Document:

tdw-ex1032_116.htm

Exhibit 10.32

 

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement ("Agreement"), by and between Tidewater Inc., a 
Delaware corporation (the "Company"), and Larry T. Rigdon (the "Employee"), is effective on 
October 16, 2017.

 

RECITALS

 

WHEREAS, the Employee currently serves as a non-executive member of the Company's Board of Directors (the "Board");

 

WHEREAS, the Company and the Employee desire to provide continuity and leadership during and in connection with the Company's recruitment and hiring  of a new President  and Chief Executive Officer ("CEO"); and

 

WHEREAS, accordingly, the Company desires that the Employee serve as its President and CEO on an interim basis.

 

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are mutually acknowledged, the Employee and the Company hereby agree as follows:

 

1 .Employment as President and CEO.

 

(a)Positions and Term.  The Employee shall serve as a full-time, at-will employee, i n the positions of President and CEO, and shall be the Company's principal executive officer,

until the earliest of (i) the date upon which a successor President and CEO is appointed by the Board, (ii) the Employee's death, (iii) a termination by the Company for any reason or no reason, and (iv) a resignation by the employee upon no less than sixty (60) days' prior written notice to the Chairman of the Board (the "Term").  Upon the termination of the Term, the Employee's employment shall terminate and the Employee shall no longer have any responsibilities as the Company's principal executive officer, any responsibility to sign the Company's financial documents including but not limited to quarterly or annual reports, or any other authority or responsibilities as an officer or employee of the Company.

 

(b)Duties.  During the Term, the Employee shall report to the Board and shall do and perform all reasonable services, acts, or things necessary or advisable to manage and conduct the business of the Company and that are normally associated with the position of principal executive officer, consistent with the bylaws of the Company and as required by the Board. During the Term, the Employee shall devote the Employee's full business energies, interest, abilities, and productive time to the proper and efficient performance of the Employee's duties

under this Agreement, and the Employee shall not, without the prior written consent of the Board or as otherwise set forth on Annex A, render to others services of any kind for compensation , or engage in any other business activity that would materially interfere with the performance of the Employee's duties under this Agreement.  The Board agrees to promptly appoint a committee tasked with the search, identification, and hiring of a longer-term President, CEO, and principal executive officer of the Company, as well as to engage an executive search firm to assist with the foregoing.

 

(c)Principal Place of Employment.  The Employee shall perform services pursuant to this Agreement at the Company's headquarters in Houston, Texas; provided, however, that the

(a)

 

 

Employee may from time to time be required to travel temporarily to other locations in connection with the Company's business.

 

(a)Board Membership.  This Agreement shall not affect the Employee's status as a member of the Board; provided that during the Term the Employee shall not receive any additional compensation for services as a member of the Board. Notwithstanding the foregoing, the Employee hereby resigns from the Audit Committee of the Board, effective immediately prior to his appointment as President and CEO.  Subject to any delay that may be required by applicable New York Stock Exchange and Securities and Exchange Commission rules, the Employee shall be restored to such position once his tenure as President and CEO ends.

 

2.Compensation.

 

(a)Base Salary.  During the Term, the Company shall pay the Employee a base salary at an annual rate of $240,000 (the "Base Salary"), payable in accordance with Company policy and payroll practices.

 

(b)Cash Bonus Opportunity.  The Employee shall be eligible to participate in the Company's short-term incentive program for each year during the Term, with a target annual cash bonus opportunity equal to $600,000, prorated for partial years.  The specific targets and metrics to be included in the Employee's short-term incentive shall be mutually agreed between the Board and the Employee.

 

(c)Equity Award.  On or promptly following the date hereof, the Company shall grant to the Employee an award of restricted stock units (the "RSUs") pursuant to the Company's 2017 Stock Incentive Plan (the "Plan") and an award agreement that is substantially similar to the Company's standard form of Incentive Agreement for the Grant of Restricted Stock Units under the Plan; provided, that the RSUs shall vest in four (4) substantially equal quarterly installments commencing on the date of grant, subject to the Employee's continued employment with the Company through the vesting date.  The number of RSUs to be granted shall equal the quotient derived by dividing $360,000 by the closing sale price for a share of the Company's common stock, $0.001 par value per share, on the New York Stock Exchange on the date of grant.

