Document:

Exhibit 4.5

 

ONESUBSEA LLC

NONQUALIFIED DEFERRED COMPENSATION PLAN

Effective as of April 1, 2013

TABLE OF CONTENTS

	
 

	
 

	
Page No.

	
 

	
 

	
 

	
ARTICLE I

	
Definitions and Construction

	
1

	
 

	
 

	
 

	
ARTICLE II

	
Participation

	
6

	
 

	
 

	
 

	
ARTICLE III

	
Account Credits and Allocations of Income or Loss

	
7

	
 

	
 

	
 

	
ARTICLE IV

	
Deemed Investment of Funds

	
10

	
 

	
 

	
 

	
ARTICLE V

	
Determination of Vested Interest and Forfeitures

	
11

	
 

	
 

	
 

	
ARTICLE VI

	
In-Service Withdrawals and Loans

	
12

	
 

	
 

	
 

	
ARTICLE VII

	
Termination Benefits

	
12

	
 

	
 

	
 

	
ARTICLE VIII   

	
Administration of the Plan

	
16

	
 

	
 

	
 

	
ARTICLE IX

	
Administration of Funds

	
17

	
 

	
 

	
 

	
ARTICLE X

	
Nature of the Plan

	
18

	
 

	
 

	
 

	
ARTICLE XI

	
Miscellaneous

	
19

i

ONESUBSEA LLC

NONQUALIFIED DEFERRED COMPENSATION PLAN

W I T N E S S E T H:

WHEREAS, OneSubsea LLC (the “Company”) desires to establish and adopt the OneSubsea LLC Nonqualified Deferred Compensation Plan, hereinafter referred to as the “Plan,” to aid certain of its employees in making more adequate provision for their retirement.

NOW THEREFORE, the Plan is hereby established and adopted as follows, effective as of April 1, 2013:

ARTICLE I

DEFINITIONS AND CONSTRUCTION

1.1           Definitions. Where the following words and phrases appear in the Plan, they shall have the respective meanings set forth below, unless their context clearly indicates to the contrary.

		(1)	Account(s): A Participant’s Matching Account, Retirement Account and/or Deferral Account, including the amounts credited thereto.

		(2)	Affiliate: Each trade or business (whether or not incorporated) that together with the Company is treated as a “single employer” within the meaning of subsections (b) or (c) of Section 414 of the Code, in each case, as determined by an 80% control test.

		(3)	As soon as administratively practicable: For purposes of benefit distributions, a date of distribution that is as soon as administratively practicable as determined by the Committee following a permissible payment event, but in no event later than the later of the 15th day of the third calendar month following the date of the permissible payment event or December 31st of the calendar year in which the permissible payment event occurs. In no event shall a Participant or his Beneficiary be permitted to designate the taxable year of the payment.

		(4)	Base Salary: The base rate of pay (and any miscellaneous cash incentive pay not associated with a Participant’s annual incentive bonus) paid in cash by the Employer to or for the benefit of a Participant for services rendered or labor performed while a Participant, including base pay (and any miscellaneous cash incentive pay not associated with a Participant’s annual incentive bonus) that a Participant could have received in cash in lieu of (i) Compensation deferrals pursuant to Section 3.1 and (ii) elective contributions made on his behalf by the Employer pursuant to a qualified cash or deferred arrangement (as defined in Section 401(k) of the Code) or pursuant to a plan maintained under Section 125 of the Code; provided, however, that for each Plan Year, an amount equal to the applicable limitation in effect under Section 402(g) of the Code for such Participant (including catch up contributions, if such Participant is eligible therefor) shall be deducted from such Participant’s Base Salary for such Plan Year solely for purposes of computing the amount of such Participant’s Participant Deferrals under the Plan for such Plan Year.

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		(5)	Beneficiary: The person or persons entitled to receive the Participant’s benefits under the Plan in the event of the Participant’s death, as determined in accordance with Section 7.4.

		(6)	Bonus: The annual incentive bonus, if any, paid in cash by the Employer to or for the benefit of a Participant for services rendered or labor performed, including the portion thereof that a Participant could have received in cash in lieu of (i) Compensation deferrals pursuant to Section 3.1 and (ii) elective contributions made on his behalf by the Employer pursuant to a qualified cash or deferred arrangement (as defined in Section 401(k) of the Code) or pursuant to a plan maintained under Section 125 of the Code but excluding any annual incentive bonuses or awards earned by the Participant over a service period of longer or shorter than 12 months; provided, however, that, for any Plan Year that a Participant elects to defer Bonus but not Base Salary, an amount equal to the applicable limitation in effect under Section 402(g) of the Code (including catch up contributions if such Participant is eligible therefor) shall be deducted from such Participant’s Bonus for such Plan Year solely for purposes of computing the amount of such Participant’s Participant Deferrals under the Plan for such Plan Year.

		(7)	Cameron NQDC Plan: The Cameron International Corporation Nonqualified Deferred Compensation Plan, as amended from time to time.

		(8)	Change in Control: Except as otherwise provided herein, the existence of a “Change in Control” shall be determined with respect to the Company and shall mean a “Change of Control Event” (as defined in the Master Formation Agreement) that also constitutes a “change in control event” within the meaning of Treasury Regulation Section 1.409A-3(i)(5). With respect to an Employer other than the Company, the Employer shall be deemed to have undergone a Change in Control in the event that (a) the Employer ceases to be an Affiliate of the Company, provided that the transaction or series of transactions that resulted in such cessation constitutes a change in the ownership or effective control of the Employer or a majority shareholder of the Employer (or any corporation in a chain of corporations in which each corporation is a majority shareholder of another corporation in the chain, with the chain ending at the Employer), or (b) there is a change in the ownership of a substantial portion of the Employer’s assets, in each case within the meaning of Section 409A(a)(2)(A)(v) of the Code.

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		(9)	Code: The Internal Revenue Code of 1986, as amended. References herein to provisions of the Code shall include any successor statute and the applicable regulations or other authoritative guidance promulgated thereunder.

		(10)	Committee: The OneSubsea LLC Benefits Committee.

		(11)	Company: OneSubsea LLC, its successors, and the surviving entity resulting from the merger of OneSubsea LLC with any other entity or entities.

		(12)	Compensation: Base Salary and/or Bonus.

		(13)	Deferral Account: An individual account for each Participant to which is credited his Participant Deferrals and that reflects such account’s changes in value as provided in Section 3.4.

		(14)	Effective Date: April 1, 2013.

		(15)	Eligible Employee: Each individual who has been selected by the Committee for participation in the Plan and who has been notified by the Committee of such selection.

		(16)	Eligibility Period: The 30-day period following an Eligible Employee’s notification by the Committee of eligibility to participate in the Plan.

		(17)	Employer: The Company and any other adopting entity that is designated to participate in the Plan pursuant to the provisions of Section 2.4.

		(18)	ERISA: The Employee Retirement Income Security Act of 1974, as amended.

		(19)	Exchange Act: The Securities Exchange Act of 1934, as amended.

		(20)	Executive Committee: The governing body of the Company during the period preceding the closing of the transactions contemplated by the Master Formation Agreement (the “Closing”). On and after the Closing, the “executive committee” of the Company as constituted pursuant to the Shareholders’ Agreement to be executed at the Closing by and among Cameron International Corporation, Schlumberger Limited and certain of their affiliates.

		(21)	Funds: The investment funds, if any, designated from time to time by the Committee for the deemed investment of Accounts pursuant to Section 4.1.

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		(22)	Inactive Participant: An individual (a) for whom Account(s) were maintained under the Cameron NQDC Plan as of March 31, 2013 and transferred to the Plan but who has not been designated as eligible to participate in the Plan as of or after April 1, 2013 in accordance with Section 2.1 or (b) who became a Participant on or after April 1, 2013 but whose eligibility to continue to defer Compensation and receive an allocation of Matching Deferrals and Retirement Deferrals under the Plan has ceased pursuant to Section 2.2.

		(23)	Master Formation Agreement: That certain Master Formation Agreement dated November 14, 2012 by and among Cameron International Corporation, Schlumberger Limited and certain of their affiliates, as amended, supplemented, restated or otherwise modified from time to time.

		(24)	Matching Account: An individual account for each Participant to which is credited the Matching Deferrals made on his behalf and that reflects such account’s changes in value as provided in Section 3.4.

		(25)	Matching Deferrals: Deferrals made by the Employer on a Participant’s behalf pursuant to Section 3.2.

		(26)	Participant: Each Eligible Employee who has become a Participant pursuant to Article II or as a result of the transfer of certain account balances from the Cameron NQDC Plan to the Plan. Where the context requires, the term “Participant” shall be deemed to include an Eligible Employee for purposes of Section 3.1 if such Eligible Employee has not yet become a Participant pursuant to Section 2.1. The term “Participant” shall also include an Inactive Participant except as otherwise described in Section 2.3.

		(27)	Participant Deferrals: Deferrals made by a Participant pursuant to Section 3.1.

		(28)	Plan: The OneSubsea LLC Nonqualified Deferred Compensation Plan, as amended from time to time.

		(29)	Plan Year: The twelve consecutive month period commencing January 1 of each year, except that the first Plan Year shall commence on the Effective Date and end on December 31, 2013.

		(30)	Qualified Compensation: “Compensation” as defined under the Savings Plan, but determined without regard to the limitation under Section 401(a)(17) of the Code.

		(31)	Restricted Inactive Participant: Any Participant who was an Inactive Participant under the Cameron NQDC Plan prior to August 26, 2010.

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		(32)	Retirement Account: An individual account for each Participant to which is credited the Retirement Deferrals made on his behalf and that reflects such account’s changes in value as provided in Section 3.4.

		(33)	Retirement Deferrals: Deferrals made by the Employer on a Participant’s behalf pursuant to Section 3.3.

		(34)	Savings Plan: The OneSubsea LLC Retirement Savings Plan, as amended from time to time, and, for purposes of Section 3.1(c), any other plan that includes a cash or deferred arrangement that is subject to Section 401(k) of the Code and is maintained by the Employer or an employer under common control with the Employer (within the meaning of Section 414(b), (c) or (m) of the Code).

		(35)	Specified Employee: An individual who on the date of his Termination of Service is considered a “key employee” within the meaning of Section 416(i) of the Code (applied in accordance with the Treasury Regulations promulgated thereunder and without regard to subparagraph (5) thereof) if, as of the date of his Termination of Service, the Company or any Affiliate is publicly traded on an established securities market or otherwise. The identification of Specified Employees for purposes of distributions upon Termination of Service pursuant to Article VII shall be made in accordance with the general requirements of Section 409A(a)(2)(B)(i) of the Code pursuant to any method elected by the Committee or, if no such election is made, under the default rules under Section 409A of the Code.

