Document:

EX-10.35

 Exhibit 10.35 

Execution Version 

SEPARATION AGREEMENT 

This Separation Agreement (this “Agreement”) is entered into by and between, and shall inure to the benefit of and be binding
upon, the following parties: 
 STEPHEN M. JOHNSON, hereinafter referred to as “Employee”; and 

MCDERMOTT, INC., a Delaware corporation, hereinafter referred to as the “Company.” 

W I T N E S S E T H: 

WHEREAS, Employee is currently an employee of the Company; 

WHEREAS, pursuant to a resignation letter in the form attached hereto as Exhibit A, Employee has tendered to McDermott International, Inc., a
Panamanian corporation of which the Company is a wholly owned subsidiary (“MII”), Employee’s resignation from all positions held as an officer, employee, member of the board of directors or board of managers (and member of any
and all committees thereof), of MII and its subsidiaries and joint venture entities, and from any and all positions or capacities with respect to any employee benefit plan sponsored or maintained by any such entity, effective as of the open of
business on December 16, 2013; 
 WHEREAS, Employee’s resignation from each such position shall be effective as
of December 16, 2013, except that: (i) Employee shall remain an employee of the Company through December 31, 2013 the (“Resignation Date”), whereupon his resignation from employment with the Company shall take
effect; and (ii) Employee shall continue as a director and Chairman of the Board of MII until the close of business on the Resignation Date, whereupon his resignation from the Board of Directors of MII shall become effective; and 

WHEREAS, Employee and the Company mutually desire to establish and agree on the terms and conditions of Employee’s separation from
service; 
 NOW, THEREFORE, in consideration of the premises and the mutual agreements, covenants and obligations set forth herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, Employee and the Company hereby agree as follows: 

Section 1. Termination Date and Type. For purposes of interpreting and applying the provisions of compensation arrangements and
employee benefit plans of MII or any of its subsidiaries (including the Company) applicable to Employee and subject to Section 2 hereof, (a) Employee’s date of termination of employment shall be the Resignation Date,
(b) Employee’s termination of employment is voluntary by Employee and not by the Company, and (c) subject to complying with the requirements of this Agreement, Employee shall be entitled to the compensation and benefits provided in
this Agreement. 
 Section 2. Severance Benefits and Payments. Subject to the execution of this Agreement by Employee and the
lapse of the seven (7) day revocation period referenced in 

 
Section 7 hereof (the “Revocation Period”) without revocation of the Agreement or any part hereof by Employee, Employee shall be entitled to receive the following payments
and benefits, to which Employee would not otherwise be entitled, subject to the terms and conditions set forth in this Agreement: 

(a) each currently outstanding award of MII stock options (Stock Options”) granted to Employee under the 2009 McDermott
International, Inc. Long Term Incentive Plan (the “MII LTIP”) which would, absent Employee’s termination of employment, become vested and exercisable after the Resignation Date and through March 15, 2016 will be vested and will
become exercisable in accordance with the MII LTIP and the applicable award agreement as if Employee’s employment had continued through March 15, 2016, and any such Stock Options, whether now exercisable or upon becoming exercisable, shall
be exercisable until the stated maximum expiration date in the applicable grant agreement, notwithstanding any provision in such grant agreement providing for earlier termination in the event of a termination of employment; 

(b) each currently outstanding award of restricted stock units (“RSUs”) granted to Employee under the MII LTIP which
would, absent Employee’s termination of employment, remain outstanding and, to the extent applicable, continue to vest after the Resignation Date shall remain in full force and effect and, to the extent applicable, continue to vest and shall be
settled in accordance with the terms of the MII LTIP and the applicable grant agreement as if Employee’s employment had continued through March 15, 2017; provided, however, that with respect to each outstanding award of RSUs that
would continue to vest as if Employee’s employment had continued, such continued vesting shall be subject to Employee performing consulting services in 2014 in accordance with Section 4(d) of this Agreement, and (if that condition is met)
such RSUs shall vest in full and be settled on the earlier to occur of March 15, 2015 or the next anniversary of the Grant Date (as defined in the applicable award agreement) following the completion of the Consulting Period (as defined in
Section 4(d)); 
 (c) each currently outstanding award of performance shares granted to Employee under the MII LTIP
which would, absent Employee’s termination of employment, become vested after the Resignation Date and through March 15, 2017 shall remain in full force and effect and, to the extent applicable, continue to vest and shall be settled in
accordance with the terms of the MII LTIP and the applicable grant agreement as if Employee’s employment had continued through March 15, 2017; and 

(d) Employee’s unvested benefits under the McDermott International, Inc. Director and Executive Deferred Compensation Plan
(the “EDCP”) shall be fully vested as of the Resignation Date and such amounts shall be paid in accordance with the terms of that plan. 
 All
payments made pursuant to this Section 2 shall be subject to appropriate tax withholding and are subject to all the terms and conditions of this Agreement. 

  
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 Section 3. Release of Claims.  

(a) General Release by Employee. In consideration of the foregoing (including the payments and benefits under
Section 2 hereof, which the Company is not required to make or provide under any preexisting agreement, plan or policy), which Employee hereby expressly acknowledges as good and sufficient consideration for the releases provided below, Employee
hereby unconditionally and irrevocably releases, acquits and forever discharges, to the fullest extent permitted by applicable law, (i) the Company and all of its predecessors, successors and assigns, (ii) all of the Company’s past,
present and future affiliates, parent corporations (including MII), subsidiaries, divisions and joint venture entities and all of their respective predecessors, successors and assigns and (iii) all of the past, present and future officers,
directors, managers, shareholders, investors, employee benefit plan administrators, employees, agents, attorneys and other representatives of each of the entities described in the immediately preceding clauses (i) and (ii), individually and in
their respective representative capacities (the persons or entities referred to in the immediately preceding clauses (i), (ii) and (iii) being, individually, a “Releasee” and, collectively, the
“Releasees”), from any and every action, cause of action, complaint, claim, demand, administrative charge, legal right, compensation, obligation, damages (including consequential, exemplary and punitive damages), liability, cost or
expense (including attorney’s fees) that Employee has, may have or may be entitled to from or against any of the Releasees, whether legal, equitable or administrative, in any forum or jurisdiction, whether known or unknown, foreseen or
unforeseen, matured or unmatured, accrued or not accrued, which arises directly or indirectly out of, or is based on or related in any way to Employee’s employment with or termination of employment from the Company or Employee’s service
for or other affiliation with MII or any of its subsidiaries (including the Company) or joint venture entities, including any such matter arising from the negligence, gross negligence or reckless, willful or wanton misconduct of any of the
Releasees (together, the “Released Claims”); provided, however, that this Release does not apply to, and the Released Claims do not include: (i) any claims arising solely and specifically under the U.S. Age
Discrimination in Employment Act of 1967 after the date this Agreement is executed by Employee; (ii) any claim for indemnification (including under MII’s or the Company’s organizational documents or insurance policies) arising in
connection with an action instituted by a third party against MII or the Company or any of their affiliates or Employee, in his capacity as an officer, director, manager, employee, agent or other representative of MII or the Company or any of their
affiliates; (iii) any claims for vested benefits under the Company’s 401(k) plan or vested benefits under the EDCP; (iv) any claims relating to Employee’s eligibility to continue participating in health coverage currently
available to Employee in accordance with the U.S. Consolidated Omnibus Reconciliation Act, subject to the terms, conditions and restrictions of that Act; (v) any claim arising from any breach or failure to perform any provision of this
Agreement; or (vi) any claim for worker’s compensation benefits or any other claim that cannot be waived by a general release. 

