Document:

exv10w3

	 	 	 	 	 

Exhibit 10.3

FORM OF EXECUTIVE

LONG-TERM INCENTIVE

PERFORMANCE UNIT AGREEMENT

(TSR Based)

     AGREEMENT made as of the ____ day of ____________, 20__ between GLOBAL INDUSTRIES, LTD., a
Louisiana corporation (the “Company”), and ____________________ (“Participant”).

     To carry out the purposes of the GLOBAL INDUSTRIES, LTD. 2005 STOCK INCENTIVE PLAN (the
“Plan”) and in consideration of services performed by Participant and the mutual agreements and
other matters set forth herein and in the Plan, the Company and the Participant hereby agree as
follows:

     1. Grant of Performance Units. The Company, pursuant to the Plan, has granted on
____________, 20__ (the “Date of Grant”), to Participant a target of ________ performance units
(each a “Performance Unit”). Each Performance Unit represents the right to receive an unrestricted
share (which need not be a whole number) of common stock, $0.01 par value per share, of the Company
(“Stock”) for each Performance Unit to the extent “earned” that shall be determined by the
Company’s Relative Total Shareholder Return (“TSR”) during the Performance Period from January 1,
20__ through December 31, 20__ (the “Performance Period”). The TSR Earned Percentage shall be
determined in accordance with the schedule set forth on the attached Exhibit A. The Performance
Units granted to Participant under this Agreement shall be subject to all the terms, conditions and
restrictions set forth in the Plan and this Agreement, including future amendments to either, if
any, pursuant to the terms thereof. In the event of a change in the capitalization of the Company
due to a stock split, stock dividend, recapitalization, merger, consolidation, combination, or
similar event, the terms of this Agreement, including the number of Performance Units, may be
adjusted by the Committee to appropriately reflect such change.

     2. Earned Shares.

     (a) As soon as administratively practicable after the last day of the Performance
Period, the Committee shall determine for the Performance Period the TSR for the Company and
the Earned Percentage. The Committee’s determinations pursuant to the preceding sentence
shall be certified by the Committee in writing and delivered to the Secretary of the
Company. For purposes of the preceding sentence, written authorization of the Committee
Chairman or approved minutes of the Committee meeting in which the certification is made
shall be treated as a written certification. Shares of Stock shall be deemed earned under
this Paragraph 2(a) (to the extent the applicable performance goals are satisfied) on the
date the Committee takes the action set forth in the first sentence of this Paragraph 2(a)
(the “Certification Date”). At the time of such certification and based on the TSR for the
Performance Period, the number of shares of Stock that shall be earned shall be equal to the
number of Performance Units granted hereunder multiplied by the Earned Percentage (expressed
as a percentage rounded to two decimal places).

 

 

     (b) Notwithstanding any provision of Paragraph 2(a) to the contrary, no shares of Stock
shall be earned if Participant’s employment is terminated for any reason by the Company or
by Participant for any reason other than death, Disability or Retirement, in either case
before the Certification Date.

     (c) In the event of a Change in Control during the Performance Period if such Change of
Control occurs either (i) while Participant is in the employ of the Company or (ii) on or
after the date upon which Participant’s employment with the Company terminated by reason of
Retirement, death or Disability or by the Company other than a Termination for Cause, one
share of Stock shall be earned for each Performance Unit as of the effective date of such
Change in Control and the provisions of Section 2(a) shall cease to apply.

     (d) In the event of termination of Participant’s employment by reason of Retirement,
death or Disability and subject to the provisions of Paragraph 2(c), the number of shares of
Stock that shall be earned on the Certification Date shall equal the total number of shares
of Stock that would be earned as provided in Paragraph 2(a) if Participant was still
employed on the Certification Date multiplied by the portion (expressed as a percentage
rounded to two decimal places) of the Performance Period during which Participant was an
employee of the Company.