 

	
 
	
(d)
	
Employee Benefits.  During the Term, the Employee shall be entitled to

participate in the benefit plans and programs that are provided by the Company from time to time for its senior executives generally, subject to the terms and conditions of such plans and  programs.

 

(e)Business Expenses.  During the Term, the Company shall promptly reimburse the Employee for the Employee's reasonable and necessary business expenses in accordance with its then-prevailing policies and procedures for expense reimbursement as approved by the Board (which shall include appropriate itemization and substantiation of expenses incurred).

 

(f)Withholding.  All amounts payable to employee in respect of his service to the Company during the Term shall be subject to reduction for tax and other withholding obligations.

 

3.Indemnification.  The Employee shall be indemnified and held harmless (without duplication) by the Company to the fullest extent permitted under applicable law and the Company's bylaws (and any other applicable constitutive document) from and against any liabilities, costs, claims, and expenses (including attorneys' fees) incurred by the Employee i n the event that the Employee is made a party to any action, suit, or proceeding by reason of his being

2.

 

 

or having been a director, officer, or employee of the Company or any of its subsidiaries (other than any action, suit, or proceeding arising under or relating to this Agreement).  Costs and

expenses incurred by the Employee in defense of such action, suit, or proceeding (including attorneys' fees) shall be paid by the Company in advance of the final disposition of such litigation upon receipt by the Company of (i) a written request for payment, (ii) appropriate documentation evidencing the incurrence, amount, and nature of the costs and expenses for which payment is being sought, and (iii) an undertaking adequate under applicable law made by or on behalf of the Employee to repay the amounts so paid i n advance if it shall ultimately be determined that the Employee is not entitled to be indemnified by the Company hereunder.  During the Term and for a period of six (6) years thereafter, the Employee shall be entitled to directors' and officers' liability insurance coverage that is no less favorable to the Employee than the coverage that is then provided to other current or former executive officers of the Company.

 

	
 
	
4.
	
Payments Upon Termination.  Upon termination of the Term for any reason, the Employee shall be entitled to payment of any accrued but unpaid Base Salary for services performed hereunder through the last day of the Term.  In addition, if the Term is terminated prior to October 15, 2018 (including in connection with the Company's appointment of a
	
 

successor longer-term President, CEO, and principal executive officer), unless such termination is by the Company for Cause (as defined below), is due to a voluntary resignation, or is due to the Employee's death or permanent disability, the Employee shall be entitled to (i) an amount equal

to the Base Salary that would have been paid to the Employee pursuant to Section 2(a) above for the time remaining between the termination of the Term and October 15, 2018, which amount shall be paid i n a lump-sum cash payment within thirty (30) days following such termination, and

(ii) accelerated vesting of all then-unvested RSUs as of the last day of the Term.  Any amounts and benefits under this Section 4 shall be the sole amounts to which the Employee shall be entitled to upon termination of the Term i n respect of his service as President and CEO.  As used herein, "Cause" shall mean the occurrence of any of the following, as determined in the sole discretion of the Board: (a) the willful and continued failure of the Employee to substantially perform his duties with the Company (other than any such failure resulting from a disability), after a written demand for substantial performance is delivered to the Employee by the Board that (i) specifically identifies the manner in which the Board believes that the Employee has not substantially performed his duties and (ii) provides the Employee with (I ) an opportunity to

discuss the alleged conduct with the Board, and (2) with respect to conduct that is susceptible of cure (as determined by the Board in its sole discretion), a reasonable opportunity (but in no event more than thirty (30) days) to cure; (b) the willful engaging by the Employee in conduct that is demonstrably and materially injurious to the Company, monetarily or otherwise; (c) the Employee's indictment for, conviction of, or guilty or no contest plea to, a felony or any crime involving dishonesty; or (d) the Employee's willful misappropriation  of Company funds, or any other willful act of personal dishonesty that is a material violation of the Company's policies.  For purposes of this provision, no act or failure to act, on the part of the Employee, shall be considered "willful" unless it is done, or omitted to be done, by the Employee in bad faith or without reasonable belief that his or her action or omission was in the best interests of the Company.  Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the written instructions of a senior officer of the Company shall be conclusively presumed to be done, or omitted to be done, by the Employee in good faith and in the best interests of the Company .