(b) Release to be Full and Complete; Waiver of Claims, Rights and Benefits. The parties intend this Release to cover any
and all such Released Claims, whether they are contract claims, equitable claims, fraud claims, tort claims, discrimination claims, 

  
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harassment claims, whistleblower or retaliation claims, personal injury claims, constructive or wrongful discharge claims, emotional distress claims, pain and suffering claims, public policy
claims, claims for debts, claims for expense reimbursement, wage claims, claims with respect to any other form of compensation, claims for attorneys’ fees, other claims or any combination of the foregoing, and whether they may arise under any
employment contract (express or implied), policies, procedures, practices or by any acts or omissions of any of the Releasees or whether they may arise under any state, local or federal law, statute, ordinance, rule or regulation, including all
Texas employment discrimination laws, the Texas Commission on Human Rights Act, the Texas Labor Code, all U.S. federal discrimination laws, the U.S. Age Discrimination in Employment Act of 1967, the U.S. Employee Retirement Income Security Act of
1974, Title VII of the U.S. Civil Rights Act of 1964, the U.S. Civil Rights Act of 1991, the U.S. Rehabilitation Act of 1973, the U.S. Americans with Disabilities Act of 1990, the U.S. Equal Pay Act, the U.S. National Labor Relations Act, the
U.S. Fair Labor Standards Act, the U.S. Older Workers Benefit Protection Act, the U.S. Worker Adjustment and Retraining Notification Act, the U.S. Family and Medical Leave Act, the U.S. Sarbanes-Oxley Act of 2002 or common law, without exception. As
such, it is expressly acknowledged and agreed that this Release is a general release, representing a full and complete disposition and satisfaction of all of the Company’s and any Releasee’s real or alleged legal obligations to Employee,
with the only exceptions being as expressly stated in the proviso to Section 3(a) hereof. Employee understands and agrees, in compliance with any law, statute, ordinance, rule or regulation which requires a specific release of unknown claims or
benefits, that this Agreement includes a release of unknown claims, and Employee hereby expressly waives and relinquishes any and all Released Claims and any associated rights or benefits that Employee may have, including any that are unknown to
Employee at the time of the execution this Agreement. 
 (c) Certain Representations of Employee. Employee represents
and warrants that: (i) Employee is the sole and lawful owner of all rights, titles and interests in and to all Released Claims; and (ii) Employee has the fully legal right, power, authority and capacity to execute and deliver this
Agreement. 
 (d) Covenant Not to Sue. Employee expressly agrees that neither Employee nor any person acting on
Employee’s behalf will file or bring or permit to be filed or brought any lawsuit or other action before any court, agency or other governmental authority for legal or equitable relief against any of the Releasees involving any of the Released
Claims. In the event that such an action is filed against any of the Releasees, Employee agrees that such Releasees are entitled to legal and equitable remedies against Employee, including an award of attorney’s fees. However, it is expressly
understood and agreed that the foregoing sentence shall not apply to any charge filed by Employee with the Equal Employment Opportunity Commission or to any action filed by Employee that is narrowly limited to seeking a determination as to the
validity of this Agreement and enforcement thereof. Should Employee file a charge with the Equal Employment Opportunity Commission, or should any governmental entity, agency or commission file a charge, action, complaint or lawsuit against any of
the Releasees based on any Released Claim, Employee agrees not to seek or accept any resulting relief whatsoever. 

  
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 Section 4. Return of Materials, Nondisparagement and Cooperation Undertakings.

 (a) Return of Materials. On or promptly after the Resignation Date, Employee shall return to MII or the Company,
with no request being required of MII or the Company: (i) any and all documents, records, files, reports, memoranda, books, papers, plans, letters and any other data in Employee’s possession regardless of the medium maintained, held or
stored (whether documentary, computer or other electronic storage or other) that relate in any way to the business or operations of MII or the Company or any of their past or present affiliates, subsidiaries, divisions or joint ventures (such
entities being, individually, a “Company Entity” and, collectively, the “Company Entities”) (and Employee shall not retain, recreate or deliver to anyone else such information); and (ii) any credit cards, keys,
access cards, calling cards, computer equipment and software, telephone, facsimile or other equipment or property of any of the Company Entities. 

(b) Nondisparagement. Employee shall refrain from making, directly or indirectly, in any public or private communication
(whether oral, written or electronic), any criticisms or negative or disparaging comments or other statements about the Company or any of the other Releasees, or about any aspect of the respective businesses, operations, financial results or
prospects of any of the Company Entities, including comments relating to Employee’s termination of employment. Notwithstanding the foregoing, it is understood and agreed that nothing in this Section 4(b) or in Section 5 hereof is
intended to prevent Employee from: (i) testifying truthfully in any legal proceeding brought by any governmental authority or other third party or to interfere with any obligation Employee may have to cooperate with or provide information to
any government agency or commission, subject to compliance with the provisions of Section 5(c) hereof, if applicable; (ii) advising Employee’s spouse of the terms and conditions of this Agreement; or (iii) consulting with
Employee’s own legal counsel, as contemplated by Section 7 of this Agreement. 
 (c)
Cooperation. Employee agrees to be reasonably available to the Company Entities or their representatives (including their attorneys) to provide information and assistance as reasonably requested by MII or the Company. Such information and
assistance may include testifying (and preparing to testify) as a witness in any proceeding or otherwise providing information or reasonable assistance to the Company Entities in connection with any investigation, claim or suit, and cooperating with
the Company Entities regarding any litigation, government investigation, regulatory matter, claim or other disputed item involving any of the Company Entities that relate to matters within the knowledge or responsibility of Employee during
Employee’s employment. Specifically, Employee agrees (i) to meet with the Company Entities’ representatives, their counsel or other designees at reasonable times and places with respect to any matter within the scope of the foregoing
provisions of this Section 4(c); (ii) to provide truthful testimony regarding any such matter to any applicable court, agency or other adjudicatory body; (iii) to provide the Company Entities with immediate notice of contact or
subpoena by any non-governmental adverse party (known to Employee to be adverse to any of the Company Entities or their interests), and (iv) to not voluntarily assist any such 

  
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non-governmental adverse party or such non-governmental adverse party’s representatives. Such cooperation required by Employee shall not unreasonably interfere with Employee’s other
business endeavors. 
 (d) Consulting Services. During the six-month period from January 1, 2014 through
June 30, 2014 (the “Consulting Period”), Employee shall provide such consulting services to the Company Entities as any of the Company Entities may request in accordance with the terms and conditions set forth in Exhibit B
hereto, which is incorporated by reference in and shall be deemed to form an integral part of this Agreement. The Company will offer Employee at least two consulting days in January 2014 on dates to be mutually agreed by Employee and the Company.
The Consulting Period may be extended by written agreement between the Company and Employee. It is understood and agreed by the parties hereto that in no event will the level of consulting services performed by Employee hereunder exceed 20% of the
average level of services (measured by hours) he performed over the 36-month period ending on the Resignation Date. 
 (e)
Enforcement. The covenants set forth in the foregoing provisions of this Section 4 may be enforced pursuant to the provisions of Section 5(f) hereof. 