     3. Stock Issuance.

     (a) The Company shall cause to be issued certificates representing any shares of Stock
earned hereunder in the name of Participant (or the estate or beneficiary of Participant in
the event of Participant’s prior death) as promptly as practicable after the Certification
Date, but in no event later than March 15th of the calendar year after the calendar year in
which the Performance Period ends; provided however, that, if the shares of Stock are earned
pursuant to Paragraph 2(c), then the certificates shall be issued on the effective date of
the Change in Control. No fraction of a share of Stock shall be issued by the Company under
this Agreement; rather, the total number of shares of Stock that would otherwise be issued
hereunder shall be rounded up to the next whole share of Stock. Unless and until a
certificate or certificates representing such shares of Stock shall have been issued by the
Company to Participant, Participant (or the estate or beneficiary of Participant in the
event of Participant’s prior death) shall not be or have any of the rights or privileges of
a shareholder of the Company with respect to shares of Stock that may be, or have been,
earned under this Agreement.

     (b) The Company has registered or intends to register for issuance under the Securities
Act of 1933, as amended (the “Act”), the shares of Stock that may be earned under this
Agreement, and intends to keep such registration effective until the Committee shall make
its determination under Paragraph 2(a). In the absence of such effective registration or an
available exemption from registration under the Act, issuance of shares of Stock earned
under this Agreement will be delayed until registration of such shares is effective or an
exemption from registration under the Act is available. The Company intends to use its
reasonable best efforts to insure that no delay will occur. If an exemption from
registration under the Act is available and necessary upon issuance of

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shares of Stock
earned hereunder, Participant (or the estate or beneficiary of Participant
in the event of Participant’s prior death), if requested by the Company to do so, will
execute and deliver to the Company in writing an agreement containing such provisions as the
Company may require to assure compliance with applicable securities laws.

     (c) Participant agrees that the shares of Stock acquired hereunder will not be sold or
otherwise disposed of in any manner that would constitute a violation of any applicable
securities laws. Participant also agrees that (i) the certificates representing the shares
of Stock earned under this Agreement may bear such legend or legends as the Administrator of
the Plan deems appropriate in order to assure compliance with applicable securities laws,
(ii) the Company may refuse to register the transfer of the share of Stock earned under this
Agreement on the transfer records of the Company if such proposed transfer would, in the
opinion of counsel satisfactory to the Company, constitute a violation of any applicable
securities law and (iii) the Company may give related instructions to its transfer agent, if
any, to stop registration of the transfer of the shares of Stock earned under this
Agreement.

     4. Withholding of Tax. To the extent the earning or issuance of Performance Units or
shares of Stock results in the receipt of compensation income or wages by Participant for federal,
state or local tax purposes, Participant shall deliver to the Company at the time of such receipt
such amount of money (or, with the consent of the Administrator, shares of Stock) as the Company
may require to meet all obligations under applicable tax laws or regulations, and if Participant
fails to do so, the Company is authorized to withhold from any cash or stock compensation then or
thereafter payable to Participant, including from the shares of Stock otherwise issuable under this
Agreement, any tax required to be withheld by reason thereof.

     5. Employment Relationship. Nothing contained in this Agreement or the Plan shall
interfere with or limit in any way the right of the Company to terminate the employment of
Participant, nor confer upon Participant any right to continued employment. For purposes of this
Agreement, Participant shall be considered to be an employee of the Company so long as Participant
remains an employee of either the Company, or a parent or subsidiary of the Company. Without
limiting the scope of the preceding sentence, it is expressly provided that Participant’s
employment with the Company shall be considered to have been terminated at the time the entity or
other organization that employs Participant ceases to be a parent or subsidiary of the Company
event shall not constitute a Termination for Cause. Subject to the preceding sentence, any
question as to whether and when there has been a termination of such employment, and whether such
event is a Termination for Cause, shall be determined by the Committee, and its determination shall
be final.

     6. Entire Agreement; Amendment. Except to the extent expressly provided otherwise in
any employment, severance or change of control agreement with Participant, this Agreement replaces
and merges all previous agreements and discussions relating to this award of Performance Units
between Participant and the Company and together with the Plan constitutes the entire agreement
between Participant and the Company with respect to the subject matter of this Agreement. This
Agreement may not be modified in any respect by any verbal statement, representation or agreement
made by any employee, officer, or representative of the Company. Except as provided below, any
modification of this Agreement shall be effective only if it is in

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writing and signed by both
Participant and an authorized officer of the Company. Notwithstanding anything in the Plan or this
Agreement to the contrary, if the Committee
determines that the provisions of Section 409A of the Code apply to this Agreement and that
the terms of this Agreement do not, in whole or in part, satisfy the requirements of such section,
then the Committee, in its sole discretion, may unilaterally modify this Agreement in such manner
as it deems appropriate to comply with such section and any regulations or guidance issued
thereunder.