		(36)	Termination of Service: The termination of a Participant’s employment with the Employer and all Affiliates for any reason or for no reason whatsoever. Notwithstanding anything to the contrary herein, a Participant shall not be considered to have incurred a Termination of Service for purposes of the Plan if his termination does not constitute a “separation from service” within the meaning of Section 409A(a)(2)(A)(i) of the Code.

		(37)	Trust: The irrevocable grantor trust established under the Trust Agreement.

		(38)	Trust Agreement: The agreement entered into between the Employer and the Trustee pursuant to Article X.

		(39)	Trust Fund: The funds and properties held pursuant to the provisions of the Trust Agreement, together with all income, profits and increments thereto.

		(40)	Trustee: The independent commercial trustee or trustees qualified and acting under the Trust Agreement at any time.

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		(41)	Valuation Date: Each day that the New York Stock Exchange is open for business.

		(42)	Vested Interest: The portion of a Participant’s Accounts, which, pursuant to the Plan, is nonforfeitable.

1.2           Number and Gender. Wherever appropriate herein, words used in the singular shall be considered to include the plural and words used in the plural shall be considered to include the singular. The masculine gender, where appearing in the Plan, shall be deemed to include the feminine gender.

1.3           Headings. The headings of Articles and Sections herein are included solely for convenience, and if there is any conflict between such headings and the text of the Plan, the text shall control.

ARTICLE II

PARTICIPATION

2.1           Participation.

(a)           The Committee, in its sole discretion, shall select and notify those management or highly compensated employees of the Employer who shall become Eligible Employees. An Eligible Employee may become a Participant, effective as of the first day of the next Plan Year following such Eligible Employee’s notification of eligibility, by executing and filing with the Committee the Compensation deferral election prescribed by the Committee prior to the start of such Plan Year.

(b)           Any Eligible Employee who has not filed a deferral election in accordance with Section 2.1(a) but whose Retirement Contributions (as such term is defined under the Savings Plan) under the Savings Plan with respect to a Plan Year are limited by the provisions of Section 401(a)(4), 401(a)(17) and/or 415 of the Code shall become a Participant effective as of the first day of the Plan Year next following such Plan Year.

(c)           Any individual whose account balance(s) are transferred to the Plan from the Cameron NQDC Plan shall become a Participant effective as of the date of such transfer.

(d)           Subject to the provisions of Section 2.2, a Participant who has been notified of his eligibility for participation in the Plan for any Plan Year commencing on or after the Effective Date (or after the start of any such Plan Year) shall remain eligible to defer Compensation hereunder and receive an allocation of Matching Deferrals and Retirement Deferrals for each Plan Year following his commencement of participation in the Plan until his Termination of Service.

2.2           Cessation of Active Participation. Notwithstanding any provision herein to the contrary, an individual who has become a Participant in the Plan pursuant to Section 2.1(a) shall cease to be entitled to defer Compensation hereunder and receive an allocation of Matching Deferrals and Retirement Deferrals effective as of the last day of any Plan Year date designated by the Committee. Any such action by the Committee shall be communicated to the affected individual prior to the effective date of such action. Such an individual may again become entitled to defer Compensation hereunder and receive an allocation of Matching Deferrals and Retirement Deferrals beginning as of the first day of any subsequent Plan Year selected by the Committee in its sole discretion.

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2.3           Effect of Inactive Participant Status. Each Inactive Participant shall have all the rights of a Participant hereunder, provided that, notwithstanding anything to the contrary herein, he shall be ineligible to defer Compensation hereunder and receive an allocation of Matching Deferrals and Retirement Deferrals unless he is again selected as an Eligible Employee in accordance with the provisions of Section 2.1.

2.4           Designation of Additional Employers. It is contemplated that Affiliates may be designated to participate in the Plan and thereby become an Employer. Any such Affiliate, whether or not presently existing, may become an Employer hereunder if designated to so participate by the Committee. Except as otherwise provided herein, the provisions of the Plan shall apply separately and equally to each Employer and its employees in the same manner as is expressly provided for the Company and its employees, except that the power to appoint or otherwise affect the Committee and the Trustee and the power to amend or terminate the Plan or amend the Trust Agreement shall be exercised by the Executive Committee alone. Transfer of employment among Employers and Affiliates shall not be considered a Termination a Service and service with one Employer shall be considered service with all others. Any Employer may, by appropriate action of its officers without the need for approval of its board of directors (or noncorporate counterpart) or the Committee, terminate its participation in the Plan. Moreover, the Committee may, in its sole discretion, terminate an Employer’s Plan participation at any time, but distributions pursuant to any such termination of an Employer’s participation in the Plan shall be subject to the provisions of Section 11.5 and Treasury Regulation Section 1.409A-3(j)(4)(ix). Notwithstanding the foregoing, the termination of an Employer’s Plan participation may be effective only as of the end of a Plan Year if the Employer remains an Affiliate of the Company following such termination or, if the Employer does not remain as an Affiliate of the Company following such termination, then the termination shall be effective only at a time that complies with Section 409A of the Code.

ARTICLE III

ACCOUNT CREDITS AND ALLOCATIONS OF INCOME OR LOSS

3.1           Participant Deferrals.

(a)            In accordance with the procedures established by the Committee from time to time, a Participant may annually:

(i)           Elect to defer a portion of his Base Salary for such Plan Year in an amount equal to a specific dollar amount per pay period or an integral percentage of from 1% to 20% of his Base Salary for such Plan Year. If a Participant elects to defer an integral percentage of his Base Salary for a Plan Year, he may also elect to establish a maximum Base Salary deferral for such Plan Year, the dollar amount of which such Participant’s combined aggregate total of Base Salary deferrals for such Plan Year shall not exceed; and/or

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(ii)           Elect to defer a portion of his Bonus for such Plan Year in an amount equal to a specific dollar amount or an integral percentage of from 1% to 75% of his Bonus for such Plan Year. If a Participant elects to defer an integral percentage of his Bonus for a Plan Year, he may also elect to establish a maximum Bonus deferral for such Plan Year, the dollar amount of which his Bonus deferral for such Plan Year shall not exceed.

In the event that a Participant elects to defer an amount of Compensation pursuant to both Sections 3.1(a)(i) and 3.1(a)(ii) for any Plan Year, he may also elect to establish a maximum combined Base Salary and Bonus deferral for such Plan Year, the dollar amount of which his combined total of Base Salary and Bonus deferrals for such Plan Year shall not exceed.

(b)           Compensation for a Plan Year not deferred pursuant to elections under Section 3.1(a) shall be received by such Participant in cash. A Participant’s annual election to defer an amount of his Compensation pursuant to this Section 3.1 shall comply with the following requirements:

(i)            Such election shall be made by effecting, on the form prescribed by the Committee and prior to the start of each Plan Year, a Participant Deferral election pursuant to which the Participant authorizes the Employer to reduce his Compensation in the elected amount and specifies the applicable time and form of payment of his benefits in accordance with the provisions of Article VII. In consideration of such election, the Employer agrees to credit the amount specified in such election, subject to applicable Plan requirements, to such Participant’s Deferral Account maintained under the Plan.

(ii)           The reduction in a Participant’s Compensation pursuant to his Participant Deferral election shall be effected by Compensation reductions each payroll period as determined by the Committee following the effective date of such election. Such Compensation reductions shall apply with respect to all Compensation earned within the Plan Year to which the Participant Deferral election relates (except as provided in Section 3.1(a) concerning maximum Participant Deferral elections) regardless of whether such Compensation is to be paid in the current Plan Year or the next following Plan Year. For the sake of clarity, Compensation reductions attributable to elections to defer a Participant’s Bonus earned during a Plan Year shall be made within the next following Plan Year if the Bonus to which the Participant Deferral election relates is paid in such next following Plan Year.

(iii)          Participant Deferrals made by a Participant shall be paid by the Employer to the Trust as soon as administratively feasible following the date upon which the Compensation deferred would have been received by such Participant in cash if he had not elected to defer such amount pursuant to this Section 3.1 and such Participant Deferrals shall be credited to the Participant’s Deferral Account as of the date such Participant Deferrals are received by the Trustee.

(iv)          Such election shall become effective as of the first day of the Plan Year that is immediately after the date the election is effected by the Participant and filed with the Committee.

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(v)           A Participant Deferral election shall remain in force and effect for the entire Plan Year (or portion thereof) to which such election relates and, subject to Section 3.1(c), shall be irrevocable for such Plan Year.

(vi)          Any Plan provisions to the contrary notwithstanding, a Participant Deferral election shall be suspended during any period of unpaid leave of absence from the Employer and shall terminate immediately on the date such Participant incurs a Termination of Service.

(vii)         If a Participant has made a Participant Deferral election for any Plan Year, such election shall no longer be effective as of the first day of the subsequent Plan Year, except with respect to Compensation earned but not paid during the prior Plan Year.

(viii)        A Participant who has made a Participant Deferral election may make a new Participant Deferral election for a subsequent Plan Year, if he satisfies the eligibility requirements set forth in Section 2.1, by effecting a new Participant Deferral election prior to the first day of such Plan Year and within the time period prescribed by the Committee.

(c)           In the event that a Participant receives a hardship distribution from the Savings Plan in accordance with Treasury Regulation Section 1.401(k)-1(d)(3), then such Participant’s Participant Deferral election then in effect, if any, shall terminate effective as soon as administratively practicable after such distribution. A Participant whose Compensation deferral election has been so terminated may again elect to defer a portion of his Compensation effective as of the first day of any subsequent Plan Year during which he is an Eligible Employee by executing and delivering to the Employer, in accordance with the procedures established by the Committee from time to time, a new Compensation deferral election prior to the start of such Plan Year; provided, however, that a Participant shall not be permitted to elect to defer his Compensation prior to the first day of the first Plan Year commencing after the end of the elective deferral suspension period applicable to the Participant under the Savings Plan in connection with his receipt of a hardship distribution.