 

5.Successors and Assigns.  The parties acknowledge and agree that this Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, legal representatives, successors, and permitted assigns.

 

 

 

	
 
	
6.
	
Severability. If any provision of this Agreement is held by any court of competent jurisdiction to be illegal, void, or unenforceable, such provision will be of no force or effect.  The illegality or unenforceability of such provision, however, will have no effect upon and will not
	
 

impair the enforceability of any other provision of this Agreement.

 

7.Entire Agreement.  This Agreement constitutes the entire understanding and agreement between the Employee and the Company regarding the Employee's service as President and CEO.  This Agreement supersedes all prior negotiations, discussions, correspondence,

communications, understandings, and agreements between the Employee and the Company relating to the subject matter of this Agreement.  Any changes or amendments of this Agreement can be made only in a writing signed by the parties hereto.

 

8.Governing Law; Jurisdiction; Waiver of Jury Trial.  This Agreement will be governed in accordance with the laws of the State of Louisiana, without reference to the principles of conflicts of law.  Any dispute or claim arising out of or relating to this Agreement or claim of breach

hereof will be brought exclusively i n the federal and state courts located i n New Orleans, Louisiana.  By execution of this Agreement, the parties are waiving any right to trial by jury in connection with any suit, action, or proceeding under or in connection with this Agreement.

 

***

 

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth below.

 

TIDEWATER  INC.

 

 

     /s/ Thomas R. Bates Jr.

By: Thomas R. Bates Jr. Title: Chairman of the Board

 

EMPLOYEE

 

/s/ Larry T. Rigdon                                                                                 

    Larry T. Rigdon 

 

 

October 16, 2017

DATE

 

 

 

ANNEX A

 

Other Permitted Activities

 

 

 

Membership on the Board of Professional Rental Tools, LLCtdw-ex1034_115.htm

Exhibit 10.34

TIDEWATER INC.
COMPANY PERFORMANCE EXECUTIVE OFFICER
SHORT-TERM INCENTIVE PLAN
FOR TRANSITION PERIOD
(APRIL 1 – DECEMBER 31, 2017)

	
I.
	
PLAN OBJECTIVE

The primary objective of the Tidewater Inc. Company Performance Executive Officer Short-Term Incentive Plan (the “Plan”) is to reward Tidewater’s executive officers for their leadership in helping Tidewater Inc. (the “Company”) achieve its safety performance goals during the period from April 1, 2017 through December 31, 2017 (the “Transition Period”).  The Plan links a significant element of potential variable compensation to the accomplishment of these goals.

The Plan is not intended to qualify as performance-based compensation under Section 162(m) of the Internal Revenue Code of 1986, as amended, and the regulations and guidance thereunder.  

	
II.
	
ADMINISTRATION

The Plan will be administered by the Compensation Committee (the “Committee”) of the Board of Directors of the Company.  The authority of the Committee includes, in particular, the authority to:

	
 
	
A.
	
designate participants and target award percentages;

	
 
	
B.
	
establish performance goals and metrics; 

	
 
	
C.
	
consider the achievement of the performance goals and metrics and determine whether any payment will be made under this Plan;

	
 
	
D.
	
establish regulations for the administration of the Plan and make all determinations deemed necessary for the administration of the Plan; and

	
 
	
E.
	
approve payments to the extent performance goals and metrics have been achieved.

The Committee may use its discretion to reduce or to eliminate, but not to increase, the bonus amount payable to a participant under the Plan formula.

	
III.
	
ELIGIBILITY CRITERIA

The Committee has designated all of the Company’s executive officers other than the Chief Executive Officer (the Chief Financial Officer, Chief Operations Officer, Executive Vice President – General Counsel, and Executive Vice President – Chief Investor Relations Officer) as participants in this Plan.  

{N3501223.3}

 

	
IV.
	
AWARD OPPORTUNITIES

On October 15, 2017, the Committee approved target incentive awards for each participant, which were memorialized in writing.  These amounts were determined based upon each eligible participant’s base salary in effect on that date multiplied by the target percent associated with his or her position within the Company, adjusted for a nine-month performance period, with the resulting product then multiplied by 0.25 (representing the portion of the overall target award that, in prior years, would have been earned based on a safety bonus).  The actual payout percentage for a given participant may increase or decrease based upon performance above or below target.  If a participant has a change in position during the Transition Period, that participant’s target percentage will be adjusted prospectively and his or her award for the full Transition Period will be calculated on a pro rata basis (based on the number of days the participant served at each position).  The total award earned by a participant under this Plan for performance in the Transition Period may not exceed $3 million.