Section 5. Confidentiality and Non-Competition Agreement. 

(a) Definition of Trade Secrets and Confidential Business Information. Employee acknowledges and agrees that any and all
non-public information regarding the Company Entities and their customers and suppliers (including any and all information relating to the Company Entities’ respective business plans or practices, products, services, contracts with customers,
backlog, bids outstanding, target projects, financial or operational performance, finances, financial accounting policies, practices or systems, internal controls or internal control systems, financial projections or budgets, board of directors or
board committee proceedings, investor relations practices, capital expenditures, equipment, pricing strategies, marketing programs or plans, executive management or other personnel, human resources plans, policies, practices, records or systems,
information technology systems or other business systems, project management, business strategy, profits or overhead) is confidential and the unauthorized disclosure of such confidential information could result in irreparable harm to one or more of
the Company Entities. Such confidential information, in whatever form maintained, held or stored (whether documentary, computer or other electronic storage or other), includes each Company Entity’s proprietary interest in its trade secrets,
including its lists of customers and prospective customers, and other information that has recognized value and that is not generally available through other sources (collectively, “Trade Secrets”), and information regarding each
Company Entity’s various services, projects, products, procedures or systems that is treated as confidential by such Company Entity which may not rise to the level of a Trade Secret (collectively, “Confidential Business
Information”). Confidential Business Information does not include information that properly and lawfully has become generally known to the public other than as a result of any act or omission of Employee. Collectively, Trade Secrets and
Confidential Business Information (and including all the non-public information referred to in the first sentence of this Section 5(a) and all information relating to Employee’s separation from service with the Company) are referred to
herein as “Confidential Information.” 

  
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 (b) Importance of Confidential Information. The parties hereby agree that
Employee has been provided with Confidential Information during the period of Employee’s employment. By signing this Agreement, Employee acknowledges delivery to and receipt by Employee of Confidential Information. Employee further acknowledges
that the preservation and protection of the Confidential Information was an essential part of Employee’s employment with the Company and that Employee has had a duty of fidelity and trust to the Company Entities in handling the Confidential
Information. 
 (c) Nondisclosure or Misuse. Employee agrees that Employee will not disclose or take away any of the
Confidential Information, directly or indirectly, or use such information in any way. Without limiting the generality of the foregoing, Employee will not disclose any of the Confidential Information to any securities analysts, shareholders,
prospective investors, customers, competitors or any other third party, including any third party who has or may express an interest in acquiring any of the Company Entities or all or any significant portion of their respective outstanding equity
securities or assets. If Employee is legally required to disclose any Confidential Information, Employee shall, to the extent not prohibited by applicable law or legal process, promptly notify the Company in writing of such requirement so that the
Company or any of the other Company Entities may seek an appropriate protective order or other relief or waive compliance with the nondisclosure provisions of this Section 5 with respect to such Confidential Information. To the extent not
prohibited by applicable law, Employee agrees to cooperate with and not to oppose any effort by the Company or any other Company Entity to resist or narrow such request or to seek a protective order or other appropriate remedy. In any such case,
Employee will: (i) disclose only that portion of the Confidential Information that, according to written advice of Employee’s counsel, is required to be disclosed; (ii) use reasonable best efforts to obtain assurances that such
Confidential Information will be treated confidentially; and (iii) to the extent not prohibited by applicable law, promptly notify the Company in writing of the items of Confidential Information so disclosed. The foregoing obligations are in
addition to any confidentiality obligations Employee may have under any other agreements or arrangements with any of the Company Entities. 

(d) Return of Confidential Information. On or promptly after the Resignation Date, all documents or other tangible items
containing or referring to any of the Confidential Information as may be in Employee’s possession, or over which Employee may have control, regardless of whether prepared by Employee, shall be returned by Employee to the Company in accordance
with the provisions of Section 4(a) hereof. 
 (e) Noncompetition Agreement. Employee acknowledges and agrees
that information, including the Confidential Information, Employee has acquired will enable Employee to irreparably injure the Company if Employee should engage in competition during the period beginning from the date of this Agreement and extending
through June 30, 2014 (the “Non-Compete Period”). Accordingly, as a material and substantial 

  
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part of the agreements set forth herein, and particularly in consideration of the waiver or removal of selling restrictions or forfeiture provisions with respect to, or vesting of, equity-based
awards and the other benefits provided to Employee pursuant to Section 2 hereof, Employee hereby agrees that the following covenants are reasonable and necessary covenants for the protection of the value of the agreements of Employee contained
herein: 
 (i) During the Non-Compete Period, Employee shall not, directly or indirectly, act in any capacity for, be
employed by, provide services or advice to, or contract with any of the entities identified as “Competitive Entities” (or any of their respective subsidiaries or affiliates) in a written memorandum delivered concurrently with this
Agreement from MII to Employee. 
 (ii) During the Non-Compete Period, Employee shall not, on Employee’s own behalf or
on behalf of any other person or entity, solicit, divert or recruit any person who is, during such time frame, an employee of a Company Entity to leave such employment or in any other manner attempt, directly or indirectly, to influence, induce, or
encourage any employee of a Company Entity to leave the employment of that Company Entity. 
 (f) Enforcement of
Covenants. Employee acknowledges that the injury that would be suffered by the Company Entities as a result of a breach or threatened breach of the provisions of Section 4 hereof or this Section 5 would be immediate and irreparable and
that, because of the difficulty of measuring economic loss of any such breach or threatened breach, an award of monetary damages to the Company Entities for any such breach would be an inadequate remedy. Accordingly, in the event that the Company
determines that Employee has breached or attempted to breach or is threatening to breach any provision of Section 4 hereof or this Section 5, in addition to any other remedies at law or in equity that any of the Company Entities may have
available to them, it is agreed that each of the Company Entities shall be entitled, upon application to any court of proper jurisdiction, to temporary or permanent restraining orders or injunctions against Employee prohibiting such breach or
attempted or threatened breach, without the necessity of: (i) proving immediate or irreparable harm; (ii) establishing that monetary damages are inadequate or that the Company Entities do not have an adequate remedy at law; or
(iii) posting any bond with respect thereto. 
 (g) Right of Court or Arbitrator to Reform Restrictions. The
Company and Employee state that it was their intent to enter into a valid and enforceable agreement. Employee and the Company hereby acknowledge the reasonableness of the restrictions set forth in this Section 5, including the reasonableness of
the geographic area, duration as to time and scope of activity restrained. Employee agrees that if an arbitrator or court of competent jurisdiction finds that this Section 5 contains limitations as to geographic area, time or scope of activity
to be restrained that are not reasonable and impose a greater restraint than is necessary to protect the goodwill or other business interest of the Company Entities, the arbitrator or court may: (i) reform the covenants to the extent necessary
to cause the limitations contained in this Section 5 as to geographic area, time or scope of activity to be reasonable and to impose a restraint that is not greater than necessary to protect the goodwill or business interests of the Company
Entities; and (ii) enforce this Section 5 as so reformed. 