3.2           Matching Deferrals.

(a)           For each Plan Year, the Employer shall contribute on behalf of each Participant an amount equal to 100% of such Participant’s Participant Deferrals up to 6% of the excess of such Participant’s Qualified Compensation for such Plan Year over the limit applicable under Section 401(a)(l7) of the Code for such Plan Year. Such Matching Deferrals shall be made under the Plan regardless of whether or the extent to which the Participant makes Basic Contributions under the Savings Plan for such Plan Year. Matching Deferrals made on a Participant’s behalf pursuant to this Section 3.2 for a Plan Year shall be credited to such Participant’s Matching Account as of the date received by the Trustee.

(b)           Notwithstanding anything to the contrary in this Section 3.2, the amount of Matching Deferrals with respect to any Participant for a Plan Year shall not be affected by such Participant’s actions or inactions under the Savings Plan or any other qualified employer plan (as defined under Section 409A of the Code) that is sponsored by the Employer or any of its Affiliates and that provides for matching or other similar contingent contributions with respect to elective deferrals and other employee pre-tax contributions subject to the contribution restrictions under Section 401(a)(3) or 402(g) of the Code, and any after-tax contributions by such Eligible Participant to the Savings Plan or any such other qualified employer plan, to the extent that such actions or inactions would cause (i) an increase in the Matching Deferrals under the Plan for such Participant in excess of the limit with respect to elective deferrals under Section 402(g)(1)(A), (B), and (C) of the Code in effect for the Plan Year in which such action or inaction occurs, (ii) a decrease in the Matching Deferrals under the Plan for such Participant in excess of such limit under Section 402(g)(1)(A), (B), and (C) of the Code or (iii) the amount of Matching Deferrals to exceed 100% of the matching or contingent amounts that would be provided under such qualified employer plan(s) absent plan-based restrictions that reflect limits on qualified plan contributions under the Code.

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3.3           Retirement Deferrals. For each Plan Year, the Employer shall contribute an amount on behalf of each Participant equal to 3% of the excess, if any, of such Participant’s Qualified Compensation over the limit applicable under Section 401(a)(17) of the Code for such Plan Year. In addition, for each Plan Year, the Employer shall contribute an amount on behalf of each Participant equal to the amount, if any, by which his Retirement Contributions under the Savings Plan for such Plan Year were limited by Section 401(a)(4) of the Code and/or Section 415 of the Code. Retirement Deferrals made on a Participant’s behalf pursuant to this Section 3.3 for a Plan Year shall be credited to such Participant’s Retirement Account as of the date received by the Trustee.

3.4           Valuation of Accounts. Subject to Section 4.3, all amounts credited to a Participant’s Account shall be deemed invested in accordance with Article IV on or as soon as administratively practicable following the date such amount is credited to such Account, and, except as provided in Section 4.2, the balance of each Account shall reflect the result of the daily pricing of the assets in which such Account is deemed invested from the time of such crediting until the time of distribution.

ARTICLE IV

DEEMED INVESTMENT OF FUNDS

4.1           Participant Directions.

(a)           Each Participant shall designate, in accordance with the procedures established from time to time by the Committee, the manner in which the amounts allocated to his Accounts shall be deemed to be invested from among the Funds made available from time to time for such purpose by the Committee. Such Participant may designate one of such Funds for the deemed investment of all the amounts allocated to his Accounts or he may split the deemed investment of the amounts allocated to his Accounts between such Funds in such increments as the Committee may prescribe. If a Participant fails to make a proper designation, then his Accounts shall be deemed to be invested in the Fund or Funds designated by the Committee from time to time in a uniform and nondiscriminatory manner. In the event that during any Plan Year the Committee does not make available Funds for the deemed investment of the amounts in Participants’ Accounts, the amounts in each Participant’s Accounts shall be credited with earnings at a rate of return set by the Committee prior to the start of the period during which no such Funds are available for the deemed investment of the amounts in Participants’ Accounts.

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(b)           A Participant may change his deemed investment designation for future deferrals to be allocated to his Accounts. Any such change shall be made in accordance with the procedures established by the Committee from time to time and the frequency of such changes may be limited by the Committee.

(c)           A Participant may elect to convert his deemed investment designation with respect to the amounts already allocated to his Accounts. Any such conversion shall be made in accordance with the procedures established by the Committee from time to time and the frequency of such conversions may be limited by the Committee.

4.2           Crediting Rate in the Absence of Funds. Notwithstanding the provisions of Sections 3.4 and 4.1, if for any Plan Year (or portion thereof) the Committee does not make available Funds for the deemed investment of the amounts in Participants’ Accounts, then the amounts in each Participant’s Accounts shall be credited with earnings during such period based upon a rate of return set by the Committee prior to the start of such period. The rate of return set by the Committee may be fixed for the entire Plan Year (or portion thereof) or it may vary from time to time based on one or more benchmark rates selected by the Committee. As of each Valuation Date that occurs during a period for which this Section 4.2 applies, each Account of a Participant shall be increased to reflect an earnings allocation as described in this Section 4.2 based upon the balance in such Account as of the next preceding Valuation Date; provided, however, that the balance of such Account as of the next preceding Valuation Date shall be reduced by the amount of any distributions made therefrom since the next preceding Valuation Date.

4.3           Interest for Certain Inactive Participants. Notwithstanding anything to the contrary herein, each month, the Accounts of each individual who was an Inactive Participant on the Effective Date shall be deemed to earn, and, as of the last day of such month, shall be credited with, a rate of interest equal to the average rate earned in the Fixed Income Fund of the Savings Plan during such month. Notwithstanding the preceding provisions of this Section 4.3, in the event that an individual who was an Inactive Participant on the Effective Date later becomes an Eligible Employee, from and after the time he is designated as an Eligible Employee, his Accounts shall be credited with deemed investment earnings pursuant to the provisions of Section 4.1 and/or 4.2, as applicable.

ARTICLE V

DETERMINATION OF VESTED INTEREST AND FORFEITURES

5.1           Deferral and Matching Accounts. A Participant shall have a 100% Vested Interest in his Deferral Account and Matching Account at all times.

5.2           Retirement Account. A Participant’s Vested Interest in his Retirement Account shall equal such Participant’s Vested Interest in his “Retirement Account” under the Savings Plan.

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5.3           Forfeitures. A Participant who has a Vested Interest in his Retirement Account that is less than 100% as of the date of his Termination of Service shall forfeit to the Employer the nonvested portion of such Account as of the date of such termination. Notwithstanding the preceding provisions of this Article V, the vested portion of a Participant’s Account(s) may be forfeited to the Employer under Section 7.7.

ARTICLE VI

IN-SERVICE WITHDRAWALS AND LOANS

6.1           Prohibition on In-Service Withdrawals and Loans. Participants shall not be permitted to make withdrawals from the Plan prior to incurring a Termination of Service. Participants shall not, at any time, be permitted to borrow from their Accounts or the Trust Fund.

ARTICLE VII

TERMINATION BENEFITS

7.1           Amount of Benefit. Upon a Participant’s Termination of Service, such Participant, or, in the event of the death of a Participant, such Participant’s Beneficiary, shall be entitled to a benefit equal in value to the Participant’s Vested Interest in the balance in his Accounts as of the Valuation Date immediately preceding the date the payment of such benefit is to be made or commence pursuant to Section 7.2.

7.2           Time of Payment.

(a)           Subject to Sections 7.2(b) and 7.2(c) and Section 11.10, payment of a Participant’s benefit under Section 7.1 shall be made (or, in the case of installment payments elected pursuant to Section 7.3(b), commence) as soon as administratively practicable following the date of such Participant’s Termination of Service.

(b)           Notwithstanding anything to the contrary herein, in the case of a Participant who is a Specified Employee, a distribution upon such Participant’s Termination of Service (other than a Termination of Service that occurs as a result of his death) shall be made or commence, as applicable, on the first business day that is six months after the date of such Participant’s Termination of Service (or, if earlier, as soon as administratively practicable following the death of such Participant). If such Participant elected installment payments pursuant to Section 7.3(b), the second and subsequent installment payments shall occur on the Valuation Date coincident with or next following the anniversary of the date of his Termination of Service and each subsequent anniversary of his Termination of Service for the duration of the applicable installment period.

(c)           Notwithstanding the foregoing provisions of this Section 7.2 or any election of installment payments pursuant to Section 7.3(b), in the event of the death of a Participant (including, but not limited to, a Specified Employee) prior to the commencement or complete distribution of his Account(s), the remaining balances in his Account(s) shall be paid to his Beneficiary in the form of a single lump sum as soon as administratively practicable following his death.

7.3           Alternative Forms of Benefit Payments.

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(a)           Unless a Participant has elected installment payments pursuant to Section 7.3(b), a Participant’s benefit under Section 7.1 shall be paid in the form of a single lump sum payment.

(b)           Any Participant other than a Restricted Inactive Participant may elect to receive his benefit payments under the Plan in annual installments over any whole number of years from two to five. Any such election shall be made by the Participant in writing on the form prescribed by the Committee at the time specified in Section 7.3(c). The amount of each annual installment shall be computed by dividing the Participant’s Vested Interest in the unpaid balance in his Accounts (determined initially as of the date payment of such Participant’s benefit is scheduled to commence pursuant to Section 7.2 and, in subsequent years during the installment period, on the annual anniversary of such date) by the number of annual installments remaining. Notwithstanding any election by a Participant to receive his benefit payments under the Plan in installments, in the event of such Participant’s death prior to the end of the applicable installment period, the remaining balance in such Participant’s Account shall be paid as soon as administratively feasible following his death in one lump sum payment to such Participant’s Beneficiary.

(c)            A Participant’s election pursuant to Section 7.3 shall be made on or before the date he first becomes a Participant.

7.4           Beneficiaries.

(a)            Each Participant shall have the right to designate the Beneficiary or Beneficiaries to receive payment of his benefit in the event of his death. Each such designation shall be made by executing the Beneficiary designation form prescribed by the Committee and filing such form with the Committee during such Participant’s lifetime. Any such designation may be changed at any time by execution of a new designation in accordance with this Section 7.4 during such Participant’s lifetime.

(b)           If no such designation is on file with the Committee at the time of the death of s Participant or such designation is not effective for any reason as determined by the Committee, then the designated Beneficiary or Beneficiaries to receive such benefit shall be as follows:

(i)            If a Participant leaves a surviving spouse, his benefit shall be paid to such surviving spouse;

(ii)           If a Participant leaves no surviving spouse, his benefit shall be paid to such Participant’s executor or administrator, acting on behalf of his estate or, if there is no administration of such Participant’s estate, to his heirs at law.

