UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Kþ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

  For the fiscal year ended December 31, 2018

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

  For the transition period from to

Commission file number 1-10945____________________________________________

OCEANEERING INTERNATIONAL, INC.(Exact name of registrant as specified in its charter)

Delaware 95-2628227(State or other jurisdiction ofincorporation or organization)

(I.R.S. EmployerIdentification No.)

   11911 FM 529

Houston, Texas 77041(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (713) 329-4500

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Name of each exchange on which registeredCommon Stock, $0.25 par value New York Stock Exchange

   Securities registered pursuant to Section 12(g) of the Act:

None____________________________________________

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. þ Yes o No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. o Yes þ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filingrequirements for the past 90 days. þ Yes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 ofRegulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit suchfiles). þ Yes o No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, andwill not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of thisForm 10-K or any amendment to this Form 10-K. o Yes þ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.See definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ Accelerated filer o

Non-accelerated filer o Smaller reporting company o

    Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with anynew or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). oYes þ No

Aggregate market value of the voting stock held by nonaffiliates of the registrant computed by reference to the closing price of $25.46 of the CommonStock on the New York Stock Exchange as of June 29, 2018 , the last business day of the registrant's most recently completed second quarter: $2.5billionNumber of shares of Common Stock outstanding at February 22, 2019 : 98,838,122 .

Documents Incorporated by Reference:Portions of the proxy statement relating to the registrant's 2019 annual meeting of shareholders, to be filed on or before April 30, 2019 pursuant toRegulation 14A of the Securities Exchange Act of 1934, are incorporated by reference to the extent set forth in Part III, Items 10-14 of this report.

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Oceaneering International, Inc.Form 10-K

Table of Contents

Part I  Item 1. Business    Cautionary Statement Concerning Forward-Looking Statements  Executive Officers of the RegistrantItem 1A. Risk FactorsItem 1B. Unresolved Staff CommentsItem 2. PropertiesItem 3. Legal ProceedingsItem 4. Mine Safety Disclosures          Part II    Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity SecuritiesItem 6. Selected Financial DataItem 7. Management's Discussion and Analysis of Financial Condition and Results of OperationsItem 7A. Quantitative and Qualitative Disclosures About Market RiskItem 8. Financial Statements and Supplementary DataItem 9. Changes in and Disagreements with Accountants on Accounting and Financial DisclosureItem 9A. Controls and ProceduresItem 9B. Other Information     

Part III    Item 10. Directors, Executive Officers and Corporate GovernanceItem 11. Executive CompensationItem 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder MattersItem 13. Certain Relationships and Related Transactions, and Director IndependenceItem 14. Principal Accounting Fees and Services     

Part IV    Item 15. Exhibits, Financial Statement Schedules 

Signatures Index to Financial Statements and Schedules  Report of Independent Registered Public Accounting Firm  Consolidated Balance Sheets  Consolidated Statements of Operations    Consolidated Statements of Comprehensive Income (Loss)  Consolidated Statements of Cash Flows

  Consolidated Statements of Equity

  Notes to Consolidated Financial Statements  Selected Quarterly Financial Data (unaudited)  

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PART I Item 1. Business.GENERAL DEVELOPMENT OF BUSINESSOceaneering International, Inc. is a global provider of engineered services and products, primarily to the offshore oil and gas industry.Oceaneering also serves the offshore renewables, defense, aerospace and commercial theme park industries. Oceaneering was organized asa Delaware corporation in 1969 out of the combination of three diving service companies founded in the early 1960s. Since ourestablishment, we have concentrated on the development and marketing of underwater services and products to meet customer needsrequiring the use of advanced technology. We believe we are one of the world's largest underwater services contractors. The services andproducts we provide to the energy industry include remotely operated vehicles, specialty subsea hardware, engineering and projectmanagement, subsea intervention services, including manned diving, survey and positioning services, seabed preparation and asset integrityand nondestructive testing services. Our foreign operations, principally in the North Sea, Africa, Brazil, Australia and Asia, accounted forapproximately 50% of our revenue, or $1.0 billion , for the year ended December 31, 2018 .

Our business segments are contained within two businesses – services and products provided primarily to the oil and gas industry, and to alesser extent, the offshore renewables industry ("Energy Services and Products") and services and products provided to non-energyindustries ("Advanced Technologies"). Our four business segments within the Energy Services and Products business are Remotely OperatedVehicles ("ROVs"), Subsea Products, Subsea Projects and Asset Integrity. We report our Advanced Technologies business as one segment.Unallocated Expenses are expenses not associated with a specific business segment. These consist of expenses related to our incentive anddeferred compensation plans, including restricted stock and bonuses, as well as other general expenses.

Energy Services and Products. The primary focus of our Energy Services and Products business over the last several years has beentoward increasing our asset base and capabilities for providing services and products for offshore operations and subsea completions. Inrecent years, we have focused on increasing our service and product offerings toward our oil and gas customers' operating expenses and theoffshore renewable energy market.

During the past ten years, we have acquired businesses to expand and complement our service and product offerings. These include:

• a Canadian manufacturer of clamp connectors, check valves and universal ball joints;• a Norwegian-based provider of inspection, maintenance, subsea engineering and field operations services, principally to the oil and

gas industry;• a Norwegian rental provider of specialized subsea dredging equipment, including ROV-deployed units, to the offshore oil and gas

industry;• a Norwegian oilfield technology company specializing in providing subsea tooling services and plugging, abandonment and

decommissioning of offshore oil and gas production platforms and subsea wellheads;• a Norwegian design and fabrication company specializing in subsea tools for the offshore oil and gas industry;• a U.S.-based international provider of survey and positioning services;• a business that uses ROVs to perform surveys on mobile offshore drilling units and floating production systems that satisfy the

underwater inspection in lieu of drydocking (UWILD) requirements of all major classification societies;• the assets of a provider of riserless light well intervention services;• a majority interest in an Azerbaijani company that supports the provision of ROV and diving services in the Caspian Sea region; and• a U.K. company that builds and operates tools for seabed preparation, route clearance and trenching for the installation of submarine

cables and pipelines.

ROVs. We provide ROVs, which are tethered submersible vehicles remotely operated from the surface, to customers in the energy industryfor drilling support and vessel-based services, including

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subsea hardware installation, construction, pipeline inspection, survey and facilities inspection, maintenance and repair. We design and buildour new ROVs at in-house facilities, the largest of which is in Morgan City, LA. In 2018 , we added six ROVs to our fleet and retired ten . Ourwork-class ROV fleet size was 275 at December 31, 2018 , 279 at December 31, 2017 and 280 at December 31, 2016 . We have decreasedour ROV fleet size over the last four years as a result of lower market demand.

Subsea Products. Our Subsea Products segment consists of two business units: (1) manufactured products; and (2) service and rental.Manufactured products include production control umbilicals and specialty subsea hardware. Service and rental includes tooling, subsea worksystems and installation and workover control systems, which we design and build but operate as a service.

We provide various types of subsea umbilicals through our Umbilical Solutions division from plants in the United States, Scotland and Brazil.Offshore operators use umbilicals to control subsea wellhead hydrocarbon flow rates, monitor downhole and wellhead conditions and performchemical injection. Subsea umbilicals are also used to provide power and fluids to other subsea processing hardware, including pumps andgas separation equipment.

In 2016, we acquired the assets of Blue Ocean Technologies, LLC, a privately held provider of riserless light well intervention ("RLWI")services. Subsea well intervention services are intended to maximize production and increase the recovery rate from offshore oil and gasreservoirs or, alternatively, prepare wells to be plugged and abandoned. These RLWI systems have the capability to perform a wide varietyof cost-effective services for well interventions, including well diagnostics, damaged well remediation and workovers, and well plugging andabandonment.

Subsea Projects. Our Subsea Projects segment consists of our subsea installation, inspection, diving, maintenance and repair services,principally in the U.S. Gulf of Mexico and offshore Angola and India, utilizing a fleet consisting of two owned and one chartered dynamicallypositioned deepwater vessels with integrated high-specification work-class ROVs onboard, and four owned shallow water diving and surveyvessels, other spot-chartered vessels and other assets. Our owned vessels are Jones Act-compliant. The dynamically positioned vessels areequipped with thrusters that allow them to maintain a constant position at a location without the use of anchors. They are used in theinspection, maintenance and repair of subsea facilities, pipeline or flowline tie-ins, pipeline crossings and installations. These vessels can alsocarry and install equipment or umbilicals required to bring subsea well completions into production (tie-back to production facilities). Withour acquisitions of C & C Technologies, Inc. ("C&C") in 2015 and Ecosse Subsea Limited ("Ecosse") in 2018, further described below, weprovide survey services and route clearance and trenching services.

We previously had several deepwater vessels under long-term charter. The last of our long term charters expired in March 2018. With thecurrent market conditions, our philosophy is to attempt to charter vessels for specific projects on a back-to-back basis with the vesselowners. This generally minimizes our contract exposure by closely matching our obligations with our revenue. Unless indicated otherwise,each of the chartered vessels discussed below is a deepwater multiservice subsea support vessel outfitted with two of our high-specificationwork-class ROVs.

In 2012, we moved the chartered vessel Ocean Intervention III to Angola and also chartered the Bourbon Oceanteam 101 to work on athree-year field support vessel services contract for a unit of BP plc. We had extended the charter of the Bourbon Oceanteam 101 to January2017. However, in early 2016, the customer exercised its right, under the field support vessel services contract, to terminate its use of theBourbon Oceanteam 101 at the end of May 2016. Under the terms of the contract, the costs incurred by us associated with the early releaseand demobilization of the vessel were reimbursed by the customer. Following the release of the vessel, we redelivered it to the vesselsupplier. The charter for the Ocean Intervention III expired at the end of July 2017. Under the field support vessel services contract, whichwas extended through January 2019 and subsequently renewed under a new contract through January 2022, we are continuing to supplyproject management and engineering services. We also provide ROV tooling and asset integrity services as requested by the customer.Chartered vessels and barges are provided to the customer upon request.

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In March 2013, we commenced a five-year bareboat charter for a Jones Act-compliant multiservice support vessel, the Ocean Alliance , wehave been using in the U.S. Gulf of Mexico. In January 2015, we commenced a two-year contract with a customer for the use of the OceanAlliance which expired in January 2017. We returned the Ocean Alliance to the vessel owner in the first quarter of 2018 and continue tomarket the vessel, now renamed Cade Candies , for spot market work in the U.S. Gulf of Mexico on a back-to-back basis with the owner.

In December 2013, we commenced a three-year charter for the Normand Flower, a multiservice subsea marine support vessel. We mademodifications to the vessel and used the vessel in the U.S. Gulf of Mexico to perform inspection, maintenance and repair projects andhardware installations. In December 2016, we declined our option to extend the charter and the vessel was released.

In November 2015, we commenced a two-year charter for the use of the Island Pride, a multiservice subsea marine support vessel. We usedthe vessel under a two-year contract to provide field support services off the coast of India for an oil and gas customer based in India. InNovember 2017, that field services contract expired and we declined our option to extend the vessel charter.

We also charter or lease vessels on a short-term basis as necessary to augment our fleet.

In 2010, we acquired a vessel, which we renamed the Ocean Patriot , and we have converted it to a dynamically positioned saturation divingand ROV service vessel. We installed a 12-man saturation ("SAT") diving system and one work-class ROV on the vessel, and we placed thevessel into service in December 2011.

During the third quarter of 2013, we signed an agreement with a shipyard for the construction of a subsea support vessel, to be named theOcean Evolution . We expect to take delivery in the first quarter and place the vessel into service in the second quarter of 2019. We intendfor the vessel to be U.S. flagged and documented with a coastwise endorsement by the U.S. Coast Guard. The vessel has an overall lengthof 353 feet, a Class 2 dynamic positioning system, accommodations for 110 personnel, a helideck, a 250-ton active heave-compensatedcrane, a working moonpool, and two of our high specification 4,000 meter work-class ROVs. The vessel is also equipped with a satellitecommunications system capable of transmitting streaming video for real-time work observation by shore personnel. We anticipate the vesselwill be used to augment our ability to provide subsea intervention services in the U.S. Gulf of Mexico. These services are required to performinspection, maintenance and repair projects and hardware installations.

In 2015, we acquired C&C, now known as Oceaneering Survey Services, for approximately $224 million. Our survey business is a globalprovider of ocean-bottom mapping services, utilizing customized autonomous underwater vehicles, and provides marine constructionsurveys for both surface and subsea assets, as well as satellite-based positioning services for drilling rigs and seismic and constructionvessels. It also provides near-shore survey services along the U.S. Gulf Coast and in Mexico, and performs shallow water conventionalgeophysical surveys in the U.S. Gulf of Mexico.

In March 2018, we acquired Ecosse for approximately $68 million . Ecosse builds and operates seabed preparation, route clearance andtrenching tools for submarine cables and pipelines on an integrated basis that includes vessels, ROVs and survey services. Enablingtechnologies acquired in the transaction include Ecosse's modular seabed system, capable of completing the entire trenching work scope(route preparation, boulder clearance, trenching and backfill), and its newly developed trenching system. These systems primarily serve theshallow water offshore renewables market.

Asset Integrity . Through our Asset Integrity division, we provide asset integrity management, corrosion management, inspection, and non-destructive testing services, principally to customers in the oil and gas, power generation, and petrochemical industries. We perform theseservices on both onshore and offshore facilities, both topside and subsea.

General. During the last five years, we have also made several small acquisitions to add complementary technology or niche markets. Weintend to continue our strategy of acquiring, as opportunities arise, additional assets or businesses, to improve our market position orexpand into related service and product lines.

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Advanced Technologies. Our Advanced Technologies segment consists of two business units: (1) government; and (2) commercial.Government services and products include engineering and related manufacturing in defense and space exploration activities, principally toU.S. Government agencies and their prime contractors. Our commercial business unit offers a turnkey solution that includes programmanagement, engineering design, fabrication/assembly and installation to the commercial theme park industry and mobile robotics solutionsincluding automated guided vehicle technology to a variety of industries.

DESCRIPTION OF BUSINESSEnergy Services and ProductsOur Energy Services and Products business consists of ROVs, Subsea Products, Subsea Projects and Asset Integrity.

ROVs. ROVs are tethered submersible vehicles remotely operated from the surface. We use our ROVs in the offshore energy industry toperform a variety of underwater tasks, including drill support, vessel-based inspection, maintenance and repair, installation and constructionsupport, pipeline inspection and surveys, and subsea production facility operation and maintenance. Work-class ROVs are outfitted withmanipulators, sonar and video cameras, and can operate specialized tooling packages and other equipment or features to facilitate theperformance of specific underwater tasks. At December 31, 2018 , we owned 275 work-class ROVs. We believe we operate the largest fleetof ROVs in the world. We also believe we are the industry leader in providing ROV services for drill support, with an estimated 62% marketshare at the end of 2018 .

ROV revenue: Amount  Percent of Total

Revenue

(in thousands)  

2018 $ 394,801   21%2017 393,655   21%2016 522,121   23%

Subsea Products. We construct a variety of specialty subsea hardware and provide related services. These include:

• various types of subsea umbilicals utilizing steel tubes and thermoplastic hoses, along with termination assemblies;• tooling, ROV tooling and subsea work packages;• production control equipment;• installation and workover control systems ("IWOCS");• riserless light well intervention services• clamp connectors;• pipeline connector and repair systems;• subsea and topside control valves; and• subsea chemical injection valves.

.

Offshore well operators use subsea umbilicals and production control equipment to control subsea wellhead hydrocarbon flow, monitordownhole and wellhead conditions and perform chemical injection. They are also used to provide power and fluids to other subseaprocessing hardware, including pumps and gas/oil separation equipment. ROV tooling provides an additional operational interface betweenan ROV and permanently installed equipment located on the sea floor. Riserless light well intervention services, IWOCS and subsea workpackages facilitate well and associated equipment intervention for the purposes of flow remediation and well stimulation.

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Subsea Products revenue: Amount  Percent of Total

Revenue

(in thousands)  

2018 $ 515,000   27%2017 625,513   33%2016 692,030   30%

Subsea Projects. We perform subsea oilfield hardware installation and inspection, maintenance and repair services. We provide seabedpreparation, route clearance and trenching services for submarine cables in renewable energy markets. We service offshore projects withdynamically positioned vessels that typically have Oceaneering ROVs onboard. We service shallow water projects with our manned divingoperation utilizing dive support vessels and saturation diving systems.

We perform subsea intervention and hardware installation services, principally in the U.S. Gulf of Mexico, offshore Angola and offshore Indiafrom multiservice vessels that have Oceaneering ROVs onboard. These services include: subsea well tie-backs; pipeline/flowline tie-ins andrepairs; pipeline crossings; umbilical and other subsea equipment installations; subsea intervention; and inspection, maintenance and repairactivities.

We service oil and gas industry shallow water projects in the U.S. Gulf of Mexico and offshore Angola with our manned diving operationutilizing the traditional diving techniques of air, mixed gas and saturation diving, all of which use surface-supplied breathing gas. We supplyour diving services from four owned diving support vessels and other vessels and facilities. We do not use traditional diving techniques inwater depths greater than 1,000 feet.

We also provide survey services and route clearance and trenching services.

Subsea Projects revenue: Amount  Percent of Total

Revenue

(in thousands)  

2018 $ 329,163   17%2017 291,993   15%2016 472,979   21%

Asset Integrity. Through our Asset Integrity division, we offer a wide range of asset integrity services to customers worldwide to help ensurethe safety of their facilities onshore and offshore, while reducing their unplanned maintenance and repair costs. We also provide third-partyinspections to satisfy contractual structural specifications, internal safety standards or regulatory requirements. We provide these servicesprincipally to customers in the oil and gas, petrochemical and power generation industries. In the U.K., we provide Independent InspectionAuthority services for the oil and gas industry, which include first-pass integrity evaluation and assessment and nondestructive testingservices. We use a variety of technologies to perform pipeline inspections, both onshore and offshore.

Asset Integrity revenue: Amount  Percent of Total

Revenue

(in thousands)  

2018 $ 253,886   13%2017 236,778   12%2016 275,397   12%

Advanced TechnologiesOur Advanced Technologies segment provides engineering services and manufacturing to the U.S. Department of Defense, NASA and majorgovernment contractors. We also provide integrated mobile robotic system solutions to domestic and international theme parks, automotivemanufacturers and retail warehousing. We work with our customers to understand their specialized requirements, identify and mitigaterisks, and provide them value-added, maintainable, safe and certified solutions. The segment's largest customer is the U.S. Navy, for whomwe perform

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engineering services, prototype design building services and repair and maintenance services on submarines and surface ships.

We provide support for the U.S. Navy, including underwater operations, data analysis, the design and development of new underwater toolsand systems, and the development of the control software to operate those systems. We also install and maintain mechanical systems forthe Navy's submarines and surface ships. We support space exploration and technology development by providing our products and servicesto NASA and aerospace contractors. Our U.S. Navy and NASA-related activities substantially depend on continued government funding.

For commercial markets, we provide engineering services and we manufacture patented motion-based “dark ride” vehicle systems andinnovative customized robotic and mechanical solutions to the commercial theme park industry. For automotive manufacturers and retailwarehousing markets, we develop, implement and maintain innovative, turnkey logistic solutions based on automated guided vehicletechnology. Our commercial-related products and services are sold into both domestic and international markets.

Advanced Technologies revenue: Amount  Percent of Total

Revenue

(in thousands)  

2018 $ 416,632   22%2017 373,568   19%2016 309,076   14%

MARKETINGEnergy Services and Products. Oil and gas exploration and development expenditures fluctuate from year to year. In particular,budgetary approval for more expensive drilling and production in deepwater, an area in which we have a high degree of focus, may bepostponed or suspended during periods when exploration and production companies reduce their offshore capital spending. In recent years,we have focused on increasing our service and product offerings toward our oil and gas customers' operating expenses and the offshorerenewable energy market.

We market our ROVs, Subsea Products, Subsea Projects and Asset Integrity services and products to domestic, international and foreignnational oil and gas companies engaged in offshore exploration, development and production. We also provide services and products as asubcontractor to other oilfield service companies operating as prime contractors. Customers for these services typically award contracts on acompetitive-bid basis. These contracts are typically less than one year in duration, although we enter into multi-year contracts from time totime.

In connection with the services we perform in our Energy Services and Products business, we generally seek contracts that compensate uson a dayrate basis. Under dayrate contracts, the contractor provides the ROV, vessel or equipment and the required personnel to operatethe unit and compensation is based on a rate per day for each day the unit is used. The typical dayrate depends on market conditions, thenature of the operations to be performed, the duration of the work, the equipment and services to be provided, the geographical areasinvolved and other variables. Dayrate contracts may also contain an alternate, lower dayrate that applies when a unit is moving to a newsite or when operations are interrupted or restricted by equipment breakdowns, adverse weather or water conditions or other conditionsbeyond the contractor's control. Contracts for our product sales are generally for a fixed price.

Advanced Technologies. We market our engineered products and services primarily to U.S. Government agencies and their primecontractors in defense and space exploration activities, and to domestic and international theme park operators, automotive manufacturersand retail warehousing.

Major Customers. Our top five customers in 2018 , 2017 and 2016 accounted for 39% , 40% and 43% , respectively, of our consolidatedrevenue. In 2018, 2017 and 2016, four of our top five customers were oil and gas exploration and production companies served by ourEnergy Services and Products business segments, with the other one being the U.S. Navy or other parts of the U.S. Government, which isserved by our Advanced Technologies segment. During 2018 , revenue from one customer, Royal Dutch Shell, accounted for 10% of ourtotal consolidated annual revenue and in

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each of 2017 and 2016 , revenue from another customer, BP plc and subsidiaries, accounted for 12% and 18% , respectively, of our totalconsolidated annual revenue.

Although we do not depend on any one customer, the loss of one of our significant customers could, at least on a short-term basis, have anadverse effect on our results of operations and cash flows.

RAW MATERIALSMost of the raw materials we use in our manufacturing operations, such as steel in various forms, copper, electronic components andplastics, are available from many sources. However, some components we use to manufacture subsea umbilicals are available from limitedsources. With the exception of certain kinds of steel tube, where we are limited in the number of available suppliers, we can offer alternativematerials or technologies in many cases, which depends on the requisite approval of our customers. Currently, we are experiencing limitedsteel tube availability, due to several large project requirements, coupled with suppliers having reduced capacity during the industrydownturn. We believe we have secured sufficient steel tubes to satisfy existing backlog and anticipated orders to be produced in 2019. Webelieve the situation is temporary and will resolve itself as the industry returns to a more normal run rate.

COMPETITIONOur businesses operate in highly competitive industry segments.

Energy Services and ProductsWe are one of several companies that provide underwater services and specialty subsea hardware on a worldwide basis. We compete forcontracts with companies that have worldwide operations, as well as numerous others operating locally in various areas. We believe that ourability to provide a wide range of underwater services and products on a worldwide basis enables us to compete effectively in all phases ofthe offshore oilfield life cycle. In some cases involving projects that require less sophisticated equipment, small companies have been able tobid for contracts at prices uneconomical to us. Additionally, in some jurisdictions we are subject to foreign governmental regulations favoringor requiring the awarding of contracts to local contractors or requiring foreign contractors to employ citizens of, or purchase supplies from, aparticular jurisdiction. These regulations may adversely affect our ability to compete.

ROVs. We believe we are the world's largest owner/operator of work-class ROVs employed in energy related operations. At December 31,2018 , we owned 275 work-class ROVs, and we estimate that this represented approximately 25% of the work-class ROVs utilized in theoilfield service industry. We compete with several major companies on a worldwide basis and with numerous others operating locally invarious areas.

Competition for ROV services historically has been based on equipment availability, location of or ability to deploy the equipment, quality ofservice and price. The relative importance of these factors can vary over time based on market conditions. The ability to develop improvedequipment and techniques and to train and retain skilled personnel is also an important competitive factor in our markets. Demand for ROVshas been decreasing since mid 2014 due to the oil price environment, and our margins have decreased in recent periods due to lowerutilization and pricing pressure, as price has become a more important factor in the current market environment.

Subsea Products. There are many competitors offering specialized products and services. We are one of several companies that compete ona worldwide basis for the provision of steel tube and thermoplastic control umbilicals, and compared to current and forecasted marketdemand, we are faced with overcapacity in the umbilical manufacturing market.

Subsea Projects. We perform subsea intervention and hardware installation services, principally in the U.S. Gulf of Mexico, offshore Angolaand the North Sea, from multiservice deepwater vessels. We are one of many companies that offer these services. In general, ourcompetitors can move their vessels to where we operate from other locations with relative ease. Our survey and positioning services, alongwith our seabed preparation, route clearance and trenching services, operate in a

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similar competitive environment. We also have many competitors that supply commercial diving services to the oil and gas industry in theU.S. Gulf of Mexico.

Asset Integrity. The worldwide asset integrity and inspection markets consist of a wide range of inspection and certification requirements inmany industries. We compete in only selected portions of this market. We believe that our broad geographic sales and operational coverage,long history of operations, technical reputation, application of various pipeline inspection technologies and accreditation to internationalquality standards enable us to compete effectively in our selected asset integrity and inspection services market segments.

Advanced TechnologiesEngineering services is a very broad market with a large number of competitors. We compete in specialized areas in which we can combineour extensive program management experience, mechanical engineering expertise and the capability to continue the development ofconceptual project designs into the manufacture of custom equipment for customers.

SEASONALITY AND BACKLOGWe generate a material amount of our consolidated revenue from contracts for services in the U.S. Gulf of Mexico in our Subsea Projectssegment, which is usually more active in the second and third quarters, as compared to the rest of the year. The European operations of ourAsset Integrity segment are also seasonally more active in the second and third quarters. Revenue in our ROV segment is subject toseasonal variations in demand, with our first quarter generally being the low quarter of the year. The level of our ROV seasonality dependson the number of ROVs we have engaged in vessel-based subsea infrastructure inspection, maintenance, repair and installation, which ismore seasonal than drilling support. Revenue in each of our Subsea Products and Advanced Technologies segments generally has not beenseasonal.

The amounts of backlog orders we believed to be firm as of December 31, 2018 and 2017 were as follows (in millions):

As of December 31, 2018   As of December 31, 2017

Total   1+ yr*   Total   1+ yr*

Energy Services and Products              ROVs $ 497   $ 219   $ 432   $ 198Subsea Products 332   96   276   50Subsea Projects 76   7   153   38Asset Integrity 248 52 87   301   111

Total Energy Services and Products 1,153   409   1,162   397Advanced Technologies 312   51   218   47

Total $ 1,465   $ 460   $ 1,380   $ 444

         

* Represents amounts that were not expected to be performed within one year.

No material portion of our business is subject to renegotiation of profits or termination of contracts by the U.S. government.

PATENTS AND LICENSESWe currently hold numerous U.S. and foreign patents and pending patent applications. We have acquired patents and licenses and grantedlicenses to others when we have considered it advantageous for us to do so. Although in the aggregate our patents and licenses areimportant to us, we do not regard any single patent or license or group of related patents or licenses as critical or essential to our businessas a whole. In general, we depend on our technological capabilities and the application of know-how rather than patents and licenses in theconduct of our operations.

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REGULATIONOur operations are affected from time to time and in varying degrees by foreign and domestic political developments and foreign, federaland local laws and regulations, including those relating to:

• operating from and around offshore drilling, production and marine facilities;• national preference for local equipment and personnel;• marine vessel safety;• protection of the environment;• workplace health and safety;• data privacy;• taxation;• license requirements for exportation of our equipment and technology; and• currency conversion and repatriation.

In addition, our Energy Services and Products business primarily depends on the demand for our services and products from the oil and gasindustry and, therefore, is affected by changing taxes, price controls and other laws and regulations relating to the oil and gas industrygenerally. The adoption of laws and regulations curtailing offshore exploration and development drilling for oil and gas for economic andother policy reasons would adversely affect our operations by limiting demand for our services. We cannot determine the extent to whichnew legislation, new regulations or changes in existing laws or regulations may affect our future operations.

Our operations and properties are subject to a wide variety of increasingly complex and stringent foreign, federal, state and localenvironmental laws and regulations, including those governing discharges into the air and water, the handling and disposal of solid andhazardous wastes, the remediation of soil and groundwater contaminated by hazardous substances and the health and safety of employees.Sanctions for noncompliance may include revocation of permits, corrective action orders, administrative or civil penalties and criminalprosecution. Some environmental laws provide for strict, joint and several liability for remediation of spills and other releases of hazardoussubstances, as well as damage to natural resources. In addition, companies may be subject to claims alleging personal injury or propertydamage as a result of alleged exposure to hazardous substances. These laws and regulations may also expose us to liability for the conductof or conditions caused by others, or for our acts that were in compliance with all applicable laws at the time such acts were performed.

Environmental laws and regulations that apply to our operations include the Comprehensive Environmental Response, Compensation, andLiability Act of 1980, the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act (each, as amended) and similarlaws that provide for responses to, and liability for, releases of hazardous substances into the environment. Environmental laws andregulations also include similar foreign, state or local counterparts to the above-mentioned federal laws, which regulate air emissions, waterdischarges, hazardous substances and waste, and require public disclosure related to the use of various hazardous substances. Ouroperations are also governed by laws and regulations relating to workplace safety and worker health, primarily, in the United States, theOccupational Safety and Health Act and regulations promulgated thereunder.

Compliance with federal, state and local provisions regulating the discharge of materials into the environment or relating to the protection ofthe environment has not had a material impact on our capital expenditures, earnings or competitive position. We cannot predict all of theenvironmental requirements or circumstances that will exist in the future but anticipate that environmental control and protection standardswill become increasingly stringent and costly. Based on our experience to date, we do not currently anticipate any material adverse effect onour business or consolidated financial position, results of operations or cash flows as a result of future compliance with existingenvironmental laws and regulations. However, future events, such as changes in existing laws and regulations or their interpretation, morevigorous enforcement policies of regulatory agencies, or stricter or different interpretations of existing laws and regulations, may requireadditional expenditures by us, which may be material. Accordingly, there can be no assurance that we will not incur significantenvironmental compliance costs in the future.

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Our quality management systems are registered as being in conformance with ISO 9001:2015 and cover:

• all our Energy Services and Products services and products in the United Kingdom (the "U.K.") and Norway;• our Remotely Operated Vehicle operations in the U.S. Gulf of Mexico, the U.K., Norway, Brazil, Canada, the Middle East, Australia and

Asia;• our Asset Integrity operations in the Western Hemisphere, the Middle East, Australia, the United States and Indonesia;• our Subsea Projects operations;• our Subsea Products segment; and• the Oceaneering Space Systems, Oceaneering Technologies, Entertainment and Marine Services units of our Advanced Technologies

segment.

ISO 9001 is an internationally recognized system for quality management established by the International Standards Organization, and the2015 edition emphasizes customer satisfaction, risk assessment and continual improvement.

EMPLOYEESAs of December 31, 2018 , we had approximately 8,600 employees. Our workforce varies seasonally and peaks during the second and thirdquarters. We consider our relations with our employees to be satisfactory.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTSWe are including the following discussion to inform our existing and potential security holders generally of some of the risks anduncertainties that can affect our company and to take advantage of the "safe harbor" protection for forward-looking statements thatapplicable federal securities law affords.

From time to time, our management or persons acting on our behalf make forward-looking statements to inform existing and potentialsecurity holders about our company. These statements may include projections and estimates concerning the timing and success of specificprojects and our future orders, revenue, income and capital spending. Forward-looking statements are generally accompanied by words suchas "estimate," "plan," "project," "predict," "believe," "expect," "anticipate," "plan," "forecast," "budget," "goal," "may," "should," or otherwords that convey the uncertainty of future events or outcomes. In addition, sometimes we will specifically describe a statement as being aforward-looking statement and refer to this cautionary statement.

In addition, various statements this report contains, including those that express a belief, expectation or intention are forward-lookingstatements. Those forward-looking statements appear in Part I of this report in Item 1 – "Business," Item 2 – "Properties" and Item 3 –"Legal Proceedings" and in Part II of this report in Item 7 – "Management's Discussion and Analysis of Financial Condition and Results ofOperations," Item 7A – "Quantitative and Qualitative Disclosures About Market Risk" and in the Notes to Consolidated Financial Statementsincorporated into Item 8 and elsewhere in this report. These forward-looking statements speak only as of the date of this report, we disclaimany obligation to update these statements, and we caution you not to rely unduly on them. We have based these forward-lookingstatements on our current expectations and assumptions about future events. While our management considers these expectations andassumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks,contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks, contingenciesand uncertainties relate to, among other matters, the following:

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• factors affecting the level of activity in the energy industry, including worldwide demand for and prices of oil and natural gas, oil andnatural gas production growth and the supply and demand of offshore drilling rigs;

• decisions about offshore developments to be made by oil and gas exploration, development and production companies;• decisions about offshore developments to be made by offshore renewables companies;• the use of subsea completions and our ability to capture associated market share;• general economic and business conditions and industry trends;• the strength of the industry segments in which we are involved;• cancellations of contracts, change orders and other contractual modifications and the resulting adjustments to our backlog;• collections from our customers;• the levels of oil and gas production to be processed by the Medusa field production spar platform;• our future financial performance, including as a result of the availability, terms and deployment of capital;• the consequences of significant changes in currency exchange rates;• the volatility and uncertainties of credit markets;• changes in tax laws, regulations and interpretation by taxing authorities;• changes in, or our ability to comply with, other laws and governmental regulations, including those relating to the environment;• the continued availability of qualified personnel;• our ability to obtain raw materials and parts on a timely basis and, in some cases, from limited sources;• operating risks normally incident to offshore exploration, development and production operations;• hurricanes and other adverse weather and sea conditions;• cost and time associated with drydocking of our vessels;• the highly competitive nature of our businesses;• adverse outcomes from legal or regulatory proceedings;• the risks associated with integrating businesses we acquire;• the risks associated with the use of complex information technology systems, including cybersecurity risks and the risks associated

with failures to protect data privacy in accordance with applicable legal requirements and contractual provisions binding upon us;• rapid technological changes; and• social, political, military and economic situations in foreign countries where we do business and the possibilities of civil disturbances,

war, other armed conflicts or terrorist attacks.

We believe the items we have outlined above are important factors that could cause our actual results to differ materially from thoseexpressed in a forward-looking statement made in this report or elsewhere by us or on our behalf. We have discussed most of these factorsin more detail elsewhere in this report. These factors are not necessarily all the factors that could affect us. Unpredictable or unanticipatedfactors we have not discussed in this report could also have material adverse effects on actual results of matters that are the subject of ourforward-looking statements. We do not intend to update our description of important factors each time a potential important factor arises.We advise our security holders that they should (1) be aware that important factors we do not refer to above could affect the accuracy ofour forward-looking statements and (2) use caution and common sense when considering our forward-looking statements.

AVAILABLE INFORMATIONOur Web site address is www.oceaneering.com. We make available through this Web site under "Investor Relations — SEC FinancialReports," free of charge, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, amendments tothose reports and Section 16 filings by our directors and executive officers as soon as reasonably practicable after we, or our executiveofficers or directors, as the case may be, electronically file those materials with, or furnish those materials to, the SEC. In addition, the SECmaintains a Web site, www.sec.gov, which contains reports, proxy and other information statements, and other information regardingissuers that file electronically with the SEC.

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We have adopted, and posted on our Web site: our corporate governance guidelines; a code of ethics for our Chief Executive Officer andSenior Financial Officers; and charters for the Audit, Nominating and Corporate Governance and Compensation Committees of our Board ofDirectors.

EXECUTIVE OFFICERS OF THE REGISTRANTExecutive Officers. The following information relates to our executive officers as of February 22, 2019 :

NAME   AGE   POSITION  

EXECUTIVE OFFICER

SINCE  EMPLOYEE

SINCE

Roderick A. Larson   52   President and Chief Executive Officer and Director   2012   2012Clyde W. Hewlett   64   Chief Operating Officer   2011   1988Alan R. Curtis   53   Senior Vice President and Chief Financial Officer   2015   1995David K. Lawrence   59   Senior Vice President, General Counsel and Secretary   2012   2005Stephen P. Barrett   61   Senior Vice President, Business Development   2015   2015W. Cardon Gerner   64   Senior Vice President and Chief Accounting Officer   2006   2006William J. Boyle   58   Senior Vice President, Asset Integrity   2016   2016Philip G. Beierl   60   Senior Vice President, Advanced Technologies   2018   2005Martin J. McDonald   55   Senior Vice President, Remotely Operated Vehicles   2015   1989Eric A. Silva   59   Senior Vice President, Operations Support   2017   2014                 Each executive officer serves at the discretion of our Chief Executive Officer and our Board of Directors and is subject to reelection orreappointment each year after the annual meeting of our shareholders. We do not know of any arrangement or understanding between anyof the above persons and any other person or persons pursuant to which he was selected or appointed as an officer.

Business Experience. The following summarizes the business experience of our executive officers. Except where we otherwise indicate,each of these persons has held his current position with Oceaneering for at least the past five years.

Roderick A. Larson joined Oceaneering in May 2012 as Senior Vice President and Chief Operating Officer, became President in February 2015and became President and Chief Executive Officer and Director in May 2017. Mr. Larson previously held positions with Baker HughesIncorporated from 1990 until he joined Oceaneering, serving most recently as President, Latin America Region from January 2011.Previously, he served as Vice President of Operations, Gulf of Mexico Region from 2009 to 2011, Gulf Coast Area Manager from 2007 to2009, and Special Projects Leader Technical Training Task from 2006 to 2007.

Clyde W. Hewlett, Chief Operating Officer, has extensive experience in the offshore and subsea oilfield markets. He joined Oceaneering in1988 and has held increasingly responsible positions. He has served as our Vice President of Mobile Offshore Production Systems, VicePresident of Subsea Projects, Senior Vice President of Subsea Projects and Senior Vice President, Subsea Services. He was promoted to hiscurrent position in August 2015.

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Alan R. Curtis, Senior Vice President and Chief Financial Officer, joined Oceaneering in 1995 as the Financial and Operations Controller forour Subsea Products segment, and became Vice President and Controller of Subsea Products in 2013 and Senior Vice President, OperationsSupport in 2014. He was appointed to his current position in August 2015.

David K. Lawrence, Senior Vice President, General Counsel and Secretary, joined Oceaneering in 2005 as Assistant General Counsel. He wasappointed Associate General Counsel effective January 2011, Vice President, General Counsel and Secretary in January 2012 and to hiscurrent position in February 2014. He has over 25 years of experience as in-house counsel in the oilfield services and products industry andmanufacturing.

Stephen P. Barrett, Senior Vice President, Business Development, joined Oceaneering in July 2015 as Senior Vice President, SubseaProducts. He was appointed to his current position in November 2016. Prior to joining Oceaneering, he served at FMC Technologiesbeginning in 1982, progressing through a variety of engineering, sales and marketing, and general management roles, most recently asGlobal Subsea Services Director from 2013 to 2015.

W. Cardon Gerner, Senior Vice President and Chief Accounting Officer, joined Oceaneering in 2006 as Vice President and Chief AccountingOfficer, and became a Senior Vice President in August 2011 and served as our Chief Financial Officer from that date until August 2015. From1999 to 2006, he held various financial positions with Service Corporation International, a global provider of death-care services, serving asVice President Accounting from 2002 to 2006. He also served as Senior Vice President and Chief Financial Officer of Equity CorporationInternational from 1995 to 1999. He is a Certified Public Accountant.

William J. Boyle, Senior Vice President, Asset Integrity, joined Oceaneering in March 2016. Prior to joining Oceaneering, Mr. Boyle held theposition of Chief Executive Officer with Underwater Integrity Solutions from November 2014 until December 2015. Previously, Mr. Boyleheld senior leadership positions at Forum Energy Technologies, Inc. from 2013 to 2014, Clough Limited from 2008 to 2012, Subsea 7 S.A.from 2005 to 2008, John Wood Group PLC from 2003 to 2005 and Technip S.A. from 1991 to 2003.

Philip G. Beierl, Senior Vice President, Advanced Technologies joined Oceaneering in 2005. Before joining Oceaneering in 2005, he served asa U.S. Navy diving and salvage officer for over 25 years. He served and held leadership positions in the Oceaneering Technologies unit, mostrecently as its Vice President and General Manager from August 2014. He was appointed as Vice President, Advanced Technologies inJanuary 2018 and then to his current position in May 2018.

Martin J. McDonald, Senior Vice President, Remotely Operated Vehicles, joined Oceaneering in 1989. He has held a variety of domestic andinternational positions of increasing responsibility in our ROV segment and most recently served as Vice President and General Manager forour ROV operations in the Eastern Hemisphere from 2006 until being appointed to his current position effective January 2016.

Eric A. Silva, Senior Vice President, Operations Support joined Oceaneering in February 2014 as Chief Information Officer and Vice President.He was appointed to his current position in August 2015 and was appointed an executive officer in 2017. Prior to joining Oceaneering, Mr.Silva was a consultant from May 2012 to February 2014 and served as the Chief Information Officer at El Paso Corporation from 2010 toMay 2012. Prior to such time, he was Vice President of Information Technology of LyondellBasell Industries N.V. (formerly LyondellBasellIndustries AF S.C.A.) from December 2007 to 2010, and was Vice President of Information Technology of Lyondell Chemical Company from2002 to 2007.

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Item 1A. Risk Factors.

We are subject to various risks and uncertainties in the course of our business. The following summarizes significant risks and uncertaintiesthat may materially and adversely affect our business, financial condition, results of operations or cash flows and the market value of oursecurities. Investors in our company should consider these matters, in addition to the other information we have provided in this report andthe documents we incorporate by reference.

We derive most of our revenue from companies in the offshore oil and gas industry, a historically cyclical industry with levelsof activity that are significantly affected by the levels and volatility of oil and gas prices.

We derive most of our revenue from customers in the offshore oil and gas exploration, development and production industry. The offshoreoil and gas industry is a historically cyclical industry characterized by significant changes in the levels of exploration and developmentactivities. Oil and gas prices, and market expectations of potential changes in those prices, significantly affect the levels of those activities.Worldwide political, economic and military events have contributed to oil and gas price volatility and are likely to continue to do so in thefuture. Since the general decline in the price of oil from mid 2014, many oil and gas companies made significant reductions in their capitaland operating expenditures, which are adversely impacting demand for the services and products provided by our Energy Services andProducts business. Any prolonged reduction in the overall level of offshore oil and gas exploration and development activities, whetherresulting from changes in oil and gas prices or otherwise, could materially and adversely affect our financial condition and results ofoperations in our segments within our Energy Services and Products business. Some factors that have affected and are likely to continueaffecting oil and gas prices and the level of demand for our services and products include the following:

• worldwide demand for oil and gas;• general economic and business conditions and industry trends;• the ability of the Organization of Petroleum Exporting Countries, or OPEC, to set and maintain production levels;• the level of production by non-OPEC countries, including U.S. shale oil;• the ability of oil and gas companies to generate funds for capital expenditures;• domestic and foreign tax policy;• laws and governmental regulations that restrict exploration and development of oil and gas in various offshore jurisdictions;• technological changes;• the political environment of oil-producing regions;• the price and availability of alternative energy; and• overall economic conditions.

Our operations could be adversely impacted by the effects of new regulations.During 2010, the U.S. government established new regulations relating to the design of wells and testing of the integrity of wellbores, theuse of drilling fluids, the functionality and testing of well control equipment, including blowout preventers, and other safety andenvironmental regulations. The U.S. government requires that operators demonstrate their compliance with those regulations beforecommencing deepwater drilling operations. Changes in laws or regulations regarding offshore oil and gas exploration and developmentactivities, the cost or availability of insurance and the impacts of these factors on decisions by customers or other industry participants couldfurther reduce demand for our services, which would have a negative impact on our operations.

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Our international operations involve additional risks not associated with domestic operations.

A significant portion of our revenue is attributable to operations in foreign countries. These activities accounted for approximately 50% ofour consolidated revenue in 2018 . Risks associated with our operations in foreign areas include risks of:

• regional and global economic downturns;• disturbances or other risks that may limit or disrupt markets;• expropriation, confiscation or nationalization of assets;• renegotiation or nullification of existing contracts;• foreign exchange restrictions;• foreign currency fluctuations, particularly in countries highly dependent on oil revenue;• foreign taxation, including the application and interpretation of tax laws;• the inability to repatriate earnings or capital;• changing political conditions;• changing foreign and domestic monetary policies; and• social, political, military and economic situations in foreign areas where we do business and the possibilities of civil disturbances, war,

other armed conflict, terrorist attacks or acts of piracy.

Additionally, in some jurisdictions we are subject to foreign governmental regulations favoring or requiring the awarding of contracts to localcontractors or requiring foreign contractors to employ citizens of, or purchase supplies from, a particular jurisdiction. These regulations mayadversely affect our ability to compete.

Our exposure to the risks we described above varies from country to country. In recent periods, economic conditions, political instability andcivil unrest in Africa have been our greatest concerns. There is a risk that a continuation or worsening of these conditions could materiallyand adversely impact our future business, operations, financial condition and results of operations. Of our total consolidated revenue for2018 , we generated approximately 13% from our operations in Africa, primarily in Angola.

Foreign exchange risks and fluctuations may affect our profitability on certain projects.

We operate on a worldwide basis with substantial operations outside the U.S. that subject us to U.S. dollar translation and economic risks.In order to manage some of the risks associated with foreign currency exchange rates, we may enter into foreign currency derivative(hedging) instruments, especially when there is currency risk exposure that is not naturally mitigated via our contracts. However, theseactions may not always eliminate all currency risk exposure, in particular for our long-term contracts. A disruption in the foreign currencymarkets, including the markets with respect to any particular currencies, could adversely affect our hedging instruments and subject us toadditional currency risk exposure. Based on fluctuations in currency, the U.S. dollar value of our backlog may from time to time increase ordecrease significantly. We do not enter into derivative instruments for trading or other speculative purposes. Our operational cash flows andcash balances, though predominately held in U.S. dollars, may consist of different currencies at various points in time in order to executeour contracts globally. Non-U.S. asset and liability balances are subject to currency fluctuations when measured period to period for financialreporting purposes in U.S. dollars.

Our backlog is subject to unexpected adjustments and cancellations and is, therefore, an uncertain indicator of our futurerevenue and earnings.There can be no assurance that the revenue included in our backlog will be realized or, if realized, will result in profits. Because of projectcancellations or potential changes in the scope or schedule of our customers' projects, we cannot predict with certainty when or if backlogwill be realized. Material delays, suspensions, cancellations or payment defaults could materially affect our financial condition, results ofoperations and cash flows. We may be at risk of delays, suspensions and cancellations in the current market environment.

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Reductions in our backlog due to cancellation by a customer or for other reasons would adversely affect, potentially to a material extent, therevenue and earnings we actually receive from contracts included in our backlog. Many of our ROV contracts have 30-day notice terminationclauses. Some of the contracts in our backlog provide for cancellation fees in the event customers cancel projects. These cancellation feesusually provide for reimbursement of our out-of-pocket costs, revenue for work performed prior to cancellation and a varying percentage ofthe profits we would have realized had the contract been completed. We typically have no contractual right upon cancellation to the totalcontract revenue as reflected in our backlog. If we experience significant project terminations, suspensions or scope adjustments tocontracts reflected in our backlog, our financial condition, results of operations and cash flows may be adversely impacted.

A global financial crisis could impact our business and financial condition in ways that we currently cannot predict.A recurrence of the credit crisis and related turmoil in the global financial system that occurred in 2008 and 2009 could have an impact onour business and our financial condition. In particular, the cost of capital increased substantially while the availability of funds from thecapital markets diminished significantly. Although the capital markets have recovered, in a recurrence, our ability to access the capitalmarkets in the future could be restricted or be available only on terms we do not consider favorable. Limited access to the capital marketscould adversely impact our ability to take advantage of business opportunities or react to changing economic and business conditions andcould adversely impact our ability to continue our growth strategy. Ultimately, we could be required to reduce our future capitalexpenditures substantially. Such a reduction could have a material adverse effect on our business and our consolidated financial condition,results of operations and cash flows. A recurrence of such a global financial crisis could have further impacts on our business that wecurrently cannot predict or anticipate.

A global financial crisis or economic recession could have an impact on our suppliers and our customers, causing them to fail to meet theirobligations to us, which could have a material adverse effect on our revenue, income from operations and cash flows.

If one or more of the lenders under our revolving credit facility were to become unable or unwilling to perform their obligations under thatfacility, our borrowing capacity could be reduced. Our inability to borrow under our revolving credit facility could limit our ability to fund ourfuture operations and growth.

In addition, we maintain our cash balances and short-term investments in accounts held by major banks and financial institutions locatedprincipally in North America, Europe, Africa and Asia, and some of those accounts hold deposits that exceed available insurance. It ispossible that one or more of the financial institutions in which we hold our cash and investments could become subject to bankruptcy,receivership or similar proceedings. As a result, we could be at risk of not being able to access material amounts of our cash, which couldresult in a temporary liquidity crisis that could impede our ability to fund operations.

Employee, agent or partner misconduct or our overall failure to comply with laws or regulations could weaken our ability towin contracts, which could result in reduced revenue and profits.Misconduct, fraud, non-compliance with applicable laws and regulations, or other improper activities by one or more of our employees,agents or partners could have a significant negative impact on our business and reputation. Such misconduct could include the failure tocomply with the U.S. Foreign Corrupt Practices Act ("FCPA"), which prohibits companies and their intermediaries from making improperpayments to non-U.S. officials, as well as the failure to comply with government procurement regulations, regulations on lobbying or similaractivities, regulations pertaining to the internal controls over financial reporting and various other applicable laws or regulations, includingthe U.K. Bribery Act. We operate in some countries that international corruption monitoring groups have identified as having high levels ofcorruption. Our activities create the risk of unauthorized payments or offers of payments by one of our employees or agents that could be inviolation of the FCPA or other applicable anti-corruption laws. The precautions we take to prevent and detect misconduct, fraud or non-compliance with applicable laws and regulations may not be effective, and

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we could face unknown risks or losses. Our failure to comply with applicable laws or regulations or acts of misconduct could subject us tofines, penalties or other sanctions, which could have a material adverse effect on our business and our consolidated financial condition,results of operations and cash flows.Our business strategy contemplates future acquisitions. Acquisitions of other businesses or assets present various risks anduncertainties.We may pursue growth through the acquisition of businesses or assets that will enable us to broaden our service and product offerings andexpand into new markets. We may be unable to implement this element of our growth strategy if we cannot identify suitable businesses orassets, reach agreement on potential strategic acquisitions on acceptable terms or for other reasons. Moreover, acquisitions involve variousrisks, including:

• difficulties relating to the assimilation of personnel, services and systems of an acquired business and the assimilation of marketingand other operational capabilities;

• challenges resulting from unanticipated changes in customer and other third-party relationships subsequent to acquisition;• additional financial and accounting challenges and complexities in areas such as tax planning, treasury management, financial

reporting and internal controls;• assumption of liabilities of an acquired business, including liabilities that were unknown at the time the acquisition transaction was

negotiated;• possible liabilities under the FCPA and other anti-corruption laws;• diversion of management's attention from day-to-day operations;• failure to realize anticipated benefits, such as cost savings and revenue enhancements;• potentially substantial transaction costs associated with acquisitions; and• potential impairment resulting from the overpayment for an acquisition.

Future acquisitions may require us to obtain additional equity or debt financing, which may not be available on attractive terms. Moreover,to the extent an acquisition transaction financed by non-equity consideration results in goodwill, it will reduce our tangible net worth, whichmight have an adverse effect on credit availability.

Additionally, an acquisition may bring us into businesses we have not previously conducted and expose us to additional business risks thatare different from those we have previously experienced.

Our business strategy also includes development and commercialization of new technologies to support our growth. Thedevelopment and commercialization of new technologies require capital investment and involve various risks anduncertainties.Our future growth will depend on our ability to continue to innovate by developing and commercializing new service and product offerings.Investments in new technologies involve varying degrees of uncertainties and risk. Commercial success depends on many factors, includingthe levels of innovation, the development costs and the availability of capital resources to fund those costs, the levels of competition fromothers developing similar or other competing technologies, our ability to obtain or maintain government permits or certifications, theeffectiveness of production, distribution and marketing efforts, and the costs to customers to deploy and provide support for the newtechnologies. We may not achieve significant revenue from new service and product investments for a number of years, if at all. Moreover,new services and products may not be profitable, and, even if they are profitable, our operating margins from new services and productsmay not be as high as the margins we have experienced historically.

The loss of the services of one or more of our key personnel, or our failure to attract, assimilate and retain trained personnelin the future, could disrupt our operations and result in loss of revenue.Our success depends on the continued active participation of our executive officers and key operating personnel. The unexpected loss of theservices of any one of these persons could adversely affect our operations.

Our operations require the services of employees having the technical training and experience necessary to obtain the proper operationalresults. As a result, if we should suffer any material loss

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of personnel to competitors or be unable to employ additional or replacement personnel with the requisite level of training and experience toadequately operate our equipment, our operations could be adversely affected. A significant increase in the wages paid by other employerscould result in a reduction in our workforce, increases in wage rates, or both.

We may not be able to compete successfully against current and future competitors.Our businesses operate in highly competitive industry segments. Some of our competitors or potential competitors have greater financial orother resources than we have. Our operations may be adversely affected if our current competitors or new market entrants introduce newproducts or services with better features, performance, prices or other characteristics than those of our services and products. This factor issignificant to our segments' operations, particularly in the segments within our Energy Services and Products business, where capitalinvestment is critical to our ability to compete.We rely on intellectual property law and confidentiality agreements to protect our intellectual property. We also rely onintellectual property we license from third parties. Our failure to protect our intellectual property rights, or our inability toobtain or renew licenses to use intellectual property of third parties, could adversely affect our business.We rely on a variety of intellectual property rights that we use in our services and products, and our success depends, in part, on our abilityto protect our proprietary information and other intellectual property. Our intellectual property could be challenged, invalidated,circumvented or rendered unenforceable. In addition, effective intellectual property protection may be limited or unavailable in some foreigncountries where we operate.Our failure to protect our intellectual property rights may result in the loss of valuable technologies or adversely affect our competitivebusiness position. We rely significantly on proprietary technology, information, processes and know-how that are not subject to patent orcopyright protection. We seek to protect this information through trade secret or confidentiality agreements with our employees,consultants, subcontractors or other parties, as well as through other security measures. These agreements and security measures may beinadequate to deter or prevent misappropriation of our confidential information. In the event of an infringement of our intellectual propertyrights, a breach of a confidentiality agreement or divulgence of proprietary information, we may not have adequate legal remedies to protectour intellectual property.In some instances, we have augmented our technology base by licensing the proprietary intellectual property of third parties. However, it ispossible that the tools, techniques, methodologies, programs and components we use to provide our services or products may infringe onthe intellectual property rights of others. In the future, we may not be able to obtain necessary licenses on commercially reasonable terms.Royalty payments under licenses from third parties, if available, or developing non-infringing technologies could materially increase ourcosts. Additionally, if a license or non-infringing technology were not available, we might not be able to continue providing a particularservice or product, which could materially and adversely affect our financial condition, results of operations and cash flows.Litigation to determine the scope of intellectual property rights, even if ultimately successful, could be costly and could divert management'sattention away from other aspects of our business. In addition, our trade secrets may otherwise become known or be independentlydeveloped by competitors.Our information technology systems are subject to interruption and cybersecurity risks that could adversely impact ouroperations.We continue to evaluate potential replacements or upgrades of existing key information technology systems. The implementation of newinformation technology systems or upgrades to existing systems subjects us to inherent costs and risks associated with replacing orchanging these systems, including potential disruption of our internal control structure, substantial capital expenditures, demands onmanagement time and other risks. Our possible new information technology systems implementations or upgrades may not result inproductivity improvements at the levels anticipated, or at all. In addition, the implementation of new or upgraded information technologysystems may cause disruptions in our business operations. Any such disruption, and any other information

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technology system disruptions, if not anticipated and appropriately mitigated, could have a material adverse effect on our operations.Our operations (both onshore and offshore) are highly dependent on information technology systems, including systems that collect,organize, store or use personal data. Threats to information technology systems associated with cybersecurity risks and cyber incidents orattacks continue to grow. In addition, breaches to our systems or third-party systems utilized by us could go unnoticed for some period oftime. Risks associated with these threats include disruptions of certain systems on our vessels or utilized to operate our ROVs; otherimpairments of our ability to conduct our operations; loss of or damage to intellectual property, proprietary information or employee orcustomer data; disruption of our customers’ operations; loss or damage to our customer data delivery systems; and increased costs toprevent, respond to or mitigate cybersecurity incidents. If such a cyber-incident were to occur, it could have a material adverse effect on ourbusiness and our consolidated financial condition, results of operations and cash flows.In addition, the regulatory environment surrounding data privacy and protection is evolving and can be subject to significant change. Newlaws and regulations relating to data privacy and the unauthorized disclosure of confidential information, including the European UnionGeneral Data Protection Regulation and recent legislation and regulations adopted in various U.S. jurisdictions, pose complex compliancechallenges and may result in increased costs, and any failure to comply with those laws and regulations (or contractual provisions requiringsimilar compliance), including as a result of security and privacy breaches, could result in negative publicity and significant penalties or otherliabilities. Additionally, if we acquire an entity that has violated or is not in compliance with applicable data privacy and protection laws orregulations (or contractual provisions), we may experience similar adverse consequences.Our offshore oilfield operations involve a variety of operating hazards and risks that could cause losses.Our operations are subject to the hazards inherent in the offshore oilfield business. These include blowouts, explosions, fires, collisions,capsizings and severe weather conditions. These hazards could result in personal injury and loss of life, severe damage to or destruction ofproperty and equipment, pollution or environmental damage and suspension of operations. We may incur substantial liabilities or losses as aresult of these hazards. While we maintain insurance protection against some of these risks, and seek to obtain indemnity agreements fromour customers requiring the customers to hold us harmless from some of these risks, our insurance and contractual indemnity protectionmay not be sufficient or effective to protect us under all circumstances or against all risks. The occurrence of a significant event not fullyinsured or indemnified against or the failure of a customer to meet its indemnification obligations to us could materially and adversely affectour results of operations and financial condition.Laws and governmental regulations may add to our costs or adversely affect our operations.Our business is affected by changes in public policy and by federal, state, local and foreign laws and regulations relating to the offshore oiland gas industry. Offshore oil and gas exploration and production operations are affected by tax, environmental, safety and other laws, bychanges in those laws, application or interpretation of existing laws, and changes in related administrative regulations. It is also possiblethat these laws and regulations may in the future add significantly to our operating costs or those of our customers or otherwise directly orindirectly affect our operations.Environmental laws and regulations can increase our costs, and our failure to comply with those laws and regulations canexpose us to significant liabilities.Risks of substantial costs and liabilities related to environmental compliance issues are inherent in our operations. Our operations aresubject to extensive federal, state, local and foreign laws and regulations relating to the generation, storage, handling, emission,transportation and discharge of materials into the environment. Permits are required for the operation of various facilities, and those permitsare subject to revocation, modification and renewal. Governmental authorities have the power to enforce compliance with their regulations,and violations are subject to fines, injunctions or both. In some cases, those governmental requirements can impose liability for the entirecost of cleanup on any responsible party without regard to negligence or fault and impose liability on us for the conduct of or conditionsothers have caused, or for our acts that complied with all applicable

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requirements when we performed them. It is possible that other developments, such as stricter environmental laws and regulations, andclaims for damages to property or persons resulting from our operations, would result in substantial costs and liabilities. Our insurancepolicies and the contractual indemnity protection we seek to obtain from our customers may not be sufficient or effective to protect us underall circumstances or against all risks involving compliance with environmental laws and regulations.Our internal controls may not be sufficient to achieve all stated goals and objectives.Our internal controls and procedures were developed through a process in which our management applied its judgment in assessing thecosts and benefits of such controls and procedures, which, by their nature, can provide only reasonable assurance regarding the controlobjectives. The design of any system of internal controls and procedures is based, in part, on various assumptions about the likelihood offuture events. We cannot assure that any design will succeed in achieving its stated goals under all potential future conditions, regardless ofhow remote.The use of estimates could result in future adjustments to our assets, liabilities and results of operations.The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires that ourmanagement make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets andliabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actualresults could differ from those estimates.Uncertainties in the future interpretation and application of the 2017 U.S. tax reform legislation could materially affect our taxobligations and effective tax rate.U.S. tax reform legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act") was enacted on December 22, 2017, andsignificantly affected U.S. tax law by changing how the United States imposes income tax on multinational corporations. The U.S.Department of the Treasury has broad authority to issue regulations and interpretative guidance that may significantly impact how we willapply the law and could impact our results of operations beginning in the period issued. Although we have reflected the effects of the TaxAct in our financial statements, regulatory guidance continues to be issued by the U.S. tax authorities. Any changes in the interpretation ofthe Tax Act as a result of such future regulatory guidance, which could materially affect our tax obligations and effective tax rate, will berecorded in the period that current or future proposed regulations become law.We may issue preferred stock whose terms could adversely affect the voting power or value of our common stock.Our certificate of incorporation authorizes us to issue, without the approval of our shareholders, one or more classes or series of preferredstock having such preferences, powers and relative, participating, optional and other rights, including preferences over our common stockrespecting dividends and distributions, as our board of directors may determine. The terms of one or more classes or series of preferredstock could adversely impact the voting power or value of our common stock. For example, we might grant holders of preferred stock theright to elect some number of our directors in all events or on the happening of specified events or the right to veto specified transactions.Similarly, the repurchase or redemption rights or liquidation preferences we might assign to holders of preferred stock could affect theresidual value of the common stock.Provisions in our corporate documents and Delaware law could delay or prevent a change in control of our company, even ifthat change would be beneficial to our shareholders.

The existence of some provisions in our corporate documents and Delaware law could delay or prevent a change in control of our company,even if that change would be beneficial to our shareholders. Our certificate of incorporation and bylaws contain provisions that may makeacquiring control of our company difficult, including:

• provisions relating to the classification, nomination and removal of our directors;• provisions regulating the ability of our shareholders to bring matters for action at annual meetings of our shareholders;

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• provisions requiring the approval of the holders of at least 80% of our voting stock for a broad range of business combinationtransactions with related persons; and

• the authorization given to our board of directors to issue and set the terms of preferred stock.

In addition, the Delaware General Corporation Law imposes restrictions on mergers and other business combinations between us and anyholder of 15% or more of our outstanding common stock.

Item 1B. Unresolved Staff Comments.None.

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Item 2. Properties.

We maintain office, shop and yard facilities in various parts of the world to support our operations. We consider these facilities, which wedescribe below, to be suitable for their intended use and adequate for our current operations. In these locations, we typically own or leaseoffice facilities for our administrative and engineering staff, shops equipped for fabrication, testing, repair and maintenance activities andwarehouses and yard areas for storage and mobilization of equipment to work sites. All sites are available to support any of our businesssegments as the need arises. The groupings that follow associate our significant offices with the primary business segment they serve.

Energy Services and Products. In general, our Energy Services and Products business segments share facilities. Our location in MorganCity, Louisiana consists of ROV manufacturing and training facilities, vessel docking facilities, open and covered warehouse space andoffices. The Morgan City facilities primarily support operations in the United States. We have regional support offices for our North Sea,Africa, Brazil and Southeast Asia operations in: Aberdeen, Scotland; Stavanger and Bergen, Norway; Dubai, U.A.E.; Rio de Janeiro andMacaé, Brazil; Luanda, Angola; Chandigarh, India; Perth, Australia; Kuala Lumpur, Malaysia; Baku, Azerbaijan; and Singapore. We also haveoperational bases in various other locations.