     7. Notices. Any notices or other communications provided for in this Agreement shall
be sufficient if in writing. In the case of Participant, such notices or communications shall be
deemed effectively delivered if hand delivered to Participant at Participant’s principal place of
employment or if sent by registered or certified mail, return receipt requested, postage paid, to
Participant at the last address Participant has filed with the Company. In the case of the
Company, such notices or communications shall be effectively delivered if sent by registered or
certified mail to the Company at its principal executive offices.

     8. Interpretation. In the event of any conflict between the terms of this Agreement
and the Plan, the Plan shall control.

     9. Acknowledgments. Participant is not relying upon any written or oral statement or
representation of the Company, its affiliates, or any of its or their respective employees,
officers, directors, attorneys or agents (collectively, the “Company Parties”) regarding the tax
consequences associated with Participant’s execution of this Agreement, and in deciding to enter
into this Agreement, Participant is relying on his own judgment and the judgment of the
professionals of his choice with whom he has consulted. Participant hereby releases, acquits and
forever discharges the Company Parties from all actions, causes of actions, suits, debts,
obligations, liabilities, claims, damages, losses, costs and expenses of any nature whatsoever,
known or unknown, on account of, arising out of, or in any way related to the tax consequences
associated with Participant’s execution of this Agreement and his receipt of Performance Units or
shares of Stock hereunder.

     10. Certain Definitions. Wherever used in this Agreement, the following words and
phrases when capitalized will have the meanings ascribed below, unless the context clearly
indicates to the contrary, and all capitalized terms used in this Agreement, which are not defined
in this Agreement, will have the meanings set forth in the Plan.

     “Disability” means that, as a result of incapacity due to physical or mental illness, a
Participant has been absent from work for an extended period and has been determined to be
permanently and totally disabled by the Social Security Administration or under the terms of the
Company’s long-term disability plan.

     “Relative Total Shareholder Return” (“TSR”) means the total shareholder return (stock price
increases and decreases plus all dividends reinvested) for the common shares of the Company as
calculated from the first day of the Performance Period through and including the last day of the
Performance Period with the TSR of the Company compared to the TSR of each member of the Peer Group
during the Performance Period calculated using the same methodology.

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     “Peer Group” shall mean the thirteen (13) companies listed in the Company’s 2011 proxy
statement, excluding Pride International, who provide offshore services in the oil and gas
industry with whom the Company compares itself for compensation purposes as listed on the
attached Exhibit A.

     In the event any member of the Peer Group ceases to be an independent, publicly-traded
corporation prior to the end of the Performance Period, that company shall be excluded from the
calculation of TSR for purposes of determining relative performance under this Agreement. The
Committee shall have the discretion to name a replacement member of the Peer Group whose TSR during
the Performance Period shall be calculated using the same methodology as other companies in the
Peer Group.

     “GAAP” means United States generally accepted accounting principles, consistently applied.

     “Performance Period” means the ____-year period commencing on January 1, 20__ and concluding
on December 31, 20_.

     “Retirement”
means the termination of Participant’s employment with the consent of the Company
after at least ten years of service, not including service time with any company or entity acquired
by the Company prior to such acquisition.

     “Termination for Cause” means termination as a result of Participant’s gross negligence or
willful misconduct in the performance of his employment or Participant’s final conviction of a
misdemeanor involving moral turpitude or any felony.

     11. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
any successors to the Company and all persons lawfully claiming under Participant.

     12. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Texas.

     13. Section 409(A). To the extent that Code Section 409A applies to any Performance
Units granted under this Agreement, this Agreement shall be construed and interpreted to comply
with Code Section 409A, notwithstanding anything herein to the contrary, the required definitions
under 409A shall be used, and with respect to any shares of Stock to be issued on account of a
termination of employment of a Participant who is a “Specified Employee” within the meaning of Code
Section 409A at the time of such termination of employment, such shares shall not be issued until
the first business day which is six (6) months after the Participant’s termination of employment.
For the purposes of Code Section 409A to the extent it applies to the Performance Units under this
Agreement, a termination of employment under this Agreement shall mean a “separation of service”
within the meaning of Code Section 409A, Disability shall comply with the requirements of such term
in Section 1.409A-3(i)(4) of the final regulations, and an event under this Agreement will not
constitute a Change in Control during the Performance Period unless it is also a “change in the
ownership or effective control of” the Company, or a “change in the ownership of a substantial
portion of the assets” of the Company (in each case as determined under Section 409A(a)(2)(A)(v) of
the Code and final Treasury Regulations or other IRS guidance issued under Code Section 409A from
time to time).