  
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 (h) Repayment and Forfeiture. Employee agrees that in the event that
(i) Employee breaches any term of Sections 3 or 4 hereof or this Section 5, or (ii) Employee challenges the validity of all or any part of this Section 5, and all or any part of this Section 5 is found invalid or
unenforceable for any reason whatsoever by a court of competent jurisdiction or an arbitrator in a proceeding between Employee and a Company Entity, in addition to any other remedies at law or in equity the Company may have available to it, the
Company shall not be obligated to make any of the payments and may cease to make such payments or to provide for any of the benefits specified in Section 2 hereof, and shall be entitled to recoup from Employee any and all of the value of the
payments and benefits provided pursuant to Section 2 hereof that have vested or been paid pursuant to that Section. 
 Section 6.
Entire Agreement; Amendment; Third-Party Beneficiaries. Employee and the Company agree and acknowledge that this Agreement (together with the written memorandum referred to in Section 5(e)(i)) contains and comprises the entire agreement
and understanding between the parties with respect to the subject matter hereof, that no other representation, promise, covenant or agreement of any kind whatsoever has been made to cause either party hereto to execute this Agreement, that all
agreements and understandings between the parties with respect to the subject matter hereof are embodied and expressed in this Agreement and that this Agreement supersedes all prior agreements, negotiations, discussions, understandings and
commitments, written or oral, between the parties hereto with respect to such subject matter. The parties also agree that the terms of this Agreement shall not be amended or changed except in writing and signed by Employee and a duly authorized
agent of the Company. The parties to this Agreement further agree that this Agreement shall be binding on and inure to the benefit of Employee and the Company and the Company’s successors and assigns. Except to the extent otherwise provided in
this Agreement with respect to the Company Entities and the Releasees (each such Company Entity and each such Releasee hereby being expressly made a third-party beneficiary of this Agreement), the provisions
of this Agreement shall not confer upon any third party any remedy, claim, liability, reimbursement or other right in excess of those existing without reference to this Agreement. 

Section 7. Timing and Consultation with Counsel. Employee acknowledges that Employee has been given a reasonable period of time,
not less than twenty-one (21) days, within which to consider this Agreement and has been advised to discuss the terms of this Agreement with legal counsel of Employee’s own choosing. Employee acknowledges that this Agreement was offered to
Employee on October 16, 2013, and Employee was advised that if accepted (i) it must be executed on or prior to December 16, 2013, and (ii) the Agreement could be revoked, in writing, for up to seven (7) days following the
date of such acceptance. If Employee revokes this Agreement, Employee’s resignation shall nevertheless remain effective. Employee represents that Employee has relied on Employee’s own knowledge and judgment and on the advice of independent
legal counsel of Employee’s choosing and has consulted with such other independent advisors as Employee and Employee’s counsel deemed appropriate in connection with Employee’s review of this Agreement and Employee’s rights with
respect to Employee’s separation from service from the Company and other Company Entities and with respect to this 

  
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Agreement. Based on Employee’s review, Employee acknowledges that Employee fully and completely understands and accepts all the terms of this Agreement, including the Release in
Section 3 hereof, and their legal effects, and Employee is entering into this Agreement voluntarily and of Employee’s own free will, with full consideration of any and all rights which Employee may currently have. Employee further
acknowledges that Employee is not relying on any representations or statements made by the Company or any other Company Entity, or by any of their respective officers, directors, employees, affiliates, agents, attorneys or other representatives,
regarding this Agreement, except to the extent such representations are expressly set forth in this Agreement. Employee also acknowledges that Employee is not relying upon a legal duty, if one exists, on the part of the Company or any other Company
Entity, or any of their respective officers, directors, employees, subsidiaries, affiliates, agents, attorneys or other representatives, to disclose any information in connection with the execution of this Agreement or its preparation, it being
expressly understood that Employee shall never assert any failure to disclose information on the part of any such person or entity as a ground for challenging this Agreement or any provision hereof. 

Section 8. Applicable Law; Venue. This Agreement shall be interpreted and construed in accordance with the substantive laws of the
State of Texas, without giving effect to any conflicts of laws provisions thereof that would result in the application of the laws of any other jurisdiction. THE EXCLUSIVE VENUE FOR THE RESOLUTION OF ANY DISPUTE RELATING TO THIS AGREEMENT OR
EMPLOYEE’S EMPLOYMENT (EXCEPT FOR ANY DISPUTE THAT MAY BE SUBJECTED TO ARBITRATION BY MUTUAL AGREEMENT OF THE PARTIES HERETO AFTER THE DATE HEREOF) SHALL BE IN THE STATE AND FEDERAL COURTS LOCATED IN HARRIS COUNTY, TEXAS AND THE PARTIES HEREBY
EXPRESSLY CONSENT TO THE JURISDICTION OF THOSE COURTS. 
 Section 9. Section 409A; Other Tax Matters. This Agreement is
intended to provide payments that are exempt from or compliant with the provisions of Section 409A of the U.S. Internal Revenue Code of 1986 (the “Code”) and related regulations and Treasury pronouncements (“Section
409A”), and the Agreement shall be interpreted accordingly. Notwithstanding any provisions of an RSU to the contrary, no RSU shall be settled by reason of a change in control of McDermott International, Inc. or disability of Employee unless
such event is a change in control or disability, as applicable, within the meaning of Section 409A. Notwithstanding anything herein to the contrary, if on the date of Employee’s separation from service Employee is a “specified
employee,” as defined in Section 409A, then all or a portion of any severance payments, or benefits under this Agreement that would be subject to the additional tax provided by Section 409A(a)(1)(B) of the Code if not delayed as
required by Section 409A(a)(2)(B)(i) of the Code shall be delayed until the first day of the seventh month following Employee’s separation from service date (or, if earlier, Employee’s date of death) and shall be paid as a lump sum
(without interest) on such date. For purposes of this Agreement, a termination of Employee’s employment must be a “separation from service” for purposes of Section 409A. Employee acknowledges and agrees that Employee has obtained
no advice from the Company or any of the other Company Entities, or any of their respective officers, directors, employees, subsidiaries, affiliates, agents, attorneys or other representatives, and that none of such persons or entities have made any
representation regarding the tax consequences, if any, of Employee’s receipt of the payments, benefits and other consideration provided for in this 

  
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Agreement. Employee further acknowledges and agrees that Employee is personally responsible for the payment of all federal, state and local taxes that are due, or may be due, for any payments and
other consideration received by Employee under this Agreement. Employee agrees to indemnify the Company and hold the Company harmless for any and all taxes, penalties or other assessments that Employee is, or may become, obligated to pay on account
of any payments made and other consideration provided to Employee under this Agreement. 
 Section 10. Miscellaneous Provisions.
 
 (a) Waivers. Any term or provision of this Agreement may be waived, or the time for its performance may be
extended, by the party hereto entitled to the benefit thereof. Any such waiver shall be validly and sufficiently given for the purposes of this Agreement if, as to either party hereto, it is in writing signed by such party or an authorized
representative thereof. Failure on the part of the Company or Employee at any time to insist on strict compliance by the other party with any provisions of this Agreement shall not constitute a waiver of the obligations of either party hereto in
respect thereof, or of either such party’s right hereunder to require strict compliance therewith in the future. No waiver of any breach of this Agreement shall be deemed to constitute a waiver of any other or subsequent breach. 