We use workshop and office space in Houston, Texas in our Subsea Products, Subsea Projects and Asset Integrity business segments. Ourprincipal manufacturing facilities for our Subsea Products segment are located in or near: Houston, Texas; Panama City, Florida; Aberdeenand Rosyth, Scotland; Nodeland and Stavanger, Norway; Perth, Australia; Luanda, Angola; and Niterói and Macaé, Brazil. Each of thesemanufacturing facilities is suitable for its intended purpose and has sufficient capacity to respond to increases in demand for our subseaproducts that may be reasonably anticipated in the foreseeable future.

For a description of the vessels we use in our Subsea Projects operations, see the discussion in Item 1. "Business" under the heading "GENERAL DEVELOPMENT OF BUSINESS – Energy Services and Products – Subsea Projects ."

Advanced Technologies. Our primary facilities for our Advanced Technologies segment are leased offices and workshops in Hanover,Maryland. We have regional offices in Chesapeake, Virginia; Bremerton, Washington; Pearl Harbor, Hawaii; and San Diego, California, whichsupport our services for the U.S. Navy. We also have an office in Orlando, Florida, which supports our commercial theme park animationactivities, facilities in Utrecht, Netherlands, to support robotic activities, and facilities in Houston, Texas, to support our space industryactivities.

Item 3. Legal Proceedings.

For information regarding legal proceedings, see the discussion under the caption "Litigation" in Note 7, "Commitments and Contingencies,"of our Notes to Consolidated Financial Statements included in this report, which discussion we incorporate by reference into this Item.

Item 4. Mine Safety Disclosures.Not applicable.

Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.Our common stock is listed on the New York Stock Exchange under the symbol OII. Our company Web site address is www.oceaneering.com

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On February 22, 2019 , there were 577 holders of record of our common stock. On that date, the closing sales price, as quoted on the NewYork Stock Exchange, was $15.80 . In 2017, we declared quarterly dividends of $0.15 per share in the first three quarters. With an outlookfor diminishing cash flow from operations for 2018, we felt it prudent to focus our resources on growth and positioning the company for thefuture. Consequently, our Board did not declare quarterly dividends to be paid in the fourth quarter of 2017 or during 2018. Although we willcontinue to review our dividend position on a quarterly basis, we do not anticipate our Board reinstating a quarterly cash dividend until wesee a significant improvement in our market outlook and projected free cash flow.

In December 2014, our Board of Directors approved a share repurchase program under which we may repurchase up to 10 million shares ofour common stock on a discretionary basis. The program calls for the repurchases to be made in the open market, or in privately negotiatedtransactions from time to time, in compliance with applicable laws, rules and regulations, including Rule 10b-18 under the SecuritiesExchange Act of 1934, as amended, subject to market and business conditions, levels of available liquidity, cash requirements for otherpurposes, applicable legal requirements and other relevant factors. The timing and amount of any repurchases will be determined bymanagement based on its evaluation of these factors. We expect that any shares repurchased under the program will be held as treasurystock for future use. The new program does not obligate us to repurchase any particular number of shares. Under the program, we hadrepurchased 2.0 million shares of our common stock for $100 million through December 31, 2015 . We have not repurchased any sharesunder the program since December 31, 2015 .

EQUITY COMPENSATION PLAN INFORMATION

The following presents equity compensation plan information as of December 31, 2018 :

Plan Category  

Number ofsecurities to be issued

upon exercise ofoutstanding

options, warrants andrights  

Weighted-average exerciseprice of

outstanding options,warrants and rights  

Number of securitiesremaining availablefor future issuance

under equity compensation plans(excluding securities

reflectedin the first column)

Equity compensation plans approved by security holders   1,443,897   N/A   2,178,923Equity compensation plans not approved by security holders   —   N/A   —Total   1,443,897   N/A   2,178,923

In the table above, the number of securities to be issued upon exercise of outstanding options, warrants and rights shown as of December 31, 2018 are restricted stock units and shares of restricted stock granted under our 2010 incentive plan, as amended.

At December 31, 2018 , there were: (1) no shares of Oceaneering common stock under equity compensation plans not approved by securityholders available for grant; and (2) 2,178,923 shares of Oceaneering common stock under equity compensation plans approved by securityholders available for grant in the form of stock options, stock appreciation rights or stock awards. We have not granted any stock optionssince 2005 and the Compensation Committee of our Board of Directors has expressed its intention to refrain from using stock options as acomponent of employee compensation for our executive officers and other employees for the foreseeable future. Additionally, our Board ofDirectors has expressed its intention to refrain from using stock options as a component of nonemployee director compensation for theforeseeable future. For a description of the material features of our equity compensation arrangements, see the discussion under theheading " Incentive Plan " in Note 9 of Notes to Consolidated Financial Statements included in this report.

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PERFORMANCE GRAPH

The following graph compares our total shareholder return to the Standard & Poor's 500 Stock Index ("S&P 500") and the PHLX Oil ServiceSector Index from December 31, 2013 through December 31, 2018 . The PHLX Oil Service Sector Index is designed to track theperformance of a set of companies involved in the oil services sector.

It is assumed in the graph that: (1) $100 was invested in Oceaneering Common Stock, the S&P 500 and the PHLX Oil Service Sector Indexon December 31, 2013; and (2) any Oceaneering dividends are reinvested. The shareholder return shown is not necessarily indicative offuture performance.

    December 31,    2013   2014   2015   2016   2017   2018                         

Oceaneering   100.00   75.68   49.38   38.40   29.30   16.77                         

S&P 500   100.00   113.69   115.26   129.05   157.22   150.33                         

PHLX Oil Service Sector   100.00   76.23   58.40   69.49   57.54   31.52                         

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Item 6. Selected Financial Data.The following table sets forth certain selected historical consolidated financial data and should be read in conjunction with Management'sDiscussion and Analysis of Financial Condition and Results of Operation and our Consolidated Financial Statements and Notes included in thisreport. The following information may not be indicative of our future operating results.

Results of Operations:

  Year Ended December 31,

(in thousands, except per share amounts)   2018   2017   2016   2015   2014

Revenue   $ 1,909,482   $ 1,921,507   $ 2,271,603   $ 3,062,754   $ 3,659,624

Cost of services and products   1,780,256   1,726,897   1,992,376   2,457,325   2,800,423

Gross margin   129,226   194,610   279,227   605,429   859,201

Selling, general and administrative expense   198,259   183,954   208,463   231,619   230,871

Goodwill impairment   76,449   —   —   —   —

Income (loss) from operations   $ (145,482)   $ 10,656   $ 70,764   $ 373,810   $ 628,330

Net income (loss)   $ (212,327)   $ 166,398   $ 24,586   $ 231,011   $ 428,329

Cash dividends declared per Share   $ —   $ 0.45   $ 0.96   $ 1.08   $ 1.03

Diluted earnings (loss) per share   $ (2.16)   $ 1.68   $ 0.25   $ 2.34   $ 4.00

Depreciation and amortization   $ 293,590   $ 213,519   $ 250,247   $ 241,235   $ 229,779

Capital expenditures, including business acquisitions   $ 178,038   $ 104,958   $ 142,513   $ 423,988   $ 426,671

Other Financial Data:

  As of December 31,

(dollars in thousands)   2018   2017   2016   2015   2014

Working capital ratio   2.52   2.72   2.48   2.46   2.52

Working capital   $ 750,148   $ 751,605   $ 754,231   $ 901,537   $ 1,034,413

Total assets   $ 2,824,998   $ 3,023,950   $ 3,130,315   $ 3,429,536   $ 3,504,940

Long-term debt   $ 786,580   $ 792,312   $ 793,058   $ 795,836   $ 743,469

Shareholders' equity   $ 1,409,235   $ 1,659,164   $ 1,516,643   $ 1,578,734   $ 1,657,471

Goodwill as a percentage of Shareholders' equity   29%   27%   29%   27%   20%

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Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

Certain statements in this annual report on Form 10-K, including, without limitation, statements regarding the following matters, areforward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995:

• our business strategy;• industry conditions;• seasonality;• our expectations about 2019 results of operations, items below the operating income line and segment operating results, and the

factors underlying those expectations, including our expectations about demand and pricing for our energy services and products asa result of the factors we specify in " Overview " and " Results of Operations " below;

• our backlog;• projections relating to floating rig demand and subsea tree installations;• the adequacy of our liquidity, cash flows and capital resources to support our operations and internally generated growth initiatives;• our projected capital expenditures for 2019 ;• our plans for future operations (including planned additions to and retirements from our remotely operated vehicle ("ROV") fleet, our

intent regarding the new multiservice subsea support vessel scheduled to be placed into service in the second quarter of 2019 andother capital expenditures);

• our ability and intent to redeem Angolan bonds and repatriate cash;• our anticipation of a discrete tax item in the first quarter of 2019 ;• our expectations regarding shares repurchased under our share repurchase plan;• our expectations regarding the implementation of new accounting standards and related policies, procedures and controls;• our expectations about our ROV fleet utilization in the future; and• our expectations regarding the effect of inflation in the near future.

These forward-looking statements are subject to various risks, uncertainties and assumptions, including those we refer to under theheadings " Cautionary Statement Concerning Forward-Looking Statements " and " Risk Factors " in Part I of this report. Although we believethat the expectations reflected in such forward-looking statements are reasonable, because of the inherent limitations in the forecastingprocess, as well as the relatively volatile nature of the industries in which we operate, we can give no assurance that those expectations willprove to have been correct. Accordingly, evaluation of our future prospects must be made with caution when relying on forward-lookinginformation.

OverviewThe table that follows sets out our revenue and operating results for 2018 , 2017 and 2016 .

  Year Ended December 31,

(dollars in thousands)   2018   2017   2016Revenue   $1,909,482   $ 1,921,507   $ 2,271,603Gross Margin   129,226   194,610   279,227Gross Margin %   7 %   10%   12%Operating Income (Loss)   (145,482)   10,656   70,764Operating Income (Loss) %   (8)%   1%   3%Net Income (Loss)   (212,327)   166,398   24,586

Our business depends substantially on the level of spending on offshore developments by our customers in the energy industry. During 2018, we generated approximately 78% of our revenue, from services and products we provide to the energy industry. The full year of 2018unfolded as we expected, with increased levels of energy services and products activity being more than offset by

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lower pricing for our energy services and products. Overall, our 2018 revenue approximated our 2017 revenue, with increases in our ROV,Subsea Projects, Asset Integrity and Advance Technologies segments, offset by a substantial decrease in our Subsea Products segment.

In 2018 , on a consolidated level, we had a net loss of $212 million , or diluted loss of $2.16 per share, compared to net income of $166million , or diluted earnings of $1.68 per share, in 2017 . The $378 million decrease from 2017 net income was primarily attributable toincome taxes. In 2018, we had income tax expense of $26 million, due primarily to discrete tax expense adjustments, and in 2017, we hadan income tax benefit of $184 million, due primarily to a $189 million tax benefit resulting from the December 2017 enactment of U.S. taxreform legislation commonly referred to as the 2017 Tax Cuts and Jobs Act (the "Tax Act"). Year-over-year, our change in tax expense(benefit) represented $210 million of the previously mentioned decrease in net income.

Additionally, we had an operating loss of $145 million in 2018 compared to operating income of $11 million in 2017. For 2018, our revenuewas essentially flat with 2017 as we experienced increased levels of offshore energy activities, however, competitive pressures resulted inlower pricing for our services and products in our energy related segments. Due to lower profit contributions from our energy services andproducts businesses, operating results decreased $156 million from 2017. The declines in profitability were most notably in:

• our Subsea Projects segment, which had a $96 million decrease in the operating results on $37 million higher revenue, with a pre-taxgoodwill impairment of $76 million in 2018 , largely resulting from the protracted downturn in survey and vessel activity;

• our Subsea Products segment, which had a $40 million decrease in operating income on $111 million less revenue; and• our ROV segment, which had a $21 million decrease in operating income on relatively flat revenue.

In 2018 , we invested in the following capital initiatives:

• $100 million to add capabilities in our Subsea Projects segment, including the acquisition of Ecosse Subsea Limited ("Ecosse") for $68million and the continued construction of a new subsea support vessel, Ocean Evolution , scheduled to be placed into service duringthe second quarter of 2019;

• $46 million to upgrade our work-class ROVs; and• $25 million to add capabilities in our Subsea Products segment.

We expect our 2019 operating results to improve year-over-year based on increased activity across all of our segments. Apart fromseasonality, we view pricing and margins in the current market to be relatively stable. Operationally, we anticipate all of our segments, withthe exception of Asset Integrity, to generate improved yearly results, with the largest increase in profitability occurring in Subsea Productsand Advanced Technologies, beginning in the second quarter. Our 2019 forecast is based on the expectation of higher overall activity andstabilized pricing within our energy segments, modest activity improvement within our government businesses and improved performance inour commercial businesses.

We use our ROVs to provide drilling support, vessel-based inspection, maintenance and repair, subsea hardware installation, construction,and pipeline inspection services to customers in the energy industry. Most of our ROVs have historically been used to provide drill supportservices. Therefore, the number of floating drilling rigs on hire is a leading market indicator for this business. The following table showsaverage floating rigs under contract and our ROV utilization.

  2018   2017   2016Average number of floating rigs under contract 148   150   177ROV days on hire (in thousands) 52   47   60ROV utilization 51%   46%   53%

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Demand for floating rigs is the primary leading indicator of the strength of the deepwater market. According to industry data published byIHS Petrodata, excluding rigs under construction, at the end of 2018 there were 244 floating drilling rigs in operation or available for workthroughout the world, with 146 of those rigs under contract. Of the 146 rigs under contract, 37 have contract terms expiring during the firstsix months of 2019 . The offshore rig count in 2018 was relatively stable, at approximately 148 rigs.

In addition to floating rig demand, the number of subsea tree completions is another leading indicator, and the primary demand driver forour Subsea Products lines. According to industry data published by Wood MacKenzie in December 2018, there will be 254 subsea treeinstallations in 2019 , compared to 275 in 2018 , 274 in 2017 and 280 in 2016 . As many as 25 projects in water depths greater than 400meters are expected to reach "final investment decision" in 2019, up from less then 10 in 2018.

Below the operating income line, we expect:

• a loss on our equity investment in Medusa Spar LLC, due to depreciation more than offsetting cash earnings;• increased interest expense as a result of a full year of payments on the $300 million of Senior Notes we issued in February 2018 and

higher floating interest rates, and less than a full year of capitalized interest on the Ocean Evolution; and• lower foreign currency exchange losses as a result of lower cash balances in the Angolan kwanza.

In 2019 , our income tax payments, estimated to total $25 million, are expected to relate to taxes incurred in countries that impose tax onthe basis of in-country revenue, without regard to the profitability of such operations. At this time, we do not foresee realizing a current-year tax benefit from our projected consolidated pre-tax loss, so any discussion of an estimated effective tax rate would not be meaningful.

Critical Accounting Policies and EstimatesWe have based the following discussion and analysis of our financial condition and results of operations on our consolidated financialstatements, which we have prepared in conformity with accounting principles generally accepted in the United States. These principlesrequire us to make various estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date ofthe financial statements and the reported amounts of revenue and expense during the periods we present. We base our estimates onhistorical experience, available information and other assumptions we believe to be reasonable under the circumstances. On an ongoingbasis, we evaluate our estimates; however, our actual results may differ from these estimates under different assumptions or conditions.The following discussion summarizes the accounting policies we believe (1) require our management's most difficult, subjective or complexjudgments and (2) are the most critical to our reporting of results of operations and financial position.

Revenue Recognition. Effective January 1, 2018, we adopted Accounting Standard Update ("ASU") 2014-09, "Revenue from Contractswith Customers," which implemented Accounting Standards Codification Topic 606 ("ASC 606"). We have used the modified retrospectivemethod applied to those contracts that were not completed as of January 1, 2018, and have utilized the practical expedient to reflect theeffect on contract modifications in the aggregate. The cumulative effect of applying ASC 606 has been recognized as an adjustment toretained earnings as of January 1, 2018. The comparative information with respect to prior periods has not been retrospectively restatedand continues to be reported under the accounting standards in effect for those periods.

All of our revenue is realized through contracts with customers. We recognize our revenue according to the contract type. On a daily basis,we recognize service revenue over time for contracts that provide for specific time, material and equipment charges, which we billperiodically, ranging from weekly to monthly. We use the input method to faithfully depict revenue recognition, because each day of serviceprovided represents value to the customer. The performance obligations in these contracts are satisfied, and revenue is recognized, as thework is performed. We have used the

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expedient available to recognize revenue when the billing corresponds to the value realized by the customer where appropriate.

We account for significant fixed-price contracts, mainly relating to our Subsea Products segment, and to a lesser extent in our SubseaProjects and Advanced Technologies segments, by recognizing revenue over time using an input, cost-to-cost measurement percentage-of-completion method. We use the input cost-to-cost method to faithfully depict revenue recognition. This commonly used method allowsappropriate calculation of progress on our contracts. A performance obligation is satisfied as we create a product on behalf of the customerover the life of the contract. The remainder of our revenue is recognized at the point in time when control transfers to the customer, thussatisfying the performance obligation.

We have elected to recognize the cost for freight and shipping as an expense when incurred. Taxes assessed by a governmental authoritythat are both imposed on and concurrent with a specific revenue-producing transaction, and that are collected by us from customers, areexcluded from revenue.

In our service-based business lines, which principally charge on a day rate basis for services provided, there is no significant impact in thepattern of revenue and profit recognition as a result of implementation of ASC 606. In our product-based business lines, there are impactson the pattern of our revenue and profit recognition in our contracts using the percentage-of-completion method, as a result of therequirement to exclude uninstalled materials and significant inefficiencies from the measure of progress. This occurs in our Subsea Productssegment.

We apply judgment in the determination and allocation of transaction price to performance obligations, and the subsequent recognition ofrevenue, based on the facts and circumstances of each contract. We routinely review estimates related to our contracts and, where required,reflect revisions to profitability in earnings immediately. If an element of variable consideration has the potential for a significant futurereversal of revenue, we will constrain that variable consideration to a level intended to remove the potential future reversal. If a currentestimate of total contract cost indicates an ultimate loss on a contract, we recognize the projected loss in full when we determine it. In prioryears, we have recorded adjustments to earnings as a result of revisions to contract estimates. We strive to estimate our contract costs andprofitability accurately. However, there could be significant adjustments to overall contract costs in the future, due to changes in facts andcircumstances.

In general, our payment terms consist of those services billed regularly as provided and those products delivered at a point in time, whichare invoiced after the performance obligation is satisfied. Our product and service contracts with milestone payments due at agreed progresspoints during the contract are invoiced when those milestones are reached, which may differ from the timing of revenue recognition. Ourpayment terms generally do not provide financing of contracts to customers, nor do we receive financing from customers as a result of theseterms.

Property and Equipment and Long-lived Intangible Assets. We periodically and upon the occurrence of a triggering event review therealizability of our property and equipment and long-lived intangible assets to determine whether any events or changes in circumstancesindicate that the carrying amount of the asset may not be recoverable. For long-lived assets to be held and used, we base our evaluation onimpairment indicators such as the nature of the assets, the future economic benefits of the assets, any historical or future profitabilitymeasurements and other external market conditions or factors that may be present. If such impairment indicators are present or otherfactors exist that indicate that the carrying amount of an asset may not be recoverable, we determine whether an impairment has occurredthrough the use of an undiscounted cash flows analysis of the asset at the lowest level for which identifiable cash flows exist. If animpairment has occurred, we recognize a loss for the difference between the carrying amount and the fair value of the asset. For assets heldfor sale or disposal, the fair value of the asset is measured using fair market value less cost to sell. Assets are classified as held-for-salewhen we have a plan for disposal of certain assets and those assets meet the held for sale criteria.

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We charge the costs of repair and maintenance of property and equipment to operations as incurred, while we capitalize the costs ofimprovements that extend asset lives or functionality.

Goodwill. Our goodwill is evaluated for impairment annually and whenever we identify certain triggering events or circumstances that wouldmore likely than not reduce the fair value of a reporting unit below its carrying amount. Events or circumstances that might indicate aninterim evaluation is warranted include, among other things, unexpected adverse business conditions, macro and reporting unit specificeconomic factors (for example, interest rate and foreign exchange rate fluctuations, and loss of key personnel), supply costs, unanticipatedcompetitive activities and acts by governments and courts.

In our evaluation of goodwill, we perform a qualitative or quantitative impairment test. Under the qualitative approach, if we determine thatit is more likely than not that the fair value of a reporting unit is less than its carrying amount, we are required to perform the quantitativeanalysis to determine the fair value for the reporting unit. Thereafter, we compare the fair value of the reporting unit with its carryingamount and recognize an impairment loss for the amount by which the carrying amount exceeds the fair value of the reporting unit. The lossrecognized should not exceed the total amount of goodwill allocated to the reporting unit. We also consider income tax effects from any taxdeductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable.

The fair value of all our reporting units in our 2017 quantitative analysis exceeded their respective carrying amounts by a significant marginwith the exception of one reporting unit, Subsea Projects, the fair value of which only exceeded its carrying value by approximately 20%.Our Subsea Projects reporting unit had the largest balance of goodwill and newer goodwill that would be subject to impairment if businessconditions deteriorated subsequent to the acquisitions generating the goodwill.

In our 2018 annual goodwill evaluation, we performed a qualitative assessment for our Subsea Projects reporting unit. Due to the protracteddownturn in survey and vessel activity, we determined that it was more likely than not that the fair value was less than the carrying value.As a result, we determined that a quantitative assessment was necessary for our Subsea Projects reporting unit.

In our 2018 quantitative analysis for the Subsea Projects reporting unit, we estimated the fair value by weighing the results from the incomeapproach and the market approach. These valuation approaches consider a number of factors that include, but are not limited to,prospective financial information, growth rates, terminal value, discount rates and comparable multiples of similar companies in our industryand require us to make certain assumptions and estimates regarding industry economic factors and future profitability of our business.Based on this quantitative test, we determined that the fair value for Subsea Projects was less than its carrying value and, as a result, werecorded a pre-tax goodwill impairment loss of $76 million in the Subsea Project reporting unit. The goodwill impairment was included as acomponent of "Income (Loss) From Operations" in our Consolidated Statement of Operations for the year ended December 31, 2018 . Forthe remaining reporting units, qualitative assessments were performed and we concluded that it was more likely than not that the fair valueof the reporting unit was more than the carrying value of the reporting unit.

Income Taxes. Our tax provisions are based on our expected taxable income, statutory rates and tax-planning opportunities available to usin the various jurisdictions in which we operate. The determination of taxable income in any jurisdiction requires the interpretation of therelated tax laws. We are at risk that a taxing authority's final determination of our tax liabilities may differ from our interpretation. Oureffective tax rate may fluctuate from year to year, as our operations are conducted in different taxing jurisdictions, the amount of pre-taxincome fluctuates and our estimates regarding the realizability of items such as foreign tax credits may change.

We account for any applicable interest and penalties on uncertain tax positions as a component of our provision for income taxes on ourfinancial statements. Current income tax expense represents either nonresident withholding taxes or the liabilities expected to be reflectedon our income tax returns for the current year, while the net deferred income tax expense or benefit represents the change in the balance ofdeferred tax assets or liabilities as reported on our balance sheet.

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We establish valuation allowances to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred taxassets will not be realized in the future. Provisions for valuation allowances impact our income tax provision in the period in which suchadjustments are identified and recorded.

In March 2016, the FASB issued ASU 2016-09, " Compensation – Stock Compensation Improvements to Employee Share-Based PaymentAccounting ." This update requires that all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-basedpayment awards) should be recognized as income tax expense or benefit in the statement of operations. The tax effects of exercised orvested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess taxbenefits regardless of whether the benefit reduces taxes payable in the current period. Currently, an entity must determine, for each award,whether the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes resultsin either an excess tax benefit or a tax deficiency. The amendments in this update are effective for us beginning January 1, 2017. ThroughDecember 31, 2016, we recognized excess tax benefits in additional paid-in capital, and tax deficiencies have been recognized as an offsetto accumulated excess tax benefits. In 2017 and 2018, we recorded a tax deficiency in the first quarter and, under this new standard, werecognized it as a discrete item in our statement of operations rather than in additional paid-in capital. We also expect a tax deficiency in thefirst quarter of 2019, which will be recognized as a discrete item in our statement of operations.

As further discussed in Note 4, "Income Taxes," of our Notes to Consolidated Financial Statements included in this report, the Tax Act wasenacted on December 22, 2017, and significantly affected how the United States imposes income tax on multinational corporations. The U.S.Department of the Treasury and other regulatory bodies continue to finalize changes to existing laws and regulations which may result fromthe Tax Act. In accordance with SEC Staff Accounting Bulletin No. 118 ("SAB No. 118"), we recorded provisional estimates to reflect theeffects of the provisions of the Tax Act on our income tax assets and liabilities as of December 31, 2017. We have collected additionalinformation to complete our assessment of the impacts of these changes on our operations and recorded income tax assets and liabilities asof December 31, 2018 .

For a summary of our major accounting policies and a discussion of recently adopted accounting standards, please see Note 1 of our Notesto Consolidated Financial Statements included in this report.

Liquidity and Capital Resources

We consider our liquidity and capital resources adequate to support our operations and growth initiatives. At December 31, 2018 , we hadworking capital of $750 million , including cash and cash equivalents of $354 million . Additionally, we had $500 million available throughour revolving credit facility under a credit agreement further described below.

In November 2014, we completed the public offering of $500 million aggregate principal amount of 4.650% Senior Notes due 2024 (the"2024 Senior Notes"). We pay interest on the 2024 Senior Notes on May 15 and November 15 of each year. The 2024 Senior Notes arescheduled to mature on November 15, 2024.

In February 2018, we completed the public offering of $300 million aggregate principal amount of 6.000% Senior Notes due 2028 (the "2028Senior Notes"). We pay interest on the 2028 Senior Notes on February 1 and August 1 of each year. The 2028 Senior Notes are scheduled tomature on February 1, 2028.

We may redeem some or all of the 2024 Senior Notes and the 2028 Senior Notes (collectively, the "Senior Notes") at specified redemptionprices. We used the net proceeds from the 2028 Senior Notes to repay our term loan indebtedness described further below.

In October 2014, we entered into a credit agreement (as amended, the "Credit Agreement") with a group of banks. The Credit Agreementinitially provided for a $500 million five-year revolving credit

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facility (the "Revolving Credit Facility"). Subject to certain conditions, the aggregate commitments under the Revolving Credit Facility maybe increased by up to $300 million at any time upon agreement between us and existing or additional lenders. Borrowings under theRevolving Credit Facility may be used for general corporate purposes. The Credit Agreement also provided for a $300 million term loan,which we repaid in full in February 2018, using net proceeds from the issuance of our 2028 Senior Notes referred to above, and cash onhand.

In February 2018, we entered into Agreement and Amendment No. 4 to the Credit Agreement ("Amendment No. 4"). Amendment No. 4amended the Credit Agreement to, among other things, extend the maturity of the Revolving Credit Facility to January 25, 2023 with theextending Lenders, which represent 90% of the existing commitments of the Lenders, such that the total commitments for the RevolvingCredit Facility will be $500 million until October 25, 2021, and thereafter $450 million until January 25, 2023.

Borrowings under the Revolving Credit Facility bear interest at an Adjusted Base Rate or the Eurodollar Rate (both as defined in the CreditAgreement), at our option, plus an applicable margin based on our Leverage Ratio (as defined in the Credit Agreement) and, at our election,based on the ratings of our senior unsecured debt by designated ratings services, thereafter to be based on such debt ratings. Theapplicable margin varies: (1) in the case of advances bearing interest at the Adjusted Base Rate, from 0.125% to 0.750% ; and (2) in thecase of advances bearing interest at the Eurodollar Rate, from 1.125% to 1.750% . The Adjusted Base Rate is the highest of (1) the perannum rate established by the administrative agent as its prime rate, (2) the federal funds rate plus 0.50% and (3) the daily one-monthLIBOR plus 1% . We pay a commitment fee ranging from 0.125% to 0.300% on the unused portion of the Revolving Credit Facility,depending on our Leverage Ratio. The commitment fees are included as interest expense in our consolidated financial statements.

The Credit Agreement contains various covenants that we believe are customary for agreements of this nature, including, but not limited to,restrictions on our ability and the ability of each of our subsidiaries to incur debt, grant liens, make certain investments, make distributions,merge or consolidate, sell assets and enter into certain restrictive agreements. We are also subject to a maximum adjusted totalCapitalization Ratio (as defined in the Credit Agreement) of 55%. The Credit Agreement includes customary events of default and associatedremedies. As of December 31, 2018 , we were in compliance with all the covenants set forth in the Credit Agreement.

We have two interest rate swaps in place on a total of $200 million of the 2024 Senior Notes for the period to November 2024. See Note 7 ofNotes to Consolidated Financial Statements included in this report for a description of these interest rate swaps.

We incurred $6.9 million and $4.2 million of issuance costs related to the 2024 Senior Notes and the 2028 Senior Notes, respectively, and$2.6 million of new loan costs, including costs of the amendments prior to Amendment No. 4, related to the Credit Agreement. The costs,net of accumulated amortization, are included as a reduction of Long-term debt in our Consolidated Balance Sheet, as it pertains to theSenior Notes, and in Other non-current assets as it pertains to the Credit Agreement. We are amortizing these costs to Interest expensethrough the maturity date for the Senior Notes and to January 2023 for the Credit Agreement.

Our maximum outstanding indebtedness during 2018 under the Credit Agreement and the Senior Notes was $800 million, and our totalinterest costs, including commitment fees, were $45 million .

Our capital expenditures, including business acquisitions, for 2018 , 2017 and 2016 were $178 million , $105 million and $143 million ,respectively. Our capital expenditures in 2018 included $46 million in our ROV segment, $25 million in our Subsea Products segment and$100 million in our Subsea Projects segment. Our capital expenditures in 2018 included the acquisition of Ecosse for approximately $68million in our Subsea Projects segment. Ecosse builds and operates seabed preparation, route clearance and trenching tools for submarinecables and pipelines on an integrated basis that includes vessels, ROVs and survey services. Enabling technologies acquired in thetransaction include Ecosse's modular seabed system, capable of completing the entire trenching

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work scope (route preparation, boulder clearance, trenching and backfill), and its newly developed trenching system. These systemsprimarily serve the shallow water offshore renewables market.

Our capital expenditures in 2017 included $40 million in our ROV segment, $28 million in our Subsea Products segment and $30 million inour Subsea Projects segment. Our capital expenditures in 2016 included: $50 million in our ROV segment; $57 million in our SubseaProducts segment and $26 million in our Subsea Projects segment. For 2019 , we expect our capital expenditures to be in the range of $105 million to $125 million , exclusive of business acquisitions. Thisincludes approximately $40 million to $50 million of maintenance capital expenditures and $65 million to $75 million of growth capitalexpenditures, including the purchase of equipment needed to support the Brazil drill pipe riser contract awarded in 2018 and the finalpayments to complete the Jones Act vessel Ocean Evolution in our Subsea Projects segment. We expect to place the Ocean Evolution intoservice during the second quarter of 2019 .

Our capital expenditures during 2018 , 2017 and 2016 included $46 million , $40 million and $50 million , respectively, in our ROV segment,principally for upgrades to our ROV fleet and to replace certain units we retired and for facilities infrastructure to support our ROV fleet. Wecurrently plan to add new ROVs only to meet contractual commitments. We added six , seven and six ROVs to our fleet and retired ten ,eight and 41 units during 2018 , 2017 and 2016 , respectively, resulting in a total of 275 work-class systems in our fleet at December 31,2018 . Over the past three years, we retired a greater number of ROVs than we have added due to market conditions and outlook.

We previously had several deepwater vessels under long-term charter. The last of our long-term charters expired in March 2018. With thecurrent market conditions, our philosophy is to attempt to charter vessels for specific projects on a back-to-back basis with the vesselowners. This generally minimizes our contract exposure by closely matching our obligations with our revenue. Unless indicated otherwise,each of the chartered vessels discussed below is a deepwater multiservice subsea support vessel outfitted with two of our high-specificationwork-class ROVs.

In 2012, we moved the chartered vessel Ocean Intervention III to Angola and also chartered the Bourbon Oceanteam 101 to work on athree-year field support vessel services contract for a unit of BP plc. We had extended the charter of the Bourbon Oceanteam 101 to January2017. However, in early 2016, the customer exercised its right, under the field support vessel services contract, to terminate its use of theBourbon Oceanteam 101 at the end of May 2016. Under the terms of the contract, the costs incurred by us associated with the early releaseand demobilization of the vessel were reimbursed by the customer. Following the release of the vessel, we redelivered it to the vesselsupplier. The charter for the Ocean Intervention III expired at the end of July 2017. Under the field support vessel services contract, whichwas extended through January 2022, we are continuing to supply project management and engineering services. We also provide ROVtooling and asset integrity services as requested by the customer. Chartered vessels and barges are provided to the customer upon request.

In March 2013, we commenced a five-year bareboat charter for a Jones Act-compliant multiservice support vessel, the Ocean Alliance , wehave been using in the U.S. Gulf of Mexico. In January 2015, we commenced a two-year contract with a customer for the use of the OceanAlliance, which expired in January 2017. We returned the Ocean Alliance to the vessel owner in the first quarter of 2018 and continue tomarket the vessel, now renamed the Cade Candies , for spot market work in the U.S. Gulf of Mexico on a back-to-back basis with the owner.

In December 2013, we commenced a three-year charter for the Normand Flower, a multiservice subsea marine support vessel. We mademodifications to the vessel and used the vessel in the U.S. Gulf of Mexico to perform inspection, maintenance and repair projects andhardware installations. In December 2016, we declined our option to extend the charter and the vessel was released.

In November 2015, we commenced a two-year charter for the use of the Island Pride, a multiservice subsea marine support vessel. We usedthe vessel under a two-year contract to provide field support services off the coast of India for an oil and gas customer based in India. In

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November 2017, that field services contract expired and we declined our option to extend the vessel charter.

We also charter or lease vessels on a short-term basis as necessary to augment our fleet.

During the third quarter of 2013, we signed an agreement with a shipyard for the construction of a subsea support vessel, to be named theOcean Evolution . We expect to take delivery in the first quarter and place the vessel into service in the second quarter of 2019. We intendfor the vessel to be U.S. flagged and documented with a coastwise endorsement by the U.S. Coast Guard. The vessel has an overall lengthof 353 feet, a Class 2 dynamic positioning system, accommodations for 110 personnel, a helideck, a 250-ton active heave-compensatedcrane, a working moonpool, and two of our high specification 4,000 meter work-class ROVs. The vessel is also equipped with a satellitecommunications system capable of transmitting streaming video for real-time work observation by shore personnel. We anticipate the vesselwill be used to augment our ability to provide subsea intervention services in the U.S. Gulf of Mexico. These services are required to performinspection, maintenance and repair projects and hardware installations.

Our principal source of cash from operating activities is our net income (loss), adjusted for the non-cash expenses of depreciation andamortization, deferred income taxes and noncash compensation under our restricted stock plans. Our $37 million , $136 million and $339million of cash provided from operating activities in 2018 , 2017 and 2016 , respectively, were affected by cash increases (decreases) of: (1)$(87) million , $13 million and $123 million , respectively, of changes in accounts receivable; (2) $(12) million , $66 million and $18 million ,respectively, of changes in inventory; and (3) $29 million , $(76) million and $(115) million , respectively, of changes in accounts payableand accrued liabilities. The decrease in cash related to accounts receivable in 2018 reflected higher business levels in the fourth quarter of2018 , as compared to the fourth quarter of 2017 , along with timing of customer payments. The increase in cash related to changes incurrent liabilities in 2018 reflected timing of vendor payments. In each of 2017 and 2016 , our accounts receivable, inventory and accountspayable and accrued liabilities all decreased as a result of lower revenue and activity in general from the immediately preceding year. The2016 decrease in inventory was in addition to write-downs totaling $30 million in our ROV and Subsea Products segments.

In 2018 , we used $99 million in net investing activities. We used $109 million to purchase property and equipment, $68 million for theacquisition of Ecosse and $10 million for the purchase of Angolan central bank bonds indexed to the U.S. dollar. These outlays were partiallyoffset by $70 million of proceeds received from maturities and redemptions of Angola bonds and $15 million of proceeds received from thesale of a cost method investment. In 2017 , we used a net of $112 million in investing activities, with $105 million used to fund the capitalexpenditures and business acquisitions and $11 million used to purchase Angolan central bank bonds indexed to the U.S. dollar. In 2016 ,we used a net of $169 million in investing activities, with $143 million used to fund the capital expenditures and business acquisitions, and$39 million used to purchase Angolan central bank bonds indexed to the U.S. dollar.

In 2018 , we used $6 million in financing activities, with $300 million for a repayment of the term loan facility, substantially offset by $296million of the proceeds received from the issuance of the 2028 Senior Notes, net of issuance costs. In 2017 , we used $46 million infinancing activities, primarily for the $44 million of cash dividends we paid. In 2016 , we used $96 million in financing activities, primarily forthe $94 million of cash dividends we paid.

In December 2014, our Board of Directors approved a share repurchase program under which we may repurchase up to 10 million shares ofour common stock on a discretionary basis. The program calls for the repurchases to be made in the open market, or in privately negotiatedtransactions from time to time, in compliance with applicable laws, rules and regulations, including Rule 10b-18 under the SecuritiesExchange Act of 1934, as amended, subject to market and business conditions, levels of available liquidity, cash requirements for otherpurposes, applicable legal requirements and other relevant factors. The timing and amount of any repurchases will be determined bymanagement based on its evaluation of these factors. We expect that any shares repurchased under the new program will be held astreasury stock for future use. The program does not obligate us to repurchase any particular number of shares. We account for the shareswe hold in treasury under

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the cost method, at average cost. Through December 31, 2015 under the program, we repurchased 2 million shares of our common stockfor $100 million . We have not repurchased any shares under the program since December 31, 2015 .As of December 31, 2018 , we retained 12.3 million of the shares we had repurchased through this and a prior program. We expect to holdthe shares repurchased for future use.

Because of our significant foreign operations, we are exposed to currency fluctuations and exchange rate risks. We generally minimize theserisks primarily through matching, to the extent possible, revenue and expense in the various currencies in which we operate. Cumulativetranslation adjustments as of December 31, 2018 relate primarily to our net investments in, including long-term loans to, our foreignsubsidiaries. A stronger U.S. dollar against the U.K. pound sterling, Norwegian kroner and Brazilian real would result in lower operatingincome. See Item 7A – "Quantitative and Qualitative Disclosures About Market Risk."

Results of OperationsAdditional information on our business segments is shown in Note 8 of the Notes to Consolidated Financial Statements included in thisreport.

Energy Services and Products. The table that follows sets out revenue and profitability for the business segments within our EnergyServices and Products business. In the ROV section of the table that follows, "Days available" includes all days from the first day that anROV is placed in service until the ROV is retired. All days in this period are considered available days, including periods when an ROV isundergoing maintenance or repairs. Our ROVs do not have scheduled maintenance or repair that requires significant time when the ROVsare not available for utilization.

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  Year Ended December 31,

(dollars in thousands)   2018   2017   2016

Remotely Operated Vehicles            Revenue   $ 394,801   $ 393,655   $ 522,121Gross Margin   32,652   50,937   59,038Gross Margin %   8 %   13%   11%Operating Income   1,641   22,366   25,193Operating Income %   — %   6%   5%Days available   101,464   101,951   112,588Days utilized   52,084   47,282   59,963Utilization %   51 %   46%   53%

Subsea Products            Revenue   515,000   625,513   692,030Gross Margin   59,984   97,086   140,275Gross Margin %   12 %   16%   20%Operating Income   5,614   45,539   75,938Operating Income %   1 %   7%   11%Backlog at end of period   332,000   276,000   431,000

Subsea Projects            Revenue   329,163   291,993   472,979Gross Margin   9,596   25,021   51,392Gross Margin %   3 %   9%   11%Operating Income (Loss)   (86,008)   10,279   34,476Operating Income (Loss)%   (26)%   4%   7%

Asset Integrity            Revenue   253,886   236,778   275,397Gross Margin   34,995   37,382   41,458Gross Margin %   14 %   16%   15%Operating Income   8,660   11,231   7,551Operating Income %   3 %   5%   3%

Total Energy Services and Products            Revenue   $ 1,492,850   $ 1,547,939   $ 1,962,527Gross Margin   137,227   210,426   292,163Gross Margin %   9 %   14%   15%Operating Income (Loss)   (70,093)   89,415   143,158Operating Income (Loss)%   (5)%   6%   7%

             

             

Historically, we built new ROVs to increase the size of our fleet in response to demand to support deepwater drilling and vessel-basedinspection, maintenance and repair ("IMR") and installation work. These vehicles are designed for use around the world in water depths of10,000 feet or more. In 2015, as a result of declining market conditions, we began building fewer ROVs, generally limiting additions to meetcontractual commitments. We added six , seven and six ROVs in 2018 , 2017 and 2016 , respectively, while retiring 59 units over the three-year period. Our ROV fleet size was 275 at December 31, 2018 , 279 at December 31, 2017 and 280 at December 31, 2016 . We havedecreased our ROV fleet size over the last four years in response to lower market demand.

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For the year ended December 31, 2018 , our ROV operating income declined on revenue that was relatively flat compared to 2017 , due tolower average dayrates and higher costs, slightly offset by increased days-on-hire. Lower dayrates resulted from the continued competitivemarket conditions for offshore drilling and production driven by lower levels of offshore drilling activity. Higher costs were due to shorterduration of the contracts and additional costs associated with mobilizations and work performed to reactivate the systems that hadpreviously been idle.

For the year ended December 31, 2017 , our ROV operating income declined slightly compared to 2016 , on a revenue decline of 25% .Revenue declined on fewer days-on-hire and lower average dayrates, both as a result of the continued decline in market conditions foroffshore drilling and production. ROV revenue in 2017 also included a $7.3 million sale of accessory equipment that was integrated into acustomer's rigs. Our 2016 operating results included $41 million of charges, which consisted of: (1) $25.2 million for a reserve for excessinventory, (2) $10.8 million for the retirement of 39 ROVs, (3) $3.8 million of restructuring expenses and (4) $1.2 million of bad debtexpenses. These 2016 charges were reflected in our cost of services and products, except for the charges related to bad debts, which werereflected in general and administrative expenses in our financial statements.

For ROVs in 2019 , we expect improved results based on increased days on hire, minor shifts in geographic mix and generally stable pricing,while dealing with continued mobilization and make-ready challenges. We historically have expected to retire, on average, 4% to 5% of ourfleet on an annual basis, although we retired a greater number in 2016 due to market conditions and we retired a lower number in each of2018 and 2017 as a result of the reduced existing fleet size. Our overall ROV fleet utilization is expected to be in the mid 50% range for2019 .

Our Subsea Products segment consists of two business units: (1) manufactured products; and (2) service and rental. Manufactured productsinclude production control umbilicals and specialty subsea hardware, while service and rental includes tooling, subsea work systems andinstallation and workover control systems. The following table presents revenue from manufactured products and service and rental, as theirrespective percentages of total Subsea Products revenue:

  Year Ended December 31,

    2018   2017   2016

Manufactured Products   55%   64%   65%             

Service and Rental   45%   36%   35%

For the year ended December 31, 2018 , our Subsea Products operating results decreased from 2017 across both business units, due tolower umbilical-related backlog from the beginning of the year as a result of lower demand for our manufactured products and reducedactivity in our service and rental business attributable to progress completed on a significant custom-engineered project during 2017, asignificant decline in Asia and Australia market activity, start-up costs pertaining to our light well intervention equipment, as well as thewrite-offs of certain obsolete equipment.

For the year ended December 31, 2017 , our Subsea Products revenue and operating income decreased from 2016 across both businessunits, but most notably due to lower pricing of service and rental. Our 2016 results included the following charges:

• $8.2 million, predominantly for tools and inventory in our portfolio used to support deepwater drilling and operations;• $3.7 of restructuring expenses; and• $1.9 million of allowances for bad debts.

In our financial statements, the charges incurred in 2016 are reflected in our cost of services and products, except for the charges related tothe allowances for bad debts, which are reflected in

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general and administrative expenses. The restructuring expenses related to severance costs for incurred and designated future workforcereductions and costs associated with closing excess facilities.

We anticipate our Subsea Products segment operating income in 2019 to improve as a result of securing good order intake in 2018 andanticipated awards in early 2019 , driving increased throughput within our manufactured products business unit, and higher activity levelsand contribution from the services and rental business unit. With increased overall activity and better absorption of our fixed costs, weanticipate that our operating income margin will be in the mid-single digit range. Our Subsea Products backlog was $332 million atDecember 31, 2018 , approximately 20% , higher than it was at December 31, 2017 . The backlog increase from 2017 was largelyattributable to an increase in order intake for our service and rental offerings.

Our Subsea Projects operating results for the year ended December 31, 2018 were lower compared to 2017 , due to a goodwill impairmentcharge largely resulting from the protracted downturn in survey and vessel activity, reduced project activity and diving work in Angola andthe write-offs of obsolete equipment and intangible assets associated with exiting the land survey business. These results were partiallyoffset by increased diving and deepwater activity in the U.S. Gulf of Mexico.

For the year ended December 31, 2017 , our Subsea Projects revenue and operating income decreased from 2016 , as a result of generallylower vessel demand and pricing, and the release in May 2016 of the Bourbon Oceanteam 101 , which was previously deployed under thefield support vessel services contract offshore Angola.

In 2019 , our Subsea Projects segment is expected to generate better results with improvements in survey and renewables work, modestlyoffset by reduced international and Gulf of Mexico vessel activity. Vessel dayrates remain very competitive but appear to have stabilized. Weexpect to place the Ocean Evolution into service during the second quarter of 2019.

For the year ended December 31, 2018 , compared to 2017 , Asset Integrity's operating income decreased due to lower contract pricing forthe purpose of contracts retention.

For the year ended December 31, 2017 , Asset Integrity operating income improved from the 2016 on lower revenue, as we benefited fromrestructuring efforts we made in prior periods. Our 2016 operating results included bad debt expense of $5.0 million, which was reflected inselling, general and administrative expense, and $1.4 million of restructuring charges, which were reflected in our cost of services andproducts.

We anticipate our 2019 operating results for Asset Integrity to be relatively flat compared to 2018, as contract pricing remains extremelycompetitive.

Advanced Technologies. The table that follows sets out revenue and profitability for this segment.

  Year Ended December 31,

(dollars in thousands)   2018   2017   2016

Revenue   $ 416,632   $ 373,568   $ 309,076Gross Margin   58,959   44,421   33,784Gross Margin %   14%   12%   11%Operating Income   33,920   22,039   11,809Operating Income %   8%   6%   4%

Our Advanced Technologies segment consists of two business units: (1) government; and (2) commercial. Government services andproducts include engineering and related manufacturing in defense and space exploration activities. Our commercial business unit offers aturnkey solution that includes program management, engineering design, fabrication/assembly and installation to the commercial themepark industry and mobile robotics solutions including automated guided vehicle technology to a variety of industries. The following tablepresents revenue from government and commercial, as their respective percentages of total Advanced Technologies revenue:

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  Year Ended December 31,

    2018   2017   2016Government   67%   74%   78%             

Commercial   33%   26%   22%

For the year ended December 31, 2018 , compared to 2017 , our Advanced Technologies segment achieved record operating income, due tosteady growth in our government business and a significant increase in activity in our commercial business, specifically entertainment.

For the year ended December 31, 2017 , compared to 2016 , Advanced Technologies operating income was higher, from improved volumeof theme park-related projects in our entertainment business.

We project our Advanced Technologies operating results in 2019 to increase, due to continued high demand and activity levels in ourentertainment business, improvements in our automated guided vehicle operations, and modest growth in our government-related units.

Unallocated Expenses. Our unallocated expenses, i.e. , those not associated with a specific business segment, within gross margin consistof expenses related to our incentive and deferred compensation plans, including restricted stock and bonuses, as well as other generalexpenses. Our unallocated expenses within operating income consist of those within gross margin plus general and administrative expensesrelated to corporate functions.

The table that follows sets out our unallocated expenses.

  Year Ended December 31,

(dollars in thousands)   2018   2017   2016

Gross margin expenses   $ (66,960)   $ (60,237)   $ (46,720)% of revenue   4%   3%   2%Operating expenses   (109,309)   (100,798)   (84,203)% of revenue   6%   5%   4%

Our unallocated expenses for the year ended December 31, 2018 increased compared to 2017 , primarily due to higher expenses related toinformation technology and incentive compensation from our performance units and bonuses.

Our unallocated expenses for the year ended December 31, 2017 increased compared to 2016 , primarily due to higher 2017 estimatedexpenses related to incentive compensation from our performance units and bonuses.

We anticipate Unallocated Expenses in 2019 to increase due to the expectation for higher projected short- and long-term performance basedincentive compensation expense. Our Unallocated Expenses have been running at decreased levels over the last few years, as our financialresults have not achieved performance targets, primarily due to the prolonged downturn in the offshore oilfieldmarkets we serve. Based on an expected increase in offshore activities, a more stable pricingenvironment, realized benefits from ongoing cost and performance initiatives, and continued growth in our Advanced Technologies segment,we expect to achieve higher performance targets for 2019, as well as over the longer-term. Therefore, as we re-establish accruals for ourannual and long-term incentive compensation programs, Unallocated Expenses are expected to be approximately $140 million during 2019.

Other. The table that follows sets forth our financial statement items below the operating income line.

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  Year Ended December 31,

(dollars in thousands)   2018   2017   2016

Interest income   $ 9,962   $ 7,355   $ 3,900Interest expense, net of amounts capitalized   (37,742)   (27,817)   (25,318)Equity earnings (loss) of unconsolidated affiliates   (3,783)   (1,983)   244Other income (expense), net   (8,788)   (6,055)   (6,244)Provision (benefit) for income taxes   26,494   (184,242)   18,760

Interest income increased in 2018 from an increase in the short-term interest rates received on our cash equivalents in the U.S.

In addition to interest on borrowings, interest expense includes amortization of loan costs, fees forlender commitments under our revolving credit agreement and fees for standby letters of credit andbank guarantees that banks issue on our behalf for performance bonds, bid bonds and self-insurancerequirements.

Interest expense increased in 2018 compared to 2017 due to higher interest rate from the 2028 Senior Notes issued in February 2018replacing our Term Loan and higher interest rates from our interest rate swaps, partially offset by an increase in our capitalized interest. Wecapitalized $7.3 million , $4.6 million and $3.7 million of interest in 2018 , 2017 and 2016 , respectively, associated with the new-buildvessel, the Ocean Evolution , described under "Liquidity and Capital Resources" above.

Included in other income (expense), net are foreign currency transaction losses of $18 million , $5.2 million and $4.8 million for 2018 , 2017and 2016 , respectively. The losses in 2018 and 2016 primarily related to Angola, which devalued its currency by 46% in 2018 and 18% in2016 . We did not incur significant currency transaction losses in any one currency in 2017 . We could incur further foreign currencyexchange losses in Angola if further currency devaluations occur. However, in 2019 , we expect lower foreign currency exchange losses, dueto lower cash balances in Angolan kwanza.

In 2018 , Other income (expense), net also included a pre-tax gain of $9.3 million resulting from the sale of our cost method investment inASV Global, LLC in September 2018. The total consideration from the sale was $15 million , which is subject to final working capitaladjustments and customary holdbacks. In 2016, other income (expense), net also includes curtailment costs of $1.1 million related to adefined benefit plan for employees in Norway.

On December 22, 2017, the Tax Act was enacted, most notably reducing the U.S. corporate income tax rate from 35% to 21% effectiveJanuary 1, 2018, and creating a quasi-territorial tax system with a one-time mandatory transition tax on applicable previously-deferredforeign earnings of foreign subsidiaries. In 2018, based on regulations issued by the U.S. Department of the Treasury and additionalaccounting analysis, we reflected the effects of the Tax Act in our financial statements to include a tax impact of $8.8 million related to theone-time mandatory transition tax. As regulatory guidance continues to be issued by the U.S. tax authorities, any difference in theinterpretation of the Tax Act resulting from final or newly issued regulations will be recorded in the period that current or future proposedregulations become law. In 2017 , as a result of the Tax Act, we estimated and recorded a $189 million non-cash benefit in the fourthquarter of 2017, making the effective tax rate for 2017 not meaningful. Various components of the Tax Act contributed to the $189 millionnon-cash benefit. At December 31, 2017, we remeasured our deferred tax assets and liabilities to reflect the reduction in the U.S. corporateincome tax rate from 35% to 21%, resulting in a provisional $23 million decrease in income tax expense for the year ended December 31,2017 . Prior to enactment, we provided deferred taxes liabilities associated with certain unrepatriated earnings that will now be subject totax-free repatriation, resulting in a provisional $222 million decrease in income tax expense for the year ended December 31, 2017 . Thetransition tax and resulting quasi-territorial type tax regime impacts the utilization of our remaining foreign tax credits, resulting in aprovisional valuation allowance of $56 million against such deferred tax assets and a corresponding increase to income tax expense for theyear ended December 31, 2017 .

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Off-Balance Sheet ArrangementsWe do not have any off-balance sheet arrangements, as defined by SEC rules.

Contractual ObligationsAt December 31, 2018 , we had payments due under contractual obligations as follows:

(dollars in thousands) Payments due by period

Total   2019   2020-2021   2022-2023   After 2023Long-term Debt $ 800,000   $ —   $ —   $ —   $ 800,000Other Operating Leases 387,751   35,064   61,230   55,296   236,161Purchase Obligations 299,117   282,646   15,262   402   807Other Long-term Obligations reflected onour Balance Sheet under GAAP 58,419   1,567   2,359   1,601   52,892

TOTAL $ 1,545,287   $ 319,277   $ 78,851   $ 57,299   $1,089,860

At December 31, 2018 , we had outstanding purchase order commitments totaling $299 million , including approximately $10 million for theconstruction of the new subsea support vessel, the Ocean Evolution , scheduled to be placed into service during the second quarter of 2019.

We previously had several deepwater vessels under long-term charter. The last of our long-term charters expired in March 2018. With thecurrent market conditions, our philosophy is to attempt to charter vessels for specific projects on a back-to-back basis with the vesselowners. This generally minimizes our contract exposure by closely matching our obligations with our revenue.

In 2001, we entered into an agreement with our Chairman of the Board of Directors (the "Chairman") who was also then our Chief ExecutiveOfficer. That agreement was amended in 2006 and in 2008. Pursuant to the amended agreement, the Chairman relinquished his position asChief Executive Officer in May 2006 and began his post-employment service period on December 31, 2006, which continued throughAugust 15, 2011, during which service period the Chairman, acting as an independent contractor, agreed to serve as nonexecutive Chairmanof our Board of Directors. The agreement provides the Chairman with post-employment benefits for ten years following August 15, 2011.The agreement also provides for medical coverage on an after-tax basis to the Chairman, his spouse and children for their lives. Werecognized the net present value of the post-employment benefits over the expected service period. Our total accrued liabilities, current andlong-term, under this post-employment benefit were $3.2 million and $3.9 million at December 31, 2018 and 2017 , respectively.

Effects of Inflation and Changing PricesOur financial statements are prepared in accordance with generally accepted accounting principles in the United States, using historical U.S.dollar accounting, or historical cost. Statements based on historical cost, however, do not adequately reflect the cumulative effect ofincreasing costs and changes in the purchasing power of the dollar, especially during times of significant and continued inflation.

In order to minimize the negative impact of inflation on our operations, we attempt to cover the increased cost of anticipated changes inlabor, material and service costs, either through an estimate of those changes, which we reflect in the original price, or through priceescalation clauses in our contracts. Our success in achieving price escalation clauses has become more challenging, due to the protracteddownturn and over-capacity in the energy market in which we compete. Inflation has not had a material effect on our revenue or incomefrom operations in the past three years, and no such effect is expected in the near future.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk.We are currently exposed to certain market risks arising from transactions we have entered into in the normal course of business. Theserisks relate to interest rate changes and fluctuations in foreign exchange rates. Except for our exposure in Angola, we do not believe theserisks are material. We have not entered into any market risk sensitive instruments for speculative or trading purposes. When we have asignificant amount of borrowings, we typically manage our exposure to interest rate changes through the use of a combination of fixed- andfloating-rate debt. See Note 7 of Notes to Consolidated Financial Statements included in this report for a description of our revolving creditfacility and interest rates on our borrowings. We have two interest rate swaps in place on a total of $200 million of the 2024 Senior Notes forthe period to November 2024. See Note 6 of Notes to Consolidated Financial Statements included in this report for a description of theseinterest rate swaps. We believe significant interest rate changes would not have a material near-term impact on our future earnings or cashflows.

Because we operate in various regions in the world, we conduct a portion of our business in currencies other than the U.S. dollar. Thefunctional currency for most of our international operations is the applicable local currency. A stronger U.S. dollar against the U.K. poundsterling, the Norwegian kroner and the Brazilian real would result in lower operating income. We manage our exposure to changes in foreignexchange rates principally through arranging compensation in U.S. dollars or freely convertible currency and, to the extent possible, bylimiting compensation received in other currencies to amounts necessary to meet obligations denominated in those currencies. We use theexchange rates in effect as of the balance sheet date to translate assets and liabilities as to which the functional currency is the localcurrency, resulting in translation adjustments that we reflect as accumulated other comprehensive income or loss in the equity section ofour Consolidated Balance Sheets. We recorded net adjustments of $(47) million , $11 million and $(6) million to our equity accounts in 2018, 2017 and 2016 , respectively. Negative adjustments reflect the net impact of the strengthening of the U.S. dollar against various foreigncurrencies for locations where the functional currency is not the U.S. dollar. Conversely, positive adjustments reflect the effect of aweakening U.S. dollar.

We recorded foreign currency transaction losses of $18 million , $5.2 million and $4.8 million for 2018 , 2017 and 2016 , respectively. Thoselosses are included in Other income (expense), net in our Consolidated Statements of Operations in those respective periods. Since thesecond quarter of 2015, the exchange rate for the Angolan kwanza relative to the U.S. dollar generally has been declining, with theexception of the exchange rate being relatively stable during 2017 . As our functional currency in Angola is the U.S. dollar, we recordedforeign currency transaction losses related to the kwanza of $19 million , $0.1 million and $7.3 million in 2018 , 2017 and 2016 ,respectively. The currency transaction losses in Angola are related primarily to the remeasurement of our Angolan kwanza cash balances toU.S. dollars. Angola devalued its currency by 46% and 18% in 2018 and 2016 , respectively. Any conversion of cash balances from kwanzato U.S. dollars is controlled by the central bank in Angola, and the central bank slowed this process from mid-2015 to 2017, causing ourkwanza cash balances to increase during that period of time. However, beginning in 2018, the Angolan central bank has allowed us torepatriate cash from Angola. During 2018 , we were able to repatriate $74 million of cash from Angola.

As of December 31, 2018 and December 31, 2017 , we had the equivalent of approximately $9.3 million and $27 million of kwanza cashbalances, respectively, in Angola, reflected on our balance sheet. The decrease in kwanza cash balances in 2018 was mainly attributable tothe repatriation of cash from Angola and cash used in our Angolan operations.

To mitigate our currency exposure risk in Angola, we have used kwanza to purchase equivalent Angolan central bank (Banco Nacional deAngola) bonds. The bonds are denominated as U.S. dollar equivalents, so that, upon payment of semi-annual interest and principal uponmaturity, payment is made in kwanza, equivalent to the respective U.S. dollars at the then-current exchange rate. In 2018 , we received atotal of $70 million proceeds from maturities and redemptions of Angola bonds and reinvested $10 million of the proceeds in similar assets.We previously believed the chance of selling the bonds before maturity and repatriating cash out of Angola was remote. Our intention was tohold the bonds to maturity, and to reinvest funds from maturing bonds in similar long-term

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assets. Because we intend to sell the bonds if we are able to repatriate the proceeds, we changed our accounting for these bonds from held-to-maturity securities to available-for-sale securities.

We estimated the fair market value of the Angolan bonds to be $10 million at December 31, 2018 using quoted prices. Since the market forthe Angolan bonds is not an active market, the fair value of the Angolan bonds is classified within Level 2 in the fair value hierarchy underU.S. GAAP. As of December 31, 2018 , we have not recorded the difference between the fair market value and carrying amount of theoutstanding bonds through the Consolidated Statement of Comprehensive Income (Loss) due to the insignificant difference between the fairmarket value and the carrying amount of the bonds.

As of December 31, 2018 , we classified $10 million of bonds due to mature in 2023 as Other current assets on our Consolidated BalanceSheet because we intend to sell these bonds to meet the needs of current operations in Angola.

Item 8. Financial Statements and Supplementary Data.In this report, our consolidated financial statements and supplementary data appear following the signature page to this report and areincorporated into this item by reference.

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.None.

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Item 9A. Controls and Procedures.

Disclosure Controls and Procedures

In accordance with Rules 13a-15 and 15d-15 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), we carried outan evaluation, under the supervision and with the participation of management, including our principal executive officer and principalfinancial officer, of the effectiveness of our disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e)under the Exchange Act) as of the end of the period covered by this report. Based on that evaluation, our principal executive officer andprincipal financial officer concluded that our disclosure controls and procedures were effective as of December 31, 2018 to providereasonable assurance that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded,processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

Internal Control over Financial Reporting

There has been no change in our internal control over financial reporting that occurred during the quarter ended December 31, 2018 thathas materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Management's Report on Internal Control Over Financial ReportingOur management is responsible for establishing and maintaining adequate internal control over financial reporting (as that term is defined inRules 13a-15(f) and 15d-15(f) under the Exchange Act). Our internal control over financial reporting is a process designed to providereasonable, but not absolute, assurance regarding the reliability of financial reporting and the preparation of financial statements forexternal reporting purposes in accordance with accounting principles generally accepted in the United States of America. We developed ourinternal control over financial reporting through a process in which our management applied its judgment in assessing the costs and benefitsof various controls and procedures, which, by their nature, can provide only reasonable assurance regarding the control objectives. Youshould note that the design of any system of controls is based in part on various assumptions about the likelihood of future events, and wecannot assure you that any system of controls will succeed in achieving its stated goals under all potential future conditions, regardless ofhow remote. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because ofchanges in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

Under the supervision and with the participation of our management, including our principal executive, financial and accounting officers, wehave conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Thisevaluation included a review of the documentation surrounding our financial reporting controls, an evaluation of the design effectiveness ofthese controls, testing of the operating effectiveness of these controls and an evaluation of our overall control environment. Based on thatevaluation, our management has concluded that our internal control over financial reporting was effective as of December 31, 2018 .

Ernst & Young LLP, the independent registered public accounting firm that audited our financial statements, has audited our internal controlover financial reporting, as stated in their report that follows.

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Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Oceaneering International, Inc.

Opinion on Internal Control over Financial Reporting

We have audited Oceaneering International, Inc. and subsidiaries' internal control over financial reporting as of December 31, 2018 , basedon criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the TreadwayCommission (2013 framework) (the "COSO criteria"). In our opinion, Oceaneering International, Inc. and subsidiaries (the Company)maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company AccountingOversight Board (United States) (PCAOB), the accompanying consolidated balance sheets of the Company as of December 31, 2018 and2017 , and the related consolidated statements of operations, comprehensive income (loss), equity and cash flows for each of the threeyears in the period ended December 31, 2018 , and the related notes and our report dated February 28, 2019 expressed an unqualifiedopinion thereon.

Basis for Opinion

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment for theeffectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control overFinancial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit.We are a public accounting firm registered with the PCAOB and are required to be independent with respect to Oceaneering International,Inc. in accordance with the U.S. federal securities laws and applicable rules and regulations of the Securities and Exchange Commission andthe PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists,testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such otherprocedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability offinancial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accountingprinciples. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections ofany evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes inconditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ ERNST & YOUNG LLP  Houston, Texas  February 28, 2019  

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Item 9B. Other Information.None.

