Document:

exv10w5

Exhibit 10.5

2009 PERFORMANCE AWARD: GOALS AND MEASURES

ARTICLE 1

ESTABLISHMENT AND PURPOSE

     1.1 Establishment of the 2009-2011 Performance Goals. Oceaneering International, Inc. (the “Company”), has previously established the 2005 Incentive
Plan of Oceaneering International, Inc. (the “Plan”). The Plan permits the establishment of
Performance Goals and the award of Performance Awards to Participants. The Committee has
established Performance Goals (as detailed herein) for the first performance period under the Plan
which shall run from January 1, 2009 through December 31, 2011 (the “2009-2011 Performance
Period”). This 2009-2011 Performance Period is subject to all the provisions of the Plan.

     1.2 Establishment of 2009-2011 Performance Goal Targets. The 2009-2011 Performance Goal targets are as follows:

	 	 	 	 	 
	ROIC/Kc:
	 	 	___	%1
	 
	 	 	 	 
	Cumulative Three Year Cash Flow:
	 	$	___	1

     1.3 Purpose. The establishment of Performance Goals for the 2009-2011 Performance Period is to provide
Participants with a long-term incentive opportunity in respect of the 2009-2011 Performance Period.
Performance Awards granted in February 2009 (the “2009 Performance Awards”) are subject to the
attainment of these Performance Goals.

ARTICLE 2

DEFINITIONS

     2.1 Definitions. Whenever used in this document, capitalized terms shall have the meanings assigned in the Plan,
unless defined otherwise or specifically provided herein. The following terms shall have the
meanings set forth below:

     (a) “Average Cost of Capital” means the average (the arithmetic mean) of the Cost of
Capital for each of the three calendar years within the 2009-2011 Performance Period.

     (b) “Average Invested Capital” means the sum of Average Total Debt and Average
Shareholders’ Equity for each of the three calendar years within the 2009-2011 Performance
Period.

 

			
	1	 	In accordance with Instruction 4 to Item 402(k) of Regulation S-K, Oceaneering is
not disclosing these and the other amounts or items left blank herein, as they reflect
confidential commercial or business information.

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     (c) “Average Return on Invested Capital” or “ROIC” means a percentage derived by
dividing (i) the cumulative NOPAT (the sum of NOPAT for each of the three calendar years
within the 2009-2011 Performance Period) by (ii) Average Invested Capital.

     (d) “Average Total Debt” means (i) the sum of the Total Debt as of the end of the prior
year and the Total Debt as of the end of the current year (ii) divided by two. For example,
the Average Total Debt for calendar year 2009 will be the Total Debt as of December 31,
2008, plus the Total Debt as of December 31, 2009, divided by two.

     (e) “Average Shareholders’ Equity” means (i) the sum of Shareholders’ Equity as of the
end of the prior year and Shareholders’ Equity as of the end of the current year (ii)
divided by two.

     (f) “Cost of Capital” or “Kc” means a percentage determined by dividing (i) the sum of
the Cost of Debt and the Cost of Equity for each of the three calendar years within the
2009-2011 Performance Period by (ii) the sum of Average Total Debt and Average Shareholders’
Equity for each of the three calendar years within the 2009-2011 Performance Period. All
components of Cost of Capital shall be obtained directly from the audited financial
statements of the Company for the applicable year.

     (g) “Cost of Debt” means the product of annual Interest Expense and 65% (100% less a
deemed income tax rate of 35%).

     (h) “Cost of Equity” means the product of Average Shareholders’ Equity and 10.25%,
which is the sum of the 2.25% yield on the 

10-year Treasury Notes as of December 31, 2008,
as published by the U.S. Federal Reserve, plus an equity return premium of 8.0%.

     (i) “Cumulative Three Year Cash Flow” means the sum of the earnings before interest,
taxes, depreciation and amortization (“EBITDA”) amounts for each of the three calendar years
in the 2009-2011 Performance Period. EBITDA shall be calculated
as Net Income (Loss) plus (or Minus) Net Interest Expense (Income), plus provisions for
income taxes (or minus benefit from income taxes), plus depreciation and amortization. Each
component of EBITDA shall be obtained directly from the audited financials statements of the
Company for the applicable year.

     (j) “Income Before Income Taxes” means income before income taxes as reflected in the
audited financial statements of the Company for the applicable calendar year.

     (k) “Interest Expense” means interest expense, net of amounts capitalized, as reflected
in the audited financial statements of the Company for the applicable calendar year.