(b) Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable under applicable
law, that provision shall be severable and this Agreement shall be construed and enforced as if that illegal, invalid or unenforceable provision never comprised a part hereof, and the remaining provisions hereof shall remain in full force and effect
and shall not be affected by the illegal, invalid or unenforceable provision, and there shall be added automatically as part of this Agreement a provision as similar in its terms to such illegal, invalid or unenforceable provision as may be possible
and be legal, valid and enforceable. 
 (c) Further Assurances. Employee shall, on request by the Company from time to
time after the date hereof, execute, acknowledge and deliver to the Company such other documents and instruments as the Company may require to give effect to the provisions of this Agreement, including a confirmatory release of the Released Claims
as of the Resignation Date. 
 (d) Section Headings. Titles and headings to Sections and subsections hereof are for
the purpose of reference only and shall in no way limit, define or otherwise affect the provisions hereof. 
 (e)
Construction. In this Agreement, unless the context clearly indicates otherwise: (i) words used in the singular include the plural and words used in the plural include the singular; (ii) reference to any gender includes the other
gender and the neuter; (iii) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation”; (iv) the words “shall” and “will”
are used interchangeably and have the same meaning; (v) the word “or” shall have the inclusive meaning represented by the phrase “and/or”; (vi) the words “this Agreement,” “herein,”
“hereunder,” “hereof,” “hereto” and words of similar import shall be deemed references 

  
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to this Agreement as a whole and not to any particular Section or other provision of this Agreement; (vii) reference to any law (including statutes and ordinances) means such law (including
all rules and regulations promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability; (viii) relative to the determination of any period of
time, “from” means “from and including” and “through” means “through and including”; and (ix) all references to dollar amounts herein shall be in respect of lawful currency of the United States. The
language this Agreement uses shall be deemed to be the language that the parties hereto have chosen to express their mutual intent, and no rule of strict construction shall be applied against either party hereto. 

(f) Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which when so
executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. 

[Signature page follows] 

  
 - 12 - 

 I HAVE READ THE FOREGOING SEPARATION AGREEMENT, I FULLY UNDERSTAND ITS TERMS AND THAT I MAY BE WAIVING
SIGNIFICANT LEGAL RIGHTS BY EXECUTING IT, AND I HAVE VOLUNTARILY EXECUTED IT ON THE DATE WRITTEN BELOW, SIGNIFYING THEREBY MY ASSENT TO, AND WILLINGNESS TO BE BOUND BY, ITS TERMS: 

 

							
	Date: December 16, 2013	 		 		 	 /s/ Stephen M. Johnson

		 		 		 	Stephen M. Johnson

 Before me, a Notary Public in and for Harris County, Texas, personally appeared the
above-named Mr. Stephen M. Johnson, who acknowledged that he executed the foregoing instrument for the purposes and consideration therein expressed, and acknowledged the same to be his free act and deed. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal, in the County of Harris and State of Texas, this 16th day of December,
2013. 
  

			
	 /s/ Dwight H. Williams

	NOTARY PUBLIC
	
	McDERMOTT, INC.
		
	By:	 	 /s/ Liane K. Hinrichs

		 	Liane K. Hinrichs
		 	Senior Vice President, General Counsel and Corporate Secretary

 Before me, a Notary Public in and for Harris County, Texas, personally appeared the above-named officer
of McDermott, Inc., who acknowledged that she executed the foregoing instrument for and on behalf of McDermott, Inc., a Delaware corporation, and for the purposes and consideration therein expressed, and acknowledged the same to be her free act and
deed and the free act and deed of said corporation. 
 IN WITNESS WHEREOF, I have hereunto set my hand and official seal, in the County of
Harris and State of Texas, this 16th day of December, 2013. 
  

	
	 /s/ Robert E. Stumpf

	NOTARY PUBLIC

  
 - 13 - 

 EXHIBIT A 

Notice of Resignation 
 To the Board of
Directors of McDermott International, Inc. 
 Effective as of the open of business on December 16, 2013, the undersigned, Stephen M. Johnson,
resigns from all positions held as an officer of McDermott International, Inc., a Panamanian corporation (“McDermott”), and from all positions held as an officer, employee, member of the board of directors or board of managers (and member
of any and all committees thereof) of any of McDermott’s subsidiaries (whether corporations, limited liability companies, limited partnerships or other forms of entity) and joint venture entities, and from any and all positions or capacities
with respect to any employee benefit plan sponsored or maintained by any such entity; provided, however, that the effectiveness of this resignation from employment with McDermott, Inc., a Delaware corporation and a wholly owned
subsidiary of McDermott, shall not be effective until the close of business on December 31, 2013. In addition, effective as of the close of business on December 31, 2013, the undersigned resigns from his position as a director and Chairman
of the Board of McDermott. This resignation is not subject to any condition to effectiveness (including, but not limited to, acceptance by the Board of Directors of McDermott) and is irrevocable. 

Dated: December 16, 2013 
  

	
	 /s/ Stephen M. Johnson

	Stephen M. Johnson

 EXHIBIT B 

CONSULTING SERVICES 

TERMS AND CONDITIONS 
  

	1.	Description of Services. As requested by the MII or the Company, Stephen M. Johnson (“Consultant”) shall serve as a special consultant furnishing advice, consultation and related services
including, but not limited to, special assignments as determined by the President and Chief Executive Officer of MII. 

  

	2.	Status. During the Consulting Period, Consultant shall be an independent contractor and shall not be an employee of MII, the Company or any of the other Company Entities. None of the Company Entities shall be
entitled to exercise supervision over the details or methods of performance by Consultant hereunder or to require adherence to specific procedures in performing services hereunder, other than procedures or policies to the extent applicable to all
independent contractors and consultants of the Company Entities on a general basis, including the most recent McDermott International, Inc. Code of Business Conduct. Except as provided herein, Consultant shall not be subject to rules or regulations
applicable to employees of the Company Entities or any established work schedule or routine or other supervision of or direction by any of the Company Entities, as to hours worked or otherwise; provided, however, that all services rendered
hereunder shall be so rendered in a diligent, prudent and competent manner and to the satisfaction of MII and the Company. Consultant shall not have authority to obligate any of the Company Entities to any agreement or to exercise any supervision or
direction over any employees of any of the Company Entities. Since Consultant is not an employee of the Company, Consultant is not hereby entitled to participate in any of the Company’s employee benefit plans, programs or arrangements;
provided, however, the retirement and other payments or benefits that Consultant may be entitled to as a result of previous employment with the Company shall continue uninterrupted in accordance with the terms and conditions of each
respective benefit plan or arrangement. 