7.5           Accelerated Pay-Out of Certain Benefits. Notwithstanding any provision in Section 7.3(b) to the contrary, if a Participant’s benefit payments are to be paid in a form other than entirely in a single lump sum payment and the aggregate amount to be paid with respect to such Participant is less than $100,000, then the Committee shall cause the entire remaining Vested Interest in the balance in such Participant’s Accounts to be paid in a single lump sum payment as soon as administratively practicable following such Participant’s Termination of Service, but subject to the delayed payment requirement for Specified Employees described in Section 7.2(b).

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7.6           Payment of Benefits. To the extent the Trust Fund, if any, has sufficient assets, the Trustee, as directed by the Committee, shall pay benefits to Participants or their Beneficiaries, except to the extent the Employer pays the benefits directly and provides adequate evidence of such payment to the Trustee. To the extent the Trustee does not or cannot pay benefits out of the Trust Fund or no Trust Fund has been established, the benefits shall be paid by the Employer. Any benefit payments made to a Participant or for his benefit pursuant to any provision of the Plan shall be debited to such Participant’s Accounts. All benefit payments shall be made in cash except that the portion of a Participant’s Accounts invested in the common stock of Cameron International Corporation (“Common Stock”) shall be paid in full shares of Common Stock with any fractional shares of Common Stock to be paid or transferred in cash. Conversions of fractional shares of Common Stock to cash shall be based upon the value of Common Stock on the Valuation Date coincident with or immediately preceding the date of payment.

7.7           Unclaimed Benefits. In the case of a benefit payable on behalf of a Participant, if the Committee is unable to locate the Participant or Beneficiary to whom such benefit is payable, upon the Committee’s determination thereof, such benefit shall be forfeited to the Employer. Notwithstanding the foregoing, if subsequent to any such forfeiture the Participant or Beneficiary to whom such benefit is payable makes a valid claim for such benefit, such forfeited benefit (without any adjustment for earnings or loss after the time of such forfeiture) shall be restored to the Plan by the Employer and paid in accordance with the Plan.

7.8           Other Permitted Accelerated Payments. Notwithstanding anything in the Plan to the contrary, the Committee, in its sole discretion, may direct the accelerated payment of Plan benefits under any of circumstances:

(a)           an individual other than the Participant shall be entitled to receive distribution of all or such portion of the Vested Interest in such Participant’s account to the extent necessary to comply with a domestic relations order (as defined in Section 414(p)(1)(B) of the Code) relating to such Participant;

(b)           a Participant shall be entitled to receive distribution of all or such portion of the Vested Interest in his Account, in a single lump sum payment, to the extent necessary for any Federal officer or employee in the executive branch to comply with an ethics agreement with the Federal government;

(c)           a Participant shall be entitled to receive distribution of all or such portion of the Vested Interest in his Account, in a single lump sum payment, to the extent reasonably necessary to avoid the violation of an applicable Federal, state, local or foreign ethics law or conflicts of interest law;

(d)           a Participant shall be entitled to receive a distribution of such portion of the Vested Interest his Account, in a single lump sum payment, as is necessary to pay (i) the Federal Insurance Contributions Act (FICA) tax imposed under Sections 3101, 3121(a) and 3121(v)(2) of the Code, where applicable, on Compensation deferred under the Plan (the “FICA Amount”), (ii) the income tax at source on wages imposed under Section 3401 of the Code, or the corresponding withholding provisions of applicable state, local, or foreign tax laws as a result of the payment of the FICA Amount, and (iii) to pay the additional income tax at source on wages attributable to the pyramiding Section 3401 wages and taxes; provided, however, that such distribution shall not exceed the aggregate of the FICA Amount and the income tax withholding related to such FICA Amount;

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(e)           a Participant shall be entitled to receive distribution of such portion of the Vested Interest of his Account, in a single lump sum payment, as is required to be included in the Participant’s income as a result of the failure of the Plan to comply with Section 409A of the Code; provided, however, that such distribution shall not exceed the amount required to be included in the Participant’s income as a result of such failure;

(f)           a Participant shall be entitled to receive distribution of all or such portion of the Vested Interest in his Account, in a single lump sum payment, to reflect (i) the payment of state, local or foreign tax obligations arising from participation in the Plan that apply to an amount deferred under the Plan before the amount is paid or made available to the Participant; provided, however, that such distribution shall not exceed the amount of such state, local or foreign tax taxes as are due as a result of participation in the Plan (the “Other Taxes”) and may be made in the form of withholding pursuant to the provisions of the applicable law or by distribution directly to the Participant; and/or (ii) the payment of income tax at source on wages imposed under Section 3401 of the Code as a result of the distribution of the Other Taxes and to pay the additional income tax at source on wages imposed under Section 3401 attributable to the payment of such additional Section 3401 wages and Other Taxes; provided, however, that such distribution shall not exceed the amount of the Other Taxes and the income tax withholding related to the Other Taxes;

(g)           a Participant shall be entitled to receive distribution of all or such portion of the Vested Interest in his Account, in a single lump sum payment, in connection with the settlement of an arms’ length bona fide dispute between the Employer and the Participant as to the Participant’s right to benefits under the Plan to the extent contemplated under Section 409A of the Code;

(h)           a Participant shall be entitled to receive distribution of all or such portion of the Vested Interest in his Account, in a single lump sum payment, under any other circumstance permitted under Treasury Regulation Section 1.409A-3(j)(4) or any successor regulation thereto or prescribed by the Commissioner of Internal Revenue in generally applicable guidance published in the Internal Revenue Bulletin; and

(i)            the Executive Committee may direct, in its discretion, that the Vested Interest of each Participant in his Account under the Plan be distributed in connection with a termination of the Plan in accordance with Section 11.5.

Any distribution to be made pursuant to Section 7.8 (a)-(h) shall be made as soon as administratively practicable following the determination that such distribution should be made.

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ARTICLE VIII

ADMINISTRATION OF THE PLAN

8.1           Appointment of Committee. The general administration of the Plan shall be vested in the Committee.

8.2           Self-Interest of Participants. No member of the Committee shall have any right to vote or decide upon any matter relating solely to himself under the Plan or to vote in any case in which his individual right to claim any benefit under the Plan is particularly involved. In any case in which a Committee member is so disqualified to act and the remaining members cannot agree, the Executive Committee shall appoint a temporary substitute member to exercise all the powers of the disqualified member concerning the matter in which he is disqualified.

8.3           Committee Powers and Duties. The Committee shall supervise the administration and enforcement of the Plan according to the terms and provisions hereof and shall have all powers necessary to accomplish these purposes, including, but not by way of limitation, the right, power, and authority:

(a)           To establish, amend, suspend, or waive rules, regulations, and bylaws for the administration of the Plan that are not inconsistent with the terms and provisions hereof, and to enforce the terms of the Plan and the rules and regulations promulgated thereunder by the Committee;

(b)           To construe in its discretion all terms, provisions, conditions, and limitations of the Plan;

(c)           To correct any defect or to supply any omission or to reconcile any inconsistency that may appear in the Plan in such manner and to such extent as it shall deem in its discretion expedient to effectuate the purposes of the Plan;

(d)           To employ and compensate such accountants, attorneys, investment advisors, and other agents, employees, and independent contractors as the Committee may deem necessary or advisable for the proper and efficient administration of the Plan;

(e)           To determine in its discretion all questions relating to eligibility;

(f)            To determine whether and when a Participant has incurred a Termination of Service, and the reason for such termination;

(g)           To make a determination in its discretion as to the right of any person to a benefit under the Plan and to prescribe procedures to be followed by Participants and Beneficiaries in obtaining benefits hereunder;

(h)           To receive and review reports from the Trustee as to the financial condition of the Trust Fund, including its receipts and disbursements; and

(i)            To establish or designate Funds as investment options as provided in Section 4.1.

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8.4           Claims Review. Claims for Plan benefits and reviews of Plan benefit claims that have been denied or modified will be processed in accordance with the written Plan claims procedures established by the Committee, which procedures are hereby incorporated by reference as a part of the Plan as such procedures may be amended from time to time by the Committee.

8.5           Employer to Supply Information. The Employer shall supply full and timely information to the Committee, including, but not limited to, information relating to each Participant’s Compensation, retirement, death, or other cause of Termination of Service and such other pertinent facts as the Committee may require. The Employer shall advise the Trustee, if any, of such of the foregoing facts as are deemed necessary for the Trustee to carry out the Trustee’s duties under the Plan and the Trust Agreement. When making a determination in connection with the Plan, the Committee shall be entitled to rely upon the aforesaid information furnished by the Employer.

8.6           Indemnity. In addition to whatever rights of indemnification a member of the Committee, or any other person or persons to whom any power, authority, or responsibility is delegated pursuant to the Plan, may be entitled under the organizational documents of the Company, under any provision of law, or under any other agreement or insurance policy or arrangement, to the extent permitted by applicable law, the Company will indemnify and hold harmless each current and former member of the Executive Committee, each current and former member of the Committee, and each other current and former employee of the Employer to whom Plan administrative or fiduciary functions have been delegated by the Committee or under the Plan against any and all expenses and liabilities arising out of such individual’s administrative functions or fiduciary responsibilities under or incident to the Plan, including any expenses and liabilities that are caused by, or result from, an act or omission constituting the negligence of such individual in the performance of such functions or responsibilities, but excluding expenses and liabilities that are caused by or result from such individual’s own gross negligence or willful misconduct. Expenses against which such individual will be indemnified hereunder will include, without limitation, the amounts of any settlement or judgment, costs, counsel fees, and related charges reasonably incurred in connection with a claim asserted or a proceeding brought or settlement thereof.

8.7           Change in Control. Notwithstanding any provision in the Plan to the contrary, upon the occurrence of a Change in Control, the Committee’s powers and duties under the Plan shall cease to the extent, if any, such powers and duties are vested in the Trustee under the terms of any Trust Agreement.

ARTICLE IX

ADMINISTRATION OF FUNDS

9.1           Payment of Expenses. All expenses incident to the administration of the Plan and Trust, including but not limited to, legal, accounting, Trustee fees, and expenses of the Committee, may be paid by the Employer and, if not paid by the Employer, shall be paid by the Trustee, at the direction of the Committee, from the Trust Fund.