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     IN WITNESS WHEREOF, the Company has executed this Agreement by its duly authorized officer,
and Participant has executed this Agreement, all as of the day and year first above written.

	 	 	 	 	 	 	 

	 	 	GLOBAL INDUSTRIES, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	PARTICIPANT	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 

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Exhibit A

PERFORMANCE UNIT AGREEMENT

(TSR BASED; MULTI-YEAR)

Performance Period

January 1, 20__ — December 31, 20__

Earned Percentage

Threshold TSR                     Target TSR                     Maximum TSR

___ Percentile                    
___
Percentile                    
___ Percentile

Peer Group Members1

	 	 	 

	•    Cal Dive International

	 	•    Seacor Holdings Inc.

	•    Gulfmark Offshore

	 	•    Superior Energy Services Inc.

	•    Helix Energy Solutions Group, Inc.

	 	•    Tetra Technologies, Inc.

	•    Hercules Offshore, Inc.

	 	•    Tidewater Inc.

	•    McDermott International, Inc.

	 	•    Trico Marine Services, Inc.

	•    Oceaneering International, Inc.

	 	•    Willbros Group, Inc.

	•    Rowan Companies, Inc.

	 	 

Calculation of Earned Percentage

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	A	 	B
	Number of Peers	 	13	 	12
	Peers + Global	 	14	 	13
	 	 	Global	 	Percentile	 	Earned	 	Global	 	Percentile	 	Earned
	 	 	Rank	 	Rank	 	%	 	Rank	 	Rank	 	%
	 
	 	 	1	 	 	 	100	%	 	 	200	%	 	 	1	 	 	 	100	%	 	 	200	%
	 
	 	 	2	 	 	 	92	%	 	 	200	%	 	 	2	 	 	 	92	%	 	 	200	%
	 
	 	 	3	 	 	 	85	%	 	 	187	%	 	 	3	 	 	 	83	%	 	 	183	%
	 
	 	 	4	 	 	 	77	%	 	 	167	%	 	 	4	 	 	 	75	%	 	 	163	%
	 
	 	 	5	 	 	 	69	%	 	 	148	%	 	 	5	 	 	 	67	%	 	 	142	%
	 
	 	 	6	 	 	 	62	%	 	 	129	%	 	 	6	 	 	 	58	%	 	 	121	%
	 
	 	 	7	 	 	 	54	%	 	 	110	%	 	 	7	 	 	 	50	%	 	 	100	%
	 
	 	 	8	 	 	 	46	%	 	 	90	%	 	 	8	 	 	 	42	%	 	 	79	%
	 
	 	 	9	 	 	 	38	%	 	 	65	%	 	 	9	 	 	 	33	%	 	 	50	%
	 
	 	 	10	 	 	 	31	%	 	 	42	%	 	 	10	 	 	 	25	%	 	 	25	%
	 
	 	 	11	 	 	 	23	%	 	 	0	%	 	 	11	 	 	 	17	%	 	 	0	%
	 
	 	 	12	 	 	 	15	%	 	 	0	%	 	 	12	 	 	 	8	%	 	 	0	%
	 
	 	 	13	 	 	 	8	%	 	 	0	%	 	 	13	 	 	 	0	%	 	 	0	%
	 
	 	 	14	 	 	 	0	%	 	 	0	%	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	1	 	As of February 22, 2011, the peer group of companies used for compensation
comparison purposes included thirteen companies (Pride International has been deleted due to its
planned acquisition). Assuming the peer group remains at thirteen through the end of the
Performance Period, Earned Percentage will be calculated using Column A, above. If the number of
peer companies is reduced, Earned Percentage will be calculated based on the number of companies in
the peer group at the end of the Performance Period. Column B is an example of the calculation
with a peer group of twelve.Exhibit 10.1