  

	3.	Compensation. Consultant’s individual contact shall be the President and Chief Executive Officer of MII or his designee, who shall be responsible for transmitting requests for such advice and consultation
from the Company Entities where necessary to enable Consultant to carry out Consultant’s responsibilities hereunder. During the Consulting Period, the Company agrees to pay Consultant $8,700 per day for each day that he performs consulting
services to the Company Entities as requested by MII or the Company during the Consulting Period (“Consulting Fees”). The Company also agrees to reimburse Consultant for reasonable costs and expenses of airfare and other travel,
meals and lodging actually incurred by Consultant in performance of consulting services hereunder, in accordance with the then-operative and applicable policies of MII and the Company, and reasonable administrative costs, such as costs for telephone
calls, internet usage, printing, etc., necessarily incurred by Consultant in rendering consulting services hereunder, but not any other fees, costs, or expenses. Consultant shall submit a statement for each month in which consulting services are
rendered, showing costs, expenses and days worked with respect to services rendered during such month, along with documentation substantiating expenses for which reimbursement is sought. The Company agrees to remit to Consultant the appropriate
amount promptly following receipt of such statements. Consultant will be responsible for income or other taxes assessed on Consultant’s receipt of fees and expense reimbursements from the Company. 

	4.	Security and Non-Disclosure of Information. Consultant shall be responsible for, and bear the expense of, compliance with governmental laws and regulations applicable to the procurement, utilization or production
of information in connection with the furnishing of services hereunder. Consultant agrees that, during the Consulting Period, Consultant will refrain from performing any act or engaging in any course of conduct which has or may reasonably have the
effect of demeaning the name or business reputation of the Company or affects adversely or may reasonably affect adversely the Company’s best interests, economic or otherwise. Consultant also acknowledges that applicable securities laws
prohibit the trading of Company securities while in possession of any material non-public information, including information concerning the financial condition, results of operations, business or prospects of MII and its subsidiaries.

  

	5.	Property and Information. All property and information, including but not limited to reports, findings, recommendations, plans, data, and memoranda of every description, and all copies thereof, furnished to
Consultant or developed in the course of or relating to the services rendered hereunder shall be the property of the applicable Company Entities, and Consultant shall not retain copies of any such matter or material. Consultant agrees that all
inventions, discovery or improvements (whether patentable or not) made or conceived by Consultant are and will remain the sole property of the applicable Company Entities, and Consultant further agrees to assist the applicable Company Entities in
obtaining patents in their names covering any such inventions, discoveries or improvements. 

  

	6.	Law. Consultant will comply with all applicable laws and regulations in the course of Consultant’s activities on behalf the Company Entities. 

 

	7.	Code of Business Conduct. Consultant expressly acknowledges that Consultant has received and reviewed the most recent McDermott International, Inc. Code of Business Conduct, and Consultant will conform
Consultant’s activities undertaken for or on behalf of the Company Entities consistent with the principles of the highest ethical behavior as described therein. 

 

							
	Signature:	  	 /s/ Stephen M. Johnson
	  		  	Date: December 16, 2013
		  	     Stephen M. Johnson	  		  	

  

	8.	Reports. Consultant agrees that, upon request, Consultant will file periodic reports on Consultant’s activities on behalf the Company Entities. 

 

	9.	Indemnity. The Company agrees to protect, hold harmless, defend, and indemnify Consultant from and against any and all claims, suits, and demands, of any kind whatsoever, by whomsoever asserted, as a result of,
or arising from, the consulting services provided by Consultant under this Agreement to the Company Entities; provided, however, that the Company shall have no liability or responsibility under this provision for any such claim, suit, or
demand resulting from the gross negligence or intentional misconduct of Consultant. 

	10.	Conflict of Interest. Consultant agrees that Consultant is not presently engaged and will not engage during the term of this Consulting Agreement in any activity which might reasonably create a conflict of
interest between Consultant and any of the Company Entities or which might reasonable and adversely affect Consultant’s judgment with respect to the business of the Company Entities. Consultant further agrees that Consultant will accept no
payment from any competitor or supplier of materials or services, customer, borrower, or lender of the Company Entities. 

  

	11.	Consulting Period. The Consulting Period shall begin on January 1, 2014 and continue through June 30, 2014, unless extended by the mutual written agreement of the Company and Consultant. The Consulting
Period will be terminated without further liability or obligation on the part of the Company should Consultant breach any of the terms or covenants of this Agreement (including this Exhibit B).EX-10.3

 Exhibit 10.3 

CBRE GROUP, INC. 

EXECUTIVE BONUS PLAN 

Dated February 21, 2014 
  

	1.	PLAN OBJECTIVE 

 The Executive Bonus Plan (“EBP” or the “Plan”) has
been designed to reward and encourage the efforts of the executive officers of CBRE Group, Inc. (“CBRE” or the “Company”) to successfully attain the Company’s goals by directly tying the Participant’s
compensation to Company and individual results. The EBP is also designed to (a) provide competitive compensation opportunities for executive officers and (b) assist in retaining and attracting key employees for CBRE. 

 

	2.	EFFECTIVENESS AND PLAN YEAR 

 The Plan is dated the first date set forth above and is effective in
respect of the 2013 Plan Year (as defined below) such that it shall apply in respect of Awards (as defined below) in respect of such Plan Year even though the Plan is being entered into after the end of such Plan Year but before such Awards are
paid. The Plan will remain in effect until suspended, amended, terminated or otherwise altered in accordance with Section 10 hereof. The Plan supersedes and replaces, in total, all prior versions of the Plan or any other bonus guarantees. A
“Plan Year” starts on January 1 and ends December 31 of the same year. 
  

	3.	PLAN ADMINISTRATION 

 Human Resources will administer the Plan, including participation, eligibility
criteria and payment of Awards, subject to final review and approval by the Chief Executive Officer and the Board of Directors. The Board of Directors may delegate any of its duties hereunder in its discretion to its Compensation Committee (the
“Committee”). 
  

	4.	ELIGIBILITY 

  

	4.1	Eligibility for participation in the EBP and receipt of bonus awards pursuant to the terms and conditions of the Plan (“Awards”) will be limited to the Chief Executive Officer and other executive
officers specifically designated and approved by the Chief Executive Officer and the Board of Directors each year (the CEO and such other officers so designated and approved, “Participants”). Unless otherwise specifically approved
by the Chief Executive Officer and the Board of Directors, executive officers who participate in any other Company bonus plan, as well as executive officers who are paid on a commission basis or participate in the bonus plan for commissioned
salespersons, are not eligible to participate in the EBP. 

  

	4.2	Participation for a Participant begins on the first day of employment or the designated effective date of a Participant’s eligibility to participate in the Plan. Eligibility for the Plan does not guarantee payment
of an Award because payment is dependent upon earning the Award and the other provisions of the Plan, including both individual and Company performance. 

  
 1 

	4.3	Participants who are newly hired, transfer to a new position or become eligible to participate during a Plan Year are eligible to earn an Award as follows: 

 

	 	(a)	Newly-hired or newly-eligible Participants will be eligible for a pro-rated Award based on the number of full weeks worked in the eligible position from the first date of employment or the designated effective date
during the Plan Year. 

  

	 	(b)	Participants who transfer to a new position that is not then eligible for the Plan will be eligible for a prorated Award based on the number of full weeks worked in the eligible position during the Plan Year.