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     (l) “Interest Income” means interest income as reflected in the audited financial
statements of the Company for the applicable calendar year.

     (m) “Net Income (Loss)” means net income (loss) as reflected in the audited financial
statements of the Company for the applicable calendar year.

     (n) “Net Interest Expense (Income)” means the difference between (i) Interest Expense
and (ii) Interest Income for the applicable calendar year.

     (o) “Net Operating Profit After Taxes” or “NOPAT” means Net Income (Loss) plus (or
minus) the product of (i) Net Interest Expense (Income) and (ii) 100% minus the effective
income tax rate for the applicable year. The effective income tax rate will be determined
by dividing the annual income tax provision (or benefit) by Income Before Income Taxes. All
components of NOPAT shall be obtained directly from the audited financial statements of the
Company for the applicable calendar year.

     (p) “Performance Unit” means the unit of measure underlying a Performance Award, with
an initial notional value of $100.

     (q) “ROIC/Kc” means a percentage derived by dividing (i) Average Return on Invested
Capital for the 2009-2011 Performance Period by (ii) Average Cost of Capital for the
2009-2011 Performance Period. A percentage greater than 100% indicates the Company earned a
rate of return on its Average Invested Capital in excess of its Average Cost of Capital.

     (r) “Shareholders’ Equity” means the shareholders’ equity as reflected in the audited
financial statements of the Company for the applicable year.

     (s) “Total Debt” means the difference between (i) the sum of the debt components (in
both current and long-term liabilities), as reflected in the audited financial statements of
the Company for the applicable calendar year, and (ii) construction-in-progress as disclosed
in the footnotes to the audited financial statements of the Company to the extent such
amount is greater than $20,000,000.

ARTICLE 3

AWARD DETERMINATION

     3.1 Award Opportunities. The Committee has determined the Participants for the 2009-2011 Performance Period and each
Participant’s 2009 Performance Award; such Participants and their individual Performance Awards are
reflected in the Committee records. A Participant’s 2009 Performance Award is keyed to the
Company’s performance with respect to the 2009-2011 Performance Goals, and may result in a payment
to the Participant having a value from zero percent to one hundred twenty-five percent of the
initial notional value of the 2009 Performance Award.

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     3.2 Performance Award Determination. As soon as is practicable after the close of the 2009-2011 Performance Period, the Committee
shall calculate the value of 2009 Performance Awards for each Participant as follows:

     (a) Determine ROIC/Kc for the 2009-2011 Performance Period.

     (b) Determine the Cumulative Three Year Cash Flow for the 2009-2011 Performance Period.

     (c) Determine the ROIC/Kc Performance Goal level based on the following:

	 	 	 	 	 
	Threshold Level:
	 	 	—	%
	 
	 	 	 	 
	Target Level:
	 	 	—	%
	 
	 	 	 	 
	Maximum Level:
	 	 	—	%

     (d) Determine the Cumulative Three Year Cash Flow Performance Goal level based on the
following:

	 	 	 	 	 
	Threshold Level:
	 	$	—	 
	 
	 	 	 	 
	Target Level:
	 	$	—	 
	 
	 	 	 	 
	Maximum Level:
	 	$	—	 

     (e) If the Company does not reach the Threshold level on both the ROIC/Kc and the
Cumulative Three Year Cash Flow Performance Goal, no amounts will be paid with respect to
the 2009 Performance Awards. If the Company reaches the Threshold level on at least one
Performance Goal, an amount will be payable with respect to the 2009 Performance Awards.

     (f) The 2009 Performance Award for any Participant shall not be in an amount greater
than $5,000,000.

     (g) Satisfaction of each Performance Goal at the Target level will result in a final
value of each Performance Unit of $100. The determination of the final value of each
Performance Unit shall be based on application of the following grid (with interpolation
between the specified levels):

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Cumulative

Three Year Cash Flow

UNIT VALUES 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Maximum
	 	$	62.50	 	 	$	100.00	 	 	$	112.50	 	 	$	125.00	 
	Target
	 	$	50.00	 	 	$	87.50	 	 	$	100.00	 	 	$	112.50	 
	Threshold
	 	$	37.50	 	 	$	75.00	 	 	$	87.50	 	 	$	100.00	 
	Below
Threshold
	 	$	0.00	 	 	$	37.50	 	 	$	50.00	 	 	$	62.50	 
	 
	 	Below

Threshold	 	Threshold	 	Target	 	Maximum

ROIC/Kc

     (h) The Committee shall certify the determination of the final value of each
Performance Unit. If such value exceeds $100, the Committee retains the discretion to
reduce such value to any amount above or equal to $100.