Exhibit 10.1

HUBBELL INCORPORATED

SENIOR EXECUTIVE INCENTIVE COMPENSATION PLAN

ARTICLE I

Purpose

The purpose of this Senior Executive Incentive Compensation Plan (the “Plan”) is to provide
incentive compensation to executive officers of Hubbell Incorporated (the “Company”) and its
subsidiaries, to motivate eligible executives toward even higher achievement and business results,
to tie their goals and interests to those of the Company and its stockholders and to enable the
Company to attract and retain highly qualified executives. The Plan is for the benefit of “covered
employees” as described below who are selected to become participants by the Committee (as defined
below).

ARTICLE II

Administration

2.1 The Compensation Committee of the Company’s Board of Directors consisting of not less
than two directors, each of whom shall qualify as an “outside director” as that term is defined
under Section 162(m) of the Code (the “Committee”), shall administer the Plan. The Committee shall
serve at the pleasure of the Board. If it is later determined that one or more members of the
Committee do not so qualify, actions taken by the Committee prior to such determination shall be
valid despite such failure to qualify. Any member of the Committee may resign at any time by notice
in writing mailed or delivered to the Secretary of the Company. Vacancies in the Committee shall be
filled by the Board.

2.2 The Committee shall administer the Plan under such rules, regulations and criteria as
it shall prescribe. Its decisions in the administration and interpretation of the Plan shall be
final as to all interested parties and shall be and constitute acts of the Company.

ARTICLE III

Eligibility and Participation

3.1 The persons eligible to participate in the Plan shall be those senior executive
officers who are, or, as determined in the discretion of the Committee, may become, “covered
employees” (as defined in Section 162(m) of the Internal Revenue Code of 1986, as amended, the
“Code”) of the Company for the applicable taxable year of the Company.

3.2 The Committee shall from time to time designate the employees eligible for
participation in the Plan. The persons so designated by the Committee are hereinafter called
“participants.”

ARTICLE IV

Determination of Incentive Payments

4.1 Participants are eligible to receive an incentive payment under the Plan upon the
attainment of objective performance goals (the “Performance Goals”) which are established by the
Committee and relate to one or more of the following financial, operational or other business
criteria with respect to the Company or any of its subsidiaries (the “Performance Criteria”): (i)
net earnings (either before or after one or more of the following: (A) interest, (B) taxes, (C)
depreciation and (D) amortization); (ii) economic value added (as determined by the Committee);
(iii) sales or revenue; (iv) net income (either before or after taxes); (v) operating earnings;
(vi) cash flow (including, but not limited to, operating cash flow and free cash flow); (vii)
return on capital; (viii) return on invested capital; (ix) return on shareholders’ equity; (x)
return on assets; (xi) shareholder return; (xii) return on sales; (xiii) gross or net profit
margin; (xiv) productivity; (xv) expense; (xvi) operating margin; (xvii) operating efficiency;
(xviii) customer satisfaction;

 

 

 

(xix) working capital efficiency; (xx) earnings per share; (xxi) price per share of the Company’s
common stock; and (xxii) market share, any of which may be measured either in absolute terms or as
compared to any incremental increase or as compared to results of a peer group or to market
performance indicators or indices. Depending on the Performance Criteria used to establish the
Performance Goals, the Performance Goals may be expressed in terms of overall Company performance
or the performance of a division, business unit, platform or an individual. The achievement of
each Performance Goal shall be determined in accordance with Generally Accepted Accounting
Principles in the United States, International Financial Reporting Standards or such other
accounting principles or standards as may apply to the Company’s financial statements under United
States federal securities laws from time to time (“Applicable Accounting Standards”).

4.2 On or before March 30 of each calendar year (each, a “Performance Period”), the
Committee shall establish the Performance Goals for that Performance Period and shall determine the
method by which a participant’s incentive payments hereunder shall be calculated for that
Performance Period, based on the attainment of such Performance Goals. Such method may include,
but shall not be limited to, determining a participant’s incentive payments by allocating to the
executive a designated percentage of the incentive compensation fund established each year under
Article III of the Company’s Incentive Compensation Plan to be payable upon attainment of the
applicable Performance Goals. Without limiting its authority hereunder, the Committee may condition
payment of a participant’s incentive payments on additional service-related criteria; e.g., that
the participant remain in the employ of the Company for the entire Performance Period.