  

	 	(c)	Participants who transfer or are promoted to another position and remain eligible for the Plan under the new position will be eligible to earn a prorated Award for each position based on the number of full weeks worked
in each position during the Plan Year. Eligibility to earn Awards will be based on the number of full weeks the Participant worked in each position and the applicable Target Awards and/or ratings for each position. 

 

	4.4	If the employment status of a Participant changes prior to the Payment Date (as defined below), eligibility for an Award will depend on the reason for the status change: 

 

	 	(a)	Resignation or voluntary termination for any reason: Eligibility for Awards is forfeited on resignation or voluntary termination by the Participant for any reason before the Payment Date. 

 

	 	(b)	Involuntary termination for Cause: Eligibility for Awards is forfeited on involuntary termination by the Company for Cause before the Payment Date. As used herein, the term “Cause” shall mean:
(i) an uncured material breach by a Participant of one or more of the material terms and conditions of such Participant’s employment agreement, (ii) a material violation by a Participant of the Company’s published policies
without permission or just cause, (iii) a Participant’s substantial and continuing non-performance under such Participant’s employment agreement, (iv) any act of fraud, embezzlement or other dishonesty in connection with a
Participant’s duties and obligations, (v) any intentional act by a Participant that would jeopardize the Company’s licenses to do business, or (vi) the commission by a Participant of any illegal and/or unethical act that
adversely and materially affects the character, goodwill and public reputation of the Company. 

  

	 	(c)	Involuntary termination not for Cause: Eligibility for Awards is forfeited on involuntary termination by the Company not for Cause before the Payment Date. Participants classified as a Highly Compensated Employee
(“HCE”) and eligible for severance benefits as defined by the Severance Pay Policy then in effect are eligible (but not guaranteed) to receive a pro-rated target bonus at the sole discretion of the Company under the provisions of
the Company’s Severance Pay Policy then in effect. 

  
 2 

	 	(d)	Retirement: If a Participant Retires (as defined below) prior to a Payment Date and participated in the Plan for at least 26 full weeks of the Plan Year, eligibility for an Award may (but is not guaranteed to) be
prorated based on the number of full weeks of participation in the Plan Year. If paid, a prorated Award will be paid at the time that Awards are paid to Participants generally. If participation in the Plan is for less than 26 full weeks during the
Plan Year, the Retiring Participant is not eligible for an Award for that Plan Year. As used in this Section 4.4(d), “Retire” (and corresponding terms) means voluntary termination of employment by a Participant with the Company
or an affiliated company, where that Participant is (x) age 55 or older with at least 15 years of service or (y) age 65 or older with at least 10 years of service, or for non-U.S. participants, such other age as required to qualify for
retirement under applicable non-U.S. law with at least 15 years of service. 

  

	 	(e)	Death or disability: If a Participant dies or becomes disabled prior to a Payment Date, eligibility for an Award may (but is not guaranteed to) be prorated based on the number of full weeks of participation in
the Plan Year. If paid, any prorated Award will be paid at the time that Awards are paid to Participants generally. A Participant will be considered “disabled” if the Participant is disabled as defined under the provisions of the
Company’s Long-Term Disability Plan then in effect. For a Participant who dies prior to the Payment Date, the Award (if paid) will be paid to the Participant’s beneficiary as designated in the Participant’s group term life insurance
at the time of death. 

  

	5.	DISCRETIONARY COMPANY THRESHOLDS 

 Awards may not be paid to any Participant if the Company fails to
achieve one or more minimum financial performance targets (the “Discretionary Company Thresholds”) as determined and set by the Company in its sole discretion. The Discretionary Company Thresholds may be set and/or amended by the
Company at its sole discretion at any time during the Plan Year and up to the Payment Date. 
  

	6.	TIMING OF CALCULATIONS, PAYMENTS 

  

	6.1	Awards are earned by performance during the Plan Year and by remaining actively employed by the Company through the date Awards are paid. 

 

	6.2	Subject to final approval by the Chief Executive Officer and the Board of Directors, Awards will be paid on or before March 15 following the end of the Plan Year with respect to which the Award relates (such date
of payment, the “Payment Date”). 

  

	6.3	Subject to Sections 4.4(c), 4.4(d) and 4.4(e), if a Participant’s employment terminates for any reason (whether voluntarily or involuntarily) either during the Plan Year or following the end of the Plan Year but
prior to the Payment Date, unless otherwise determined by the Company pursuant to the terms hereof, no Award (or portion thereof) shall be payable or earned with respect to such Plan Year. 

 

	6.4	It is intended that all Awards earned will be paid in cash. However, the Company reserves the right to distribute common stock in the Company or other non-cash forms of compensation in lieu of cash in the event economic
circumstances dictate such action. 

  
 3 

	6.5	Federal and state income taxes and other required taxes will be withheld from bonuses under applicable law. 

  

	6.6	To the extent that any Awards under the Plan are subject to Section 409A of the Internal Revenue Code (“IRC”), the terms and administration of such Awards shall comply with the provisions of such
Section, applicable IRC guidance and good faith reasonable interpretations thereof, and, to the extent necessary to achieve compliance, such Awards shall be modified, replaced, or terminated at the discretion of the Committee. 

 

	7.	MAXIMUM ANNUAL BONUSES 

 The maximum Award to be received by any Participant shall not exceed 200% of the
Target Award (as defined below), inclusive of CEO Awards (as defined below). 
  

	8.	CEO AWARDS 

 The Company reserves the right to award to a Participant a supplemental discretionary bonus
award in cases of exceptional and exceedingly deserving circumstances, the amount of which shall be determined in the Chief Executive Officer’s sole discretion (subject to the ratification by the Board of Directors). This supplemental award is
referred to herein as a “CEO Award.” 
  

	9.	AWARD CALCULATION 

  

	9.1	Participants are eligible for an Award each Plan Year, based on (a) financial measures (“Financial Performance Targets”) for the Company, business unit or line of business, and (b) individual
achievement of important Company or individual objectives in each Participant’s area of responsibility (“Strategic Performance Measures”). 

  

	9.2	Target Awards: 

  

	 	(a)	Each Participant will be assigned a “Target Award” by the Company in its sole discretion (generally based on a Participant’s position and that position’s potential contribution to the Company)
by March 31 of each Plan Year. For new hires or newly-eligible Participants (whether by transfer or promotion), the Target Award will be set within ninety (90) days of eligibility for the Plan. 

 

	 	(b)	 Target Awards will be determined based on Financial Performance Targets and Strategic Performance Measures established at or near the beginning of a
Plan Year for each Participant (or for new hires or newly-eligible Participants (whether by transfer or promotion), established at or near the date of their eligibility to participate in the Plan). Awards will be determined as set forth in
Section 9.5 below by making a preliminary determination of the Award based on achievement of Financial Performance Targets and then adjusting that resulting amount for each Participant (as further weighted by his or her Strategic Performance
Portion (as defined below)) based on performance against Strategic Performance 

  
 4 

 
Measures. At the Committee’s direction, Strategic Performance Measures account for 20% to 40% (inclusive) of the Target Award (depending on the executive category) (the “Strategic
Performance Portion”), and the remainder is the “Financial Performance Portion.” For example, if the Committee determines that an Award should be weighted 80% on financial measures and 20% on strategic measures, then that
Participant’s Financial Performance Portion would be 80%, and that Participant’s Strategic Performance Portion would be 20%. 
  