Part III

Item 10. Directors, Executive Officers and Corporate Governance.The information with respect to the directors and nominees for election to our Board of Directors is incorporated by reference from thesection "Election of Directors" in our definitive proxy statement to be filed on or before April 30, 2019 , relating to our 2019 Annual Meetingof Shareholders.

Information concerning our Audit Committee and the audit committee financial experts is incorporated by reference from the sectionsentitled "Corporate Governance" and "Committees of the Board – Audit Committee" in the proxy statement referred to in this Item 10.Information concerning our Code of Ethics is incorporated by reference from the section entitled "Code of Ethics" for the Chief ExecutiveOfficer and Senior Financial Officers in the proxy statement previously referred to in this Item 10.

The information with respect to our executive officers is provided under the heading "Executive Officers of the Registrant" following Item 1of Part I of this report. There are no family relationships between any of our directors or executive officers.

The information with respect to the reporting by our directors and executive officers and persons who own more than 10% of our CommonStock under Section 16 of the Securities Exchange Act of 1934 is incorporated by reference from the section entitled "Section 16(a)Beneficial Ownership Reporting Compliance" in the proxy statement previously referred to in this Item 10.

Item 11. Executive Compensation.The information required by Item 11 is incorporated by reference from the sections entitled "Compensation Committee Interlocks andInsider Participation," "Compensation Discussion and Analysis," "Report of the Compensation Committee," "Compensation of ExecutiveOfficers," and "Compensation of Nonemployee Directors" in the proxy statement referred to in Item 10 above.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.The information required by Item 12 is incorporated by reference from (1) the Equity Compensation Plan Information table appearing inItem 5 – "Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities" in Part II of thisreport and (2) the section "Security Ownership of Management and Certain Beneficial Owners" in the proxy statement referred to in Item 10above.

Item 13. Certain Relationships and Related Transactions, and Director Independence.The information required by Item 13 is incorporated by reference from the sections entitled "Corporate Governance" and "CertainRelationships and Related Transactions" in the proxy statement referred to in Item 10 above.

Item 14. Principal Accounting Fees and Services.The information required by Item 14 is incorporated by reference from the section entitled "Ratification of Appointment of IndependentAuditors – Fees Incurred for Audit and Other Services provided by Ernst & Young LLP" in the proxy statement referred to in Item 10 above.

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Part IV

Item 15. Exhibits, Financial Statement Schedules.(a) Documents filed as part of this report.

1. Financial Statements:(i) Report of Independent Registered Public Accounting Firm(ii) Consolidated Balance Sheets(iii) Consolidated Statements of Operations(iv) Consolidated Statements of Comprehensive Income (Loss)(v) Consolidated Statements of Cash Flows(vi) Consolidated Statements of Equity(vii) Notes to Consolidated Financial Statements

2. Financial Statement Schedules:All schedules for which provision is made in the applicable regulations of the Securities and Exchange Commission have beenomitted because they are not required under the relevant instructions or because the required information is not significant.

3. Exhibits:

Exhibit Index

       Registration orFile Number  

Form ofReport   Report Date   Exhibit Number

* 3.01 Restated Certificate of Incorporation   1-10945   10-K   Dec. 2000   3.1* 3.02 Certificate of Amendment to Restated Certificate of

Incorporation  1-10945

 8-K

 May 2008

 3.1

* 3.03 Certificate of Amendment to Restated Certificate ofIncorporation  

1-10945 

8-K 

May 2014 

3.1

* 3.04 Amended and Restated Bylaws   1-10945   8-K   Aug. 2015   3.1* 4.01 Specimen of Common Stock Certificate   1-10945   10-Q   Sep. 2018   4.3* 4.02 Credit Agreement, dated as of October 27, 2014, by and

among Oceaneering International, Inc., Wells Fargo Bank,National Association, as administrative agent and swing linelender, and certain lenders party thereto  

1-10945

 

8-K

 

Oct. 2014

 

4.1

* 4.03 Agreement and Amendment No. 1 to Credit Agreement   1-10945   8-K   Nov. 2015   4.1* 4.04 Agreement and Amendment No. 2 to Credit Agreement   1-10945   8-K   Nov. 2016   4.1* 4.05 Agreement and Amendment No. 3 to Credit Agreement   1-10945   8-K   June 2017   4.1* 4.06 Agreement and Amendment No. 4 to Credit Agreement   1-10945   8-K   Feb. 2018   4.1* 4.07 Indenture dated, November 21, 2014, between Oceaneering

International, Inc. and Wells Fargo Bank, NationalAssociation, as Trustee, relating to senior debt securities ofOceaneering International, Inc.  

1-10945

 

8-K

 

Nov. 2014

 

4.1

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* 4.08 First Supplemental Indenture, dated November 21, 2014,between Oceaneering International, Inc. and Wells FargoBank, National Association, as Trustee, providing for theissuance of Oceaneering International, Inc.’s 4.650% SeniorNotes due 2024 (including Form of Notes)  

1-10945

 

8-K

 

Nov. 2014

 

4.2

* 4.09 Second Supplemental Indenture, dated February 6, 2018,between Oceaneering International, Inc. and Wells FargoBank, National Association, as Trustee, providing for theissuance of Oceaneering International, Inc.'s 6.000% SeniorNotes due 2028 (including Form of Notes)  

1-10945

 

8-K

 

Feb. 2018

 

4.2

We and certain of our consolidated subsidiaries are parties to debt instruments under which the total amount of securities authorized does not exceed10% of our total consolidated assets. Pursuant to paragraph 4(iii)(A) of Item 601(b) of Regulation S-K, we agree to furnish a copy of those instrumentsto the Securities and Exchange Commission on request.* 10.01+ Amended and Restated Service Agreement dated as of

December 21, 2006 between Oceaneering and John R. Huff  1-10945

 8-K

 Dec. 2006

 10.1

* 10.02+ Modification to Service Agreement dated as of December 21,2006 between Oceaneering and John R. Huff  

1-10945 

8-K 

Dec. 2008 

10.9

* 10.03+ Trust Agreement dated as of May 12, 2006 betweenOceaneering and United Trust Company, NationalAssociation (the "Huff Trust Agreement")  

1-10945

 

8-K

 

May 2006

 

10.2

* 10.04+ First Amendment to Huff Trust Agreement dated as of May12, 2006 between Oceaneering International, Inc. and Bankof America National Association, as successor trustee  

1-10945

 

8-K

 

Dec. 2008

 

10.10

* 10.05+ Oceaneering International, Inc. Supplemental ExecutiveRetirement Plan, as amended and restated effective January1, 2009  

1-10945

 

8-K

 

Dec. 2008

 

10.5

* 10.06+ Amended and Restated Oceaneering International, Inc.Supplemental Executive Retirement Plan, as amended andrestated effective January 1, 2000 (for Internal RevenueCode Section 409A-grandfathered benefits)  

1-10945

 

8-K

 

Dec. 2008

 

10.6

* 10.07+ Form of Change-of-Control Agreement and Annex forRoderick A. Larson  

1-10945 

8-K 

Aug. 2015 

10.3

* 10.08+ Form of Change-of-Control Agreement   1-10945   8-K   May 2011   10.5* 10.09+ Form of Indemnification Agreement   1-10945   8-K   May 2011   10.4* 10.10+ 2010 Incentive Plan   333-166612   S-8   May 2010   4.6* 10.11+ Amended and Restated 2010 Incentive Plan   1-10945   DEF 14A   Apr. 2015   Appendix A* 10.12+ Second Amended and Restated 2010 Incentive Plan   1-10945   DEF 14A   Mar. 2017   Appendix A* 10.13+ Form of 2016 Restricted Stock Unit Agreement   1-10945   8-K   Feb. 2016   10.1* 10.14+ Form of 2016 Performance Unit Agreement   1-10945   8-K   Feb. 2016   10.2* 10.15+ Form of 2016 Performance Award: Goals and Measures,

relating to the form of 2016 Performance Unit Agreement  1-10945

 8-K

 Feb. 2016

 10.3

* 10.16+ Form of 2016 Nonemployee Director Restricted StockAgreement  

1-10945 

8-K 

Feb. 2016 

10.4

* 10.17+ 2016 Annual Cash Bonus Award Program Summary   1-10945   8-K   Feb. 2016   10.5

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* 10.18+ Form of 2017 Performance Unit Agreement, including 2017Performance Award: Goals and Measures  

1-10945 

8-K 

Feb. 2017 

10.1

* 10.19+ Form of 2017 Restricted Stock Unit Agreement   1-10945   8-K   Feb. 2017   10.2* 10.20+ Form of 2017 Nonemployee Director Restricted Stock

Agreement  1-10945

 8-K

 Feb. 2017

 10.3

* 10.21+ Form of 2017 Nonemployee Director Restricted StockAgreement for Mr. Hughes  

1-10945 

8-K 

Feb. 2017 

10.4

* 10.22+ 2017 Nonemployee Director Restricted Stock Agreement forMr. McEvoy  

1-10945 

8-K 

May 2017 

10.3

* 10.23+ 2017 Annual Cash Bonus Award Program Summary   1-10945   8-K   Feb. 2017   10.5* 10.24+ Supplemental 2017 Performance Unit Agreement for Mr.

Larson  1-10945

 8-K

 May 2017

 10.1

* 10.25+ Supplemental 2017 Restricted Stock Unit Agreement for Mr.Larson  

1-10945 

8-K 

May 2017 

10.2

* 10.26+ Retention Agreement dated February 24, 2017 for Mr.Gerner

 

1-10945

 

8-K

 

Feb. 2017

 

10.6

* 10.27+ Form of 2018 Performance Unit Agreement, including 2018Performance Award: Goals and Measures  

1-10945 

8-K 

Mar. 2018 

10.1

* 10.28+ Form of 2018 Restricted Stock Unit Agreement   1-10945   8-K   Mar. 2018   10.2* 10.29+ Form of 2018 Nonemployee Director Restricted Stock

Agreement  1-10945

 8-K

 Mar. 2018

 10.3

* 10.30+ 2018 Annual Cash Bonus Award Program Summary   1-10945   8-K   Mar. 2018   10.4  10.31+ Oceaneering International, Inc. Retirement Investment Plan, amended and restated with effective January 1, 2019      10.32+ Change of Control Plan and Form of Participation Agreement    

 10.33+ Second Amendment to Huff Trust Agreement dated as of May 12, 2006 between Oceaneering International, Inc.

and Evercore Trust Company, National Association, as successor trustee    

 10.34+ Third Amendment to Huff Trust Agreement dated as of May 12, 2006 between Oceaneering International, Inc. and

Newport Trust Company, as successor trustee    

 10.35+ Oceaneering Retirement Investment Plan Trust Agreement with Fidelity Management Trust Company effective

January 1, 2019      21.01 Subsidiaries of Oceaneering      23.01 Consent of Independent Registered Public Accounting Firm      31.01 Rule 13a – 14(a)/15d – 14(a) certification of principal executive officer      31.02 Rule 13a – 14(a)/15d – 14(a) certification of principal financial officer      32.01 Section 1350 certification of principal executive officer      32.02 Section 1350 certification of principal financial officer      101.INS XBRL Instance Document      101.SCH XBRL Taxonomy Extension Schema Document      101.CAL XBRL Taxonomy Extension Calculation Linkbase Document      101.DEF XBRL Taxonomy Extension Definition Linkbase Document      101.LAB XBRL Taxonomy Extension Label Linkbase Document  101.PRE XBRL Taxonomy Extension Presentation Linkbase Document                                  

 * Exhibit previously filed with the Securities and Exchange Commission, as indicated, and incorporated herein by

reference.      + Management contract or compensatory plan or arrangement.    

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to besigned on its behalf by the undersigned, thereunto duly authorized.

      OCEANEERING INTERNATIONAL, INC.       

Date: February 28, 2019 By: /S/ RODERICK A.LARSON      Roderick A. Larson      Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalfof the registrant and in the capacities and on the dates indicated.

Signature   Title Date/S/ RODERICK A. LARSON   Chief Executive Officer and Director February 28, 2019

Roderick A. Larson   (Principal Executive Officer)         

/S/ ALAN R. CURTIS   Senior Vice President and Chief Financial Officer February 28, 2019Alan R. Curtis   (Principal Financial Officer)  

       /S/ W. CARDON GERNER   Senior Vice President and Chief Accounting Officer February 28, 2019

W. Cardon Gerner   (Principal Accounting Officer)         

/S/ JOHN R. HUFF   Chairman of the Board February 28, 2019John R. Huff      

       /S/ WILLIAM B. BERRY   Director February 28, 2019

William B. Berry             

/S/ T. JAY COLLINS   Director February 28, 2019T. Jay Collins      

       /S/ DEANNA L. GOODWIN   Director February 28, 2019

Deanna L. Goodwin             

/S/ M. KEVIN MCEVOY   Director February 28, 2019M. Kevin McEvoy      

       /S/ PAUL B. MURPHY, JR.   Director February 28, 2019

Paul B. Murphy, Jr.             

/S/ JON ERIK REINHARDSEN   Director February 28, 2019 Jon Erik Reinhardsen      

       /S/ STEVEN A. WEBSTER   Director February 28, 2019

Steven A. Webster             

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INDEX TO FINANCIAL STATEMENTS AND SCHEDULES

Index to Financial Statements

Report of Independent Registered Public Accounting FirmConsolidated Balance SheetsConsolidated Statements of OperationsConsolidated Statements of Comprehensive Income (Loss)Consolidated Statements of Cash FlowsConsolidated Statements of EquityNotes to Consolidated Financial Statements  Summary of Major Accounting Policies  Revenue  Selected Balance Sheet Information  Income Taxes  Selected Income Statement Information  Debt  Commitments and Contingencies  Operations by Business Segment and Geographic Area  Employee Benefit PlansSelected Quarterly Financial Data (unaudited)

Index to SchedulesAll schedules for which provision is made in the applicable regulations of the Securities and Exchange Commission have been omittedbecause they are not required under the relevant instructions or because the required information is not significant.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors of Oceaneering International, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Oceaneering International, Inc. and subsidiaries (the Company) as ofDecember 31, 2018 and 2017 , and the related consolidated statements of operations, comprehensive income (loss), equity and cash flowsfor each of the three years in the period ended December 31, 2018 , and the related notes (collectively referred to as the "consolidatedfinancial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position ofthe Company at December 31, 2018 and 2017 , and the results of its operations and its cash flows for each of the three years in the periodended December 31, 2018 , in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), theCompany's internal control over financial reporting as of December 31, 2018 , based on criteria established in Internal Control—IntegratedFramework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report datedFebruary 28, 2019 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on theCompany’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to beindependent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of theSecurities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Ouraudits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error orfraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding theamounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significantestimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our auditsprovide a reasonable basis for our opinion.

/s/ ERNST & YOUNG LLP    We have served as the Company's auditor since 2002.     

Houston, Texas  February 28, 2019  

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OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS

December 31,(in thousands, except share data) 2018 2017

ASSETSCurrent Assets:

Cash and cash equivalents $ 354,259 $ 430,316Accounts receivable, net of allowances for doubtful accounts of $7,116 and $6,217 625,086 476,903Inventory 194,507 215,282Other current assets 71,037 64,901

Total Current Assets 1,244,889 1,187,402Property and Equipment, at cost 2,837,587 2,815,579Less accumulated depreciation 1,872,917 1,751,375

Net Property and Equipment 964,670 1,064,204Other Assets:

Goodwill 413,121 455,599Other non-current assets 202,318 316,745

Total Other Assets 615,439 772,344

Total Assets $ 2,824,998 $ 3,023,950

LIABILITIES AND EQUITYCurrent Liabilities:

Accounts payable $ 102,636 $ 85,539Accrued liabilities 392,105 350,258

Total Current Liabilities 494,741 435,797Long-term Debt 786,580 792,312Other Long-term Liabilities 128,379 131,323Commitments and ContingenciesEquity:

Common Stock, par value $0.25 per share; 360,000,000 shares authorized; 110,834,088 sharesissued 27,709 27,709Additional paid-in capital 220,421 225,125Treasury stock; 12,294,873 and 12,554,714 shares, at cost (704,066) (718,946)Retained earnings 2,204,548 2,417,412Accumulated other comprehensive loss (339,377) (292,136)

Oceaneering Shareholders' Equity 1,409,235 1,659,164 Noncontrolling Interest 6,063 5,354 Total Equity 1,415,298 1,664,518

Total Liabilities and Equity $ 2,824,998 $ 3,023,950

The accompanying Notes are an integral part of these Consolidated Financial Statements.

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OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS

Year Ended December 31,(in thousands, except per share data) 2018 2017 2016Revenue $ 1,909,482 $ 1,921,507 $ 2,271,603Cost of services and products 1,780,256 1,726,897 1,992,376

Gross Margin 129,226 194,610 279,227Selling, general and administrative expense 198,259 183,954 208,463Goodwill impairment   76,449   —   —

Income (Loss) From Operations (145,482) 10,656 70,764Interest income 9,962 7,355 3,900Interest expense, net of amounts capitalized (37,742) (27,817) (25,318)Equity earnings (losses) of unconsolidated affiliates (3,783) (1,983) 244Other income (expense), net (8,788) (6,055) (6,244)

Income (Loss) Before Income Taxes (185,833) (17,844) 43,346Provision (benefit) for income taxes 26,494 (184,242) 18,760

Net Income (Loss) $ (212,327) $ 166,398 $ 24,586

             

Weighted average shares outstanding          Basic 98,496   98,238   98,035

  Diluted   98,496   98,764   98,424Earnings (loss) per share              Basic   $ (2.16)   $ 1.69   $ 0.25

Diluted $ (2.16)   $ 1.68   $ 0.25Cash dividends declared per share   $ —   $ 0.45   $ 0.96

The accompanying Notes are an integral part of these Consolidated Financial Statements.

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OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Year Ended December 31,(in thousands) 2018 2017 2016

Net Income (Loss) $ (212,327)   $ 166,398   $ 24,586Other comprehensive income (loss), net of tax:

Foreign currency translation (47,026) 10,723 (5,559)Pension-related adjustments (215) (195) 3,258

Other comprehensive income (loss) (47,241) 10,528 (2,301)

Comprehensive Income (Loss) $ (259,568) $ 176,926 $ 22,285

The accompanying Notes are an integral part of these Consolidated Financial Statements.

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OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS

  Year Ended December 31,

(in thousands)   2018   2017   2016

Cash Flows from Operating Activities:            Net income (loss)   $ (212,327)   $ 166,398   $ 24,586

Adjustments to reconcile net income to net cash provided by operating activities:            Depreciation and amortization, including goodwill impairment   293,590   213,519   250,247Deferred income tax provision (benefit)   11,912   (235,013)   98Inventory write-downs   —   —   30,490Net loss (gain) on dispositions of property and equipment and cost method investment   (8,215)   216   387Noncash compensation   11,620   11,518   14,687Excluding the effects of acquisitions, increase (decrease) in cash from:            

Accounts receivable   (86,724)   13,144   123,036Inventory   (12,485)   65,502   17,833Other operating assets   13,587   (38,163)   53,946Currency translation effect on working capital, excluding cash   (4,369)   8,017   (9,183)Accounts payable and accrued liabilities   28,505   (76,309)   (115,212)Income taxes payable   (2,537)   (5,499)   (38,985)Other operating liabilities   4,010   13,148   (12,491)

Total adjustments to net income (loss)   248,894   (29,920)   314,853Net Cash Provided by Operating Activities   36,567   136,478   339,439

Cash Flows from Investing Activities:            Purchases of property and equipment   (109,467)   (93,680)   (112,392)Business acquisitions, net of cash acquired   (68,571)   (11,278)   (30,121)Proceeds from maturities and redemption of investments in Angola bonds   69,789   —   —Purchase of Angola bonds   (10,236)   (10,777)   (39,130)Distributions of capital from unconsolidated affiliates   2,372   2,556   6,470Proceeds from sale of property and equipment and cost method investment   17,239   938   3,417Other investing activities   32   206   2,285Net Cash Used in Investing Activities   (98,842)   (112,035)   (169,471)

Cash Flows from Financing Activities:            Net proceeds from issuance of 6.000% Senior Notes, net of issuance costs   295,816   —   —Repayment of term loan facility   (300,000)   —   —Cash dividends   —   (44,220)   (94,138)Other financing activities   (1,444)   (1,702)   (1,921)Net Cash Used in Financing Activities   (5,628)   (45,922)   (96,059)Effect of exchange rates on cash   (8,154)   1,602   (8,951)Net Increase (Decrease) in Cash and Cash Equivalents   (76,057)   (19,877)   64,958Cash and Cash Equivalents—Beginning of Period   430,316   450,193   385,235

Cash and Cash Equivalents—End of Period   $ 354,259   $ 430,316   $ 450,193

The accompanying Notes are an integral part of these Consolidated Financial Statements.

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OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF EQUITY

Accumulated Other Comprehensive Income

(Loss)        

CommonStock

Additional Paid-in Capital

Treasury Stock

Retained Earnings

Currency Translation Adjustments Pension

OceaneeringShareholders'

Equity

 Noncontrolling

Interest

 

Total Equity(in thousands)    

Balance, December 31, 2015 $ 27,709 $ 230,179 $ (743,577) $ 2,364,786 $ (297,515) $ (2,848) $ 1,578,734   $ —   $ 1,578,734

Net income — — — 24,586 — — 24,586   —   24,586

Other comprehensive income (loss) — — — — (5,559)   3,258 (2,301)   —   (2,301)

Restricted stock unit activity — 2,338 10,428 — — — 12,766   —   12,766

Restricted stock activity — (1,947) 1,947 — — — —   —   —

Tax benefits from employee benefit plans — (3,004) — — — — (3,004)   —   (3,004)

Cash dividends — — — (94,138) — — (94,138)   —   (94,138)

Balance, December 31, 2016 27,709 227,566 (731,202) 2,295,234 (303,074) 410 1,516,643   —   1,516,643

Net income — — — 166,398 —   — 166,398   —   166,398

Other comprehensive income (loss) — — — — 10,723   (195) 10,528   —   10,528

Restricted stock unit activity — 480 9,335 — — — 9,815   —   9,815

Restricted stock activity — (2,921) 2,921 — — — —   —   —

Cash dividends — — — (44,220) — — (44,220)   —   (44,220)

Non controlling interest acquired — — — — — — —   5,354   5,354

Balance, December 31, 2017 27,709 225,125 (718,946) 2,417,412 (292,351) 215 1,659,164   5,354   1,664,518

Cumulative effect of ASC 606 adoption   —   —   —   (537)   —   —   (537)   —   (537)

Net loss — — — (212,327) — — (212,327)   —   (212,327)

Other comprehensive income (loss) — — — — (47,026) (215) (47,241)   —   (47,241)

Restricted stock unit activity — (753) 10,929 — — — 10,176   —   10,176

Restricted stock activity — (3,951) 3,951 — — — —   —   —

Noncontrolling interest   —   —   —   —   —   —   —   709   709

Balance, December 31, 2018 $ 27,709 $ 220,421 $ (704,066) $ 2,204,548 $ (339,377) $ — $ 1,409,235   $ 6,063   $ 1,415,298

       

The accompanying Notes are an integral part of these Consolidated Financial Statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. SUMMARY OF MAJOR ACCOUNTING POLICIES

Principles of Consolidation. The consolidated financial statements include the accounts of Oceaneering International, Inc. ("Oceaneering","we" or "us") and our 50% or more owned and controlled subsidiaries. We also consolidate entities that are determined to be variableinterest entities if we determine that we are the primary beneficiary; otherwise, we account for those entities using the equity method ofaccounting. We use the equity method to account for our investments in unconsolidated affiliated companies of which we own an equityinterest of between 20% and 50% and as to which we have significant influence, but not control, over operations. We use the cost methodfor all other long-term investments. Investments in entities that we do not consolidate are reflected on our balance sheet in Other non-current assets. All significant intercompany accounts and transactions have been eliminated.

Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States("U.S. GAAP") requires that our management make estimates and assumptions that affect the reported amounts of assets and liabilities,disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenseduring the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents. Cash and cash equivalents include demand deposits and highly liquid investments with original maturities ofthree months or less from the date of investment.

Reclassifications. Certain amounts from prior periods have been reclassified to conform with the current year presentation.

Accounts Receivable – Allowances for Doubtful Accounts. We determine the need for allowances for doubtful accounts using the specificidentification method. We generally do not require collateral from our customers.

Inventory. Inventory is valued at the lower of cost or net realizable value. We determine cost using the weighted-average method. During2016, we recorded inventory write-downs totaling $30.5 million for excess inventory of $25.2 million in our ROV segment and $5.3 million inour Subsea Products segment.

Property and Equipment and Long-Lived Intangible Assets. We provide for depreciation of property and equipment on the straight-linemethod over estimated useful lives of eight years for ROVs, three to 25 years for marine services equipment (such as vessels and divingequipment) and three to 25 years for buildings, improvements and other equipment.

Long-lived intangible assets, primarily acquired in connection with business combinations, include trade names, intellectual property andcustomer relationships and are being amortized with a weighted average remaining life of approximately eight years. Amortization expenseon intangible assets was $17 million , $10.2 million and $10.2 million in 2018 , 2017 and 2016 , respectively. 2018 amortization expenseincluded a $3.5 million write-off of intangible assets associated with exiting the land survey business.

We charge the costs of repair and maintenance of property and equipment to operations as incurred, while we capitalize the costs ofimprovements that extend asset lives or functionality.

We capitalize interest on assets where the construction period is anticipated to be more than three months. We capitalized $7.3 million ,$4.6 million and $3.7 million of interest in 2018 , 2017 and 2016 , respectively. We do not allocate general administrative costs to capitalprojects. Upon the disposition of property and equipment, the related cost and accumulated depreciation accounts are relieved and anyresulting gain or loss is included as an adjustment to cost of services and products.

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Our management periodically, and upon the occurrence of a triggering event, reviews the realizability of our property and equipment andlong-lived intangible assets to determine whether any events or changes in circumstances indicate that the carrying amounts of the assetsmay not be recoverable. For long-lived assets to be held and used, we base our evaluation on impairment indicators such as the nature ofthe assets, the future economic benefits of the assets, any historical or future profitability measurements and other external marketconditions or factors that may be present. If such impairment indicators are present or other factors exist that indicate that the carryingamount of an asset may not be recoverable, we determine whether an impairment has occurred through the use of an undiscounted cashflows analysis of the asset at the lowest level for which identifiable cash flows exist. If an impairment has occurred, we recognize a loss forthe difference between the carrying amount and the fair value of the asset. For assets held for sale or disposal, the fair value of the asset ismeasured using fair market value less estimated costs to sell. Assets are classified as held-for-sale when we have a plan for disposal ofcertain assets and those assets meet the held for sale criteria.

Business Acquisitions . We account for business combinations using the acquisition method of accounting, with acquisition prices beingallocated to the assets acquired and liabilities assumed based on their fair values at the respective dates of acquisition.

In March 2018, we acquired Ecosse Subsea Limited ("Ecosse") for $68 million in cash. Headquartered in Aberdeen, Scotland, Ecosse buildsand operates tools for seabed preparation, route clearance and trenching for the installation of submarine cables and pipelines. Theseservices are offered on an integrated basis that includes vessels, ROVs and survey services. We have accounted for this acquisition byallocating the purchase price to the assets acquired and liabilities assumed based on their estimated fair values as of the date of acquisition.This purchase price allocation is preliminary and is subject to change upon completion of our valuation procedures. We have includedEcosse’s operations in our consolidated financial statements starting from the date of closing and its operating results are reflected in ourSubsea Projects segment.

In August 2017, we acquired a 60% controlling ownership interest in Dalgidj LLC ("Dalgidj") for approximately $12.4 million . In connectionwith the purchase of the equity interest, we advanced Dalgidj $6.4 million to pay off certain of its indebtedness. Dalgidj is an Azerbaijancompany that provides office and yard facilities for warehousing, logistics and administration to foreign and local companies in the CaspianSea basin. Dalgidj also owns a 49% interest in a joint venture, which provides remotely operated vehicle solutions, air diving services, andengineering and project management services. We have accounted for this acquisition by allocating the purchase price to the assetsacquired and liabilities assumed based on their estimated fair values at the date of acquisition. Dalgidj's operating results are included in ourSubsea Projects segment, and its activity subsequent to the date of acquisition was not significant.

We made several other smaller acquisitions during the periods presented, none of which were material.

Dispositions. In September 2018, we consummated the sale of our cost method investment in ASV Global, LLC for $15 million . The totalconsideration is subject to final working capital adjustments and customary holdbacks. The sale resulted in a pre-tax gain of $9.3 million ,which is reflected in Other income (expense), net in our Consolidated Statement of Operations for the year ended December 31, 2018 .

Goodwill. Our goodwill is evaluated for impairment annually and whenever we identify certain triggering events or circumstances that wouldmore likely than not reduce the fair value of a reporting unit below its carrying amount.

In our evaluation of goodwill, we perform a qualitative or quantitative impairment test. Under the qualitative approach, if we determine thatit is more likely than not that the fair value of a reporting unit is less than its carrying amount, we are required to perform the quantitativeanalysis to determine the fair value for the reporting unit. Thereafter, we compare the fair value of the reporting unit with its carryingamount and recognize an impairment loss for the amount by which the carrying amount exceeds the fair value of the reporting unit. The lossrecognized should not exceed the total amount of goodwill allocated to the reporting unit. We also consider income tax

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effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, ifapplicable.

The fair value of our reporting units in our 2017 quantitative analysis exceeded their respective carrying amounts. In our 2018 annualgoodwill evaluation, we performed a qualitative assessment for our Subsea Projects reporting unit. Due to the protracted downturn in surveyand vessel activity, we determined that it was more likely than not the fair value was less than the carrying amount. As a result, wedetermined that a quantitative assessment was necessary for our Subsea Projects reporting unit.

In our 2018 quantitative analysis for the Subsea Projects reporting unit, we estimated the fair value by weighing the results from the incomeapproach and the market approach. These valuation approaches consider a number of factors that include, but are not limited to,prospective financial information, growth rates, terminal value, discount rates and comparable multiples of similar companies in our industryand require us to make certain assumptions and estimates regarding industry economic factors and future profitability of our business.Based on this quantitative test, we determined that the fair value for Subsea Projects was less than the carrying value and, as a result, werecorded a pre-tax goodwill impairment loss of $76 million in the Subsea Project reporting unit. The goodwill impairment was included as acomponent of "Income (Loss) From Operations" in our Consolidated Statement of Operations for the year ended December 31, 2018 . Forthe remaining reporting units, qualitative assessments were performed and we concluded that it was more likely than not that the fair valueof the reporting unit was more than the carrying value of the reporting unit.

Besides the goodwill impairment discussed above, the changes in our reporting units' goodwill balances during the periods presented arefrom business acquisitions and currency exchange rate changes. For information regarding goodwill by business segment, see Note 8.

Revenue Recognition. Effective January 1, 2018, we adopted Accounting Standard Update ("ASU") 2014-09, "Revenue from Contracts withCustomers," which implemented Accounting Standards Codification Topic 606 ("ASC 606"). We have used the modified retrospective methodapplied to those contracts that were not completed as of January 1, 2018, and have utilized the practical expedient available under ASC 606to reflect the effect on contract modifications in the aggregate. The cumulative effect of applying ASC 606 has been recognized as anadjustment to retained earnings as of January 1, 2018. The comparative information with respect to prior periods has not beenretrospectively restated and continues to be reported under the accounting standards in effect for those periods.

The cumulative effect of the changes made to our Consolidated Balance Sheet as of January 1, 2018 for the adoption of ASC 606 was asfollows:

(in thousands)   Dec 31, 2017  Adjustments Due to

ASC 606  Jan 1, 2018 Under

ASC 606

Assets              Accounts receivable   $ 476,903   $ (163,963)   $ 312,940  Contract assets   —   171,956   171,956  Total accounts receivable   476,903   7,993   484,896  Inventory   215,282   (34,187)   181,095Liabilities              Accrued liabilities   350,258   (63,045)   287,213  Contract liabilities   —   37,590   37,590  Total accrued liabilities   350,258   (25,455)   324,803  Other long-term liabilities   131,323   (202)   131,121Equity              Retained earnings   2,417,412   (537)   2,416,875

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The adoption of ASU 2014-09 did not have a material impact on our consolidated financial position, results of operations, equity or cashflows as of the adoption date or for the year ended December 31, 2018.

All of our revenue is realized through contracts with customers. We recognize our revenue according to the contract type. On a daily basis,we recognize service revenue over time for contracts that provide for specific time, material and equipment charges, which we billperiodically, ranging from weekly to monthly. We use the input method to faithfully depict revenue recognition, because each day of serviceprovided represents value to the customer. The performance obligations in these contracts are satisfied, and revenue is recognized, as thework is performed. We have used the expedient available to recognize revenue when the billing corresponds to the value realized by thecustomer where appropriate.

We account for significant fixed-price contracts, mainly relating to our Subsea Products segment, and to a lesser extent in our SubseaProjects and Advanced Technologies segments, by recognizing revenue over time using an input, cost-to-cost measurement percentage-of-completion method. We use the input cost-to-cost method to faithfully depict revenue recognition. This commonly used method allowsappropriate calculation of progress on our contracts. A performance obligation is satisfied as we create a product on behalf of the customerover the life of the contract. The remainder of our revenue is recognized at the point in time when control transfers to the customer, thussatisfying the performance obligation.

We have elected to recognize the cost for freight and shipping as an expense when incurred. Taxes assessed by a governmental authoritythat are both imposed on and concurrent with a specific revenue-producing transaction, and that are collected by us from customers, areexcluded from revenue.

In our service-based business lines, which principally charge on a day rate basis for services provided, there is no significant impact in thepattern of revenue and profit recognition as a result of implementation of ASC 606. In our product-based business lines, we expect impactson the pattern of our revenue and profit recognition in our contracts using the percentage-of-completion method, as a result of therequirement to exclude uninstalled materials and significant inefficiencies from the measure of progress. This is most likely to occur in ourSubsea Products segment.

We apply judgment in the determination and allocation of transaction price to performance obligations, and the subsequent recognition ofrevenue, based on the facts and circumstances of each contract. We routinely review estimates related to our contracts and, where required,reflect revisions to profitability in earnings immediately. If an element of variable consideration has the potential for a significant futurereversal of revenue, we will constrain that variable consideration to a level intended to remove the potential future reversal. If a currentestimate of total contract cost indicates an ultimate loss on a contract, we recognize the projected loss in full when we determine it. In prioryears, we have recorded adjustments to earnings as a result of revisions to contract estimates. We strive to estimate our contract costs andprofitability accurately. However, there could be significant adjustments to overall contract costs in the future, due to changes in facts andcircumstances.

In general, our payment terms consist of those services billed regularly as provided and those products delivered at a point in time, whichare invoiced after the performance obligation is satisfied. Our product and service contracts with milestone payments due at agreed progresspoints during the contract are invoiced when those milestones are reached, which may differ from the timing of revenue recognition. Ourpayment terms generally do not provide financing of contracts to customers, nor do we receive financing from customers as a result of theseterms.

Please see Note 2 — "Revenue" — for more information on our revenue from contracts with customers.

Stock-Based Compensation. We recognize all share-based payments to directors, officers and employees over their vesting periods in theincome statement based on their estimated fair values. For more information on our employee benefit plans, see Note 9.

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Income Taxes. We provide income taxes at appropriate tax rates in accordance with our interpretation of the respective tax laws andregulations after review and consultation with our internal tax department, tax advisors and, in some cases, legal counsel in variousjurisdictions. We provide for deferred income taxes for differences between carrying amounts of assets and liabilities for financial and taxreporting purposes. We provide a valuation allowance against deferred tax assets when it is more likely than not that the asset will not berealized.

We recognize the benefit for a tax position if the benefit is more likely than not to be sustainable upon audit by the applicable taxingauthority. If this threshold is met, the tax benefit is then measured and recognized at the largest amount that we believe is greater than50% likely of being realized upon ultimate settlement. We account for any applicable interest and penalties on uncertain tax positions as acomponent of our provision for income taxes on our financial statements.

For more information on income taxes, please see Note 4.

Foreign Currency Translation. The functional currency for most of our foreign subsidiaries is the applicable local currency. Results ofoperations for foreign subsidiaries with functional currencies other than the U.S. dollar are translated into U.S. dollars using averageexchange rates during the period. Assets and liabilities of these foreign subsidiaries are translated into U.S. dollars using the exchange ratesin effect at the balance sheet date, and the resulting translation adjustments are recognized, net of tax, in accumulated othercomprehensive income (loss) as a component of shareholders' equity. All foreign currency transaction gains and losses are recognizedcurrently in the Consolidated Statements of Operations. We recorded $18 million , $5.2 million and $4.8 million of foreign currencytransaction losses in 2018 , 2017 and 2016 , respectively, and those amounts are included as a component of Other income (expense), netin our Consolidated Statement of Operations for the year ended December 31, 2018 .

Earnings per Share. For each year presented, the only difference between our annual calculated weighted average basic and diluted numberof shares outstanding is the effect of outstanding restricted stock units.

Repurchase Plan. In December 2014, our Board of Directors approved a share repurchase program under which we may repurchase up to 10million shares of our common stock on a discretionary basis. The program calls for the repurchases to be made in the open market, or inprivately negotiated transactions from time to time, in compliance with applicable laws, rules and regulations, including Rule 10b-18 underthe Securities Exchange Act of 1934, as amended, subject to market and business conditions, levels of available liquidity, cash requirementsfor other purposes, applicable legal requirements and other relevant factors. The timing and amount of any repurchases will be determinedby management based on its evaluation of these factors. We expect that any shares repurchased under the program will be held as treasurystock for future use. The program does not obligate us to repurchase any particular number of shares. We account for the shares we hold intreasury under the cost method, at average cost. Under the program, we had repurchased 2 million shares of our common stock for $100million through December 31, 2015 . We have not repurchased any shares under the program since December 31, 2015 .

Financial Instruments. We recognize all derivative instruments as either assets or liabilities in the balance sheet and measure thoseinstruments at fair value. Subsequent changes in fair value are reflected in current earnings, other comprehensive income (loss) or changesin assets or liabilities, depending on whether a derivative instrument is designated as part of a hedge relationship and, if it is, the type ofhedge relationship. See Note 7 for information relative to the interest rate swaps we have in effect.

New Accounting Standards . In January 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-01, "FinancialInstruments - Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities." This update:

• requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidationof the investee) to be measured at fair value, with changes in fair value recognized in net income; and

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• provides an expedient for the valuation and impairment assessment of equity investments without readily determinable fair values byrequiring a qualitative assessment to identify value and impairment - when a qualitative assessment indicates that an impairmentexists, an entity is required to measure the investment at fair value.

ASU No. 2016-01 was effective for us beginning on January 1, 2018, and we have utilized the expedient for valuing equity investmentswithout readily determinable fair values. This update has not had a material impact on our consolidated financial statements.

Effective January 1, 2019, we will adopt ASU 2018-011, an amendment to ASU 2016-02 "Leases" (collectively, the "New Leases Standard")that (1) requires lessees to recognize a right to use asset and a lease liability for virtually all leases, and (2) updates previous accountingstandards for lessors to align certain requirements with the updates to lessee accounting standards and the revenue recognition accountingstandards. In a recent update, targeted improvements were made that provide for (1) an optional new transition method for adoption thatresults in initial recognition of a cumulative effect adjustment to retained earnings in the year of adoption and (2) a practical expedient forlessors, under certain circumstances, to combine the lease and non-lease components of revenue for presentation purposes. We expect toelect the new optional transition method of adoption. For some of our contracts that could contain a lease component, we expect to applythe practical expedient and recognize revenue based on the service component, which we have determined is the predominant component ofour contracts.

We are finalizing our evaluation of the impacts that the adoption of this accounting guidance will have on the consolidated financialstatements, and expect a material impact on our Consolidated Balance Sheet as additional right of use assets and lease liabilities will berecognized upon adoption. We do not expect a material impact on our Consolidated Statement of Operations, Equity and Cash Flows fromthe adoption of the New Leases Standard.

In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other than Inventory."Previously, U.S. GAAP generally prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until theasset was sold to an outside party. The amendments in this update eliminate the exception for an intra-entity transfer of an asset other thaninventory. Two common examples of assets included within the scope of this update are intellectual property and property, plant andequipment. The exception for an intra-entity transfer of inventory will remain in place. The amendments in this update were effective for usbeginning January 1, 2018. This ASU has not had a material effect on our consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220) Reclassification ofCertain Tax Effects from Accumulated Other Comprehensive Income." The amendments in this update allow a reclassification fromaccumulated other comprehensive income to retained earnings for stranded tax effects resulting from the December 2017 enactment of U.S.tax reform legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). However, because the amendments only relate tothe reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws orrates be included in income from continuing operations is not affected. The amendments in this update also require certain disclosures aboutstranded tax effects. The amendments in this update will become effective for us beginning January 1, 2019, and early adoption ispermitted. We do not anticipate that this ASU will have a material effect on our consolidated financial statements.

In June 2018, the FASB issued ASU 2018-07, "Compensation - Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting." This ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods andservices from non-employees. The amendments in this ASU will become effective for us beginning January 1, 2019, and early adoption ispermitted. We do not anticipate that this ASU will have a material effect on our consolidated financial statements.

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2. Revenue

Revenue By Category

The following table presents Revenue disaggregated by business segment, geographical region, and timing of transfer of goods or services.

        Year Ended December 31,

(in thousands)   2018   2017   2016

Business Segment:              Energy Services and Products                Remotely Operated Vehicles   $ 394,801   $ 393,655   $ 522,121    Subsea Products   515,000   625,513   692,030    Subsea Projects   329,163   291,993   472,979    Asset Integrity   253,886   236,778   275,397  Total Energy Services and Products   1,492,850   1,547,939   1,962,527  Advanced Technologies   416,632   373,568   309,076    Total   $ 1,909,482   $ 1,921,507   $ 2,271,603

Geographic Operating Areas:              Foreign:                Africa   $ 239,959   $ 256,198   $ 486,615    United Kingdom   203,391   236,177   304,635    Norway   185,552   178,712   166,180    Asia and Australia   163,843   193,865   196,679    Brazil   64,004   42,607   73,280    Other   103,548   81,364   66,870  Total Foreign   960,297   988,923   1,294,259  United States   949,185   932,584   977,344

Total   $ 1,909,482   $ 1,921,507   $ 2,271,603

        Dec 31, 2018  

Timing of Transfer of Goods or Services:        Revenue recognized over time   $ 1,762,103    Revenue recognized at a point in time   147,379  

Total   $ 1,909,482  

Contract Balances

Our contracts with milestone payments have, in the aggregate, a significant impact on the Contract asset and the Contract liability balances.Milestones are contractually agreed with customers and relate to significant events across the contract lives. Some milestones are achievedbefore revenue is recognized, resulting in a Contract liability, other milestones are achieved after revenue is recognized resulting in aContract asset.

The following table provides information about Contract assets, and Contract liabilities from contracts with customers.

(in thousands)   Dec 31, 2018   Jan 1, 2018

Contract assets   $ 256,201   $ 171,956Contract liabilities   85,172   37,590

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Our payment terms consist of those services billed regularly as provided and those products delivered at a point in time, which are invoicedafter the performance obligation is satisfied. Our product and service contracts with milestone payments due at agreed progress pointsduring the contract are invoiced when those milestones are reached, which may differ from the timing of revenue recognition.

During the year ended December 31, 2018 , Contract assets increased by $84 million from its opening balance due to the revenuerecognition of $1.9 billion exceeding amounts billed of $1.8 billion . Contract liabilities increased $48 million from its opening balance, due todeferrals of milestone payments and billings totaling $77 million less revenue recognition of $29 million . There were no cancellations,impairments or other significant impacts in the period that relate to other categories of explanation.

Performance Obligations

As of December 31, 2018 , the aggregate amount of the transaction price allocated to remaining performance obligations was $292 million .We expect to recognize revenue of $229 million over the next twelve months.

The aggregate amount of transaction price allocated to remaining performance obligations that were unsatisfied (or partially unsatisfied) asof December 31, 2018 are noted above. In arriving at this value, we have used two expedients available to us and are not disclosingamounts in relation to performance obligations: (1) that are part of contracts with an original expected duration of one year or less; or (2)on contracts where we recognize revenue in line with the billing.

Due to the nature of our service contracts in our Remotely Operated Vehicle, Subsea Projects, Asset Integrity and Advanced Technologiessegments, the majority of our contracts either have initial contract terms of one year or less or have customer option cancellation clausesthat lead us to consider the original expected duration of one year or less.

In our Subsea Products and Advanced Technologies segments, we have long-term contracts that extend beyond one year, and these makeup the majority of the balance reported. We also have shorter-term product contracts with an expected original duration of one year or lessthat have been excluded.

Where appropriate, we have made estimates within the transaction price of elements of variable consideration within the contracts andconstrained those amounts to a level where we consider that it is probable that a significant reversal in the amount of cumulative revenuerecognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The amount of revenuerecognized in the year ended December 31, 2018 , which was associated with performance obligations completed or partially completed inprior periods was not significant.

As of December 31, 2018 , there was no outstanding liability balance for refunds or returns due to the nature of our contracts and theservices and products we provide. Our warranties are limited to assurance warranties that are of a standard length and are not consideredto be a material right. The majority of our contracts consist of a single performance obligation. When there are multiple obligations, we lookfor observable evidence of stand-alone selling prices on which to base the allocation. This involves judgment as to the appropriateness of theobservable evidence relating to the facts and circumstances of the contract. If we do not have observable evidence, we estimate stand-aloneselling prices by taking a cost plus margin approach, using typical margins from the type of service or product, customer and regionalgeography involved.

Costs to Obtain or Fulfill a Contract

In line with the available expedient, we capitalize costs to obtain a contract when those amounts are significant and the contract is expectedat inception to exceed one year in duration; otherwise, the costs are expensed in the period when incurred. Costs to obtain a contractprimarily consist of bid

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and proposal costs, which are incremental to our fixed costs. There was no balance or amortization of Costs to obtain a contract in thecurrent reporting period.

Costs to fulfill a contract primarily consist of certain mobilization costs incurred to provide services or products to our customers. These costsare deferred and amortized over the period of contract performance. The closing balance of Costs to fulfill a contract as of December 31,2018 was $13 million , with $6.5 million of amortization for the year ended December 31, 2018 . No impairment costs were recognized.

3. SELECTED BALANCE SHEET INFORMATIONThe following is information regarding selected balance sheet accounts:

    December 31,

(in thousands)   2018   2017Inventory:          Remotely operated vehicle parts and components   $ 108,939   $ 97,313  Other inventory, primarily raw materials   85,568   117,969  Total   $ 194,507   $ 215,282

           

Other current assets:          Prepaid expenses   60,858   64,901  Angola bonds   10,179   —  Total   71,037   64,901

           

Other Non-Current Assets:          Intangible assets, net   $ 79,995   $ 85,293  Angola bonds   —   68,280  Cash surrender value of life insurance policies   51,131   54,987  Investment in unconsolidated affiliates   39,333   49,094  Deferred income taxes   —   24,633  Other   31,859   34,458  Total   $ 202,318   $ 316,745

           

Accrued Liabilities:          Payroll and related costs   $ 114,676   $ 101,989  Accrued job costs   62,281   58,823  Deferred revenue   85,172   63,040  Income taxes payable   34,954   30,589  Other   95,022   95,817  Total   $ 392,105   $ 350,258

           

Other Long-Term Liabilities:          Deferred income taxes   $ 18,243   $ 42,040  Supplemental Executive Retirement Plan   42,992   45,037  Long-Term Incentive Plan   8,076   4,348  Accrued post-employment benefit obligations   3,239   3,352  Uncertain tax positions   17,903   5,566  Tax Act transition tax due after one year   7,813   —  Other   30,113   30,980  Total   $ 128,379   $ 131,323

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4. INCOME TAXES

In December 2017, the United States enacted the Tax Act, which included a number of changes to existing U.S. tax laws that have animpact on our income tax provision, most notably a reduction of the U.S. corporate income tax rate from 35% to 21% for tax yearsbeginning after December 31, 2017, and the creation of a quasi-territorial tax system with a one‑time mandatory transition tax on applicablepreviously deferred earnings of foreign subsidiaries. The Tax Act also makes prospective changes beginning in 2018, including a baseerosion and anti‑abuse tax ("BEAT"), a global intangible low‑taxed income ("GILTI") tax, additional limitations on the deductibility of interestexpense and repeal of the domestic manufacturing deduction. In the period ended December 31, 2017, we recorded a provisional net taxbenefit associated with the Tax Act and related matters of $189 million .

The provisional amounts recorded in 2017 related to the transition tax, remeasurement of deferred taxes, our reassessment of permanentlyreinvested earnings, valuation allowances, and actions taken in anticipation of the Tax Act were finalized and a net expense of $23 millionwas recorded during 2018. Although we have completed our accounting on the effect of the Tax Act in our financial statements, regulatoryguidance continues to be issued by the tax authorities. Any changes in the interpretation of the Tax Act as a result of such future regulatoryguidance, which could materially affect our tax obligations and effective tax rate, will be recorded in the period that current or futureproposed regulations become law.

Our provisions (benefit) for income taxes and our cash taxes paid are as follows:

  Year Ended December 31,

(in thousands)   2018   2017   2016Current:            Domestic   $ (1,564)   $ 13,390   $ (6,899)Foreign   16,146   37,381   25,561Total current   14,582   50,771   18,662Deferred:            Domestic   (22,905)   (213,200)   (8,617)Foreign   34,817   (21,813)   8,715Total deferred   11,912   (235,013)   98Total provision (benefit) for income taxes   $ 26,494   $ (184,242)   $ 18,760Cash taxes paid   $ 29,737   $ 43,347   $ 75,819

The components of income (loss) before income taxes are as follows:

  Year Ended December 31,

(in thousands)   2018   2017   2016Domestic   $ (132,138)   $ (93,053)   $ (180,132)Foreign   (53,695)   75,209   223,478Income (loss) before income taxes   $ (185,833)   $ (17,844)   $ 43,346

As of December 31, 2018 and 2017 , our worldwide deferred tax assets, liabilities and net deferred tax liabilities were as follows:

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  December 31,

(in thousands)   2018   2017Deferred tax assets:        Deferred compensation   $ 13,684   $ 22,325Deferred income   2,381   2,015Accrued expenses   13,683   11,652Net operating loss and other carryforwards   189,644   222,065Other   4,601   2,203Gross deferred tax assets   223,993   260,260Valuation allowances   (203,040)   (206,586)Total deferred tax assets   $ 20,953   $ 53,674Deferred tax liabilities:        Property and equipment   $ 36,850   $ 65,366Basis difference in equity investments   2,346   5,715Total deferred tax liabilities   $ 39,196   $ 71,081Net deferred income tax liability   $ 18,243   $ 17,407

Our net deferred tax liability is reflected within our balance sheet as follows:

  December 31,

(in thousands)   2018   2017Deferred tax liabilities   $ 18,243   $ 42,040Long-term deferred tax assets   —   (24,633)Net deferred income tax liability   $ 18,243   $ 17,407

At December 31, 2018 , we had approximately $781 million of net operating and other loss carryforwards that were generated in variousworldwide jurisdictions. We have no U.S. net operating losses available to reduce future payments of U.S. federal income taxes. Thecarryforwards include $711 million that do not expire and $70 million that will expire from 2019 through 2028 . We have recorded a totalvaluation allowance of $203 million on foreign operating losses and tax credit carryforwards as well as other deferred tax assets as ourmanagement believes that it is more likely than not that these deferred tax assets will not be realized.

A reconciliation of our beginning and ending amounts of valuation allowances is as follows:

    Year Ended December 31,

(in thousands)   2018   2017   2016

Balance at beginning of year   $ (206,586)   $ (4,200)   $ —Increase due principally to foreign net operating losses   (38,415)   (146,360)   (4,200)Increase due to tax credit carryforwards generated in foreign operations   (14,065)   (56,026)   —Reduction due to utilization of foreign tax credits generated in prior year   56,026   —   —

Balance at end of year   $ (203,040)   $ (206,586)   $ (4,200)

The utilization of the foreign tax credits generated in the prior year was as a result of the mandatory repatriation requirements of the TaxAct.

Reconciliations between the actual provision for income taxes (benefit) on continuing operations and that computed by applying the U.S.statutory rate of 21% for 2018 and 35% for 2017 and 2016 to income before income taxes were as follows:

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    Year Ended December 31,

(in thousands)   2018   2017   2016Income tax provision (benefit) at the U.S. statutory rate   $ (39,025)   $ (6,245)   $ 15,171Tax Act - earnings subject to tax-free repatriation   —   (222,019)   —Tax Act - net mandatory repatriation tax   8,790   —   —Tax Act - remeasure of net U.S. deferred tax liabilities   —   (23,124)   —Valuation allowances   38,415   89,217   4,200Foreign tax rate differential   475   (21,163)   (1,766)Stock compensation   2,135   3,112   —Uncertain tax positions   12,644   (836)   680Other items, net   3,060   (3,184)   475

Total provision (benefit) for income taxes   $ 26,494   $ (184,242)   $ 18,760

We recognize the benefit for a tax position if the benefit is more likely than not to be sustainable upon audit by the applicable taxingauthority. If this threshold is met, the tax benefit is then measured and recognized at the largest amount that we believe is greater than50% likely of being realized upon ultimate settlement.

We account for any applicable interest and penalties on uncertain tax positions as a component of our provision for income taxes on ourfinancial statements. We increased/(decreased) income tax expense by $1.7 million and $0.6 million in 2018 and 2017 , respectively, forpenalties and interest on uncertain tax positions, which brought our total liabilities for penalties and interest on uncertain tax positions to$4.3 million and $2.6 million on our balance sheets at December 31, 2018 and 2017 , respectively. All additions or reductions to thoseliabilities would affect our effective income tax rate in the periods of change.

A reconciliation of the beginning and ending amount of gross uncertain tax positions, not including associated foreign tax credits andpenalties and interest, is as follows:

  Year Ended December 31,

(in thousands)   2018   2017   2016Balance at beginning of year   $ 5,339   $ 6,330   $ 5,245Additions based on tax positions related to the current year   445   1,213   1,999Reductions for expiration of statutes of limitations   (260)   (650)   (1,028)Additions (reductions) based on tax positions related to prior years   10,540   314   114Reductions based on tax positions related to prior years   —   (962)   —Settlements   (1,093)   (906)   —Balance at end of year   $ 14,971   $ 5,339   $ 6,330

We believe approximately $8.3 million of gross uncertain tax positions will be resolved within the next 12 months. Including associatedforeign tax credits and penalties and interest, we have accrued a net total of $18 million and $5.6 million in the caption "other long-termliabilities" on our balance sheet at December 31, 2018 and 2017 , respectively, for uncertain tax positions.

We consider the earnings of our foreign subsidiaries to be indefinitely reinvested. As of December 31, 2018, we did not provide for deferredtaxes on earnings of our foreign subsidiaries that are indefinitely reinvested. If we were to make a distribution from the unremitted earningsof these subsidiaries, we would be subject to taxes payable to various jurisdictions, however, it is not practical to estimate the amount of taxthat would ultimately be due if remitted. If our expectations were to change regarding future tax consequences, we may be required torecord additional deferred taxes that could have a material effect on our Consolidated Balance Sheets, Consolidated Statements ofOperations or Consolidated Statements of Cash Flows.

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Our tax returns are subject to audit by taxing authorities in multiple jurisdictions. These audits often take years to complete and settle. Thefollowing lists the earliest tax years open to examination by tax authorities where we have significant operations:

Jurisdiction   PeriodsUnited States   2014United Kingdom   2015Norway   2007Angola   2013Brazil   2012Australia   2013

5. SELECTED INCOME STATEMENT INFORMATION The following schedule shows our revenue, costs and gross margins by services and products:

  Year Ended December 31,

(in thousands)   2018   2017   2016Revenue:            

Services   $ 1,245,927   $ 1,181,229   $ 1,509,786Products   663,555   740,278   761,817

Total revenue   1,909,482   1,921,507   2,271,603Cost of Services and Products:            

Services   1,135,084   1,040,817   1,330,218Products   578,212   625,843   615,438Unallocated expenses   66,960   60,237   46,720

Total cost of services and products   1,780,256   1,726,897   1,992,376Gross margin:            

Services   110,843   140,412   179,568Products   85,343   114,435   146,379Unallocated expenses   (66,960)   (60,237)   (46,720)

Total gross margin   $ 129,226   $ 194,610   $ 279,227

6. DEBTLong-term Debt consisted of the following:

    December 31,  (in thousands)   2018   20174.650% Senior Notes due 2024:   $ 500,000   $ 500,0006.000% Senior Notes due 2028: 300,000,000 300,000   —Term Loan Facility   —   300,000Fair value of interest rate swaps on $200 million of principal   (5,600)   (2,990)Unamortized debt issuance costs   (7,820)   (4,698)Revolving Credit Facility   —   —Long-term Debt   $ 786,580   $ 792,312

In November 2014, we completed the public offering of $500 million aggregate principal amount of 4.650% Senior Notes due 2024 (the"2024 Senior Notes"). We pay interest on the 2024 Senior Notes on May 15 and November 15 of each year. The 2024 Senior Notes arescheduled to mature on November 15, 2024.

In February 2018, we completed the public offering of $300 million aggregate principal amount of 6.000% Senior Notes due 2028 (the "2028Senior Notes"). We pay interest on the 2028 Senior

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Notes on February 1 and August 1 of each year. The 2028 Senior Notes are scheduled to mature on February 1, 2028.

We may redeem some or all of the 2024 Senior Notes and the 2028 Senior Notes (collectively, the "Senior Notes") at specified redemptionprices. We used the net proceeds from the 2028 Senior Notes to repay our term loan indebtedness described further below.

In October 2014, we entered into a credit agreement (as amended, the "Credit Agreement") with a group of banks. The Credit Agreementinitially provided for a $500 million five-year revolving credit facility (the "Revolving Credit Facility"). Subject to certain conditions, theaggregate commitments under the Revolving Credit Facility may be increased by up to $300 million at any time upon agreement between usand existing or additional lenders. Borrowings under the Revolving Credit Facility may be used for general corporate purposes. The CreditAgreement also provided for a $300 million term loan, which we repaid in full in February 2018, using net proceeds from the issuance of our2028 Senior Notes referred to above, and cash on hand.

In February 2018, we entered into Agreement and Amendment No. 4 to the Credit Agreement ("Amendment No. 4"). Amendment No. 4amended the Credit Agreement to, among other things, extend the maturity of the Revolving Credit Facility to January 25, 2023 with theextending Lenders, which represent 90% of the existing commitments of the Lenders, such that the total commitments for the RevolvingCredit Facility will be $500 million until October 25, 2021, and thereafter $450 million until January 25, 2023.

Borrowings under the Revolving Credit Facility bear interest at an Adjusted Base Rate or the Eurodollar Rate (both as defined in the CreditAgreement), at our option, plus an applicable margin based on our Leverage Ratio (as defined in the Credit Agreement) and, at our election,based on the ratings of our senior unsecured debt by designated ratings services, thereafter to be based on such debt ratings. Theapplicable margin varies: (1) in the case of advances bearing interest at the Adjusted Base Rate, from 0.125% to 0.750% ; and (2) in thecase of advances bearing interest at the Eurodollar Rate, from 1.125% to 1.750% . The Adjusted Base Rate is the highest of (1) the perannum rate established by the administrative agent as its prime rate, (2) the federal funds rate plus 0.50% and (3) the daily one-monthLIBOR plus 1% . We pay a commitment fee ranging from 0.125% to 0.300% on the unused portion of the Revolving Credit Facility,depending on our Leverage Ratio. The commitment fees are included as interest expense in our consolidated financial statements.

The Credit Agreement contains various covenants that we believe are customary for agreements of this nature, including, but not limited to,restrictions on our ability and the ability of each of our subsidiaries to incur debt, grant liens, make certain investments, make distributions,merge or consolidate, sell assets and enter into certain restrictive agreements. We are also subject to a maximum adjusted totalCapitalization Ratio (as defined in the Credit Agreement) of 55%. The Credit Agreement includes customary events of default and associatedremedies. As of December 31, 2018 , we were in compliance with all the covenants set forth in the Credit Agreement.

We have two interest rate swaps in place on a total of $200 million of the 2024 Senior Notes for the period to November 2024. See Note 7for a description of these interest rate swaps.

We incurred $6.9 million and $4.2 million of issuance costs related to the 2024 Senior Notes and the 2028 Senior Notes, respectively, and$2.6 million of new loan costs, including costs of the amendments prior to Amendment No. 4, related to the Credit Agreement. The costs,net of accumulated amortization, are included, as a reduction of Long-term debt in our Consolidated Balance Sheet, as it pertains to theSenior Notes, and in Other non-current assets as it pertains to the Credit Agreement. We are amortizing these costs to Interest expensethrough the maturity date for the Senior Notes and to January 2023 for the Credit Agreement.

We made cash interest payments of $37 million , $32 million and $29 million in 2018 , 2017 and 2016 , respectively.

7. COMMITMENTS AND CONTINGENCIES

Lease CommitmentsAt December 31, 2018 , we occupied several facilities under noncancellable operating leases expiring at various dates through 2035 . Futureminimum rentals under all of our operating leases, including vessel rentals, are as follows:

(in thousands)    2019   $ 35,0642020   32,2162021   29,0142022   28,2132023   27,083Thereafter   236,161Total Lease Commitments   $ 387,751

Rental expense, which includes hire of vessels, specialized equipment and real estate rental, was approximately $101 million , $97 millionand $205 million in 2018 , 2017 and 2016 , respectively.

InsuranceThe workers' compensation, maritime employer's liability and comprehensive general liability insurance policies that we purchase eachinclude a deductible layer, for which we would be responsible, that we consider financially prudent. Insurance above the deductible layerscan be by occurrence or in the aggregate. We determine the level of accruals for claims exposure by reviewing our historical experience andcurrent year claim activity. We do not record accruals on a present-value basis. We review larger claims with insurance adjusters andestablish specific reserves for known liabilities. We establish an additional reserve for incidents incurred but not reported to us for each yearusing our estimates and based on prior experience. We believe we have established adequate accruals for expected liabilities arising fromthose obligations. However, it is possible that future earnings could be affected by changes in our estimates relating to these matters.Litigation

In the ordinary course of business, we are, from time to time, involved in litigation or subject to disputes, governmental investigations orclaims related to our business activities, including, among other things:

claims related to our business activities, including, among other things:

• performance or warranty-related matters under our customer and supplier contracts and other business arrangements; and• workers’ compensation claims, Jones Act claims, occupational hazard claims, premises liability claims and other claims.

Although we cannot predict the ultimate outcome of these matters, we believe that our ultimate liability, if any, that may result from theseother actions and claims will not have a material adverse effect on our consolidated financial condition, results of operations or cash flows.However, because of the inherent uncertainty of litigation and other dispute resolution proceedings and, in some cases, the availability andamount of potentially available insurance, we can provide no assurance that the resolution of any particular claim or proceeding to which weare a party will not have a material effect on our consolidated financial condition, results of operations or cash flows for the fiscal period inwhich that resolution occurs.

Letters of Credit

We had $55 million and $67 million in letters of credit outstanding as of December 31, 2018 and 2017 , respectively, as guarantees in forcefor self-insurance requirements and various bid and performance bonds, which are usually for the duration of the applicable contract.Financial Instruments and Risk Concentration

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In the normal course of business, we manage risks associated with foreign exchange rates and interest rates through a variety of strategies,including the use of hedging transactions. As a matter of policy, we do not use derivative instruments unless we have an underlyingexposure. Other financial instruments that potentially subject us to concentrations of credit risk are principally cash and cash equivalentsand accounts receivable.