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9.2           Trust Fund Property. All income, profits, recoveries, contributions, forfeitures and any and all moneys, securities and properties of any kind at any time received or held by the Trustee shall be held for investment purposes as a commingled Trust Fund pursuant to the terms of the Trust Agreement. The Committee shall maintain one or more Accounts in the name of each Participant, but the maintenance of an Account designated as the Account of a Participant shall not mean that such Participant shall have a greater or lesser interest than that due him by operation of the Plan and shall not be considered as segregating any funds or property from any other funds or property contained in the commingled fund. No Participant shall have any title to any specific asset in the Trust Fund.

ARTICLE X

NATURE OF THE PLAN

10.1         Establishment of Trust Fund. The Employer intends and desires by the adoption of the Plan to recognize the value to the Employer of the past and present services of employees covered by the Plan and to encourage and assure their continued service with the Employer by making more adequate provision for their future retirement security. The establishment of the Plan is made necessary by certain benefit limitations that are imposed on the Savings Plan by ERISA and by the Code. The Plan is intended to constitute an unfunded, unsecured plan of deferred compensation for a select group of management or highly compensated employees of the Employer. Plan benefits herein provided are a contractual obligation of the Employer which shall be paid out of the Trust Fund or the Employer’s general assets. Nevertheless, subject to the terms hereof and of the Trust Agreement, the Employer shall transfer money or other property to the Trustee to provide Plan benefits hereunder and the Trustee shall pay Plan benefits to Participants and Beneficiaries out of the Trust in accordance with the terms of the Trust Agreement. To the extent that the Employer transfers assets to the Trustee pursuant to the Trust Agreement, the Committee may, but need not, establish procedures for the Trustees to invest the Trust Fund in accordance with each Participant’s designated deemed investments pursuant to Section 4.1 respecting the portion of the Trust Fund assets equal to such Participant’s Accounts.

10.2         Ownership of Trust Fund Assets. The Employer shall remain the owner of all assets in the Trust Fund and the assets shall be subject to the claims of the Employer’s creditors if the Employer ever becomes insolvent. For purposes hereof, the Employer shall be considered “insolvent” if (a) the Employer is unable to pay its debts as such debts become due or (b) the Employer is subject to a pending proceeding as a debtor under the United Sates Bankruptcy Code (or any successor federal statute). The Chief Executive Officer of the Employer and its board of directors shall have the duty to inform the Trustee in writing if the Employer becomes insolvent. Such notice given under the preceding sentence by any party shall satisfy all of the parties’ duty to give notice. When so informed, the Trustee shall suspend payments to the Participants and Beneficiaries and hold the assets for the benefit of the Employer’s general creditors. If the Trustee receives a written allegation that the Employer is insolvent, the Trustee shall suspend payments to the Participants and Beneficiaries and hold the Trust Fund for the benefit of the Employer’s general creditors, and shall determine in the manner specified in the Trust Agreement whether the Employer is insolvent. If the Trustee determines that the Employer is not insolvent, the Trustee shall resume payments to the Participants and Beneficiaries. No Participant or Beneficiary shall have any preferred claim to, or any beneficial ownership interest in, any assets of the Trust Fund, and, upon commencement of participation in the Plan, each Participant shall have agreed to waive his priority credit position, if any, under applicable state law with respect to the assets of the Trust Fund.

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10.3         Limitation on Funding. Notwithstanding anything to the contrary herein or in the Trust Agreement, in no event shall money and/or property be transferred to the Trust if such transfer would result in adverse tax consequences to a Participant pursuant to Section 409A(b) of the Code.

ARTICLE XI

MISCELLANEOUS

11.1         No Contract of Employment. The adoption and maintenance of the Plan shall not be deemed to be a contract of employment or for other services between the Employer and any person or to be consideration for the employment of any person. Nothing herein contained shall be deemed to (a) give any person the right to be retained in the employ or other service of the Employer, (b) restrict the right of the Employer to discharge any person or terminate any service relationship at any time, (c) give the Employer the right to require that any person to remain in the employ or service of the Employer, (d) restrict any person’s right to terminate his employment or service relationship with the Employer at any time, or (e) be a commitment on the part of the Employer to continue the rate of compensation of a Participant for any period.

11.2         Alienation of Interest Forbidden. The interest of a Participant or his Beneficiary or Beneficiaries hereunder may not be sold, transferred, assigned, or encumbered in any manner, either voluntarily or involuntarily, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge the same shall be null and void; neither shall the benefits hereunder be liable for or subject to the debts, contracts, liabilities, engagements or torts of any person to whom such benefits or funds are payable, nor shall they be an asset in bankruptcy or subject to garnishment, attachment or other legal or equitable proceedings. Notwithstanding the foregoing, the Plan shall comply with the terms of a domestic relations order as provided in Section 7.8(a).

11.3         Payments of Benefits to Others. If any Participant or Beneficiary to whom a benefit is payable under the Plan is unable to care for his affairs because of illness or accident, any payment due (unless prior claim therefor shall have been made by a duly qualified guardian or other legal representative) may be paid to the spouse, parent, brother, or sister, or any other individual deemed by the Committee, in its sole discretion, to be authorized to receive the account of such Participant or Beneficiary. Any payment made in accordance with the provisions of this Section 11.3 shall be a complete discharge of all liabilities and obligations of the Plan, the Committee, the Employer and the Executive Committee with respect to such benefit.

11.4         Withholding. All Participant Deferrals, Matching Deferrals and Retirement Deferrals and payments provided for hereunder shall be subject to applicable withholding and other deductions as shall be required of the Employer under any applicable local, state or federal law.

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11.5         Amendment and Termination.

(a)           The Executive Committee may from time to time, in its discretion, amend, in whole or in part, any or all of the provisions of the Plan; provided, however, that no amendment may be made that would adversely affect the rights of a Participant with respect to amounts already allocated to his Accounts; provided further, however, that, notwithstanding the foregoing (and without constituting an impermissible impairment of Participant rights in violation of this sentence), the Committee may make such amendments to the Plan as are necessary or advisable, as determined by the Committee in its discretion, to enable the Plan and the Account(s) of the Participants established hereunder to comply with the requirements of Section 409A of the Code.

(b)           The Committee may, in its sole discretion (and without constituting an impermissible impairment of Participant rights in violation of Section 11.5(a)), terminate the Plan and accelerate the time and form of payment of all Vested Interests in Accounts under the Plan, under the following circumstances:

(i)            the Committee may terminate and liquidate the Plan within 12 months of a corporate dissolution taxed under Section 331 of the Code, or with the approval of a bankruptcy court pursuant to 11 U.S.C. § 503(b)(1)(A), provided that the balance of all of the Participants’ Accounts under the Plan are included in the Participants’ respective gross incomes in the latest of (1) the calendar year in which the Plan termination and liquidation occurs; (2) the calendar year in which the Participant attains a 100% Vested Interest in such amount, or (3) the first calendar year in which the payment is administratively practicable;

(ii)           the Committee may, in its discretion, terminate and liquidate the Plan in connection with a Change in Control of the Company (or, with respect to a Participant who is employed by an Employer other than the Company, a Change in Control of such Employer), provided that the following requirements are satisfied:

(A)          the Change in Control of such entity constitutes a change in ownership or control of such entity or a substantial portion of its assets within the meaning of Section 409A of the Code (a “409A Change in Control”) and the Committee (or, if applicable, its appropriate counterpart with respect to any Employer other than the Company) takes irrevocable action to terminate and liquidate the Plan within 30 days preceding or 12 months following such 409A Change in Control;

(B)          the Vested Interest of each Participant in his Account under the Plan and all Other Arrangements (as defined in paragraph (c) below) are distributed within 12 months following the date that all necessary action to terminate and liquidate the Plan and the Other Arrangements is irrevocably taken; and

(C)          all plans, arrangements, methods, programs and other arrangements that are sponsored by the “service recipient” (within the meaning of Section 409A of the Code), as determined immediately following such 409A Change in Control, with respect to which deferrals of compensation are treated as having been deferred under a single plan under Treasury Regulation Section 1.409A-1(c)(2) (collectively, the “Other Arrangements”), are terminated and liquidated with respect to each Participant who experienced such 409A Change in Control. For purposes of any 409A Change in Control that results from an asset purchase transaction, the applicable “service recipient” with the discretion to liquidate and terminate the Plan and the Other Arrangements shall be the “service recipient” that is primarily liable immediately after the transaction for the payment of the Plan benefits.

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(iii)          the Committee may, in its discretion, terminate and liquidate the Plan, provided that:

(A)          the termination and liquidation does not occur proximate to a down turn in the financial health of the Company and all entities that would be considered a single “service recipient” along with the Company under Section 409A;

(B)          such “service recipient” terminates and liquidates all plans, agreements, methods, programs and other arrangements sponsored by the service recipient that would be aggregated with any terminated and liquidated plans, agreements, methods, programs and other arrangements under Treasury Regulation Section 1.409A-1(c) if the same Participant had deferrals of compensation under all such plans, agreements, methods, programs or other arrangements;

(C)          no payments in liquidation of the Plan are made within 12 months of the date that the Company takes all necessary action to irrevocably terminate and liquidate the Plan, other than payments that would be payable under the terms of such arrangements if the action to terminate and liquidate the Plan had not occurred;

(D)          all payments are made within 24 months of the date that the Company takes all necessary action to irrevocably terminate and liquidate the Plan; and

(E)           the Company and all other entities required to be considered a single “service recipient” within the meaning of Section 409A of the Code do not adopt a new Plan that would be aggregated with any terminated and liquidated plan under Treasury Regulation Section 1.409A-1(c) if the same Participant participated in both plans at any time within three years following the date that the service recipient took all necessary action to irrevocably terminate and liquidate the Plan.

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(iv)          the Committee may, in its discretion, terminate and liquidate the Plan upon such other events or conditions as the Commissioner of Internal Revenue may prescribe in generally applicable guidance published in the Internal Revenue Bulletin.

In the event that the Plan is terminated, the Vested Interest in the balance in a Participant’s Accounts shall be paid to such Participant or his Beneficiary in the manner specified by the Committee (but subject to the distribution timing requirements described above), which may include the payment of a single lump sum payment in full satisfaction of all of such Participant’s or Beneficiary’s benefits hereunder.

11.6         Severability. If any provision of the Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining provisions hereof; instead, each provision shall be fully severable and the Plan shall be construed and enforced as if said illegal or invalid provision had never been included herein.

11.7         Controlling Status. No Participant shall be eligible for a benefit under the Plan unless such Participant is a Participant on the date of his retirement, death, or other termination of employment.

