Document:

exv10w1w3

 

EXHIBIT 10.1.3

SEVENTH AMENDMENT TO THE

KAYDON CORPORATION

EMPLOYEE STOCK OWNERSHIP AND THRIFT PLAN

     This
Amendment, made this 21st day of December, 2006, by Kaydon Corporation (“Employer”).

W I T N E S S E T H:

          WHEREAS, the Employer amended and restated the Kaydon Corporation Employee Stock Ownership and
Thrift Plan (“plan”) on February 19, 2002, effective January 1, 1997, and has since amended the
plan by the instruments dated March 21, 2003, August 11, 2003, December 13, 2003, August 3, 2004,
November 1, 2004, and December 21, 2005; and

          WHEREAS, the plan must be amended to reflect the final regulations under Code Sections 401(k)
and 401(m); and

          WHEREAS, this Amendment is intended as good faith compliance with the requirements of Code
Sections 401(k) and 401(m) and is to be construed in accordance with the guidance issued
thereunder; and

          WHEREAS, Section 10.1 empowers the Employer to amend the plan;

          NOW, THEREFORE, effective the first day of the Plan Year beginning on or after January 1,
2006, the Employer amends the plan as follows:

     1. Section 5.10 is amended to read:

5.10 Additional 401(k) and 401(m) Rules.

     The following additional rules apply to the contributions subject to the Elective Deferral,
ADP and ACP Limits:

     (a) Deadline for Inclusion in Tests. To be included for testing compliance with the ADP Limit
or the ACP Limit for a Plan Year, contributions must be allocated to the participant’s accounts as
of a date during the Plan Year and must be paid to the trust by the end of the 12-month period
following the end of the Plan Year within which the contribution is to be allocated. Employer
Contributions must be made no later than the date specified under Regulations Section
1.415-6(b)(7)(ii) to be included as Annual Additions for a Limitation Year.

 

 

     (b) Plan Aggregation Rules.

          (i) HCE Required Aggregation. Unless prohibited by the Regulations, if the same Highly
Compensated Employee is eligible to participate in two or more plans of the Employer or a Related
Employer, the plans shall be treated as a single plan for determining the Highly Compensated
Employee’s Deferral Percentage and Contribution Percentage. If the plans have different plan
years, the Deferral Percentage and Contribution Percentage shall be determined by aggregating the
compensation and applicable contributions for the Highly Compensated Employee made within the plan
year of the plan being tested.

          (ii) Required Aggregation. If this plan and any other qualified retirement plan of the
Employer or a Related Employer are required to be treated as a single plan for compliance with Code
Section 410(b) (other than Code Section 410(b)(2)(A)(ii)), compliance with the ADP and ACP Limits
shall be determined as if the plans were a single plan.

          (iii) Permissive Aggregation. If this plan and any other qualified retirement plan of the
Employer or a Related Employer are treated as a single plan when permitted but not required by Code
Section 410(b) and Regulations, the aggregated plans must comply with the ADP and ACP Limits and
must also meet the requirements of Code Sections 401(a)(4) and 410(b) as if the plans were a single
plan. Plans may be aggregated permissively only if they have the same plan year and use the same
testing method to determine compliance with the ADP and ACP Limits.

          (iv) Prohibited Aggregation. Plans that may be aggregated under Code Section 410(b) but are
not actually aggregated for a Plan Year for purposes of Code Section 410(b) (other than Code
Section 410(b)(2)(A)(ii)) may not be aggregated for purposes of compliance with the ADP and ACP
Limits.

          (v) Disaggregation. If this plan is treated as being comprised of two or more separate plans
under Regulations Section 1.410(b)-7(c), each separate plan must comply with Code Sections 410(b)
and 401(a)(4) other than to determine compliance with the ADP and ACP Limits if the separate plans
are permitted to be aggregated for that purpose under Regulations
Section 1.401(k) – 1(b)(4)(v) and
1.401(m) – 1(b)(4)(v). If this plan is disaggregated into separate plans that are not combined for
purposes of determining compliance with the ADP and ACP Limits, a different testing method may
apply to each separate plan.

