EXHIBIT 10.17
HALLIBURTON ANNUAL
PERFORMANCE PAY PLAN
AS AMENDED AND RESTATED
EFFECTIVE JANUARY 26, 2006
INDEX
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ARTICLE
I ................................................................................................................................................................................................................
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1
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PURPOSE .................................................................................................................................................................................................................
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1
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ARTICLE
II ...............................................................................................................................................................................................................
|
1
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DEFINITIONS ..........................................................................................................................................................................................................
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1
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2.1
Definitions .........................................................................................................................................................................................
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1
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2.2
Number ...............................................................................................................................................................................................
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5
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2.3
Headings ............................................................................................................................................................................................
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5
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ARTICLE
III .............................................................................................................................................................................................................
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5
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PARTICIPATION ...................................................................................................................................................................................................
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5
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3.1
Participants .......................................................................................................................................................................................
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5
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3.2
Partial Plan Year
Participation .....................................................................................................................................................
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5
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3.3
No Right to
Participate ....................................................................................................................................................................
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6
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3.4
Plan
Exclusive ...................................................................................................................................................................................
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6
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3.5
Consent to Dispute
Resolution ......................................................................................................................................................
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7
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ARTICLE
IV .............................................................................................................................................................................................................
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7
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ADMINISTRATION ...............................................................................................................................................................................................
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7
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ARTICLE
V ..............................................................................................................................................................................................................
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8
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REWARD
DETERMINATIONS ...........................................................................................................................................................................
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8
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5.1
Performance
Measures ...................................................................................................................................................................
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8
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5.2
Performance
Requirements ...........................................................................................................................................................
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8
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5.3
Reward
Determinations ..................................................................................................................................................................
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8
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5.4
Reward
Opportunities .....................................................................................................................................................................
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8
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5.5
Discretionary
Adjustments ............................................................................................................................................................
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9
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5.6
Discretionary
Bonuses ...................................................................................................................................................................
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9
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ARTICLE
VI ............................................................................................................................................................................................................
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9
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DISTRIBUTION OF REWARDS
.........................................................................................................................................................................
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9
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6.1
Form and Timing of
Payment .........................................................................................................................................................
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9
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6.2
Excess
Remuneration ......................................................................................................................................................................
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10
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6.3
Elective
Deferral ...............................................................................................................................................................................
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10
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6.4
Tax
Withholding ...............................................................................................................................................................................
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10
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ARTICLE
VII ............................................................................................................................................................................................................
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11
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TERMINATION OF EMPLOYMENT
..................................................................................................................................................................
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11
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7.1
Termination of Service
During Plan Year ..................................................................................................................................
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11
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7.2
Termination of Service
After End of Plan Year But
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Prior to the Payment Date .............................................................................................................................................................
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11
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ARTICLE
VIII ..........................................................................................................................................................................................................
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12
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RIGHTS
OF PARTICIPANTS AND BENEFICIARIES ....................................................................................................................................
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12
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8.1
Status as a Participant
or Beneficiary .........................................................................................................................................
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12
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8.2
Employment .......................................................................................................................................................................................
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12
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8.3
Nontransferability
...........................................................................................................................................................................
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12
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8.4
Nature of
Plan ...................................................................................................................................................................................
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13
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ARTICLE
IX .............................................................................................................................................................................................................
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13
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CORPORATE CHANGE ........................................................................................................................................................................................
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13
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ARTICLE
X ..............................................................................................................................................................................................................
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14
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AMENDMENT AND TERMINATION
.................................................................................................................................................................
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14
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ARTICLE
XI .............................................................................................................................................................................................................
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14
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MISCELLANEOUS .................................................................................................................................................................................................
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14
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11.1
Governing
Law ................................................................................................................................................................................
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14
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11.2
Severability .....................................................................................................................................................................................
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14
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11.3
Successor ........................................................................................................................................................................................
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14
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11.4
Effective
Date ..................................................................................................................................................................................
