Document:

Nonqualified Stock Option Award and Subscription Agreement

 Exhibit 10.9 
 THE OPTIONS GRANTED PURSUANT TO THIS AGREEMENT AND THE SHARES OF STOCK ISSUABLE UPON THE EXERCISE THEREOF HAVE NOT AS OF THE DATE HEREOF BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
UNDER THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, ASSIGNED, PLEDGED, OR OTHERWISE TRANSFERRED IN ABSENCE OF AN EFFECTIVE REGISTRATION UNDER SUCH LAWS COVERING SUCH TRANSFER OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT
REGISTRATION UNDER SUCH LAWS IS NOT REQUIRED. 
 MAGELLAN PETROLEUM CORPORATION 

NONQUALIFIED STOCK OPTION AWARD 
 AND SUBSCRIPTION AGREEMENT 
 THIS
AGREEMENT is made as of the grant date indicated in Section 3 below (the “Grant Date”) between Magellan Petroleum Corporation, a Delaware corporation (the “Company”), and the undersigned
individual (the “Optionee”). 
 WHEREAS, effective the date hereof the Optionee
has been appointed as the Operations Manager of the Company; and 
 WHEREAS, the Company,
acting through the Compensation, Nominating and Governance (“CNG”) Committee and the full Board of Directors (“Board”) has approved the award of Nonqualified Stock Options (the “Options”) to the Optionee (the
“Award”) as an inducement for the Optionee to accept employment with the Company. 
 NOW,
THEREFORE, in consideration of the terms and conditions of this Agreement, the parties agree as follows: 
  

	1.	Grant of Options. The Company hereby grants to the Optionee the right and option to purchase from the Company, at the exercise price set forth in
Section 3 below, all or any part of the aggregate number of shares of common stock, par value $0.01 per share, of the Company, as such common shares are presently constituted (the “Stock”), set forth in said Section 3.

  

	2.	Terms and Conditions. It is understood and agreed that the Options evidenced hereby shall at all times be subject to the following terms and
conditions: 

  

	 	(a)	Expiration Date. The Options evidenced hereby shall expire on the date specified in Section 3 below; provided, however, that:

 (i) Terminations of Employment for Cause. In the event of the termination of employment
of the Optionee that is for cause, the Options, to the extent vested, but not theretofore exercised, shall terminate immediately. For purposes of this Agreement, the term “cause” means (A) the willful refusal by the

 
Optionee to perform proper responsibilities of the Optionee’s position with the Company, (B) a violation of law by the Optionee which adversely affects the assets, financial position or
reputation of the Company or one of its subsidiaries or affiliates, or (C) a material violation by the Optionee of any code of ethics, code of conduct or similar policy maintained by the Company, or one of its subsidiaries or affiliates, from
time to time. 
 (ii) Other Terminations of Employment. In the event of termination of employment of the
Optionee for any reason, other than terminations described in Section 2(a)(i) above or in Section 2(a)(iii) below, the Optionee may exercise the Options (unless previously terminated or exercised) at any time until the earlier of:
(1) December 14, 2021; or (2) twelve (12) months from the last business day of the calendar month in which the Company determines (and so informs Optionee of such determination in writing) that Optionee no longer possess material
non-public information about the Company. 
 (iii) Termination of Employment by Death or Disability. In
the event of the death or Disability of the Optionee, the Options (unless previously terminated or exercised) may be exercised (but only to the extent exercisable by the Optionee as of the date of his death or Disability) within the one
(1) year period following the Optionee’s death or Disability, but in no event later than ten (10) years from the Grant Date, by the person or persons designated in the Optionee’s will for that purpose or in the absence of any
such designation, by the legal representative of the Optionee’s estate, or by the Optionee or the Optionee’s legal representative, as the case may be. For purposes of this Agreement, the term “Disability” shall mean disability as
defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”). 
  

	 	(b)	Exercise of Option. The Options evidenced hereby shall be exercisable from time to time by (i) providing written notice of exercise ten
(10) days prior to the date of exercise specifying the number of shares for which the Options are being exercised, addressed to the Company at its principal place of business, and (ii) either: 

 

	 	(A)	Cash Only Exercise – submitting the full cash purchase price of the exercised Stock; or 

 

	 	(B)	 Cashless Exercise – subject to the provisions of Rule 144 promulgated under the Securities Act of 1933, as amended (“Securities
Act”), submitting appropriate authorization for the sale of Stock in an amount sufficient to provide the full purchase price, including, if applicable, the delivery of stock certificate or certificates for the shares of Stock for which the
Options are exercised to a licensed broker acceptable to the Company as the agent for the individual exercising the Options and, at the time such Stock certificate or certificates are delivered, the broker tenders to the Company an amount in cash
(or cash equivalents 

  
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acceptable to the Company) equal to the exercise price for the shares of Stock purchased pursuant to the exercise of the Options; or 

 

	 	(C)	Combination – tendering a combination of (A) and (B) above. 

 

	 	(c)	Tax Matters. Without regard to the method of exercise and payment, the Optionee shall pay to the Company, upon notice of the amount due, any withholding
taxes payable with respect to such exercise, which payment, subject to the provisions of Rule 144 promulgated under the Securities Act, may be made with shares of Stock which would otherwise be issued pursuant to the Options. The Optionee shall be
solely responsible for the payment or satisfaction of all taxes and penalties that may arise in connection with the Options (including any taxes arising under Section 409A of the Code), and the Company shall have no obligation to indemnify or
otherwise hold the Optionee harmless from any or all of such taxes and penalties. The CNG Committee shall have the discretion to take any actions to unilaterally modify the grant of the Options or to modify any exercise election by the Optionee in
order to comply with Section 409A of the Code. 