The carrying values of cash and cash equivalents approximate their fair values due to the short-term maturity of the underlying instruments.Accounts receivable are generated from a broad group of customers, primarily from within the energy industry, which is our major source ofrevenue. Due to their short-term nature, carrying values of our accounts receivable and accounts payable approximate fair market values.

We estimated the aggregate fair market value of the Senior Notes to be $625 million as of December 31, 2018 based on quoted prices.Since the market for the Senior Notes is not an active market, the fair value of the Senior Notes is classified within Level 2 in the fair valuehierarchy under U.S. GAAP (inputs other than quoted prices in active markets for similar assets and liabilities that are observable or can becorroborated by observable market data for substantially the full terms for the assets or liabilities).

We have two interest rate swaps in place on a total of $200 million of the 2024 Senior Notes for the period to November 2024. Theagreements swap the fixed interest rate of 4.650% on $100 million of the 2024 Senior Notes to the floating rate of one month LIBOR plus2.426% and on another $100 million to one month LIBOR plus 2.823%. We estimate the combined fair value of the interest rate swaps tobe a net liability of $5.6 million at December 31, 2018 , which is included on our balance sheet in our Other Long-term Liabilities Thesevalues were arrived at using a discounted cash flow model using Level 2 inputs.

Since the second quarter of 2015, the exchange rate for the Angolan kwanza relative to the U.S. dollar generally has been declining, withthe exception that the exchange rate was relatively stable during 2017. As our functional currency in Angola is the U.S. dollar, we recordedforeign currency transaction losses related to the kwanza of $19 million , $0.1 million and $7.3 million in 2018 , 2017 and 2016 , as acomponent of Other income (expense), net in our Consolidated Statements of Operations for those respective periods. Our foreign currencytransaction losses are related primarily to the remeasurement of our Angolan kwanza cash balances to U.S. dollars. Any conversion of cashbalances from kwanza to U.S. dollars is controlled by the central bank in Angola, and the central bank slowed this process from mid-2015 to2017, causing our kwanza cash balances to increase during that period of time. However, beginning in 2018, the Angolan central bank hasallowed us to repatriate cash from Angola. During 2018 , we were able to repatriate $74 million of cash from Angola.

As of December 31, 2018 and December 31, 2017 , we had the equivalent of approximately $9.3 million and $27 million of kwanza cashbalances, respectively, in Angola reflected on our balance sheet. The decrease in kwanza cash balances in 2018 was mainly attributable tothe repatriation of cash from Angola and cash used in our Angolan operations.

To mitigate our currency exposure risk in Angola, we have used kwanza to purchase equivalent Angolan central bank (Banco Nacional deAngola) bonds. The bonds are denominated as U.S. dollar equivalents, so that, upon payment of semi-annual interest and principal uponmaturity, payment is made in kwanza, equivalent to the respective U.S. dollars at the then-current exchange rate. In 2018 , we received atotal of $70 million proceeds from maturities and redemptions of Angola bonds and reinvested $10 million of the proceeds in similar assets.We previously believed the chance of selling the bonds before maturity and repatriating cash out of Angola was remote. Our intention was tohold the bonds to maturity, and to reinvest funds from maturing bonds in similar long-term assets. Because we intend to sell the bonds if weare able to repatriate the proceeds, we changed our accounting for these bonds from held-to-maturity securities to available-for-salesecurities.

We estimated the fair market value of the Angolan bonds to be $10 million at December 31, 2018 using quoted prices. Since the market forthe Angolan bonds is not an active market, the fair value of the Angolan bonds is classified within Level 2 in the fair value hierarchy underU.S. GAAP. As of December 31, 2018 , we have not recorded the difference between the fair market value and carrying

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amount of the outstanding bonds through the Consolidated Statement of Comprehensive Income (Loss) due to the insignificant differencebetween the fair market value and the carrying amount of the bonds.

As of December 31, 2018 , we classified $10 million of bonds due to mature in 2023 as Other current assets on our Consolidated BalanceSheet because we intend to sell these bonds to meet the needs of current operations in Angola.

8. OPERATIONS BY BUSINESS SEGMENT AND GEOGRAPHIC AREABusiness Segment Information

We are a global provider of engineered services and products, primarily to the offshore energy industry. Through the use of our appliedtechnology expertise, we also serve the defense, aerospace and commercial theme park industries. Our Energy Services and Productsbusiness consists of Remotely Operated Vehicles ("ROVs"), Subsea Products, Subsea Projects and Asset Integrity. Our ROV segmentprovides submersible vehicles operated from the surface to support offshore energy exploration, development and production activities. OurSubsea Products segment supplies a variety of specialty subsea hardware and related services. Our Subsea Projects segment providesmultiservice subsea support vessels and offshore diving and support vessel operations, primarily for inspection, maintenance and repair andinstallation activities. We also provide survey, autonomous underwater vehicle ("AUV") and satellite-positioning services. Our Asset Integritysegment provides asset integrity management and assessment services, nondestructive testing and inspection. Our Advanced Technologiesbusiness provides project management, engineering services and equipment for applications in non-energy industries. Unallocated Expensesare those not associated with a specific business segment. These consist of expenses related to our incentive and deferred compensationplans, including restricted stock and bonuses, as well as other general expenses, including corporate administrative expenses.

There are no differences in the basis of segmentation or in the basis of measurement of segment profit or loss in the year endedDecember 31, 2018 from those used in our consolidated financial statements for the years ended December 31, 2017 and 2016 .

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The table that follows presents Revenue, Income from Operations and Depreciation and Amortization Expense by business segment:

  Year Ended December 31,

(in thousands)   2018   2017   2016Revenue            

Energy Services and Products            Remotely Operated Vehicles   $ 394,801   $ 393,655   $ 522,121Subsea Products   515,000   625,513   692,030Subsea Projects   329,163   291,993   472,979Asset Integrity   253,886   236,778   275,397

Total Energy Services and Products   1,492,850   1,547,939   1,962,527Advanced Technologies   416,632   373,568   309,076

Total   $ 1,909,482   $ 1,921,507   $ 2,271,603Income (Loss) from Operations            

Energy Services and Products            Remotely Operated Vehicles   $ 1,641   $ 22,366   $ 25,193Subsea Products   5,614   45,539   75,938Subsea Projects   (86,008)   10,279   34,476Asset Integrity   8,660   11,231   7,551

Total Energy Services and Products   (70,093)   89,415   143,158Advanced Technologies   33,920   22,039   11,809Unallocated Expenses   (109,309)   (100,798)   (84,203)

Total   $ (145,482)   $ 10,656   $ 70,764Depreciation and Amortization Expense            

Energy Services and Products            Remotely Operated Vehicles   $ 111,311   $ 113,979   $ 140,967Subsea Products   53,085   52,561   53,759Subsea Projects   114,481   31,869   34,042Asset Integrity   6,904   7,715   14,336

Total Energy Services and Products   285,781   206,124   243,104Advanced Technologies   3,081   3,171   3,120Unallocated Expenses   4,728   4,224   4,023

Total   $ 293,590   $ 213,519   $ 250,247

             We determine income from operations for each business segment before interest income or expense, other income (expense) and provisionfor income taxes. We do not consider an allocation of these items to be practical.

During 2018, we recorded a pre-tax goodwill impairment of $76 million in our Subsea Projects segment, as a component of Depreciation andAmortization Expense. We also recorded the write-offs of certain equipment and intangible assets associated with exiting the land surveybusiness and equipment obsolescence of $7.6 million , attributable to each reporting segment as follows:

• Remotely Operated Vehicles - $0.6 million ;• Subsea Products - $1.5 million ; and• Subsea Projects - $5.5 million ;

During 2016, we recognized restructuring expenses related to severance costs of $11.6 million , attributable to each reporting segment asfollows:

• Remotely Operated Vehicles - $3.8 million ;• Subsea Products - $3.7 million ;• Subsea Projects - $2.1 million ;• Asset Integrity - $1.4 million ;• Advanced Technologies - $0.5 million ; and

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• Unallocated Expenses - $0.1 million .

Revenue from one customer, Royal Dutch Shell, accounted for 10% of our 2018 total consolidated annual revenue, and, revenue fromanother customer, BP plc and subsidiaries, accounted for 12% in 2017 and 18% in 2016 of our total consolidated annual revenue.

The following table presents Assets, Property and Equipment and Goodwill by business segment as of the dates indicated:

  December 31,

(in thousands)   2018   2017Assets        

Energy Services and Products        Remotely Operated Vehicles   $ 612,983   $ 650,832Subsea Products   723,774   788,586Subsea Projects   611,476   626,791Asset Integrity   241,693   268,055

Total Energy Services and Products   2,189,926   2,334,264Advanced Technologies   168,302   129,185Corporate and Other   466,770   560,501

Total   $ 2,824,998   $ 3,023,950Property and Equipment, net        

Energy Services and Products        Remotely Operated Vehicles   $ 353,139   $ 420,088Subsea Products   295,297   329,486Subsea Projects   274,518   272,649Asset Integrity   20,556   19,445

Total Energy Services and Products   943,510   1,041,668Advanced Technologies   11,229   10,850Corporate and Other   9,931   11,686

Total   $ 964,670   $ 1,064,204Goodwill        

Energy Services and Products        Remotely Operated Vehicles   $ 24,396   $ 24,777Subsea Products   99,744   103,128Subsea Projects   123,624   155,292Asset Integrity   143,515   150,560

Total Energy Services and Products   391,279   433,757Advanced Technologies   21,842   21,842

Total   $ 413,121   $ 455,599

All assets specifically identified with a particular business segment have been segregated. Cash and cash equivalents, certain other currentassets, certain investments and certain other assets have not been allocated to particular business segments and are included in Corporateand Other.

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The following table presents Capital Expenditures, including business acquisitions, by business segment for the periods indicated:

  Year Ended December 31,

(in thousands)   2018   2017   2016Capital Expenditures            

Energy Services and Products            Remotely Operated Vehicles   $ 45,732   $ 40,425   $ 50,339Subsea Products   25,149   27,711   56,669Subsea Projects   99,701   29,544   25,602Asset Integrity   2,874   3,651   3,910

Total Energy Services and Products   173,456   101,331   136,520Advanced Technologies   3,550   2,063   2,742Corporate and Other   1,033   1,564   3,251

Total   $ 178,038   $ 104,958   $ 142,513

Geographic Operating AreasThe following tables summarize certain financial data by geographic area:

                Year Ended December 31,

(in thousands)   2018   2017   2016Revenue            

Foreign:            Africa   $ 239,959   $ 256,198   $ 486,615United Kingdom   203,391   236,177   304,635Norway   185,552   178,712   166,180Asia and Australia   163,843   193,865   196,679Brazil   64,004   42,607   73,280Other   103,548   81,364   66,870

Total Foreign   960,297   988,923   1,294,259United States   949,185   932,584   977,344

Total   $ 1,909,482   $ 1,921,507   $ 2,271,603

             

      December 31,

(in thousands)   2018   2017Property and equipment, net            

Foreign:            Norway       $ 58,042   $ 78,279Africa       117,877   135,345United Kingdom       106,330   87,601Asia and Australia       48,837   50,057Brazil       51,282   50,842Other       21,374   25,346

Total Foreign       403,742   427,470United States       560,928   636,734

Total       $ 964,670   $ 1,064,204

             

Revenue is based on location where services are performed and products are manufactured.

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9. EMPLOYEE BENEFIT PLANSRetirement Investment PlansWe have several employee retirement investment plans that, taken together, cover most of our full-time employees. The OceaneeringRetirement Investment Plan is a 401(k) plan in which U.S. employees may participate by deferring a portion of their gross monthly salaryand directing us to contribute the deferred amount to the plan. We match a portion of the employees' deferred compensation. Ourcontributions to the 401(k) plan were $18 million , $17 million and $20 million for the plan years ended December 31, 2018 , 2017 and 2016, respectively.We also make matching contributions to foreign employee savings plans similar in nature to a 401(k) plan. In 2018 , 2017 and 2016 , thesecontributions, principally related to plans associated with U.K. and Norwegian subsidiaries, were $11 million , $9.1 million and $12 million ,respectively.

The Oceaneering International, Inc. Supplemental Executive Retirement Plan covers selected key management employees and executives,as approved by the Compensation Committee of our Board of Directors (the "Compensation Committee"). Under this plan, we accrue anamount determined as a percentage of the participant's gross monthly salary and the amounts accrued are treated as if they are invested inone or more investment vehicles pursuant to this plan. Expenses related to this plan during 2018 , 2017 and 2016 were $2.8 million , $3.2million and $3.3 million , respectively.

We had a defined benefit plan covering some of our employees in the U.K. The assets of the U.K. plan were invested in individualpensioners' annuities in anticipation of the plan settlement, which occurred in the fourth quarter of 2018. There were no plan assets orobligations for the U.K plan at December 31, 2018 . The projected benefit obligations for the U.K. plan were $21 million at December 31,2017 and the fair values of the plan assets (using Level 2 inputs) for the U.K. plan were $22 million at December 31, 2017 .

Incentive PlanUnder our Second Amended and Restated 2010 Incentive Plan (the "Incentive Plan"), shares of our common stock are made available forawards to employees and nonemployee members of our Board of Directors.

The Incentive Plan is administered primarily by the Compensation Committee; however, the full Board of Directors makes determinationsregarding awards to nonemployee directors under the Incentive Plan. The Compensation Committee or our Board of Directors, as applicable,determines the type(s) of award(s) to be made to each participant and sets forth in the related award agreement the terms, conditions andlimitations applicable to each award. Stock options, stock appreciation rights and stock and cash awards may be made under the IncentivePlan. There has been no stock option activity after December 31, 2010 and there are no options outstanding under the Incentive Plan. Wehave not granted any stock options since 2005 and the Compensation Committee has expressed its intention to refrain from using stockoptions as a component of employee compensation for our executive officers and other employees for the foreseeable future. Additionally,the Board of Directors has expressed its intention to refrain from using stock options as a component of nonemployee director compensationfor the foreseeable future.

In 2018 , 2017 and 2016 , the Compensation Committee granted awards of performance units to certain of our key executives andemployees. The performance units awarded are scheduled to vest in full on the third anniversary of the award date, or pro rata over threeyears if the participant meets certain age and years of service requirements. The Compensation Committee and the Board of Directorsapproved specific financial goals and measures (as defined), for each of the three -year periods ending December 31, 2020 , 2019 and 2018to be used as the basis for the final value of the performance units. The final value of the performance unit granted may range from $0 to$200 in each of 2018 and 2017 and from $0 to $150 in 2016 . Upon vesting and determination of value, the value of the performance unitswill be payable in cash. Compensation expense (benefit) related to the performance units was $3.9 million , $4.2 million and $(4.2) millionin 2018 , 2017 and 2016 , respectively. As of December 31, 2018 , there were 332,756 performance units outstanding.

During 2018 , 2017 and 2016 , the Compensation Committee granted restricted units of our common stock to certain of our key executivesand employees. During 2018 , 2017 and 2016 , our Board of

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Directors granted restricted common stock to our nonemployee directors. Over 85% , 80% , and 65% of the grants made to our employeesin 2018 , 2017 and 2016 , respectively, vest in full on the third anniversary of the award date, conditional upon continued employment. Theremainder of the grants made to employees vest pro rata over three years, as these participants meet certain age and years-of-servicerequirements. For the grants of restricted stock units to each of the participant employees, the participant will be issued a share of ourcommon stock for the participant's vested restricted stock units at the earlier of three years or, if the participant vested earlier after meetingthe age and service requirements, following termination of employment or service. The grants of restricted stock to our nonemployeedirectors were scheduled to vest in full on the first anniversary of the award date conditional upon continued service as a director, with oneexception. In February 2017, we granted shares of restricted common stock to a director who had given written notice of his intention toretire from our board of directors. Those shares were to vest if the director's service continued until the election of directors at oursubsequent annual meeting of shareholders in May 2017. The director fulfilled that requirement by resigning concurrent with that electionand the shares of restricted stock became vested.In April 2009, the Compensation Committee adopted a policy that Oceaneering will not provide U.S. federal income tax gross-up paymentsto any of its directors or executive officers in connection with future awards of restricted stock or stock units. This policy had no effect on theexisting service agreement with our Chairman, which provides for tax gross-up payments that could become applicable to such futureawards in limited circumstances, such as following a change in control of Oceaneering. Since August 2010, there have been no outstandingawards that provide for tax gross-up payments.The additional tax charge realized from tax deductions less than the financial statement expense of our restricted stock grants was $2.1million , $3.1 million and $3.0 million in 2018 , 2017 and 2016 , respectively. The 2018 and 2017 charges were recognized in ourConsolidated Statements of Operations and the 2016 charge was recognized in our Consolidated Statements of Equity.

The following is a summary of our restricted stock and restricted stock unit activity for 2018 , 2017 and 2016 :

  Number  

WeightedAverage

Fair Value  Aggregate

Intrinsic Value

Balance at December 31, 2015 831,291   60.49    Granted 587,953   27.90    Issued (278,572)   61.48   $ 7,866,000Forfeited (88,665)   43.03    

Balance at December 31, 2016 1,052,007   43.48    Granted 489,514   26.70    Issued (277,968)   61.90   $ 7,038,000Forfeited (81,748)   34.15    

Balance at December 31, 2017 1,181,805   32.84    Granted 653,286   18.05    

Issued (320,147)   47.62   $ 5,993,000Forfeited (71,047)   24.87    Balance at December 31, 2018 1,443,897   23.27    

           

The restricted stock units granted in 2018 , 2017 and 2016 carry no voting rights and no dividend rights. Each grantee of shares ofrestricted common stock is deemed to be the record owner of those shares during the restriction period, with the right to vote and receiveany dividends on those shares.

Grants of restricted stock units are valued at their estimated fair values as of their respective grant dates. The grants in 2018 , 2017 and2016 were subject only to vesting conditioned on continued

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employment or service as a nonemployee director; therefore, these grants were valued at the grant date fair market value using the closingprice of our stock on the New York Stock Exchange.

Compensation expense under the restricted stock plans was $10 million , $11 million and $14 million for 2018 , 2017 and 2016 ,respectively. As of December 31, 2018 , we had $10.0 million of future expense to be recognized related to our restricted stock unit plansover a weighted average remaining life of 1.6 years.

Post-Employment BenefitIn 2001, we entered into an agreement with our Chairman who was also then our Chief Executive Officer. That agreement was amended in2006 and in 2008. Pursuant to the amended agreement, the Chairman relinquished his position as Chief Executive Officer in May 2006 andbegan his post-employment service period on December 31, 2006, which continued through August 15, 2011, during which service periodthe Chairman, acting as an independent contractor, agreed to serve as nonexecutive Chairman of our Board of Directors. The agreementprovides the Chairman with post-employment benefits for ten years following August 15, 2011. The agreement also provides for medicalcoverage on an after-tax basis to the Chairman, his spouse and children for their lives. We recognized the net present value of the post-employment benefits over the expected service period. Our total accrued liabilities, current and long-term, under this post-employmentbenefit were $3.2 million and $3.9 million at December 31, 2018 and 2017 , respectively.

As part of the arrangements relating to the Chairman's post-employment benefits, we established an irrevocable grantor trust, commonlyknown as a "rabbi trust," to provide the Chairman greater assurance that we will set aside an adequate source of funds to fund payment ofthe post-retirement benefits under this agreement, including the medical coverage benefits payable to the Chairman, his spouse and theirchildren for their lives. In connection with establishment of the rabbi trust, we contributed to the trust a life insurance policy on the life ofthe Chairman, which we had previously obtained, and we agreed to continue to pay the premiums due on that policy. When the lifeinsurance policy matures, the proceeds of the policy will become assets of the trust. If the value of the trust exceeds $4 million , as adjustedby the consumer price index, at any time after January 1, 2012, the excess may be paid to us. However, because the trust is irrevocable,the assets of the trust are generally not available to fund our future operations until the trust terminates, which is not expected to be duringthe lives of the Chairman, his spouse or their children. Furthermore, no tax deduction will be available for our contributions to the trust;however, we may benefit from future tax deductions for benefits actually paid from the trust (although benefit payments from the trust arenot expected to occur in the near term, because we expect to make direct payments of those benefits for the foreseeable future).

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SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)(in thousands, except per share data)

2018Quarter Ended March 31 June 30 Sept. 30 Dec. 31 TotalRevenue $ 416,413 $ 478,674 $ 519,300 $ 495,095 $ 1,909,482Gross margin 18,828 29,728 47,635 33,035 129,226Income (loss) from operations (27,149) (19,637) (1,552) (97,144) (145,482)Net income (loss) (49,133) (33,076) (65,979) (64,139) (212,327)Diluted loss per share $ (0.50) $ (0.34) $ (0.67) $ (0.65) $ (2.16)Weighted average number of diluted sharesoutstanding 98,383 98,531 98,533 98,534 98,496

2017Quarter Ended March 31 June 30 Sept. 30 Dec. 31 TotalRevenue $ 446,176 $ 515,036 $ 476,120 $ 484,175 $ 1,921,507Gross margin 44,855 53,571 54,885 41,299 194,610Income (loss) from operations (150) 9,390 10,531 (9,115) 10,656Net income (loss) (7,534) 2,132 (1,768) 173,568 166,398Diluted earnings (loss) per share $ (0.08) $ 0.02 $ (0.02) $ 1.76 $ 1.68Weighted average number of diluted sharesoutstanding 98,138 98,751 98,270 98,852 98,764

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Exhibit 10.31

OCEANEERING RETIREMENT INVESTMENT PLAN

Amended and Restated Effective January 1, 2019(except as otherwise indicated)

Active 38842998.5

OCEANEERING RETIREMENT INVESTMENT PLAN

TABLE OF CONTENTS

ARTICLE IDEFINITIONS

ARTICLE IIADMINISTRATION

2.1 POWERS AND RESPONSIBILITIES OF THE COMPANY    202.2 DESIGNATION OF ADMINISTRATIVE AUTHORITY    202.3 ALLOCATION AND DELEGATION OF RESPONSIBILITIES    212.4 POWERS AND DUTIES OF THE ADMINISTRATOR    212.5 RECORDS AND REPORTS    222.6 APPOINTMENT OF ADVISERS    222.7 PAYMENT OF EXPENSES    232.8 CLAIMS PROCEDURE    232.9 CLAIMS REVIEW PROCEDURE    23

ARTICLE IIIELIGIBILITY

3.1 CONDITIONS OF ELIGIBILITY    253.2 EFFECTIVE DATE OF PARTICIPATION    253.3 DETERMINATION OF ELIGIBILITY    263.4 TERMINATION OF ELIGIBILITY    263.5 REHIRED EMPLOYEES AND BREAKS IN SERVICE    263.6 OMISSION OF ELIGIBLE EMPLOYEE; INCLUSION OF INELIGIBLE EMPLOYEE    26

ARTICLE IVCONTRIBUTION AND ALLOCATION

4.1 FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION    274.2 PARTICIPANT’S SALARY REDUCTION ELECTION    344.3 TIME OF PAYMENT OF EMPLOYER CONTRIBUTION    404.4 ALLOCATION OF CONTRIBUTION AND USAGE OF FORFEITURES AND EARNINGS    404.5 MAXIMUM ANNUAL ADDITIONS    434.6 ADJUSTMENT FOR EXCESS ANNUAL ADDITIONS    464.7 PLAN-TO-PLAN TRANSFERS (OTHER THAN ROLLOVERS) FROM QUALIFIEDPLANS    464.8 ROLLOVERS FROM OTHER PLANS    484.9 PARTICIPANT DIRECTED INVESTMENTS    504.10 QUALIFIED MILITARY SERVICE    514.11 FAMILY AND MEDICAL LEAVE ACT REQUIREMENTS    52

Active 38842998.5     i

ARTICLE VVALUATIONS

5.1 VALUATION OF THE TRUST FUND    535.2 METHOD OF VALUATION    53

ARTICLE VIDETERMINATION AND DISTRIBUTION OF BENEFITS

6.1 DETERMINATION OF BENEFITS UPON RETIREMENT    546.2 DETERMINATION OF BENEFITS UPON DEATH    546.3 DISABILITY RETIREMENT BENEFITS    556.4 DETERMINATION OF BENEFITS UPON TERMINATION    566.5 DISTRIBUTION OF BENEFITS    576.6 RESERVED    586.7 TIME OF DISTRIBUTION    586.8 REQUIRED MINIMUM DISTRIBUTIONS    586.9 DISTRIBUTION FOR MINOR OR INCOMPETENT INDIVIDUAL    656.10 LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN    656.11 PRE-RETIREMENT DISTRIBUTION OF EMPLOYER CONTRIBUTIONS    666.12 ADVANCE DISTRIBUTION FOR HARDSHIP    666.13 QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION    686.14 QUALFIED RESERVISTS DISTRIBUTION    686.15 DIRECT ROLLOVER    686.16 TRANSFER OF ASSETS FROM A MONEY PURCHASE PLAN    706.17 CORRECTIVE DISTRIBUTIONS    70

ARTICLE VIIAMENDMENT, TERMINATION, MERGERS AND LOANS

7.1 AMENDMENT    717.2 TERMINATION    727.3 MERGER, CONSOLIDATION OR TRANSFER OF ASSETS    727.4 LOANS TO PARTICIPANTS    72

ARTICLE VIIITOP-HEAVY

8.1 TOP-HEAVY PLAN REQUIREMENTS    748.2 DETERMINATION OF TOP-HEAVY STATUS    74

ARTICLE IXEMPLOYEE STOCK OWNERSHIP PLAN PROVISIONS

9.1 ESOP PROVISIONS    779.2 INVESTMENT IN EMPLOYER SECURITIES    779.3 DIVIDENDS ON COMPANY STOCK    779.4 ESOP DIVERSIFICATION    789.5 VOTING RIGHTS    789.6 FORMS OF DISTRIBUTION    78

Active 38842998.5     ii

9.7 PUT OPTION    789.8 APPLICATION OF ARTICLE IX TO NON-ESOP ALLOCATION    80

ARTICLE XMISCELLANEOUS

10.1 PARTICIPANT’S RIGHTS    8110.2 ALIENATION OF BENEFITS    8110.3 CONSTRUCTION AND INTERPRETATION OF PLAN    8210.4 GENDER AND NUMBER    8210.5 LEGAL ACTION    8310.6 PROHIBITION AGAINST DIVERSION OF FUNDS    8310.7 EMPLOYER’S AND TRUSTEE’S PROTECTIVE CLAUSE    8310.8 INSURER’S PROTECTIVE CLAUSE    8410.9 RECEIPT AND RELEASE FOR PAYMENTS    8410.10 ACTION BY THE EMPLOYER    8410.11 NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY    8410.12 HEADINGS    8510.13 APPROVAL BY INTERNAL REVENUE SERVICE    8510.14 ELECTRONIC MEDIA    8510.15 PLAN CORRECTION    8510.16 UNIFORMITY    86

ARTICLE XIPARTICIPATING EMPLOYERS

11.1 ADOPTION BY OTHER EMPLOYERS    8711.2 REQUIREMENTS OF PARTICIPATING EMPLOYERS    8711.3 DESIGNATION OF AGENT    8711.4 EMPLOYEE TRANSFERS    8711.5 PARTICIPATING EMPLOYER CONTRIBUTION AND FORFEITURES    8711.6 AMENDMENT    8811.7 DISCONTINUANCE OF PARTICIPATION    8811.8 ADMINISTRATOR’S AUTHORITY    8811.9 PROVISIONS APPLIED SEPARATELY (OR JOINTLY) FOR PARTICIPATING NON-AFFILIATED EMPLOYERS    8811.10 TOP-HEAVY APPLIED SEPARATELY FOR PARTICIPATING NON-AFFILIATED EMPLOYERS    89

Active 38842998.5     iii

OCEANEERING RETIREMENT INVESTMENT PLAN

(As Amended and Restated Effective January 1, 2019)

RECITALS

WHEREAS, Oceaneering International, Inc. (the “ Company ”) heretofore established the Oceaneering Retirement Investment Plan (the “ Plan”), effective April 1, 1982, which is intended to constitute a tax-qualified profit sharing plan within the meaning of section 401(a) of the Internal RevenueCode of 1986, as amended from time to time (the “ Code ”), in recognition of the contribution made to its successful operation by its employees and forthe exclusive benefit of its eligible employees and the eligible employees of its affiliates that adopt the Plan; and

WHEREAS, under the terms of the Plan, the Company has the ability to amend the Plan, provided the Trustee joins in such amendment if theprovisions of the Plan affecting the Trustee are amended; and

WHEREAS, the Company previously amended the Plan on several occasions, including to add qualified cash or deferred arrangement within themeaning  of  Code  Section  401(k),  and  amended  and  restated  the  Plan,  effective  January  1,  2013,  to  convert  the  Plan  from  a  pre-approved  prototypedocument to an individually designed plan in order to add provisions which convert the Plan’s Company stock fund into an employee stock ownershipplan in compliance with Code Section 4975(e)(7) and Code Section 401(a)(28); and

WHEREAS, effective January 1, 2019, the desires to amend and restate the Plan to (i) convert the Company Stock fund from a unitized fund to anon-unitized fund, (ii) reflect all prior amendments to the 2013 restatement of the Plan, (iii) adopt the law change with respect to hardship withdrawals,and (iv) make certain other administrative and design changes; and

WHEREAS, the Plan and underlying trust are intended to meet the requirements of Code Sections 401(a), 401(k) and 501(a) and the EmployeeRetirement Income Security Act of 1974, as either may be amended from time to time.

NOW, THEREFORE, effective January 1, 2019, except as otherwise provided herein, the Company, in accordance with the provisions of the Planpertaining to amendments thereof, amends, restates and continues the Plan to provide as follows:

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ARTICLE IDEFINITIONS

1.1 “ Account ” means any separate notational account established and maintained by the Administrator for each Participant under the Plan. The term“Participant’s Account” or “Participant’s Account Balance” generally means the sum of all Accounts being maintained for the Participant, whichrepresents  the  Participant’s  total  interest  in  the  Plan.  To  the  extent  applicable,  a  Participant  may  have  any  (or  all)  of  the  following  notationalAccounts:

(a) the Elective Deferral Account;

(b) the Matching Contribution Account;

(c) the QACA Account;

(d) the Qualified Nonelective Contribution Account;

(e) the Rollover Account;

(f) the Roth Contribution Account;

(g) the Roth Rollover Account;

(h) the Transfer Account; and

(i) any other  account,  including the  prior  matching contribution account  (2-year  cliff-vested),  prior  matching contribution account  (5-yeargraded  vested),  and  prior  profit  sharing  account  (2-year  cliff-vested)  and  any  overlapping  account  or  sub-account,  necessary  for  theadministration of the Plan.

1.2 “ Act ” means the Employee Retirement Income Security Act of 1974, as it may be amended from time to time.

1.3 “ Administrator ”  means  the  Advisory  Committee  of  the  Company  or  such  other  person,  committee  or  entity  designated  by  the  Companypursuant to Section 2.2 to administer the Plan on behalf of the Company, and if no such person, committee or entity is so designated, then theCompany.

1.4 “ Affiliated Employer ” means any corporation which is a member of a controlled group of corporations (as defined in Code Section 414(b))which includes the Company; any trade or business (whether or not incorporated) which is under common control (as defined in Code Section414(c)) with the Company; any organization (whether or not incorporated) which is a member of an affiliated service group (as defined in CodeSection 414(m)) which includes the Company; and any other entity required to be aggregated with the Company pursuant to Regulations underCode Section 414(o).

1.5 “ Anniversary Date ” means the last day of the Plan Year.

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1.6 “ Annual Additions ” means, for purposes of applying the limitations of Code Section 415, the sum credited to a Participant’s Accounts for anyLimitation  Year  of  (1)  Employer  contributions,  (2)  Employee  contributions,  (3)  forfeitures,  (4)  amounts  allocated  to  an  individual  medicalaccount, as defined in Code Section 415(1)(2) which is part of a pension or annuity plan maintained by the Employer, (5) amounts derived fromcontributions paid or accrued which are attributable to post-retirement medical benefits allocated to the separate account of a key employee (asdefined  in  Code  Section  419A(d)(3))  under  a  welfare  benefit  plan  (as  defined  in  Code  Section  419(e))  maintained  by  the  Employer  and  (6)allocations under a simplified employee pension plan.

Annual Additions for purposes of Code Section 415 shall not include restorative payments. A restorative payment is a payment made to restorelosses to a Plan resulting from actions by a fiduciary for which there is reasonable risk of liability for breach of a fiduciary duty under the Act orunder  other  applicable  federal  or  state  law,  where  participants  who  are  similarly  situated  are  treated  similarly  with  respect  to  the  payments.Generally, payments are restorative payments only if the payments are made in order to restore some or all of the plan’s losses due to an action(or a failure to act) that creates a reasonable risk of liability for such a breach of fiduciary duty (other than a breach of fiduciary duty arising fromfailure to remit contributions to the Plan). This includes payments to a plan made pursuant to a Department of Labor order, the Department ofLabor’s Voluntary Fiduciary Correction Program (“VFC”),  or  a court-approved settlement,  to restore losses to a qualified defined contributionplan  on  account  of  the  breach  of  fiduciary  duty  (other  than  a  breach  of  fiduciary  duty  arising  from failure  to  remit  contributions  to  the  Plan),Payments  made  to  the  Plan  to  make  up  for  losses  due  merely  to  market  fluctuations  and  other  payments  that  are  not  made  on  account  of  areasonable risk of liability for breach of a fiduciary duty under the Act are not restorative payments and generally constitute contributions that areconsidered annual additions.

Annual  additions  for  purposes  of  Code  Section  415  shall  not  include:  (1)  The  direct  transfer  of  a  benefit  or  employee  contributions  from  aqualified plan to this Plan; (2) rollover contributions (as described in Code Sections 401(a)(31), 402(c)(1), 403(a)(4), 403(b)(8), 408(d)(3), and457(e)(16)); (3) Repayments of loans made to a participant from the Plan; and (4) Repayments of amounts described in Code Section 411(a)(7)(B)  (in  accordance  with  Code Section  411(a)(7)(C))  and  Code Section  411(a)(3)(D)  or  repayment  of  contributions  to  a  governmental  plan  (asdefined in Code Section 414(d)) as described in Code Section 415(k)(3), as well as Employer restorations of benefits that are required pursuant tosuch repayments.

1.7 “ Beneficiary ” means the person (or entity) to whom the share of a deceased Participant’s interest in the Plan is payable. Section 6.8 contains adefinition of “designated Beneficiary” for purposes of that Section.

1.8 “ Catch-Up Contribution ” means, effective January 1, 2008, Elective Deferrals and, effective January 1, 2016, Roth Contributions made to thePlan by a Catch-Up Eligible Participant during any taxable year of such Participant that are in excess of:

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(a) a  statutory  dollar  limit  on  Elective  Deferrals  and  Roth  Contributions  or  Annual  Additions  as  provided  in  Code  Sections  401(a)(30),402(h), 403(b), 408, 415(c), or 457(b)(2) (without regard to Code Section 457(b)(3)), as applicable; or

(b) Plan limit on Elective Deferrals and Roth Contributions which is not a limit provided in (a) above.

Catch-Up Contributions for a Participant for a Participant’s taxable year may not exceed the dollar limit on Catch-Up Contributions under CodeSection 414(v)(2)(B)(i) for the Participant’s taxable year as announced by the Secretary of the Treasury.

1.9 “ Catch-Up Eligible Participant ” means, effective January 1, 2008, a Participant who:

(a) is eligible to defer Compensation pursuant to Section 4.2; and

(b) will attain age 50 or over by the end of the Participant’s taxable year.

1.10 “ Code ” means the Internal Revenue Code of 1986, as amended from time to time.

1.11 “ Company ”  means  Oceaneering  International,  Inc.,  a  corporation,  with  principal  offices  in  the  State  of  Texas,  and  any  successor  and  anypredecessor which has maintained this Plan.

1.12 “ Compensation ” means, with respect to any Participant and except as otherwise provided herein,  such Participant’s wages,  salaries,  fees forprofessional  services  and  other  amounts  received  (without  regard  to  whether  or  not  an  amount  is  paid  in  cash)  for  personal  services  actuallyrendered  in  the  course  of  employment  with  the  Employer  maintaining  the  Plan  to  the  extent  that  the  amounts  are  includible  in  gross  income(including,  but  not  limited  to,  commissions  paid  salesmen,  compensation  for  services  on  the  basis  of  a  percentage  of  profits,  commissions  oninsurance premiums, tips, bonuses, fringe benefits, and reimbursements or other expense allowances under a nonaccountable plan as described inRegulation Section 1.62-2(c)) for a Plan Year (the “determination period”).

Compensation shall exclude (a)(1) contributions made by the Employer to a plan of deferred compensation to the extent that the contributions arenot includible in the gross income of the Participant for the taxable year in which contributed, (2) Employer contributions made on behalf of anEmployee  to  a  simplified  employee  pension  plan  described  in  Code  Section  408(k)  to  the  extent  such  contributions  are  excludable  from  theEmployee’s gross income, (3) any distributions from a plan of deferred compensation; (b) amounts realized from the exercise of a non-qualifiedstock option, or when restricted stock (or property) held by an Employee either becomes freely transferable or is no longer subject to a substantialrisk of forfeiture; (c) amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option; and (d) otheramounts which receive special tax benefits, or contributions made by the Employer (whether or not under a salary reduction agreement) towardsthe purchase of any annuity contract described in Code Section 403(b) (whether or not the contributions are actually excludable from the grossincome of the Employee).

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For purposes of this Section, the determination of Compensation shall be made by:

(a) including amounts, for purposes of Elective Deferrals, which are contributed by the Employer pursuant to a salary reduction agreementand which are not includible in the gross income of the Participant under Code Sections 125, 132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b) or457(b),  and  employee  contributions  described  in  Code  Section  414(h)(2)  that  are  treated  as  Employer  contributions.  For  this  purpose,amounts not includible in gross income under Code Section 125 shall be deemed to include any amounts not available to a Participant incash in lieu of group health coverage because the Participant is unable to certify that the Participant has other health coverage, providedthe Employer does not request or collect information regarding the Participant’s other health coverage as part of the enrollment processfor the health plan.

(b) including  pre-participation  Compensation  paid  during  the  Plan  Year  while  not  a  Participant  in  the  component  of  the  Plan  for  whichCompensation is being used.

(c) including Post-Severance Compensation.

Compensation in excess of $200,000 (or such other amount provided in the Code) shall be disregarded for all purposes other than for purposes ofsalary deferral elections and/or Roth Contributions pursuant to Section 4.2. Such amount shall be adjusted for increases in the cost-of-living inaccordance with Code Section 401(a)(17)(B), except that the dollar increase in effect on January 1 of any calendar year shall be effective for thePlan Year beginning with or within such calendar year. For any “determination period” of less than twelve (12) months, the Compensation limitshall  be  an  amount  equal  to  the  Compensation  limit  for  the  calendar  year  in  which  the  “determination  period”  begins  multiplied  by  the  ratioobtained  by  dividing  the  number  of  full  months  in  the  short  “determination  period”  by  twelve  (12).  A “determination  period”  is  not  less  thantwelve (12) months solely because a Participant’s Compensation does not include Compensation paid during a “determination period” while theParticipant was not a Participant in the Plan (or a component of the Plan).

If  any Employees are excluded from the Plan (or  from any component  of  the Plan),  then Compensation for  any such Employees who becomeeligible or cease to be eligible to participate in the Plan (or in the component of the Plan) during a Plan Year shall only include Compensationwhile such Employees are Eligible Employees of the Plan (or of such component of the Plan).

For purposes of this Section, if the Plan is a plan described in Code Section 413(c) or 414(f) (a plan maintained by more than one Employer), thelimitation applies separately with respect to the Compensation of any Participant from each Employer maintaining the Plan.

For purposes of deferral  contributions,  Compensation shall  mean the total  gross earnings,  including payments for commissions,  overtime, shiftpremiums, depth premiums, bonuses, and amounts paid to US citizens in the course of their employment with

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Oceaneering  Services  S.  de  RL  de  CV  that  would  otherwise  qualify  as  Compensation  under  this  paragraph,  but  excluding  foreign  housing,consumables, schooling, overseas or hardship allowances, reimbursements of expenses, taxes, or moving allowances, income realized or deemedto  be  realized  from  the  exercise  or  award  of  stock  options,  restricted  stock  units,  stock  appreciation  rights,  performance  units  or  othercompensation under stock bonus or thrift or other such plans, amounts paid on a foreign (non-US) payroll (other than amounts paid to US citizensin  the  course  of  their  employment  with  Oceaneering  Services  S.  de  RL  de  CV,  any  non-cash  imputed  income,  and  any  other  payments  orallowances of any kind for foreign or domestic service that are not a function of direct salary or pay based on service or performance.

If,  in  connection  with  the  adoption of  any  amendment,  the  definition  of  Compensation  has  been modified,  then,  except  as  otherwise  providedherein,  for  Plan  Years  prior  to  the  Plan  Year  which  includes  the  adoption  date  of  such  amendment,  Compensation  means  compensationdetermined pursuant to the terms of the Plan then in effect.

1.13 “ Company Stock ” or “ Employer Securities ” shall mean common stock of the Company, which is considered an employer security that isreadily tradable on an established market in accordance with Regulation Section 1.401(a)(35)-1(f)(5) and Code Section 401(a)(22).

1.14 “ Contract ” or “ Policy ” means any life insurance policy, retirement income policy or annuity contract (group or individual) issued pursuant tothe terms of  the Plan.  In the event of  any conflict  between the terms of this  Plan and the terms of any contract  purchased hereunder,  the Planprovisions shall control.

1.15 “ Directed Account ” means that portion of a Participant’s interest in the Plan with respect to which the Participant has directed the investment inaccordance with the Participant Direction Procedures.

1.16 “ Disability ” means a physical or mental condition of a Participant resulting from bodily injury, disease, or mental disorder which renders suchParticipant incapable of continuing usual and customary employment with the Employer. The disability of a Participant shall be determined by alicensed physician. The determination shall be applied uniformly to all Participants.

1.17 “ Effective Date ” means January 1, 2019, except (i) as otherwise provided in specific provisions of the Plan and (ii) that provisions of the Planrequired to  have an earlier  effective  date  by application of  statute  and/or  regulation shall  be effective  as  of  the required effective  date  in  suchstatute and/or regulation.

1.18 “ Elective Deferral ” means any Employer contributions made to the Plan at the election of the Participant in lieu of cash Compensation pursuantto Section 4.2. With respect to any taxable year, a Participant’s Elective Deferrals is the sum of all employer contributions made on behalf of suchParticipant pursuant to an election to defer under any qualified cash or deferred arrangement (“ CODA ”) described in Code Section 401(k), anysalary reduction simplified employee pension described in Code Section 408(k)(6),

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any SIMPLE IRA plan described in Code Section 408(p) and any plan described under Code Section 501(c)(18), and any employer contributionsmade on the behalf of a Participant for the purchase of an annuity contract under Code Section 403(b) pursuant to a salary reduction agreement.Elective Deferrals shall not include any deferrals properly distributed as excess Annual Additions pursuant to Section 4.6(a).

1.19 “ Elective Deferral Account ” means the separate account established and maintained by the Administrator for each Participant with respect tothe Participant’s total interest in the Plan resulting from Elective Deferrals.  Amounts in the Elective Deferral Account are nonforfeitable whenmade and are subject to the distribution restrictions of Section 4.2(e).

1.20 “ Eligible Employee ” means any Employee, except as provided below. The following Employees shall not be eligible to participate in this Plan:

(a) Employees of Affiliated Employers unless such Affiliated Employers have specifically adopted this Plan in writing.

(b) An individual shall not be an Eligible Employee if such individual is not reported on the payroll records of the Employer as a commonlaw employee or  is  classified as  a  Leased Employee.  In particular,  it  is  expressly intended that  individuals  not  treated as  common lawemployees  by  the  Employer  on  its  payroll  records  and  out-sourced  workers,  are  neither  Employees  nor  Eligible  Employees,  and  areexcluded from Plan participation even if a court or administrative agency determines that such individuals are common law employeesand not independent contractors.

(c) Unless or until otherwise provided, Employees who became Employees as the result of a “Code Section 410(b)(6)(C) transaction” willnot be Eligible Employees until the expiration of the transition period beginning on the date of the transaction and ending on the last dayof the first Plan Year beginning after the date of the transaction. A Code Section 410(b)(6)(C) transaction is an asset or stock acquisition,merger, or similar transaction involving a change in the Employer of the Employees of a trade or business that is subject to the specialrules set forth in Code Section 410(b)(6)(C).

(d) Employees who are nonresident aliens (within the meaning of Code Section 7701(b)(1)(B)) and who receive no earned income (within themeaning  of  Code  Section  911(d)(2))  from  the  Employer  which  constitutes  income  from  sources  within  the  United  States  (within  themeaning of Code Section 861(a)(3)).

(e) Employees  who are  paid  exclusively  on  payrolls  other  than  United  States  payrolls,  Puerto  Rico  Employees,  and  temporary  employeeswhile on a temporary status. For Plan purposes, a temporary employee is an employee who is hired in a temporary position. A temporaryposition is  (i)  a  position which is  expected by the  Employer/Affiliate  to  be  of  limited duration or  (ii)  for  a  particular  project  upon theconclusion of which the employee is expected by the Employer/Affiliate to be terminated.

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1.21 “ Employee ” means any common law employee, Leased Employee or other person to the extent that the Code treats such an individual as anemployee of the Employer for purposes of the Plan, such as (for certain purposes) any person who is employed by an Affiliated Employer.

1.22 “ Employer ” means the Company and each Participating Employer.

1.23 “ ESOP Allocation ” shall mean the portion of each Participant’s Accounts that are invested by the Trustee in shares of Company Stock pursuantto the direction of the Participant under the Plan and any Matching Contributions made by the Company pursuant to the Plan that are either madein the form of Company Stock or cash, which is used to acquire shares of Company Stock. ESOP Allocations, if any, are intended to constitute anemployee stock ownership plan within the meaning of Code Section 4975(e)(7) and the Trustee may invest up to one hundred percent (100%) ofthe assets of all ESOP Allocations in shares of Company Stock in accordance with the terms of the Plan.

1.24 “ Excess Contributions ” means, with respect to a Plan Year, the excess of Elective Deferrals made on behalf of Participants who are HighlyCompensated Employees for the Plan Year over the maximum amount of such contributions permitted. Excess Contributions shall be treated asan Annual Addition pursuant to Section 1.6.

1.25 “ Excess Deferrals ” shall mean those Elective Deferrals of a Participant that either (1) are made during the Participant’s taxable year and whichexceed the dollar limitation under Code Section 402(g) (including, if applicable, the dollar limitation on Catch-Up Contributions defined in CodeSection 414(v)) for such year; or (2) are made during a calendar year and exceed the dollar limitation under Code Section 402(g) (including, ifapplicable, the dollar limitation on Catch-Up Contributions defined in Code Section 414(v)) for the Participant’s taxable year beginning in suchcalendar year, counting only Elective Deferrals made under this Plan and any other plan, contract or arrangement maintained by the Employer.

1.26 “ Fiduciary ”  means  any  person  who  (a)  exercises  any  discretionary  authority  or  discretionary  control  respecting  management  of  the  Plan  orexercises  any  authority  or  control  respecting  management  or  disposition  of  its  assets,  (b)  renders  investment  advice  for  a  fee  or  othercompensation, direct or indirect, with respect to any monies or other property of the Plan or has any authority or responsibility to do so, or (c) hasany discretionary authority or discretionary responsibility in the administration of the Plan.

1.27 “ Forfeiture ” means that portion of a Participant’s Account that is not Vested, and which becomes a Forfeiture at the time described below:

The earlier of:

(a) the distribution of the entire Vested portion of the Participant’s Account of a Participant who has severed employment with the Employer.For  purposes  of  this  provision,  if  the  Participant  has  a  Vested benefit  of  zero (determined without  regard to  the  Participant’s  RolloverAccount), then such Participant shall be

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deemed to have received a distribution of such Vested benefit as of the date on which the severance of employment occurs, or

(b) the last day of the Plan Year in which a Participant who has severed employment with the Employer incurs five (5) consecutive 1-YearBreaks in Service.

In addition, the term “Forfeiture” shall also include amounts deemed to be Forfeitures pursuant to any other provisions of this Plan. Regardless ofthe preceding provisions, if a Participant is eligible to share in the allocation of Forfeitures in the year in which the

Forfeiture would otherwise occur, then the Forfeiture will not occur until the end of the subsequent Plan Year.

For purposes of this Plan, any Forfeiture will be disposed of in the Plan Year in which the Forfeiture arises.

1.28 “ Former Employee ” means an Employee who had a severance from employment with the Employer or an Affiliated Employer.

1.29 “ 415 Compensation ” with respect to any Participant means such Participant’s wages, salaries, fees for professional services and other amountsreceived (without regard to whether or not an amount is paid in cash) for personal services actually rendered in the course of employment with theEmployer  maintaining  the  Plan  to  the  extent  that  the  amounts  are  includible  in  gross  income (including,  but  not  limited  to,  commissions  paidsalesmen, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits,and reimbursements or other expense allowances under a nonaccountable plan as described in Regulation Section 1.62-2(c)) for a Plan Year.

415  Compensation  shall  exclude  (a)(1)  contributions  made  by  the  Employer  to  a  plan  of  deferred  compensation  to  the  extent  that,  thecontributions are not includible in the gross income of the Participant for the taxable year in which contributed, (2) Employer contributions madeon behalf of an Employee to a simplified employee pension plan described in Code Section 408(k) to the extent such contributions are excludablefrom the Employee’s gross income, (3) any distributions from a plan of deferred compensation; (b) amounts realized from the exercise of a non-qualified stock option, or when restricted stock (or property) held by an Employee either becomes freely transferable or is no longer subject to asubstantial risk of forfeiture; (c) amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option;and  (d)  other  amounts  which  receive  special  tax  benefits,  or  contributions  made  by  the  Employer  (whether  or  not  under  a  salary  reductionagreement)  towards  the  purchase  of  any  annuity  contract  described  in  Code  Section  403(b)  (whether  or  not  the  contributions  are  actuallyexcludable from the gross income of the Employee).

Notwithstanding the above, the determination of 415 Compensation shall be made by:

(a) including any Elective Deferrals,  and any amount which is contributed by the Employer at the election of the Participant pursuant to asalary reduction

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agreement and which is not includible in the gross income of the Participant by reason of Code Sections 125, 132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b) or 457(b), and employee contributions described in Code Section 414(h)(2) that are treated as Employer contributions. Forthis purpose, amounts not includible in gross income under Code Section 125 shall be deemed to include any amounts not available to aParticipant  in  cash  in  lieu  of  group  health  coverage  because  the  Participant  is  unable  to  certify  that  the  Participant  has  other  healthcoverage, provided the Employer does not request or collect information regarding the Participant’s other health coverage as part of theenrollment process for the health plan,

(b) including Post-Severance Compensation.

Effective for Limitation Years beginning on and after July 1, 2007, amounts listed in (A) through (E) herein, that are paid by the later of2½ months after a Participant’s severance from employment with the Employer or the end of the Limitation Year that includes the date ofthe  Participant’s  severance  from  employment  with  the  Employer,  shall  be  considered  415  Compensation.  Any  other  payment  ofcompensation  paid  after  severance  of  employment  that  is  not  described  in  the  following  types  of  compensation  is  not  consideredcompensation within the meaning of Code Section 415(c)(3), even if payment is made within the time period specified above.

(A) 415 Compensation shall include regular pay after severance of employment if:

(i) The  payment  is  regular  compensation  for  services  during  the  Participant’s  regular  working  hours,  or  compensation  forservices outside the Participant’s regular working hours (such as overtime or shift differential), commissions, bonuses, orother similar payments; and

(ii) The  payment  would  have  been  paid  to  the  Participant  prior  to  a  severance  from  employment  if  the  Participant  hadcontinued in employment with the Employer.

(B) Leave  cash-outs  shall  be  included  in  415  Compensation  if  those  amounts  would  have  been  included  in  the  definition  of  415Compensation if they were paid prior to the Participant’s severance from employment with the Employer and the amounts are forunused  accrued  bona  fide  sick,  vacation,  or  other  leave,  but  only  if  the  Participant  would  have  been  able  to  use  the  leave  ifemployment had continued.

(C) Deferred compensation shall  be included in 415 Compensation if  those amounts would have been included in the definition of415 Compensation  if  they  were  paid  prior  to  the  Participant’s  severance  from employment  with  the  Employer  maintaining  thePlan and the amounts are received

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pursuant to a nonqualified unfunded deferred compensation plan, but only if the payment would have been paid if the Participanthad continued in employment with the Employer and only to the extent that the payment is includible in the Participant’s grossincome.

(D) “Differential Pay” for any Plan Year after December 31, 2008, Compensation shall include any “differential wage payment” assuch term is defined by Code Section 3401(h)(2), that is made by the Employer to an individual who does not currently performservices  for  the  Employer  as  a  result  of  qualified  military  service  as  defined  by  Code  Section  414(u)(5),  to  the  extent  thosepayments do not exceed the amounts the individual would have received if the individual had continued to perform services forthe Employer.

(E) Salary continuation payments for disabled participants shall not be included in 415 Compensation.

1.30 “ Highly Compensated Employee ” means an Employee described in Code Section 414(q) and the Regulations thereunder, and generally meansany Employee who:

(a) was a “five percent owner” of the Employer at any time during the “determination year” or the “look-back year.” “Five percent owner”means any person who owns (or is considered as owning within the meaning of Code Section 318) more than five percent (5%) of theoutstanding stock of the Employer or stock possessing more than five percent (5%) of the total combined voting power of all stock of theEmployer or, in the case of an unincorporated business, any person who owns more than five percent (5%) of the capital or profits interestin  the  Employer.  ln  determining percentage ownership  hereunder,  employers  that  would otherwise  be  aggregated under  Code Sections414(b), (c), (m) and (o) shall be treated as separate employers; or

(b) for the “look-back year” had 415 Compensation from the Employer in excess of $80,000. The $80,000 amount is adjusted at the sametime and  in  the  same manner  as  under  Code  Section  415(d),  except  that  the  base  period  is  the  calendar  quarter  ending  September  30,1996.

The “determination year” means the Plan Year for which testing is being performed, and the “look-back year” means the immediately precedingtwelve (12) month period.

In determining who is a Highly Compensated Employee, Employees who are nonresident aliens and who received no earned income (within themeaning of Code Section 911(d)(2)) from the Employer constituting United States source income within the meaning of Code Section 861(a)(3)shall not be treated as Employees. If an Employee who is a nonresident alien has U.S. source income, that Employee is treated as satisfying thisdefinition  if  all  of  such  Employee’s  U.S.  source  income  from the  Employer  is  exempt  from U.S.  income  tax  under  an  applicable  income  taxtreaty. Additionally, all Affiliated Employers shall be taken into account as a single employer and Leased Employees within

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the  meaning  of  Code  Sections  414(n)(2)  and  414(o)(2)  shall  be  considered  Employees  unless  such  Leased  Employees  are  covered  by  a  plandescribed in Code Section 414(n)(5) and are not covered in any qualified plan maintained by the Employer. The exclusion of Leased Employeesfor  this  purpose  shall  be  applied  on  a  uniform  and  consistent  basis  for  all  of  the  Employer’s  retirement  plans.  Highly  Compensated  FormerEmployees  shall  be  treated  as  Highly  Compensated  Employees  without  regard  to  whether  they  performed  services  during  the  “determinationyear.”

1.31 “ Hour of Service ”  means  (1)  each  hour  for  which  an  Employee  is  directly  or  indirectly  compensated  or  entitled  to  Compensation  by  theEmployer  for  the  performance  of  duties  (these  hours  will  be  credited  to  the  Employee  for  the  computation  period  in  which  the  duties  areperformed); (2) each hour for which an Employee is directly or indirectly compensated or entitled to compensation by the Employer (irrespectiveof whether the employment relationship has terminated) for reasons other than performance of duties (such as vacation, holidays, sickness, juryduty, disability, lay-off, military duty or leave of absence) during the applicable computation period (these hours will be calculated and creditedpursuant  to  Department  of  Labor  regulation  2530.200b-2,  which  is  incorporated  herein  by  reference);  (3)  each  hour  for  which  back  pay  isawarded or agreed to by the Employer without regard to mitigation of damages (these hours will be credited to the Employee for the computationperiod  or  periods  to  which  the  award  or  agreement  pertains  rather  than  the  computation  period  in  which  the  award,  agreement  or  payment  ismade). The same Hours of Service shall not be credited both under (1) or (2), as the case may be, and under (3).

Notwithstanding (2) above, (i) no more than 501 Hours of Service are required to be credited to an Employee on account of any single continuousperiod during which the Employee performs no duties (whether or not such period occurs in a single computation period); (ii) an hour for whichan Employee is directly or indirectly paid, or entitled to payment, on account of a period during which no duties are performed is not required tobe credited to the Employee if such payment is made or due under a plan maintained solely for the purpose of complying with applicable worker’scompensation,  or  unemployment  compensation  or  disability  insurance  laws;  and  (iii)  Hours  of  Service  are  not  required  to  be  credited  for  apayment which solely reimburses an Employee for medical or medically related expenses incurred by the Employee.

For purposes of (2) above, a payment shall be deemed to be made by or due from the Employer regardless of whether such payment is made by ordue from the Employer directly, or indirectly through, among others, a trust fund, or insurer, to which the Employer contributes or pays premiumsand regardless of whether contributions made or due to the trust fund, insurer, or other entity are for the benefit of particular Employees or are onbehalf of a group of Employees in the aggregate.

For purposes of this Section, Hours of Service will be credited for employment with the following predecessor employers: Oceaneering Canada,Ltd.; Nauticos Corporation; Reflange, Inc.; Oceaneering Asset Integrity, Inc.; Grayloc Products, LLC; ABB Vetco Gray; Frog AGV Systems Inc.;AIRSIS; C&C Technologies, Inc.; and Blue Ocean Technologies, LLC.

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1.32 “ Income ” means the gains or losses for the “applicable computation period” allocable to an “excess amount”, which amount shall be determinedand allocated, at the discretion of the Administrator, using any of the methods set forth below:

(a) Method  of  allocating  Income.  The  Administrator  may  use  any  reasonable  method  for  computing  the  Income  allocable  to  an  “excessamount” for the “applicable computation period,” provided that the method is used consistently for all Participants and for all correctivedistributions  under  the  Plan  for  the  “applicable  computation  period,”  and  is  used  by  the  Plan  for  allocating  earnings  to  a  Participant’s“specific account(s).”

(b) Alternative method of allocating Income. The Administrator may allocate Income to an “excess amount” for the “applicable computationperiod” by multiplying the earnings for the “applicable computation period” allocable to the “Employer contributions” taken into accountunder  the  test  or  limitation  giving  rise  to  such  “excess  amount”  by  a  fraction,  the  numerator  of  which  is  the  “excess  amount”  for  theEmployee for the “applicable computation period,” and the denominator of which is the sum of:

(1) The “specific account(s)” balance(s) taken into account under the test or limitation giving rise to such “excess amount” as of thebeginning of the “applicable computation period,” and

(2) Any  additional  amount  of  such  “Employer  contributions”  made  for  the  “applicable  computation  period”  to  the  “specificaccount(s).”

(c) For  purposes  of  calculating  the  Income  attributable  to  Excess  Deferrals  of  Section  4.2(h),  the  terms  “applicable  computation  period”,“Employer contributions”, “excess amount”, and “specific account(s)” will have the following substitutions:

(1) The taxable year of the Participant shall be substituted for the “applicable computation period”;

(2) Elective Deferrals shall be substituted for “Employer contributions”;

(3) Excess Deferrals shall be substituted for “excess amount”; and

(4) The Elective Deferral Account shall be substituted for the “specific account(s).”

(d) For purposes of calculating the Income attributable to Excess Contributions of Section 4.6(b), the terms “applicable computation period”,“Employer contributions”, “excess amount”, and “specific account(s)” will have the following substitutions:

(1) The Plan Year shall he substituted for the “applicable computation period”;

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(2) Elective Deferrals shall be substituted for “Employer contributions”;

(3) Excess Contributions shall be substituted for “excess amount”;

(4) The  Elective  Deferral  Account  and  the  QACA  Account  and/or  the  Qualified  Nonelective  Contribution  Account,  shall  besubstituted for the “specific account(s).”

1.33 “ Investment Manager ” means any Fiduciary described in Act Section 3(38).

1.34 “ Leased Employee ” means any person (other than an Employee of the recipient Employer) who, pursuant to an agreement between the recipientEmployer and any other person or entity (“leasing organization”), has performed services for the recipient (or for the recipient and related personsdetermined in accordance with Code Section 414(n)(6)) on a substantially full time basis for a period of at least one year, and such services areperformed under primary direction or control by the recipient Employer.  Contributions or benefits provided a Leased Employee by the leasingorganization,  which  are  attributable  to  services  performed  for  the  recipient  Employer,  shall  be  treated  as  provided  by  the  recipient  Employer.Furthermore, Compensation for a Leased Employee shall only include Compensation from the leasing organization that is attributable to servicesperformed for the recipient Employer.

A Leased Employee shall not be considered an employee of the recipient Employer if: (a) such employee is covered by a money purchase pensionplan providing: (1) a non-integrated employer contribution rate of at least ten percent (10%) of compensation, as defined in Code Section 415(c)(3), (2) immediate participation, and (3) full and immediate vesting; and (b) leased employees do not constitute more than twenty percent (20%)of the recipient Employer’s nonhighly compensated work force.

1.35 “ Limitation Year ” means the Plan Year.  However,  the Company may elect  a different  Limitation Year by amending the Plan.  All  qualifiedplans  maintained  by  the  Company  must  use  the  same  Limitation  Year.  Furthermore,  unless  there  is  a  change  to  a  new  Limitation  Year,  theLimitation Year will be a twelve (12) consecutive month period. In the case of an initial Limitation Year, the Limitation Year will be the twelve(12)  consecutive  month  period  ending  on  the  last  day  of  the  initial  Plan  Year.  If  the  Limitation  Year  is  amended  to  a  different  twelve  (12)consecutive month period, the new Limitation Year must begin on a date within the Limitation Year in which the amendment is made.

1.36 “ Matching Contribution ” means any Employer matching contributions made at the Employer’s discretion to the Plan based on a Participant’sElective Deferrals and Roth Contributions as provided for in Section 4. l(b) of this Plan.

1.37 “ Matching Contribution Account ”  means  the  separate  account  established  and  maintained  by  the  Administrator  for  each  Participant  withrespect to the Participant’s total interest in the Plan resulting from Matching Contributions.

1.38 “ Non-ESOP Allocation ” shall mean the portion of each Participant’s Accounts that are invested by the Trustee in investments other than sharesof Company Stock pursuant to

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the direction of the Participant under the Plan. Non-ESOP Allocations, if any, are intended to constitute a qualified profit sharing plan within themeaning of Code Section 401(a) which includes a cash or deferred arrangement within the meaning of Code Section 401(k).

1.39 “ Nonhighly Compensated Employee ” means any Employee who is not a Highly Compensated Employee.

1.40 “ Normal Retirement Age ” means the Participant’s 55th birthday. A Participant shall become fully Vested in the Participant’s Account uponattaining Normal Retirement Age (if the Participant is still employed by the Employer on or after that date).

1.41 “ Normal Retirement Date ” means the date a Participant attains Normal Retirement Age.

1.42 “ 1-Year Break in Service ” means a Period of Severance of at least 12 consecutive months.

1.43 “ Participant ” means any Employee or Former Employee who has satisfied the requirements of Sections 3.1 and 3.2 and entered the Plan and iseligible to accrue benefits under the Plan. In addition, the term “Participant” also includes any individual who was a Participant (as defined in thepreceding sentence) and who must continue to be taken into account under a particular provision of the Plan (e.g., because the Participant has anAccount Balance in the Plan).

