Agreement (other than the Accrued Compensation and Reimbursements), including, without limitation, the Severance Payment, COBRA Payment and/or the Pro Rata Bonus, in connection with any applicable termination scenario. For purposes of this Agreement, the Release shall be considered to have been executed by Executive if it is signed by his legal representative in the case of legal incompetence or on behalf of Executive’s estate in the case of his death. Executive’s receipt of any payments or benefits under this Agreement (other than the Accrued Compensation and Reimbursements), including, without limitation, the Severance Payment, COBRA Payment and/or Pro Rata Bonus in connection with any applicable termination scenario, will also be subject to Executive’s continued compliance with Sections 7, 8 and 13 hereof.

 

7.     Nondisclosure.

 

(a)     It is understood that Executive during his tenure with the Company has received and will continue to receive access to some or all of the Company’s various trade secrets and confidential or proprietary information, including, but not limited to, information he has not received before, consisting of, but not limited to, information relating to (i) business operations and methods, (ii) existing and proposed investments and investment strategies, (iii) financial performance, (iv) compensation arrangements and amounts (whether relating to the Company or to any of its employees), (v) contractual relationships, (vi) business partners and relationships, and (vii) marketing strategies (all of the forgoing, “Confidential Information”). Confidential Information shall not include information that (A) becomes generally available to the public by means other than Executive’s breach of this Section 7 (for example, not as a result of Executive’s unauthorized release of marketing materials), (B) is in Executive’s possession, or becomes available to Executive, on a non-confidential basis, from a source other than the Company or (C) Executive is required by law, regulation, court order or discovery demand to disclose; provided, however, that in the case of this clause (C), Executive gives the Company, to the extent permitted by law, reasonable notice prior to the disclosure of the Confidential Information and the reasons and circumstances surrounding such disclosure to provide the Company an opportunity to seek a protective order or other appropriate request for confidential treatment of the applicable Confidential Information.

 

(b)     Executive agrees that all Confidential Information, whether prepared by Executive or otherwise coming into his possession, shall remain the exclusive property of the Company during and after Executive’s employment with the Company. Executive further agrees that Executive shall not, except for the benefit of the Company pursuant to the proper exercise of his duties in accordance with this Agreement or with the prior written consent of the Board, use or disclose to any third party any of the Confidential Information described herein, directly or indirectly, either during Executive’s employment with the Company or at any time following the termination of Executive’s employment with the Company.

 

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(c)     Upon termination of this Agreement, Executive agrees that all Confidential Information and other files, documents, materials, records, notebooks, customer lists, business proposals, contracts, agreements and other repositories containing information concerning the Company or the business of the Company (together with all copies thereof in any physical or electronic medium) in Executive’s possession, custody or control, whether prepared by Executive or others, shall remain with or be returned to the Company as soon as practicable after the Date of Termination. Executive agrees to provide the Company with access to Executive’s personally-owned computer, server, e-mail system, mobile phone, portable electronic and other electronic devices for the purpose of verifying that Executive has complied with this Section 7(c).

 

(d)     Nothing in this Agreement will preclude, prohibit or restrict Executive from (i) communicating with, any federal, state or local administrative or regulatory agency or authority, including, but not limited to, the Securities and Exchange Commission (the “SEC”); (ii) participating or cooperating in any investigation conducted by any governmental agency or authority; or (iii) filing a charge of discrimination with the United States Equal Employment Opportunity Commission or any other federal state or local administrative agency or regulatory authority. Nothing in this Agreement, or any other agreement between the parties, prohibits or is intended in any manner to prohibit, Executive from (A) reporting a possible violation of federal or other applicable law or regulation to any governmental agency or entity, including, but not limited to, the Department of Justice, the SEC, the U.S. Congress, and any governmental agency Inspector General, or (B) making other disclosures that are protected under whistleblower provisions of federal law or regulation. This Agreement does not limit Executive’s right to receive an award (including, without limitation, a monetary reward) for information provided to the SEC. Executive does not need the prior authorization of anyone at the Company to make any such reports or disclosures, and Executive is not required to notify the Company that Executive has made such reports or disclosures. Nothing in this Agreement or any other agreement or policy of the Company is intended to interfere with or restrain the immunity provided under 18 U.S.C. §1833(b). Executive cannot be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (i) (A) in confidence to federal, state or local government officials, directly or indirectly, or to an attorney, and (B) for the purpose of reporting or investigating a suspected violation of law; (ii) in a complaint or other document filed in a lawsuit or other proceeding, if filed under seal; or (iii) in connection with a lawsuit alleging retaliation for reporting a suspected violation of law, if filed under seal and does not disclose the trade secret, except pursuant to a court order. The foregoing provisions regarding protected disclosures are intended to comply with all applicable laws. If any laws are adopted, amended or repealed after the execution of this Agreement, this Section 7(d) shall be deemed to be amended to reflect the same.

