SEC Contract Filing

Filing Date: 2016-03-03

Document Content:
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<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>d137591dex102.htm
<DESCRIPTION>EX-10.2
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<TITLE>EX-10.2</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.2 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>McDERMOTT INTERNATIONAL, INC. </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>Performance Unit Grant Agreement </U></B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(February 26, 2016) </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Compensation
Committee of the Board of Directors (the &#147;Committee&#148;) of McDermott International, Inc. (&#147;McDermott&#148; or the &#147;Company&#148;) has selected you to receive a grant of performance units (&#147;Performance Units&#148;) under the
2014 McDermott International, Inc. Long-Term Incentive Plan (the &#147;Plan&#148;) on February&nbsp;26, 2016 (the &#147;Date of Grant&#148;). The provisions of the Plan are incorporated herein by reference. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Any reference or definition contained in this Performance Unit Grant Agreement (this &#147;Agreement&#148;) shall, except as otherwise specified, be construed
in accordance with the terms and conditions of the Plan and all determinations and interpretations made by the Committee with regard to any question arising hereunder or under the Plan shall be binding and conclusive on you and your beneficiaries,
successors, assigns, estate or personal representatives. The term &#147;Company,&#148; as used in this Agreement with reference to employment or service, shall include subsidiaries of McDermott. Whenever the words &#147;you&#148; or &#147;your&#148;
are used in any provision of this Agreement under circumstances where the provision should logically be construed to apply to any beneficiary, successors, assigns, estate or personal representative to whom any rights under this Agreement may be
transferred by will or by the laws of descent and distribution, they shall be deemed to include any such person or estate. This Agreement shall be subject to the Plan and the Company&#146;s Clawback Policy, which is attached hereto as Exhibit A and
is incorporated herein by reference. Capitalized terms not defined in this Agreement but that are defined in the Plan shall have the respective meanings ascribed to such terms in the Plan. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>Performance Units </U></B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Grant of
Performance Units</U>. You have been awarded a grant of Performance Units shown on the Notice of Grant dated February&nbsp;26, 2016, which is incorporated herein by reference. Each Performance Unit represents a right to receive the value of one
Share on the Vesting Date (as set forth in the &#147;Vesting Requirements&#148; paragraph below), provided the applicable performance measures and vesting requirements set forth in this Agreement shall have been satisfied. No Shares or cash amounts
are awarded or issued to you hereunder on the Date of Grant. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Vesting Requirements</U>. Except as provided below, the Performance Units do not provide
you with any rights or interest therein until they become vested, if at all, on the third anniversary of the Date of Grant (the &#147;Vesting Date&#148;), provided you are then still employed by the Company. </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
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<TD ALIGN="left" VALIGN="top"><I><U>Reduction in Force</U>.</I> In the event you terminate employment prior to the third anniversary of the Date of Grant due to a &#147;Reduction in Force,&#148; then: 33% of the Performance Units will continue to
vest, provided your termination date is on or after the first anniversary of the Date of Grant; and 66% of the Performance Units will continue to vest, provided your termination date is on or after the second anniversary of the Date of Grant. The
number of Performance Units that will vest pursuant to the preceding sentence will be determined by multiplying (a)&nbsp;the applicable percentage from the preceding sentence by (b)&nbsp;the total number of Performance Units that would have vested,
if any, based on actual performance had you remained employed with the Company until the third anniversary of the Date of Grant, as determined in accordance with the schedules set forth under the caption &#147;Earned Award&#148; below.
</TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">For this purpose, the term &#147;Reduction in Force&#148; means an involuntary termination of employment with the Company
due to elimination of a previously required position or previously required </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">- 1 - </P>

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services, or due t