          (vi) Permissive Disaggregation of Otherwise Excludable
Employees. If Code Section 410(b) is applied separately to participants who have satisfied
the minimum age and service requirements of Code Section 410(a)(1)(A) for a Plan Year, compliance
with the ADP and ACP Limits shall be determined separately for all eligible participants who have
completed the minimum age and service requirements of Code Section 410(a)(1)(A) and for all
eligible participants who have not completed the minimum age and service requirements of Code
Section 410(a)(1)(A) unless the Employer has elected to disregard the Deferral Percentages and
Contribution

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Percentages of all non-Highly Compensated Employees who have not met such minimum age and service
requirements in determining the ADP and ACP for that Plan Year.

     (c) Testing Methods. The ADP Limit may be determined under the prior year
testing method or the current year testing method without regard to whether the current year
testing method or prior year testing method is used to determine the ACP Limit. If the testing
methods are not consistent for a Plan Year, Qualified Matching Contributions may not be treated as
Elective Contributions for determining compliance with the ADP Limit and Elective Contributions may
not be treated as Matching Contributions for determining compliance with the ACP Limit.

     (d) Plan Coverage Changes. If the ADP Limit or ACP Limit is determined under the prior year
testing method and a plan coverage change occurs during a Plan Year, then the ADP and ACP for all
participants who were not Highly Compensated Employees for the preceding Plan Year is the weighted
average of the ADPs and ACPs for all subgroups in the preceding Plan Year.

          (i) Definition. A plan coverage change means a change in the group or groups of eligible
Employees under this plan on account of (A) the establishment or amendment of a plan, (B) a merger
or spinoff under Code Section 414(l), (C) a change in the way plans, within the meaning of
Regulations Section 1.410(b) — 7(b), are permissively aggregated or mandatorily disaggregated, (D)
a reclassification of a substantial group of employees that has the same effect as amending the
plan, or (E) a combination of any of the above.

          (ii) Subgroup. A subgroup means all non-Highly Compensated Employees who were participants in
the preceding Plan Year plus those Employees who would have been eligible to participate had the
plan coverage change occurred in the preceding Plan Year.

          (iii) Weighted Average. The weighted average of the ADPs and ACPs is the sum of the adjusted
ADPs and ACPs for all subgroups in the preceding Plan Year. The adjusted ADP or ACP for a subgroup
is the non-Highly Compensated Employee’s ADP or ACP for the preceding Plan Year multiplied by a
fraction. The numerator of the fraction is the number of non-Highly Compensated Employees in the
subgroup and the denominator is the total number of non-Highly Compensated Employees in all
subgroups.

          (iv) Optional Rule for Minor Plan Coverage Changes. If a plan coverage change occurs, and at
least 90% of the total number of non-Highly Compensated Employees in all subgroups are from a
single subgroup, then the Employer may elect to use the non-Highly Compensated Employee’s ADP and
ACP for the preceding Plan Year instead of the weighted average.

     (e) Correction of Excess Contributions and Excess Aggregate Contributions.

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          (i) Determination of Amount. The amount of Excess Contributions and Excess Aggregate
Contributions shall be determined by reducing the Deferral Percentages or Contribution Percentages
of Highly Compensated Employees, beginning with those at the highest Deferral Percentage or
Contribution Percentage, to the next lower Deferral Percentage or Contribution Percentage level for
Highly Compensated Employees or, if greater, a percentage that results in compliance with the ADP
Limit or ACP Limit. If further reduction is required to satisfy the ADP Limit or ACP Limit, the
amount of correction shall be determined by continuing the process until the ADP Limit or ACP Limit
is not exceeded. The amount by which the Deferral Percentage or Contribution Percentage is reduced
for each affected Highly Compensated Employee shall be expressed as a dollar amount and combined to
determine the total amount of Excess Contributions and Excess Aggregate Contributions for the Plan
Year.

          (ii) Order of Correction. Excess Contributions and Excess Aggregate Contributions shall be
corrected by allocating the excess amounts determined under (i) above to the Highly Compensated
Employees on the basis of the amount of ADP or ACP Contributions taken into account in determining
the Deferral Percentages or Contribution Percentages of the Highly Compensated Employees for the
Plan Year. The ADP or ACP Contributions of the Highly Compensated Employee with the highest dollar
amount of ADP or ACP Contributions shall be reduced until the amount of the Highly Compensated
Employee’s ADP or ACP Contributions equals the ADP or ACP Contributions of the Highly Compensated
Employee with the next highest dollar amount of ADP or ACP Contributions or, if greater, until the
total amount of the excess has been allocated. The process shall be continued until the total
Excess Contributions or Excess Aggregate Contributions have been allocated. The amount by which
the ADP or ACP Contributions are reduced shall be deducted from each affected Highly Compensated
Employee as specified in Sections 5.9 and 5.5. After the deductions have been made, the ADP Limit
or ACP Limit is treated as being satisfied regardless of whether the ADP Limit or ACP Limit is
actually satisfied, if recalculated.

