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Exhibit 10.9
SECOND AMENDED AND
RESTATED
HORNBECK OFFSHORE SERVICES,
INC.
INCENTIVE COMPENSATION
PLAN
RESTRICTED STOCK UNIT
AGREEMENT
FOR EXECUTIVE
OFFICERS
(Performance Vesting)
THIS RESTRICTED STOCK UNIT
AGREEMENT (this “ Agreement ”) is
made effective as of
(the “ Award Date ”) by and between
Hornbeck Offshore Services, Inc. (the “ Company
”) and
(“ Employee ”).
1. GRANT OF RESTRICTED STOCK
UNITS . Pursuant to the Second Amended and Restated
Hornbeck Offshore Services, Inc. Incentive Compensation Plan, (the
“ Plan ”) Employee is hereby awarded
(i)
Restricted Stock Units (the “ Base RS Units
”) of Common Stock and (ii)
Restricted Stock Units (the “ Bonus RS Units
”) covering, in the aggregate,
shares of the Common Stock of the Company. On any day, the value of
a Restricted Stock Unit shall equal the Fair Market Value of one
share of Common Stock of the Company. All of the Restricted Stock
Units shall be subject to the Forfeiture Restrictions as set forth
in Section 4 of this Agreement.
2. EFFECT OF THE PLAN .
The Restricted Stock Units awarded to Employee are subject to all
of the terms and conditions of the Plan, which terms and conditions
are incorporated herein for all purposes, and of this Agreement
together with all rules and determinations from time to time issued
by the Committee and by the Board pursuant to the Plan. The Company
hereby reserves the right to amend, modify, restate, supplement or
terminate the Plan without the consent of Employee, so long as such
amendment, modification, restatement or supplement shall not
materially reduce the rights and benefits available to Employee
hereunder, and this Award shall be subject, without further action
by the Company or Employee, to such amendment, modification,
restatement or supplement unless provided otherwise therein.
Capitalized terms used but not defined in this Agreement shall have
the meanings ascribed to such terms in the Plan.
3. DEFINITIONS
.
(a) “ Disability
” means permanent and total disability within the meaning of
Section 22(e)(3) of the Internal Revenue Code of 1986, as
amended (the “ Code ”).
(b) “ Forfeiture
Restrictions ” means the prohibition on transfer of
the Restricted Stock Units and the obligations to forfeit the
Restricted Stock Units to the Company as set forth in
Section 4 of this Agreement.
(c) “ Measurement
Period ” means the period beginning on the Award Date
and ending on the
anniversary of the Award Date.
(d) “ Retirement
” means Employee’s retirement from employment with the
Company or any of its Subsidiaries, other than termination for
Cause, on or after the date Employee attains age 60 provided
Employee has ten (10) years of service as of the date Employee
retires from service, or on or after Employee attains age
65.
(e) “ Restricted Stock
Unit ” means an Award representing an unfunded,
unsecured right to receive one share of the Common Stock of the
Company.
[Insert definitions as necessary
to describe the performance goal and specific performance measure
which will be used as a basis for determining whether any
Restricted Stock Units will vest]
4. RESTRICTIONS AND
VESTING . Employee hereby accepts the Award of the
Restricted Stock Units and agrees with respect thereto as
follows:
(a) Transferability . The
Restricted Stock Units may be transferred in a manner consistent
with Section 15.13 of the Plan. Except as provided in
Section 15.13 of the Plan and elsewhere in this Agreement and
the Plan, the Restricted Stock Units shall not be sold, assigned,
pledged, exchanged, hypothecated or otherwise transferred except by
will or the laws of descent and distribution. Any attempted
assignment of a Restricted Stock Unit in violation of this
Agreement shall be null and void. The Company shall not be required
to honor the transfer of any Restricted Stock Units that have been
sold or otherwise transferred in violation of any of the provisions
of this Agreement or the Plan.
(b) Mandatory Mediation and
Arbitration Procedure . By execution of this Agreement and
acceptance of this Award, which is a voluntary benefit
provided to Employee by the Company, Employee waives
Employee’s right to a jury trial in state or federal court
and agrees that (i) the Hornbeck Offshore Operators, LLC
Dispute Resolution Agreement Mediation and Arbitration Procedure
attached hereto as Exhibit A (“ Dispute Resolution
Procedure ”) and Section 15.17 of the Plan shall
be the sole and exclusive means of resolving disputes of the
parties (including any other persons claiming any rights or having
any obligations through the Company or Employee) arising out of or
relating to this Agreement, and (ii) the Dispute Resolution
Procedure shall be the sole and exclusive means for resolving any
other covered dispute between Employee and the Company or any of
its Subsidiaries (including any other person(s) claiming any rights
or having any obligations through the Company or Employee). By
execution of this Agreement, however, Employee does not
waive Employee’s right to any normally available
remedies Employee may have in connection with any claim Employee
may bring against the Company or any of its Subsidiaries, as an
arbitrator can award any normal remedies Employee could get in a
court proceeding. By execution of this Agreement Employee
represents that to the extent Employee considered necessary,
Employee has sought, at Employee’s own expense,
counsel regarding the terms of this Agreement and the waiver
contemplated in this Section 4(b).
(c) Retirement . If
Employee terminates service with the Company and its Subsidiaries
before the end of the Measurement Period as a result of
Employee’s Retirement, then, at the end of the Measurement
Period, the Forfeiture Restrictions shall lapse with respect to
that percentage of the Base RS Units and that percentage of the
Bonus RS Units corresponding to
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the [Insert Performance Measure] as provided
in paragraph (f) of this Section 4, determined as of the
end of the Measurement Period, that the Employee would have been
entitled to receive had Employee remained employed with the Company
and its Subsidiaries until the end of the Measurement
Period.