	
V.
	
COMPANY PERFORMANCE CRITERIA

For the Transition Period, any bonus amount earned under the Plan will be determined based upon the achievement of a single safety metric, according to the payout matrix approved by the Committee at its October 15, 2017 meeting.  

 

	
VI.
	
DETERMINATION OF BONUS AMOUNT

The safety performance measurement is determined by achievement of the Company’s overall established safety performance goals for the Transition Period, as approved by this Committee in writing at its October 15, 2017 meeting.  Under this performance measure, potential payout is directly correlated with the Total Recordable Incident Rate (TRIR) for the Transition Period.  “Total Recordable Incident Rate” is defined as follows:

			
	
(Loss Time Accidents + Recordable Incidents) X
200,000 (man hours)
	
 

=
	
Total Recordable Incident Rate per
200,000 man hours of exposure

	
Total Man Hour Exposure

Non-job related deaths will not count toward the TRIR.  Payout will range between 0% (for below threshold performance), to 100% of target (for target performance), to a maximum of 150% of target (for exceptional performance).  Payout for results falling between threshold and target or target and maximum will be pro-rated.  

Notwithstanding the foregoing, the Committee may determine not to pay the bonus because of the occurrence of one or more fatalities or for any other reason.

	
VII.
	
TERMINATION OF EMPLOYMENT

	
 
	
A.
	
If a participant’s employment is terminated because the participant dies or becomes disabled, as “disability” is defined in Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance thereunder (“Section 409A”), unless otherwise determined by the Committee, the 

{N3501223.3}

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participant or, in the case of death, the participant’s estate or heirs, will be paid a pro rata bonus for the Transition Period based upon the level of satisfaction of the safety metric and the participant’s salary, but applied to the actual salary amount paid to the participant for the portion of the Transition Period during which he or she was employed.  Any such bonus will be paid to the participant or, in the case of death, to the participant’s estate or heirs, at the same time as any bonuses for the Transition Period are paid to other Plan participants as provided in Article VIII.

	
 
	
B.
	
If a participant’s employment is terminated because the participant Retires (as defined below) or is terminated by the Company without Cause (as defined below), and such termination constitutes a “separation from service” under Section 409A, unless otherwise determined by the Committee, the participant will be paid a pro rata bonus for the Transition Period based upon the level of satisfaction of the safety metric and the participant’s salary, but applied to the actual salary amount paid to the participant for the portion of the Transition Period during which he or she was employed.  Any such bonus will be paid to the participant at the same time as any bonuses for the Transition Period are paid to other Plan participants as provided in Article VIII.

	
 
	
C.
	
If a participant’s employment is terminated due to a voluntary resignation by the participant (other than a participant who Retires under Article VII.B.) or if the participant is involuntarily terminated by the Company for Cause, no pro rata bonus will be paid for the Transition Period, unless otherwise determined by the Committee in its discretion, in which case the pro rata bonus will not exceed the amount that would be due based upon the level of satisfaction of the safety metric and the participant’s salary, but applied to the actual salary amount paid to the participant for the portion of the Transition Period during which he or she was employed.  Any such bonus will be paid to the participant or at the same time as any bonuses for the Transition Period are paid to other Plan participants as provided in Article VIII.

	
 
	
D.
	
Certain Definitions. 

	
 
	
1.
	
A participant is deemed to have “Retired” for purposes of the Plan, if the participant’s employment terminates, other than as a result of a termination by the Company for Cause, at age 55 or later with at least ten years of service with the Company or at age 65 or later with at least five years of service with the Company.

	
 
	
2.
	
“Cause” for purposes of this Plan will be determined in the sole discretion of the Board of Directors of the Company and will mean:

	
 
	
a.
	
the willful and continued failure of the participant to substantially perform the participant’s duties with the Company or its affiliates (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the participant by the Board of Directors of the Company which specifically identifies the manner in which the Board believes that the participant has not substantially performed the participant’s duties, or

{N3501223.3}

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b.
	
the willful engaging by the participant in conduct which is demonstrably and materially injurious to the Company or its subsidiaries, monetarily or otherwise.