ARTICLE 4

PAYMENT OF 2009 PERFORMANCE AWARDS

     4.1 Determination of Amount. 2009 Performance Awards will be determined as soon as practicable after (a) the Company’s
financial statements for each of the three calendar years in the 2009-2011 Performance Period have
been certified, (b) the Committee has certified in writing that the various Performance Goals and
conditions set forth herein and in the Plan have all been met or satisfied, and (c) the Committee
has specifically authorized in writing the payment of any 2009 Performance Awards based on
attainment of either Performance Goal at a level greater than Target.

     4.2 Vesting. The 2009 Performance Awards will vest as set forth in the Participant’s Performance Unit
Agreement.

     4.3 Form of Payment. Each 2009 Performance Award will be paid in cash.

     4.4 Time of Payment. 2009 Performance Awards shall be paid as set forth in the Participant’s Performance Unit
Agreement.

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Exhibit 10.6

2009 NON-EMPLOYEE DIRECTOR

RESTRICTED STOCK AGREEMENT

          This 2009 Non-Employee Director Restricted Stock Agreement (this “Agreement”) is between
Oceaneering international, inc. (the “Company”) and
                                        (the “Participant”), a
non-employee Director, regarding an award (“Award”) of
8,000 shares of Common Stock (as defined in the 2005 Incentive plan of oceaneering international, inc.
(the “Plan”), such Common Stock comprising this Award referred to herein as “Restricted Stock”)
awarded to the Participant effective February 20, 2009 (the “Award Date”), such number of shares
subject to adjustment as provided in Section 15 of the Plan, and further subject to the following
terms and conditions:

     1. Relationship to Plan. This Award is subject to all of the terms, conditions and provisions of the
Plan and administrative interpretations thereunder, if any, which have been adopted by the Board
thereunder and are in effect on the date hereof. Except as defined or otherwise specifically
provided herein, capitalized terms shall have the same meanings ascribed to them under the Plan.

     2. Vesting and Lapse of Restrictions.

     (a) All shares of Restricted Stock subject to this Award shall vest in full (and all
restrictions thereon shall lapse) on the first anniversary of the Award Date, provided the
Participant is a Director on such anniversary.

     (b) All shares of Restricted Stock (and any substitute security and cash component
distributed in connection with a Change of Control) subject to this Award shall vest in full
(and all restrictions thereon shall lapse), irrespective of the provision set forth in
subparagraph (a) above, provided that the Participant has been in continuous service as a
Director since the Award Date, upon the earlier to occur of:

     (i) the Participant’s death; or

     (ii) a Change of Control.

     (c) For purposes of this Agreement:

     (i) “Change of Control” means:

     (A) any Person is or becomes the “beneficial owner” (as defined in Rule
13d-3 under the Securities Exchange Act of 1934, as amended and the rules
and regulations promulgated thereunder), directly or indirectly, of
securities of the Company representing 20% or more of the combined voting
power of the Company’s outstanding Voting
Securities, other than through the purchase of Voting Securities
directly from the Company through a private placement; or

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     (B) individuals who constitute the Board on the date hereof (the
“Incumbent Board”) cease for any reason to constitute at least a majority
thereof, provided that any person becoming a Director subsequent to the date
hereof whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least two-thirds of the Directors
comprising the Incumbent Board shall from and after such election be deemed
to be a member of the Incumbent Board; or

     (C) the Company is merged or consolidated with another corporation or
entity and as a result of such merger or consolidation less than 60% of the
outstanding Voting Securities of the surviving or resulting corporation or
entity shall then be owned by the former shareholders of the Company; or

     (D) a tender offer or exchange offer is made and consummated by a
Person other than the Company for the ownership of 20% or more of the Voting
Securities of the Company then outstanding; or

     (E) all or substantially all of the assets of the Company are sold or
transferred to a Person as to which:

     (1) the Incumbent Board does not have authority (whether by law
or contract) to directly control the use or further disposition of
such assets; and

     (2) the financial results of the Company and such Person are not
consolidated for financial reporting purposes.