          (iii) Multiple Plans Limit. For purposes of determining which Highly
Compensated Employees are allocated a share of the Excess Contributions or Excess Aggregate
Contributions under (ii) above, the amount of ADP or ACP Contributions for a Highly Compensated
Employee participating in more than one plan of the Employer or a Related Employer is determined by
aggregating all of the Highly Compensated Employee’s contributions in accordance with (b)(i) above.
However, the amount of Excess Contributions or Excess Aggregate Contributions apportioned to the
Highly Compensated Employee may not exceed the amount of ADP or ACP Contributions actually
contributed to this plan for the Plan Year.

     (f) Attributable Income or Loss. Any deduction from a
participant’s account to correct or in conjunction with correction of an Excess Deferral, Excess
Contribution, or Excess Aggregate Contribution shall include the attributable income or loss for
the applicable period. The applicable period for an Excess Deferral is the calendar year. The
applicable period for an Excess Contribution or Excess Aggregate Contribution is the Plan Year.
Attributable income or loss for the period between the last day of the applicable period and the
date of distribution shall also be included if the participant’s

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account would have been credited with any income or loss during that period if the
participant’s total account had been distributed.

          (i) Method of Determination. The Employer may determine the
attributable income or loss for the applicable period and for the period between the last day of
the applicable period and the date of distribution using any reasonable method that does not result
in discrimination under Code Section 401(a)(4). The method must be used consistently for all
participants and for all corrective distributions for the Plan Year and must be the method used for
allocating earnings or losses to the participants’ accounts for that year. The computation of
attributable income or loss must be determined as of a date that is no more than seven days before
the date of distribution.

          (ii) Alternative Method of Determination. If the attributable
income or loss is not determined under (i) above, the income or loss shall be determined by
multiplying the income or loss attributable to the account from which the correcting deduction is
made for the applicable period for which the excess is determined by a fraction. The numerator of
the fraction is the excess amount. The denominator is the balance in the account as of the first
day of the applicable period, plus contributions allocated as of the last day of the period.

               In addition, income credited for the period between the last day of the applicable period and
the date of distribution shall be equal to 10% of the income determined under the preceding
paragraph multiplied by the number of full months between the last day of the applicable period and
the date of distribution. A month shall be considered a full month if the payment is made after
the 15th day of that month.

     (g) Ordering of Excess Amounts. Excess Deferrals shall be determined and corrected before
Excess Contributions, and Excess Contributions shall be determined and corrected before Excess
Aggregate Contributions.

     (h) Allocation of Correction Among Multiple Plans. If the Employer maintains another plan
that must be aggregated with this plan for testing compliance with the ADP or ACP Limits, the
Employer shall specify the plan from which corrections are to be made.

     (i) Deadline for Correction. To correct an Excess Contribution or Excess Aggregate
Contribution, a distribution or forfeiture shall be made not later than the last day of the Plan
Year after the Plan Year for which the excess was contributed.

     (j) Taxation of Distribution.

          (i) Excess Deferral. The Excess Deferral is included in the participant’s income for the
calendar year for which contributed. The attributable income or loss is included for the calendar
year of distribution.

          (ii) Excess Contributions/Excess Aggregate Contributions. If made within the
two-and-one-half-month period after the end of the Plan Year for which the

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excess was contributed, an amount distributed to correct an Excess Contribution or Excess Aggregate
Contribution shall be included in the participant’s income on the earliest dates any Elective
Deferrals by the participant during the Plan Year would have been received by the Participant had
the participant originally elected to receive the amounts in cash. A later distribution to correct
an Excess Contribution or Excess Aggregate Contribution shall be included in the participant’s
income for the calendar year in which it is distributed.

               Notwithstanding the preceding paragraph, if the total amount distributed to correct an Excess
Contribution or Excess Aggregate Contribution is less than $100 (excluding attributable income or
loss), the distribution shall be included in the participant’s income for the calendar year in
which the distribution is made.

     (k) Consent. A distribution to correct an Excess Deferral, Excess Contribution, or
Excess Aggregate Contribution may be made without regard to the notice and consent requirements of
Article 7 and Code Sections 411(a)(11) and 417.