  

	 	(d)	Vesting. The shares of Stock covered by the Options shall vest as follows: 

 

	 	(i)	Eighty Three Thousand Three Hundred Thirty-three (83,333) Option shares shall vest in full on the date hereof; 

 

	 	(ii)	Eighty Three Thousand Three Hundred Thirty-three (83,333) Option shares shall vest in full on December 14, 2012; and 

 

	 	(iii)	Eighty Three Thousand Three Hundred Thirty-four (83,334) Option shares shall vest in full on December 14, 2013. 

 

	 	(e)	Adjustments Upon Change of Control. If a “Change of Control” (as defined below) occurs with respect to the Company, then the vesting periods of
the Options shall immediately be accelerated in full and the Optionee shall have the immediate, fully vested right to purchase, receive and/or own without risk of forfeiture any and all Stock that is the subject of the Options on the terms and
conditions set forth in this Agreement. 

 The term “Change of Control” shall mean the occurrence of any
of the following events: 
 (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (“Exchange Act”) (other than the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any company owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their ownership of the Stock of the Company), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),

  
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directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such person any securities acquired directly from the Company or its affiliates)
representing more than 15% of the combined voting power of the Company’s then outstanding voting securities; provided, however, a Change of Control shall not be deemed to occur solely because such person acquired beneficial
ownership of more than 15% of the combined voting power of the Company’s then outstanding voting securities as a result of the acquisition of voting securities by the Company, which by reducing the number of voting securities outstanding,
increases the proportional number of shares beneficially owned by such person, provided that if a Change of Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, and after
such share acquisition by the Company, such person becomes the beneficial owner of any additional voting securities which increases the percentage of the then outstanding voting securities beneficially owned by such person, then a Change of Control
shall occur; 
 (ii) During any period of twenty-four (24) consecutive months (not including any period
prior to the Grant Date), individuals who at the beginning of such period constitute the Board and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in
subsection (i), (iii) or (iv) of this Section 2(e) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in
office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority of the Board; 

(iii) Upon consummation of a merger, consolidation or reorganization of the Company with any other corporation, other than
a merger, consolidation or reorganization which would result in the stockholders of the Company immediately before such merger, consolidation or reorganization, owning, directly or indirectly immediately following such merger, consolidation or
reorganization, at least 60% of the combined voting power of the voting securities of the Company or such surviving entity outstanding in immediately after such merger, consolidation or reorganization in substantially the same proportion as their
ownership of the voting securities immediately before such merger, consolidation, or reorganization; or 
 (iv)
The stockholders of the Company approve a plan of complete liquidation of the Company or upon consummation of a sale or disposition by the Company of all or substantially all of the Company’s assets. 

 

	 	(f)	 Adjustments Upon Change in Capitalization. Any adjustment to the number and class of shares of Stock subject to the Options and to the
exercise price of the Options in the event of changes in the outstanding Stock by 

  
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reasons of any stock dividend, split-up, recapitalization, rights offering, combination or exchange of shares, merger, consolidation, acquisition of property or stock, separation, reorganization,
divisive reorganization or liquidation and the like, shall be appropriately made by the CNG Committee, whose determination of such adjustment shall be conclusive. 

 

	 	(g)	Transfer of Options. Subject to Section 2(a)(iii), the Options shall be transferable only to members of the Optionee’s immediate family. For
purposes of this Section 2(g), the Optionee’s immediate family includes, and only includes, the parents, spouse and children of the Optionee. 

  

	 	(h)	Compliance with Laws and Regulations. The Options evidenced hereby are subject to restrictions imposed at any time on the exercise or delivery of shares
in violation of the By-Laws of the Company or of any law or governmental regulation that the Company may find to be valid and applicable. 

  

	3.	Option Data. 

  

			
	 Optionee’s Name:
	 	Blaine K. Spies
		
	 Optionee’s Address:
	 	3234 South Newcomb St.
		 	Unit 5-201
		 	Lakewood, Colorado 80227
		
	 Number of shares of Stock Subject to this Option:
	 	250,000 shares
		
	 Grant Date:
	 	December 14, 2011
		
	 Exercise Price Per Share:
	 	$1.07 per share
		
	 Expiration Date:
	 	December 14, 2021

  

	4.	Securities Law Matters. 

  

	 	(a)	 Restricted Securities. The Optionee acknowledges and understands that, unless the issuance of Stock that may be acquired upon exercise of
the Options is registered on Form S-8 before any exercise of the Options, the Stock acquired upon exercise of the Options will be characterized as “restricted securities” under the federal securities laws, as the shares will be acquired
from the Company in a transaction not involving a public offering, and that under such laws and applicable regulations the Stock may not be resold without registration under the Securities Act, except in certain limited circumstances. The Optionee
represents to the Company that he is either familiar with Rule 144 promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the

  
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Securities Act, or has sought counsel from someone with such knowledge. The Optionee acknowledges that if an exemption from registration or qualification is available, it may be conditioned on
various requirements, including, but not limited to, the time and manner of sale, the holding period for the Stock, and on requirements relating to the Company that are outside the Optionee’s control, and which the Company is under no
obligation to satisfy and may not be able to satisfy. Prior to any transfer of the Stock by the Optionee, the Company retains the right to request and receive from the Optionee an opinion of counsel that the proposed transfer may be completed in
compliance with all applicable federal and state securities laws. 