 

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8.     Non-Competition, Non-solicitation, Non-Disparagement.

 

(a)     As part of the consideration for the compensation and benefits to be paid to Executive hereunder, to protect Confidential Information of the Company and its customers and clients that have been and will be entrusted to Executive, the business goodwill of the Company and its subsidiaries that will be developed in and through Executive and the business opportunities that will be disclosed or entrusted to Executive by the Company and its subsidiaries, and as an additional incentive for the Company to enter into this Agreement, from the date hereof through the first anniversary of the Date of Termination (the “Restricted Period”), Executive will not (other than for the benefit of the Company pursuant to the proper exercise of his duties in accordance with this Agreement), directly or indirectly:

 

(i)     engage in, or carry on or assist, individually or as a principal, owner, officer, director, employee, shareholder, consultant, contractor, partner, member, joint venturer, agent, equity owner or in any other capacity whatsoever, any (A) business competitive with any business in which the Company is engaged from time to time (a “Competing Business”) or (B) Business Enterprise (as defined below) that is otherwise competitive with the Company within the states in which the Company conducts business;

 

(ii)     perform for any corporation, partnership, limited liability company, sole proprietorship, joint venture or other business association or entity (a “Business Enterprise”) engaged in any Competing Business any duty Executive has performed for the Company that involved Executive’s access to, or knowledge or application of, Confidential Information;

 

(iii)      induce or attempt to induce any customer, supplier, licensee or other business relation of the Company to cease doing business with the Company or in any way interfere with the relationship between any such customer, supplier, licensee or business relation and the Company; or

 

(iv)     solicit with the purpose of hiring or retaining, or hire or retain, any person who is or, within one hundred eighty (180) days after such person ceased to be an employee, consultant or independent contractor of the Company, was an employee, consultant or independent contractor of the Company.

 

(b)     Notwithstanding the foregoing restrictions of this Section 8, nothing in this Section 8 shall prohibit any investment by Executive, directly or indirectly, in publicly-traded securities which are issued by a Business Enterprise involved in or conducting a Competing Business, provided that Executive (i) in the aggregate directly and indirectly, does not own more than five percent (5%) of the outstanding equity or voting securities of such Business Enterprise and (ii) does not have the right through the ownership of a voting interest or otherwise, to direct the activities of or associated with the business of such Business Enterprise.

 

(c)     Executive acknowledges that each of the covenants contained in Sections 7 and 8(a) are in addition to, and shall not be construed as a limitation upon, any other covenant provided in Section 8(a). Executive agrees that the geographic boundaries, scope of prohibited activities, and time duration of each of the covenants set forth in Sections 7 and 8(a) are reasonable in nature and are no broader than are necessary to maintain the confidentiality and the goodwill of the Company’s proprietary information and Confidential Information, and its plans and services, and to protect the other legitimate business interests of the Company, including without limitation the goodwill developed by Executive with the Company’s customers, suppliers, licensees and business relations.

 

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(d)     If, during any portion of the Restricted Period, Executive is not in compliance with the terms of Section 8(a), the Company shall be entitled to, among other remedies (and not in limitation of any other such remedies), compliance by Executive with the terms of Section 8(a) for an additional period of time (i.e., in addition to the Restricted Period) that shall equal the period(s) over which such noncompliance occurred.

 

(e)     The parties hereto intend that the covenants contained in Section 8(a) be construed as a series of separate covenants, one for each defined province in each geographic area in which Executive on behalf of the Company conducts business. Except for geographic coverage, each such separate covenant shall be deemed identical in terms to the applicable covenant contained in Section 8(a). Furthermore, each of the covenants in Section 8 shall be deemed a separate and independent covenant, each being enforceable irrespective of the enforceability (with or without reformation) of the other covenants contained in Section 8(a).

 

(f)     Further, at no time during or after the Employment Period will Executive utter, issue or circulate publicly any false or disparaging statements, remarks or rumors about GulfMark, any of its subsidiaries, and/or any of GulfMark’s or any of its subsidiaries’ respective businesses, or any of their respective officers, employees or directors. Nothing in this Section 8(f) shall prohibit Executive from providing truthful and accurate facts where he is required to do so by law.