     (l) Penalties. Distribution of an Excess Deferral, an Excess Contribution, or an Excess
Aggregate Contribution does not subject the participant to the 10% penalty on an early withdrawal
under Code Section 72(t). The Employer shall be liable for a 10% excise tax under Code Section
4979 on the Excess Contributions or Excess Aggregate Contributions distributed or forfeited after
the two-and-one-half-month period following the end of the Plan Year for which they were
contributed.

     (m) Calendar Year/Taxable Year. The term calendar year with reference to an individual means
the taxable year for any individual whose taxable year is not the calendar year.

     2. Section 6.6(c) is amended to read:

     All Nonvested Accounts are permanently forfeited as of the end of the Plan Year during which
the participant incurs his or her fifth consecutive Break in Service, receives a distribution of
the entire vested Account Balance, or dies after terminating employment.

     3. Section 6.6(d)(ii) is amended to read:

          The entire distribution received from the Vested Account is repaid not later than the date the
participant incurs his or her fifth Break in Service.

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     4. Section 7.1(e) is amended to read:

     (e) Plan Termination; Partial Termination. Termination of
this Plan with respect to all participants or partial termination with respect to participants
affected by the partial termination.

          Notwithstanding the above, a participant’s Elective Account and Qualifying Account may not be
distributed after plan termination if the Employer or Related Employer maintains an alternative
defined contribution plan as described in Regulations under Code Section 401(k) other than an
employee stock ownership plan as defined in Code Sections 4975(e)(7) or 409, a simplified employee
pension as defined in Code Section 408(k), a SIMPLE IRA plan as defined in Code Section 408(p), a
plan or contract that satisfies the requirements of Code Section 403(b), or a plan that is
described in Code Section 457(b) or (f).

     5. Sections 7.2(a) and (b) are amended to read:

     (a) Immediate and Heavy Financial Need. The request must establish an unusual financial burden
due to immediate and heavy financial needs. Only the purchase of, but not mortgage or other
regular payments for, a principal residence for the participant; tuition and related educational
costs for the next 12 months of postsecondary education for the participant, participant’s spouse,
children, or dependents; medical expenses previously incurred or necessary to obtain medical care
of the type deductible under Code Section 213(d) for the participant, participant’s spouse, or
dependents; prevention of eviction from, or foreclosure (or forfeiture) of the mortgage, land
contract, or other security interest on the participant’s principal residence; effective January 1,
2007, burial or funeral expenses for the participant’s parents, participant’s spouse, children or
dependents; effective January 1, 2007, expenses for the repair of damage to the participant’s
principal residence that are of the type deductible under Code Section 165; other similar matters
approved by the Committee in a uniform and non-discriminatory manner and memorialized in rules and
regulations of Plan Administration in Appendix H to this Plan; or other conditions specified by the
Commissioner of Internal Revenue in official pronouncements are immediate and heavy financial needs
for purposes of this plan.

     (b) Other Resources. The amount needed to meet the immediate and heavy
financial need must not be reasonably available from other resources of the participant. A
participant shall be deemed to have no other available resources if the participant has received
all distributions (including distributions of ESOP dividends under Code Section 404(k)) and loans
payable without termination of employment from this plan and all other plans maintained by the
Employer; and (ii) the participant suspends Elective Deferrals and after-tax employee contributions
under this plan and all other plans maintained by the Employer for a period of at least 6 months
after the withdrawal. For purposes of applying this paragraph, the Plan Administrator shall
consider all qualified and nonqualified plans maintained by the Employer including stock option,
stock purchase, and similar plans, and including a cash or deferred arrangement that is part of a

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cafeteria plan under Code Section 125 (but not the cafeteria plan itself), but excluding other
health and welfare benefit plans.

          Except as herein amended, the Employer ratifies the plan and trust.

          IN WITNESS WHEREOF, the Employer has caused this instrument to be executed by a proper officer
the day and year first above written.