  

	 	(b)	Registration Rights. The Company agrees that it will make commercially reasonable, good faith efforts to include the Optionee and any shares of Stock that
may be acquired by the Optionee under this Agreement as a selling stockholder in any appropriate registration statements (e.g., Form S-8 or Form S-3) filed by the Company from time to time. Notwithstanding the foregoing, the Optionee
acknowledges that nothing in this Agreement will be construed as granting a demand registration right to the Optionee. 

  

	 	(c)	Investment Intent at Grant. The Optionee represents and agrees that the Stock to be acquired upon exercising the Options will be acquired for investment
purposes only, and not with a view to the sale or distribution thereof. 

  

	 	(d)	Investment Intent at Exercise. In the event that the sale of the Stock issued upon exercise of the Options is not registered under the Securities Act but
an exemption is available which requires an investment representation or other representation, the Optionee shall represent and agree at the time of exercise that the Stock being acquired upon exercising the Options is being acquired for investment,
and not with a view to the sale or distribution thereof, and shall make such other representations as are deemed necessary or appropriate by the Company and its counsel. 

 

	 	(e)	Legends. All certificates evidencing the shares of Stock purchased under this Agreement in an unregistered transaction shall bear the following legend
(and such other restrictive legends as are required or deemed advisable under the provisions of any applicable law): 

 “THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, ASSIGNED,
PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH LAWS COVERING SUCH TRANSFER OR AN OPINION OF COUNSEL SATISFACTORY 

  
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TO THE ISSUER THAT REGISTRATION UNDER SUCH LAWS IS NOT REQUIRED.” 
  

	 	(f)	Removal of Legends. If, in the opinion of the Company and its counsel, any legend placed on a stock certificate representing shares of Stock sold under
this Agreement is no longer required, the holder of such certificate shall be entitled to exchange such certificate for a certificate representing the same number of shares but without such legend. 

 

	 	(g)	Accredited Investor. By checking the appropriate category(ies) below, the Optionee hereby represents to the Company that he is an “accredited
investor” as that term is defined in Rule 501(a) of Regulation D, promulgated under the Securities Act. 

  

	 	 ̈	The Optionee is a natural person whose individual net worth, or joint net worth with the Optionee’s spouse, exclusive of the Optionee’s personal
residence, at the time of purchase, exceeds One Million Dollars ($1,000,000). 

  

	 	x	The Optionee is a natural person who had an individual income in excess of Two Hundred Thousand Dollars ($200,000) in each of the two (2) most recent years or
joint income with the Optionee’s spouse in excess of Three Hundred Thousand Dollars ($300,000) in each of those years and has a reasonable expectation of reaching the same income level in the current year. 

 

	 	 ̈	Any direct or executive officer of the Company. 

  

	 	 ̈	The Optionee is not an accredited investor. 

  

	 	(h)	Disclosure. The Optionee hereby represents to the Company that, at a reasonable time prior to acquisition of the Options, (i) the Company has
provided the Optionee with an opportunity to ask questions and receive answers regarding the terms and conditions of this Agreement and to obtain any additional information that is necessary to verify the accuracy of any information provided by the
Company, and (ii) the Company has provided to the Optionee the following: 

  

	 	(A)	The Company’s most recent Proxy Statement in connection with the 2011 Annual Shareholders’ Meeting; 

 

	 	(B)	The Company’s most recent Form 10-K for the fiscal year ended June 30, 2011; 

  
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	 	(C)	The Company’s Form 10-Q for the quarter ended September 30, 2011; 

 

	 	(D)	The Company’s current reports on Form 8-K filed on or after September 20, 2011 (i.e., the date of filing of the Form 10-K); and

  

	 	(E)	A copy of the Company’s prospectus dated November 17, 2011. 

  

	 	(i)	Administration. Any determination by the Company and its counsel in connection with any of the matters set forth in this Section 4 shall be
conclusive and binding on the Optionee and all other persons. 

  

	5.	No Employment or Service Rights. Nothing in this Agreement shall confer on the Optionee any right to continue in any capacity his relationship with the
Company or interfere in any way with the right of the Company to terminate such relationship at any time, with or without cause. 

  

	6.	Notice. Any notice required by the terms of this Agreement shall be given in writing. It shall be deemed effective upon (i) personal delivery,
(ii) deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid or (iii) deposit with Federal Express Corporation, with shipping charges prepaid. Notice shall be addressed to the Company
at its principal executive office and to the Optionee at the address that he provided to the Company in Section 3 or any subsequent change of address provided to the Company accordance with this Section 6. 

 

	7.	Miscellaneous. This Agreement (a) contains the entire agreement and understanding of the parties relating to the subject matter hereof and supersedes
any prior agreements or understandings with respect thereto; and (b) shall be binding upon and inure to the benefit of the Company, its successors and assigns and the Optionee, his heirs, devisees and legal representatives. In the event of the
Optionee’s death or a judicial determination of his incompetence, reference in this Agreement to the Optionee shall be deemed to refer to his legal representative, heirs or devisees, as the case may be. This Agreement shall be governed by the
laws of the State of Delaware. 

 * * * * * * 

  
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 IN WITNESS WHEREOF, the
Company has caused this instrument to be executed by its authorized officer, as of the date identified below. 
  