 

9.     Notices.

 

All notices and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if delivered personally, mailed by certified mail (return receipt requested) or sent by overnight delivery service to the parties at the following addresses or at such other addresses as shall be specified by the parties by like notice, in order of preference of the recipient:

 

	
			To GulfMark or the Company:

			Board of Directors

			GulfMark Offshore, Inc.

			842 West Sam Houston Parkway N., Ste 400,

			Houston, TX 77024

				
			To Executive:

			At the most recent address on file with GulfMark

			

 

 

Notice so given shall, in the case of mail, be deemed to be given and received on the fifth calendar day after posting, and in the case overnight delivery service, on the date of actual delivery.

 

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10.     Severability and Reformation.

 

If any one or more of the terms, provisions, covenants or restrictions of this Agreement shall be determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions shall remain in full force and effect, and the invalid, void or unenforceable provisions shall be deemed severable. Moreover, if any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be reformed by limiting and reducing it to the minimum extent necessary, so as to be enforceable to the extent compatible with the applicable law as it shall then appear.

 

11.     Assignment.

 

This Agreement shall be binding upon and inure to the benefit of the heirs and legal representatives of Executive and the permitted assigns and successors of GulfMark, but neither this Agreement nor any rights or obligations hereunder shall be assignable or otherwise subject to hypothecation by Executive without the express written consent of GulfMark (except in the case of death by will or by operation of the laws of intestate succession) or by GulfMark, except that GulfMark may assign this Agreement to any successor (whether by merger, purchase or otherwise) to all or substantially all of the stock assets or businesses of GulfMark.

 

12.     Amendment.

 

This Agreement may be amended only by writing signed by both Executive and by a duly authorized representative of GulfMark (other than Executive).

 

13.     Assistance in Litigation.

 

Executive shall reasonably cooperate with the Company and its agents in the defense or prosecution of any claims or actions now in existence or that may be brought in the future against or on behalf of the Company that relate to events or occurrences that transpired while Executive was employed by the Company or with respect to which Executive has any knowledge. Executive’s cooperation in connection with such claims or actions shall include, but not be limited to, being reasonably available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company. Executive also shall cooperate fully with the Company in connection with any investigation or review by any Federal, state, or local regulatory authority as any such investigation or review relates, to events or occurrences that transpired while Executive was employed by the Company or with respect to which Executive has any knowledge.

 

14.     Beneficiaries; References.

 

Executive shall be entitled to select (and change, to the extent permitted under any applicable law) a beneficiary or beneficiaries to receive any compensation or benefit payable hereunder following Executive’s death, and may change such election, in either case by giving the Company written notice thereof. In the event of Executive’s death or a judicial determination of his incompetence, reference in this Agreement to Executive shall be deemed, where appropriate, to refer to his beneficiary, estate or other legal representative. Any reference to the masculine gender in this Agreement shall include, where appropriate, the feminine.

 

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15.     Use of Name, Likeness and Biography.

 

The Company shall have the right (but not the obligation) to use, publish and broadcast, and to authorize others to do so, the name, likeness and biographical material of Executive to advertise, publicize and promote the business of the Company and its affiliates. This right shall terminate upon the termination of this Agreement. A “likeness” and “biographical material” shall be, respectively, any photograph or other depiction of Executive, or any biographical information or life story concerning the professional career of Executive.

 

16.     Governing Law.

 

THIS AGREEMENT SHALL BE CONSTRUED, INTERPRETED AND GOVERNED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT REFERENCE TO RULES RELATING TO CONFLICTS OF LAW.

 

17.     Entire Agreement.

 

This Agreement contains the entire understanding between the parties hereto with respect to the subject matter hereof and supersedes in all respects any prior or other agreement (including, but not limited to, the Prior Agreement) or understanding, written or oral, between the Company or any affiliate of the Company and Executive with respect to such subject matter. For the avoidance of doubt, Executive acknowledges and agrees that the Company has satisfied all obligations that it has owed, and that it ever could owe, under the Prior Agreement and that Executive has no further rights thereunder. Each subsidiary of GulfMark is an intended third-party beneficiary of this Agreement and may enforce its rights hereunder as though it were a party hereto.

 

18.     Withholding.

 

The Company shall be entitled to withhold from payment to Executive of any amount of withholding required by law.

 

19.     Counterparts.

 

This Agreement may be executed in two or more counterparts, each of which will be deemed an original.