11.8         Claims of Other Persons. The provisions of the Plan shall in no event be construed as giving any person, firm or corporation any legal or equitable right as against the Employer, its officers, employees, or directors or the Committee or the members of the Committee, except any such rights as are specifically provided for in the Plan or are hereafter created in accordance with the terms and provisions of the Plan.

11.9         Provisions Binding. All of the provisions of the Plan shall be binding upon all persons who will be entitled to any benefit hereunder, including but not limited to all Participants and their heirs and personal representatives.

11.10       Timing of Payments. Payment of Plan benefits may be subject to administrative or other delays that result in payment to the Participant or his beneficiaries on a date later than the date specified in the Plan or the Participant’s election form. Any such payment delays will comply with Section 409A of the Code, including without limitation Treasury Regulation Section 1.409A-2(b)(7). No Participant or Beneficiary shall be entitled to any additional earnings or interest in respect of any such payment delays, nor shall any Participant or Beneficiary be provided any election with respect to the timing of any delayed payment.

11.11       Governing Laws. All provisions of the Plan shall be construed in accordance with the laws of Texas except to the extent preempted by federal law.

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11.12       Compliance with Code Section 409А. The Plan is intended to satisfy the requirements of Section 409А of the Code, as applicable, in order to avoid any adverse tax consequences resulting from any failure to comply with Section 409А of the Code and, as a result, the Plan shall be operated in a manner consistent with such compliance. Except to the extent expressly set forth in the Plan, the Participant (and/or the Participant’s Beneficiary, as applicable) shall have no right to dictate the taxable year in which any payment hereunder that is subject to Section 409А of the Code should be paid. Notwithstanding the foregoing, the Company makes no representation that the Plan complies with Section 409A of the Code and the Company shall not have any liability to any Participant or Beneficiary for any failure to comply with Section 409A of the Code.

[Remainder of this page intentionally left blank]

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EXECUTED this 28th day of March, 2013, effective for all purposes as provided above.

	
 

	
ONESUBSEA LLC

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/

	
William C. Lemmer

	
 

	
 

	
Name:

	
William C. Lemmer

	
 

	
 

	
Title:

	
President

SIGNATURE PAGE TO

ONESUBSEA LLC

NONQUALIFIED DEFERRED COMPENSATION PLANEXHIBIT 10.1

 

 

ALL AMERICAN PET COMPANY, INC.

2013 EQUITY COMPENSATION PLAN

 

		1.	Purpose.

 

1.1           Purpose.
The purpose of the ALL AMERICAN PET COMPANY, INC. 2013 Equity Compensation Plan is to enable the Company to offer to its employees,
officers, directors and consultants whose past, present and/or potential contributions to the Company and its Subsidiaries have
been, are or will be important to its success and an opportunity to acquire a proprietary interest in the Company. The types of
long-term incentive Awards that may be provided under the Plan will enable the Company to respond to changes in compensation practices,
tax laws, accounting regulations and the size and diversity of its businesses.

 

		2.	Definitions.

 

2.1           Definitions.
For purposes of the Plan, the following terms shall be defined as set forth below:

 

(a)           “Agreement”
means the agreement between the Company and the Holder setting forth the terms and conditions of an Award under the Plan. Agreements
shall be in the form(s) attached hereto.

 

(b)           “Award”
means Stock Options, Restricted Stock and/or other Stock Based Awards awarded under the Plan.

 

(c)           “Board”
means the Board of Directors of the Company.

 

(d)           “Code”
means the Internal Revenue Code of 1986, as amended from time to time.

 

(e)           “Committee”
means the Board or any committee of the Board that the Board may designate to administer the Plan or any portion thereof.  If
no Committee is so designated, then all references in this Plan to “Committee” shall mean the Board.

 

(f)            “Common
Stock” means the common stock of the Company, $0.001 par value per share.

 

(g)           “Company”
means ALL AMERICAN PET COMPANY, INC., a corporation organized under the laws of the State of Nevada.

 

(h)           “Disability”
means physical or mental impairment as determined under procedures established by the Committee for purposes of the Plan.

 

(i)            “Effective
Date” means the date set forth in Section 12.1, below.

 

(j)            “Fair
Market Value”, means, as of any given date: (i) if the Common Stock is listed on a national securities exchange, the closing
price of the Common Stock in the principal trading market for the Common Stock on such date, as reported by the exchange (or on
the last preceding trading date if such security was not traded on such date); (ii) if the Common Stock is not listed on a national
securities exchange, but is traded in the over-the-counter market, the closing bid price for the Common Stock on such date, as
reported by the OTC Bulletin Board or the OTC Markets Inc. or similar publisher of such quotations; and (iii) if the fair market
value of the Common Stock cannot be determined pursuant to clause (i) or (ii) above, such price as the Committee shall determine,
in good faith.

 

(k)           “Holder”
means a person who has received an Award under the Plan.

 

(l)            “Normal
Retirement” means retirement from active employment with the Company or any Subsidiary, other than for Cause or due to death
or disability, of a Holder who; (i) has reached the age of 65; (ii) has reached the age of 62 and has completed five years of service
with the Company; or (iii) has reached the age of 60 and has completed 10 years of service with the Company.

 

(m)           “Other
Stock-Based Award” means an Award under Section 9, below, that is valued in whole or in part by reference to, or is otherwise
based upon, Common Stock.

 

(n)           “Parent”
means any present or future “parent corporation” of the Company, as such term is defined in Section 424(e) of the Code.

 

(o)           “Plan”
means the All American Pet Company 2013 Equity Compensation Plan, as hereinafter amended from time to time.

 

(p)           “Repurchase
Value” shall mean the Fair Market Value in the event the Award to be repurchased under Section 10.2 is comprised of shares
of Common Stock and the difference between Fair Market Value and the Exercise Price (if lower than Fair Market Value) in the event
the Award is a Stock Option or Stock Appreciation Right; in each case, multiplied by the number of shares subject to the Award.

 

    	-1-

    	 

    

 

(q)           “Restricted
Stock” means Common Stock, received under an Award made pursuant to Section 8, below that is subject to restrictions under
said Section 8.

 

(r)           “SAR
Value” means the excess of the Fair Market Value (on the exercise date) over the exercise price that the participant would
have otherwise had to pay to exercise the related Stock Option, multiplied by the number of shares for which the Stock Appreciation
Right is exercised.

 

(s)           “Stock
Appreciation Right” means the right to receive from the Company, on surrender of all or part of the related Stock Option,
without a cash payment to the Company, a number of shares of Common Stock equal to the SAR Value divided by the Fair Market Value
(on the exercise date).

 

(t)            “Stock
Option” or “Option” means any option to purchase shares of Common Stock that is granted pursuant to the Plan.

 

(u)           “Subsidiary”
means any present or future “subsidiary corporation” of the Company, as such term is defined in Section 424(f) of the
Code.

 

		3.	Administration.

 

3.1           Committee
Membership. The Plan shall be administered by the Board or a committee designated by the Board. Committee members shall serve for
such term as the Board may in each case determine, and shall be subject to removal at any time by the Board. The Committee members,
to the extent deemed to be appropriate by the Board, shall be “non-employee directors” as defined in Rule 16b-3 promulgated
under the Securities Exchange Act of 1934, as amended (“Exchange Act”).

 

3.2           Powers
of Committee. The Committee shall have the authority and responsibility to recommend to the Board for approval, Awards for Board
members, executive officers, non-executive employees and consultants of the Company, pursuant to the terms of the Plan: (i) Stock
Options, (ii) Stock Appreciation Rights, (iii) Restricted Stock, and/or (iv) Other Stock-Based Awards. For purposes of illustration
and not of limitation, the Committee shall have the authority (subject to the express provisions of this Plan):

 

(a)           to
select the officers, employees, directors and consultants of the Company or any Subsidiary to whom Stock Options, Stock Appreciation
Rights, Restricted Stock, and/or Other Stock-Based Awards may from time to time be awarded hereunder.

 

(b)           to
determine the terms and conditions, not inconsistent with the terms of the Plan or requisite Board approval, of any Award granted
hereunder including, but not limited to, number of shares, share exercise price or types of consideration paid upon exercise of
Stock Options and the purchase price of Common Stock awarded under the Plan (including without limitation by a Holder’s conversion
of deferred salary or other indebtedness of the Company to the Holder), such as other securities of the Company or other property,
any restrictions or limitations, and any vesting, exchange, surrender, cancellation, acceleration, termination, exercise or forfeiture
provisions, as the Committee shall determine;

 

(c)           to
determine any specified performance goals or such other factors or criteria which need to be attained for the vesting of an Award
granted hereunder;

 

(d)           to
determine the terms and conditions under which Awards granted hereunder are to operate on a tandem basis and/or in conjunction
with or apart from other equity awarded under this Plan and cash Awards made by the Company or any Subsidiary outside of this Plan;
and

 

(e)           to
determine the extent and circumstances under which Common Stock and other amounts payable with respect to an Award hereunder shall
be deferred that may be either automatic or at the election of the Holder; and

 

3.3           Interpretation
of Plan. Subject to Section 11, below, the Committee shall have the authority to adopt, alter and repeal such administrative
rules, guidelines and practices governing the Plan as it shall, from time to time, deem advisable, to interpret the terms and provisions
of the Plan and any Award issued under the Plan (and to determine the form and substance of all Agreements relating thereto), and
to otherwise supervise the administration of the Plan. Subject to Section 11, below, all decisions made by the Committee pursuant
to the provisions of the Plan shall be made in the Committee’s sole discretion, subject to Board authorization if indicated,
and shall be final and binding upon all persons, including the Company, its Subsidiaries and Holders.

 

    	-2-

    	 

    

 

		4.	Stock Subject to Plan.

 

4.1           Number
of Shares. The total number of shares of Common Stock reserved and available for issuance under the Plan shall be one hundred sixty
million (160,000,000) shares. Shares of Common Stock under the Plan may consist, in whole or in part, of authorized and unissued
shares or treasury shares.  If any shares of Common Stock that have been granted pursuant to a Stock Option ceases to
be subject to a Stock Option, or if any shares of Common Stock that are subject to any Stock Appreciation Right, Restricted Stock,
Deferred Stock Award, or Other Stock-Based Award granted hereunder are forfeited or any such Award otherwise terminates without
a payment being made to the Holder in the form of Common Stock, such shares shall again be available for distribution in connection
with future grants and Awards under the Plan.