							
	Agreed to:	 		 	MAGELLAN PETROLEUM CORPORATION
				
	/s/ Blaine K. Spies	 		 	By:	 	/s/ J. Thomas Wilson
	Optionee: Blaine K. Spies	 		 		 	 Name: J. Thomas Wilson

Title: President and CEO

 Date: December 14, 2011 

  
 9EX-10.1

 Exhibit 10.1 
 DRESSER-RAND GROUP INC. 
 STANDARD TERMS AND CONDITIONS FOR

 EMPLOYEE NONQUALIFIED STOCK OPTIONS 
 These Standard Terms and Conditions apply to any Options granted under the Dresser-Rand Group Inc. 2008 Stock Incentive Plan, as amended (the “Plan”), on or after January 1, 2012, which are
identified as nonqualified stock options and are evidenced by a Grant Notice or an action of the Committee that specifically refers to these Standard Terms and Conditions. 

 

	1.	 TERMS OF OPTION 

 Dresser-Rand Group Inc. (the “Company”) has granted to the Participant named in the Grant Notice provided to said the Participant herewith (the “Grant Notice”) a nonqualified stock
option (the “Option”) to purchase up to the number of shares of the Company’s common stock (the “Common Stock”), set forth in the Grant Notice, at the purchase price per share and upon the other terms and subject to the
conditions set forth in the Grant Notice, these Standard Terms and Conditions (as amended from time to time), and the Plan. For purposes of these Standard Terms and Conditions and the Grant Notice, any reference to the Company shall include a
reference to any Subsidiary. Capitalized terms not defined in this document have the meaning given to them in Plan or Grant Notice. 
  

	2.	 NON-QUALIFIED STOCK OPTION 

 The Option is not intended to be an incentive stock option under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”) and will be interpreted accordingly. 

 

	3.	 EXERCISE OF OPTION 

 The Option shall not be exercisable as of the Grant Date set forth in the Grant Notice. After the Grant Date, to the extent not previously exercised, and subject to termination or acceleration as provided
in these Standard Terms and Conditions and the Plan, the Option shall be exercisable to the extent it becomes vested, as described in the Grant Notice, to purchase up to that number of shares of Common Stock as set forth in the Grant Notice provided
that (except as set forth in Section 4.A below) the Participant remains employed with the Company and does not experience a termination of employment. The vesting period and/or exercisability of an Option may be adjusted by the Committee to
reflect the decreased level of employment during any period in which the Participant is on an approved leave of absence or is employed on a less than full time basis, provided that the Committee may take into consideration any accounting
consequences to the Company. 
 To exercise the Option (or any part thereof), the Participant shall deliver to
the Company a “Notice of Exercise” on a form either provided by the Company or follow a mechanism established by the Company with the broker administering the Option, specifying the 

	 	 
number of whole shares of Common Stock the Participant wishes to purchase and how the Participant’s shares of Common Stock should be registered (in the Participant’s name only or in the
Participant’s and the Participant’s spouse’s names as community property or as joint tenants with right of survivorship). 

 The exercise price (the “Exercise Price”) of the Option is set forth in the Grant Notice. The Company shall not be obligated to issue any shares of Common Stock until the Participant shall have
paid the total Exercise Price for that number of shares of Common Stock. The exercise price of may be paid in Common Stock, cash or a combination thereof, including an irrevocable commitment by a broker to pay over such amount from a sale of the
Common Stock issuable under the Option, the delivery of previously owned Common Stock and withholding of Common Stock deliverable upon exercise. 
 Fractional shares may not be exercised. Shares of Common Stock will be issued as soon as practical after exercise. Notwithstanding the above, the Company shall not be obligated to deliver any shares of
Common Stock during any period when the Company determines that the exercisability of the Option or the delivery of shares hereunder would violate any federal, state or other applicable laws. 

 

	4.	 EXPIRATION OF OPTION 

 Except as provided in this Section 4, the Option shall expire and cease to be exercisable as of the Expiration Date set forth in the Grant Notice. 

 

	 	A.	 If the Participant’s employment terminates by reason of Retirement (as defined in Section 14.G below), the Participant (or the
Participant’s estate, beneficiary or legal representative), subject to Section 9, may exercise the Option to the extent vested or exercisable until the Expiration Date. Upon Retirement, the unvested portion of the Option shall continue to
vest under the schedule described in the Grant Notice; provided, however, that if the Participant’s Retirement is less than twelve (12) months after the Grant Date, only the following portion of the unvested Option shall continue to vest
under the schedule described in the Grant Notice: (x) the number of then-unvested Options granted hereunder, (y) multiplied by a fraction, (I) the numerator of which is the number of full days from the Grant Date through the date of
Retirement, and (II) the denominator of which is 365. The remaining unvested portion of the Option shall be forfeited and canceled as of the date of such Retirement. 

 

	 	B.	 If the Participant’s employment terminates by reason of death or Disability, the Participant (with Participant’s estate, beneficiary or
legal representative, may exercise the Option (regardless of whether then vested or exercisable) until the earlier of (i) the twelve month anniversary of the date of such termination and (ii) the Expiration Date.

  
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	 	C.	 If the Participant’s employment terminates for any reason other than death, Disability, Cause or Retirement, the Participant may exercise any
Options that are vested and exercisable at the time of such termination of employment until the earlier of (A) the 90-day anniversary of the date of such termination of employment and (B) the Expiration Date. Any portion of the Option that
is not vested and exercisable at the time of such a termination of employment shall be forfeited and canceled as of the date of termination of employment. 

 

	 	D.	 If the Participant’s employment is terminated for Cause, the entire Option, whether or not then vested and exercisable, shall be immediately
forfeited and canceled as of the date of such termination of employment. 