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14
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iii
HALLIBURTON
ANNUAL PERFORMANCE PAY
PLAN
The
Compensation Committee of Directors of Halliburton Company, having
heretofore established the Halliburton Annual Performance Pay Plan
(formerly known as the Annual Reward Plan), pursuant to the
provisions of Article X of said Plan, hereby amends and restates
said Plan to be effective in accordance with the provisions of
Section 11.4 hereof.
ARTICLE
I
PURPOSE
The purpose of
the Halliburton Annual Performance Pay Plan (the "Plan") is to
reward management and other key employees of the Company and its
Affiliates for improving financial results which drive the creation
of value for shareholders of the Company and thereby, serve to
attract, motivate, reward and retain high caliber employees
required for the success of the Company. The Plan provides a means
to link total and individual cash compensation to Company
performance, as measured by Cash Value Added ("CVA"), a
demonstrated driver of shareholder value, and, where appropriate,
additional performance measures which drive CVA.
ARTICLE
II
DEFINITIONS
2.1
Definitions
.
Where the following words and
phrases appear in the Plan, they shall have the respective meanings
set forth below, unless their context clearly indicates to the
contrary.
"Affiliate" shall mean a Subsidiary of the
Company or a division or designated group of the Company or a
Subsidiary.
"Base Salary" shall mean the annualized pay rate
of a Participant as in effect on January 1 of a Plan Year,
including base pay a Participant could have received in cash in
lieu of (i) contributions made on such Participant's behalf to a
qualified Plan maintained by the Company or to any cafeteria plan
under Section 125 of the Code maintained by the Company and (ii)
deferrals of compensation made at the Participant's election
pursuant to a plan or arrangement of the Company or an Affiliate,
but excluding any Rewards under this Plan and any other bonuses,
incentive pay or special awards.
"Beneficiary" shall mean the person, persons,
trust or trusts entitled by Will or the laws of descent and
distribution to receive the benefits specified under the Plan in
the event of the Participant's death prior to full payment of a
Reward.
"Board of Directors" shall mean the Board of
Directors of the Company.
"Business Unit CVA" shall mean the respective
CVA of designated business units, each calculated on an aggregate
basis for their respective operations.
"Cause" shall mean (i) the conviction of the
Participant of a felony under Federal law or the law of the state
in which such action occurred, (ii) dishonesty in course of
fulfilling the Participant's employment duties or (iii) the
disclosure by the Participant to any unauthorized person or
competitor of any confidential information or confidential
knowledge as to the business or affairs of the Company and its
Affiliates.
"CEO" shall mean the Chief Executive Officer of
the Company.
"Code" shall
mean the Internal Revenue Code of 1986, as amended.
"Committee" shall mean the Compensation
Committee of Directors of the Company, appointed by the Board of
Directors from among its members, no member of which shall be an
employee of the Company or a Subsidiary.
“Common Stock” shall mean the common
stock, par value $2.50 per share of Halliburton Company.
"Company" shall mean Halliburton Company and its
successors.
"Company CVA"
shall mean CVA calculated on a consolidated basis.
"Corporate Change" shall mean one of the
following events: (i) the merger, consolidation or other
reorganization of the Company in which the outstanding Common Stock
is converted into or exchanged for a different class of securities
of the Company, a class of securities of any other issuer (except a
direct or indirect wholly owned Subsidiary), cash or property; (ii)
the sale, lease or exchange of all or substantially all of the
assets of the Company to another corporation or entity (except a
direct or indirect wholly owned Subsidiary); (iii) the adoption by
the stockholders of the Company of a plan of liquidation and
dissolution; (iv) the acquisition (other than any acquisition
pursuant to any other clause of this definition) by any person or
entity, including, without limitation, a “group” as
contemplated by Section 13(d)(3) of the Securities Exchange Act of
1934, as amended, of beneficial ownership, as contemplated by such
Section, of more than twenty percent (based on voting power) of the
Company’s outstanding capital stock; or (v) as a result of or
in connection with a contested election of directors, the persons
who were directors of the Company be