For purposes of this provision, no act or failure to act, on the part of the participant, will be considered “willful” unless it is done, or omitted to be done, by the participant in bad faith or without reasonable belief that the participant’s action or omission was in the best interests of the Company or its affiliates.  Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the instructions of a senior officer of the Company or its affiliates or based upon the advice of counsel for the Company or its affiliates will be conclusively presumed to be done, or omitted to be done, by the participant in good faith and in the best interests of the Company or its affiliates.  

	
VIII.
	
AWARD PAYMENTS

Awards determined by the Committee to be paid under the Plan will be paid in cash no later than March 15, 2018, unless deferred by a participant under a separate benefit plan of the Company.  

	
IX.
	
MISCELLANEOUS

	
 
	
A.
	
Nothing in this Plan will confer upon a participant any right to continue in the employment of the Company, or to interfere in any way with the right of the Company to terminate the participant’s employment relationship with the Company at any time.  Participation provides no guarantee that any bonus will be paid.  The success of the Company as measured by the achievement of the safety goal will determine the extent to which participants may receive bonuses under the Plan, in the discretion of the Committee.  Participation in the Plan is not a right, but a privilege, subject to annual review by the Company.  The Company retains the right to withhold payment from any participant who violates Company policies or for any other reason.  The Company also has the right to recover any amounts paid under the Plan if (i) the amount paid was based on the achievement of financial results that were subsequently the subject of a restatement, (ii) the participant is subject to the Company’s Executive Compensation Recovery Policy; (iii) the participant engaged in intentional misconduct that caused or partially caused the need for the restatement, and (iv) the effect of the wrongdoing was to increase the amount of bonus or incentive compensation.  Any participant accepts any payment under this Plan subject to such recovery rights of the Company.  The Company may, if it chooses, effect such recovery by withholding from other amounts due to the participant by the Company.

	
 
	
B.
	
The Plan will be governed by and construed in accordance with the laws of the State of Louisiana.

	
 
	
C.
	
If any term or provision of the Plan is determined at any time or to any extent to be invalid, illegal, or unenforceable in any respect as written, the participant and the Company intend for any court construing the Plan to modify or limit such 

{N3501223.3}

4

 

	
 
		
provision so as to render it valid and enforceable to the fullest extent allowed by law.  Any such provision that is not susceptible of such reformation will be ignored so as to not affect any other term or provision hereof, and the remainder of the Plan, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid, illegal or unenforceable, will not be affected thereby and each term and provision of the Plan will be valid and enforced to the fullest extent permitted by law.

	
 
	
D.
	
The Company has no obligation to make any payments under the Plan.  Any payments made will be in the sole discretion of the Committee.  The Company will have no obligation to set aside, earmark, or invest any fund or money with which to pay bonuses under the Plan.  

	
 
	
E.
	
Any payments made under the Plan are intended to comply with, or be exempt from, the requirements of Section 409A and this Plan will be construed accordingly.  Payments under this Plan that are subject to Section 409A will not be accelerated unless permitted under Section 409A.  If a participant who is a “specified employee” of the Company is entitled to a payment under this Plan due to his or her “separation from service” (as such terms are used in Section 409A) and such payment is subject to the Section 409A six-month payment delay rule, then such payment will not be made until the earlier of (1) the first business day that is more than six months following such participant’s separation from service or (2) such participant’s death.

	
 
	
F.
	
The Company has the right to terminate the Plan at any time in its sole discretion.  Upon termination, the participant will have no right to receive any amounts under this Plan.  

	
 
	
G.
	
The Company will deduct from any payment made under the Plan all applicable federal and state income and employment taxes.

	
 
	
H.
	
Prior to any payout under this Plan, the Committee will review and certify management’s calculation of the amount of the payout value of the award to be paid to each participant as a result of the achieved performance goals.

 

EXECUTED this 12th day of December, 2017, with effect from October 15, 2017.

 

TIDEWATER INC.

 

By: /s/ Joseph M. Bennett

Joseph M. Bennett

Executive Vice President and 

Chief Investor Relations Officer

 

 

{N3501223.3}

5

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