     (F) Anything else in this definition to the contrary notwithstanding:

     (1) no Change of Control shall be deemed to have occurred by
virtue of any transaction which results in the Participant, or a
group of Persons which includes the Participant, acquiring more than
20% of either the combined voting power of the Company’s outstanding
Voting Securities or the Voting Securities of any other corporation
or entity which acquires all or substantially all of the assets of
the Company, whether by way of merger, consolidation, sale of such
assets or otherwise; and

     (2) no Change of Control shall be deemed to have occurred unless
such event constitutes an event specified in Code Section
409A(2)(A)(v) and the Treasury regulations promulgated thereunder.

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     (ii) “Person” means, any individual, corporation, partnership, group,
association or other “person,” as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended, and the related
rules and regulations promulgated thereunder.

     (iii) “Voting Securities” means, with respect to any corporation or
other business enterprise, those securities, which under ordinary
circumstances are entitled to vote for the election of directors or others
charged with comparable duties under applicable law.

     3. Forfeiture of Award. If the Participant’s service as a Director terminates under any circumstances
(except those provided in Paragraph 2 of this Agreement or in any other written agreement between
the Participant and the Company which provides for vesting of the Restricted Stock granted hereby),
all unvested Restricted Stock as of the termination date shall be forfeited.

     4. Registration of Shares. The Participant’s right to receive the Restricted Stock shall be evidenced
by book entry registration (or by such other manner as the Committee may determine) at the
beginning of the Restriction Period. Upon termination of the Restriction Period, a certificate
representing such shares shall be delivered upon written request to the Participant as promptly as
is reasonably practicable following such termination.

     5. Code Section 83(b) Election. The Participant shall be permitted to make an election under Code
Section 83(b), to include an amount in income in respect of the Award of Restricted Stock in
accordance with the requirements of Code Section 83(b).

     6. Dividends and Voting Rights. The Participant is entitled to receive all dividends and other
distributions made with respect to Restricted Stock registered in his name and is entitled to vote
or execute proxies with respect to such registered Restricted Stock, unless and until the
Restricted Stock is forfeited.

     7. Delivery of Shares. The Company shall not be obligated to deliver any shares of Common Stock if
counsel to the Company determines that such sale or delivery would violate any applicable law or
any rule or regulation of any governmental authority or any rule or regulation of, or agreement of
the Company with, any securities exchange or association upon which the Common Stock is listed or
quoted. The Company shall in no event be obligated to take any affirmative action in order to
cause the delivery of shares of Common Stock to comply with any such law, rule, regulation or
agreement.

     8. Notices. Unless the Company notifies the Participant in writing of a different procedure, any
notice or other communication to the Company with respect to this Agreement or the Plan shall be in
writing addressed to the Corporate Secretary of the Company and shall be: (a) by registered or
certified United States mail, postage prepaid, to 11911 FM 529, Houston, Texas 77041-3011; or (b)
by hand delivery or otherwise to 11911 FM 529, Houston, Texas 77041-3011. Any such notice shall be
deemed effectively delivered or given upon receipt.

          Notwithstanding the foregoing, in the event that the address of the Company’s principal
executive offices is changed prior to the date of any settlement of this Award, notices shall
instead be made pursuant to the foregoing provisions at the then current address of the Company’s
principal executive offices.

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          Any notice or other communication to the Participant with respect to this Agreement or the
Plan shall be given in writing and shall be deemed effectively delivered or given upon receipt or,
in the case of notices mailed by the Company to the Participant, five days after deposit in the
United States mail, postage prepaid, addressed to the Participant at the address specified at the
end of this Agreement or at such other address as the Participant hereafter designates by written
notice to the Company.

     9. Assignment of Award. Except as otherwise permitted by the Committee and as provided in the
immediately following paragraph, the Participant’s rights under the Plan and this Agreement are
personal, and no assignment or transfer of the Participant’s rights under and interest in this
Award may be made by the Participant other than by a domestic relations order. This Award is
payable during his lifetime only to the Participant, or in the case of a Participant who is
mentally incapacitated, this Award shall be payable to his guardian or legal representative.

          The Participant may designate a beneficiary or beneficiaries (the “Beneficiary”) to whom the
Award under this Agreement, if any, will pass upon the Participant’s death and may change such
designation from time to time by filing with the Company a written designation of Beneficiary on
the form attached hereto as Exhibit A, or such other form as may be prescribed by the Committee;
provided that no such designation shall be effective unless so filed prior to the death of the
Participant and no such designation shall be effective as of a date prior to receipt by the
Company. The Participant may change his Beneficiary without the consent of any prior Beneficiary
by filing a new designation with the Company. The last such designation that the Company receives
in accordance with the foregoing provisions will be controlling. Following the Participant’s
death, the Award, if any, will pass to the designated Beneficiary and such person will be deemed
the Participant for purposes of any applicable provisions of this Agreement. If no such
designation is made or if the designated Beneficiary does not survive the Participant’s death, the
Award shall pass by will or, if none, then by the laws of descent and distribution.