 

4.2           Adjustment
Upon Changes in Capitalization, Etc. In the event of any dividend (other than a cash dividend) payable on shares of Common Stock,
stock split, reverse stock split, combination or exchange of shares, or other similar event (not addressed in Section 4.3, below)
occurring after the grant of an Award, which results in a change in the shares of Common Stock of the Company as a whole, (i) the
number of shares issuable in connection with any such Award and the purchase price thereof, if any, shall be proportionately adjusted
to reflect the occurrence of any such event and (ii) the Committee shall determine whether such change requires an adjustment in
the aggregate number of shares reserved for issuance under the Plan or to retain the number of shares reserved and available under
the Plan in their sole discretion. Any adjustment required by this Section 4.2 shall be made by the Committee, in good faith, subject
to Board authorization if indicated, whose determination will be final, binding and conclusive.

 

4.3           Certain
Mergers and Similar Transactions. In the event of (a) a dissolution or liquidation of the Company, (b) a merger or consolidation
in which the Company is not the surviving corporation (other than a merger or consolidation with a wholly-owned subsidiary, a reincorporation
of the Company in a different jurisdiction, or other transaction in which there is no substantial change in the shareholders of
the Company or their relative stock holdings and the Awards granted under this Plan are assumed, converted or replaced by the successor
corporation, which assumption will be binding on all Awardees), (c) a merger in which the Company is the surviving corporation
but after which the shareholders of the Company immediately prior to such merger (other than any shareholder that merges, or which
owns or controls another corporation that merges, with the Company in such merger) cease to own their shares or other equity interest
in the Company, (d) the sale of substantially all of the assets of the Company, or (e) the acquisition, sale, or transfer of more
than 50% of the outstanding shares of the Company by tender offer or similar transaction, any or all outstanding Awards may be
assumed, converted or replaced by the successor corporation (if any), which assumption, conversion or replacement will be binding
on all Awardees. In the alternative, the successor corporation may substitute equivalent Awards or provide substantially similar
consideration to Awardees as was provided to shareholders (after taking into account the existing provisions of the Awards). The
successor corporation may also issue, in place of outstanding Shares of the Company held by the Holder, substantially similar shares
or other property subject to repurchase restrictions no less favorable to the Holder. In the event such successor corporation (if
any) refuses or otherwise declines to assume or substitute Awards, as provided above, (i) the vesting of any or all Awards granted
pursuant to this Plan will accelerate immediately prior to the effective date of a transaction described in this Section 4.3 and
(ii) any or all Stock Options granted pursuant to this Plan will become exercisable in full prior to the consummation of such event
at such time and on such conditions as the Committee determines. If such Stock Options are not exercised prior to the consummation
of the corporate transaction, they shall terminate at such time as determined by the Committee. Subject to any greater rights granted
to Awardees under the foregoing provisions of this Section 4.3, in the event of the occurrence of any transaction described in
this Section 4.3, any outstanding Awards will be treated as provided in the applicable agreement or plan of merger, consolidation,
dissolution, liquidation, or sale of assets.

 

		5.	Eligibility.

 

Awards may be made or granted to employees,
officers, directors and consultants who are deemed to have rendered or to be able to render significant services to the Company
or its Subsidiaries and who are deemed to have contributed or to have the potential to contribute to the success of the Company.
Notwithstanding anything to the contrary contained in the Plan, Awards covered or to be covered under a registration statement
on Form S-8 may be made under the Plan only if (a) they are made to natural persons, (b) who provide bona fide services to the
Company or its Subsidiaries, and (c) the services are not in connection with the offer and sale of securities in a capital raising
transaction, and do not directly or indirectly promote or maintain a market for the Company’s securities.

 

		6.	Stock Options.

 

6.1           Grant
and Exercise. Any Stock Option granted under the Plan shall contain such terms, not inconsistent with this Plan as the Committee
may from time to time approve.

 

6.2           Terms
and Conditions. Stock Options granted under the Plan shall be subject to the following terms and conditions:

 

(a)           Option
Term. The term of each Stock Option shall be fixed by the Committee.

 

(b)           Exercise
Price. The exercise price per share of Common Stock purchasable under a Stock Option shall be determined by the Committee at the
time of grant and may not be less than 50% of the Fair Market Value on the day of grant.

 

    	-3-

    	 

    

 

 

(c)           Exercisability.
Stock Options shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the
Committee and as set forth in Section 10, below. If the Committee provides, in its discretion, that any Stock Option is exercisable
only in installments, i.e., that it vests over time, the Committee may waive such installment exercise provisions at any time at
or after the time of grant in whole or in part, based upon such factors as the Committee shall determine.

 

(d)           Method
of Exercise. Subject to whatever installment, exercise and waiting period provisions are applicable in a particular case, Stock
Options may be exercised in whole or in part at any time during the term of the Stock Option, by giving written notice of exercise
to the Company specifying the number of shares of Common Stock to be purchased. Such notice shall be accompanied by payment in
full of the purchase price, which shall be in cash or, if provided in the Agreement, either in shares of Common Stock (including
Restricted Stock and other contingent Awards under this Plan) or partly in cash and partly in such Common Stock, or such other
means which the Committee determines are consistent with the Plan’s purpose and applicable law. Cash payments shall be made
by wire transfer, certified or bank check or personal check, in each case payable to the order of the Company; provided, however,
that the Company shall not be required to deliver certificates for shares of Common Stock with respect to which an Option is exercised
until the Company has confirmed the receipt of good and available funds in payment of the purchase price thereof. Payments in the
form of Common Stock shall be valued at the Fair Market Value on the date prior to the date of exercise. Such payments shall be
made by delivery of stock certificates in negotiable form that are effective to transfer good and valid title thereto to the Company,
free of any liens or encumbrances. A Holder shall have none of the rights of a Shareholder with respect to the shares subject to
the Option until such shares shall be transferred to the Holder upon the exercise of the Option.

 

(e)           Transferability.
Except as may be set forth in the Agreement, no Stock Option shall be transferable by the Holder other than by will or by the laws
of descent and distribution, and all Stock Options shall be exercisable, during the Holder’s lifetime, only by the Holder
(or, to the extent of legal incapacity or incompetency, the Holder’s guardian or legal representative).

 

(f)           Termination
by Reason of Death. If a Holder’s employment by the Company or a Subsidiary terminates by reason of death, any Stock Option
held by such Holder, unless otherwise determined by the Committee at the time of grant and set forth in the Agreement, shall thereupon
automatically terminate, except that the portion of such Stock Option that has vested on the date of death may thereafter be exercised
by the legal representative of the estate or by the legatee of the Holder under the will of the Holder, for a period of one year
(or such other greater or lesser period as the Committee may specify at grant) from the date of such death or until the expiration
of the stated term of such Stock Option, whichever period is the shorter.

 

(g)           Termination
by Reason of Disability. If a Holder’s employment by the Company or any Subsidiary terminates by reason of Disability, any
Stock Option held by such Holder, unless otherwise determined by the Committee at the time of grant and set forth in the Agreement,
shall there upon automatically terminate, except that the portion of such Stock Option that has vested on the date of termination
may thereafter be exercised by the Holder for a period of one year (or such other greater or lesser period as the Committee may
specify at the time of grant) from the date of such termination of employment or until the expiration of the stated term of such
Stock Option, whichever period is the shorter.

 

(h)           Other
Termination. Subject to the provisions of Section 13, below, and unless otherwise determined by the Committee at the time of grant
and set forth in the Agreement, if a Holder is an employee of the Company or a Subsidiary at the time of grant and if such Holder’s
employment by the Company or any Subsidiary terminates for any reason other than death or Disability, the Stock Option shall thereupon
automatically terminate, except that if the Holder’s employment is terminated by the Company or a Subsidiary without cause
or due to normal retirement, then the portion of such Stock Option that has vested on the date of termination of employment may
be exercised for the lesser of three months after termination of employment or the balance of such Stock Option’s term.

 

(i)            Buyout
and Settlement Provisions. The Committee may at any time, subject to Board authorization, if indicated, offer to repurchase a Stock
Option previously granted, based upon such terms and conditions as the Committee shall establish and communicate to the Holder
at the time that such offer is made.

 

		7.	Stock Appreciation Rights.

 

7.1           Grant
and Exercise. The Committee, subject to Board authorization, if indicated, may grant Stock Appreciation Rights to participants
who have been, or are being granted, Stock Options under the Plan as a means of allowing such participants to exercise their Stock
Options without the need to pay the exercise price in cash. A Stock Appreciation Right may be granted either at or after the time
of the grant of such Stock Option.

 

7.2           Terms
and Conditions. Stock Appreciation Rights shall be subject to the following terms and conditions:

 

(a)           Exercisability.
Stock Appreciation Rights shall be exercisable as shall be determined by the Committee and set forth in the Agreement.

 

(b)           Termination.
A Stock Appreciation Right shall terminate and shall no longer be exercisable upon the termination or exercise of the related Stock
Option.

 

    	-4-

    	 

    

 

(c)           Method
of Exercise. Stock Appreciation Rights shall be exercisable upon such terms and conditions as shall be determined by the Committee
and set forth in the Agreement and by surrendering the applicable portion of the related Stock Option. Upon such exercise and surrender,
the Holder shall be entitled to receive a number of shares of Common Stock equal to the SAR Value divided by the Fair Market Value
on the date the Stock Appreciation Right is exercised.

 

(d)           Shares
Affected Upon Plan. The granting of a Stock Appreciation Right shall not affect the number of shares of Common Stock available
for Awards under the Plan. The number of shares available for Awards under the Plan will, however, may be reduced by the number
of shares of Common Stock acquirable upon exercise of the Stock Option to which such Stock Appreciation Right relates.

 

		8.	Restricted Stock.

 

8.1           Grant.
Shares of Restricted Stock may be awarded either alone or in addition to other Awards granted under the Plan. The Committee, subject
to Board authorization, if indicated, shall determine the eligible persons to whom, and the time or times at which, grants of Restricted
Stock will be awarded, the number of shares to be awarded, the price (if any) to be paid by the Holder, the time or times within
which such Awards may be subject to forfeiture (“Restriction Period”), the vesting schedule and rights to acceleration
thereof, and all other terms and conditions of the Awards.