1.44 “ Participant Direction Procedures ” means such instructions,  guidelines  or  policies,  the terms of  which are  incorporated herein,  as  shall  beestablished pursuant to Section 4.9 and observed by the Administrator and applied to Participants who have Participant Directed Accounts.

1.45 “ Participating Employer ” means an entity who adopts the Plan pursuant to Section 11.1, with such adopting entities set forth on Appendix Ahereto.

1.46 “  Period of Service ”  means  each  twelve  (12)  month  period  of  service  commencing  with  the  Employee’s  first  day  of  employment  orreemployment with the Employer or Affiliated Employer and ending on the date a 1-Year Break in Service begins. The first day of employmentor  reemployment  is  the  first  day  the  Employee  performs  an  Hour  of  Service.  An  Employee  who  incurs  a  Period  of  Severance  of  twelve  (12)months or less will also receive service-spanning credit for all such Periods of Severance. Fractional periods of a year will be expressed in termsof days. A Participant’s whole year Periods of Service is equal to the sum of all full and partial periods of service, whether or not such service iscontinuous or contiguous, and whether or not such service is actual service or imputed service (under the service-spanning rule above), expressedin the number of whole years represented by such sum.

Periods  of  Service  with  any  Affiliated  Employer  shall  be  recognized.  Furthermore,  Periods  of  Service  with  any  predecessor  employer  thatmaintained this Plan shall be recognized.

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In addition, Periods of Service with Oceaneering Canada, Ltd.; Nauticos Corporation; Reflange, Inc.; Oceaneering Asset Integrity, Inc.; GraylocProducts,  LLC;  ABB  Vetco  Gray;  Frog  AGV  Systems  Inc.;  AIRSIS;  C&C  Technologies,  Inc.  and  Blue  Ocean  Technologies,  LLC  shall  berecognized for purposes of eligibility, vesting and allocations.

In the event the method of crediting service is amended from the hour-of-service method to the elapsed-time method, an Employee will receivecredit for a Period of Service consisting of:

(a) A number of years equal  to the number of Years of Service credited to the Employee before the computation period during which theamendment occurs; and

(b) The greater of (1) the Periods of Service that would be credited to the Employee under the elapsed-time method for service during theentire computation period in which the amendment occurs or (2) the service taken into account under the hour-of-service method as of thedate of the amendment.

In  addition,  the  Employee  will  receive  credit  for  service  subsequent  to  the  amendment  commencing  on  the  day  after  the  last  day  of  thecomputation period in which the amendment occurs.

1.47 “ Period of Severance ” means a continuous period of time during which an Employee is not employed by the Employer. Such period begins onthe  date  the  Employee  retires,  quits  or  is  discharged,  or  if  earlier,  the  twelve  (12)  month  anniversary  of  the  date  on  which  the  Employee  wasotherwise first absent from service.

In the case of an individual who is absent from work for maternity or paternity reasons, the twelve (12) consecutive month period beginning onthe first anniversary of the first day of such absence shall not constitute a 1-Year Break in Service. For purposes of this paragraph, an absencefrom work for maternity or paternity reasons means an absence (a) by reason of the pregnancy of the individual, (b) by reason of the birth of achild  of  the  individual,  (c)  by  reason  of  the  placement  of  a  child  with  the  individual  in  connection  with  the  adoption  of  such  child  by  suchindividual, or (d) for purposes of caring for such child for a period beginning immediately following such birth or placement.

1.48 “ Plan ” means this Oceaneering Retirement Investment Plan, as amended and restated effective January 1, 2019. and including all amendmentsthereto.

1.49 “ Plan Year’’ means  the  Plan’s  accounting  year  of  twelve  (12)  months  commencing  on  January  1  of  each  year  and  ending  the  followingDecember 31.

1.50 “ Post-Severance Compensation ”  means  payments  made  within  2½ months  after  severance  from employment  (within  the  meaning  of  CodeSection  401(k)(2)(B)(i)(I))  if  they  are  payments  that,  absent  a  severance  from employment,  would  have  been  paid  to  the  Employee  while  theEmployee continued in employment with the Employer and are regular compensation for services during the Employee’s regular working hours,

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compensation for services outside the Employee’s regular working hours (such as overtime or shift differential), commissions, bonuses, or othersimilar compensation, and payments for accrued bona fide sick, vacation or other leave, but only if the Employee would have been able to use theleave  if  employment  had  continued.  Any  payments  not  described  above  are  not  considered  compensation  if  paid  after  severance  fromemployment, even if they are paid within 2½ months following severance from employment, except for payments to an individual who does notcurrently perform services for  the Employer by reason of qualified military service (within the meaning of Code Section 414(u))  to the extentthese  payments  do  not  exceed  the  amounts  the  individual  would  have  received  if  the  individual  had  continued  to  perform  services  for  theEmployer rather than entering qualified military service.

1.51 “ Qualified Automatic Contribution Arrangement ” or “ QACA ” means the type of safe harbor 401(k) plan provided for under Code Section401(k)(13) reflected in Section 4.1(d) of this Plan.

1.52 “ QACA Account ”  means  the  separate  account  established  and  maintained  by  the  Administrator  for  each  participant  with  respect  to  theParticipant’s total interest in the Plan resulting from Safe Harbor Contributions as provided for in Section 4.1(d).

1.53 “ Qualified Nonelective Contribution ” means any Employer contributions to the Plan that are designated as such or any other provision of thePlan.  All  such contributions  shall  be  allocated to  the  Qualified Nonelective Contribution Account,  and shall  be  fully  vested and subject  to  therestrictions on distributions from that Account.

1.54 “ Qualified Nonelective Contribution Account ”  means  the  separate  account  established  and  maintained  by  the  Administrator  for  eachParticipant with respect to the Participant’s total interest in the Plan resulting from Qualified Nonelective Contributions. Amounts in the QualifiedNonelective Contribution Account are nonforfeitable when made and are subject to the distribution restrictions of Section 4.2(e).

1.55 “ Regulation ” means the Income Tax Regulations as promulgated by the Secretary of the Treasury or a delegate of the Secretary of the Treasury,and as amended from time to time.

1.56 “ Retirement Date ”  means  the  date  as  of  which  a  Participant  retires  for  reasons  other  than  Disability,  whether  such  retirement  occurs  on  aParticipant’s Normal Retirement Date or a later date.

1.57 “ Rollover Account ”  means  the  separate  account  established  and  maintained  by  the  Administrator  for  each  Participant  with  respect  to  suchParticipant’s interest in the Plan resulting from amounts that are rolled over from another plan or Individual Retirement Account in accordancewith Section 4.8. Amounts in the Rollover Account are nonforfeitable when made. References to the term Rollover Account includes a separateRoth Rollover Account, except as otherwise provided.

1.58 “ Roth Contribution ”  means  any  contributions  made  to  the  Plan  at  the  election  of  the  Participant  in  lieu  of  cash  Compensation  as  “RothContributions” pursuant to Section

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4.2(c). The references to “Elective Deferrals” in the second and third sentences in the definition of “Elective Deferrals” in Section 1.18 shall bedeemed to include a Participant’s Roth Contributions for any taxable year.

1.59 “ Roth Contribution Account ” means the separate account established and maintained by the Administrator for each Participant with respect tothe Participant’s total interest in the Plan resulting from Roth Contributions. Amounts in the Roth Contribution Account are nonforfeitable whenmade and are subject to the distribution restrictions of Section 4.2(e).

1.60 “ Roth Rollover Account ” means a separate Rollover Account established and maintained by the Administrator for each Participant with respectto such Participant’s interest in the Plan resulting from the Participant’s Roth Rollover Contributions.

1.61 “ Roth Rollover Contributions ” means a rollover from another Roth account under an applicable retirement plan described in Code Section402A(e)(1) by a Participant in accordance with Section 4.8(f).

1.62 “ Safe Harbor Contribution ” or “ QACA Safe Harbor Contribution ” means the matching contribution provided for in Section 4.1(d) of thisPlan that is intended to comply with Qualified Automatic Contribution Arrangement (QACA) provisions of Code Section 401(k)(13).

1.63 “ Shareholder-Employee ” means a Participant who owns more than five percent (5%) of the Employer’s outstanding capital stock during anyyear in which the Employer elected to be taxed as a Small Business Corporation under the applicable Code Section.

1.64 “ Terminated Participant ”  means  a  person  who  has  been  a  Participant,  but  whose  employment  has  been  terminated  other  than  by  death,Disability or retirement.

1.65 “ Top-Heavy Plan ” means a plan described in Section 8.1(a).

1.66 “ Top-Heavy Plan Year ” means a Plan Year during which the Plan is a Top-Heavy Plan.

1.67 “ Transfer Account ”  means  the  separate  account  established  and  maintained  by  the  Administrator  for  each  Participant  -with  respect  to  theParticipant’s  total  interest  in  the  Plan  resulting  from  amounts  transferred  to  this  Plan  from  a  direct  plan-to-plan  transfer  in  accordance  withSection 4.7. To the extent that the Plan is a direct or indirect transferee of a defined benefit or defined contribution pension plan, then the fundstransferred to this Plan from such other plan shall be treated as funds that are subject to a life annuity form of payment as well as the survivorannuity requirements  of  Code Sections 401(a)(11) and 417.  The preceding sentence does not  apply to amounts rolled over into a Participant’sRollover Account, even if from a pension plan.

1.68 “ Trustee ” means the person or entity named as trustee herein or in any separate trust forming a part of this Plan, and any successors, effectiveupon the written acceptance of such person or entity to serve as Trustee.

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1.69 “ Trust Fund ” means the assets of the Plan and Trust as the same shall exist from time to time.

1.70 “ Valuation Date ” means the Anniversary Date and may include any other date or dates deemed necessary or appropriate by the Administratorfor the valuation of the Participants’ Accounts during the Plan Year, which may include any day that the Trustee, any transfer agent appointed bythe Trustee or the Employer or any stock exchange used by such agent, is open for business. Nothing in this Plan requires or implies a uniformValuation Date for all Accounts; thus, certain valuation provisions that apply to an Account that is not valued on each business day will have noapplication, in operation, to an Account that is valued on each business day.

1.71 “ Vested ” means the nonforfeitable portion of any Account maintained on behalf of a Participant.

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ARTICLE IIADMINISTRATION

2.1 POWERS AND RESPONSIBILITIES OF THE COMPANY .

(a) Appointment of Trustee and Administrator . In addition to the general powers and responsibilities otherwise provided for in this Plan,the Company shall be empowered to appoint and remove the Trustee and the Administrator from time to time as it deems necessary forthe  proper  administration  of  the  Plan  to  ensure  that  the  Plan  is  being  operated  for  the  exclusive  benefit  of  the  Participants  and  theirBeneficiaries in accordance with the terms of the Act, the Plan and the Code. The Company may appoint counsel, specialists, advisers,agents (including any nonfiduciary agent) and other persons as the Company deems necessary or desirable in connection with the exerciseof  its  fiduciary duties  under  this  Plan.  The Company may compensate  such agents  or  advisers  from the assets  of  the Plan as  fiduciaryexpenses (but not including any business (settlor) expenses of the Company), to the extent not paid by the Company.

(b) Appointment of Investment Manager .  The  Company  may  appoint,  at  its  option,  an  Investment  Manager  (qualified  under  theInvestment  Company Act  of  1940 as amended),  investment  adviser,  or  other  agent  to provide investment  direction to the Trustee withrespect to any or all of the Plan assets. Such appointment shall be given by the Company in writing in a form acceptable to the Trusteeand shall specifically identify the Plan assets with respect to which the Investment Manager or other agent shall have authority to directthe investment.

(c) Funding policy and method . The Company shall establish a funding policy and method, i.e., it shall determine whether the Plan has ashort run need for liquidity (e.g., to pay benefits) or whether liquidity is a long run goal and investment growth (and stability of same) is amore current need, or shall appoint a qualified person to do so. The Company or its delegate shall communicate such needs and goals tothe Trustee, who shall coordinate such Plan needs with its investment policy. The communication of such a funding policy and methodshall not, however, constitute a directive to the Trustee as to the investment of the Trust Funds. Such funding policy and method shall beconsistent with the objectives of this Plan and with the requirements of Title I of the Act.

(d) Review of fiduciary performance . The Company shall periodically review the performance of any Fiduciary or other person to whomduties  have  been  delegated  or  allocated  by  it  under  the  provisions  of  this  Plan  or  pursuant  to  procedures  established  hereunder.  Thisrequirement may be satisfied by formal periodic review by the Company or by a qualified person specifically designated by the Company,through day-to-day conduct and evaluation, or through other appropriate ways.

2.2 DESIGNATION OF ADMINISTRATIVE AUTHORITY .  The  Advisory  Committee  of  the  Company  shall  be  the  Administrator.  TheCompany may appoint any person,

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including, but not limited to, the Employees of the Company, to perform the duties of the Administrator. Any person so appointed shall signifyacceptance  by  filing  written  acceptance  with  the  Company.  Upon  the  resignation  or  removal  of  any  individual  performing  the  duties  of  theAdministrator, the Company may designate a successor.

2.3 ALLOCATION AND DELEGATION OF RESPONSIBILITIES . If more than one person is serving as Administrator, the responsibilities ofeach Administrator may be specified by the Company and accepted in writing by each Administrator. In the event that no such delegation is madeby  the  Company,  the  Administrators  may  allocate  the  responsibilities  among  themselves,  in  which  event  the  Administrators  shall  notify  theCompany and the Trustee in writing of such action and specify the responsibilities of each Administrator. The Trustee thereafter shall accept andrely upon any documents executed by the appropriate Administrator until such time as the Company or the Administrators file with the Trustee awritten revocation of such designation.

2.4 POWERS AND DUTIES OF THE ADMINISTRATOR .  The  primary  responsibility  of  the  Administrator  is  to  administer  the  Plan  for  theexclusive benefit of the Participants and their Beneficiaries, subject to the specific terms of the Plan. The Administrator shall administer the Planin accordance with its terms and shall have the power and discretion to construe the terms of the Plan and to determine all questions arising inconnection  with  the  administration,  interpretation,  and  application  of  the  Plan.  Benefits  under  this  Plan  will  be  paid  only  if  the  Administratordecides in its discretion that the applicant is entitled to them. Any such determination by the Administrator shall be conclusive and binding uponall  persons.  The  Administrator  may  establish  procedures,  correct  any  defect,  supply  any  information,  or  reconcile  any  inconsistency  in  suchmanner and to such extent as shall be deemed necessary or advisable to carry out the purpose of the Plan; provided, however, that any procedure,discretionary act, interpretation or construction shall be done in a nondiscriminatory manner based upon uniform principles consistently appliedand shall be consistent with the intent that the Plan shall continue to be deemed a qualified plan under the terms of Code Section 401(a), and shallcomply with the terms of the Act and all regulations issued pursuant thereto. The Administrator shall have all powers necessary or appropriate toaccomplish the Administrator’s duties under the Plan.

The Administrator shall be charged with the duties of the general administration of the Plan as set forth under the terms of the Plan, including, butnot limited to, the following:

(a) the discretion to determine all  questions relating to the eligibility of Employees to participate or remain a Participant hereunder and toreceive benefits under the Plan;

(b) the authority to review and settle all claims against the Plan, including claims where the settlement amount cannot be calculated or is notcalculated in accordance with the Plan’s benefit formula. This authority specifically permits the Administrator to settle disputed claims forbenefits and any other disputed claims made against the Plan;

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(c) to compute, certify, and direct the Trustee with respect to the amount and the kind of benefits to which any Participant shall be entitledhereunder;

(d) to authorize and direct the Trustee with respect to all discretionary or otherwise directed disbursements from the Trust;

(e) to maintain all necessary records for the administration of the Plan;

(f) to interpret the provisions of the Plan and to make and publish such rules for regulation of the Plan as are consistent with the terms hereof;

(g) to determine the size and type of any Contract to be purchased from any insurer, and to designate the insurer from which such Contractshall be purchased;

(h) to compute and certify to the Company and to the Trustee from time to time the sums of money necessary or desirable to be contributed tothe Plan;

(i) to consult with the Company and the Trustee regarding the short and long-term liquidity needs of the Plan in order that the Trustee canexercise any investment discretion (if the Trustee has such discretion) in a manner designed to accomplish specific objectives;

(j) to  prepare  and  implement  a  procedure  for  notifying  Participants  and  Beneficiaries  of  their  rights,  if  any,  to  elect  joint  and  survivorannuities and Pre-Retirement Survivor Annuities as required by the Code and Regulations thereunder;

(k) to prepare and implement a procedure to notify Eligible Employees that they may elect to have a portion of their Compensation deferredor paid to them in cash;

(l) to determine the validity of, and take appropriate action with respect to, any qualified domestic relations order received by it; and

(m) to assist any Participant regarding the Participant’s rights, benefits, or elections available under the Plan.

2.5 RECORDS AND REPORTS. The  Administrator  shall  keep  a  record  of  all  actions  taken  and  shall  keep  all  other  books  of  account,  records,policies,  and other data that may be necessary for proper administration of the Plan and shall  be responsible for supplying all  information andreports to the Internal Revenue Service, Department of Labor, Participants, Beneficiaries and others as required by law.

2.6 APPOINTMENT OF ADVISERS. The Administrator, or the Trustee with the consent of the Administrator, may appoint counsel, specialists,advisers, agents (including nonfiduciary agents) and other persons as the Administrator or the Trustee deems necessary or desirable in connectionwith the administration of this Plan, including but not limited to agents and advisers to assist with the administration and management of the Plan,and thereby to provide, among such other duties as the Administrator may appoint,

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assistance with maintaining Plan records and the providing of investment information to the Plan’s investment fiduciaries and to Plan Participants.

2.7 PAYMENT OF EXPENSES. All reasonable expenses of administration may be paid out of the Plan assets unless paid by the Company. Suchexpenses  shall  include  any  expenses  incident  to  the  functioning  of  the  Administrator,  or  any  person  or  persons  retained  or  appointed  by  anynamed Fiduciary incident  to  the  exercise  of  their  duties  under  the Plan,  including,  but  not  limited to,  fees  of  accountants,  counsel,  InvestmentManagers,  agents  (including  nonfiduciary  agents)  appointed  for  the  purpose  of  assisting  the  Administrator  or  the  Trustee  in  carrying  out  theinstructions of Participants as to the directed investment of their accounts (if  permitted) and other specialists and their agents,  the costs of anybonds required pursuant to Act Section 412, and other costs of administering the Plan. Until paid, the expenses shall constitute a liability of theTrust Fund. In addition, unless specifically prohibited under statute, regulation or other guidance of general applicability, the Administrator maycharge to the Account of an individual Participant a reasonable charge to offset the cost of making a distribution to the Participant, Beneficiary, oralternate payee under a qualified domestic relation order, as defined in Code Section 414(p). If liquid assets of the Plan are insufficient to coverthe fees of the Trustee or the Plan Administrator, then Plan assets shall be liquidated to the extent necessary for such fees. In the event any part ofthe Plan assets becomes subject to tax, all taxes incurred will be paid from the Plan assets. Until paid, the expenses shall constitute a liability ofthe Trust Fund.

2.8 CLAIMS PROCEDURE. Claims for benefits under the Plan may be filed in writing with the Administrator. Written notice of the disposition ofa  claim  shall  be  furnished  to  the  claimant  within  ninety  (90)  days  (forty-five  (45)  days  if  the  claim  involves  disability  benefits)  after  theapplication is filed, or such period as is required by applicable law or Department of Labor regulation. In the event the claim is denied, the reasonsfor the denial shall be specifically set forth in the notice in language calculated to be understood by the claimant, pertinent provisions of the Planshall be cited, and, where appropriate, an explanation as to how the claimant can perfect the claim will be provided. In addition, the claimant shallbe furnished with an explanation of the Plan’s claims review procedure.

2.9 CLAIMS REVIEW PROCEDURE. Any Employee, Former Employee, or Beneficiary of either, who has been denied a benefit by a decision ofthe Administrator pursuant to Section 2.8 shall be entitled to request the Administrator to give further consideration to a claim by filing with theAdministrator a written request for a hearing. Such request, together with a written statement of the reasons why the claimant believes the claimshould be allowed, shall be filed with the Administrator no later than sixty (60) days (forty-five (45) days if the claim involves disability benefits)after receipt of the written notification provided for in Section 2.8. The Administrator shall then conduct a hearing within the next 60 days (forty-five (45) days if the claim involves disability benefits), at which the claimant may be represented by an attorney or any other representative ofsuch claimant’s choosing and expense and at which the claimant shall have an opportunity to submit written and oral evidence and arguments insupport  of  the  claim.  At  the  hearing  the  claimant  or  the  claimant’s  representative  shall  have  an  opportunity  to  review  all  documents  in  thepossession of the Administrator which are pertinent to the claim at issue

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and its disallowance. A final decision as to the allowance of the claim shall be made by the Administrator within sixty (60) days (forty-five (45)days if the claim involves disability benefits) of receipt of the appeal (unless there has been an extension of sixty (60) days (forty-five (45) days ifthe  claim  involves  disability  benefits)  due  to  special  circumstances,  provided  the  delay  and  the  special  circumstances  occasioning  it  arecommunicated  to  the  claimant  within  the  sixty  (60)-day  period  (forty-five  (45)  days  if  the  claim  involves  disability  benefits)).  Suchcommunication shall be written in a manner calculated to be understood by the claimant and shall include specific reasons for the decision andspecific references to the pertinent Plan provisions on which the decision is based. Notwithstanding the preceding, to the extent any of the timeperiods specified in this Section are amended by law or Department of Labor regulation, then the time frames specified herein shall automaticallybe changed in accordance -with such law or regulation.

If the Administrator, pursuant to the claims review procedure, makes a final written determination denying a Participant’s or Beneficiary’s benefitclaim, then in order to preserve the claim, the Participant or Beneficiary must file an action with respect to the denied claim not later than onehundred eighty (180) days following the date of the Administrator’s final determination, or the Participant’s or Beneficiary’s right to bring such alegal or equitable action will be waived. Further, a Participant or Beneficiary must exhaust all administrative remedies set forth in Sections 2.8and 2.9 before the Participant or Beneficiary may bring any such legal or equitable action.

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ARTICLE IIIELIGIBILITY

3.1 CONDITIONS OF ELIGIBILITY .

(a) Eligibility. For all Plan purposes, any Eligible Employee who has completed a 3-month Period of Service shall be eligible to participatehereunder as of the date such Employee has satisfied such requirements. However, any Employee who was a Participant in the Plan priorto the Effective Date shall continue to Participate in the Plan. Notwithstanding the foregoing, an Eligible Employee who (i) was eligible toparticipate  in  the  C&C  Technologies,  Inc.  401(k)  Profit  Sharing  Plan  immediately  prior  to  January  1,  2016  and  (ii)  was  an  EligibleEmployee as of January 1, 2016 is eligible to commence participation in the Plan as of January 1, 2016, regardless of whether a 3-monthPeriod of Service has been completed as of such date.

3.2 EFFECTIVE DATE OF PARTICIPATION .

(a) Effective date of participation. An Eligible Employee shall become a Participant effective as of the date on which such Employee satisfiesthe eligibility requirements of Section 3.1.

(b) Recognition of other employer service. If an Eligible Employee satisfies the eligibility requirement conditions of a specific component ofthe  Plan  by  reason  of  recognition  of  service  with  an  entity  that  is  not  an  Affiliated  Employer,  then  such  Employee  shall  become  aParticipant in such component of the Plan as of the day that the Plan credits such service with the entity or, if later, the date the Employeewould have otherwise entered such component of the Plan had the service with the entity been recognized for purposes of this Plan.

(c) Ineligible  to  eligible  classification.  If  an  Employee,  who  has  satisfied  the  Plan’s  eligibility  requirements  and  would  otherwise  havebecome a Participant in the Plan, shall go from a classification of an ineligible Employee to an Eligible Employee, such Employee shallbecome a Participant in the Plan on the date such Employee becomes an Eligible Employee or, if later, the date that the Employee wouldhave otherwise entered the Plan had the Employee always been an Eligible Employee.

(d) Eligible to ineligible classification. If an Employee, who has satisfied the Plan’s eligibility requirements and would otherwise become aParticipant in the Plan, shall go from a classification of an Eligible Employee to an ineligible class of Employees, such Employee shallbecome a Participant in the Plan on the date such Employee again becomes an Eligible Employee, or, if later, the date that the Employeewould have otherwise entered the Plan had the Employee always been an Eligible Employee.

(e) Termination prior to attaining eligibility. If an Employee terminates employment prior to becoming eligible under Section 3.1 and is notreemployed before a 1-

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Year Break in Service, then that Employee’s prior service shall be disregarded for purposes of determining eligibility and vesting.

3.3 DETERMINATION OF ELIGIBILITY. The Administrator shall determine the eligibility of each Employee for participation in the Plan basedupon information furnished by the Employer. Such determination shall be conclusive and binding upon all persons, as long as the same is madepursuant to the Plan and the Act. Such determination shall be subject to review pursuant to Section 2.9.

3.4 TERMINATION OF ELIGIBILITY. In the event a Participant shall go from a classification of an Eligible Employee to an ineligible Employeewith  respect  to  the  Plan,  then  such  Participant  shall  continue  to  Vest  in  the  Plan  for  each  Period  of  Service  completed  while  an  ineligibleEmployee, until such time as the Participant’s Account is forfeited or distributed pursuant to the terms of the Plan. Additionally, the Participant’sinterest in the Plan shall continue to share in the earnings of the Trust Fund.

3.5 REHIRED EMPLOYEES AND BREAKS IN SERVICE. A Former Employee shall participate in the Plan as of the date of reemployment, orif later, as of the date that the Former Employee would otherwise enter the Plan pursuant to Sections 3.1 and 3.2 taking into account all servicenot disregarded in this subsection.

3.6 OMISSION OF ELIGIBLE EMPLOYEE; INCLUSION OF INELIGIBLE EMPLOYEE. If, in any Plan Year, any Employee who shouldbe  included  as  a  Participant  in  the  Plan  is  erroneously  omitted  and  discovery  of  such  omission  is  not  made  until  after  a  contribution  by  theEmployer for the year has been made and allocated, or any person who should not have been included as a Participant in the Plan is erroneouslyincluded,  then  the  Company  shall  apply  the  principles  described  by,  and  take  corrective  actions  consistent  with,  the  IRS  Employee  PlansCompliance Resolution System.

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ARTICLE IVCONTRIBUTION AND ALLOCATION

4.1 FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION. For each Plan Year, the Employer shall contribute to the Plan:

(a) Salary reductions . The amount that all Participants’ Compensation was reduced pursuant to (i) Section 4.2(a), which amount shall beElective Deferrals and/or (ii) Section 4.2(c), which amount shall be Roth Contributions.

(b) Matching Contributions . Each Plan Year, the Employer may, in its discretion, make a Matching Contribution in such amount, if any, asit  may  determine  for  the  Plan  Year.  If  the  Employer  chooses  to  make  a  Matching  Contribution  for  the  period,  the  Employer  shalldetermine  the  amount  that  shall  be  contributed  on  behalf  of  each  Participant  entitled  to  share  in  this  allocation  and  such  MatchingContribution amounts shall be allocated to the Matching Contribution Account of each such Participant. Participants who make ElectiveDeferrals  and/or  Roth  Contributions  at  any  time  during  the  applicable  payroll  period  shall  be  eligible  to  share  in  the  allocation  of  theMatching Contributions.  The Employer,  at  its  own discretion,  may declare a Matching Contribution to be allocated to each Participantentitled to share in the allocation of such Matching Contribution. This declaration may be stated in terms of a matching formula, whichwill provide a method for determining the amount to allocate to each Participant’s Matching Contribution Account.

(c) Qualified Nonelective Contribution . On behalf of each Participant who is eligible to share in the Qualified Nonelective Contributionfor  the  Plan  Year,  the  Employer  may  make  a  discretionary  Qualified  Nonelective  Contribution  equal  to  a  uniform percentage  of  eacheligible individual’s Compensation. Such Qualified Nonelective Contribution shall be allocated to the Qualified Nonelective ContributionAccount.

(d) Qualified Automatic Contribution Arrangement .

(1) QACA Implementation .  Effective for Plan Years beginning on or after January 1, 2008, the Employer maintains a Plan withautomatic  enrollment  provisions  as  a  Qualified  Automatic  Contribution  Arrangement  (“QACA”).  Accordingly,  the  Plan  willsatisfy  the  automatic  enrollment  provisions  of  this  Section  regarding:  (1)  the  Participants  subject  to  the  QACA,  as  describedbelow; (2) the Automatic Deferral amount requirements described herein; and (3) the uniformity requirements as described below.Except as modified herein, the Plan’s safe harbor 401(k) plan provisions apply to this QACA. The Employer will provide SafeHarbor Contribution in the sum of one hundred percent (100%) of a Participant’s Elective Deferrals that do not exceed six percent(6%) of the Participant’s Compensation, based on Elective Deferrals

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and Compensation during the entire Plan Year, to the Participants eligible to make Elective Deferrals.

(2) Participants subject to the QACA .  The  QACA will  apply  the  Automatic  Deferral  Percentage  to  all  Participants  as  electedherein.  If  a  Participant’s  Affirmative  Election  expires  or  otherwise  ceases  to  be  in  effect,  the  Participant  will  immediatelythereafter be subject to Automatic Deferrals.

(3) QACA Automatic Deferral amount .

(A) Automatic Deferral limits . Except as provided herein (relating to uniformity requirements), the Plan must apply to allParticipants  subject  to  the  QACA as  described  herein,  a  uniform  Automatic  Deferral  amount,  as  a  percentage  of  eachParticipant’s  Compensation,  which  does  not  exceed  ten  percent  (10%),  and  which  is  at  least  the  following  minimumamount:

(i) Initial  period:  three  percent  (3%)  for  the  period  that  begins  when  the  Participant  first  has  contributions  madepursuant to a default election under the QACA and ends on the last day of the following Plan Year;

(ii) Third Plan Year: four percent (4%) for the third Plan Year of the Participant’s participation in the QACA;

(iii) Fourth Plan Year: five percent (5%) for the fourth Plan Year of the Participant’s participation in the QACA; and

(iv) Fifth and later Plan Years: six percent (6%) for the fifth Plan Year of the Participant’s participation in the QACAand for each subsequent Plan Year.

For purposes of the above, the Plan will treat an Employee who for an entire Plan Year did not have contributions madepursuant to a default election under the QACA as not having made such contributions for any prior Plan Year.

(B) Uniformity . The Plan satisfies the uniformity requirement if the Plan provides an Automatic Deferral Percentage that is auniform  percentage  of  Compensation.  However,  the  Plan  does  not  violate  the  uniform  Automatic  Deferral  Percentagemerely because:

(i) Years of participation .  The  Automatic  Deferral  Percentage  varies  based  on  the  number  of  plan  years  theParticipant has participated in the Plan while the Plan has applied QACA provisions; or

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(ii) No reduction from prior default percentage . The Plan does not reduce an Automatic Deferral Percentage that,immediately prior to the QACA’s effective date provisions was higher (for any Participant) than the AutomaticDeferral Percentage.

(iii) Applying statutory limits . The Plan limits the Automatic Deferral amount so as not to exceed the limits of CodeSections 401(a)(17) and 402(g) (determined without regard to Age 50 Catch-Up Deferrals), or 415; or

(iv) No deferrals during hardship suspension . The Plan does not apply the Automatic Deferral during the period ofsuspension, under the Plan’s hardship distribution provisions, of Participant’s right to make Elective Deferrals tothe Plan following a hardship distribution.

(v) Disaggregated groups .  The Plan applies different  default  percentages to different  groups if  the groups can bedisaggregated  under  Regulation  Section  1.404(k)-l(b)(4)  (e.g.,  collectively  bargained  employees  or  differentemployers in a multiple employer plan).

(4) Safe harbor notice .  The Plan’s safe harbor notice provisions apply, except the Employer must provide the initial  QACA safeharbor  notice  sufficiently  early  so  that  an  Employee  has  a  reasonable  period  after  receiving  the  notice  and  before  the  firstAutomatic Deferral to make an Affirmative Election. In addition, the notice will state: (i) the Automatic Deferral amount that willapply in absence of  the Employee’s  affirmative election;  (ii)  the Employee’s  right  to  elect  not  to  have any Automatic  Deferralamount  made  on  the  Employee’s  behalf  or  to  elect  to  make  Elective  Deferrals  in  a  different  amount  or  percentage  ofCompensation; and (iii)  how the Plan will  invest the Automatic Deferrals.  However,  if  it  is  not practicable for the notice to beprovided on or before the date an Employee becomes a Participant, then the notice nonetheless will be treated as provided timelyif  it  is  provided  as  soon  as  practicable  after  that  date  and  the  Employee  is  permitted  to  elect  to  defer  from  all  types  ofCompensation that may be deferred under the Plan earned beginning on that date.

(5) Distributions .  A Participant’s  Account  Balance attributable to QACA Safe Harbor Contributions is  subject  to  the distributionrestrictions described in the Plan that apply to any safe harbor contributions. If the Plan does not have distribution provisions forsafe  harbor  contributions,  then  the  distribution  provisions  applicable  to  Elective  Deferrals  will  apply.  However,  QACA  SafeHarbor Contributions are not distributable on account of a Participant’s hardship.

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(6) Vesting .  A  Participant’s  Account  Balance  attributable  to  QACA  Safe  Harbor  Contributions  is  one  hundred  percent  (100%)vested  after  two  (2)  years.  Participants  will  become  fully  vested  upon  their  Death  or  Disability  as  defined  herein.  If  the  Planalready defines Year of Service for purposes of vesting, then that definition applies to this QACA vesting schedule.

(7) Compensation . Compensation for purposes of determining the QACA Automatic Deferral Percentage has the same meaning asCompensation with regard to Elective Deferrals in general, and Compensation for purposes of allocating the QACA Safe HarborContributions means Compensation as defined under the Plan for purposes of safe harbor contributions.

(8) Definitions .

(A) Definition of Automatic Deferral . An Automatic Deferral is an Elective Deferral that results from the operation of thisSection.  Under  the  Automatic  Deferral,  the  Employer  automatically  will  reduce  by  the  Automatic  Deferral  Percentageelected in this Section the Compensation of each Participant subject to the QACA, as specified in this Section. The PlanAdministrator will cease to apply the Automatic Deferral to a Participant who makes an Affirmative Election as definedherein.

(B) Definition of Automatic Deferral Percentage/Increases .  The  Automatic  Deferral  Percentage  is  the  percentage  ofAutomatic  Deferral  which  the  Employer  elects  herein  (including  any  scheduled  increase  to  the  Automatic  DeferralPercentage the Employer may elect).

(C) Effective date of QACA Automatic Deferral . The effective date of an Employee’s Automatic Deferral will be as soonas practicable after the Employee is subject to Automatic Deferrals under the QACA, consistent with (a) applicable law,and  (b)  the  objective  of  affording  the  Employee  a  reasonable  period  of  time  after  receipt  of  the  notice  to  make  anAffirmative  Election  (and,  if  applicable,  an  investment  election).  However,  in  no  event  will  the  Automatic  Deferral  beeffective later than the earlier of (a) the pay date for the second payroll period that begins after the date the QACA safeharbor notice (described herein) is provided to the Employee, or (b) the first pay date that occurs at least 30 days after theQACA safe harbor notice is provided to the Employee.

(D) Definition of Affirmative Election . An Affirmative Election is a Participant’s election made after the QACA’s effectivedate not to defer any Compensation or to defer more or less than the Automatic Deferral Percentage.

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(E) Effective Date of Affirmative Election . A Participant’s Affirmative Election generally is effective as of the first payrollperiod which follows the payroll period in which the Participant made the Affirmative Election. However, a Participantmay  make  an  Affirmative  Election  which  is  effective:  (a)  for  the  first  payroll  period  in  which  he/she  becomes  aParticipant if the Participant makes an Affirmative Election within a reasonable period following the Participant’s EntryDate and before the Compensation to which the Election applies becomes currently available; or (b) for the first payrollperiod following the QACA’s effective date, if the Participant makes an Affirmative Election not later than the QACA’seffective date.

(9) Accounts .  Employer  contributions  made  in  accordance  with  this  Section  4.1(d)  shall  be  treated  as  Safe  Harbor  Contributionsunder the Plan, but shall be accounted for separately to the extent necessary.

(10) Forfeitures .  If the only Employer contributions under the Plan that are subject to a vesting schedule are the Employer QACASafe  Harbor  Contributions  subject  to  the  vesting  schedule  elected  above,  then  any  resulting  forfeitures  may  be  used  to  payadministrative expenses, and any remaining forfeitures shall be used to reduce the Employer QACA Safe Harbor Contributionselected, or if no such contributions are made for the Plan Year, any other Employer contribution made for the Plan Year. If not, allForfeitures can be used in this manner, then any remaining Forfeitures shall be allocated as a Qualified Nonelective Contributionin  the  proportion  that  the  Compensation  of  each  Participant  eligible  to  make  an  Elective  Deferral  contribution  bears  to  theaggregate Compensation of all such Participants.

(e) Eligible Automatic Contribution Arrangement (“EACA”) .  This  Plan  is  intended to  comply  with  the  requirements  of  an  EACA asestablished by Regulations and accordingly will satisfy the uniformity requirements and the notice requirements.

(1) Uniformity requirements shall be consistent with Section 4.1 (d)(3)(B).

(2) The EACA notice requirement shall be met by compliance with all requirement for such type notice found in the Regulation, butthe notice shall be coordinated with the QACA Safe Harbor notice of 4.1(d)(4).

(3) EACA Permissible Withdrawal .  A Participant  who has  Automatic  Deferrals  under  the  EACA may elect  to  withdraw all  theAutomatic Deferrals (and allocable earnings) under the provisions of this Section 4.1(e)(3). Any distribution made pursuant to thisSection will be processed in accordance with normal distribution provisions of the Plan.

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(A) Amount . If a Participant elects a permissible withdrawal under this Section, then the Plan must make a distribution equalto the amount (and only the amount) of the Automatic Deferrals made under the EACA (adjusted for allocable gains andlosses to the date of the distribution). The Plan may separately account for Automatic Deferrals, in which case the entireaccount  will  be  distributed.  If  the  Plan  does  not  separately  account  for  the  Automatic  Deferrals,  then  the  Plan  mustdetermine  earnings  or  losses  in  a  manner  similar  to  the  refund  of  excess  contributions  for  a  failed  actual  deferralpercentage test.

(B) Fees .  Notwithstanding  the  above,  the  Plan  Administrator  may  reduce  the  permissible  distribution  amount  by  anygenerally applicable fees. However, the Plan may not charge a greater fee for distribution under this Section than appliesto other distributions. The Administrator may adopt a policy regarding charging such fees consistent with this paragraph.

(C) Timing .  The Participant may make an election to withdraw the Automatic Deferrals under the EACA no later than 90days  after  the  date  of  the  first  Automatic  Deferral  under  the  EACA.  For  this  purpose,  the  date  of  the  first  AutomaticDeferral is the date that the Compensation subject to the Automatic Deferral otherwise would have been includible in theparticipant’s  gross  income.  For  this  purpose,  EACAs  under  the  Plan  are  aggregated,  except  that  the  mandatorydisaggregation rules of the Code Section 410(b) apply. Furthermore, a participant’s withdrawal right is not restricted dueto the Participant making an Affirmative Election during the 90-day period.

(D) Rehired Employees .  For purposes of Section 4.1(e)(3) above, an Employee who for an entire Plan Year did not havecontributions made pursuant to a default election under the EACA will be treated as having not had such contributions forany prior Plan Year as well.

(E) Effective date of the actual withdrawal election . The effective date of the permissible withdrawal -will be as soon aspracticable,  but  in  no  event  later  than  the  earlier  of  (1)  the  pay  date  of  the  second  payroll  period  beginning  after  theelection is made, or (2) the first pay date that occurs at least 30 days after the election is made. The election -will also bedeemed to be an Affirmative Election to have no Elective Deferrals made to the Plan.

(F) Related matching contributions . The Plan Administrator will not take any deferrals withdrawn pursuant to this sectioninto account in computing the contribution and allocation of matching

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contributions.  If  the Employer has already allocated matching contributions to the Participant’s  account  with respect  todeferrals being withdrawn pursuant to this Section, then the matching contributions, as adjusted for gains and losses, mustbe forfeited. Except as otherwise provided, the Plan will use the forfeited contributions to reduce future contributions or toreduce plan expenses.

(G) Treatment of withdrawals . With regard to deferrals withdrawn pursuant to this Section: (1) the Plan Administrator willdisregard such deferrals in the Actual Deferral Percentage Test (if applicable); (2) the Plan Administrator will disregardsuch deferrals for purposes of the limitation on deferrals under Code Section 402(g); (3) such deferrals are not subject tothe  consent  requirements  of  Code  Section  401(a)(11)  or  417.  The  Plan  Administrator  will  disregard  any  matchingcontributions forfeited under paragraph (F) in the Actual Contribution Percentage Test (if applicable).

(4) Compensation .  Compensation  for  purposes  of  determining  the  amount  of  Automatic  Deferrals  has  the  same  meaning  asCompensation with regard to Elective Deferrals in general.

(5) Excise tax on Excess Contributions and Excess Aggregate contributions .  Any Excess Contributions and Excess Aggregatecontributions which are distributed more than six (6) months (rather than two and one-half (2½) months) after the end of the PlanYear will be subject to the ten percent (10%) Employer excise tax imposed by Code Section 4979. However, effective for PlanYears beginning on or after January 1, 2010, the preceding sentence will apply only where all highly compensated employees andnonhighly  compensated  employees  (both  as  defined  in  Regulation  Section  1.401(k)-2(a)(6))  are  covered  Employees  under  theEACA for the entire Plan Year (or for the portion of the Plan Year that such Employees are eligible Employees under the Planwithin the meaning of Code Section 410(b)).

(6) Definitions . Definitions under this Section 4.1(e) shall be the same as provided for in 4.1(d)(8).

(f) Top-Heavy contribution .  Additionally,  to  the  extent  necessary,  the  Employer  shall  contribute  to  the  Plan  the  amount  necessary  toprovide the top-heavy minimum contribution, even if it exceeds the amount that would be deductible under Code Section 404.

(g) Form of contribution . All contributions by the Employer shall be made in cash or in such property as is acceptable to the Trustee.

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4.2 PARTICIPANT’S SALARY REDUCTION ELECTION .

(a) Deferral elections .  Effective January 1,  2008,  each Participant  may elect  to  defer  from zero percent  (0%) to  eighty percent  (80%) ofCompensation which would have been received in the Plan Year, but for the deferral election. A deferral election (or modification of anearlier election) may not be made with respect to Compensation which is currently available on or before the date the Participant executedsuch election. For purposes of this Section, Compensation shall be determined prior to any reductions made pursuant to Code Sections125, 132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b) or 457(b), and employee contributions described in Code Section 414(h)(2) that are treatedas Employer contributions.

For purposes of this Section, the annual dollar limitation of Code Section 401(a)(17) ($200,000 as adjusted) shall not apply except that theAdministrator may elect to apply such limit as part of the deferral election procedures established hereunder.

Automatic deferral election procedures. Effective January 1, 2008, in the event a Participant does not have a salary deferral election ineffect fails to make a new affirmative deferral election, such Participant shall be deemed to have made a pre-tax deferral election equal tothree percent (3%) of Compensation per payroll period.

The amount that is deferred by a Participant shall be subject to the limitations of this Section, shall be an Elective Deferral, and shall beheld for such Participant in the Elective Deferral Account.

(b) Catch-Up Contributions .  Notwithstanding  anything  in  the  Plan  to  the  contrary,  effective  January  1,  2008,  each  Catch-Up  EligibleParticipant shall be eligible to make Catch-Up Contributions during the Participant’s taxable year in accordance with, and subject to thelimitations of, Code Section 414(v). Such Catch-Up Contributions are not subject to the limits on Annual Additions under Code Section415(c),  are  not  taken into account  under  the limit  on Elective Deferrals  under  Code Section 402(g).  Catch-Up Contributions may be adollar  amount  or  a  percentage  of  Compensation  for  each  payroll  period  not  to  exceed  the  applicable  dollar  limit  under  Code  Section414(v), pursuant to procedures established by the Administrator. The Plan shall not be treated as failing to satisfy the provisions of thePlan implementing the requirements  of  Code Sections 401(k)(3),  401(k)(12) or  410(b),  as  applicable,  by reason of  the making of  suchCatch-Up Contributions.

(c) Qualified Roth Contributions. Effective  January  1,  2016,  a  Participant  may  elect  to  irrevocably  designate  all  or  a  portion  of  hisCompensation that he would otherwise be eligible to defer as deferral elections as Roth Contributions as provided in this Section 4.2(c).This Section 4.2(c) is intended to meet the requirements of a “Qualified Roth Contribution Program” under Code Section 402A and theapplicable Regulations and guidance issued by the Internal Revenue Service. A Participant’s Roth Contributions shall be in lieu of (andnot in addition

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to)  all  or  a  portion  of  his  Elective  Deferrals  contributed  to  the  Plan  for  a  payroll  period  and  shall  be  elected  in  the  form and  mannerprescribed by the Administrator.

Except  as  expressly  provided  in  the  Plan,  notwithstanding  any  other  provisions  to  the  contrary,  for  purposes  of  the  Plan,  RothContributions shall  be considered,  treated and subject  to the same requirements as Elective Deferrals,  including, but not limited to,  therequirements in this Section 4.2, except that:

(1) A Participant may elect that zero percent (0%) to eighty percent (80%) (in whole percentages) of his Compensation for a payrollperiod  be  treated  as  a  Roth  Contribution;  provided,  however,  that  such  amount  would  eligible  to  be  contributed  as  a  deferralelection  and  that  the  total  of  his  Elective  Deferrals  and  Roth  Contributions  shall  not  exceed  eighty  percent  (80%)  of  hisCompensation  for  any  payroll  period.  A  Participant  may  change  his  Roth  Contribution  percentage  or  cease  making  RothContributions in the same manner as he is permitted to make such changes for Elective Deferrals under the Plan.

(2) Qualified Nonelective Contributions made to the Plan under Section 4.1(c) shall be limited solely to Elective Deferrals.

(3) If the Administrator determines that a Participant’s Elective Deferrals under the Plan should be reduced, or may be increased, theAdministrator may permit the Participant to designate the application of such reduction or increase between the Participant’s RothContribution percentage and Elective Deferral percentage, if applicable.

(4) If  a  Participant  has  made  Roth  Contributions  and/or  Elective  Deferrals  during  a  Plan  Year  and  Excess  Contributions  aredistributable to the Participant under Section 4.5 for such Plan Year, such Excess Contribution amounts shall be distributed to theParticipant first from the Participant’s Roth Contribution Account and second from the Participant’s Elective Deferral Account.

(5) For purposes of Section 6.15, if an eligible rollover distribution includes Roth Contribution amounts, the term eligible retirementsavings plan means,  with respect to such Roth Contribution amounts,  a  qualified trust  described in Code Section 401(a) whichseparately accounts for such Roth Contributions or a Roth IRA as defined in Code Section 408A.

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(6) Roth Contributions shall be eligible for hardship and in-service withdrawals under Sections 6.11 and 6.12, respectively, and loansunder Section 7.4.

(7) A Participant’s Roth Contributions, and any earnings and losses thereon, shall be allocated to the Participant’s Roth ContributionAccount  and shall  be  held  in  such  account  until  such  time as  all  amounts  are  withdrawn or  distributed  in  accordance  with  theterms of the Plan.

(8) Provided the  requirements  of  Code Section  402A and the  applicable  Regulations  and guidance  issued by the  Internal  RevenueService  are  satisfied,  payment  or  distribution  of  amounts  from  a  Participant’s  Roth  Contribution  Account  shall  be  treated  as“Qualified Distributions” within the meaning of Code Section 402A(d)(2).

(9) If a Participant has made Roth Contributions and Elective Deferrals to the Plan during a Plan Year in which such Participant hasExcess  Deferrals,  such  Excess  Deferral  amounts  shall  be  distributed  to  the  Participant  first  from  the  Participant’s  RothContribution Account and second from the Participant’s Elective Deferral Account.

(d) Full vesting . Each Participant’s Elective Deferral Account shall be fully Vested at all times and shall not be subject to Forfeiture for anyreason.

(e) Distribution restrictions .  Notwithstanding  anything  in  the  Plan  to  the  contrary,  amounts  (including  any  offset  of  loans)  held  in  theParticipant’s Elective Deferral Account may not be distributed except as authorized by other provisions of this Plan, but in no event maysuch amounts be distributed earlier than:

(1) a Participant’s death, disability or other severance of employment;

(2) a Participant’s attainment of age 59½;

(3) the termination of the Plan without the existence at the time of Plan termination of an alternative defined contribution plan or theestablishment  of  an  alternative  defined  contribution  plan  by  the  Employer  or  an  Affiliated  Employer  within  the  period  endingtwelve  (12)  months  after  distribution  of  all  assets  from  the  Plan  maintained  by  the  Employer.  For  this  purpose,  a  definedcontribution plan is  not  treated as  an alternative  defined contribution plan if  the  plan is  an  employee stock ownership plan (asdefined  in  Code  Section  4975(e)(7)  or  409(a)),  a  simplified  employee  pension  plan  (as  defined  in  Code  Section  408(k)),  aSIMPLE IRA plan (as defined in Code Section 408(p)), a plan or contract that satisfies the requirements of Code Section 403(b),or a plan that is described in Code Sections 457(b) or 457(f). Furthermore, if at all times during the 24-month

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period beginning twelve (12) months before the date of the Plan’s termination, fewer than two percent (2%) of the Participants inthe  Plan  as  of  the  date  of  Plan  termination  are  eligible  under  the  other  defined  contribution  plan,  then  the  other  definedcontribution  plan  is  not  an  alternative  defined  contribution  plan.  Distributions  from the  terminating  Plan  may only  be  made inlump sum distributions, pursuant to and defined in Regulation Section 1.401(k)-l(d)(4)(ii); or

(4) the proven financial hardship of a Participant, subject to the limitations of Section 6.12.

(f) Suspension due to hardship prior to January 1, 2019 .  In  the  event  a  Participant  has  received  a  hardship  distribution  pursuant  toRegulation Section 1.401(k)-l(d)(3)(iv)(E)(2) prior to January 1, 2019 from this Plan or any other plan maintained by the Employer, thensuch Participant shall not be permitted to elect to have Elective Deferrals contributed to the Plan for a period that ends on the earlier of (i)six (6)-months following the date of distribution or (ii) January 1, 2019.

(g) Deferrals limited to Code Section 402(g) dollar limit .  A Participant’s “elective deferrals” made under this  Plan and all  other plans,contracts or arrangements of the Employer maintaining this Plan during any calendar year shall not exceed the dollar limitation. For thispurpose,  “elective  deferrals”  means,  with  respect  to  a  calendar  year,  the  sum  of  all  Employer  contributions  made  on  behalf  of  suchParticipant pursuant to an election to defer under any qualified cash or deferred arrangement as described in Code Section 401(k),  anysalary reduction simplified employee pension (as defined in Code Section 408(k)(6)), any SIMPLE IRA plan described in Code Section408(p),  any eligible deferred compensation plan under Code Section 457, any plans described under Code Section 501(c)(18),  and anyEmployer contributions made on the behalf of a Participant for the purchase of an annuity contract under Code Section 403(b) pursuant toa  salary  reduction  agreement.  “Elective  deferrals”  shall  not  include  any  deferrals  properly  distributed  as  excess  “Annual  Additions”pursuant  to  Section  4.5.  “Dollar  limitation”  shall  mean  the  dollar  limitation  contained  in  Code  Section  402(g)  in  effect  for  theParticipant’s taxable year beginning in such calendar year. In the case of a participant aged 50 and over by the end of the taxable year, the“dollar limitation” described in the preceding sentence shall be adjusted to include the amount of Elective Deferrals that may be treated asCatch-Up Contributions.  The “dollar  limitation” contained in  Code Section 402(g)  is  $10,500 for  taxable  years  beginning in  2000 and2001,  increasing  to  $11,000  for  taxable  years  beginning  in  2002  and  increasing  by  $1,000  for  each  year  thereafter  up  to  $15,000  fortaxable years beginning in 2006 and later years. After 2006 the $15,000 limit will be adjusted by the Secretary of the Treasury for cost of-living increases under Code Section 402(g)(4). Any such adjustments will be in multiples of $500.

(h) Assigning Excess Deferrals to this Plan .  If  a Participant’s Elective Deferrals under this Plan together with any elective deferrals (asdefined in Regulation

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Section 1.402(g)-1(b)) under another qualified cash or deferred arrangement (as described in Code Section 401(k)), a simplified employeepension (as described in Code Section 408(k)(6)), a simple individual retirement account plan (as described in Code Section 408(p)), asalary  reduction  arrangement  (within  the  meaning  of  Code  Section  3121(a)(5)(D)),  or  a  trust  described  in  Code  Section  501(c)(18)cumulatively exceed the “dollar limitation” described in the subsection 4.2(g) of this Section, for such Participant’s taxable year, then theParticipant may assign to this Plan any Excess Deferrals made during a taxable year of the Participant by notifying the Administrator inwriting on or before March 1 following the close of the Participant’s taxable year, of the amount of the Excess Deferrals to be assigned tothe Plan. A Participant shall be deemed to notify the Administrator of any Excess Deferrals that arise by taking into account only thoseElective Deferrals made to this Plan and any other plan, contract, or arrangement of the Employer.

Notwithstanding  any  other  provision  of  the  Plan  to  the  contrary,  the  Administrator  may  direct  the  Trustee  to  distribute  such  ExcessDeferrals, plus any Income allocable to such Excess Deferrals, to the Participant not later than the first April 15th following the close ofthe Participant’s taxable year. Such a distribution may be made to a Participant to whose account Excess Deferrals were assigned for thepreceding year or/and who claims Excess Deferrals for such taxable year or calendar year. Any distribution of less than the entire amountof Excess Deferrals and Income shall be treated as a pro rata distribution of Excess Deferrals and Income. The amount of the distributionshall  not  exceed  the  Participant’s  Elective  Deferrals  under  the  Plan  for  the  taxable  year  (and  any  Income  allocable  to  such  ExcessDeferrals). If a distribution of Excess Deferrals is to be made on or before the last day of the Participant’s taxable year, then each of thefollowing conditions must be satisfied:

(1) the distribution must be made after the date on which the Plan received the Excess Deferrals;

(2) the Participant shall designate the distribution as Excess Deferrals; and

(3) the Plan must designate the distribution as a distribution of Excess Deferrals.

Any  distribution  made  pursuant  to  this  Section  shall  be  made  first  from  unmatched  Elective  Deferrals  and,  thereafter,  from  ElectiveDeferrals which are matched.

Matching  Contributions  that  relate  to  Excess  Deferrals  which  are  distributed  pursuant  to  this  Section  4.2(h)  shall  be  treated  as  aForfeiture.

(i) Segregation .  Elective  Deferrals  made  pursuant  to  this  Section  may  be  segregated  into  a  separate  account  for  each  Participant  in  afederally insured savings account, certificate of deposit in a bank or savings and loan association, money market

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certificate, or other short-term debt security acceptable to the Trustee until such time as the allocations pursuant to Section 4.4 have beenmade.

(j) No conditions to receive Elective Deferrals . Notwithstanding anything herein to the contrary, Participants who terminated employmentfor any reason during the Plan Year shall share in the Elective Deferrals made by the Employer for the year of termination without regardto the Hours of Service credited.

(k) Procedures to implement Elective Deferrals and/or Roth Contributions. The Employer and the Administrator may adopt a procedureto  implement  the  salary  reduction  elections  for  Elective  Deferrals  and  Roth  Contributions  provided  for  herein.  If  such  procedure  isadopted, then the procedure shall include (and shall not be limited to) the following:

(1) A Participant must make an initial salary deferral election to make Elective Deferrals and/or Roth Contribution, or an election toreceive cash in lieu of such salary deferral election, unless the Employer has implemented an automatic deferral election feature.If  the  Participant  fails  to  make  an  initial  salary  deferral  election  to  make  Elective  Deferrals  and/or  Roth  Contribution,  or  anelection to receive cash in lieu of a salary deferral election, if the automatic deferral election applies, then such Participant maythereafter make an election in accordance with the rules governing modifications. The Participant shall make such an election byentering into  a  salary reduction agreement  with  the  Employer  and filing such agreement  with  the  Administrator.  Such electionshall  initially  be  effective  beginning  with  the  pay  period  following  the  acceptance  of  the  salary  reduction  agreement  by  theAdministrator (or as soon thereafter as practical), shall not have retroactive effect and shall remain in force until revoked.

(2) A Participant may modify a prior salary deferral election to make Elective Deferrals and/or Roth Contribution at any time duringthe  Plan  Year  and  concurrently  make  a  new election  by  filing  a  notice  with  the  Administrator  (in  accordance  with  proceduresestablished by the Administrator) within a reasonable time before the pay period for which such modification is to be effective.Any modification shall be implemented as soon as practical after being accepted by the Administrator, shall not have retroactiveeffect and shall remain in force until revoked.

(3) A Participant may elect  to prospectively revoke the Participant’s salary reduction election in its  entirety at  any time during thePlan  Year  by  providing  the  Administrator  with  thirty  (30)  days  written  notice  of  such  revocation  (or  upon  such  shorter  noticeperiod as  may be acceptable  to  the Administrator).  Such revocation shall  become effective as  of  the beginning of  the first  payperiod coincident with or next following the expiration of the notice period (or as soon thereafter as practical).

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(4) Any notices or required actions under Section 4.2(c) may be provided or made in accordance with Section 10.14.

4.3 TIME OF PAYMENT OF EMPLOYER CONTRIBUTION. Unless  otherwise  provided  by  contract  or  law,  the  Employer  may  make  itscontribution  to  the  Plan  for  a  particular  Plan  Year  at  such  time  as  the  Employer,  in  its  sole  discretion,  determines.  If  the  Employer  makes  acontribution for a particular Plan Year after the close of that Plan Year, then the Employer will designate to the Administrator the Plan Year forwhich the Employer is making its contribution.

4.4 ALLOCATION OF CONTRIBUTION AND USAGE OF FORFEITURES AND EARNINGS .

(a) Separate accounting .  The  Administrator  shall  establish  and  maintain  an  account  in  the  name  of  each  Participant  to  which  theAdministrator  shall  credit  as  of  each Anniversary Date,  or  other  Valuation Date,  all  amounts  allocated to a  particular  Account  of  eachsuch Participant as set forth herein.

(b) Allocation of contributions . The Employer shall provide the Administrator with all information required by the Administrator to make aproper allocation of the Employer contributions for each Plan Year.  Within a reasonable period of time after the date of receipt by theAdministrator of such information, the Administrator shall allocate such contribution as follows:

(1) Elective Deferrals .  With  respect  to  the  Elective  Deferrals  made  pursuant  to  Section  4.1(a),  to  each  Participant’s  ElectiveDeferral Account.

(2) Roth Contributions .  With  respect  to  the  Roth  Contributions  made  pursuant  to  Section  4.1(a),  to  each  Participant’s  RothContribution Account.

(3) Matching Contributions .  With  respect  to  the  Matching  Contribution  made  pursuant  to  Section  4.1(b),  to  each  Participant’sMatching Contribution Account in accordance with Section 4.1(b).

(4) Qualified Nonelective Contributions . With respect to the Qualified Nonelective Contribution made pursuant to Section 4.1(c),to each Participant’s Qualified Nonelective Contribution Account in accordance with Section 4.1(c).

The  Employer  may  limit  such  Qualified  Nonelective  Contributions  only  to  Participants  who  are  Nonhighly  CompensatedEmployees.  In  addition,  the  Employer  may  condition  such  Qualified  Nonelective  Contributions  only  to  Participants  who  havecompleted a Period of Service (or portion thereof) during the Plan Year and/or who are employed on the last day of the Plan Year.Notwithstanding anything in this subsection to the contrary, if this Plan becomes a Top-Heavy Plan, then any top-heavy minimumrequired allocation that is required pursuant to Section 4.4(g) and that is not

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satisfied with Matching Contributions shall be made to each Non-Key Employee’s Qualified Nonelective Contribution Account.

(5) Qualified Automatic Contribution Arrangement Contributions .  With respect to the QACA contributions made pursuant toSection 4.1(d), to each Participant’s QACA Account in accordance with Section 4.1(d).

(c) Usage of Forfeitures .  On  or  before  each  Anniversary  Date,  any  Forfeitures  may  be  made  available  to  reinstate  previously  forfeitedAccount balances of Participants, and any remaining Forfeitures may be used to satisfy any contribution that may be required pursuant toSection 3.6 or 6.10, or be used to pay any administrative expenses of the Plan. The remaining Forfeitures, if any, shall be allocated as adiscretionary contribution under 4.1 (b).

(d) Minimum required allocation to those not otherwise eligible to share .  For  any  Top-Heavy  Plan  Year,  Employees  not  otherwiseeligible to share in the allocation of contributions as provided above, shall receive the minimum required allocation of Section 4.4(g) ifeligible pursuant to the provisions of Section 4.4(i).

(e) Incoming transfers and rollovers . Participants’ transfers from other qualified plans and rollovers deposited in the general Trust Fundshall share in any earnings and losses (net appreciation or net depreciation) of the Trust Fund in the same manner provided above. Eachsegregated account maintained on behalf of a Participant shall be credited or charged with its separate earnings and losses.

(f) Delay in processing transactions . Notwithstanding anything in this Section to the contrary, all information necessary to properly reflecta given transaction may not be available until after the date specified herein for processing such transaction, in which case the transactionwill  be reflected when such information is  received and processed.  Subject  to  express limits  that  may be imposed under  the Code,  theprocessing  of  any  contribution,  distribution  or  other  transaction  may  be  delayed  for  any  legitimate  business  reason  or  force  majeure(including, but not limited to, failure of systems or computer programs, failure of the means of the transmission of data, the failure of aservice provider to timely receive values or prices,  and the correction for errors or omissions or the errors or omissions of any serviceprovider). The processing date of a transaction will be binding for all purposes of the Plan.

(g) Minimum required allocation for Top-Heavy Plan Years . Notwithstanding the foregoing, for any Top-Heavy Plan Year, the sum ofthe Employer contributions allocated to the Account of each Employee shall be equal to at least three percent (3%) of such Employee’s415 Compensation (reduced by contributions and forfeitures, if any, allocated to each Employee in any defined contribution plan includedwith  this  Plan  in  a  required  aggregation  group).  However,  if  (1)  the  sum  of  the  Employer  contributions  allocated  to  the  Participant’sAccount  of  each  Key  Employee  for  such  Top-Heavy  Plan  Year  is  less  than  three  percent  (3%)  of  each  Key  Employee’s  415Compensation and (2) this Plan is not required to be

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included in an aggregation group to enable a defined benefit plan to meet the requirements of Code Section 401(a)(4) or 410, then the sumof the Employer contributions allocated to the Participant’s Account of each Employee shall be equal to the largest percentage allocatedto  the  Account  of  any  Key  Employee.  However,  in  determining  whether  a  Non-Key  Employee  has  received  the  minimum  requiredallocation, such Non-Key Employee’s Elective Deferrals shall not be taken into account. The minimum allocation required (to the extentrequired to be nonforfeitable under Code Section 416(b)) may not be forfeited under Code Section 411(a)(3)(B) or 411(a)(3)(D).

However,  no  minimum  required  allocation  shall  be  required  in  this  Plan  for  any  Employee  who  participates  in  another  definedcontribution plan subject to Code Section 412 included with this Plan in a required aggregation group, if the other defined contributionplan subject to Code Section 412 satisfies the minimum required allocation.

(h) Top-Heavy contribution allocation . For purposes of the minimum required allocation set forth above, the percentage allocated to theAccount of any Key Employee who is a Participant shall be equal to the ratio of the sum of the Employer contributions (excluding anyCatch-Up Contributions) allocated on behalf  of  such Key Employee for the Plan Year divided by the 415 Compensation for such KeyEmployee for the Plan Year.