  

	5.	 CHANGE IN CONTROL 

 [For CEO’s Form: Unless otherwise provided in an employment, severance or other agreement between the Company and the Participant, the] [For all others: The] Options shall be treated as
follows if there is a Change in Control: 
  

	 	A.	 If the Options are not continued, assumed or substituted by the Participant’s employer (or an Affiliate of such employer) that engages the
Participant immediately following the Change in Control, the entire Option shall fully vest and become exercisable immediately prior to the occurrence of the Change in Control. Alternatively, the Committee may provide for a cash payment equal to the
excess (if any) of the Change in Control Price over the Exercise Price in settlement of the Options (including, without limitation, those Options that vest pursuant to this Section 5.A). 

 

	 	B.	 If the Options are continued, assumed or substituted by the Participant’s employer (or an Affiliate of such employer) that engages the
Participant immediately following the Change in Control, the Options shall continue to vest and become exercisable as provided in the Grant Notice; provided, however, that if the Participant’s employment is terminated other than for Serious
Misconduct, or the Participant resigns for Good Reason, in either case within twelve months following the Change in Control, the Option shall fully vest and become exercisable upon such termination or resignation. 

For purposes hereof, the Options shall be considered “assumed” if, following the Change in Control, the Option
confers the right to purchase or receive, for each share of Common Stock subject to the Option immediately prior to the Change in Control, (i) the consideration (whether stock, cash, or other securities or property) received in the Change in
Control by holders of Common Stock for each share held on the effective date of the Change in Control in excess of the Exercise Price, or (ii) common stock of the successor to the Company of substantially equivalent economic value to the
consideration received in the Change in Control by holders of Common Stock for each share held on the effective date of the Change in Control (as determined by the Committee in its discretion) in excess of the Exercise Price. The Options will be
considered “substituted for” if the successor or acquiror replaces the Options with equity awards of substantially equivalent economic value measured as of the date the Change in Control occurs (as determined by the Committee in its
discretion). 

  
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	6.	 RESTRICTIONS ON RESALES OF SHARES ACQUIRED PURSUANT TO OPTION EXERCISE 

The Company may impose such restrictions, conditions or limitations as it determines appropriate as to the timing and
manner of any resales by the Participant or other subsequent transfers by the Participant of any shares of Common Stock issued as a result of the exercise of the Option, including without limitation (a) restrictions under an insider trading
policy, (b) restrictions designed to delay and/or coordinate the timing and manner of sales by the Participant and other optionholders and (c) restrictions as to the use of a specified brokerage firm for such resales or other transfers.

  

	7.	 INCOME TAXES 

 The Company shall not deliver shares of Common Stock in respect of the exercise of any Option unless and until the Participant has made arrangements satisfactory to the Committee to satisfy applicable
withholding tax obligations. Unless otherwise permitted by the Committee, withholding shall be effected by withholding Common Stock issuable in connection with the exercise of the Option. The Participant acknowledges that the Company shall have the
right to deduct any taxes required to be withheld by law in connection with the exercise of the Options from any amounts payable by it to the Participant (including, without limitation, future cash wages). 

 

	8.	 NON-TRANSFERABILITY OF OPTION 

 The Participant may not assign or transfer the Option to anyone other than by will or the laws of descent and distribution and, subject to Section 4.B, the Option shall be exercisable only by the
Participant during his or her lifetime. The Company may cancel the Participant’s Option if the Participant attempts to assign or transfer it in a manner inconsistent with this Section 8. 

 

	9.	 RESTRICTED ACTIVITIES 

  

	 	A.	 By accepting the Option, the Participant acknowledges and agrees that (i) the Company is engaged in a highly competitive business;
(ii) the Company has expended considerable time and resources to develop goodwill with its customers, vendors, and others, and to create, protect, and exploit its Confidential Information (as defined in Section 14.B below); (iii) the
Company must continue to prevent the dilution of its goodwill and unauthorized use or disclosure of its Confidential Information to avoid irreparable harm to its legitimate business interests; (iv) the Participant’s participation in or
direction of the Company’s day-to-day operations and strategic planning are an integral part of the Company’s continued success and goodwill; (v) in the period between the Participant’s notice to the Committee of the
Participant’s Retirement and the date of the Participant’s Retirement (the “Transition Period”), the Participant will participate in identifying a successor, transitioning his or her responsibilities to and training a successor,
and engaging in other transition activities (the “Transition Process”); (vi) given 

  
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the Participant’s position and responsibilities, including during the Transition Period, he or she necessarily will be relying on and/or creating Confidential Information that belongs to the
Company and enhances the Company’s goodwill; during the Transition Process will be transmitting Confidential Information to his or her successor; and in carrying out his or her responsibilities, including during the Transition Process, the
Participant in turn will be relying on the Company’s goodwill and the disclosure by the Company to him or her of Confidential Information; (vii) the Participant will have access to Confidential Information, including concerning the
Transition Process, that could be used by any competitor of the Company in a manner that would irreparably harm the Company’s competitive position in the marketplace and dilute its goodwill; (viii) the Participant’s engaging in any of
the Restricted Activities during the Restriction Period would result in the inevitable disclosure or use of Confidential Information for the Competitor’s benefit or to the detriment of the Company; (ix) the Participant will return to the
Company upon Retirement all the Confidential Information, in whatever form or media and all copies thereof, in his or her possession, custody, or control; (x) by giving advance notice of his or her Retirement, the Participant represents that he
or she will not engage in the Restricted Activities; (xi) the Company is relying on such representation in providing the Participant continuing access to Confidential Information and authorizing him or her to engage in the Transition Process
and other activities that will create new and additional Confidential Information during the Transition Period; and (xii) absent the Participant’s agreement to this Section 9, the Company would not authorize the Participant to
participate in the Transition Process and engage in other activities that will create new and additional Confidential Information in an unfettered fashion and would not provide for the extended exercisability of the Option (regardless of whether
then vested or exercisable) upon Retirement as provided for in Section 4.A. 