	 	 	 	 	 	 	 
	 	 	KAYDON CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By	/s/ Brian P. Campbell
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Its	 	President 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	And	 	/s/ John F. Brocci 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Its	 	Secretary 
	 

	 	 	 	 	 	 

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Exhibit 10.1

                     Restricted Stock Units

2007 EMPLOYEE RESTRICTED STOCK UNIT AGREEMENT

          This 2007 Employee Restricted Stock Unit Agreement (this “Agreement”) is between
Oceaneering international, inc. (the “Company”) and                                          (the “Participant”), an employee of
the Company or one of its Subsidiaries, regarding an award (“Award”) of                      units (“Restricted Stock
Units”) representing shares of Common Stock (as defined in the 2005 Incentive plan of
oceaneering international, inc. (the “Plan”), awarded to the Participant effective February
23, 2007 (the “Award Date”), such number of Restricted Stock Units subject to adjustment as
provided in Section 15 of the Plan, and further subject to the following terms and conditions:

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

     2. Vesting.

     (a) All Restricted Stock Units subject to this Award shall vest in full on the third
anniversary of the Award Date, provided the Participant is in Employment on such
anniversary.

     (b) Restricted Stock Units subject to this Award shall vest, irrespective of the
provisions set forth in subparagraph (a) above, provided that the Participant has been in
continuous Employment from the Award Date until the December 15th following the later of (i)
the Award Date, and (ii) his attainment of Retirement Age, in the following amounts provided
the Participant is in Employment on the applicable December 15th:

     (i) if such December 15th occurs within one year following the Award
Date, on such December 15th, one-third of the Award shall be thereupon
vested and an additional one-third of the Award shall vest on each of the
two subsequent anniversaries of such December 15th;

     (ii) if such December 15th occurs between one and two years following
the Award Date, on such December 15th, two-thirds of the Award shall
thereupon be vested and an additional one-third of the Award shall vest on
the subsequent anniversary of such December 15th; and

     (iii) if such December 15th occurs between two and three years
following the Award Date, on such December 15th, the entire Award shall
thereupon be vested.

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     (c) All Restricted Stock Units (and any substitute security and cash component
distributed in connection with a Change of Control) subject to this Award shall vest in
full, irrespective of the provisions set forth in subparagraphs (a) or (b) above, provided
that the Participant has been in continuous Employment since the Award Date, upon the
earliest to occur of:

     (i) the date that the Company or any successor to the Company
terminates the Participant’s Employment for any reason on or after a Change
of Control; or

     (ii) the date that the Participant’s aggregate value of total annual
compensation (including salary, bonuses, long and short-term incentives,
deferred compensation and award of stock options, as well as all other
benefits in force on the date immediately prior to a Change of Control) is
reduced to a value that is ninety-five percent (95%) or less of the value
thereof on the date immediately prior to the Change of Control, or the
Participant’s scope of work responsibility is materially reduced from that
existing on the date immediately prior to the Change of Control, or the
Participant is requested to relocate more than 25 miles from his place of
Employment with the Company on the date immediately prior to the Change of
Control, in each case, on or after a Change of Control; or

     (iii) the Participant’s termination of Employment by reason of
Disability or death.

     (d) For purposes of this Agreement:

     (i) “Change of Control” means:

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

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

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

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

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

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

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

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

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

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

     (ii) “Disability” means the Participant is unable to engage in any
substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or
can be expected to last for a continuous period of not less than 12 months.
The Participant’s inability and its anticipated duration shall be determined
solely by a medical physician of the Participant’s choice to be approved by
the Company, which approval shall not be unreasonably withheld.

     (iii) “Employment” means employment with the Company or any of its
Subsidiaries.

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

     (v) “Retirement Age” means the earlier to occur of:

     (A) age 65 or more, or

     (B) age 60 or more with at least 15 years of continuous Employment,

provided that the Participant has remained in Employment until the earlier
to occur of (A) or (B).

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

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

     4. Registration of Units. The Participant’s right to receive the Restricted Stock Units shall
be evidenced by book entry registration (or by such other manner as the Committee may determine).

     5. Dividend Equivalent Payments. The Company will pay dividend equivalents for each
outstanding Restricted Stock Unit in cash as soon as administratively practicable after dividends,
if any, are paid on the Company’s outstanding shares of Common Stock. Such payments shall be made
no later than March 15th following the year in which the dividends are paid.

     6. Shareholder Rights. The Participant shall have no rights of a shareholder with respect to
shares of Common Stock subject to this Award unless and until such time as the Award has been
settled by the transfer of shares of Common Stock to the Participant.

     7. Settlement and Delivery of Shares.

     (a) Third Anniversary; Termination After Disability or Death; Actual or Constructive
Termination by Company After Change of Control. Settlement of vested Restricted Stock Units
that vest in accordance with Subparagraph 2(a) or 2(c) shall be made as soon as
administratively practicable after vesting, but in no case later than the
March 15th following the year in which vesting occurs. Settlement will be made by
payment in shares of Common Stock.