     10. Withholding. The Company’s obligation to deliver shares of Restricted Stock to the
Participant upon the vesting of such shares shall be subject to the satisfaction of all applicable
withholding requirements including those related to federal, state and local income and employment
taxes (the “Required Withholding”). The Company may withhold from the
Restricted Stock that would otherwise have been delivered to the Participant the number of
shares necessary to satisfy the Participant’s Required Withholding, and deliver the remaining
shares of Restricted Stock to the Participant, unless the Participant has made arrangements with
the Company for the Participant to deliver to the Company cash, check, other available funds or
shares of previously owned Common Stock for the full amount of the Required Withholding by 5:00
p.m. Central Standard Time on the date the shares of Restricted Stock become vested. The amount of
the Required Withholding and the number of shares to satisfy the Participant’s Required Withholding
shall be based on the Fair Market Value of the shares on the date prior to the applicable date of
vesting.

     11. Stock Certificates. Any certificate representing the Common Stock issued pursuant to the Award
will bear all legends required by law and necessary or advisable to effectuate the provisions of
the Plan and this Award. The Company may place a “stop transfer”

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order against shares of the
Common Stock issued pursuant to this Award until all restrictions and conditions set forth in the
Plan or this Agreement and in the legends referred to in this Section 11 have been complied with.

     12. Successors and Assigns. This Agreement shall bind and inure to the benefit of and be
enforceable by the Participant, the Company and their respective permitted successors and assigns
(including personal representatives, heirs and legatees), except that the Participant may not
assign any rights or obligations under this Agreement except to the extent and in the manner
expressly permitted in Section 9 of this Agreement.

     13. No Service as Director Guaranteed. No provision of this Agreement shall confer any right upon the
Participant to continued service with the Company as a Director.

     14. Code Section 409A Compliance. This Award is intended to satisfy the requirements of Section 409A
of the Code or alternatively, the short-term deferral exclusion under Section 409A of the Code and
related regulations and Treasury pronouncements.

     15. Governing Law. This Agreement shall be governed by, construed, and enforced in accordance with the
laws of the State of Texas, excluding any choice of law provision thereof that would result in the
application of the laws of any other jurisdiction.

     16. Amendment. Except as set forth herein, this Agreement cannot be modified, altered or amended
except by an agreement, in writing, signed by both the Company and the Participant.

	 	 	 	 	 	 	 
	 	 	OCEANEERING INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	Award Date: February 20, 2009

	 	By:	 	 	 	 
	 

	 	 	 	 

George R. Haubenreich, Jr.
	 	 
	 

	 	 	 	Senior Vice President, General Counsel
and Secretary	 	 

          The Participant hereby accepts the foregoing 2009 Non-Employee Director Restricted Stock
Agreement, subject to the terms and provisions of the Plan and administrative interpretations
thereof referred to above.

	 	 	 	 	 	 	 
	 

	 	 	 	PARTICIPANT:	 	 
	 
	 	 	 	 	 	 
	Date:

	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Participant’s Address:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 

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Exhibit A to 2009 Non-Employee Director

Restricted Stock Agreement

Designation of Beneficiary

          I,                                                    
          (“Participant”), hereby declare that upon my death,
                 
                 
                 
          

(the “Beneficiary”) of     
                 
                                        (address), who is my
                  
                       (relationship), will be entitled to the Award which may become payable
under the Plan and all other rights accorded the Participant under the Participant’s 2009
Non-Employee Director Restricted Stock Agreement (capitalized terms used but not defined herein
have the respective meanings assigned to them in such agreement).

          It is understood that this designation of Beneficiary is made pursuant to the Agreement and is
subject to the conditions stated therein, including the Beneficiary’s survival of Participant. If
any such condition is not satisfied, such rights shall devolve according to the Participant’s last
will and testament, or if none, then the laws of descent and distribution.

          It is further understood that all prior designations of beneficiary under the Agreement are
hereby revoked upon the filing of this designation with the Company. This designation of
Beneficiary may only be revoked in writing, signed by the Participant, and filed with the Corporate
Secretary of the Company prior to the Participant’s death.

	 	 	 	 	 
	 

	 	 

Participant
	 	 
	 
	 	 	 	 
	 

	 	 

Date
	 	 

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