(i) Matching contributions used to satisfy top-heavy contribution . Matching Contributions (including ADP Test Safe Harbor MatchingContributions within the meaning of Section 4.1) shall be taken into account for purposes of satisfying the minimum required allocationof Code Section 416(c)(2) and the Plan. The preceding sentence shall apply with respect to Matching Contributions under the Plan or, ifthe Plan provides that the minimum required allocation shall be met in another plan, such other plan. Matching Contributions that are usedto  satisfy  the  minimum  required  allocation  shall  be  treated  as  Matching  Contributions  for  purposes  of  the  ACP  Test  and  otherrequirements of Code Section 401(m).

(j) Participants eligible for top-heavy allocation . For any Top-Heavy Plan Year, the minimum required allocation set forth above shall beallocated  to  the  Qualified  Nonelective  Contribution  Account  of  all  Employees  who  are  Participants  and  who  are  employed  by  theEmployer on the last day of the Plan Year regardless of the Employee’s level of Compensation, including Employees who have (1) failedto  complete  a  Period  of  Service;  and  (2)  declined  to  make  mandatory  contributions  (if  required)  or,  in  the  case  of  a  cash  or  deferredarrangement, Elective Deferrals to the Plan.

(k) 415 Compensation for top-heavy purposes .  For  the  purposes  of  this  Section,  415  Compensation  will  be  limited  to  the  same  dollarlimitations set forth in Section 1.13, adjusted in such manner as permitted under Code Section 415(d).

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4.5 MAXIMUM ANNUAL ADDITIONS .

(a) Maximum permissible amount .  Notwithstanding the foregoing, the maximum Annual Additions credited to a Participant’s Accountsfor any Limitation Year shall equal the lesser of:

(1) $40,000 adjusted annually as provided in Code Section 415(d) pursuant to the Regulations, or

(2) one hundred percent (100%) of the Participant’s 415 Compensation for such Limitation Year.

The percentage limitation in paragraph (2) above shall not apply to: (1) any contribution for medical benefits (within the meaning of CodeSection 419A(f)(2)) after separation from service which is otherwise treated as an annual addition, or (2) any amount otherwise treated asan annual addition under Code Section 415(l)(1).

For any short Limitation Year, the dollar limitation in paragraph (1) above shall be reduced by a fraction, the numerator of which is thenumber of full months in the short Limitation Year and the denominator of which is twelve (12).

(b) Reasonable estimate permissible . Prior to determining the Participant’s actual 415 Compensation for the Limitation Year, the Employermay  determine  the  maximum  permissible  amount  for  a  Participant  on  the  basis  of  a  reasonable  estimation  of  the  Participant’s  415Compensation for the Limitation Year, uniformly determined for all Participants similarly situated. As soon as is administratively feasibleafter  the end of  the Limitation Year,  the maximum permissible  amount  for  the Limitation Year  will  be determined on the basis  of  theParticipant’s actual 415 Compensation for the Limitation Year.

(c) Excess Annual Additions defined . For purposes of this Article, the term “Excess Annual Additions” for any Participant for a LimitationYear  means a  Participant’s  Annual  Additions  under  this  Plan and such other  plans  of  the Employer  or  Affiliated Employer  that  are  inexcess of the maximum permissible amount of Section 4.5 for a Limitation Year. The Excess Annual Additions will be deemed to consistof the Annual Additions last allocated, except that Annual Additions attributable to a simplified employee pension will be deemed to havebeen allocated first, followed by Annual Additions to a welfare benefit fund or individual medical account, and then by Annual Additionsto a plan subject to Code Section 412, regardless of the actual allocation date.

(d) Annual Additions can cease when maximum permissible amount reached .  If  the  Employer  contribution  that  would  otherwise  becontributed or allocated to the Participant’s Accounts would cause the Annual Additions for the Limitation Year to exceed the maximumpermissible amount, then the amount that would otherwise be contributed or allocated will be reduced so that the Annual Additions forthe Limitation Year will equal the maximum permissible amount, and any

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such amounts which would have been allocated to such Participant may be allocated to other Participants.

(e) Aggregation and Disaggregation of Plans .

(1) For purposes of applying the limitations of Code Section 415, all defined contribution plans (without regard to whether a plan hasbeen  terminated)  ever  maintained  by  the  Employer  (or  a  “predecessor  employer”)  under  which  the  participant  receives  annualadditions are treated as one defined contribution plan. The “Employer” means the Employer that adopts this Plan and all membersof a controlled group or an affiliated service group that includes the Employer (within the meaning of Code Sections 414(b), (c),(m) or (o)), except that for purposes of this Section, the determination shall be made by applying Code Section 415(h), and shalltake into account tax-exempt organizations under Regulation Section 1.414(c)-5, as modified by Regulation Section 1.415(a)-1(f)(1). For purposes of this Section:

(A) A former Employer is a “predecessor employer” with respect to a participant in a plan maintained by an Employer if theEmployer maintains a  plan under which the participant  had accrued a benefit  while  performing services for  the formerEmployer, but only if that benefit is provided under the plan maintained by the Employer. For this purpose, the formerlyaffiliated plan rules in Regulation Section 1.415(f)-1(b)(2) apply as if the Employer and predecessor Employer constituteda  single  employer  under  the  rules  described  in  Regulation  Section  1.415(a)-1(f)(1)  and  (2)  immediately  prior  to  thecessation  of  affiliation  (and  as  if  they  constituted  two,  unrelated  employers  under  the  rules  described  in  RegulationSection 1.415(a)-1(f)(1) and (2) immediately after the cessation of affiliation) and cessation of affiliation was the eventthat gives rise to the predecessor employer relationship, such as transfer of benefits or plan sponsorship.

(B) With  respect  to  an  Employer  of  a  participant,  a  former  entity  that  antedates  the  Employer  is  a  “predecessor  employer”with  respect  to  the participant  if,  under  the  facts  and circumstances,  the  employer  constitutes  a  continuation of  all  or  aportion of the trade or business of the former entity.

(2) Break-up of an affiliate employer or an affiliated service group . For purposes of aggregating plans for Code Section 415, a“formerly affiliated plan” of an employer is taken into account for purposes of applying the Code Section 415 limitations to theemployer, but the formerly affiliated plan is treated as if it had terminated immediately prior to the “cessation of affiliation.” Forpurposes  of  this  paragraph,  a  “formerly  affiliated  plan”  of  an  employer  is  a  plan  that,  immediately  prior  to  the  cessation  ofaffiliation,

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was actually maintained by one or more of the entities that constitute the employer (as determined under the employer affiliationrules described in Regulation Section l .415(a)-1(f)(1) and (2)), and immediately after the cessation of affiliation, is not actuallymaintained  by  any  of  the  entities  that  constitute  the  employer  (as  determined  under  the  employer  affiliation  rules  described  inRegulation  Section  1.415(a)-1(f)(1)  and  (2)).  For  purposes  of  this  paragraph,  a  “cessation  of  affiliation”  means  the  event  thatcauses an entity to no longer be aggregated with one or more other entities as a single employer under the employer affiliationrules described in Regulation Section 1.415(a)-1(f)(1) and (2) (such as the sale of a subsidiary outside a controlled group), or thatcauses a plan to not actually be maintained by any of the entities that constitute the employer under the employer affiliation rulesof Regulation Section 1.415(a)-1(f)(1) and (2) (such as a transfer of plan sponsorship outside of a controlled group).

(3) Midyear Aggregation . Two or more defined contribution plans that are not required to be aggregated pursuant to Code Section415(f) and the Regulations thereunder as of the first day of a limitation year do not fail to satisfy the requirements of Code Section415 with respect to a participant’s account after the date on which the plans are required to be aggregated.

(f) 413(c) Plan .  If  this  is  a  plan  described  in  Code  Section  413(c)  (other  than  a  plan  described  in  Code  Section  414(f)),  then  all  of  thebenefits  or  contributions  attributable  to  a  Participant  from  all  of  the  Employers  maintaining  this  Plan  shall  be  taken  into  account  inapplying the limits of this Section with respect to such Participant. Furthermore, in applying the limitations of this Section with respect tosuch a Participant, the total 415 Compensation received by the Participant from all of the Employers maintaining the Plan shall be takeninto account.

(g) (1)          DC Plans with same/different Anniversary Dates .  If  a  Participant  participates  in  more  than  one  defined  contribution  planmaintained by the Employer that have different Anniversary Dates, then the maximum permissible amount under this Plan shall equal themaximum permissible amount for  the Limitation Year minus any Annual  Additions previously credited to such Participant’s  Accountsduring the Limitation Year.

(2) If a Participant participates in both a defined contribution plan subject to Code Section 412 and a defined contribution plan notsubject to Code Section 412 maintained by the Employer which have the same Anniversary Date, then Annual Additions will becredited to the Participant’s Accounts under the defined contribution plan subject to Code Section 412 prior to crediting AnnualAdditions to the Participant’s Accounts under the defined contribution plan not subject to Code Section 412.

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(3) If  a  Participant  participates  in  more  than  one  defined  contribution  plan  not  subject  to  Code  Section  412  maintained  by  theEmployer which have the same Anniversary Date, then the maximum permissible amount under this Plan shall equal the productof  (A)  the  maximum  permissible  amount  for  the  Limitation  Year  minus  any  Annual  Additions  previously  credited  undersubparagraphs (1) or (2) above, multiplied by (B) a fraction (i) the numerator of which is the Annual Additions which would becredited  to  such  Participant’s  Accounts  under  this  Plan  without  regard  to  the  limitations  of  Code  Section  415  and  (ii)  thedenominator of which is such Annual Additions for all plans described in this subparagraph.

4.6 ADJUSTMENT FOR EXCESS ANNUAL ADDITIONS .

(a) Disposal of Excess Annual Additions . Allocation of Annual Additions to a Participant’s Account for a Limitation Year generally willcease in accordance with Section 4.5(d) once the maximum permissible amount of Section 4.5 has been reached for such Limitation Year.However, if, as a result of a reasonable error in estimating a Participant’s Compensation, a reasonable error in determining the amount ofElective Deferrals (within the meaning of Code Section 402(g)(3)) that may be made with respect to any Participant with respect to themaximum  permissible  amount  of  Section  4.5  or  other  facts  and  circumstances  to  which  Regulation  Section  1.415-6(b)(6)  shall  beapplicable,  the  Annual  Additions  under  this  Plan  would  cause  Excess  Annual  Additions  for  any  Participant,  then  the  Excess  AnnualAdditions  will  be  corrected  in  accordance  with  EPCRS  as  set  forth  in  Revenue  Procedure  2013-12  or  any  superseding  guidance,including, but not limited to the preamble of the final Section 415 Regulations.

(b) Section 415 suspense account defined .  For purposes of  this  Section,  the term “Section 415 suspense account” means an unallocatedaccount equal to the sum of Excess Annual Additions for all Participants in the Plan during the Limitation Year.

4.7 PLAN-TO-PLAN TRANSFERS (OTHER THAN ROLLOVERS) FROM QUALIFIED PLANS .

(a) Transfers  into  this  Plan.  With  the  consent  of  the  Administrator  (such  consent  must  be  exercised  in  a  nondiscriminatory  manner  andapplied uniformly to all Participants), amounts may be transferred (within the meaning of Code Section 414(l)) to this Plan from other taxqualified plans under Code Section 401(a), provided that the plan from which such funds are transferred permits the transfer to be madeand the transfer will not jeopardize the tax exempt status of the Plan or Trust or create adverse tax consequences for the Employer. Priorto  accepting  any  transfers  to  which  this  Section  applies,  the  Administrator  may  require  satisfactory  evidence  that  the  amounts  to  betransferred meet the requirements of this Section. The transferred amounts shall be allocated to the Transfer Account of the Participant.

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At the time of the transfer, the nonforfeitable percentage of the funds under the transferor plan shall apply, but thereafter shall increase (ifapplicable) for each Period of Service that the Participant completes after such transfer in accordance with the Vesting provisions of thisPlan  applicable  to  the  type  of  Account  represented  by  the  transferred  funds  (e.g.,  transferred  nonelective  funds  will  be  subject  to  thevesting  schedule  applicable  to  Nonelective  Contributions  under  this  Plan).  If  the  vesting  schedule  applicable  to  a  Transferred  Accountchanges as a result of this paragraph, such change will be treated as an amendment to the vesting schedule for each affected Participant.

(b) Accounting of transfers . The Transfer Account of a Participant shall be held by the Trustee pursuant to the provisions of this Plan andmay not be withdrawn by, or distributed to the Participant, in whole or in part, except as provided in paragraph (d) of this Section. TheTrustee shall have no duty or responsibility to inquire as to the propriety of the amount, value or type of assets transferred, nor to conductany due diligence with respect to such assets; provided, however, that such assets are otherwise eligible to be held by the Trustee underthe terms of this Plan.

(c) Restrictions on elective deferrals . Except as permitted by Regulations (including Regulation Section 1.411(d)-4), amounts attributableto elective deferrals (as defined in Regulation Section 1.401(k)-6), including amounts treated as elective deferrals, which are transferredfrom another qualified plan in a plan-to-plan transfer (other than a direct rollover) shall be subject to the distribution limitations providedfor in Code Section 401(k)(2) and the Regulations.

(d) Distribution of Transfer Account . At Normal Retirement Date, or such other date when the Participant or the Participant’s Beneficiaryshall be entitled to receive benefits, the Transfer Account of a Participant shall be used to provide additional benefits to the Participant orthe Participant’s Beneficiary. Any distributions of amounts held in the Transfer Account shall be made in a manner which is consistentwith and satisfies the provisions of Sections 6.5 and 6.6 and 6.14,  including, but not limited to,  all  notice and consent requirements ofCode Sections 417 and 411(a)(11) and the Regulations thereunder.  Furthermore,  the Transfer  Account  shall  be considered as  part  of  aParticipant’s benefit in determining whether an involuntary cash-out of benefits may be made without Participant consent.

(e) Segregation . The Administrator may direct that Employee transfers made after a Valuation Date be segregated into a separate accountfor each Participant until such time as the allocations pursuant to this Plan have been made, at which time they may remain segregated orbe invested as part of the general Trust Fund or be directed by the Participant pursuant to Section 4.9.

(f) Protected benefits .  Notwithstanding anything herein  to  the  contrary,  a  transfer  directly  to  this  Plan from another  qualified plan (or  atransaction having the effect of such a transfer) shall only be permitted if it will not result in the elimination or

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reduction of any “Section 411(d)(6) protected benefit” as described in Section 7.1(e).

(g) Separate Accounts .  With  respect  to  each  Participant’s  Transfer  Account,  separate  sub-accounts  shall  be  maintained  to  the  extentnecessary to carry out the provisions of this Plan.

4.8 ROLLOVERS FROM OTHER PLANS .

(a) Acceptance of rollovers into the Plan . With the consent of the Administrator (such consent must be exercised in a nondiscriminatorymanner  and  applied  uniformly  to  all  Participants),  the  Plan  may  accept  a  rollover  by  Participants,  excluding  Participants  who  are  nolonger  employed  as  an  Employee,  provided  the  rollover  will  not  jeopardize  the  tax-exempt  status  of  the  Plan  or  create  adverse  taxconsequences for the Employer. The rollover amounts shall be allocated to the Rollover Account of the Participant. The Rollover Accountof a Participant shall be one hundred percent (100%) Vested at all times and shall not be subject to Forfeiture for any reason. In addition,the Plan may accept rollovers of participant loans of Participants who had a loan from one of the plans of the companies listed in the thirdparagraph of Section 1.46 and who became Employees in connection with a transaction with such companies.

(b) Treatment of Rollover Account in the Plan . The Rollover Account shall be held by the Trustee pursuant to the provisions of this Planand may not be withdrawn by, or distributed to the Participant, in whole or in part, except as provided in paragraph (c) of this Section.The Trustee shall have no duty or responsibility to inquire as to the propriety of the amount, value or type of assets transferred, nor toconduct any due diligence with respect to such assets; provided, however, that such assets are otherwise eligible to be held by the Trusteeunder the terms of this Plan.

(c) Distribution of rollovers .  At  such  date  when the  Participant  or  the  Participant’s  Beneficiary  shall  be  entitled  to  receive  benefits,  theRollover  Account  of  a  Participant  shall  be  used  to  provide  additional  benefits  to  the  Participant  or  the  Participant’s  Beneficiary.Furthermore, amounts in the Participant’s Rollover Account shall be considered as part of a Participant’s benefit in determining whetherthe  $5,000  threshold  has  been  exceeded  for  purposes  of  the  timing  or  form of  payments  under  the  Plan  as  well  as  for  the  Participantconsent requirements. Any distributions of amounts that are held in the Rollover Account shall be made in a manner which is consistentwith  and  satisfies  the  provisions  of  Sections  6.5  and  6.15,  including,  but  not  limited  to,  all  notice  and  consent  requirements  of  CodeSections 417 and 411(a)(11) and the Regulations thereunder.

(d) Limits on accepting rollovers .  Prior  to  accepting  any  rollovers  to  which  this  Section  applies,  the  Administrator  may  require  theEmployee to provide evidence that the amounts to be rolled over to this Plan meet the requirements of this

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Section. The Company may instruct the Administrator, operationally and on a nondiscriminatory basis, to limit the source of rollovers thatmay be accepted by the Plan.

(e) Rollovers maintained in a separate account . The Administrator may direct that rollovers received after a Valuation Date be segregatedinto a separate account for each Participant until such time as the allocations pursuant to this Plan have been made, at which time theymay remain segregated or be invested as part of the general Trust Fund or be directed by the Participant pursuant to Section 4.9.

(f) Requirements for Roth Rollover Contributions . The Plan will accept a Roth Rollover Contribution to a Roth Rollover Account underthis  Plan  if  it  is  a  direct  rollover  from  another  Roth  elective  deferral  account  under  an  applicable  retirement  plan  described  in  CodeSection  402A(e)(1)  and  only  to  the  extent  the  rollover  is  permitted  under  the  rules  of  Code  Section  402(c).  The  Administrator,  in  itsdiscretion, shall determine in every instance whether the foregoing criteria have been met prior to acceptance of any such contribution.The  Administrator  may  request  of  the  Eligible  Employee  any  documents  or  evidence  it  deems  necessary  and  may  seek  the  advice  ofcounsel to assist it in making such a determination. Roth Rollover Contributions shall be paid to the Trustee in cash or such other form ofpayment as  may be approved by the Administrator  in its  discretion.  A Roth Rollover  Contribution shall  be delivered to  the Trustee assoon as practicable, but in no event later than 60 days after the amount thereof was received by the Eligible Employee. The Administratoror  its  delegate  shall  establish  a  Roth  Rollover  Account  on  behalf  of  the  Eligible  Employee  to  record the  amount  of  his  Roth  RolloverContribution. An Eligible Employee’s Roth Rollover Account shall be one hundred percent (100%) Vested at all times and shall not besubject to Forfeiture for any reason.

(g) Definitions . For purposes of this Section, the following definitions shall apply:

(1) The term “rollover” means: (i) pre-tax amounts transferred to this Plan directly from another “eligible retirement plan;” (ii) pre-tax  distributions  received  by  an  Employee  from other  “eligible  retirement  plans”  which  are  eligible  for  tax-free  rollover  to  an“eligible retirement plan” and which are transferred by the Employee to this Plan within sixty (60) days following receipt thereof;(iii)  any  other  pre-tax  amounts  which  are  eligible  to  be  rolled  over  to  this  Plan  pursuant  to  the  Code;  and  (iv)  Roth  401(k)contributions transferred to this Plan directly from another “eligible retirement plan.” Rollovers to the Plan may not include after-tax contributions (other than Roth Rollover Contributions as provided in Section 4.8).

(2) The  term  “eligible  retirement  plan”  means  an  individual  retirement  account  described  in  Code  Section  408(a),  an  individualretirement annuity described in Code Section 408(b) (other than an endowment contract),  a qualified trust (an employees’ trustdescribed in Code Section

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401(a)  which  is  exempt  from  tax  under  Code  Section  501(a)),  an  annuity  plan  described  in  Code  Section  403(a),  an  eligibledeferred  compensation  plan  described  in  Code  Section  457(b)  which  is  maintained  by  an  eligible  employer  described  in  CodeSection 457(e)(1)(A), and an annuity contract described in Code Section 403(b).

4.9 PARTICIPANT DIRECTED INVESTMENTS .

(a) Directed Investments allowed .  Participants  may,  subject  to  a  procedure  established  by  the  Administrator  (the  Participant  DirectionProcedures) and applied in a uniform nondiscriminatory manner, direct the Trustee, in writing (or in such other form which is acceptableto  the  Trustee),  to  invest  their  entire  Accounts  in  specific  assets,  specific  funds  or  other  investments  permitted  under  the  Plan  and theParticipant  Direction Procedures.  Participants  may also invest  up to  one hundred percent  (100%) of  their  Accounts  in  Company Stockthrough the ESOP as detailed in Article IX. The portions of the interest of any Participant so directing as described in this Section 4.9 willthereupon be considered a Participant’s Directed Account. For the avoidance of doubt, it is the intent of the Employer that Participants(and Beneficiaries) be able to invest all or a portion of their Accounts in Company Stock through the ESOP and the Administrator shallnot be permitted to amend, restrict or take other actions to the contrary that would frustrate such clear settlor’s intent of the Employer.

(b) Establishment of Participant Direction Procedures . The Administrator will establish Participant Direction Procedures, to be applied ina uniform and nondiscriminatory manner, setting forth the permissible investment options under this Section, how often changes betweeninvestments may be made, and any other limitations and provisions that the Administrator may impose on a Participant’s right to directinvestments.

(c) Administrative discretion .  The  Administrator  may,  in  its  discretion,  include  or  exclude  by  amendment  or  other  action  from  theParticipant  Direction  Procedures  such  instructions,  guidelines  or  policies  as  it  deems  necessary  or  appropriate  to  ensure  properadministration of the Plan, and may interpret the same accordingly.

(d) Allocation of earnings . As of each Valuation Date, all Participant Directed Accounts shall be charged or credited with the net earnings,gains, losses and expenses as well as any appreciation or depreciation in the market value using publicly listed fair market values whenavailable or appropriate as follows:

(1) to the extent that the assets in a Participant’s Directed Account are accounted for as pooled assets or investments, the allocation ofearnings, gains and losses of each Participant’s Directed Account shall be based upon the total amount of funds so invested in amanner proportionate to the Participant’s share of such pooled investment; and

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(2) to the extent that the assets in the Participant’s Directed Account are accounted for as segregated assets, the allocation of earnings,gains and losses from such assets shall be made on a separate and distinct basis.

(e) Plan will follow investment directions .  Investment  directions  will  be  processed  as  soon  as  administratively  practicable  after  properinvestment  directions  are  received  from  the  Participant.  No  guarantee  is  made  by  the  Plan,  Employer,  Administrator  or  Trustee  thatinvestment  directions  will  be  processed on a  daily  basis,  and no guarantee  is  made in  any respect  regarding the  processing time of  aninvestment direction. Notwithstanding any other provision of the Plan, the Company, Administrator or Trustee reserves the right to notvalue an investment option on any given Valuation Date for any reason deemed appropriate by the Company, Administrator or Trustee.Furthermore, the processing of any investment transaction may be delayed for any legitimate business reason or force majeure (including,but  not  limited  to,  failure  of  systems  or  computer  programs,  failure  of  the  means  of  the  transmission  of  data,  the  failure  of  a  serviceprovider to timely receive values or prices, and correction for errors or omissions or the errors or omissions of any service provider). Theprocessing  date  of  a  transaction  will  be  binding  for  all  purposes  of  the  Plan  and  considered  the  applicable  Valuation  Date  for  aninvestment transaction.

(f) Other documents .  Any information  regarding investments  available  under  the  Plan,  to  the  extent  not  required  to  be  described in  theParticipant Direction Procedures, may be provided to the Participant in one or more written documents (or in any other form including,but  not  limited to,  electronic media)  which are separate  from the Participant  Direction Procedures and are  not  thereby incorporated byreference into this Plan.

(g) Instructions, guidelines or policies . The Administrator may, in its discretion, include or exclude by amendment or other action from theParticipant  Direction  Procedures  such  instructions,  guidelines  or  policies  as  it  deems  necessary  or  appropriate  to  ensure  properadministration of the Plan, and may interpret the same accordingly, subject to, and continent with, Section 4.9(a) with respect to CompanyStock through the ESOP.

4.10 QUALIFIED MILITARY SERVICE. Notwithstanding any provision of  this  Plan to  the contrary,  contributions,  benefits  and service will  beprovided  in  accordance  with  Code  Section  414(u).  Furthermore,  loan  repayments  may  be  suspended  under  this  Plan  as  permitted  under  CodeSection 414(u)(4).

In addition, any contributions, benefits and service credit required to comply with the Heroes Earnings Assistance and Relief Tax Act of 2008(HEART Act) shall be conferred upon an eligible Participant or Beneficiary.

For years beginning after December 31, 2008, (a) an individual receiving a differential wage payment (if provided by the Employer), as definedby Code Section 3401(h)(2), shall be treated as an Employee of the Employer making the payment, (b) the differential

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wage  payment  shall  be  treated  as  compensation,  and  (c)  the  Plan  shall  not  be  treated  as  failing  to  meet  the  requirements  of  any  provisiondescribed in Code Section 414(u)(1)(C) by reason of any contribution or benefit which is based on the differential wage payment.

In the case of a Disability occurring on or after January 1, 2007, if a Participant suffers a Disability while performing qualified military service (asdefined in Code Section 414(u)), the Participant shall be entitled to any additional benefits (other than benefit accruals relating to the period ofqualified military service) provided under the Plan as if the Participant had resumed employment on the day immediately preceding the date ofDisability and then terminated employment on the date of Disability.

In the case of a death occurring on or after January 1, 2007, if a Participant dies while performing qualified military service (as defined in CodeSection  414(u)),  the  survivors  of  the  Participant  are  entitled  to  any  additional  benefits  (other  than  benefit  accruals  relating  to  the  period  ofqualified military service) provided under the Plan as if the Participant had resumed employment on the day immediately preceding the date ofdeath and then terminated employment on the date of death.

In the case of a Participant who performs service in the uniformed services (as defined in Code Section 414(u)(12)(B)) on active duty for a periodof more than 30 days, the Participant will be deemed to have a severance from employment solely for purposes of eligibility for distribution ofamounts not subject to Code Section 412. However, the Plan will not distribute such a Participant’s account on account of this deemed severanceunless the Participant specifically elects to receive a benefit distribution hereunder. If a Participant elects to receive a distribution on account ofthis deemed severance, then the individual may not make an elective deferral or employee contribution during the 6-month period beginning onthe date of the distribution. If a Participant would be entitled to a distribution on account of a deemed severance, and a distribution on account ofanother Plan provision (such as a qualified reservist distribution), then the other Plan provision will control and the 6-month suspension will notapply.

4.11 FAMILY AND MEDICAL LEAVE ACT REQUIREMENTS. Notwithstanding any other provisions of the Plan, in the case of an Employeewho takes family or medical leave as an eligible employee of a covered employer under the provisions of the Family and Medical Leave Act of1993 (FMLA), any period of FMLA leave shall be treated as continued Service for purposes of eligibility to participate in the Plan and CreditedService for vesting purposes under the Plan, to the extent required by applicable law.

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ARTICLE VVALUATIONS

5.1 VALUATION OF THE TRUST FUND. The Administrator shall direct the Trustee, as of each Valuation Date, to determine the net worth of theassets comprising the Trust Fund as it exists on the Valuation Date. In determining such net worth, the Trustee shall value the assets comprisingthe  Trust  Fund  at  their  fair  market  value  as  of  the  Valuation  Date  and  shall  deduct  all  expenses  for  which  the  Trustee  has  not  yet  obtainedreimbursement from the Employer or the Trust Fund. The Trustee may update the value of any shares held in the Participant Directed Account byreference to the number of shares held by that Participant, priced at the market value as of the Valuation Date.

5.2 METHOD OF VALUATION. In determining the fair market value of securities held in the Trust Fund which are listed on a registered stockexchange, the Administrator shall direct the Trustee to value the same at the prices they were last traded on such exchange preceding the close ofbusiness on the Valuation Date. If such securities were not traded on the Valuation Date, or if the exchange on which they are traded was not openfor business on the Valuation Date, then the securities shall be valued at the prices at which they were last traded prior to the Valuation Date. Anyunlisted security held in the Trust Fund shall be valued at its bid price next preceding the close of business on the Valuation Date, which bid priceshall be obtained from a registered broker or an investment banker. In determining the fair market value of assets other than securities for whichtrading  or  bid  prices  can  be  obtained,  the  Trustee  may  appraise  such  assets  itself,  or  in  its  discretion,  employ  one  or  more  appraisers  for  thatpurpose and rely on the values established by such appraiser or appraisers.

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ARTICLE VIDETERMINATION AND DISTRIBUTION OF BENEFITS

6.1 DETERMINATION OF BENEFITS UPON RETIREMENT. Every Participant may terminate employment with the Employer and retire forthe purposes hereof on the Participant’s Normal Retirement Date. However, a Participant may postpone the termination of employment with theEmployer to a later  date,  in which event  the participation of  such Participant  in the Plan,  including the right  to receive allocations pursuant  toSection  4.4,  shall  continue  until  such  Participant’s  Late  Retirement  Date.  Upon  a  Participant’s  Retirement  Date,  or  as  soon  thereafter  as  ispracticable,  the  Administrator  shall  direct  the  distribution,  at  the  election  of  the  Participant,  of  the  Participant’s  Vested  interest  in  the  Plan  inaccordance with Section 6.5.

6.2 DETERMINATION OF BENEFITS UPON DEATH .

(a) Distributable amount .  In  the  event  of  the  death  of  a  Participant  or  Terminated  Participant  prior  to  the  complete  distribution  of  theParticipant’s Account,  the amount of the death benefit  on his  behalf  shall  be one hundred percent (100%) of the Vested portion of theParticipant’s  Account,  determined  on  the  Valuation  Date  immediately  preceding  the  date  of  the  Participant’s  death,  increased  by  anycontributions and earnings allocated after such Valuation Date, and reduced by any payments or withdrawals made from such accountssince such preceding Valuation Date.

(b) Vesting on death . An active Participant shall be one hundred percent (100%) Vested in the Participant’s Account upon death.

(c) Forms of distribution . The death benefit shall be subject to the general benefit provisions of Article VI hereof. Except as provided inSection 7.2(b), the benefit shall be paid in a single sum, or in such other optional form as may be elected by the Participant or Beneficiary,as the case may be, under Section 6.1 hereof, to the designated Beneficiary of the deceased Participant as soon as practicable after the lastday of the Plan Year during which such death occurs; provided, however, that upon the Beneficiary’s request, the commencement date ofany benefits payable to a Beneficiary shall be as soon as practicable following the date such death occurs.

(d) Beneficiary designation . Subject to the rights of a surviving Spouse described herein, each Participant or Terminated Participant shallhave  the  right  to  designate  the  Beneficiary  to  receive  the  death  benefit  on  his  behalf,  and  to  revoke  any  such  designation.  Each  suchdesignation, or revocation thereof, shall be evidenced by a written instrument filed with the Administrator and signed by the Participant orTerminated Participant. Unless the conditions which follow for the designation of a Beneficiary other than the Spouse are satisfied, theBeneficiary of a Participant or Terminated Participant who is married on the date of his death shall be the surviving Spouse, whether ornot so designated in the written instrument filed

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with the Administrator and even if no such instrument is filed. Designation of a Beneficiary other than the Spouse shall be valid only ifeither:

(1) the  Spouse  consents  in  writing  to  such  designation,  acknowledging  the  effect  thereof,  witnessed  by  a  notary  public  or  Planrepresentative;

(2) the  Terminated  Participant  or  Participant,  although  married  at  the  time  of  the  designation,  is  ultimately  not  survived  by  hisSpouse; or

(3) the surviving Spouse cannot be located.

Such spousal consent obtained pursuant to (i) shall  be irrevocable. If  the Participant or Terminated Participant is survived by a Spouseother than the Spouse who consented to designation of another as Beneficiary, the consent of the former Spouse shall be ineffective.

If no designation of Beneficiary is on file with the Administrator at the time of the death of a Participant or Terminated Participant, or ifsuch designation is not effective for any reason, then the Administrator shall direct the Trustee to pay the Participant’s Account balance inaccordance with the following hierarchy:

(1) The Participant’s surviving spouse;

(2) and  if  no  surviving  spouse  exists,  to  The  Participant’s  children  (including  adopted  children)  in  equal  shares  by  right  ofrepresentation  (one  share  for  each  living  child  and  one  share  for  each  child  who  predeceases  the  Participant  with  livingdescendants);

(3) and if none to The Participant’s surviving parents, in equal shares;

(4) and if none to The Participant’s estate.

A divorce decree shall revoke a Participant’s designation of his spouse (or former spouse) as Beneficiary, unless the divorce decree or aqualified domestic relations order provides otherwise.

6.3 DISABILITY RETIREMENT BENEFITS. In  the  event  the  Administrator  determines  that  a  Participant  incurs  Disability  while  still  anEmployee,  such  Participant  shall  be  entitled  to  one  hundred  percent  (100%)  of  the  Participant’s  Account,  determined  on  the  Valuation  Dateimmediately preceding the date of his Disability, increased by any contributions and earnings allocated after such Valuation Date, and reduced byany payments or withdrawals made from such accounts since such preceding Valuation Date.

Any benefits  due  a  disabled  Participant  from the  Participant’s  Personal  Account  shall  be  paid  or  applied  for  his  benefit  subject  to  the  generalbenefit provisions of Article VI hereof; provided, however, that, if the Participant so elects, the commencement date of any benefits payable tosuch a Participant may be as soon as practicable following the date such Disability occurs and prior to the Participant’s Normal Retirement Date.

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In the event of the death of the Participant subsequent to the date his Disability occurred and prior to the commencement of his disability benefitshereunder, the amount payable on behalf of such Participant shall be paid as a death benefit as provided otherwise in this article.

6.4 DETERMINATION OF BENEFITS UPON TERMINATION .

(a) Payment on termination of employment .  If  a  Participant’s  employment  with  the  Employer  is  terminated  for  any  reason  other  thandeath, Disability or retirement, then such Participant shall be entitled to such benefits as are provided hereinafter pursuant to this Section6.4.

Distribution of the funds due to a Terminated Participant shall be made on the occurrence of an event which would result in a distributableevent  had  the  Terminated  Participant  remained  in  the  employ  of  the  Employer  (upon  the  Participant’s  death,  Disability  or  NormalRetirement).  However,  at  the election of  the Participant,  the Administrator  shall  direct  the distribution of  all  or  a  portion (no less  than$1,000)  of  the  Vested  portion  of  the  Terminated  Participant’s  Account  as  soon  as  administratively  feasible  after  termination  ofemployment.  Any distribution under  this  paragraph shall  be  made in  a  manner  which is  consistent  with  and satisfies  the  provisions  ofSection 6.5, including, but not limited to, all notice and consent requirements of Code Sections 417 and 411(a)(11) and the Regulationsthereunder.

For  purposes  of  this  Section  6.4,  if  the  value  of  a  Terminated  Participant’s  Vested  benefit  is  zero,  the  Terminated  Participant  shall  bedeemed to have received a distribution of such Vested benefit.

(b) Vesting schedule . The Vested portion of the Account of any Participant attributable to Employer contributions shall be a percentage ofthe  total  amount  credited  to  the  Participant’s  Accounts  determined  on  the  basis  of  the  Participant’s  number  of  whole  year  Periods  ofService according to the following schedule(s):

(1) The  Elective  Deferral  Account,  Roth  Contribution  Account  and  the  Qualified  Nonelective  Contribution  Account  shall  be  onehundred percent (100%) Vested regardless of a Participant’s number of whole year Periods of Service.

(2) The  Vested  portion  of  the  Safe  Harbor  Contribution  made  to  the  QACA Account  under  Section  4.1(d)  shall  be  determined  inaccordance with the following vesting schedule:

Vesting SchedulePeriods of Service Percentage

Less than 2 0%2 100%

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(3) The  Vested  portion  of  the  employer  matching  contribution  account  of  a  Participant  under  the  C&C Technologies,  Inc.  401(k)Profit Sharing Plan that was transferred to the Plan effective as of January 1, 2016 (“ C&C Plan Matching Contributions ”), asreflected in a Participant’s Transfer Account, shall be determined in accordance with the following vesting schedule:

Vesting SchedulePeriods of Service Percentage

Less than 2 0%23456

20%40%60%80%100%

Any portion of a Participant’s C&C Plan Matching Contributions that are forfeited shall be Forfeitures subject to the applicableprovisions of the Plan governing the treatment of Forfeitures.

(c) No reduction in Vested percentage due to change in vesting schedule .  Notwithstanding  the  vesting  schedule  above,  the  Vestedpercentage  of  a  Participant’s  Account  shall  not  be  less  than  the  Vested  percentage  attained  as  of  the  Effective  Date  (or,  if  later,  theadoption date of this amendment and restatement of the Plan).

(d) Time of application of vesting schedule liberalization . In the absence of any provision to the contrary, any direct or indirect increase toa  Participant’s  Vested  percentage  (at  any  point  on  a  vesting  schedule)  will  not  apply  to  a  Participant  unless  and until  such  Participantcompletes an Hour of Service after the effective date of such amendment.

(e) Vesting on partial or full Plan termination .  Notwithstanding  the  vesting  schedule  above,  upon  the  complete  discontinuance  of  theEmployer contributions to the Plan or upon any full  or  partial  termination of  the Plan,  all  amounts then credited to the account of  anyaffected Participant shall become one hundred percent (100%) Vested and shall not thereafter be subject to Forfeiture.

(f) Unless otherwise noted herein a Plan Participant who has a Transfer Account as a result of a merger into this Plan from a predecessor planwill be subject to the vesting provisions of the predecessor plan as those terms existed on the date of the merger.

6.5 DISTRIBUTION OF BENEFITS. Unless otherwise elected by the Participant or the Beneficiary, the Plan will pay all distributable benefits inthe form of a single lump sum payment of the Participant’s entire Vested Account or a partial distribution thereof not

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less than $1,000 (or the remainder of the Participant’s Vested Account), subject to the time restrictions for making payments under Section 6.8. Ifthe Participant elects to receive a partial distribution, then the amount distributed shall be charged to, and paid from, the Terminated Participant’sAccounts on a pro-rata basis. The Participant or spousal Beneficiary may choose to have the account distributed in the form of equal installmentpayments. The installments may be paid in a monthly, quarterly or annual payment format at the election of the Participant or spousal Beneficiary,and the installments may extend over a period of time that does not exceed the time restrictions for making payments under Section 6.8.

Non-spouse Beneficiaries will be paid in the form of a lump-sum distribution no later than the end of the year following the Participant’s death,unless circumstances prevent such payment

6.6 RESERVED .

6.7 TIME OF DISTRIBUTION. Notwithstanding  any other  provisions  of  the  Plan,  but  in  addition  to  such  provisions  (as  applicable),  unless  theParticipant elects otherwise, distribution of benefits shall begin no later than the sixtieth (60th) day after the close of the Plan Year in which thelatest of the following events occurs:

(a) the date the Participant attains sixty-five (65) years of age;

(b) the date which is the tenth (10th) anniversary of the first (1st) day of the Plan Year in which the Participant commenced participation inthe Plan; or

(c) the date the Participant terminates Service with the Employer.

If the amount of the payment required to commence on the date determined under this section cannot be ascertained by such date, or if it is notpossible to make such payment on such date because the Administrator has been unable to locate the Participant after making reasonable efforts todo  so,  then  a  payment  retroactive  to  such  date  may  be  made  no  later  than  sixty  (60)  days  after  the  earliest  date  on  which  the  amount  can  beascertained under the Plan or the date on which the Participant is located (whichever is applicable).

Notwithstanding  the  foregoing,  the  failure  of  a  Participant  and,  if  applicable,  the  Participant’s  spouse,  to  consent  to  a  distribution  that  isimmediately  distributable,  shall  be  deemed  to  be  an  election  to  defer  the  commencement  of  payment  of  any  benefit  sufficient  to  satisfy  thisSection.

6.8 REQUIRED MINIMUM DISTRIBUTIONS .

(a) General Rules .

(1) Precedence .  The  requirements  of  this  Section  shall  apply  to  any  distribution  of  a  Participant’s  interest  in  the  Plan  and  takeprecedence over any inconsistent provisions of the Plan.

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(2) Requirements of Treasury Regulations Incorporated .  All  distributions  required  under  this  Section  will  be  determined  andmade  in  accordance  with  the  Regulations  under  Code  Section  401(a)(9)  and  the  minimum  distribution  incidental  benefitrequirement of Code Section 401(a)(9)(G).

(3) 2009 Suspension . For Plan Year 2009, required minimum distributions under this Section 6.8 shall be suspended in accordancewith Code Section 401(a)(9)(H).

(b) Time and manner of distribution .

(1) Required beginning date .  The Participant’s entire interest will  be distributed, or begin to be distributed, to the Participant nolater than the Participant’s required beginning date.

(2) Death of Participant before distributions begin . If the Participant dies before distributions begin, the Participant’s entire deathbenefit will be distributed, or begin to be distributed, as follows:

(i) If the Participant or Beneficiary elects, distributions to the designated beneficiary will begin by December 31 ofthe calendar year immediately following the calendar year in which the Participant  died,  or,  if  the Participant’ssurviving spouse is  the Participant’s  designated beneficiary,  by December 31 of  the calendar  year  in  which theParticipant would have attained age 70½, if later. Alternatively, the Participant or Beneficiary may elect to havedistribution of the Participant’s death benefit be completed by the December 31 of the calendar year containingthe fifth anniversary of the Participant’s death. In the absence of any election (including the failure to commencerequired minimum distributions described by this Section by the December 31 of the calendar year immediatelyfollowing the calendar year in which the Participant died), distribution of the Participant’s death benefit shall becompleted by December 31 of the calendar year containing the fifth anniversary of the Participant’s death.

(ii) If  there  is  no  beneficiary  as  of  September  30  of  the  year  following  the  year  of  the  Participant’s  death,  thedistribution of the Participant’s death benefit -will be completed by December 31 of the calendar year containingthe fifth anniversary of the Participant’s death.

(iii) If the Participant’s surviving spouse is the Participant’s sole designated beneficiary and the surviving spouse diesafter the Participant but before distributions to the surviving

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spouse  begin,  this  Section  6.8(b),  other  than  this  paragraph,  will  apply  as  if  the  surviving  spouse  were  theParticipant. Thus, in all such cases, the time at which distributions must commence (or be completed by) shall bedetermined  solely  by  reference  to  the  year  that  the  Participant  died,  and  not  the  year  in  which  the  Participantwould have attained age 70½.

For  purposes  of  this  Section  6.8(b),  unless  a  surviving  spouse  is  electing  to  commence  benefits  based  upon  the  date  that  theParticipant would have attained age 70½, distributions are considered to begin on the Participant’s required beginning date. If thesurviving-spouse  election  applies,  distributions  are  considered  to  begin  on  the  date  distributions  are  required  to  begin  to  thesurviving  spouse  under  Section  6.8(b).  If  distributions  under  an  annuity  purchased  from  an  insurance  company  irrevocablycommence to the Participant before the Participant’s required beginning date (or to the Participant’s surviving spouse before thedate distributions are required to begin to the surviving spouse under Section 6.8(b)), the date distributions are considered to beginis the date distributions actually commence.

(3) Forms  of  distribution.  Unless  the  Participant’s  interest  is  distributed  in  the  form  of  an  annuity  purchased  from  an  insurancecompany or in a single sum on or before the required beginning date, as of the first distribution calendar year distributions will bemade in accordance with Sections 6.8(c) and 6.8(d). If the Participant’s interest is distributed in the form of an annuity purchasedfrom an insurance company, distributions thereunder will be made in accordance with the requirements of Code Section 401(a)(9)and  the  Regulations  thereunder.  All  distributions  under  this  Section  shall  be  made  in  a  manner  which  is  consistent  with  andsatisfies the provisions of Section 6.5, including, but not limited to, all notice and consent requirements of Code Sections 417 and411(a)(11) and the Regulations thereunder.

(c) Required minimum distributions during Participant’s lifetime .

(1) Amount of required minimum distribution for each distribution calendar year .  During  the  Participant’s  lifetime,  theminimum amount that will be distributed for each distribution calendar year is the lesser of:

(i) the  quotient  obtained  by  dividing  the  Participant’s  Account  balance  by  the  distribution  period  in  the  UniformLifetime  Table  set  forth  in  Regulation  Section  1.401(a)(9)-9,  using  the  Participant’s  age  as  of  the  Participant’sbirthday in the distribution calendar year; or

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(ii) if the Participant’s sole designated beneficiary for the distribution calendar year is the Participant’s spouse and thespouse  is  more  than  10  years  younger  than  the  Participant,  the  quotient  obtained  by  dividing  the  Participant’sAccount balance by the number in the Joint and Last Survivor Table set forth in Regulation Section 1.401(a)(9)-9,using the Participant’s and spouse’s attained ages as of the Participant’s and spouse’s birthdays in the distributioncalendar year.

(2) Lifetime required minimum distributions continue through year of Participant’s death .  Required minimum distributionswill  be  determined  under  this  Section  6.8(c)  beginning  with  the  first  distribution  calendar  year  and  up  to  and  including  thedistribution calendar year that includes the Participant’s date of death.

(d) Required minimum distributions after Participant’s death .

(1) Death on or after date distributions begin.

(i) Participant survived by designated beneficiary . If the Participant dies on or after the date distributions beginand there is a designated beneficiary, the minimum amount that will be distributed for each distribution calendaryear after the year of the Participant’s death is the quotient obtained by dividing the Participant’s Account balanceby  the  longer  of  the  remaining  life  expectancy  of  the  Participant  or  the  remaining  life  expectancy  of  theParticipant’s designated beneficiary, determined as follows:

(A) The Participant’s  remaining life  expectancy is  calculated using the  age of  the  Participant  in  the  year  ofdeath, reduced by one for each subsequent year.

(B) If  the  Participant’s  surviving  spouse  is  the  Participant’s  sole  designated  beneficiary,  the  remaining  lifeexpectancy of the surviving spouse is calculated for each distribution calendar year after the year of theParticipant’s  death  using  the  surviving  spouse’s  age  as  of  the  spouse’s  birthday  in  that  year.  Fordistribution calendar years after the year of the surviving spouse’s death, the remaining life expectancy ofthe surviving spouse is calculated using the age of the surviving spouse as of the spouse’s birthday in thecalendar year of the

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spouse’s death, reduced by one for each subsequent calendar year.

(C) If  the  Participant’s  surviving  spouse  is  not  the  Participant’s  sole  designated  beneficiary,  the  designatedbeneficiary’s remaining life expectancy is calculated using the age of the beneficiary in the year followingthe year of the Participant’s death, reduced by one for each subsequent year.

(ii) No designated beneficiary .  If  the  Participant  dies  on  or  after  the  date  distributions  begin  and  there  is  nodesignated  beneficiary  as  of  September  30  of  the  year  after  the  year  of  the  Participant’s  death,  the  minimumamount that will be distributed for each distribution calendar year after the year of the Participant’s death is thequotient  obtained  by  dividing  the  Participant’s  Account  balance  by  the  Participant’s  remaining  life  expectancycalculated using the age of the Participant in the year of death, reduced by one for each subsequent year.

(2) Death before date distributions begin .

(i) Participant survived by designated beneficiary . Except as provided in Section 6.8(b)(3), if the Participant diesbefore  the  date  distributions  begin  and  there  is  a  designated  beneficiary,  the  minimum  amount  that  will  bedistributed for each distribution calendar year after the year of the Participant’s death is the quotient obtained bydividing  the  Participant’s  Account  balance  by  the  remaining  life  expectancy  of  the  Participant’s  designatedbeneficiary, determined as provided in Section 6.8(d)(1).

(ii) No designated beneficiary . If the Participant dies before the date distributions begin and there is no designatedbeneficiary  as  of  September  30  of  the  year  following  the  year  of  the  Participant’s  death,  distribution  of  theParticipant’s  entire  interest  will  be  completed  by  December  31  of  the  calendar  year  containing  the  fifthanniversary of the Participant’s death.

(iii) Death of surviving spouse before distributions to surviving spouse are required to begin . If the Participantdies  before  the  date  distributions  begin,  the  Participant’s  surviving  spouse  is  the  Participant’s  sole  designatedbeneficiary, and the surviving spouse dies before distributions are required to begin to the surviving spouse

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under Section 6.8(b), this Section 6.8(d)(2) will apply as if the surviving spouse were the Participant.

(e) Definitions . For purposes of this Section, the following definitions apply:

(1) “Designated  beneficiary”  means  the  individual  who  is  designated  as  the  Beneficiary  under  the  Plan  and  is  the  designatedbeneficiary under Code Section 401(a)(9) and Regulation Section 1.401(a)(9)-4, Q&A-4.

(2) “Distribution  calendar  year”  means  a  calendar  year  for  which  a  minimum distribution  is  required.  For  distributions  beginningbefore  the  Participant’s  death,  the  first  distribution  calendar  year  is  the  calendar  year  immediately  preceding  the  calendar  yearwhich  contains  the  Participant’s  “required  beginning  date.”  For  distributions  beginning  after  the  Participant’s  death,  the  firstdistribution  calendar  year  is  the  calendar  year  in  which  distributions  are  required  to  begin  under  Section  6.8(b).  The  requiredminimum distribution for the Participant’s first  distribution calendar year will  be made on or before the Participant’s “requiredbeginning  date.”  The  required  minimum  distribution  for  other  distribution  calendar  years,  including  the  required  minimumdistribution  for  the  distribution  calendar  year  in  which  the  Participant’s  “required  beginning  date”  occurs,  will  be  made  on  orbefore December 31 of that distribution calendar year.

(3) “Life expectancy” means the life expectancy as computed by use of the Single Life Table in Regulation Section 1.401(a)(9)-9,Q&A-1.

(4) “Participant’s  account  balance”  means  the  “Participant’s  account  balance”  as  of  the  last  Valuation  Date  in  the  calendar  yearimmediately  preceding  the  Distribution  calendar  year  (valuation  calendar  year)  increased  by  the  amount  of  any  contributionsmade and allocated or Forfeitures allocated to the account balance as of dates in the valuation calendar year after the ValuationDate  and  decreased  by  distributions  made  in  the  valuation  calendar  year  after  the  Valuation  Date.  For  this  purpose,  theAdministrator may exclude contributions that are allocated to the account balance as of dates in the valuation calendar year afterthe  Valuation  Date,  but  that  are  not  actually  made  during  the  valuation  calendar  year.  The  account  balance  for  the  valuationcalendar  year  includes  any  amounts  rolled  over  or  transferred  to  the  Plan  either  in  the  valuation  calendar  year  or  in  theDistribution calendar year if distributed or transferred in the valuation calendar year.

(5) “Required beginning date” means, with respect to any Participant, April 1 of the calendar year following the later of the calendaryear in which the Participant attains age 70½ or the calendar year in which the Participant retires, except that benefit distributionsto a 5-percent owner must

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commence by April 1 of the calendar year following the calendar year in which the Participant attains age 70½.

(6) “5-percent owner” means a Participant who is a 5-percent owner as defined in Code Section 416 at any time during the Plan Yearending with or within the calendar year in which such owner attains age 70½. Once distributions have begun to a 5-percent ownerunder  this  Section they must  continue to  be  distributed,  even if  the  Participant  ceases  to  be  a  5-percent  owner  in  a  subsequentyear.

(f) Statutory (TEFRA) Transition Rules .

(1) Notwithstanding  the  other  provisions  of  this  Section,  other  than  the  spouse’s  right  of  consent  afforded  under  the  Plan,distributions  may  be  made  on  behalf  of  any  Participant,  including  a  five  percent  (5%)  owner,  who  has  made  a  designation  inaccordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and in accordance with all  of thefollowing requirements (regardless of when such distribution commences):

(i) The distribution by the Plan is one which would not have disqualified such plan under Code Section 401(a)(9) asin effect prior to amendment by the Deficit Reduction Act of 1984.

(ii) The distribution is in accordance with a method of distribution designated by the Participant whose interest in theplan is being distributed or, if the Participant is deceased, by a Beneficiary of such Participant.

(iii) Such designation was in writing, was signed by the Participant or the Beneficiary, and was made before January1, 1984.

(iv) The Participant had accrued a benefit under the Plan as of December 31, 1983.

(v) The  method  of  distribution  designated  by  the  Participant  or  the  Beneficiary  specifies  the  time  at  whichdistribution will commence, the period over which distributions will be made, and in the case of any distributionupon the Participant’s death, the Beneficiaries of the Participant listed in order of priority.

(2) A distribution upon death will not be covered by the transitional rule of this subsection unless the information in the designationcontains the required information described above with respect to the distributions to be made upon the death of the Participant.

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(3) If or any distribution which commences before January 1, 1984, but continues after December 31, 1983, the Participant,  or theBeneficiary,  to  whom  such  distribution  is  being  made,  will  be  presumed  to  have  designated  the  method  of  distribution  underwhich  the  distribution  is  being  made  if  the  method  of  distribution  was  specified  in  writing  and  the  distribution  satisfies  therequirements in (1)(i) and (1)(v) of this subsection.

(4) If  a  designation  is  revoked,  any  subsequent  distribution  must  satisfy  the  requirements  of  Code  Section  401(a)(9)  and  theRegulations  thereunder.  If  a  designation  is  revoked  subsequent  to  the  date  distributions  are  required  to  begin,  the  Plan  mustdistribute  by  the  end  of  the  calendar  year  following  the  calendar  year  in  which  the  revocation  occurs  the  total  amount  not  yetdistributed  which  would  have  been  required  to  have  been  distributed  to  satisfy  Code  Section  401(a)(9)  and  the  Regulationsthereunder, but for the Section 242(b)(2) election. For calendar years beginning after December 31, 1988, such distributions mustmeet  the  minimum  distribution  incidental  benefit  requirements.  Any  changes  in  the  designation  will  be  considered  to  be  arevocation  of  the  designation.  However,  the  mere  substitution  or  addition  of  another  Beneficiary  (one  not  named  in  thedesignation) under the designation will  not  be considered to be a revocation of the designation,  so long as such substitution oraddition  does  not  alter  the  period  over  which  distributions  are  to  be  made  under  the  designation,  directly  or  indirectly  (forexample, by altering the relevant measuring life).

(5) In the case in which an amount is transferred or rolled over from one plan to another plan, the rules in Regulation Section 1.401(a)(9)-8, Q&A-14 and Q&A-15, shall apply.

6.9 DISTRIBUTION FOR MINOR OR INCOMPETENT INDIVIDUAL. In  the  event  a  distribution  is  to  be  made to  a  minor  or  incompetentindividual, then the Administrator may direct that such distribution be paid to the court-appointed legal guardian or any other person authorizedunder state law to receive such distribution, or if none, then in the case of a minor Beneficiary, to a parent of such Beneficiary, or to the custodianfor  such  Beneficiary  under  the  Uniform Gift  to  Minors  Act  or  Gift  to  Minors  Act,  if  such  is  permitted  by  the  laws  of  the  state  in  which  saidBeneficiary resides. Such a payment to the guardian, custodian or parent of a minor or incompetent individual shall fully discharge the Trustee,Employer, and Plan from further liability on account thereof

6.10 LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN. In  the  event  that  all,  or  any  portion,  of  the  distribution  payable  to  aParticipant or Beneficiary hereunder shall, at the later of the Participant’s attainment Normal Retirement Age, remain unpaid solely by reason ofthe inability of the Administrator, after sending a registered letter, return receipt requested, to the last known address, and after further diligenteffort, to ascertain the whereabouts of such Participant or Beneficiary, the amount so distributable shall be treated as a Forfeiture pursuant to thePlan.

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Notwithstanding the foregoing, effective with respect to distributions made after March 28, 2005, if the Plan provides for mandatory distributionsand the amount to be distributed to a Participant or Beneficiary does not exceed $1,000, then the amount distributable may, in the sole discretionof the Administrator, either be treated as a Forfeiture, or be paid directly to an individual retirement account described in Code Section 408(a) oran  individual  retirement  annuity  described  in  Code  Section  408(b)  at  the  time  it  is  determined  that  the  whereabouts  of  the  Participant  or  theParticipant’s Beneficiary cannot be ascertained. In the event a Participant or Beneficiary is located subsequent to the Forfeiture, such benefit shallbe restored, first from Forfeitures, if any, and then from an additional Employer contribution if necessary. Upon Plan termination, the portion ofthe distributable amount that is an eligible rollover distribution as defined in Section 6.15 may be paid directly to an individual retirement accountdescribed in Code Section 408(a) or an individual retirement annuity described in Code Section 408(b). However, regardless of the preceding, abenefit  that  is  lost  by  reason  of  escheat  under  applicable  state  law  is  not  treated  as  a  Forfeiture  for  purposes  of  this  Section  nor  as  animpermissible forfeiture under the Code.

6.11 PRE-RETIREMENT DISTRIBUTION OF EMPLOYER CONTRIBUTIONS. A  Participant  who  is  age  59½  or  older  and  who  has  notsevered employment with the Employer may elect, in the form and manner prescribed by the Administrator, to have the Administrator direct theTrustee to distribute all or a portion of the Participant’s Accounts that are vested (including from the Participant’s Elective Deferral Account and,if applicable, Roth Contribution Account). In the event that the Administrator makes such an in-service distribution, the Participant shall continueto be eligible to participate in the Plan on the same basis as any other Employee. Any distribution made pursuant to this Section shall be made in alump sum payment and charged and withdrawn pro-rata from the Participant’s Accounts.  Notwithstanding any provision in this  Section to thecontrary, to the extent any amounts attributable to a Participant’s Accounts collateralizes a loan under Section 7.4, such collateralized amountsshall not be eligible for in-service withdrawal under this Section.

6.12 ADVANCE DISTRIBUTION FOR HARDSHIP .

(a) The  Administrator,  at  the  election  of  the  Participant  whether  or  not  currently  employed  as  an  Employee,  shall  direct  the  Trustee  todistribute  to  any  Participant  from  the  Vested  portion  of  the  Participant’s  Account,  excluding  amounts  in  the  QACA Account  and  theQualified Nonelective Contribution Account, the amount necessary to satisfy the immediate and heavy financial need of the Participant,subject to the limitations of this Section. Any distribution made pursuant to this Section shall be deemed to be made as of the first day ofthe  Plan  Year  or,  if  later,  the  Valuation  Date  immediately  preceding  the  date  of  distribution.  Any  withdrawal  made  pursuant  to  thisSection shall be deemed to be on account of an immediate and heavy financial need of the Participant if the withdrawal is for:

(1) Expenses for (or necessary to obtain) medical care (for the Participant or the spouse or dependent of the Participant) that would bedeductible by the Participant under Code Section 213(d) (determined without regard to

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whether the expenses exceed seven and one-half percent (7.5%) of adjusted gross income);

(2) Costs directly related to the purchase (excluding mortgage payments) of a principal residence for the Participant;

(3) Payments for burial or funeral expenses for the Participant’s deceased parent, spouse, children or dependents (as defined in CodeSection 152, and, for taxable years beginning on or after January 1, 2005, without regard to Code Section 152(d)(1)(B));

(4) Payment  of  tuition,  related  educational  fees,  and  room  and  board  expenses,  for  up  to  the  next  twelve  (12)  months  of  post-secondary education for the Participant, the Participant’s spouse, children, or dependents (as defined in Code Section 152, and, fortaxable years beginning on or after January 1, 2005, without regard to Code Sections 152(b)(1), (b)(2), and (d)(1)(B));

(5) Payments  necessary  to  prevent  the  eviction  of  the  Participant  from  the  Participant’s  principal  residence  or  foreclosure  on  themortgage on that residence;

(6) Expenses  for  the  repair  of  damage  to  the  Participant’s  principal  residence  that  would  qualify  for  the  casualty  deduction  underCode Section 165 (determined without regard to Code Section 165(h)(5) and whether the loss exceeds ten (10%) of adjusted grossincome), or

(7) Expenses  and  losses  (including  loss  of  income)  incurred  by  the  Participant  on  account  of  a  disaster  declared  by  the  FederalEmergency Management Agency (“FEMA”) under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, PublicLaw 100-707, provided that the Participant’s principal residence or principal place of employment at the time of the disaster waslocated in an area designated by FEMA for individual assistance with respect to the disaster.

(b) No distribution shall be made pursuant to this Section unless the Administrator, based upon the Participant’s representation, in the formprescribed by the Administrator, and such other facts as are known to the Administrator, determines that all of the following conditionsare satisfied:

(1) For  hardship  withdrawals  on  and  after  January  1,  2019,  the  Participant  represents  in  writing  or  electronic  medium  that  theParticipant has insufficient cash or other liquid assets to satisfy the need. The distribution is not in excess of the amount of theimmediate and heavy financial need of the Participant. The amount of the immediate and heavy financial need may include anyamounts  necessary  to  pay  any  federal,  state,  or  local  income  taxes  or  penalties  reasonably  anticipated  to  result  from  thedistribution;

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(2) The Participant has obtained (i) all distributions, other than hardship distributions, and (ii) for hardship distributions made prior toJanuary 1, 2019, all nontaxable (at the time of the loan) loans, currently available under all plans maintained by the Employer; and

(3) With respect to hardship distributions made under this Section prior to January 1, 2019, the Participant’s Elective Deferrals andRoth  Contributions  will  be  suspended  for  a  period  that  ends  on  the  earlier  of  (i)  six  (6)  months  after  receipt  of  the  hardshipdistribution or (ii) January 1, 2019.

(c) Hardship  distributions  made  under  this  Section  after  December  31,  2018,  shall  including  any  earnings  allocated  to  the  Participant’sAccounts (other than earnings allocated to the QACA Account and the Qualified Nonelective Contribution Account).

(d) Any distribution made pursuant to this Section shall be made in a manner which is consistent with and satisfies the provisions of Section6.5,  including,  but  not  limited  to,  all  notice  and  consent  requirements  of  Code  Sections  417  and  411(a)(11)  and  the  Regulationsthereunder.

(e) Hardship distributions may be made from the Elective Deferral Account and Roth Contribution Account, subject to the limitations notedabove.

6.13 QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION. All rights and benefits, including elections, provided to a Participant inthis Plan shall be subject to the rights afforded to any alternate payee under a qualified domestic relations order. Furthermore, a distribution to analternate payee shall be permitted if such distribution is authorized by a qualified domestic relations order, even if the affected Participant has notseparated from service and has not reached the earliest retirement age. For the purposes of this Section, the terms “alternate payee,” “qualifieddomestic relations order” and “earliest retirement age” shall have the meaning set forth under Code Section 414(p).

6.14 QUALFIED RESERVISTS DISTRIBUTION . Notwithstanding any other provision of the Plan to the contrary, a Participant who is a memberof a reserve component (as defined in Section 101 of Title 37 of the United States Code) who is ordered or called to active duty for a period inexcess of 179 days, or for an indefinite period, may elect to receive a cash withdrawal of all or any portion of his Elective Deferral Account and,if  applicable,  Roth  Contribution  Account.  Any  distribution  made  to  a  Participant  pursuant  to  this  Section  must  be  made  during  the  periodbeginning on the date of his order or call to active duty and ending on the close of his active duty period.

6.15 DIRECT ROLLOVER. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee’s election under thisSection, a distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an eligible rolloverdistribution paid directly to an eligible Retirement Savings Plan specified by the distributee in a direct rollover.