 

8.2           Terms
and Conditions. Each Restricted Stock Award shall be subject to the following terms and conditions:

 

(a)           Certificates.
Restricted Stock, when issued, will be represented by a stock certificate or certificates registered in the name of the Holder
to whom such Restricted Stock shall have been awarded. During the Restriction Period, certificates representing the Restricted
Stock and any securities constituting Retained Distributions (as defined below) shall bear a legend to the effect that ownership
of the Restricted Stock (and such Retained Distributions), and the enjoyment of all rights appurtenant thereto, are subject to
the restrictions, terms and conditions provided in the Plan and the Agreement. Such certificates shall be deposited by the Holder
with the Company, together with stock powers or other instruments of assignment, each endorsed in blank, which will permit transfer
to the Company of all or any portion of the Restricted Stock and any securities constituting Retained Distributions that shall
be forfeited or that shall not become vested in accordance with the Plan and the Agreement.

 

(b)           Rights
of Holder. Restricted Stock shall constitute issued and outstanding shares of Common Stock for all corporate purposes. The Holder
will have the right to vote such Restricted Stock, to receive and retain all regular cash dividends and other cash equivalent distributions
as the Board may in its sole discretion designate, pay or distribute on such Restricted Stock and to exercise all other rights,
powers and privileges of a holder of Common Stock with respect to such Restricted Stock, with the exceptions that (i) the Holder
will not be entitled to delivery of the stock certificate or certificates representing such Restricted Stock until the Restriction
Period shall have expired and unless all other vesting requirements with respect thereto shall have been fulfilled; (ii) the Company
will retain custody of the stock certificate or certificates representing the Restricted Stock during the Restriction Period; (iii)
other than regular cash dividends and other cash equivalent distributions as the Board may in its sole discretion designate, pay
or distribute, the Company will retain custody of all distributions (“Retained Distributions”) made or declared with
respect to the Restricted Stock (and such Retained Distributions will be subject to the same restrictions, terms and conditions
as are applicable to the Restricted Stock) until such time, if ever, as the Restricted Stock with respect to which such Retained
Distributions shall have been made, paid or declared shall have become vested and with respect to which the Restriction Period
shall have expired; (iv) a breach of any of the restrictions, terms or conditions contained in this Plan or the Agreement or otherwise
established by the Committee with respect to any Restricted Stock or Retained Distributions will cause a forfeiture of such Restricted
Stock and any Retained Distributions with respect thereto.

 

(c)           Vesting;
Forfeiture. Upon the expiration of the Restriction Period with respect to each Award of Restricted Stock and the satisfaction of
any other applicable restrictions, terms and conditions (i) all or part of such Restricted Stock shall become vested in accordance
with the terms of the Agreement, subject to Section 10, below, and (ii) any Retained Distributions with respect to such Restricted
Stock shall become vested to the extent that the Restricted Stock related thereto shall have become vested, subject to Section
10, below. Any such Restricted Stock and Retained Distributions that do not vest shall be forfeited to the Company and the Holder
shall not thereafter have any rights with respect to such Restricted Stock and Retained Distributions that shall have been so forfeited.

 

		9.	Other Stock-Based Awards.

 

Other Stock-Based Awards may be awarded,
subject to limitations under applicable law, that are denominated or payable in, valued in whole or in part by reference to, or
otherwise based on, or related to, shares of Common Stock, as deemed by the Committee to be consistent with the purposes of the
Plan, including, without limitation, purchase rights, shares of Common Stock awarded which are not subject to any restrictions
or conditions, or other rights convertible into shares of Common Stock and Awards valued by reference to the value of securities
of or the performance of specified Subsidiaries. Other Stock-Based Awards may be awarded either alone or in addition to or in tandem
with any other Awards under this Plan or any other plan of the Company. Each other Stock-Based Award shall be subject to such terms
and conditions as may be determined by the Committee.

 

    	-5-

    	 

    

 

		10.	Accelerated Vesting and Exercisability.

 

10.1         Non-Approved
Transactions. If any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes
the “beneficial owner” (as referred in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
the Company representing 30% or more of the combined voting power of the Company’s then outstanding securities in one or
more transactions, and the Board does not authorize or otherwise approve such acquisition, then the vesting periods of any and
all Stock Options and other Awards granted and outstanding under the Plan shall be accelerated and all such Stock Options and Awards
will immediately and entirely vest, and the respective holders thereof will have the immediate right to purchase and/or receive
any and all Common Stock subject to such Stock Options and Awards on the terms set forth in this Plan and the respective agreements
respecting such Stock Options and Awards.

 

10.2         Approved
Transactions. The Committee may, subject to Board authorization, if indicated, in the event of an acquisition of substantially
all of the Company’s assets or at least 50% of the combined voting power of the Company’s then outstanding securities
in one or more transactions (including by way of merger or reorganization) which has been approved by the Company’s Board
of Directors, (i) accelerate the vesting of any and all Stock Options and other Awards granted and outstanding under the Plan,
and (ii) require a Holder of any Award granted under this Plan to relinquish such Award to the Company upon the tender by the Company
to Holder of cash in an amount equal to the Repurchase Value of such Award.

 

		11.	Amendment and Termination.

 

The Board may at any time, and from time
to time, amend alter, suspend or discontinue any of the provisions of the Plan, but no amendment, alteration, suspension or discontinuance
shall be made that would impair the rights of a Holder under any Agreement theretofore entered into hereunder, without the Holder’s
consent.

 

		12.	Term of Plan.

 

12.1         Effective
Date. The Plan shall become effective at such time as the Plan is approved and adopted by the Company’s Board of Directors
(the “Effective Date”).

 

12.2         Termination
Date. Unless otherwise terminated by the Board, this Plan shall continue to remain effective until the earlier of ten (10) years
from the Effective Date or such time as no further Awards may be granted and all Awards granted under the Plan are no longer outstanding.

 

		13.	General Provisions.

 

13.1         Written
Agreements. Each Award granted under the Plan shall be confirmed by, and shall be subject to the terms, of the Agreement executed
by the Company and the Holder. The Committee may terminate any Award made under the Plan if the Agreement relating thereto is not
executed and returned to the Company within 10 days after the Agreement has been delivered to the Holder for his or her execution.

 

13.2         Unfunded
Status of Plan. The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation. With
respect to any payments not yet made to a Holder by the Company, nothing contained herein shall give any such Holder any rights
that are greater than those of a general creditor of the Company.

 

13.3         Employees.

 

(a)           Engaging in Competition with the Company; Disclosure of Confidential Information. If a
Holder’s employment with the Company or a Subsidiary is terminated for any reason whatsoever, and within three months
after the date thereof such Holder either (i) accepts employment with any competitor of, or otherwise engages in competition
with, the Company or (ii) discloses to anyone outside the Company or uses any confidential information or material of the
Company in violation of the Company’s policies or any agreement between the Holder and the Company, the Committee, in
its sole discretion, may require such Holder to return to the Company the economic value of any Award that was realized or
obtained by such Holder at any time during the period beginning on that date that is six months prior to the date such
Holder’s employment with the Company is terminated.

 

(b)           Termination
for Cause. If a Holder’s employment with the Company or a Subsidiary is terminated for cause, subsequent to the grant of
any Award under this Plan to such employee, the Committee, in its sole discretion, may require such Holder to return to the Company
the economic value of any Award that was realized or obtained by such Holder at any time following the grant date of such Award.

 

    	-6-

    	 

    

 

(c)           No
Right of Employment. Nothing contained in the Plan or in any Award hereunder shall be deemed to confer upon any Holder who is an
employee of the Company or any Subsidiary any right to continued employment with the Company or any Subsidiary, nor shall it interfere
in any way with the right of the Company or any Subsidiary to terminate the employment of any Holder who is an employee at any
time.

 

13.4         Investment
Representations; Company Policy. The Committee may require each person acquiring shares of Common Stock pursuant to a Stock Option
or other Award under the Plan to represent to and agree with the Company in writing that the Holder is acquiring the shares for
investment without a view to distribution thereof. Each person acquiring shares of Common Stock pursuant to a Stock Option or other
Award under the Plan shall be required to abide by all policies of the Company in effect at the time of such acquisition and thereafter
with respect to the ownership and trading of the Company’s securities.

 

13.5         Additional
Incentive Arrangements. Nothing contained in the Plan shall prevent the Board from adopting such other or additional incentive
arrangements as it may deem desirable, including, but not limited to, the granting of Stock Options and the Awarding of Common
Stock and cash otherwise than under the Plan; and such arrangements may be either generally applicable or applicable only in specific
cases.

 

13.6         Withholding
Taxes. Not later than the date as of which an amount must first be included in the gross income of the Holder for Federal income
tax purposes with respect to any option or other Award under the Plan, the Holder shall pay to the Company, or make arrangements
satisfactory to the Committee regarding the payment of, any Federal, state and local taxes of any kind required by law to be withheld
or paid with respect to such amount. If permitted by the Committee, tax withholding or payment obligations may be settled with
Common Stock, including Common Stock that is part of the Award that gives rise to the withholding requirement. The obligations
of the Company under the Plan shall be conditioned upon such payment or arrangements and the Company or the Holder’s employer
(if not the Company) shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind
otherwise due to the Holder from the Company or any Subsidiary.

 

13.7         Governing
Law. The Plan and all Awards made and actions taken thereunder shall be governed by and construed in accordance with the laws of
the State of Nevada.

 

13.8         Other
Benefit Plans. Any Award granted under the Plan shall not be deemed compensation for purposes of computing benefits under any retirement
plan of the Company or any Subsidiary and shall not affect any benefits under any other benefit plan now or subsequently in effect
under which the availability or amount of benefits is related to the level of compensation (unless required by specific reference
in any such other plan to Awards under this Plan).

 

13.9         Non-Transferability.
Except as otherwise expressly provided in the Plan or the Agreement, no right or benefit under the Plan may be alienated, sold,
assigned, hypothecated, pledged, exchanged, transferred, encumbered or charged, and any attempt to alienate, sell, assign, hypothecate,
pledge, exchange, transfer, encumber or charge the same shall be void.

 

13.10       Applicable
Laws. The obligations of the Company with respect to all Stock Options and Awards under the Plan shall be subject to (i) all applicable
laws, rules and regulations and such approvals by any governmental agencies as may be required, including, without limitation,
the Securities Act of 1933, as amended, and (ii) the rules and regulations of any securities exchange on which the Common Stock
may then be listed.

 

13.11       Conflicts.  If
any of the terms or provisions of any Agreement conflicts with any terms or provisions of the Plan, then such terms or provisions
shall be deemed inoperative to the extent they so conflict with the requirements of the Plan. Additionally, if any Agreement does
not contain any provision required to be included therein under the Plan, such provision shall be deemed to be incorporated therein
with the same force and effect as if such provision had been set out at length therein.

 

    	-7-

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