	 	(c)	In the event that a Target Award amount or weighting of any component thereof is changed during a Plan Year, the payment of that Plan Year’s Award will be pro-rated based on the number of full weeks that each
respective Target Award (or such component’s weighting) was in force, unless other written agreements supersede this provision. 

  

	9.3	Financial Performance Targets: Financial Performance Targets are approved by the Board of Directors at or near the beginning of each Plan Year. Until otherwise designated by the Board of Directors, EBITDA is the
metric utilized to set Financial Performance Targets for the Company, regions, business units and lines of business, as adjusted to eliminate the effects of charges for restructurings, discontinued operations, extraordinary items and other unusual
or non-recurring items as well as the cumulative effect of tax or accounting changes. The Company (with the approval of the Board of Directors) reserves the right to change the Financial Performance Target metric from time to time without the
necessity of amending the Plan. 

  

	9.4	Strategic Performance Measures: 

  

	 	(a)	Participants must have measurable Strategic Performance Measures set by the Company in writing by March 31 of each Plan Year in respect of that Plan Year, with the Company having the discretion (but not being
required) to assign relative weights to each such Strategic Performance Measure. If relative weights are not assigned, then each Strategic Performance Measure will be given an equal weighting. 

 

	 	(b)	For new hires or newly-eligible Participants (whether by transfer or promotion), the Strategic Performance Measures must be set within ninety (90) days of eligibility for the Plan. 

 

	 	(c)	Non-submission of Strategic Performance Measures to the Board of Directors will make the Participant ineligible for an Award. 

  
 5 

	9.5	Calculation of Awards: Following the conclusion of the Plan Year, assuming the Discretionary Company Thresholds are satisfied, Awards are calculated as follows: 

 

	 	(a)	Preliminary Award: Actual financial performance is compared to the Financial Performance Targets, and an Adjustment Factor is then determined as follows: 

 

			
	 Achievement Against

Financial Performance

Target
	 	Adjustment Factor
	<= 70%	 	0%
	100%	 	100%
	>=130%	 	200%

  

	*	The Adjustment Factor for financial performance achievement between 70% and 130% of the financial performance target will be linearly interpolated. For example, achievement of 124.3% of the Financial Performance
Target will result in an Adjustment Factor of 181.00%. 

 The Adjustment Factor is then multiplied by the dollar amount of
the full Target Award. This product is the “Preliminary Award.” 
  

	 	(b)	Financial Performance Portion: The Preliminary Award is then multiplied by the weighting of the Financial Performance Portion for the Participant. This product becomes part of the Award for the Participant.

  

	 	(c)	Strategic Performance Portion: First, the Preliminary Award is multiplied by the weighting of the Strategic Performance Portion for the Participant to determine a base amount attributable to Strategic
Performance Measures (the “Strategic Base Amount”). Second, following the end of the Plan Year, the Chief Executive Officer (or where the Participant is the Chief Executive Officer, the Committee) will score that Participant
based on that Participant’s performance against his or her Strategic Performance Measures, considered individually (and if so, by taking into account their relative weightings) or by giving a single score for all Strategic Performance Measures,
as the Chief Executive Officer so determines. The Participant’s performance against the Strategic Performance Measures as so considered will be rated using a scorecard with a scale of 1 through 5 that has corresponding percentage grades1, and will take into account recommendations from the Participant’s direct manager (as applicable). The scorecard will also 

 
  

1 The scorecard will be as follows: 

 

							
	 Rating
	  	 Performance Assessment
	  	Preliminary Multiplier Against Portion
of Total Award Subject to Strategic
Measures	 
	1	  	Far Below Expectations	  	 	0	% 
	2	  	Partially Met Expectations	  	 	75	% 
	3	  	Met Expectations	  	 	100	% 
	4	  	Somewhat Exceeded Expectations	  	 	125	% 
	5	  	Far Exceeded Expectations	  	 	150	% 

  

	*	A composite score of 4.2 (e.g., because four strategic measures weighted at 20% each received a “4” but a fifth strategic measure also weighted at 20% received a “5”) would be linearly
interpolated to result in a 130.0% preliminary multiplier. 

  
 6 

 
contain space for commentary regarding the Participant’s performance if appropriate (e.g., describing special circumstances). The information on the scorecard, taken as a whole, is
then used to determine a preliminary multiplier against the Strategic Base Amount, which preliminary multiplier will range from zero to a maximum of 150%. Third, once the preliminary multiplier is so determined, the Chief Executive Officer
(or where the Participant is the Chief Executive Officer, the Committee) may (but is not required to) then further adjust such preliminary multiplier (but not to be less than zero or more than 150%) after taking into account, among other things, the
Participant’s performance and positioning relative to his or her peer group, seniority, experience, growth, development and accomplishments in respect of and outside the Strategic Performance Measures (including, if relevant, in respect of
other objectives that became important Company or Participant priorities during the year). The preliminary multiplier, as so further adjusted, then becomes the ultimate multiplier, and the product of this ultimate multiplier and the Strategic Base
Amount becomes part of the Award for the Participant. 
  

	 	(d)	Sum of Resultant Products; Subject to Overall Cap: The resultant parts in the ultimate sentences of Sections 9.5(b) and 9.5(c) are then added together to arrive at an Award for the Participant (but subject to the
other terms contained in the Plan, including Section 9.5(e)), not to exceed the overall cap in Section 7 hereof. 

  

	 	(e)	Role of CEO and Board of Directors. The final Award recommendation will be made by the Chief Executive Officer and approved by the Board of Directors. 

 

	 	(f)	Subject to Discretionary Company Thresholds. Notwithstanding the foregoing, if the Discretionary Company Thresholds in Section 5 are not met, no Award (or portion thereof) will be earned or paid under the
Plan. 

  

	10.	SUSPENSION, AMENDMENT OR TERMINATION OF THE PLAN 

 The Company reserves the right at any time prior to
payment of the Awards to review, interpret, alter, suspend, amend, or terminate or discontinue (with or without notice) the Plan (including in respect of a Plan Year already completed if prior to the Payment Date in respect of that Plan Year),
including, without limitation, the calculation and method of and eligibility for Award payments, provided, however, that any alterations or amendments to the Plan require the approval of the Board of Directors, provided further,
however, that any alterations or deviations in respect of the process for determining the Strategic Performance Portion pursuant to Section 9.5(c) hereof do not require the approval of the Board if such alterations or deviations are
otherwise approved by the Chief Executive Officer. The Plan does not constitute a contract of employment (express or implied) and cannot be relied upon as such. The Plan does not alter the at-will employment relationship between the Company and the
Participants. 

  
 7 

	11.	ETHICS 

 The Board of Directors shall have the right to withhold or decrease a Participant’s Award
on account of a Participant’s violation(s) of the Standards of Business Conduct or other Company policies, including, without limitation, the failure to model and enforce the Company’s high standards of ethical conduct or to demonstrate a
commitment to a discrimination-, retaliation- and harassment-free workplace. Conversely, the Board of Directors may increase incentive compensation (up to the total maximum Award permitted under the Plan) for a Participant who demonstrates
extraordinary achievements in these critical areas for the Company. 

  
 8

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