  

	 	B.	 The Company, by granting the Option, and the Participant, by accepting the Option, thus acknowledge and agree that during the remaining term of the
Participant’s employment with the Company, including the Transition Period, the Participant (i) will receive Confidential Information that is unique, proprietary, and valuable to the Company; (ii) will rely on and/or create
Confidential Information that is unique, proprietary, and valuable to the Company; and (iii) will benefit, including without limitation by way of increased earnings and earning capacity, from the goodwill the Company has generated and from the
Confidential Information. 

  

	 	C.	 Accordingly, in consideration of the promises of the Company set out in Section 9.B, the Option, and the extended exercisability of the Option
(regardless of whether then vested or exercisable) upon Retirement as provided for in Section 4.A, the Participant agrees that: 

  

	 	1.	 He or she will not engage in any of the Restricted Activities (as defined in Section 14.E below) during the Restriction Period (as defined in
Section 14.F below); 

  
 5 

	 	2.	 If he or she engages in, or threatens to engage in, any of the Restricted Activities during the Restriction Period or otherwise violates his or her
obligations under this Section 9, then (x) the Option shall immediately expire and cease to be exercisable (regardless of whether then vested or exercisable) and (y) with respect to any Option (or any part thereof) that has been
exercised, the Participant shall immediately pay to the Company the excess of the fair market value of the Common Stock associated with the exercise of the Option (or any part therof) at the time of exercise over the Exercise Price;

  

	 	3.	 If he or she engages in, or threatens to engage in, any of the Restricted Activities during the Restriction Period or otherwise violates his or her
obligations under this Section 9, the Company would not have an adequate remedy at law and would be irreparably harmed and, accordingly, that the Company shall be entitled to equitable relief, including preliminary and permanent injunctions and
specific performance, in the event the Participant engages or threatens to engage in any of the Restricted Activities during the Restriction Period or otherwise violates his or her obligations under this Section 9, without the necessity of
posting any bond or proving special damages or irreparable injury; and 

  

	 	4.	 Neither Section 9.C.2 nor Section 9.C.3 constitute the Company’s exclusive remedy for a breach or threatened breach of the
Participant’s obligations under this Section 9, but shall be in addition to all other remedies available to the Company at law or equity. 

  

	 	D.	 By accepting the Option, the Participant acknowledges and agrees that (i) the restrictions contained in this Section 9 are ancillary to an
otherwise enforceable agreement, including without limitation the mutual promises and undertakings set out in Section 9.A and B, the Option, and the extended exercisability of the Option (regardless of whether then vested or exercisable) upon
Retirement as provided for in Section 4.A; (ii) the Company’s promises and undertakings set out in these Standard Terms and Conditions, and in particular Section 9.B, the Grant Notice, and the Plan, and the Participant’s
position and responsibilities with the Company and his or her promises and undertakings set out in Section 9.A, give rise to the Company’s interest in restricting the Participant’s post-Retirement activities; (iii) such
restrictions are designed to enforce the Participant’s promises and undertakings set out in Section 9.A and his or her common-law obligations and duties owed to the Company; (iv) the restrictions are reasonable and necessary, are
valid and enforceable, and do not impose a greater restraint than necessary to protect the Company’s goodwill, Confidential Information, and other legitimate business interests; (v) he or she will immediately notify the Company in writing
should he or she believe or be advised that the provisions of this Section 9 are not, or likely are not, valid and enforceable; (vi) he or she will not challenge the enforceability of this Section 9; (vii) absent the
Participant’s agreement to this Section 9, the Company would not authorize the Participant to participate in the Transition Process and engage in other activities that provide access to or create new and additional Confidential Information
in an unfettered fashion and would not provide for the extended exercisability of the Option (regardless of whether then vested or exercisable) upon Retirement as provided for in Section 4.A. 

  
 6 

	 	E.	 The provisions of Section 4.A providing for the extended exercisability of all or a portion of the Option (regardless of whether then vested or
exercisable) upon Retirement and this Section 9 are mutually dependent and not severable, and the Participant acknowledges and agrees that the Company would not provide for the extended exercisability of the Option (regardless of whether then
vested or exercisable) upon Retirement as provided for in Section 4.A but for the Participant’s promises set out in and the enforceability of this Section 9. Accordingly, if Section 9 or any part of it is ever declared to be
illegal, invalid, or otherwise unenforceable in any respect by a court of competent jurisdiction, then the Participant agrees that (x) the Option shall immediately expire and cease to be exercisable (regardless of whether then vested or
exercisable) and (y) with respect to any Option (or any part thereof) that has been exercised, the Participant shall immediately pay to the Company the excess of the fair market value of the Common Stock associated with the exercise of the
Option (or any part therof) at the time of exercise over the Exercise Price; provided that if the scope of the restrictions in this Section 9 as to time, geography, or scope of activities are deemed by court of competent jurisdiction to exceed
the limitations permitted by applicable law, the Participant and the Company agree that the restrictions so deemed shall be, and are, automatically reformed to the maximum limitation permitted by such law. 