(d) Forfeiture of Restricted
Stock Units . If Employee terminates service with the
Company or its Subsidiaries prior to the
anniversary of the Award Date for any reason other than the
Employee’s death, Disability or Retirement, as herein
defined, or if Employee (or Employee’s estate) shall initiate
a legal proceeding against the Company other than pursuant to the
terms of the Dispute Resolution Procedure, then Employee (or
Employee’s estate, as applicable) shall, for no
consideration, forfeit all Restricted Stock Units.
Further, if prior to the
anniversary of the Award Date based upon reasonable investigation
and belief, the Committee or its designee, as applicable,
determines that Employee should be subject to disciplinary action
other than termination of Employee’s service with the Company
or any of its Subsidiaries, such disciplinary action can include
Employee’s forfeiture of all or any portion of
Employee’s Restricted Stock Units awarded under this
Agreement, such determination to be made by the Committee or its
designee, in the Committee’s or the designee’s sole and
absolute discretion, as applicable. For purposes of this paragraph
such action can be taken by the Committee or its designee, as
applicable, because of (i) any act or omission of Employee
that (A) results in the assessment of a criminal penalty
against the Company, (B) is otherwise in violation of any
federal, state, local or foreign law or regulation (other than
traffic violations and other similar misdemeanors),
(C) adversely affects or could reasonably be expected to
adversely affect the business reputation of the Company, or
(D) otherwise constitutes willful misconduct, gross
negligence, or any act of dishonesty or disloyalty, (ii) the
violation by Employee of policies established by the Company, or
(iii) the Company’s determination that Employee’s
performance or conduct was unacceptable.
(e) Death or Disability .
In the event of the Employee’s death or Disability during the
Measurement Period then (i) the Company shall determine the
[Insert Performance Measure] on the business day
immediately prior to such death or Disability as if such day of
determination was the end of the Measurement Period and, if not
previously forfeited, the Forfeiture Restrictions shall lapse with
respect to the greater of (x) the Base RS Units or
(y) that percentage of the Base RS Units and that percentage
of the Bonus RS Units corresponding to the [Insert
Performance Measure] , as set forth in the table in
paragraph (f) of this Section 4, and (ii) Employee
shall, for no consideration, forfeit to the Company upon such death
or Disability all of the Restricted Stock Units that remain subject
to Forfeiture Restrictions at such time.
(f) [Insert Performance
Measure] . If Employee provides continuous, eligible
service to the company and its subsidiaries, as determined by the
Committee or its designee, in the Committee’s or the
designee’s sole and absolute discretion, as applicable, until
the
anniversary of the effective date of this Agreement, Employee shall
vest in the Restricted Stock Units in accordance with this
Section 4 and the Forfeiture Restrictions shall lapse with
respect to that percentage of the Base RS Units and that percentage
of the Bonus RS Units corresponding to the [Insert
Performance Measure] , as set forth in the table below,
rounded down to the next whole share in each such case.
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[I NSERT
D ESCRIPTION OF
P
ERFORMANCE M EASURE
]
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P ERCENTAGE
OF B ASE RS U
NITS
W HICH V
EST
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P ERCENTAGE
OF B ONUS RS U
NITS
W HICH V
EST
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[Insert range/percentage of
Performance Measure Attained]
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[Insert Percentage] |
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[Insert Percentage] |
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[Insert range/percentage of
Performance Measure Attained]
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[Insert Percentage] |
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[Insert Percentage] |
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[Insert range/ percentage of
Performance Measure Attained]
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[Insert Percentage] |
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[Insert Percentage] |
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[Insert range/percentage of
Performance Measure Attained]
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[Insert Percentage] |
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[Insert Percentage] |
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[Insert range/percentage of
Performance Measure Attained]
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[Insert Percentage] |
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[Insert Percentage] |
The percentage of the Base RS Units and the percentage of
the Bonus RS Units for [Insert Performance Measure ranking or
range and explain how the determination of the Base RS Units and
Bonus RS Units which vest on the attainment of a performance
measure in between the range/percentage noted in the table]
shall be determined by the Committee using a curve which is a
straight line between the ranges/percentages in the table so that
the percentage of the Base RS Units and the percentage of the Bonus
RS Units as to which the Forfeiture Restrictions shall lapse is
interpolated to the actual [Insert Performance
Measure] ranking achieved.
(g) Change of Control .
If a Change of Control occurs during the Measurement Period then
(i) the Company shall determine the [Insert Performance
Measure] on the business day immediately prior to such
Change of Control as if such day of determination was the end of
the Measurement Period and, if not previously forfeited, the
Forfeiture Restrictions shall lapse with respect to the greater of
(x) the Base RS Units or (y) that percentage of the Base
RS Units and that percentage of the Bonus RS Units corresponding to
the [Insert Performance Measure] , as set forth in
the table in paragraph (f) of this Section 4, above, and
(ii) Employee shall, for no consideration, forfeit to the
Company upon such Change of Control all of the Restricted Stock
Units that remain subject to Forfeiture Restrictions at such
time.
(h) Rights . RS Units
represent an unfunded, unsecured promise of the Company to issue
shares of Common Stock of the Company as otherwise provided in this
Agreement. Other than the rights provided in this Agreement,
Employee shall have no rights of a stockholder of the Company until
such RS Units h
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