 

20.     Remedies.

 

The parties recognize and affirm that in the event of a breach of Sections 7 or 8, money damages would be inadequate and GulfMark would not have an adequate remedy at law. Accordingly, the parties agree that in the event of a breach or a threatened breach of Sections 7 or 8, GulfMark may, in addition and supplementary to other rights and remedies existing in its favor, obtain from any court of law or equity of competent jurisdiction specific performance and/or injunctive or other relief in order to enforce or prevent any violations of the provisions hereof (without posting a bond or other security). In addition, Executive agrees that in the event a court of competent jurisdiction or an arbitrator finds that Executive violated Section 7 or 8, the time periods set forth in those Sections shall be tolled until such breach or violation has been cured. Executive further agrees that GulfMark shall have the right to offset the amount of any damages resulting from a breach by Executive of Section 7 or 8 against any payments due to Executive under this Agreement (or otherwise from the Company). The parties agree that if one of the parties is found to have breached this Agreement by a court of competent jurisdiction or arbitrator, the breaching party will be required to pay the non-breaching party’s attorneys’ fees reasonably incurred in prosecuting the non-breaching party’s claim of breach.

 

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21.     Non-Waiver.

 

The failure by either party to insist upon the performance of any one or more terms, covenants or conditions of this Agreement shall not be construed as a waiver or relinquishment of any right granted hereunder or of any future performance of any such term, covenant or condition, and the obligation of either party with respect hereto shall continue in full force and effect, unless such waiver shall be in writing signed by GulfMark (other than Executive) and Executive.

 

22.     Announcement.

 

The Company shall have the right to make public announcements concerning the execution of this Agreement and the terms contained herein, and to publicly disclose this Agreement and its terms, at the Company’s discretion.

 

23.     Construction.

 

The headings and captions of this Agreement are provided for convenience only and are intended to have no effect in construing or interpreting this Agreement. The language in all parts of this Agreement shall be in all cases construed in accordance to its fair meaning and not strictly for or against the Company or Executive. Unless otherwise specified, all references to a “Section” shall be deemed to refer to a Section of this Agreement.

 

24.     Right to Insure.

 

The Company shall have the right to secure, in its own name or otherwise, and at its own expense, life, health, accident or other insurance covering Executive, and Executive shall have no right, title or interest in and to such insurance. Executive shall assist the Company in procuring such insurance by submitting to examinations and by signing such applications and other instruments as may be required by the insurance carriers to which application is made for any such insurance.

 

25.     No Inconsistent Obligations.

 

Executive represents and warrants that he has no obligations, legal, in contract, or otherwise, inconsistent with the terms of this Agreement or with his undertaking or continuing employment with the Company to perform the duties described herein. Executive will not disclose to the Company, or use, or induce the Company to use, any confidential, proprietary, or trade secret information of others. Executive represents and warrants that he has returned all property and confidential information belonging to all prior employers, if he is obligated to do so.

 

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26.     Binding Agreement.

 

This Agreement shall inure to the benefit of and be binding upon Executive, his heirs and personal representatives, and the Company, its successors and assigns.

 

27.     Voluntary Agreement.

 

Each party to this Agreement has read and fully understands the terms and provisions hereof, has had an opportunity to review this Agreement with legal counsel, has executed this Agreement based upon such party’s own judgment and advice of counsel (if any), and knowingly, voluntarily, and without duress, agrees to all of the terms set forth in this Agreement. The parties have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties and no presumption or burden of proof will arise favoring or disfavoring any party because of authorship of any provision of this Agreement. Except as expressly set forth in this Agreement, neither the parties nor their affiliates, advisors and/or their attorneys have made any representation or warranty, express or implied, at law or in equity with respect of the subject matter contained herein. Without limiting the generality of the previous sentence, the Companies, their affiliates, advisors, and/or attorneys have made no representation or warranty to Executive concerning any tax consequences (including, but not limited to, state or Federal tax consequences) to Executive regarding the transactions contemplated by this Agreement.

 

28.     Section 409A of the Code.

 

This Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the Treasury regulations and other interpretive guidance issued thereunder (collectively, “Section 409A”), or to be treated as exempt therefrom, and shall be construed and administered in accordance with such intent. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service, as a short-term deferral, or as any other compensation that is otherwise exempt from Section 409A shall be excluded from Section 409A to the maximum extent possible. Any payments to be made under this Agreement upon a termination of Executive’s employment that are deemed to constitute non-qualified deferred compensation subject to Section 409A shall only be made if such termination of employment constitutes a “separation from service” under Section 409A. Notwithstanding any provision in this Agreement to the contrary, if any payment or benefit provided for herein would be subject to additional taxes and interest under Section 409A if Executive’s receipt of such payment or benefit is not delayed until the earlier of (i) the date of Executive’s death or (ii) the date that is six (6) months after the Date of Termination of Executive’s employment hereunder (such applicable date, the “Section 409A Payment Date”), then such payment or benefit shall not be provided to Executive (or Executive’s estate, if applicable) until the Section 409A Payment Date. Each payment under this Agreement is intended to be a “separate payment” and not one of a series of payments for purposes of Section 409A. Notwithstanding the foregoing, the Company does not guarantee any particular tax effect, and Executive shall be solely responsible and liable for the satisfaction of all taxes, penalties and interest that may be imposed on or for the account of Executive in connection with the Agreement (including, but not limited to, any taxes, penalties and interest under Section 409A), and neither the Company, nor any of its affiliates, shall have any obligation to indemnify or otherwise hold Executive (or any beneficiary) harmless from any or all taxes, penalties or interest.

 

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29.     Excise Tax. (a) Notwithstanding any other provisions in this Agreement, in the event that any payment or benefit received or to be received by Executive (including, but not limited to, any payment or benefit received in connection with a change in control of GulfMark or the termination of Executive’s employment, whether pursuant to the terms of this Agreement or any other plan, program, arrangement or agreement) (all such payments and benefits, together, the “Total Payments”) would be subject (in whole or part), to any excise tax imposed under Section 4999 of the Code, or any successor provision thereto (the “Excise Tax”), then, after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan, program, arrangement or agreement, the Company will reduce the Total Payments to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax (but in no event to less than zero); provided, however, that the Total Payments will only be reduced if (i) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state, municipal and local income taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments), is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state, municipal and local income taxes on such Total Payments and the amount of Excise Tax to which Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments).

 

(b)     In the case of a reduction in the Total Payments, the Total Payments will be reduced in the following order: (i) payments that are payable in cash that are valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last reduced first; (ii) payments and benefits due in respect of any equity valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a), with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; (iii) payments that are payable in cash that are valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with amounts that are payable last reduced first, will next be reduced; (iv) payments and benefits due in respect of any equity valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; and (v) all other non-cash benefits not otherwise described in clauses (ii) or (iv) will be next reduced pro-rata. Any reductions made pursuant to each of clauses (i)-(v) above will be made in the following manner: first, a pro-rata reduction of cash payment and payments and benefits due in respect of any equity not subject to Section 409A, and second, a pro-rata reduction of cash payments and payments and benefits due in respect of any equity subject to Section 409A as deferred compensation.

 

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(c)     For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax: (i) no portion of the Total Payments the receipt or enjoyment of which Executive shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code will be taken into account; (ii) no portion of the Total Payments will be taken into account which, in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to Executive and selected by the accounting firm which was, immediately prior to the change in control, the Company’s independent auditor (the “Auditor”), does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including, but no limited to, by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments will be taken into account which, in the opinion of Tax Counsel, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (as set forth in Section 280G(b)(3) of the Code) that is allocable to such reasonable compensation; and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments will be determined by the Auditor in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. All determinations required by this Section 29 will be at the expense of the Company.

 

30.     Indemnification.

 

GulfMark will defend and indemnify Executive as required by GulfMark’s Bylaws and Certificate of Incorporation, to the maximum extent permitted by applicable law. During the Employment Period and thereafter (with respect to events occurring during the Employment Period), GulfMark will maintain and provide Executive with coverage under its directors’ and officers’ liability policy to the same extent that it provides such coverage to its other officers and directors generally.

 

31.     Survival.

 

The provisions and obligations of this Agreement which, by their nature, require or contemplate full or partial performance after the termination or expiration of this Agreement or Executive’s employment with the Company (including, without limitation, Sections 4-8, 13, 20, 30 and 32) shall survive termination of Executive’s employment or this Agreement.

 

32.     Clawback.

 

Notwithstanding any other provisions in this Agreement to the contrary, any compensation paid to Executive pursuant to this Agreement or any other agreement or arrangement with the Company, which is subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing requirement). In no event will any such deduction or clawback be deemed to constitute or contribute to Good Reason.

 

(Signature Page to Follow)

 

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IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement on the respective dates below.

 

	 	EXECUTIVE
	 	 
	 	 
	 	/s/ Quintin V. Kneen
	 	Quintin V. Kneen
	 	 
	 	 
	 	Date: April 19, 2018
	 	 
	 	 
	 	GULFMARK OFFSHORE, INC.
	 	 
	 	 
	 	By: /s/ Samuel R. Rubio
	 	 
	 	
			Senior Vice President & Chief Financial Officer

			
	 	 
	 	
			Date: April 19, 2018

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