 

	10.	 THE PLAN AND OTHER AGREEMENTS 

In addition to these Terms and Conditions, the Option shall be subject to the terms of the Plan, which are incorporated
into these Standard Terms and Conditions by this reference. Capitalized terms not otherwise defined herein shall have the meaning set forth in the Plan. 
 The Grant Notice, these Standard Terms and Conditions and the Plan constitute the entire understanding between the Participant and the Company regarding the Option. Any prior agreements, commitments or
negotiations concerning the Option are superseded. 
  

	11.	 LIMITATION OF INTEREST IN SHARES SUBJECT TO OPTION 

Neither the Participant (individually or as a member of a group) nor any beneficiary or other person claiming under or
through the Participant shall have any right, title, interest, or privilege in or to any shares of Common Stock allocated or reserved for the purpose of the Plan or subject to the Grant Notice or these Standard Terms and Conditions except as to such
shares of Common Stock, if any, as shall have been issued to such person upon exercise of the Option or any part of it. Nothing in the Plan, in the Grant Notice, these Standard Terms and Conditions or any other instrument executed pursuant to the
Plan shall confer upon the Participant any right to continue in the Company’s employ or service nor limit in any way the Company’s right to terminate the Participant’s employment at any time for any reason. 

  
 7 

	12.	 GENERAL 

 Except as provided for in Section 9.E, in the event that any provision of these Standard Terms and Conditions is declared to be illegal, invalid or otherwise unenforceable by a court of competent
jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal, valid and enforceable, or otherwise deleted, and the remainder of these Standard Terms and Conditions shall not be affected except to the extent
necessary to reform or delete such illegal, invalid or unenforceable provision. 
 The headings preceding the
text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a part of these Standard Terms and Conditions, nor shall they affect its meaning, construction or effect. 

These Standard Terms and Conditions shall inure to the benefit of and be binding upon the parties hereto and their
respective permitted heirs, beneficiaries, successors and assigns. 
 These Standard Terms and Conditions shall
be construed in accordance with and governed by the laws of the State of Delaware, without regard to principles of conflicts of law. 
 All questions arising under the Plan or under these Standard Terms and Conditions shall be decided by the Committee in its total and absolute discretion. 

 

	13.	 ELECTRONIC DELIVERY 

 By executing the Grant Notice, the Participant hereby consents to the delivery of information (including, without limitation, information required to be delivered to the Participant pursuant to applicable
securities laws) regarding the Company and the Subsidiaries, the Plan, the Options and the Common Stock via Company web site or other electronic delivery. 
  

	14.	 DEFINITIONS 

 For purposes hereof, the following terms shall have the following meanings: 
  

	 	A.	 “Competitor” shall mean any person or entity that carries on business activities in competition with the activities of the Company,
including but not limited to (i) suppliers of rotating equipment, services and solutions for applications in the oil, gas, petrochemical and process industries including for oil and gas production; high-pressure gas injection, gas lift and
other applications for enhanced oil recovery; natural gas production and processing; gas liquefaction; gas gathering, transmission and storage; hydrogen, wet and coker gas, synthesis gas, carbon dioxide and other applications for the refining,
fertilizer and petrochemical markets; (ii) several applications for the armed forces; 

  
 8 

	 	 
(iii) applications for general industrial markets such as paper, steel, sugar, and distributed and independent power generation; (iv) competing environmental solutions such as compressed air
energy storage, combined heat and power, air separation, bio fuels, and wave or wind energy or (v) servicing the Company’s installed base of equipment, and the installed base of the Company’s class of equipment of other suppliers
through the provision of parts, repairs, overhauls, operation and maintenance, upgrades, revamps, applied technology solutions, coatings, field services, technical support and other extended services. The term “Competitor” specifically
includes but is not limited to the centrifugal turbo and reciprocating compressor, steam and gas turbine, rotating machinery, related aftermarket parts and services (including repairs, revamps, re-rates, upgrades, applied technology, overhauls,
remanufacturing, installation and start-up) and other competing businesses of (x) GE Oil & Gas/Nuovo Pignone, Siemens (including TurboCare), Solar Turbines, Inc., Rolls-Royce Group plc, Elliott Company, General Electric, Alstom,
Mitsubishi Heavy Industries, Hitachi, MAN Turbo, Hickham USA, Sulzer Turbo Services, Wood Group, Burckhardt Compression, Neuman & Esser Group, Ariel Corp., Thomassen Mitsui & Co., Ltd., Ebara, Shin Nippon Machinery Co. Ltd.,
Caterpillar Inc., Solar, Hoerbiger, or, if those corporate names are not formally correct, the businesses commonly referred to by those names; and (y) the successors to, assigns of, and affiliates of the persons or entities described in clause
(x). 

  

	 	B.	 “Confidential Information” shall mean, without limitation, all documents or information, in whatever form or medium, or consisting of
knowledge or “know-how” whether or not recorded in any medium, concerning or evidencing sales; costs; pricing; strategies; forecasts and long range plans; financial and tax information; personnel information (including without limitation
compensation, other terms of employment, or performance other than as concerns solely the Participant); business, marketing and operational projections, plans, and opportunities; and customer, vendor, and supplier information; but excluding any such
information that is or becomes generally available to the public other than as a result of any unauthorized disclosure or breach of duty by the Participant. 