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(a) Eligible rollover distribution . An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of thedistributee,  except  that  an  eligible  rollover  distribution  does  not  include:  any  distribution  that  is  one  of  a  series  of  substantially  equalperiodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint lifeexpectancies)  of  the  distributee  and  the  distributee’s  designated  beneficiary,  or  for  a  specified  period  of  ten  (10)  years  or  more;  anydistribution  to  the  extent  such  distribution  is  required  under  Code Section  401(a)(9);  any  hardship  distribution;  and  the  portion  of  anydistribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respectto employer securities).

For distributions made after December 31, 2007, in addition to an “eligible retirement savings plan” (as defined below), a Participant orBeneficiary may elect to roll over directly an “eligible rollover distribution” to a Roth IRA described in Code Section 408A(b).

(b) Eligible Retirement Savings Plan . An eligible Retirement Savings Plan is an individual retirement account described in Code Section408(a),  an  individual  retirement  annuity  described  in  Code  Section  408(b),  an  annuity  plan  described  in  Code  Section  403(a),  or  aqualified  trust  described  in  Code  Section  401(a),  an  annuity  contract  described  in  Code  Section  403(b)  that  accepts  the  distributee’seligible rollover distribution, or an eligible plan under Code Section 457(b) which is maintained by a state, political subdivision of a state,or an agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferredinto  such plan from this  Plan.  However,  in  the  case  of  an eligible  rollover  distribution to  the  surviving spouse,  an Eligible  RetirementSavings Plan is an individual retirement account or individual retirement annuity.

(c) Distributee .  A  distributee  includes  an  Employee  or  former  Employee.  In  addition,  the  Employee’s  or  former  Employee’s  survivingSpouse  and  the  Employee’s  or  former  Employee’s  Spouse  or  former  Spouse  who  is  the  alternate  payee  under  a  qualified  domesticrelations order, as defined in Code Section 414(p), are distributees with regard to the interest of the Spouse or former Spouse.

(d) Direct rollover . A direct rollover is a payment by the Plan to the eligible Retirement Savings Plan specified by the distributee.

(e) Non-Spouse Beneficiary Rollover Rights .  For distributions after December 31,  2006, a non-spouse beneficiary who is  a “designatedbeneficiary” under Code Section 401(a)(9)(E) and the Regulations thereunder,  by a  direct  trustee-to-trustee transfer  (“direct  rollover”),may roll over all or any portion of his distribution to an Individual Retirement Account (IRA) the beneficiary establishes for purposes ofreceiving  the  distribution.  In  order  to  be  able  to  roll  over  the  distribution,  the  distribution  otherwise  must  satisfy  the  definition  of  an“eligible rollover distribution” under Code Section 401(a)(31). Although a non-spouse beneficiary

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may roll over directly a distribution as provided in Section 6.08(b)(4), the distribution, if made prior to January 1, 2011, is not subject tothe  direct  rollover  requirements  of  Code  Section  401(a)(31)  (including  Code  Section  401(a)(31)(B)),  the  notice  requirements  of  Codesection 402(f)  or  the mandatory withholding requirements of Code Section 3405(c).  If  a  non-spouse beneficiary receives a distributionfrom the Plan, the distribution is not eligible for a 60-day (non-direct) rollover.

If the Participant’s named beneficiary is a trust, the Plan may make a direct rollover to an IRA on behalf of the trust, provided the trustsatisfies the requirements to be a designated beneficiary within the meaning of Code Section 401(a)(9)(E). A non-spouse beneficiary maynot roll over an amount that is a required minimum distribution, as determined under applicable Regulations and other Internal RevenueService  guidance.  If  the  Participant  dies  before  his  required  beginning  date  and  the  non-spouse  beneficiary  rolls  over  to  an  IRA  themaximum amount  eligible  for  rollover,  the  beneficiary  may  elect  to  use  either  the  5-year  rule  or  the  life  expectancy  rule,  pursuant  toRegulation Section 1.401(a)(9)-3, Q&A-4(c), in determining the required minimum.

(f) Participant Notice .  A Participant entitled to an eligible rollover distribution must receive a written explanation of his right to a directrollover, the tax consequences of not making a direct rollover, and, if applicable, any available special income tax elections. The noticemust be provided within the same 30-to-90 day timeframe applicable to the Participant consent notice. The direct rollover notice must beprovided to all Participants, unless the total amount the Participant will receive as a distribution during the calendar year is expected to beless than $200.

6.16 TRANSFER OF ASSETS FROM A MONEY PURCHASE PLAN. Notwithstanding any provision of this Plan to the contrary, to the extentthat  any  optional  form of  benefit  under  this  Plan  permits  a  distribution  prior  to  the  Employee’s  attainment  of  Normal  Retirement  Age,  death,disability,  or  severance  from employment,  and  prior  to  Plan  termination,  the  optional  form of  benefit  is  not  available  with  respect  to  benefitsattributable to assets (including the post-transfer earnings thereon) and liabilities that are transferred, within the meaning of Code Section 414(1),to  this  Plan  from  a  money  purchase  pension  plan  qualified  under  Code  Section  401(a)  (other  than  any  portion  of  those  assets  and  liabilitiesattributable to after-tax voluntary employee contributions or to a direct or indirect rollover contribution).

6.17 CORRECTIVE DISTRIBUTIONS. Nothing in this Article shall preclude the Administrator from making a distribution to a Participant, to theextent  such distribution is  made to correct  a  qualification defect  in accordance with the corrective procedures under any voluntary complianceprogram.

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ARTICLE VIIAMENDMENT, TERMINATION, MERGERS AND LOANS

7.1 AMENDMENT .

(a) General rule on Company amendments . The Company shall have the right at any time to amend this Plan, subject to the limitations ofthis  Section.  However,  any amendment which affects  the rights,  duties  or  responsibilities  of  the Trustee or  Administrator  may only bemade with  the  Trustee’s  or  Administrator’s  written consent.  Any such amendment  shall  become effective  as  provided therein  upon itsexecution.  The  Trustee  shall  not  be  required  to  execute  any  such  amendment  unless  the  amendment  affects  the  duties  of  the  Trusteehereunder. The Company’s board of directors alone, in its settlor capacity, shall have the sole and exclusive right and power to amend,modify, restrict or terminate the investment by Participants in Company Stock through the ESOP.

(b) Impermissible amendments . No amendment to the Plan shall be effective if it authorizes or permits any part of the Trust Fund (otherthan  such  part  as  is  required  to  pay  taxes  and  administration  expenses)  to  be  used  for  or  diverted  to  any  purpose  other  than  for  theexclusive benefit of the Participants or their Beneficiaries or estates, or causes any reduction in the amount credited to the account of anyParticipant, or causes or permits any portion of the Trust Fund to revert to or become property of the Company.

(c) Anti-cutback restrictions . Except as permitted by Regulations (including Regulation Section 1.411(d)-4) or other IRS guidance, no Planamendment or transaction having the effect of a Plan amendment (such as a merger, plan transfer or similar transaction) shall be effectiveif it eliminates or reduces any Section 411(d)(6) protected benefit or adds or modifies conditions relating to Section 411(d)(6) protectedbenefits  which  results  in  a  further  restriction  on  such  benefits  unless  such  “Section  411(d)(6)  protected  benefits”  are  preserved  withrespect to benefits accrued as of the later of the adoption date or effective date of the amendment. The term “Section 411(d)(6) protectedbenefits”  means  benefits  described in  Code Section  411(d)(6)(A),  early  retirement  benefits  and retirement-type  subsidies,  and optionalforms of benefit. An amendment which has the effect of decreasing a Participant’s Account balance with respect to benefits attributable toservice before the amendment shall  be treated as reducing an accrued benefit.  The preceding shall  not apply to a Plan amendment thateliminates  or  restricts  the  ability  of  a  Participant  to  receive  payment  of  his  Account  under  a  particular  optional  form of  benefit  if  theamendment  provides  a  single-sum  distribution  form  that  is  otherwise  identical  to  the  optional  form  of  benefit  being  eliminated  orrestricted. For this purpose, a single-sum distribution form is otherwise identical only if the single-sum distribution form is identical in allrespects  to  the  eliminated  or  restricted  optional  form  of  benefit  (or  would  be  identical  except  that  it  provides  greater  rights  to  theParticipant) except with respect to the timing of payments after commencement.

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7.2 TERMINATION .

(a) Termination of Plan . The Company shall have the right at any time to terminate the Plan by delivering to the Trustee and Administratorwritten notice of such termination. Upon any full or partial termination, all amounts credited to the affected Participants’ Accounts shallbecome one hundred percent (100%) Vested as provided in Section 6.4 and shall not thereafter be subject to forfeiture.

(b) Distribution of assets .  Upon  the  full  termination  of  the  Plan,  the  Company  shall  direct  the  distribution  of  the  assets  of  the  Plan  toParticipants in a manner which is consistent with the provisions of Section 6.5 except that no Participant or spousal consent is required.Distributions to a Participant shall be made in cash or through the purchase of irrevocable nontransferable deferred commitments from aninsurer. Except as permitted by Regulations, the termination of the Plan shall not result in the reduction of Section 411(d)(6) protectedbenefits in accordance with Section 7.1(c).

(c) Abandoned plan .  If  the Company, in accordance with DOL guidance, abandons the Plan, then the Trustee (or Insurer) or other partypermitted to take action as a qualified terminal administrator (QTA), may terminate the Plan in accordance with applicable Department ofLabor and IRS regulations and other guidance.

7.3 MERGER, CONSOLIDATION OR TRANSFER OF ASSETS. This Plan may be merged or consolidated with, or its assets and/or liabilitiesmay  be  transferred  to  any  other  plan  and  trust,  only  if  the  benefits  which  would  be  received  by  a  Participant  of  this  Plan,  in  the  event  of  atermination  of  the  Plan  immediately  after  such  transfer,  merger  or  consolidation,  are  at  least  equal  to  the  benefits  the  Participant  would  havereceived if the Plan had terminated immediately before the transfer, merger or consolidation, and such transfer, merger or consolidation does nototherwise result in the elimination or reduction of any Section 411(d)(6) protected benefits in accordance with Section 7.1(c).

7.4 LOANS TO PARTICIPANTS .

(a) Permitted loans .  The  Trustee  (or  the  Administrator  if  the  Trustee  is  a  nondiscretionary  Trustee  or  if  loans  are  treated  as  Participantdirected investments pursuant to this Plan) may, in the Trustee’s (or, if applicable, the Administrator’s) sole discretion, make Plan loans toParticipants or Beneficiaries under the following circumstances: (1) loans shall be made available to Participants and Beneficiaries on areasonably  equivalent  basis;  (2)  loans  shall  not  be  made  available  to  Highly  Compensated  Employees  in  an  amount  greater  than  theamount that is made available to other Participants and Beneficiaries; (3) loans shall bear a reasonable rate of interest; (4) loans shall beadequately secured; and (5) loans shall provide for periodic repayment over a reasonable period of time. Furthermore, no Plan loan shallexceed a Participant’s Vested interest in the Plan.

(b) Prohibited assignment or pledge . An assignment or pledge of any portion of a Participant’s interest in the Plan and a loan, pledge, orassignment with respect to

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any insurance Contract purchased under the Plan, shall be treated as a Plan loan under this Section.

(c) Loan program . The Administrator shall be authorized to establish a Participant Loan Program to provide for loans under the Plan. TheParticipant Loan Program shall be established in accordance with Department of Labor Regulation Section 2550.408(b)-1(d)(2) providingfor  loans  by  the  Plan  to  parties-in-interest  under  this  Plan,  such  as  Participants  or  Beneficiaries.  In  order  for  the  Administrator  toimplement  such Participant  Loan Program,  a  separate  written  document  forming a  part  of  this  Plan  must  be  adopted,  which documentshall specifically include, but need not be limited to, the following:

(1) the identity of the person or positions authorized to administer the Participant loan program;

(2) a procedure for applying for loans;

(3) the basis on which loans will be approved or denied;

(4) limitations, if any, on the types and amounts of loans offered;

(5) the procedure under the program for determining a reasonable rate of interest;

(6) the types of collateral which may secure a Participant loan; and

(7) the events constituting default and the steps that will be taken to preserve Plan assets in the event such default.

Such Participant Loan Program shall be contained in a separate written document which, when properly executed, is hereby incorporatedby reference and made a part of the Plan. Furthermore, such Participant Loan Program may be modified or amended in writing from timeto time without the necessity of amending this Plan.

(d) Loan default . Notwithstanding anything in this Plan to the contrary, if a Participant or Beneficiary defaults on a Plan loan made pursuantto  this  Section  and  such  loan  is  secured  by  the  Participant’s  interest  in  the  Plan,  then,  to  the  extent  provided  in  the  Participant  loanprogram, a Participant’s interest may be offset by the amount subject to the security to the extent there is a distributable event permittedby the Code or Regulations.

(e) Loans subject to Plan terms .  Notwithstanding  anything  in  this  Section  to  the  contrary,  any  Plan  loans  made  prior  to  the  date  thisamendment and restatement is adopted shall be subject to the terms of the Plan in effect at the time such loan was made.

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ARTICLE VIIITOP-HEAVY

8.1 TOP-HEAVY PLAN REQUIREMENTS .

(a) Top-Heavy requirements .  For  any  Top-Heavy  Plan  Year,  the  Plan  shall  provide  the  special  vesting  requirements  of  Code  Section416(b) pursuant to Section 6.4 of the Plan and the minimum required allocation of Code Section 416(c) pursuant to Section 4.4 of thePlan.

(b) Top-Heavy exemption .  Notwithstanding  the  provisions  of  the  previous  subsection,  the  Top-Heavy  Plan  Year  requirements  of  thisArticle and Code Section 416 shall not apply in any Plan Year in which the Plan consists solely of ADP Test Safe Harbor Contributionswhich meet the requirements of Code Section 401(k)(12), Matching Contributions which meet the requirements of Code Section 401(m)(11) and Elective Deferrals.

8.2 DETERMINATION OF TOP-HEAVY STATUS .

(a) Definition of Top-Heavy Plan . This Plan shall be a Top-Heavy Plan if any of the following conditions exists:

(1) if the “top-heavy ratio” for this Plan exceeds sixty percent (60%) and this Plan is not part of any “required aggregation group” or“permissive aggregation group”;

(2) if this Plan is a part of a “required aggregation group” but not part of a “permissive aggregation group” and the “top-heavy ratio”for the group of plans exceeds sixty percent (60%); or

(3) if this Plan is a part of a “required aggregation group” and part of a “permissive aggregation group” and the “top-heavy ratio” forthe “permissive aggregation group” exceeds sixty percent (60%).

(b) Top-heavy ratio . “Top-heavy ratio” means, with respect to a “determination date”:

(1) If the Employer maintains one or more defined contribution plans (including any simplified employee pension plan (as defined inCode Section 408(k)) and the Employer has not maintained any defined benefit plan which during the 5-year period ending on the“determination  date”  has  or  has  had  accrued  benefits,  the  top-heavy  ratio  for  this  plan  alone  or  for  the  “required  aggregationgroup” or “permissive aggregation group” as appropriate is a fraction, the numerator of which is the sum of the account balancesof all Key Employees as of the “determination date” (including any part of any account balance distributed in the 1-year periodending on the “determination date”)  (5-year period ending on the “determination date” in the case of  a  distribution made for  areason other than severance

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from employment, death or disability and in determining whether the Plan is top-heavy for Plan Years beginning before January1, 2002), and the denominator of which is the sum of all account balances (including any part of any account balance distributedin  the  1-year  period  ending  on  the  “determination  date”)  (5-year  period  ending  on  the  “determination  date”  in  the  case  of  adistribution made for a reason other than severance from employment, death or disability and in determining whether the Plan istop-heavy  for  Plan  Years  beginning  before  January  1,  2002),  both  computed  in  accordance  with  Code  Section  416  and  theRegulations thereunder.

Both the numerator and denominator of the top-heavy ratio are increased to reflect any contribution not actually made as of the“determination date,”  but  which is  required to  be  taken into  account  on that  date  under  Code Section 416 and the  Regulationsthereunder.

(2) If  the  Employer  maintains  one  or  more  defined  contribution  plans  (including  any  simplified  employee  pension  plan)  and  theEmployer  maintains  or  has  maintained  one  or  more  defined  benefit  plans  which  during  the  5-year  period  ending  on  the“determination date” has or has had any accrued benefits, the top-heavy ratio for any “required aggregation group” or “permissiveaggregation  group”  as  appropriate  is  a  fraction,  the  numerator  of  which  is  the  sum  of  account  balances  under  the  aggregateddefined  contribution  plan  or  plans  for  all  Key  Employees,  determined  in  accordance  with  (1)  above,  and  the  present  value  ofaccrued benefits under the aggregated defined benefit plan or plans for all Key Employees as of the “determination date,” and thedenominator  of  which  is  the  sum  of  the  account  balances  under  the  aggregated  defined  contribution  plan  or  plans  for  allparticipants, determined in accordance with (1) above, and the present value of accrued benefits under the defined benefit plan orplans for all participants as of the “‘determination date,” all determined in accordance with Code Section 416 and the Regulationsthereunder. The accrued benefits under a defined benefit plan in both the numerator and denominator of the top-heavy ratio areincreased for any distribution of an accrued benefit made in the 1-year period ending on the “determination date” (5-year periodending on the “determination date” in the case of a distribution made for a reason other than severance from employment, death ordisability and in determining whether the Plan is top-heavy for Plan Years beginning before January 1, 2002).

(3) For purposes of (1) and (2) above, the value of account balances and the present value of accrued benefits will be determined as ofthe most recent “valuation date” that falls within or ends with the 12-month period ending on the “determination date,” except asprovided in Code Section 416 and the Regulations thereunder for the first and second plan years of a defined benefit plan. Theaccount balances and accrued benefits of a participant (i) who is not a Key Employee but who was a Key Employee in a prioryear,

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or (ii) who has not been credited with at least one Hour of Service with any Employer maintaining the plan at any time during the1-year  period  (5-year  period  in  determining  whether  the  Plan  is  top-heavy  for  Plan  Years  beginning  before  January  1,  2002)ending  on  the  “determination  date”  will  be  disregarded.  The  calculation  of  the  top-heavy  ratio,  and  the  extent  to  whichdistributions,  rollovers,  and  transfers  are  taken  into  account  will  be  made  in  accordance  with  Code  Section  416  and  theRegulations  thereunder.  Deductible  employee  contributions  will  not  be  taken  into  account  for  purposes  of  computing  the  top-heavy ratio. When aggregating plans the value of account balances and accrued benefits will be calculated with reference to the“determination dates” that fall within the same calendar year.

The accrued benefit of a participant other than a Key Employee shall be determined under (i) the method, if any, that uniformlyapplies for accrual purposes under all defined benefit plans maintained by the employer, or (ii) if there is no such method, as ifsuch benefit accrued not more rapidly than the slowest accrual rate permitted under the fractional rule of Code Section 411(b)(1)(C).

(4) The calculation of top-heavy ratio, and the extent to which distributions, rollovers, and transfers are taken into account, will bemade in accordance with Code Section 416 and the regulations thereunder.

(c) Determination date . “Determination date” means, for any Plan Year subsequent to the first Plan Year, the last day of the preceding PlanYear. For the first Plan Year of the Plan, “determination date” means the last day of that Plan Year.

(d) Permissive aggregation group . “Permissive aggregation group” means the “required aggregation group” of plans plus any other plan orplans  of  the  Employer  or  any  Affiliated  Employer  which,  when  considered  as  a  group  with  the  required  aggregation  group,  wouldcontinue to satisfy the requirements of Code Sections 401(a)(4) and 410.

(e) Required aggregation group . “Required aggregation group” means: (1) each qualified plan of the Employer or any Affiliated Employerin which at least one Key Employee participates or participated at any time during the Plan Year containing the determination date or anyof the four preceding plan years (regardless of whether the plan has terminated), and (2) any other qualified plan of the Employer or anyAffiliated Employer which enables a plan described in (1) to meet the requirements of Code Sections 401(a)(4) or 410.

(f) Valuation Date . “Valuation date” means the date elected by the Employer as of which account balances or accrued benefits are valuedfor purposes of calculating the “top-heavy ratio.”

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ARTICLE IXEMPLOYEE STOCK OWNERSHIP PLAN PROVISIONS

9.1 ESOP PROVISIONS .  The  ESOP  Allocations  for  all  Participants  shall  be  considered  and  designated  as  an  employee  stock  ownership  plan(collectively referred to as the “ ESOP ”). The purpose of the ESOP is to allocate to Participants and their Beneficiaries an ownership interest inthe Company through distribution of Employer Securities (or the fair market value of Employer Securities) following a Participant’s severancefrom  employment.  Neither  the  Company,  its  officers,  directors,  Employees  or  shareholders,  nor  any  fiduciary  of  the  Plan  shall  have  anyresponsibility  for  the  value  of  any  stock  or  other  securities  of  the  Company  allocated  to  the  Account  of,  or  distributed  to,  any  Participant  orBeneficiary  hereunder;  it  being  understood  that  such  stock  or  securities  may  decline  in  value  or  become  wholly  worthless  due  to  risks  andcircumstances which cannot be foreseen and which may not be within the control of any such person or entities.

9.2 INVESTMENT IN EMPLOYER SECURITIES . A principal purpose of the ESOP is to provide an avenue for Employees to acquire CompanyStock. Accordingly, the Administrator will follow the Participant’s election to invest in Company Stock by taking the Participant’s contributionsmade  to  the  ESOP  in  cash  and  other  cash  received  for  the  ESOP  by  the  Trustee  and  investing  primarily  or  exclusively  in  Company  Stock.Purchases of Company Stock may be made in the open market or,  to the extent permitted by law, by purchases directly from the Company orfrom shareholders of the Company. If Company Stock is not available for purchase, or if the Trustee determines that the purchase of additionalCompany  Stock  is  not  prudent  or  would  not  further  the  purposes  of  the  Plan,  the  Trustee  shall,  to  the  extent  not  inconsistent  with  the  Plan’scontinued tax qualification as an employee stock ownership plan under Code Section 4975(e)(7), invest the assets of the ESOP in securities orinvestments other than Company Stock. The Trustee may maintain reserves in the Plan to provide funds (A) for the payment of expenses from theTrust,  and (B) for distributions in cash. Such reserves may be invested in cash,  savings accounts,  certificates of deposit  and other similar cashequivalent investments, including those of the Trustee, as well as any other authorized investment provided in the Trust. Prior to January 1, 2019,for  accounting  purposes  the  Company Stock and the  cash  reserve  were  combined into  a  unitized  fund Company Stock fund.  All  purchases  ofCompany Stock shall be made at prices, which, in the judgment of the Trustee, do not exceed the fair market value of such Company Stock at thetime of purchase.

9.3 DIVIDENDS ON COMPANY STOCK . Dividends paid by the Company with respect to shares of Company Stock held by the ESOP shall, inthe  discretion  of  the  Company,  be  (i)  paid  in  cash  directly  to  the  Participants  in  the  ESOP  or  their  Beneficiaries,  (ii)  paid  to  the  ESOP  anddistributed in cash to the Participants in the ESOP or their Beneficiaries no later than ninety (90) days after the close of the Plan Year in whichsuch dividends are paid, or (iii) at the election of each Participant in the ESOP or his Beneficiary, either (a) payable as provided in clause (i) or(ii)  above,  or  (b)  paid  to  the  Plan  and  reinvested  in  Company  Stock  in  the  ESOP,  as  provided  in  Code  Section  404(k)  and  accompanyingregulations and guidance. A Participant’s election to receive cash payment of dividends

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on Company Stock as provided in this Section 9.3 shall be made in the manner and time indicated by the Administrator.

Cash dividends received on shares of Company Stock will be allocated to the Participant’s ESOP Allocations in his Account based on the numberof shares of Company Stock held in each such Account, unless the Participant elects to receive such dividends in cash pursuant to this Section.

The Participant shall in all cases be given the opportunity to elect to receive dividend distributions in the form of cash, or have those dividendsreinvested in  the Plan.  If  the Participant  fails  to  specify his  election on or  before the date of  the ex-dividend date,  then the Participant  will  bedeemed to have elected to have those dividends reinvested into his Account within the Plan.

9.4 ESOP DIVERSIFICATION. A Participant may, at his discretion, diversify his ESOP Allocations in his Account at any time in accordance withthe Plan.

Participants shall be provided complete instructions on their ability to diversify Employer Securities in accordance with all requirements of CodeSection 401(a)(35).

9.5 VOTING RIGHTS. Each Participant or Beneficiary shall be entitled to direct the Trustee as to how to vote the shares of Company Stock that areallocated to his Account. The Administrator will direct the Trustee as to the voting of the shares that have been allocated to Participants’ Accountsbut no direction has been received.

9.6 FORMS OF DISTRIBUTION .

(a) Subject  to  the  provisions  of  paragraph  (c),  the  Administrator  may,  in  its  absolute  discretion,  determine  whether  a  Participant’sdistributable Benefit shall be made in the form of Company Stock or in the form of cash.

(b) “Distributable  Benefit”  means  a  Participant’s  total  benefits  in  the  Plan  that  is  determined  based  on  the  number  of  shares  of  CompanyStock  allocated  to  the  Participant’s  Accounts,  and  by  applying  the  value  (if  any)  of  his  ESOP  Allocations  not  invested  in  shares  ofCompany  Stock  towards  the  purchase  of  Company  Stock,  with  the  objective  of  obtaining  the  maximum  number  of  whole  shares  ofCompany Stock for distribution to the Participant by combining any fractional shares so acquired with any fractional shares credited to hisAccounts.

(c) In the event that the Administrator shall determine that a Participant’s Distributable Benefit is to be paid in the form of a cash distribution,the Administrator shall notify the Participant in advance of making such a distribution. The Participant shall have a reasonable period oftime  after  receiving  the  notice,  not  to  exceed  two  weeks  without  Administrator  approval,  in  which  to  elect  instead  to  receive  hisDistributable Benefit in the form of Company Stock.

9.7 PUT OPTION. Solely in the event that a Distributee receives a distribution consisting in whole or in part of Company Stock that at the time ofthe distribution thereof is not

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Freely Tradeable Stock (or which ceases to be Freely Tradeable Stock during the time periods specified below), the distributed Company Stockshall be subject to a put option (“Put Option”) as set forth in this Section.

(a) For purposes of this Article VIII, “Distributee” means:

(1) The  Participant  or  Beneficiary  (including  an  Alternate  Payee  under  certain  circumstances  detailed  herein)  receiving  thedistribution of the Company Stock;

(2) Any other party to whom the stock is transferred by gift or by reason of death; and

(3) The trustee of an individual retirement account (as defined under Code Section 408) or of a tax-qualified retirement plan to whichall  or  any  portion  of  the  distributed  Company  Stock  is  transferred  pursuant  to  a  tax-free  “rollover”  transaction  satisfying  therequirements of Code Section 402.

(b) “Freely  Tradeable  Stock”  means  Company  Stock  that,  at  the  time  of  reference  is  “Publicly  Traded”  as  that  term  is  defined  underRegulation  Section  54.4975-(b)(1)(iv)  and  is  not  subject  to  a  “Trading  Limitation”  as  that  term  is  defined  under  Regulation  Section54.4975-7(b)(10).

(c) During the sixty (60) day period following the date the Company Stock first becomes distributable, the Distributee shall have the right torequire the Company to purchase all or a portion of the distributed Company Stock held by the Distributee. A Distributee shall exercisethis right by giving written notice to the Company of the number of shares of distributed Company Stock that the

Distributee intends to sell to the Company. This notice must be given within the sixty (60) day period following the date the CompanyStock first becomes distributable. The purchase price to be paid for the Company Stock shall be its fair market value determined as of theValuation Date coincident with or immediately preceding the date of the distribution.

(d) If a Distributee does not exercise his Put Option right under paragraph (c), the option right shall temporarily lapse. Upon the expiration ofthe sixty (60) day period following the Accounting Date of the Plan Year in which the sixty (60) day option period expires, the Companyshall provide the non-electing Distributee (if he is then a shareholder of record) with a notice (the “Notice of Value”) indicating the fairmarket value of the Company Stock, determined by an independent appraiser who meets the requirements of Code Section 401(a)(28)(C).During the sixty (60) day period following receipt of the Notice of Value, the Distributee shall have the right to require the Company topurchase all or any portion of the distributed Company Stock with the purchase price based on the amount stated in the Notice of Value. Ifa Distributee fails to exercise his option right under this paragraph with respect to any portion of the distributed Company Stock, no

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further options shall be applicable under this Plan with respect to the stock, and the Company shall have no further purchase obligations.

(e) In the event that a Distributee shall exercise a Put Option, then the Company shall have the option of paying the purchase price of theCompany Stock which is subject to the Put Option (“Option Stock”) under either of the following methods:

(1) A lump sum payment of the purchase price within thirty days after the date upon which the Put Option is exercised (“ExerciseDate”); or

(2) A series of six (6) equal installment payments, with the first payment to be made within thirty days following the Exercise Dateand the five (5) remaining payments to be made on the five (5) anniversary dates of the Exercise Date.

If the Company elects to pay the purchase price of the Option Stock under the installment method, the Company shall, within thirty daysafter the Exercise Date,  give the Distributee the Company’s promissory note for the full,  unpaid balance of the option price. This noteshall provide adequate security, state a rate of interest reasonable under the circumstances, and provide that the full amount of the noteshall accelerate and become due immediately in the event that the Company defaults in the payment of a scheduled installment payment.

(f) The  Put  Option  shall  be  effective  solely  against  the  Company  and  shall  not  obligate  the  Plan  in  any  manner.  The  Plan  may,  with  theCompany’s consent, elect to purchase any Company Stock that otherwise must be purchased by the Company pursuant to a Distributee’sexercise of his Put Option.

(g) Except as is expressly provided above with respect to any distributed Company Stock that is not Freely Tradeable Stock, no Participantshall have any Put Option rights with respect to Company Stock distributed under this Plan, and neither the Company nor this Plan shallhave any obligation whatsoever to purchase any distributed Company Stock from any Participant or other Distributee.

9.8 APPLICATION OF ARTICLE IX TO NON-ESOP ALLOCATION. Notwithstanding anything in the Plan to the contrary, the provisions ofSections 9.4, 9.5, 9.6 and 9.7 of this Article shall apply in full to the Non-ESOP Allocations.

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ARTICLE XMISCELLANEOUS

10.1 PARTICIPANT’S RIGHTS. This  Plan  shall  not  be  deemed  to  constitute  a  contract  between  the  Employer  and  any  Participant  or  to  be  aconsideration or an inducement for the employment of any Participant or Employee. Nothing contained in this Plan shall be deemed to give anyParticipant or  Employee the right  to be retained in the service of the Employer or to interfere with the right  of  the Employer to discharge anyParticipant or Employee at any time regardless of the effect which such discharge shall have upon the Employee as a Participant of this Plan.

10.2 ALIENATION OF BENEFITS .

(a) General rule. Subject to the exceptions provided below, and as otherwise permitted by the Code and the Act, no benefit which shall bepayable to any person (including a Participant or the Participant’s Beneficiary) shall be subject in any manner to anticipation, alienation,sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber,or  charge  the  same  shall  be  void;  and  no  such  benefit  shall  in  any  manner  be  liable  for,  or  subject  to,  the  debts,  contracts,  liabilities,engagements, or torts of any such person, nor shall it be subject to attachment or legal process for or against such person, and the sameshall not be recognized, except to such extent as may be required by law.

(b) Exception for loans. Subsection (a) shall not apply to the extent a Participant or Beneficiary is indebted to the Plan, by reason of a loanmade pursuant to Section 7.4. At the time a distribution is to be made to or for a Participant’s or Beneficiary’s benefit, such proportion ofthe amount to be distributed as shall equal such indebtedness shall be paid to the Plan, to apply against or discharge such indebtedness.Prior  to  making  a  payment,  however,  the  Participant  or  Beneficiary  must  be  given  written  notice  by  the  Administrator  that  suchindebtedness is  to  be so paid in whole or  part  from the Participant’s  Account.  If  the Participant  or  Beneficiary does not  agree that  theindebtedness is a valid claim against the Vested Participant’s Account, the Participant or Beneficiary shall be entitled to a review of thevalidity of the claim in accordance with procedures provided in Sections 2.8 and 2.9.

(c) Exception for QDRO. Subsection (a)  shall  not  apply to a qualified domestic relations order defined in Code Section 414(p),  and thoseother domestic relations orders permitted to be so treated by the Administrator under the provisions of the Retirement Equity Act of 1984.The  Administrator  shall  establish  a  written  procedure  to  determine  the  qualified  status  of  domestic  relations  orders  and  to  administerdistributions under such qualified orders. Further, to the extent provided under a qualified domestic relations order, a former spouse of aParticipant shall be treated as the spouse or surviving spouse for all purposes under the Plan.

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(d) Exception for certain debts to Plan. Subsection (a) shall not apply to an offset to a Participant’s accrued benefit against an amount that theParticipant  is  ordered  or  required  to  pay  the  Plan  with  respect  to  a  judgment,  order,  or  decree  issued,  or  a  settlement  entered  into  inaccordance with Code Sections 401(a)(13)(C) and (D).

With respect to distributions from the Participant’s Pre-Retirement Survivor Annuity Account, if the Participant has a spouse at the timeat which the offset is to be made:

(1) either such spouse has consented in writing to such offset and such consent is witnessed by a notary public or representative of thePlan  (or  it  is  established  to  the  satisfaction  of  a  Plan  representative  that  such  consent  may  not  be  obtained  by  reason  ofcircumstances described in Code Section 417(a)(2)(B)), or an election to waive the right of the spouse to either a qualified jointand  survivor  annuity  or  a  qualified  Pre-Retirement  Survivor  Annuity  is  in  effect  in  accordance  with  the  requirements  of  CodeSection 417(a),

(2) such spouse is ordered or required in such judgment, order, decree or settlement to pay an amount to the Plan in connection with aviolation of fiduciary duties, or

(3) in such judgment, order, decree or settlement, such spouse retains the right to receive the survivor annuity under a qualified jointand survivor annuity provided pursuant to Code Section 401(a)(11)(A)(i) and under a qualified Pre-Retirement Survivor Annuityprovided pursuant to Code Section 401(a)(11)(A)(ii).

10.3 CONSTRUCTION AND INTERPRETATION OF PLAN .

(a) Applicable state laws . This Plan shall be construed and enforced according to the Code, the Act and the laws of the State of Texas, otherthan its laws respecting choice of law, to the extent not pre-empted by Federal law.

(b) Single subsections . This Plan may contain single subsections. The existence of such single subsections shall not constitute scrivener’serrors.

(c) Separate Accounts . Unless otherwise specified by a particular provision, the term “separate account” does not require a separate fund,only a notational entry in a recordkeeping system.

10.4 GENDER AND NUMBER .

(a) Masculine and feminine . Wherever any words are used herein in the masculine, feminine or neuter gender, they shall be construed asthough they were also used in another gender in all cases where they would so apply.

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(b) Singular and plural . Whenever any words are used herein in the singular or plural form, they shall be construed as though they werealso used in the other form in all cases where they would so apply.

10.5 LEGAL ACTION. In  the  event  any  claim,  suit,  or  proceeding  is  brought  regarding  the  Trust  and/or  Plan  established  hereunder  to  which  theTrustee, the Employer or the Administrator may be a party, and such claim, suit, or proceeding is resolved in favor of the Trustee, the Employeror  the  Administrator,  they  shall  be  entitled  to  be  reimbursed  from  the  Trust  Fund  for  any  and  all  costs,  attorney’s  fees,  and  other  expensespertaining thereto incurred by them for which they shall have become liable.

10.6 PROHIBITION AGAINST DIVERSION OF FUNDS .

(a) General rule . Except as provided below and otherwise specifically permitted by law, it shall be impossible by operation of the Plan or ofthe Trust, by termination of either, by power of revocation or amendment, by the happening of any contingency, by collateral arrangementor by any other means, for any part of the corpus or income of any Trust Fund maintained pursuant to the Plan or any funds contributedthereto to be used for, or diverted to, purposes other than the exclusive benefit of Participants or their Beneficiaries.

(b) Mistake of fact . In the event the Employer shall make an excessive contribution under a mistake of fact pursuant to Act Section 403(c)(2)(A),  the  Employer  may  demand  repayment  of  such  excessive  contribution  at  any  time  within  one  (1)-year  following  the  time  ofpayment and the Trustees shall return such amount to the Employer within the one (1) year period. Earnings of the Plan attributable to thecontributions may not be returned to the Employer but any losses attributable thereto must reduce the amount so returned.

(c) Contribution conditioned on deductibility .  Except  as  otherwise  provided  by  a  particular  Plan  provision,  any  contribution  by  theEmployer to the Plan is conditioned upon the deductibility of the contribution by the Employer under the Code and, to the extent any suchdeduction  is  disallowed,  the  Employer  may,  within  one  (1)  year  following  the  final  determination  of  the  disallowance,  whether  byagreement  with  the  Internal  Revenue  Service  or  by  final  decision  of  a  competent  jurisdiction,  demand  repayment  of  such  disallowedcontribution  and  the  Trustee  shall  return  such  contribution  within  one  (1)  year  following  the  disallowance.  Earnings  of  the  Planattributable  to  the  contribution  may  not  be  returned  to  the  Employer,  but  any  losses  attributable  thereto  must  reduce  the  amount  soreturned.

10.7 EMPLOYER’S AND TRUSTEE’S PROTECTIVE CLAUSE. The Employer,  Administrator  and Trustee,  and their  successors,  shall  not  beresponsible for the validity of any Contract issued hereunder or for the failure on the part of the insurer to make payments provided by any suchContract, or for the action of any person which may delay payment or render a Contract null and void or unenforceable in whole or in part.

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10.8 INSURER’S PROTECTIVE CLAUSE. Except as otherwise agreed upon in writing between the Employer and the insurer,  an insurer whichissues any Contracts hereunder shall not have any responsibility for the validity of this Plan or for the tax or legal aspects of this Plan. The insurershall  be  protected  and  held  harmless  in  acting  in  accordance  with  any  written  direction  of  the  Trustee,  and  shall  have  no  duty  to  see  to  theapplication of any funds paid to the Trustee, nor be required to question any actions directed by the Trustee. Regardless of any provision of thisPlan, the insurer shall not be required to take or permit any action or allow any benefit or privilege contrary to the terms of any Contract which itissues hereunder, or the rules of the insurer.

10.9 RECEIPT AND RELEASE FOR PAYMENTS. Any payment to any Participant, the Participant’s legal representative, Beneficiary, or to anyguardian or committee appointed for such Participant or Beneficiary in accordance with the provisions of the Plan, shall, to the extent thereof, bein full satisfaction of all claims hereunder against the Trustee and the Employer.

10.10 ACTION BY THE EMPLOYER. Whenever  the  Employer  under  the  terms of  the  Plan  is  permitted  or  required  to  do  or  perform any act  ormatter or thing, it shall be done and performed by a person duly authorized by its legally constituted authority.

10.11 NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY. The  named  Fiduciaries  of  this  Plan  are  (1)  the  Company,  (2)  theAdministrator,  (3)  the  Trustee  and  (4)  any  Investment  Manager  appointed  hereunder.  The  named  Fiduciaries  shall  have  only  those  specificpowers,  duties,  responsibilities,  and  obligations  as  are  specifically  given  them  under  the  Plan  including,  but  not  limited  to,  any  agreementallocating or delegating their responsibilities, the terms of which are incorporated herein by reference. In general, the Employer shall have the soleresponsibility for making the contributions provided for under Section 4.1; and the Company shall have the authority to appoint and remove theTrustee and the Administrator; to formulate the Plan’s funding policy and method; and to amend or terminate, in whole or in part, the Plan. TheAdministrator shall have the sole responsibility for the administration of the Plan, including, but not limited to, the items specified in Article II ofthe  Plan,  as  the  same  may  be  allocated  or  delegated  thereunder.  The  Administrator  shall  act  as  the  named  Fiduciary  responsible  forcommunicating  with  the  Participant  according  to  the  Participant  Direction  Procedures.  The  Trustee  shall  have  the  sole  responsibility  ofmanagement of the assets held under the Trust, except to the extent directed pursuant to Article II or with respect to those assets, the managementof  which has  been assigned to  an Investment  Manager,  who shall  be solely responsible  for  the management  of  the assets  assigned to  it,  all  asspecifically provided in the Plan. Each named Fiduciary warrants that any directions given, information furnished, or action taken by it shall be inaccordance with the provisions of the Plan, authorizing or providing for such direction, information or action. Furthermore, each named Fiduciarymay rely upon any such direction, information or action of another named Fiduciary as being proper under the Plan, and is not required under thePlan to inquire into the propriety of any such direction, information or action. It is intended under the Plan that each named Fiduciary shall beresponsible for the proper exercise of its own powers, duties, responsibilities and obligations under the Plan as specified or allocated herein. Nonamed Fiduciary shall guarantee the Trust Fund in any manner against investment loss or

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depreciation in asset value. Any person or group may serve in more than one Fiduciary capacity.

10.12 HEADINGS. The  headings  and  subheadings  of  this  Plan  have  been  inserted  for  convenience  of  reference  and  are  to  be  ignored  in  anyconstruction of the provisions hereof.

10.13 APPROVAL BY INTERNAL REVENUE SERVICE. Notwithstanding  anything  herein  to  the  contrary,  if,  pursuant  to  an  application  forqualification filed by or on behalf of the Plan by the time prescribed by law for filing the Company’s return for the taxable year in which the Planis  adopted,  or  such  later  date  that  the  Secretary  of  the  Treasury  may  prescribe,  the  Commissioner  of  Internal  Revenue  Service  or  theCommissioner’s delegate should determine that the Plan does not initially qualify as a tax-exempt plan under Code Sections 401 and 501, andsuch determination is  not  contested,  or  if  contested,  is  finally upheld,  then if  the Plan is  a  new plan,  it  shall  be void ab initio and all  amountscontributed to the Plan by the Company, less expenses paid, shall be returned within one (1) year after the date the initial qualification is denied,and the Plan shall terminate, and the Trustee shall be discharged from all further obligations. If the disqualification relates to an amended plan,then the Plan shall operate as if it had not been amended.

10.14 ELECTRONIC MEDIA. The Administrator may use telephonic or electronic media to satisfy any notice requirements required by this Plan, tothe extent permissible under regulations (or other generally applicable guidance). In addition, a Participant’s consent to an immediate distributionmay be provided through telephonic or electronic means, to the extent permissible under regulations (or other generally applicable guidance). TheAdministrator  also  may use  telephonic  or  electronic  media  to  conduct  plan  transactions  such as  enrolling  Participants,  making (and changing)deferral elections, electing (and changing) investment allocations, applying for Plan loans, and other transactions, to the extent permissible underregulations (or other generally applicable guidance).

10.15 PLAN CORRECTION. The Administrator in conjunction with the Company may undertake such correction of Plan errors as the Administratordeems necessary, including correction to preserve tax qualification of the Plan under Code Section 401(a) or to correct a fiduciary breach underthe  Act.  Without  limiting  the  Administrator’s  authority  under  the  prior  sentence,  the  Administrator,  as  it  determines  to  be  reasonable  andappropriate, may undertake correction of Plan document, operational, demographic and employer eligibility failures under a method described inthe Plan or under EPCRS or any successor program to EPCRS.

The Administrator, as it  determines to be reasonable and appropriate, also may undertake or assist the appropriate Fiduciary or Plan official inundertaking correction of a fiduciary breach, including correction under the VFC or any successor program to VFC. For example, to correct anoperational  error,  the  Administrator  may  require  the  Trustee  to  distribute  Elective  Deferrals  or  Vested  Matching  Contributions,  includingearnings, from the Plan where such amounts result from an operational error other than a failure of Code Section 415 or Code Section 402(g).

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10.16 UNIFORMITY. All provisions of this Plan shall be interpreted and applied in a uniform, nondiscriminatory manner. In the event of any conflictbetween the terms of this Plan and any Contract purchased hereunder, the Plan provisions shall control.

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ARTICLE XIPARTICIPATING EMPLOYERS

11.1 ADOPTION BY OTHER EMPLOYERS. Notwithstanding anything herein to the contrary, with the consent of the Employer and Trustee, anyother corporation or entity, whether an Affiliated Employer or not, may adopt this Plan and all of the provisions hereof, and participate herein andbe known as a Participating Employer, by a properly executed document evidencing said intent and will of such Participating Employer.

11.2 REQUIREMENTS OF PARTICIPATING EMPLOYERS .

(a) Same Trustee for all. Each such Participating Employer shall be required to use the same Trustee as provided in this Plan.

(b) Holding  and  investing  assets.  The  Trustee  may,  but  shall  not  be  required  to,  commingle,  hold  and  invest  as  one  Trust  Fund  allcontributions made by Participating Employers, as well as all increments thereof

(c) Payment of expenses. Unless the Employer otherwise directs, any expenses of the Plan which are to be paid by the Employer or borne bythe  Trust  Fund shall  be  paid  by  each  Participating  Employer  in  the  same proportion  that  the  total  amount  standing  to  the  credit  of  allParticipants employed by such Employer bears to the total standing to the credit of all Participants.

11.3 DESIGNATION OF AGENT. Each Participating Employer shall be deemed to be a party to this Plan; provided, however, that with respect toall  of  its  relations  with  the  Trustee  and  Administrator  for  the  purpose  of  this  Plan,  each  Participating  Employer  shall  be  deemed  to  havedesignated  irrevocably  the  Employer  as  its  agent.  Unless  the  context  of  the  Plan  clearly  indicates  the  contrary,  the  word  “Employer”  shall  bedeemed to include each Participating Employer as related to its adoption of the Plan.

11.4 EMPLOYEE TRANSFERS. In the event an Employee is transferred between Participating Employers, accumulated service and eligibility shallbe carried with the Employee involved. No such transfer shall effect a termination of employment hereunder, and the Participating Employer towhich the Employee is  transferred shall  thereupon become obligated hereunder with respect to such Employee in the same manner as was theParticipating Employer from whom the Employee was transferred.

11.5 PARTICIPATING EMPLOYER CONTRIBUTION AND FORFEITURES. Any contribution or Forfeiture subject to allocation during eachPlan Year shall be allocated only among those Participants of the Employer or Participating Employers making the contribution or by which theforfeiting Participant was employed. However, if the contribution is made, or the forfeiting Participant was employed, by an Affiliated Employer,such  contribution  or  Forfeiture  shall  be  allocated  among  all  Participants  of  all  Participating  Employers  who  are  Affiliated  Employers  inaccordance with the provisions of this Plan. On the basis of the information furnished by the Administrator, the Trustee shall keep separate booksand records concerning the affairs of each Participating Employer hereunder and as to the accounts and credits of the Employees of each

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Participating  Employer.  The  Trustee  may,  but  need  not,  register  Contracts  so  as  to  evidence  that  a  particular  Participating  Employer  is  theinterested Employer hereunder, but in the event of an Employee transfer from one Participating Employer to another, the employing ParticipatingEmployer shall immediately notify the Trustee thereof.

11.6 AMENDMENT. Any Participating Employer that is an Affiliated Employer hereby authorizes the Company to make amendments on its behalf,unless otherwise agreed among all affected parties. If a Participating Employer is not an Affiliated Employer, then amendment of this Plan by theCompany at any time when there shall be a Participating Employer shall, unless otherwise agreed to by the affected parties, only be by the writtenaction of each and every Participating Employer and with the consent of the Trustee where such consent is necessary in accordance with the termsof this Plan.

11.7 DISCONTINUANCE OF PARTICIPATION. Any Participating Employer shall be permitted to discontinue or revoke its participation in thePlan at any time. At the time of any such discontinuance or revocation, satisfactory evidence thereof and of any applicable conditions imposedshall  be delivered to  the Trustee.  The Company shall  have the  right  to  discontinue or  revoke the  participation in  the  Plan of  any ParticipatingEmployer  by  providing  forty-five  (45)  days’  notice  to  such  Participating  Employer.  The  Trustee  shall  thereafter  transfer,  deliver  and  assignContracts  and  other  Trust  Fund  assets  allocable  to  the  Participants  of  such  Participating  Employer  to  such  new  Trustee  as  shall  have  beendesignated by such Participating Employer,  in the event that  it  has established a separate qualified retirement plan for its  employees provided,however, that no such transfer shall be made if the result is the elimination or reduction of any Section 411(d)(6) protected benefits as describedin Section 7.1(e). If a separate plan has not been established, at the time of such continuance or revocation for whatever reason, the assets andliabilities, Contracts and other Trust Fund assets allocable to such Participating Employer’s participation in this Plan shall be spun off pursuant toCode Section 414(l) and such spun-off assets shall constitute a retirement plan of the Participating Employer with such Participating Employerbecoming  sponsor  and  the  individual  who  has  signed  the  Supplemental  Participation  Agreement  on  behalf  of  the  Participating  Employerbecoming  Trustee  for  this  purpose.  Such  individual  shall  agree  to  this  appointment  by  virtue  of  signing  the  Supplemental  ParticipationAgreement. If such individual is no longer an Employee of the Participating Employer, then the Participating Employer shall appoint a Trustee. Ifno successor is designated, the Trustee shall retain such assets for the Employees of said Participating Employer pursuant to the provisions of theTrust. In no such event shall any part of the corpus or income of the Trust Fund as it relates to such Participating Employer be used for or divertedfor purposes other than for the exclusive benefit of the Employees of such Participating Employer.

11.8 ADMINISTRATOR’S AUTHORITY. The Administrator shall have authority to make any and all necessary rules or regulations, binding uponall Participating Employers and all Participants, to effectuate the purpose of this Article.

11.9 PROVISIONS APPLIED SEPARATELY (OR JOINTLY) FOR PARTICIPATING NON-AFFILIATED EMPLOYERS .

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(a) Separate status . The Plan Administrator will apply the definition of Compensation and perform the tests listed in this Section, separatelyfor each Participating Employer other than an Affiliated Employer of such Participating Employer. For this purpose, the Employees ofeach Participating Employer (and its  Affiliated Employers),  and their  allocations and accounts,  shall  be treated as though they were inseparate plan. Any correction action, such as additional contributions or corrective distributions, shall only affect the Employees of theParticipating Employer (and its Affiliated Employers, if any). The tests subject to this separate treatment are:

(1) Nondiscrimination testing as described in Code Section 401(a)(4) and the applicable Regulations.

(2) Coverage testing as described in Code Section 410(b) and the Regulations.

(3) Status as a Highly Compensated Employee.

(b) Joint status . The following tests shall be performed for the Plan as whole, without regard to employment by a particular ParticipatingEmployer:

(1) Applying the annual addition limitation in Section 4.5, including the related Compensation definition.

(2) Applying the Code Section 402(g) limitation in Section 4.2.

(3) Applying the limit on Catch-Up Contributions in Section 4.2.

11.10 TOP-HEAVY APPLIED SEPARATELY FOR PARTICIPATING NON-AFFILIATED EMPLOYERS. The Plan will apply the Top-HeavyPlan provisions separately to each Participating Employer other  than an Affiliated Employer of such Participating Employer.  The Plan will  beconsidered separate plans for each Participating Employer and its Employees for purposes of determining whether such a separate plan is top-heavy  under  Section  8.1  or  is  entitled  to  the  exemption  described  in  such  Section.  For  purposes  of  applying  this  Article  to  a  ParticipatingEmployer, the Participating Employer and any entity which is an Affiliated Employer to that Participating Employer shall be the “Employer” forpurposes  of  Section  8.1,  and  the  terms  “Key  Employee”  and  “Non-Key  Employee”  shall  refer  only  to  the  Employees  of  that  ParticipatingEmployer and/or its Affiliated Employers. If such a Participating Employer’s separate plan is top-heavy, then:

(a) Highest contribution rate . The Plan Administrator shall determine the highest Key Employee contribution rate under Section 4.4(g) byreference to the Key Employees and their allocations in the separate plan of that Participating Employer;

(b) Top-Heavy minimum allocation .  The Plan Administrator  shall  determine the amount  of  any required top-heavy minimum allocationseparately for that separate plan under Section 4.4(g); and

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(c) Plan which will satisfy . The Participating Employer shall make any additional contributions Section 4.4(g) requires.

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IN WITNESS WHEREOF, Oceaneering International, Inc. has caused these presents to be executed by its duly authorized officers in a number of

copies, all of which shall constitute one and the same instrument, which may be sufficiently evidenced by any executed copy thereof, this  25th  day of

   February    , 2019, but effective as of January 1, 2019.

OCEANEERING INTERNATIONAL, INC.

By /S/ DAVID K. LAWRENCE    Name: David K. Lawrence    Title: Senior Vice President, General    

Counsel and Secretary    ATTEST:

/S/ KATY L. BRADLEY    Name: Katy L. Bradley    

Active 38842998.5      Signature PageOceaneering Retirement Investment Plan, as Amended and Restated January 1, 2019

OCEANEERING RETIREMENT INVESTMENT PLAN

Appendix A

As of January 1, 2019, the following entities are Participating Employers in the Plan:

• Grayloc Products, L.L.C.• Nauticos Corporation• Oceaneering Services S. de R.L. de C.V.• Reflange, Inc.• Oceaneering Asset Integrity, Inc.• Norse Cutting & Abandonment, Inc.• Oceaneering Mobile Workforce, LLC• C&C Technologies, Inc.

Active 38842998.5      A-1

Exhibit 10.32

OCEANEERING INTERNATIONAL, INC.CHANGE OF CONTROL PLAN(Effective as of November 14, 2018)

ARTICLE I GENERAL

The  provisions  of  this  Plan  shall  be  effective  as  of  November  14,  2018  and  shall  remain  in  effect,  subject  to  the  right  of  the  Board  or  theCommittee to amend or terminate this Plan at any time pursuant to Section 6.5. The rights, if any, of any person hereunder shall be determined pursuant tothis Plan as in effect on the date such person ceases to be an employee of the Company, unless a subsequently adopted provision of this Plan is applicableto such person in accordance with the provisions of Section 6.5.

ARTICLE II DEFINITIONS AND USAGE

2.1      Definitions . Wherever used in this Plan, the following words and phrases shall have the meaning set forth below unless the context plainlyrequires a different meaning:

(a)     “ BaseSalary” means, with respect to a Participant, such Participant’s highest annual salary or annualized wages, as applicable, ineffect during the Effective Period (or such portion thereof during which the Participant was employed by the Company).

(b)     “ BenefitPlans” means, with respect to a Participant, the Fiscal Year Bonus Plan, the SERP, any thrift plan, bonus or incentiveplan,  stock  option  or  stock  accumulation  plan,  pension  plan  or  medical,  disability,  accident  or  life  insurance  plan,  program  or  policy  of  theCompany that is intended to benefit its employees who are similarly situated to such Participant, as applicable.

(c)     “ Board” means the Board of Directors of Oceaneering.

(d)     “ COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985.

(e)     “ COBRAMultiple” means (i) “24” for a Tier 1 Participant, (ii) “12” for a Tier 2 Participant; and (iii) “6” for a Tier 3 Participant.No COBRA Multiple is provided under this Plan for a Tier 4 Participant.

(f)     “ COBRAPremium” means the monthly premium for COBRA continuation coverage under Section 4980B of the Code for theCompany’s medical, dental and vision plans in which a Participant was entitled to participate immediately prior to the Participant’s TerminationDate (or, if no such coverage is offered by the Company to similarly situation employees as of his or her Termination Date, then such monthlyCOBRA premium in effect immediately prior to the Change of Control Effective Date).

(g)     “ Cause” means, with respect to a Participant, Oceaneering’s determination that such Participant:

(i)     has committed a material breach of any of his or her obligations under any written agreement with the Company;

Change of Control Plan    Page 1

(ii)         has  committed  a  material  violation  of  any  of  the  Company’s  policies,  procedures,  rules  and  regulations  applicable  toemployees generally or to employees at his or her grade level, in each case, as they may be amended from time to time in the Company’sdiscretion;

(iii)     has failed to perform, in any material respect, his or her duties or responsibilities to the Company (other than as a result ofphysical or mental illness or injury);

(iv)     has committed fraud, theft, embezzlement or misappropriation of funds or other assets of the Company; or

(v)     has been convicted of, entered a plea of guilty or no-contest to, or received adjudicated probation or deferred adjudication inconnection  with,  a  crime  involving  fraud,  dishonesty  or  moral  turpitude  or  any  felony  (or  crime  of  similar  import  outside  the  UnitedStates);

provided,however, that, if the Participant is a party to an employment agreement with the Company or its affiliate (an “ EmploymentAgreement”) at  the  time of  his  or  her  termination of  employment  with  the  Company and such Employment  Agreement  contains  a  different  definition of“cause” (or any derivation thereof), the definition in such Employment Agreement will control for purposes of this Agreement.

(h)     “ ChangeofControl” shall have the meaning given such term under the Second Amended and Restated 2010 Incentive Plan ofOceaneering International,  Inc.,  as the same may be amended from time to time to,  but  not  on or after,  the Change of Control  Effective Date;provided, however ,  that,  if  the  stockholders  of  Oceaneering  shall  have  adopted  or  approved  one  or  more  other  long-term  incentive  planssubsequent to the effective date of this Plan (as provided above) and prior to, but not on or after, the Change of Control Effective Date, the term“Change of Control” shall have the meaning given such term in the most recent such subsequently adopted or approved long-term incentive planwhich defines such term. Notwithstanding the foregoing, in order for any event or circumstance to constitute a Change of Control under this Plan,such  event  or  circumstance  must  be  an  event  or  circumstance  described  in  Section  409A(a)(2)(A)(v)  of  the  Code  or  the  related  TreasuryRegulations.

(i)     “ ChangeofControlEffectiveDate” means the first date as of which a Change of Control shall have occurred.

(j)     “ Code” means the Internal Revenue Code of 1986, as amended.

(k)     “ Committee” means the Compensation Committee of the Board or such other committee of the Board as may be designated by theBoard, from time to time, to administer this Plan.

(l)     “ Company” means Oceaneering and its Subsidiaries.

(m)     “ Disability” means, with respect to any Participant, such Participant’s continuing full-time absence from his or her duties with theCompany  for  90  days  or  longer  as  a  result  of  physical  or  mental  incapacity,  which  absence  is  anticipated  to  extend  for  90  additional  days  orlonger, with such need for absence and the anticipated duration to be determined solely by a medical physician

Change of Control Plan    Page 2

of such Participant’s choice who is approved by Oceaneering, which approval shall not be unreasonably withheld.

(n)     “ EffectivePeriod” means the period beginning on the Effective Period Commencement Date and ending on the Effective PeriodConclusion Date.

(o)     “ EffectivePeriodCommencementDate” means the date that is 180 days prior to the Change of Control Effective Date.

(p)     “ EffectivePeriodConclusionDate” means the second anniversary of the Change of Control Effective Date.

(q)     “ EligibleEmployee” means an Employee who is either (i) a Senior Officer in the case of a Tier 1 Participant or Tier 2 Participant,(ii) an Officer in the case of a Tier 3 Participant or (iii) a Key Employee in the case of a Tier 4 Participant; provided,howeverthat any Employeewho  has  an  individual  agreement  with  the  Company  at  any  time  providing  for  change‑of‑control  benefits  (other  than  one  or  more  awardagreements under one or more long-term incentive plans) shall not be an Eligible Employee (or a Participant).

(r)     “ Employee” means an individual who is an employee of the Company.

(s)     “ ExchangeAct” means the Securities Exchange Act of 1934, as amended.

(t)     “ FiscalYearBonusPlan” means for each year, Oceaneering’s fiscal year bonus plan, or any other plan adopted by the Board orthe Committee which provides for the payment of additional incentive compensation or equity consideration on an annual basis to Senior Officerscontingent upon Oceaneering’s performance, including stock performance or results of operations for that specific year.  

(u)     “ GoodReason” means, with respect to any Participant, any of the following:

(i)     a material reduction in the authority, duties or responsibilities of such Participant from those applicable to such Participantimmediately prior to the Change of Control Effective Date, except as a result of such Participant’s death or due to Disability;

(ii)     a material reduction by the Company in such Participant’s annual base salary or annualized wages, as applicable, SERP (orequivalent),  annual  bonus  opportunity  or  aggregate  long-term  incentive  compensation  in  effect  immediately  prior  to  the  Change  ofControl Effective Date and as may subsequently be increased thereafter;

(iii)         (A)  the  failure  by  the  Company  to  continue  in  effect  any  Benefit  Plans  in  which  such  Participant  was  participatingimmediately prior to the Change of Control Effective Date, other than as a result of the expiration or an amendment of any such BenefitPlan in accordance with its terms, or (B) the taking of any action, or failure to act, by the Company which would materially reduce suchParticipant’s  benefits  under  any  of  the  Benefit  Plans  in  which  such  Participant  was  participating  or  deprive  such  Participant  of  anymaterial benefit,  including a severance plan benefit,  enjoyed by such Participant,  immediately prior to the Change of Control EffectiveDate (except as proposed by such Participant to the Company);

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(iv)        the  relocation  of  the  principal  place  of  such Participant’s  employment  as  of  the  Change of  Control  Effective  Date  to  alocation at  least  50 miles  further  from such Participant’s  principal  residence without  such Participant’s  express  written consent,  unlesssuch relocation is agreed to in writing by the Participant, provided,however, that a relocation scheduled and communicated in writing bythe Company to the Participant prior to the Change of Control Effective Date shall not constitute Good Reason under this Clause (iv); or

(v)     the failure by Oceaneering upon a Change of Control to obtain the assumption of this Plan by any Successor (other than byoperation of law);

provided, however ,  that  no  later  than  30  days  after  learning  of  the  action  (or  inaction)  described  herein  as  the  basis  for  a  termination  ofemployment for Good Reason, a Participant shall advise Oceaneering in writing that the action (or inaction) constitutes grounds for a terminationof  his  or  her  employment  for  Good  Reason,  in  which  event  Oceaneering  shall  have  30  days  (the  “ CurePeriod”)  to  correct  such  action  (orinaction). If such action (or inaction) is not corrected prior to the end of the Cure Period, then the affected Participant may terminate his or heremployment  with  the  Company  for  Good  Reason  within  the  30-day  period  following  the  end  of  the  Cure  Period  by  giving  written  notice  toOceaneering.  If  such  action  (or  inaction)  is  corrected  before  the  end  of  the  Cure  Period,  then  the  affected  Participant  shall  not  be  entitled  toterminate his or her employment for Good Reason as a result of such action (or inaction); provided,further,that if the Participant is a party to anEmployment  Agreement  at  the  time of  his  or  her  termination  of  employment  with  the  Company and such Employment  Agreement  contains  adifferent definition of “good reason” (or any derivation thereof), the definition in such Employment Agreement will control for purposes of thisAgreement.

(v)     “ KeyEmployee” means an Employee, other than an Officer, whose participation in this Plan (i) has been proposed in writing bythe Chief Executive Officer to the Committee on the basis that such Employee’s continued employment, engagement and focus are essential tothe Company’s performance, including during the pendency of any proposed Change of Control transaction, and (ii) approved by the Committee.

(w)      “ Oceaneering” means Oceaneering International, Inc., a Delaware corporation.

(x)     “ Officer” means an officer of Oceaneering elected or appointed from time to time pursuant to the Amended and Restated Bylawsof Oceaneering, as the same may be amended from time to time.

(y)         “  Participant”  means  an  Eligible  Employee  who  satisfies  the  participation  requirements  in  Article  III  of  this  Plan.  For  theavoidance of doubt, an individual must be a Participant as of the individual’s Termination Date in order to be eligible for the Severance Benefitsunder this Plan.

(z)         “  Participation Agreement”  means  a  written  or  electronic  document,  in  the  form  and  manner  prescribed  by  the  Committee,executed by an Officer or Key Employee, pursuant to which such Officer or Key Employee (i) acknowledges he or she has been designated to bea  Participant  and  agrees  to  the  terms  and  conditions  of  this  Plan  and  (ii)  accepts  and  acknowledges  that  he  or  she  is  subject  to  the  restrictivecovenants set forth in Article V of this Plan.