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     (b) Termination After Attainment of Retirement Age. Settlement of vested Restricted Stock
Units that vest in accordance with Subparagraph 2(b) to a Participant who terminates
Employment after attainment of his Retirement Age (whether or not there has been a Change of
Control) shall be made as soon as administratively practicable after termination, but in no
case later than the March 15th following the year in which termination occurs. Settlement
will be made by payment in shares of Common Stock.

     (c) Attainment of Retirement Age Without Termination. Settlement of vested Restricted
Stock Units that vest in accordance with Subparagraph 2(b) to a Participant who continues
employment through the third anniversary of the Award Date shall be made as soon as
administratively practicable after the Restricted Stock Units would have otherwise vested by
reason of Subparagraphs 2(a) or 2(c), but in no event after the later of (i) the 15th day of
the third calendar month following the applicable date in Subparagraph 2(a) or 2(c), or (ii)
the end of the calendar year in which the applicable date in Subparagraph 2(a) or 2(c)
occurred. Settlement will be made by payment in shares of Common Stock.

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

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

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

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

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

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

     10. Withholding. The Company’s obligations under this Agreement shall be subject to the
satisfaction of all applicable federal, state and local income and employment tax withholding
requirements (the “Required Withholding”). The Company may withhold an appropriate amount of cash
(with respect to the payment of dividend equivalents) or number of shares from the Common Stock
that would otherwise have been delivered to the Participant (with respect to the settlement of the
Award) necessary to satisfy the Participant’s Required Withholding, and deliver the remaining
amount of cash or shares of Common Stock to the Participant, unless the Participant has made
arrangements with the Company for the Participant to deliver to the Company cash, check, other
available funds or shares of previously owned Common Stock for the full amount of the Required
Withholding by 5:00 p.m. Central Standard Time on the date an amount is included in the income of
the Participant. The amount of the Required Withholding and the number of shares to satisfy the
Participant’s Required Withholding shall be based on the Fair Market Value of the shares on the
date prior to the applicable date of income inclusion.

     11. Stock Certificates. Certificates representing the Common Stock issued pursuant to the
settlement of an Award will bear all legends required by law and necessary or advisable to
effectuate the provisions of the Plan and this Award. The Company may place a “stop transfer”
order against shares of the Common Stock issued pursuant to this Award until all restrictions and
conditions set forth in the Plan or this Agreement and in the legends referred to in this Section
11 have been complied with.

Page 6 of 8

 

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

     13. No Employment Guaranteed. No provision of this Agreement shall confer any right upon the
Participant to continued Employment with the Company or any Subsidiary.

     14. Code Section 409A Compliance. If any provision of this Agreement would result in the
imposition of an excise tax under Section 409A of the Code and related regulations and Treasury
pronouncements (“Section 409A”), that provision will be reformed to avoid imposition of the excise
tax and no action taken to comply with Section 409A shall be deemed to impair a benefit under this
Agreement.

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

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

	 	 	 	 	 
	 	OCEANEERING INTERNATIONAL, INC.

 	 
	Award Date: February 23, 2007 	By:  	 	 
	 	 	George R. Haubenreich, Jr. 	 
	 	 	Senior Vice President, General Counsel
and Secretary 	 
	 

          The Participant hereby accepts the foregoing 2007 Employee Restricted Stock Unit Agreement,
subject to the terms and provisions of the Plan and administrative interpretations thereof referred
to above.

	 	 	 	 	 
	 	PARTICIPANT:

 	 
	Date:                                                                    	 	 
	 	 	 	 
	 	Participant’s Address: 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 

Page 7 of 8

 

	 	 	 	 	 

Exhibit A to 2007 Employee

Restricted Stock Unit Agreement

Designation of Beneficiary

          I,                                                     
         (“Participant”), hereby declare that upon my death,
                                                             (the “Beneficiary”) of             
                                                (address), who is my
                                                             (relationship), will be entitled to the Award which may become payable
under the Plan and all other rights accorded the Participant under the Participant’s 2007 Employee
Restricted Stock Unit Agreement (capitalized terms used but not defined herein have the respective
meanings assigned to them in such agreement).

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

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

	 	 	 	 	 
	 	 	 
	 	Participant
 	 
	 	 	 
	 	Date
 	 

Page 8 of 8

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