 

	 	C.	 “Good Reason” shall mean the Participant’s resignation from employment from the Company or its successor within sixty (60) days
following the occurrence of (i) a material reduction in the Participant’s base salary; (ii) a material adverse change in the Participant’s responsibilities; or (iii) a required relocation of the Participant’s principal
place of employment by more than fifty (50) miles from its location as in effect immediately prior to the Change in Control; provided, that the Participant shall have provided written notice to the Company or its successor of his or her
intention to resign for Good Reason and the grounds therefor within thirty (30) days following the occurrence of the event constituting Good Reason, and the Company shall have failed to cure such event within thirty (30) days of receiving
such notice. 

  
 9 

	 	D.	 “Noncompetition Area” shall mean the following geographic areas to the extent the Participant’s duties and responsibilities for the
Company take or took place anywhere in or are or were directed at any part of: (i) any foreign country in which the Company has provided, sold, or installed its services, products, or systems or has definitive plans to provide, sell, or install
its services, products, or systems during the Participant’s employment by the Company; and (ii) any state or territory of the United States of America. 

 

	 	E.	 “Restricted Activities” means: 

  

	 	1.	 The Participant, whether on his or her own behalf or on behalf of any other individual, partnership, firm, corporation, or business organization,
either directly or indirectly soliciting, inducing, persuading, or enticing, or assisting another to solicit, induce, persuade, or entice, any person who is then employed by or otherwise engaged to perform services for the Company, or any person who
at the time of the Participant’s conduct had been employed by the Company within the previous 12 months, to leave that employment or cease performing those services; 

 

	 	2.	 The Participant, whether on his or her own behalf or on behalf of any other individual, partnership, firm, corporation, or business organization,
either directly or indirectly soliciting, inducing, persuading, or enticing, or assisting another to solicit, induce, persuade, or entice, any person or entity who is then a customer, supplier, or vendor of the Company to cease being a customer,
supplier, or vendor of the Company or to divert all or any part of such person’s or entity’s business from the Company; and 

  

	 	3.	 The Participant, whether on his or her own behalf or on behalf of any other individual, partnership, firm, corporation, or business organization,
either directly or indirectly soliciting, inducing, persuading, or enticing, or assisting another to solicit, induce, persuade, or entice, any person or entity who is a potential customer, supplier, or vendor of the Company, or at the time of the
Participant’s employment was a potential customer, supplier, or vendor of the Company within the previous 12 months, not to become a customer, supplier, or vendor of the Company or to divert all or any part of such person’s or
entity’s business from the Company; and 

  

	 	4.	 The Participant’s association directly or indirectly, as an employee, officer, director, agent, partner, stockholder, owner, member,
representative, financial contributor, or consultant, with any Competitor. 

 With respect to
the post-Retirement Restriction Period, the Restricted Activities in E.2 and E.3 extend only to a customer, supplier, or vendor or prospective customer, supplier, or vendor with respect to whom or whose business the Participant has or had
Confidential Information (including without limitation knowledge of or participation in a bid, proposal, or offer); and the Restricted Activities in E.4 extend only to a (x) the performance by the Participant, directly or indirectly, of the
same or similar activities the Participant performed for the Company prior to Retirement or such other activities that by their nature are likely 

  
 10 

	 	 
to lead to the disclosure of Confidential Information; and (y) that take place anywhere in, or are directed at any part of, the Noncompetition Area. The “Restricted Activities” do
not extend to the Participant’s investment in stock or other securities of a Competitor listed on a national securities exchange or actively traded in the over-the-counter market if he or she and the members of his or her immediate family do
not, directly or indirectly, hold more than a total of 5% of all such shares of stock or other securities issued and outstanding. 

  

	 	F.	 “Restriction Period” shall mean the period of the Participant’s employment by the Company and continuing through the date that is
three years after the Participant’s Retirement. 

  

	 	G.	 “Retirement” shall mean the Participant’s voluntary termination of employment or other service from the Company after the Participant
has attained age sixty-two and completed at least ten years of continuous service with the Company as of the date of termination or has attained age sixty-five and completed at least five years of continuous service with the Company as of the date
of termination and in either event with the express intent not to engage in any of the Restricted Activities after termination, provided that the Participant has provided the Committee at least one year’s advance notice of such retirement.

  

	 	H.	 “Serious Misconduct” shall mean the occurrence of any of the following: (i) the material failure or refusal by the Participant to
perform his or her duties to the Company or its successor (including, without limitation, the Participant’s inability to perform such duties as a result of alcohol or drug abuse, chronic alcoholism or drug addiction) or to devote substantially
all of his or her business time, attention and energies to the performance of his or her duties to the Company or its successor; (ii) any willful, intentional or grossly negligent act by the Participant having the effect of materially injuring
the interest, business or prospects of the Company or its successor or any of their Affiliates; (iii) the material violation or material failure by the Participant to comply with the Company’s or its successor’s material published
rules, regulations or policies, as in effect from time to time; (iv) the Participant’s conviction of a felony offense or conviction of a misdemeanor offense involving moral turpitude, fraud, theft or dishonesty; (v) any willful or
intentional, misappropriation or embezzlement of the property of the Company or its successor or any of their Affiliates (whether or not a misdemeanor or felony); or (vi) a material breach of Section 9 above by the Participant; provided,
however, that in the event that the Company or its successor determines to terminate the Participant’s employment pursuant to clauses (i), (iii) or (vi) of this definition of Serious Misconduct, such termination shall only become
effective if the Company or its successor shall first give the Participant written notice of such Serious Misconduct, which notice shall identify in reasonable detail the manner in which the Company or its successor believes Serious Misconduct to
exist and indicates the steps required to cure such Serious Misconduct, if curable, and the Participant shall fail within thirty (30) days of such notice to substantially remedy or correct the same. 

  
 11

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