4.3 After the end of the applicable Performance Period, the Committee shall certify in
writing whether the Performance Goals and any other material terms of the incentive payment have
been satisfied (such written certification may take the form of minutes of the Committee).
Notwithstanding the foregoing, such determinations shall in all events be made within the time
prescribed by, and otherwise in compliance with, Section 162(m) of the Code.

4.4 The Committee shall have the discretion, prior to making any incentive payment, to
decrease, but not increase, the incentive payment otherwise calculated pursuant to Section 4.1. In
no event shall the annual incentive payment to any participant exceed $5.0 million.

4.5 The Committee may, in its sole discretion, provide that one or more objectively
determinable adjustments shall be made to one or more of the Performance Goals. Such adjustments
may include one or more of the following: (i) items related to a change in accounting principle;
(ii) items relating to financing activities; (iii) expenses for restructuring or productivity
initiatives; (iv) other non-operating items; (v) items related to acquisitions; (vi) items
attributable to the business operations of any entity acquired by the Company during the
Performance Period; (vii) items related to the disposal of a business or segment of a business;
(viii) items related to discontinued operations that do not qualify as a segment of a business
under Applicable Accounting Standards; (ix) items attributable to any stock dividend, stock split,
combination or exchange of stock occurring during the Performance Period; (x) any other items of
significant income or expense which are determined to be appropriate adjustments; (xi) items
relating to unusual or extraordinary corporate transactions, events or developments, (xii) items
related to amortization of acquired intangible assets; (xiii) items that are outside the scope of
the Company’s core, on-going business activities; or (xiv) items relating to any other unusual or
nonrecurring events or changes in applicable laws, accounting principles or business conditions.

ARTICLE V

Method of Making Incentive Payments

Incentive payments awarded under the Plan shall be paid in cash. The amount of any incentive
payment to be made to a participant in cash shall be paid as soon as practicable (but not later
than six months) after the close of the fiscal year for which such incentive payment is awarded.

ARTICLE VI

General Provisions

6.1 Neither the establishment of the Plan nor the selection of any employee as a
participant shall give any participant any right to be retained in the employ of the Company or any
subsidiary of the Company, or any right
whatsoever under the Plan other than to receive incentive payments awarded by the Committee.

 

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6.2 The place of administration of the Plan shall be conclusively deemed to be within the
State of Connecticut, and the validity, construction, interpretation and effect of the Plan, its
rules and regulations and the rights of any and all participants having or claiming to have an
interest therein or thereunder shall be governed by and determined conclusively and solely in
accordance with the laws of the State of Connecticut, without regard to any conflicts of laws
provisions.

6.3 No member of the Board of Directors of the Company shall be liable to any person in
respect of the Plan for any act or omission of such member or of any other member or of any
officer, agent or employee of the Company.

6.4 This Plan shall not be deemed the exclusive method of providing incentive compensation
to a participant or any other employee of the Company or a subsidiary of the Company.

6.5 The Company or any subsidiary making a payment hereunder shall withhold therefrom such
amounts as may be required by federal, state or local law.

ARTICLE VII

Amendment, Suspension or Termination

The Board of Directors of the Company may from time to time amend, suspend or terminate, in
whole or in part, any or all of the provisions of the Plan, provided that (i) no such action shall
affect the rights of any participant or the operation of the Plan with respect to any payment to
which a participant may have become entitled, deferred or otherwise, prior to the effective date of
such action, and (ii) no amendment that requires shareholder approval in order for incentive
payments hereunder to be deductible under the Code may be made without approval of the shareholders
of the Company.

ARTICLE VIII

Effective Date of the Plan

The Plan shall become effective as of January 1, 2011, subject to approval by shareholders in
May, 2011. So long as the Plan shall not have been previously terminated by the Company, it shall
be resubmitted for approval by the Company’s shareholders in 2016, and every fifth year thereafter.
In addition, the Plan shall be resubmitted to the Company’s shareholders for approval as required
by Section 162(m) of the Code if it is amended in any way that changes the material terms of the
Plan’s Performance Goals, including by materially modifying the Performance Goals, increasing the
maximum incentive payment payable under the Plan or changing the Plan’s eligibility requirements.

 

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