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(aa)     “ Person” means any individual, corporation, partnership, group (as such term is used in Rule 13d‑5 under the Exchange Act),association  or  other  person  (as  such  term  is  used  in  Sections  13(d)  and  14(d)  of  the  Exchange  Act,  and  the  related  rules  and  regulationspromulgated thereunder); provided,however, that, as used in the definition of “Change of Control” and “Change of Control Effective Date,” theterm “Person” shall not be deemed to refer to Oceaneering, any wholly owned Subsidiary or any Benefit Plans sponsored by Oceaneering or anysuch Subsidiary.

(bb)     “ Plan” means this Oceaneering International, Inc. Change of Control Plan, as amended from time to time.

(cc)     “ SeniorOfficer” means an Officer who has been designated by the Board as an executive officer of Oceaneering, including anySenior Vice President, the President and the Chief Executive Officer of Oceaneering.

(dd)     “ SERP” means Oceaneering’s Supplemental Executive Retirement Plan, as the same may be amended or modified to, but not onor after, the Change of Control Effective Date.

(ee)     “ SeveranceBenefits” has the meaning ascribed thereto in Section 4.3.

(ff)     “ SeveranceMultiple” is (i) “3” for a Tier 1 Participant, (ii) “2” for a Tier 2 Participant; and (iii) “1.5” for a Tier 3 Participant or(iv) “1” for a Tier 4 Participant.

(gg)     “ SeverancePayment” has the meaning ascribed thereto in Section 4.3(a).

(hh)     “ SeverancePeriod” means 12 months.

(ii)        “  Subsidiary” means (i)  in  the case of  a  corporation,  any corporation of  which Oceaneering directly  or  indirectly  owns sharesrepresenting 50% or more of the combined voting power of the shares of all classes or series of capital stock of such corporation which have theright to vote generally on matters submitted to a vote of the stockholders of such corporation, and (ii) in the case of a partnership or other businessentity  not  organized  as  a  corporation,  any  such  business  entity  of  which  Oceaneering  directly  or  indirectly  owns  50% or  more  of  the  voting,capital or profits interests (whether in the form of partnership interests, membership interests or otherwise).

(jj)        “ TargetBonus” means, with respect to a Participant, such Participant’s target annual bonus opportunity under the Fiscal YearBonus Plan for the year in which such Participant’s Termination Date occurs, or if no such target opportunity has been established for such year,such Participant’s most recent target annual bonus opportunity.

(kk)     “ TerminationDate” means, with respect to a Participant, the date such Participant’s employment with the Company terminates,which date is the final date of such Participant’s employment with the Company; provided,however, that such termination is a “Separation fromService”  (within  the  meaning  of  Code  Section  409A  and  Treasury  Regulation  §  1.409A-1(h)(3)  (or  any  successor  regulations  or  guidancethereto)).

(ll)     “ Tier1Participant” means a Participant who is a Senior Officer holding the position of Chief Executive Officer or President, orother Senior Officer designated as a Tier 1 Participant by the Committee.

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(mm)     “ Tier2Participant” means a Participant who is a Senior Officer (other than a Senior Officer who has been designated as a Tier1 Participant by the Committee).

(nn)     “ Tier3Participant” means a Participant who is an Officer (other than a Senior Officer) holding the position of Vice President incharge of a function, business, business segment or business unit of the Company designated by the Committee.

(oo)     “ Tier4Participant” means a Participant who is a Key Employee designated as a Tier 4 Participant by the Committee.

(pp)     “ VotingSecurities” means, with respect to any corporation or other business enterprise, those securities which under ordinarycircumstances entitle the holder thereof to vote for the election of directors or others charged with comparable duties under applicable law.

ARTICLE III PARTICIPATION

3.1      Participation . Subject to Section 3.2, a Participant in this Plan shall be an Eligible Employee who, prior to the Change of Control EffectiveDate:

(i)     is a (A) Tier 1 Participant, (B) Tier 2 Participant, (C) Tier 3 Participant, or (D) Tier 4 Participant; and

(ii)     timely executed and returned to the Committee (or its delegate) the Participation Agreement.

An  Eligible  Employee  shall  not  be  a  Participant  in  this  Plan  if  he  or  she  fails  to  timely  execute  and  return  to  the  Committee  (or  its  delegate)  theParticipation Agreement. For the avoidance of doubt, an individual who is not a Participant as of the individual’s Termination Date shall not be eligiblefor Severance Benefits under this Plan.

3.2      Change in Position and Cessation of Participant Status .

(a)     A Participant shall cease to be a Participant if

(i)     his or her Termination Date (A) does not occur during the Effective Period or (B) occurs during the Effective Period but forreasons other than those described in Section 4.2;

(ii)     he or she enters into an individual agreement with the Company providing for change‑of‑control benefits (other than one ormore  award  agreements  under  one  or  more  long-term  incentive  plans)  after  becoming  a  Participant,  effective  as  the  date  of  suchindividual agreement (and shall not be an Eligible Employee while such individual agreement is in effect); or

(iii)     he or she ceases to be an Eligible Employee prior to or after the Effective Period.

(b)     During the Effective Period, neither the Board nor the Committee may (i) amend or change the definition of a Tier 1 Participant,Tier 2 Participant, Tier 3 Participant or Tier 4

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Participant or take any other action that would reduce or eliminate the potential Severance Benefits of any Participant (including by removing orchanging  a  Participant’s  status  as  an  Officer  or  Key  Employee).  Other  than  during  the  Effective  Period,  (i)  the  Committee  shall  have  thediscretion and ability to modify the Tier 1 Participant, Tier 2 Participant, Tier 3 Participant and Tier 4 Participant definitions, from time to timeand at any time, including modifications to change positions or designate new positions, and (ii) the Board or Oceaneering or any Subsidiary shallhave the discretion and ability to change, from time to time and at any time, an Employee’s job title or position, even if the change in clause (i)or (ii) above results in such individual ceasing to be a Senior Officer, an Officer or a Key Employee and, as a result, such individual ceases to be aParticipant or decreases the Severance Benefits such individual may be eligible to receive under this Plan. In such event, the Committee (or itsdelete) shall notify the individual of the change and, in its discretion, may require the Participant to execute a new Participant Agreement (withsuch new Participation Agreement replacing and superseding the Participant’s prior Participation Agreements).

ARTICLE IV SEVERANCE BENEFITS

4.1      General .

(a)     If a Participant’s employment is terminated as described in Section 4.2, such Participant shall be entitled to the Severance Benefits,subject to such Participant’s execution and timely delivery of an effective and unrevoked waiver and release of claims against the Company andother related parties (as designated by the Committee, from time to time), with such release to be in the form as determined by the Committee inits sole discretion. A Participant shall  not be entitled to the Severance Benefits under any circumstance not described in Section 4.2 or if  suchParticipant fails to sign and timely deliver an effective and unrevoked release of claims against the Company and such other related parties.

(b)        A  Participant’s  right  to  Severance  Benefits  shall  be  further  conditioned  upon  his  or  her  compliance  with  the  provisions  of  theParticipation Agreement signed by such Participant and delivered to the Company. In the event a Participant fails to comply with the provisionsof his or her Participation Agreement, such Participant shall repay to the Company any payments received pursuant to Section 4.3, and no furtherbenefits shall be payable under this Plan.

4.2      Termination without Cause or for Good Reason . During the Effective Period, if a Participant’s employment is terminated by the Companywithout Cause or by such Participant for Good Reason either (i) prior to the Change of Control Effective Date, unless it is reasonably demonstrated by theCompany that such termination of such Participant’s employment (a) was not at the request of a third party who has taken steps reasonably calculated toeffect the Change of Control and (b) otherwise did not arise in connection with or anticipation of the Change of Control or (ii) on or after the Change ofControl  Effective Date,  and if  (and only if)  such Change of Control  occurs,  such Participant shall  be entitled to the Severance Benefits,  subject  to therelease requirement described in Section 4.1.

4.3      Severance Benefits . For purposes of this Plan, with respect to a Participant, “ SeveranceBenefits” shall mean and include the following:

(a)     a lump‑sum cash payment in an amount equal to the sum of (i) the applicable Severance Multiple for such Participant multipliedbythe sum of such Participant’s (A) Base Salary, plus(B) Target Bonus; plus(ii) the applicable COBRA Multiple for such Participant multipliedbythe such Participant’s COBRA Premium (with total amount the “ SeverancePayment”); and

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(b)        if  the  Participant  is  a  Tier  1  Participant,  Tier  2  Participant  or  Tier  3  Participant,  continued  eligibility  during  such  Participant’sSeverance  Period  following  the  later  of  (x)  such  Participant’s  Termination  Date  or  (y)  the  date  of  the  Change  of  Control  giving  rise  to  thepayment of Severance Benefits (which results due to the Termination Date occurring during the Effective Period), for the Company’s medical,dental and vision benefit plans in which such Participant was entitled to participate immediately prior to the Participant’s Termination Date at nogreater monthly premium cost to such Participant than was paid by such Participant immediately prior to his or her Termination Date; provided,however,  that such Participant’s continued participation is possible under the general terms and provisions of such plans. Notwithstanding theforegoing,  (1)  to  the  extent  the  coverage  described  above  cannot  be  provided  under  the  Company’s  benefit  plans,  or  (2)  if  the  Company’sobligations contemplated by clause (ii) of Section 4.3(a) would result in the imposition of excise taxes on the Company for failure to comply withthe nondiscrimination requirements of the Patient Protection and Affordable Care Act of 2010, as amended, and the Health Care and EducationReconciliation Act of 2010, as amended (to the extent applicable), the Company shall discontinue such coverage, and, in either situation, duringthe Severance Period or remainder of the Severance Period, as applicable, the Participant shall be entitled to a monthly cash payment equal to theCompany’s  monthly  portion  of  the  premiums  under  such  plans,  determined  as  of  the  Termination  Date.  This  Plan’s  provision  of  continuedparticipation in the Company’s medical, dental and vision plans is intended to satisfy the Company’s COBRA obligation, if any.

4.4      Payment Timing . The Severance Payment to a Participant shall be paid to such Participant on the 60th day following the later of suchParticipant’s Termination Date or the Change of Control Effective Date for the Change of Control giving rise to the payment of Severance Benefits tosuch  Participant  (which  results  due  to  the  Termination  Date  occurring  during  the  Effective  Period),  subject  to  the  release  requirement  described  inSection 4.1.

4.5      No Mitigation through Subsequent Employment . No Participant shall be required to mitigate the amount of any payment provided for inthis  Plan  by  seeking  other  employment,  nor  shall  the  amount  of  any  payment  provided  for  in  this  Plan  be  reduced  by  any  compensation  earned  by  aParticipant as the result of employment by another Person after such Participant’s Termination Date.

4.6          Code  Section  280G  .  Anything  in  this  Plan  to  the  contrary  notwithstanding,  in  the  event  it  shall  be  determined  that  any  payment  ordistribution in the nature of compensation (within the meaning of Code Section 280G(b)(2)) to or for the benefit of a Participant, whether paid or payableor distributed or distributable pursuant to the terms of this Plan or otherwise, but determined without regard to any reduction (if any) required under thisSection 4.6 (the “ Payment”), would be subject to the excise tax imposed by Code Section 4999, together with any interest or penalties imposed withrespect to such excise tax (“ ExciseTax”), then the Company shall automatically reduce (the “ Reduction”) such Participant’s Payment to the minimumextent necessary to prevent the Payment (after the Reduction) from being subject to the Excise Tax, but only if, by reason of the Reduction, the after-taxbenefit  of the reduced Payment exceeds the after-tax benefit  if  such Reduction was not made. If the after-tax benefit  of the reduced Payment does notexceed the after-tax benefit if the Payment is not reduced, then the Reduction shall not apply. If the Reduction is applicable, the Payment shall be reducedin such a manner that provides the applicable Participant with the best economic benefit and, to the extent any portions of the Payment are economicallyequivalent with each other, each shall be reduced pro rata. All determinations to be made under this Section 4.6 shall be made by an independent publicaccounting firm selected by Oceaneering and the fees and expenses of the accounting firm will be paid by Oceaneering. The accounting firm shall providedetailed  supporting  calculations  both  to  Oceaneering  and  any  applicable  Participant.  Absent  manifest  error,  any  determination  by  the  accounting  firmshall be binding upon Oceaneering and any applicable Participant. In any event, the Company shall have no tax

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gross-up obligation or liability with respect to payment of a Participant’s excise tax liabilities under Section 4999 of the Code.

ARTICLE V RESTRICTIVE COVENANTS

5.1      Generally . A Participant’s right to Severance Benefits shall be further conditioned upon his or her compliance with the provisions of thisArticle V and the Participation Agreement signed by such Participant and delivered to the Company. In the event any Participant fails to comply with anyof  the  provisions  of  this  Article  V  or  the  Participation  Agreement,  such  Participant  shall  repay  to  the  Company  any  payments  received  pursuant  toSection 4.3, and no further benefits shall be payable to such Participant under this Plan.

5.2      Definitions . As used in this Article V, the following terms shall have the following meanings:

(a)     “ Business” means any business in which the Company is engaged or in which the Company has taken material steps to engageduring the prior two years of such Participant’s employment.

(b)     “ CompetingBusiness” means any Person which, wholly or in any significant part, engages in any business competing with theBusiness in the Restricted Area.

(c)     “ GovernmentalAuthority” means any governmental, quasi-governmental, state, county, city or other political subdivision of theUnited States or any other country, or any agency, court or instrumentality, foreign or domestic, or any statutory or regulatory body thereof.

(d)        “  LegalRequirement” means any law, statute,  code,  ordinance,  order,  rule,  regulation,  judgment,  decree,  injunction,  franchise,permit, certificate, license, authorization, or other directional requirement of any Governmental Authority.

(e)     “ ProhibitedPeriod” means, with respect to any Participant, the period during which such Participant is employed by the Companyand extending until (i) 24 months for a Tier 1 Participant or a Tier 2 Participant, (ii) 18 months for a Tier 3 Participant, and (iii) 12 months for aTier 4 Participant following such Participant’s Termination Date.

(f)     “ ProprietaryInformation” includes all confidential or proprietary scientific or technical information, data, formulas and relatedconcepts,  business  plans  (both  current  and  under  development),  client  lists,  promotion  and  marketing  programs,  trade  secrets,  or  any  otherconfidential  or  proprietary  business  information  relating  to  the  business  of  the  Company,  whether  in  written  or  electronic  form  of  writings,correspondence, notes, drafts, records, maps, invoices, technical and business logs, policies, computer programs, disks or otherwise. ProprietaryInformation does not include information that is or becomes publicly known through lawful means.

(g)      “ RestrictedArea” means, with respect to any Participant, any state or, if outside the United States, any country or subdivisionthereof in which the Company (i) is then currently engaged in the Business, (ii) has engaged in the Business during the prior two years of suchParticipant’s  employment,  or  (iii)  is  actively  pursuing  business  opportunities  for  the  Business,  and  in  each  such  case  such  Participant  either(x) received Proprietary Information about the Company’s operations in such location or (y) worked in such location during the prior two years ofsuch Participant’s employment.

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5.3      Confidential Treatment . Each Participant acknowledges and agrees that he or she has acquired, and will in the future acquire as a result ofhis or her employment by the Company or otherwise, Proprietary Information of the Company which is of a confidential or trade secret nature, and all ofwhich has a great value to the Company and is a substantial basis and foundation upon which the Company’s business is predicated. Accordingly, otherthan in the legitimate performance of the Participant’s job duties, each Participant agrees:

(a)     to regard and preserve as confidential at all times all Proprietary Information;

(b)     to refrain from publishing or disclosing any part of the Proprietary Information and from using, copying or duplicating it in any wayby any means whatsoever; and

(c)     not to use on such Participant’s own behalf or on behalf of any third party or to disclose the Proprietary Information to any personor entity without the prior written consent of Oceaneering.

5.4      Property of the Company . Each Participant acknowledges that all Proprietary Information and other property of the Company which suchParticipant accumulates during such Participant’s employment with the Company are the exclusive property of the Company. Upon the termination of aParticipant’s employment with the Company, or at any time upon the Company’s request, such Participant shall surrender and deliver to the Company(and not keep, recreate or furnish to any third party) any and all work papers, reports, manuals, documents and the like (including all originals and copiesthereof) in such Participant’s possession which contain Proprietary Information relating to the business, prospects or plans of the Company. Further, eachParticipant agrees to search for and delete all Company information, including Proprietary Information, from his or her computer, smartphone, tablet, orany other personal electronic storage devices, other than payroll information or other financial information that the Participant may need for his or her taxfilings, and, upon request, certify to the Company that the Participant has completed this search and deletion process.

5.5      Cooperation . Each Participant agrees that, following any termination of his or her employment with the Company, such Participant willnot disclose or cause to be disclosed any Proprietary Information, unless (in any such case) required by court order. Pursuant to the Defend Trade SecretsAct  of  2016,  no  Participant  shall  be  held  criminally  or  civilly  liable  under  any  Federal  or  state  trade  secret  law  for  the  disclosure  of  any  ProprietaryInformation that (i) is made (A) in confidence to a Federal, state or local government official, either directly or indirectly, or to an attorney and (B) solelyfor  the  purpose  of  reporting  or  investigating  a  suspected  violation  of  law or  (ii)  is  made  in  a  complaint  or  other  document  filed  in  a  lawsuit  or  otherproceeding, if such filing is made under seal. The Company may seek the assistance, cooperation or testimony of the applicable Participant following anysuch termination in connection with any investigation, litigation or proceeding arising out of matters within the knowledge of such Participant and relatedto his or her employment by the Company, and in such instance, such Participant shall provide such assistance, cooperation or testimony and Oceaneeringshall pay such Participant’s reasonable costs and expenses in connection therewith.

5.6      Non-Competition; Non-Solicitation .

(a)         Each  Participant  and  Oceaneering  agree  to  the  non-competition  and  non-solicitation  provisions  of  this  Section  5.6:  (i)  inconsideration for the Proprietary Information provided by the Company to such Participant; and (ii) to protect the Proprietary Information of theCompany disclosed or entrusted to such Participant by the Company or created or developed by such Participant

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for  the  Company,  the  business  goodwill  of  the  Company  developed  through  the  efforts  of  such  Participant  and  the  business  opportunitiesdisclosed or entrusted to such Participant by the Company.

(b)        Subject to the exceptions set  forth in Section 5.6(c),  each Participant expressly covenants and agrees that,  during the ProhibitedPeriod  applicable  to  such  Participant:  (i)  such  Participant  will  refrain  from  carrying  on  or  engaging  in,  directly  or  indirectly,  any  CompetingBusiness in the Restricted Area; and (ii) such Participant will not, directly or indirectly, own, manage, operate, join, become an employee, partner,owner or member of (or an independent contractor to), control or participate in or loan money to, sell or lease equipment to or sell or lease realproperty to any Person that engages in a Competing Business in the Restricted Area.

(c)        Notwithstanding the restrictions contained in Section 5.6(b),  any Participant  may own an aggregate of not  more than 1% of theoutstanding capital stock or other equity security of any class of any corporation or other entity engaged in a Competing Business, if such capitalstock  or  other  equity  security  is  listed  on  a  national  securities  exchange  or  regularly  traded  in  the  over-the-counter  market  by  a  member  of  anational securities exchange, without violating the provisions of Section 5.6(b), providedthat such Participant does not have the power, directly orindirectly, to control or direct the management or affairs of any such corporation or other entity and is not involved in the management of suchcorporation.

(d)        Each  Participant  further  expressly  covenants  and  agrees  that,  during  the  Prohibited  Period  applicable  to  such  Participant,  suchParticipant will not: (i) engage or employ, or solicit or contact with a view to the engagement or employment of, any person who is an officer oremployee of the Company; or (ii) canvass, solicit, approach or entice away or cause to be canvassed, solicited, approached or enticed away fromthe Company any person who or which is or was a customer of the Company, during the prior two years of such Participant’s employment withthe  Company,  and  either  (x)  about  which  such  Participant  received  Proprietary  Information  or  (y)  with  which  such  Participant  had  contact  ordealings on behalf of the Company.

(e)     Each Participant expressly recognizes that he or she is a key employee and an important member of the management or research anddevelopment team who will be provided with access to Proprietary Information and trade secrets as part of such Participant’s employment andthat  the  restrictive  covenants  set  forth  in  this  Article  V  are  reasonable  and  necessary  in  light  of  such  Participant’s  position  and  access  to  theProprietary Information.

5.7      Non-Disparagement . Each Participant agrees that, following any termination of his or her employment with the Company, such Participantwill not disparage, orally or in writing, the Company, the management of the Company, any product or service provided by the Company or the futureprospects of the Company.

5.8      Relief . Each Participant and Oceaneering agree and acknowledge that the limitations as to time, geographical area and scope of activity tobe  restrained  as  set  forth  in  this  Article  V  are  reasonable  and  do  not  impose  any  greater  restraint  than  is  necessary  to  protect  the  legitimate  businessinterests of the Company. Each Participant and Oceaneering also acknowledge that money damages would not be sufficient remedy for any breach of thisArticle V by such Participant, and the Company shall be entitled to enforce the provisions of this Article V by terminating any Severance Payment thenowing to such Participant under this Plan or otherwise and to specific performance and injunctive relief as remedies for such breach or any threatenedbreach. Such remedies shall not be deemed the exclusive remedies for a breach of this Article V but shall be in addition to all remedies available at law orin equity, including the recovery of damages from

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a  Participant  and  such  Participant’s  agents.  However,  if  it  is  determined  that  such  Participant  has  not  committed  a  breach  of  this  Article  V,  then  theCompany shall  resume the  payments  and benefits  due  under  this  Plan  and pay to  such Participant  all  payments  and benefits  that  had  been suspendedpending such determination.

5.9            Reasonableness;  Enforcement  .  Each  Participant  acknowledges  and  agrees  that  the  geographic  scope  and  duration  of  the  covenantscontained  in  this  Article  V  are  fair  and  reasonable  in  light  of:  (a)  the  nature  and  wide  geographic  scope  of  the  operations  of  the  Business;  (b)  suchParticipant’s level of control over and contact with the Business in all jurisdictions in which it is conducted; (c) the fact that the Business is conductedthroughout the Restricted Area; and (d) the amount of compensation and Proprietary Information that such Participant is receiving in connection with theperformance  of  such  Participant’s  duties  for  the  Company.  It  is  the  desire  and  intent  of  each  Participant  and  Oceaneering  that  the  provisions  of  thisArticle V be enforced to the fullest extent permitted under applicable Legal Requirements, whether now or hereafter in effect and, therefore, to the extentpermitted  by  applicable  Legal  Requirements,  such  Participant  and  Oceaneering  hereby  waive  the  application  of  any  provision  of  applicable  LegalRequirements that would render any provision of this Article V invalid or unenforceable, in whole or in part.

5.10      Reformation . The Company and each Participant agree that the foregoing restrictions are reasonable under the circumstances and thatany  breach  of  the  covenants  contained  in  this  Article  V  would  cause  irreparable  injury  to  the  Company.  Each  Participant  expressly  represents  thatenforcement of the restrictive covenants set forth in this Article V will not impose an undue hardship upon such Participant or any Person affiliated withsuch Participant. Further, each Participant acknowledges that such Participant’s skills are such that such Participant can be gainfully employed in non-competitive employment, and that the restrictive covenants will not prevent such Participant from earning a living. Nevertheless, if any of the aforesaidrestrictions are found by a court of competent jurisdiction to be unreasonable, or overly broad as to geographic area or time, or otherwise unenforceable,the parties intend for the restrictions herein set forth to be modified by the court making such determination so as to be reasonable and enforceable and, asso modified, to be fully enforced.

5.11         Protected Disclosures .  Notwithstanding any provision to the contrary in this Plan, nothing in this Plan prohibits any Participant fromreporting possible violations of law or regulation to any governmental agency or entity, including the U.S. Department of Justice, the U.S. Securities andExchange Commission,  the  U.S.  Congress,  and any agency Inspector  General,  or  making other  disclosures  that  are  protected  under  the  whistleblowerprovisions of federal law or regulation. Nothing in this Plan limits the Participant’s ability to communicate with any government agencies or otherwiseparticipate in any investigation or proceeding that  may be conducted by any government agency, including providing documents or other information,without  notice  to  the  Company.  Additionally,  each  Participant  and  Oceaneering  acknowledge  and  agree  that  such  Participant  does  not  need  the  priorauthorization of the Company to make any such reports or disclosures and such Participant is not required to notify the Company or any of its affiliatesthat such Participant has made such reports or disclosures.

ARTICLE VI MISCELLANEOUS PROVISIONS

6.1      Notices . All notices and other communications pursuant to or in connection with this Plan shall be in writing and shall be deemed to havebeen given when delivered in person to the persons specified below or deposited in the United States mail, certified or registered mail, postage prepaidand addressed as follows: (a) if to the Company, at Oceaneering’s principal office address or such other address as Oceaneering may have designated bywritten notice for purposes hereof, directed to the attention of the Chair of the

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Committee,  in  the  care  of  Oceaneering’s  Secretary,  and  (b)  if  to  any  Participant,  at  his  or  her  residence  address,  as  reflected  in  the  records  of  theCompany, or to such other address as he or she may have designated to Oceaneering in writing for purposes of this Plan.

6.2      Dispute Resolution .

(a)      GoverningLaw. This Plan shall be governed in all respects, including as to validity, interpretation and effect, by the internal lawsof the State of Texas, without regard to any choice of law principles that would result in the application of the laws of another jurisdiction, exceptto the extent preempted by U.S. federal law.

(b)      JurisdictionandVenue. If any dispute arises with respect to any action, suit or other legal proceeding pertaining to this Plan or tothe  interpretation  of  or  enforcement  of  any  Participant’s  rights  under  this  Plan,  Oceaneering  and  such  Participant:  (i)  agree  that  exclusivejurisdiction for any such suit, action or legal proceeding shall be in the federal or state courts situated in Houston, Harris County, Texas; (ii) eachconsent to the jurisdiction of each such court in any such suit, action or legal proceeding and will comply with all requirements necessary to givesuch court jurisdiction; (iii) each waive any objection to the laying of venue of any such suit, action or legal proceeding in any of such court; and(iv) each agree to waive all rights to a trial by jury.

6.3      Code Section 409A .

(a)      Interpretation. This Plan is intended to comply with or be exempt from the requirements of Code Section 409A and the regulationsthereunder  (“ Section 409A”)  and  shall  be  construed  and  interpreted  in  accordance  with  such  intent.  To  the  extent  any  payment  or  benefitprovided under this Plan is subject to Section 409A, such benefit shall be provided in a manner that complies with Section 409A, including anyIRS guidance promulgated with respect to Section 409A.

(b)      DelayofPayment. To the extent required to comply with Section 409A (as determined by Oceaneering), if any Participant is a“specified employee,” as determined by Oceaneering, as of his or her date of termination, then all amounts due under this Plan that constitute a“deferral of compensation” within the meaning of Section 409A, that are provided as a result of a “separation from service” within the meaning ofSection 409A, and that would otherwise be paid or provided during the first six months following such Participant’s date of termination, shall beaccumulated through and paid or provided on the first business day that is more than six months after such Participant’s date of termination (or, ifsuch Participant dies during such six month period, within 90 days after such Participant’s death). Each payment under this Plan, including eachpayment in a series of installment payments, is intended to be a separate payment for purposes of Treasury Regulation § 1.409A-2(b).

(c)      ReimbursementsandIn-KindBenefits. All reimbursements and in-kind benefits provided pursuant to this Plan shall be made inaccordance  with  Treasury  Regulation  §  1.409A-3(i)(1)(iv),  such  that  any  reimbursements  or  in-kind  benefits  will  be  deemed  payable  at  aspecified  time  or  on  a  fixed  schedule  relative  to  a  permissible  payment  event.  Specifically,  (i)  the  amounts  reimbursed  and  in-kind  benefitsprovided under this Plan, other than total reimbursements that are limited by a lifetime maximum under a group health plan, during a Participant’staxable year may not affect the amounts reimbursed or in-kind benefits provided in any other taxable year, (ii) the reimbursement of an eligibleexpense shall be made on or before the last day of a Participant’s taxable year following the taxable year in which the expense was incurred, and(iii) the right to reimbursement or an in-kind benefit is not subject to liquidation or exchange for another benefit.

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6.4      Clawback . This Plan and each Participation Agreement shall be subject to any clawback policy of the Company in effect from time to timeprior to the Change of Control Effective Date.

6.5      Amendment or Termination . The Board or the Committee may amend (in whole or in part) or terminate this Plan and any ParticipationAgreement at any time; provided,however, that no effect shall be given to any action by the Board or Committee that amends or terminates this Plan orany  Participation  Agreement  during  the  Effective  Period  to  the  extent  such  action  would  (but  for  this  provision)  reduce  or  terminate  the  potentialSeverance Benefits to a Participant. Notwithstanding the foregoing, no termination of this Plan shall reduce or terminate any Participant’s right to receive,or continue to receive, any payments and benefits that became payable in respect of a termination of such Participant’s employment that occurred prior tothe date of such termination of this Plan.

6.6      Administration .

(a)     The Committee shall have full and final authority, subject to the express provisions of this Plan, with respect to designation of theParticipants  and  administration  of  this  Plan,  including  the  authority  to  construe  and  interpret  any  provisions  of  this  Plan  and  to  take  all  otheractions deemed necessary or advisable for the proper administration of this Plan, and such decisions shall be binding on all parties.

(b)     Oceaneering shall indemnify and hold harmless each member of the Committee and any other employee of the Company who actsat  the  direction  of  the  Committee  against  any  and  all  expenses  and  liabilities  arising  out  of  his  or  her  administrative  functions  or  fiduciaryresponsibilities,  including any expenses  and liabilities  that  are  caused by or  result  from an act  or  omission constituting the negligence of  suchmember  in  the  performance of  such functions  or  responsibilities,  but  excluding expenses  and liabilities  that  are  caused by or  result  from suchmember’s or employee’s own gross negligence or willful misconduct.  Expenses against which such member or employee shall  be indemnifiedhereunder  shall  include,  without  limitation,  the  amounts  of  any  settlement  or  judgment,  costs,  counsel  fees  and  related  charges  incurred  inconnection with a claim asserted or a proceeding brought or settlement thereof.

6.7          Company Successors  .  This  Plan shall  be binding upon and inure to  the benefit  of  Oceaneering,  its  successors  and assigns (including,without limitation, any company into or with which Oceaneering may merge or consolidate).

6.8      No Assignment by Participants . A Participant’s right to receive payments or benefits hereunder shall not be assignable or transferable,whether by pledge, creation or a security interest or otherwise, whether voluntary, involuntary, by operation of law or otherwise, other than a transfer bywill or by the laws of descent or distribution, and in the event of any attempted assignment or transfer contrary to this Section 6.8, the Company shallhave no liability to pay any amount so attempted to be assigned or transferred. The benefits under this Plan shall inure to the benefit of and be enforceableby a Participant’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

6.9      Tax Withholding . The Company may withhold from any benefits payable under this Plan all federal, state, city or other taxes as may berequired pursuant to any law or governmental regulation or ruling.

6.10      No Employment Rights Conferred . This Plan shall not be deemed to create a contract of employment between any Participant and theCompany or any other Person. Nothing contained in this Plan

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shall (a) confer upon any Participant any right with respect to continuation of employment with the Company or any other Person or (b) subject to therights and benefits of any Participant hereunder, interfere in any way with the right of the Company to terminate such Participant’s employment at anytime.

6.11      Entire Plan . This Plan and the Participation Agreement contain the entire understanding of the Participants and the Company with respectto severance arrangements maintained on behalf of any of the Participants by the Company. There are no restrictions, agreements, promises, warranties,covenants or undertakings between any of the Participants and the Company with respect to the subject matter herein other than those expressly set forthherein and the Participation Agreement.

6.12      Prior Agreements . This Plan supersedes all prior agreements, programs and understandings (including all written and verbal agreementsand  understandings)  between  each  Participant  and  the  Company  regarding  the  terms  and  conditions  of  each  Participant’s  employment  and  severancearrangements.

6.13      Severability . If any provision of this Plan is, becomes or is deemed to be invalid, illegal or unenforceable in any respect, the validity,legality and enforceability of the remaining provisions of this Plan shall not be affected thereby.

6.14     Headings . The titles and headings to Sections contained in this Plan are for convenience of reference only and shall not affect in any waythe meaning or interpretation of this Plan.

6.15     Construction . Whenever the context requires, the gender of all words used in this Plan includes the masculine, feminine and neuter andterms  defined  in  the  singular  have  the  corresponding  meanings  in  the  plural,  and  vice  versa.  Unless  otherwise  specified,  all  references  to  Articles  orSections refer to articles or sections of this Plan. As used herein: (i) the word “includes” or “including” means “including, but not limited to,” unless thecontext otherwise requires; (ii) the words “shall” and “will” are used interchangeably and have the same meaning; (iii) the words “this Plan,” “hereof,”“hereby,”  “herein,”  “hereunder”  and  similar  terms  in  this  Plan  shall  refer  to  this  Plan  as  a  whole  and  not  any  particular  Section  in  which  such wordsappear; and (iv) the word “or” shall have the inclusive meaning represented by the phrase “and/or” unless the context requires otherwise. A defined termhas its defined meaning throughout this Plan, regardless of whether it appears before or after the place where it is defined.

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OCEANEERING INTERNATIONAL, INC.

CHANGE OF CONTROL PLAN

Participation Agreement

This  Participation  Agreement  (this  “ Agreement”)  is  entered  into  by  and  between  Oceaneering  International,  Inc.,  a  Delaware  corporation  (“Oceaneering ”),  and  the  undersigned  (the  “ Participant”),  effective  as  of  [•]  (the  “ Participation Effective Date ”),  pursuant  to  the  OceaneeringInternational, Inc. Change of Control Plan, effective as of [•], 2018, as it may be amended from time to time (the “ Plan”), in accordance with the termsand conditions of the Plan. Capitalized terms not defined in this Agreement shall have the meaning ascribed to them in the Plan.

In  accordance  with  Section  3.1  of  the  Plan  and  subject  to  the  timely  execution  and  return  of  this  Agreement  to  [Title or Name] ,  as  of  theParticipation Effective Date, the Participant is a Tier 1 Participant, Tier 2 Participant, Tier 3 Participant or Tier 4 Participant under the Plan (as notified byOceaneering).

The Participant agrees that  the terms and conditions of the Plan and this Agreement will  govern the Participant’s eligibility for any SeveranceBenefits provided under the Plan, and the Participant further acknowledges and agrees that:

1. The Participant has received a copy of the Plan and has read and understood all of the terms and condition of the Plan.

2. Except as otherwise provided in the Plan, the Participant’s participation in the Plan may change or cease at any time by action of Oceaneering oras  otherwise  provided under  the  Plan’s  terms and conditions  (including,  but  not  limited  to,  a  change in  the  Participant’s  employment  positionwhich may result in a change in the Severance Benefits the Participant may be eligible to receive under the Plan).

3. The  payment  or  receipt  of  any  Severance  Benefits  is  contingent  upon,  and  subject  to,  the  Participant’s  execution  and  timely  delivery  toOceaneering  (or  its  designee)  of  an  effective  and  unrevoked  waiver  and  release  (in  the  form  provided  by  Oceaneering)  of  claims  againstOceaneering and other related parties.

4. InexchangeforparticipationinthePlanandthepotentialpaymentorreceiptofanySeveranceBenefits,theParticipantissubjectto,andwillcomply with, all of the restrictive covenants (the “Covenants”) set forth in Article V of the Plan, which are attached as Exhibit A to thisAgreement.If the Committee (or its delegate) determines that the Participant has breached any of the Covenants, all remedies available under thePlan  and  by  law  shall  be  available  to  Oceaneering,  which  may  include  Participant’s  forfeiture  or  reimbursement  of  all  or  a  portion  of  theSeverance Benefits subject to this Agreement.

The Plan and this Agreement are governed in all respects, including as to validity, interpretation and effect, by the internal laws of the State ofTexas,  without  regard  to  any  choice  of  law  principles  that  would  result  in  the  application  of  the  laws  of  another  jurisdiction,  except  to  the  extentpreempted by U.S. federal law. If any dispute arises with respect to any action, suit or other legal proceeding pertaining to the Plan or to the interpretationof or enforcement of the Participant’s rights under the Plan, Oceaneering and the Participant:

Form of Participation Agreement    Page 1

(i) agree  that  exclusive  jurisdiction  for  any  such  suit,  action  or  legal  proceeding  is  the  federal  or  state  courts  situated  in  Houston,  HarrisCounty, Texas;

(ii) consent to the jurisdiction of each such court in any such suit, action or legal proceeding and will comply with all requirements necessaryto give such court jurisdiction;

(iii) waive any objection either may have to the laying of venue of any such suit, action or legal proceeding in any of such court; and

(iv) waives all rights to a trial by jury.

Participation in the Plan and entering into this Agreement (x) do not create a contract of employment or provide for continuation of employmentwith Oceaneering or any of its subsidiaries or other affiliates, or (y) preclude the termination of the Participant’s employment at any time by Oceaneeringor, if applicable, any of its subsidiaries or other affiliates.

The Participant agrees and acknowledges that this Agreement and the Plan contain the entire understanding of the Participant and the Companywith respect to Severance Benefits provided under the Plan and that this Agreement supersedes and replaces any prior Participation Agreement (and anyother prior or contemporaneous written or oral agreements or promises).

OCEANEERING INTERNATIONAL, INC.

By:     

Name:     

Title:     

PARTICIPANT

    

Name:     

Date:     

Form of Participation Agreement    Page 2

EXHIBIT A

OCEANEERING INTERNATIONAL, INC.

CHANGE OF CONTROL PLAN

PARTICIPATION AGREEMENT

Article V Restrictive Covenants

“5.1     Generally . A Participant’s right to Severance Benefits shall be further conditioned upon his or her compliance with the provisions of thisArticle V and the Participation Agreement signed by such Participant and delivered to the Company. In the event any Participant fails to comply with anyof  the  provisions  of  this  Article  V  or  the  Participation  Agreement,  such  Participant  shall  repay  to  the  Company  any  payments  received  pursuant  toSection 4.3, and no further benefits shall be payable to such Participant under this Plan.

5.2     Definitions . As used in this Article V, the following terms shall have the following meanings:

(a)    “ Business” means any business in which the Company is engaged or in which the Company has taken material steps to engageduring the prior two years of such Participant’s employment.

(b)    “ CompetingBusiness” means any Person which, wholly or in any significant part, engages in any business competing with theBusiness in the Restricted Area.

(c)    “ GovernmentalAuthority” means any governmental, quasi-governmental, state, county, city or other political subdivision of theUnited States or any other country, or any agency, court or instrumentality, foreign or domestic, or any statutory or regulatory body thereof.

(d)        “ Legal Requirement”  means  any law,  statute,  code,  ordinance,  order,  rule,  regulation,  judgment,  decree,  injunction,  franchise,permit, certificate, license, authorization, or other directional requirement of any Governmental Authority.

(e)    “ ProhibitedPeriod” means, with respect to any Participant, the period during which such Participant is employed by the Companyand extending until (i) 24 months for a Tier 1 Participant or a Tier 2 Participant, (ii) 18 months for a Tier 3 Participant, and (iii) 12 months for aTier 4 Participant following such Participant’s Termination Date.

(f)      “ ProprietaryInformation” includes all confidential or proprietary scientific or technical information, data, formulas and relatedconcepts,  business  plans  (both  current  and  under  development),  client  lists,  promotion  and  marketing  programs,  trade  secrets,  or  any  otherconfidential  or  proprietary  business  information  relating  to  the  business  of  the  Company,  whether  in  written  or  electronic  form  of  writings,correspondence, notes, drafts, records, maps, invoices, technical and business logs, policies, computer programs, disks or otherwise. ProprietaryInformation does not include information that is or becomes publicly known through lawful means.

(g)     “ RestrictedArea” means, with respect to any Participant, any state or, if outside the United States, any country or subdivisionthereof in which the Company (i) is then currently engaged in the Business, (ii) has engaged in the Business during the prior two years of such

Exhibit A to Form of Participation Agreement    Page 1

Participant’s  employment,  or  (iii)  is  actively  pursuing  business  opportunities  for  the  Business,  and  in  each  such  case  such  Participant  either(x) received Proprietary Information about the Company’s operations in such location or (y) worked in such location during the prior two years ofsuch Participant’s employment.

5.3     Confidential Treatment . Each Participant acknowledges and agrees that he or she has acquired, and will in the future acquire as a result ofhis or her employment by the Company or otherwise, Proprietary Information of the Company which is of a confidential or trade secret nature, and all ofwhich has a great value to the Company and is a substantial basis and foundation upon which the Company’s business is predicated. Accordingly, otherthan in the legitimate performance of the Participant’s job duties, each Participant agrees:

(a)    to regard and preserve as confidential at all times all Proprietary Information;

(b)    to refrain from publishing or disclosing any part of the Proprietary Information and from using, copying or duplicating it in any wayby any means whatsoever; and

(c)    not to use on such Participant’s own behalf or on behalf of any third party or to disclose the Proprietary Information to any person orentity without the prior written consent of Oceaneering.

5.4     Property of the Company . Each Participant acknowledges that all Proprietary Information and other property of the Company which suchParticipant accumulates during such Participant’s employment with the Company are the exclusive property of the Company. Upon the termination of aParticipant’s employment with the Company, or at any time upon the Company’s request, such Participant shall surrender and deliver to the Company(and not keep, recreate or furnish to any third party) any and all work papers, reports, manuals, documents and the like (including all originals and copiesthereof) in such Participant’s possession which contain Proprietary Information relating to the business, prospects or plans of the Company. Further, eachParticipant agrees to search for and delete all Company information, including Proprietary Information, from his or her computer, smartphone, tablet, orany other personal electronic storage devices, other than payroll information or other financial information that the Participant may need for his or her taxfilings, and, upon request, certify to the Company that the Participant has completed this search and deletion process.

5.5     Cooperation . Each Participant agrees that, following any termination of his or her employment with the Company, such Participant will notdisclose or cause to be disclosed any Proprietary Information, unless (in any such case) required by court order. Pursuant to the Defend Trade Secrets Actof  2016,  no  Participant  shall  be  held  criminally  or  civilly  liable  under  any  Federal  or  state  trade  secret  law  for  the  disclosure  of  any  ProprietaryInformation that (i) is made (A) in confidence to a Federal, state or local government official, either directly or indirectly, or to an attorney and (B) solelyfor  the  purpose  of  reporting  or  investigating  a  suspected  violation  of  law or  (ii)  is  made  in  a  complaint  or  other  document  filed  in  a  lawsuit  or  otherproceeding, if such filing is made under seal. The Company may seek the assistance, cooperation or testimony of the applicable Participant following anysuch termination in connection with any investigation, litigation or proceeding arising out of matters within the knowledge of such Participant and relatedto his or her employment by the Company, and in such instance, such Participant shall provide such assistance, cooperation or testimony and Oceaneeringshall pay such Participant’s reasonable costs and expenses in connection therewith.

Exhibit A to Form of Participation Agreement    Page 2

5.6     Non-Competition; Non-Solicitation .

(a)        Each  Participant  and  Oceaneering  agree  to  the  non-competition  and  non-solicitation  provisions  of  this  Section  5.6:  (i)  inconsideration for the Proprietary Information provided by the Company to such Participant; and (ii) to protect the Proprietary Information of theCompany disclosed or entrusted to such Participant by the Company or created or developed by such Participant for the Company, the businessgoodwill  of  the  Company  developed  through  the  efforts  of  such  Participant  and  the  business  opportunities  disclosed  or  entrusted  to  suchParticipant by the Company.

(b)        Subject  to  the  exceptions  set  forth  in  Section  5.6(c),  each Participant  expressly  covenants  and agrees  that,  during the  ProhibitedPeriod  applicable  to  such  Participant:  (i)  such  Participant  will  refrain  from  carrying  on  or  engaging  in,  directly  or  indirectly,  any  CompetingBusiness in the Restricted Area; and (ii) such Participant will not, directly or indirectly, own, manage, operate, join, become an employee, partner,owner or member of (or an independent contractor to), control or participate in or loan money to, sell or lease equipment to or sell or lease realproperty to any Person that engages in a Competing Business in the Restricted Area.

(c)        Notwithstanding  the  restrictions  contained  in  Section5.6(b),  any  Participant  may  own  an  aggregate  of  not  more  than  1% of  theoutstanding capital stock or other equity security of any class of any corporation or other entity engaged in a Competing Business, if such capitalstock  or  other  equity  security  is  listed  on  a  national  securities  exchange  or  regularly  traded  in  the  over-the-counter  market  by  a  member  of  anational securities exchange, without violating the provisions of Section 5.6(b), providedthat such Participant does not have the power, directly orindirectly, to control or direct the management or affairs of any such corporation or other entity and is not involved in the management of suchcorporation.

(d)        Each  Participant  further  expressly  covenants  and  agrees  that,  during  the  Prohibited  Period  applicable  to  such  Participant,  suchParticipant will not: (i) engage or employ, or solicit or contact with a view to the engagement or employment of, any person who is an officer oremployee of the Company; or (ii) canvass, solicit, approach or entice away or cause to be canvassed, solicited, approached or enticed away fromthe Company any person who or which is or was a customer of the Company, during the prior two years of such Participant’s employment withthe  Company,  and  either  (x)  about  which  such  Participant  received  Proprietary  Information  or  (y)  with  which  such  Participant  had  contact  ordealings on behalf of the Company.

(e)    Each Participant expressly recognizes that he or she is a key employee and an important member of the management or research anddevelopment team who will be provided with access to Proprietary Information and trade secrets as part of such Participant’s employment andthat  the  restrictive  covenants  set  forth  in  this  Article  V  are  reasonable  and  necessary  in  light  of  such  Participant’s  position  and  access  to  theProprietary Information.

5.7     Non-Disparagement . Each Participant agrees that, following any termination of his or her employment with the Company, such Participantwill not disparage, orally or in writing, the Company, the management of the Company, any product or service provided by the Company or the futureprospects of the Company.

5.8     Relief . Each Participant and Oceaneering agree and acknowledge that the limitations as to time, geographical area and scope of activity tobe  restrained  as  set  forth  in  this  Article  V  are  reasonable  and  do  not  impose  any  greater  restraint  than  is  necessary  to  protect  the  legitimate  businessinterests of the Company. Each Participant and Oceaneering also acknowledge that money damages would not be sufficient

Exhibit A to Form of Participation Agreement    Page 3

remedy for any breach of this Article V by such Participant, and the Company shall be entitled to enforce the provisions of this Article V by terminatingany Severance Payment then owing to such Participant under this Plan or otherwise and to specific performance and injunctive relief as remedies for suchbreach or any threatened breach. Such remedies shall not be deemed the exclusive remedies for a breach of this Article V but shall be in addition to allremedies available at law or in equity, including the recovery of damages from a Participant and such Participant’s agents. However, if it is determinedthat such Participant has not committed a breach of this Article V, then the Company shall resume the payments and benefits due under this Plan and payto such Participant all payments and benefits that had been suspended pending such determination.

5.9          Reasonableness;  Enforcement  .  Each  Participant  acknowledges  and  agrees  that  the  geographic  scope  and  duration  of  the  covenantscontained  in  this  Article  V  are  fair  and  reasonable  in  light  of:  (a)  the  nature  and  wide  geographic  scope  of  the  operations  of  the  Business;  (b)  suchParticipant’s level of control over and contact with the Business in all jurisdictions in which it is conducted; (c) the fact that the Business is conductedthroughout the Restricted Area; and (d) the amount of compensation and Proprietary Information that such Participant is receiving in connection with theperformance  of  such  Participant’s  duties  for  the  Company.  It  is  the  desire  and  intent  of  each  Participant  and  Oceaneering  that  the  provisions  of  thisArticle V be enforced to the fullest extent permitted under applicable Legal Requirements, whether now or hereafter in effect and, therefore, to the extentpermitted  by  applicable  Legal  Requirements,  such  Participant  and  Oceaneering  hereby  waive  the  application  of  any  provision  of  applicable  LegalRequirements that would render any provision of this Article V invalid or unenforceable, in whole or in part.

5.10     Reformation . The Company and each Participant agree that the foregoing restrictions are reasonable under the circumstances and that anybreach of the covenants contained in this Article V would cause irreparable injury to the Company. Each Participant expressly represents that enforcementof  the  restrictive  covenants  set  forth  in  this  Article  V  will  not  impose  an  undue  hardship  upon  such  Participant  or  any  Person  affiliated  with  suchParticipant.  Further,  each  Participant  acknowledges  that  such  Participant’s  skills  are  such  that  such  Participant  can  be  gainfully  employed  in  non-competitive employment, and that the restrictive covenants will not prevent such Participant from earning a living. Nevertheless, if any of the aforesaidrestrictions are found by a court of competent jurisdiction to be unreasonable, or overly broad as to geographic area or time, or otherwise unenforceable,the parties intend for the restrictions herein set forth to be modified by the court making such determination so as to be reasonable and enforceable and, asso modified, to be fully enforced.

5.11     Protected Disclosures . Notwithstanding any provision to the contrary in this Plan, nothing in this Plan prohibits any Participant from reportingpossible violations of law or regulation to any governmental agency or entity, including the U.S. Department of Justice, the U.S. Securities and ExchangeCommission, the U.S. Congress, and any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions offederal law or regulation. Nothing in this Plan limits the Participant’s ability to communicate with any government agencies or otherwise participate inany investigation or proceeding that may be conducted by any government agency, including providing documents or other information, without notice tothe Company. Additionally, each Participant and Oceaneering acknowledge and agree that such Participant does not need the prior authorization of theCompany to make any such reports or disclosures and such Participant is not required to notify the Company or any of its affiliates that such Participanthas made such reports or disclosures.”

Exhibit A to Form of Participation Agreement    Page 4

Exhibit 10.33

AMENDMENT TOTRUST AGREEMENT

This amendment (the “Amendment”), effective as of the Effective Time (as defined below), to the Trust Agreement entered into as of May 12,2006 by and between Oceaneering International, Inc. (the “Company”) and Bank of America, National Association (“BANA”), as successor to UnitedStates Trust Company, N.A. (the “Trust Agreement”) is made and entered into by and among the Company, BANA, Evercore LP (“Evercore”) andEvercore Trust Company, National Association (“ETC”), a limited purpose national banking association.

WITNESSETH

WHEREAS, pursuant to the Trust Agreement, BANA serves as trustee of the trust created thereby (the “Trust”);

WHEREAS, on September 8, 2008, BANA entered into that certain Asset Purchase Agreement, pursuant to which BANA will sell substantiallyall of the assets of its Special Fiduciary Services business (“SFS”) to Evercore (which sale is hereafter referred to as the “Transaction”), and in connectiontherewith Evercore is in the process of forming ETC;

WHEREAS, in connection with the Transaction, BANA wishes to resign as trustee of the Trust, and the Company and the Participant (as definedin the Trust Agreement) wish to appoint ETC as BANA’s successor; and

WHEREAS, it is expected that the current SFS management team and personnel will join ETC and will continue to manage the Trust in theordinary course of business.

NOW, THEREFORE, the parties hereto agree as follows:

1.  The Trust Agreement is hereby amended to reflect:

(a) BANA’s resignation as trustee of the Trust pursuant to Section 10(a) of the Trust Agreement, effective as of the closing of theTransaction (the “Effective Time”).

(b) That the Company appoints ETC as successor trustee of the Trust pursuant to Section 11(a) of the Trust Agreement, effective asof the Effective Time.

(c) That, to the extent that ETC does not satisfy the requirements of Section 11(a) of the Trust Agreement, the Company herebywaives such requirements solely with respect to ETC.

BOS111 12321411.2

(d) That, effective as of the Effective Time, BANA will no longer be a party to the Trust Agreement and all references to “theTrustee,” U.S. Trust or BANA, as applicable, in the Trust Agreement shall be references to ETC.

2.  The Company hereby acknowledges that BANA provided notice of its resignation as trustee of the Trust in accordance with Section10(a) of the Trust Agreement.

3.  This Amendment shall be contingent upon and will only become effective upon the occurrence of the Effective Time.

4.  Except as set forth in this Amendment, the Trust Agreement shall continue in full force and effect in accordance with its terms,unamended.

5.  This Amendment shall be governed by and construed in accordance with the laws of the jurisdiction set forth in the Trust Agreement.

6.  Evercore shall cause ETC to execute this Amendment upon the formation of ETC, and Evercore shall cause ETC to accept itsappointment as successor trustee to the Trust, effective as of the Effective Time. Upon such execution of this Amendment by ETC and ETC’sappointment as successor trustee to the Trust, Evercore shall cease to be a party to this Amendment.

7.  The Trust Agreement, as amended hereby and otherwise amended (including any exhibits and schedules thereto), constitutes the entireagreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings between the partieswith respect to such subject matter.

8.  This Amendment may be executed in one or more counterparts, each of which shall be deemed an original but all of which togetherwill constitute one and the same and shall become effective when one or more counterparts have been signed by each of the parties and delivered to theother party.

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BOS111 12321411.2     2

IN WITNESS WHEREOF the parties hereto have executed this Amendment as of this ___ day of __________________.

OCEANEERING    EVERCORE LPINTERNATIONAL, INC.

By: Evercore Partners Inc., itsGeneral Partner

By:     /S/ MARVIN J. MIGURA    Name:    Marvin J. MiguraTitle:    Sr. Vice President &    By:     /S/ ADAM B. FRANKEL    

Chief Financial Officer    Name:    Adam B. FrankelTitle:    Corporate Secretary

BANK OF AMERICA,NATIONAL ASSOCIATION

By:     /S/ GLORIA E. POLLANK    Name:    Gloria E. PollackTitle:    Managing Director

John R. Huff hereby consents to the appointment of ETC as successor trustee to the Trust as provided herein.

/S/ JOHN R. HUFF    John R. Huff, Participant

ETC hereby accepts its appointment aa successor trustee to the Trust effective as of the Effective Time, agrees to be bound by and subject to all ofthe provisions of the Trust Agreement from and after the Effective Time and acknowledges that all references in the Trust Agreement to “the trustee”shall refer to ETC from and after the Effective Time.

EVERCORE TRUST COMPANY,NATIONAL ASSOCIATION

By:     /S/ GLORIA E. POLLACK    Name:    Gloria E. PollackTitle:    Managing Director

BOS111 12321411.2     3

Exhibit 10.34

AMENDMENT TOTRUST AGREEMENT

This amendment (the “ Amendment ”), effective as of the Effective Time (as defined below), to the Trust Agreement, dated May 12,2006, as thereafter amended, by and between Oceaneering International, Inc. (the “Company”) and Evercore Trust Company, N.A. (“Evercore Trust”), assuccessor to United States Trust Company, National Association (the “ Trust Agreement ”), is made and entered into by and among the Company,Evercore Trust and Newport Trust Company, a New Hampshire trust company (“ Newport ”).

W I T N E S S E T H

WHEREAS, pursuant to the Trust Agreement, Evercore Trust serves as trustee of the trust created thereby (the “ Trust ”);

WHEREAS, on May 8, 2017, Evercore Trust entered into that certain Purchase Agreement, pursuant to which Evercore Trust will sellsubstantially all of the assets of its institutional and specialized fiduciary services business (“ ISFS ”) to Newport (which sale is hereafter referred to as the“ Transaction ”); and

WHEREAS, it is expected that the current ISFS management team and personnel will join Newport and will continue to manage the Trustin the ordinary course of business.

NOW, THEREFORE, the parties hereto agree as follows:

1. Effective as of the time of closing of the Transaction (the “Effective Time”), the Trust Agreement is hereby amended to reflect:

(a)Evercore Trust’s resignation as trustee of the Trust pursuant to Section 10 of the Trust Agreement.

(a)That the Company appoints Newport as successor trustee of the Trust pursuant to Section 11 of the Trust Agreement.

(b)That, to the extent Newport does not satisfy the requirements of Section 11 of the Trust Agreement, the Company hereby waives suchrequirements.

(c)That (i) Evercore Trust will no longer be a party to the Trust Agreement, and (ii) all references to “Evercore Trust Company, N.A.”and “the Trustee” in the Trust Agreement shall be references to “Newport Trust Company.”

2. The Company hereby acknowledges that Evercore Trust provided notice of its resignation as trustee of the Trust in accordance withSection 10 of the Trust Agreement.

3. This Amendment shall be contingent upon and will only become effective upon the occurrence of the Effective Time.

4. Except as set forth in this Amendment, the Trust Agreement shall continue in full force and effect in accordance with its terms,unamended.

5. This Amendment shall be governed by and construed in accordance with the laws of the jurisdiction set forth in the Trust Agreement.

6. Newport hereby accepts its appointment as successor trustee to the Trust effective as of the Effective Time, agrees to be bound by andsubject to all of the provisions of the Trust Agreement from and after the Effective Time and acknowledges that all references to“Evercore Trust Company, N.A.” and “the Trustee” in the Trust Agreement shall be references to “Newport Trust Company.”

7. The Trust Agreement, as amended hereby (including any exhibits and schedules thereto), constitutes the entire agreement between theparties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings between the parties withrespect to such subject matter.

8. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original but all of which together willconstitute one and the same and shall become effective when one or more counterparts have been signed by each of the parties anddelivered to the other party.

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of this 31st day of July, 2017, but effective as of the EffectiveTime.

OCEANEERING INTERNATIONAL, INC.

By: /S/ ALAN R. CURTIS  Name: Alan R. Curtis

 Title: Senior Vice President 

and Chief Financial Officer

EVERCORE TRUST COMPANY, N.A.

By: /S/ DEMI TUPUA  Name: Demi Tupua  Title: Vice President

NEWPORT TRUST COMPANY

By: /S/ BRYAN S. SIMMONS  Name: Bryan S. Simmons  Title: Trust Officer

The Participant (as defined in the Trust Agreement) hereby consents to the appointment of Newport Trust Company as successor trustee of theTrust Agreement and this Agreement on this 31st day of July, 2017.

/S/ JOHN R. HUFF            John R. Huff, Participant

Exhibit 10.35

Trust Agreement

This Trust Agreement , dated as of the first day of January, 2019 (“Effective Date”), is between Oceaneering International, Inc. , a Delawarecorporation, having an office at 11911 FM 529, Houston, Texas 77041 (“Sponsor”), and Fidelity Management Trust Company (the “Trustee”), aMassachusetts trust company, having an office at 245 Summer Street, Boston, Massachusetts 02210.

Article 1. Overview; Roles

Sponsor is the sponsor of the Oceaneering Retirement Investment Plan (the “Plan”).

Sponsor wishes to establish, pursuant to the provisions of this trust agreement (including any Schedules, Exhibits and Attachments hereto, as the samemay be amended and in effect from time to time) (the “Trust Agreement”), a single trust, to be administered as a Massachusetts trust governed by the lawsof the Commonwealth of Massachusetts, and to hold and invest assets of the Plan for the exclusive benefit of Participants in the Plan and theirbeneficiaries (the “Trust”).

Trustee is willing to hold and invest the aforesaid Plan assets in trust among several investment options selected by the Named Fiduciary.

Sponsor also wishes to have an affiliate of Trustee perform certain ministerial recordkeeping and related functions with respect to the Plan(s) pursuant toa separate Recordkeeping and Related Services Agreement (the “Recordkeeping Agreement”).

Each capitalized term used herein shall have the meaning ascribed to such term under the Recordkeeping Agreement unless otherwise defined herein orthe context clearly indicates otherwise.

Article 2. Trust

The Trust shall consist of (i) an initial contribution of money or other property acceptable to Trustee in its sole discretion, made by Sponsor or transferredfrom a previous trustee under the Plan, (ii) such additional sums of money or other property acceptable to Trustee in its sole discretion, as shall from timeto time be delivered to Trustee under the Plan, (iii) all investments made therewith and proceeds thereof, and (iv) all earnings and profits thereon, less thepayments that are made by Trustee as provided herein. Trustee hereby accepts the Trust and shall be accountable for the assets received by it, subject tothe terms hereof. Sponsor and Named Fiduciary of the Plan retain the right to hold other Plan assets in a trust or insurance contract separate and apartfrom the Trust, and Trustee shall have no responsibilities with respect to such trust or insurance contract except as specifically set forth herein. Anysuccessor to all or substantially all of Trustee’s trust business as described in Section 9.4 and any successor trustee appointed pursuant to Section 9.4 tothe extent such successor agrees to serve as trustee hereunder shall, absent Sponsor’s written indications to the contrary, become Trustee hereunder.

Article 3. Exclusive Benefit and Reversion of Sponsor Contributions

Except as provided under applicable law, no part of the Trust may be used for, or diverted to, purposes other than the exclusive benefit of the Participantsin the Plan or their beneficiaries or the reasonable expenses of Plan administration. No assets of the Plan shall revert to Sponsor, except as specificallypermitted by the terms of the Plan.

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Article 4. Investment of Trust

Trustee shall be responsible for providing services hereunder solely with respect to those investment options set forth in Attachment A hereto which havebeen designated by the Named Fiduciary in its sole discretion. Although the Named Fiduciary retains sole discretion as to the investment options for thePlan, Trustee shall not, absent its written consent, be required to provide services with respect to other investment options that the Named Fiduciary seeksto add to the Trust. Except where stated otherwise in this Trust Agreement by explicit reference to Plan assets being held outside the Trust, (i) allobligations of Trustee hereunder (including all services to be performed by Trustee) with respect to the Plan shall be performed solely with respect to theinvestment options set forth in the Recordkeeping Agreement or herein, and (ii) no other investments that may be held under a separate trust or insuranceproduct with respect to the Plan shall be considered by Trustee in its performance of its obligations. Trustee shall be considered a fiduciary withinvestment discretion only with respect to Plan assets that are invested in stable value investments managed by Trustee or collective investment fundsmaintained by Trustee for qualified plans, and where such investments vehicles are listed in the Recordkeeping Agreement or herein as availableinvestment options.

If the Sponsor or Named Fiduciary has determined that Sponsor Stock shall be included as an available investment option under the Trust, the provisionsof Attachment B hereto shall apply to such investments.

Article 5. Sponsor Direction; Trustee Powers

Trustee shall follow the terms of this Trust Agreement except as otherwise required by law. Sponsor hereby directs Trustee to exercise the followingpowers and authority in Trustee's role as directed trustee as necessary to carry out its responsibilities under this Trust Agreement:

1.  Subject to the ongoing direction of Participants and/or appropriate Plan fiduciaries (as described herein), sell, exchange, convey,transfer, or otherwise dispose of any property held in the Trust, by private contract or at public auction. No person dealing with Trustee shall bebound to see to the application of the purchase money or other property delivered to Trustee or to inquire into the validity, expediency, orpropriety of any such sale or other disposition.

2.    Cause securities or other property held as part of the Trust to be (i) registered in Trustee's own name, in the name of one or more of itsnominees, or in Trustee's account with the Depository Trust Company of New York, or (ii) held in bearer form, but the books and records ofTrustee shall at all times show that all such investments are part of the Trust.

3.    Keep that portion of the Trust in cash or cash balances as the Named Fiduciary or Administrator may, from time to time, deem to be in thebest interest of the Trust.

4.    Make, execute, acknowledge, and deliver any and all documents of transfer or conveyance in order to carry out the powers herein granted.

5.    Borrow funds from a bank not affiliated with Trustee in order to provide sufficient liquidity to timely process Plan transactions whereSponsor or Named Fiduciary directs that investments requiring such liquidity be held in the Trust; provided that the cost of such borrowing shallbe allocated in a reasonable fashion to the investment fund(s) in need of liquidity. Sponsor acknowledges that it has received the disclosure onTrustee’s line of credit program and credit allocation policy and a copy of the text of Prohibited Transaction Exemption 2002-55 before executingthis Trust Agreement if applicable.

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6.    In accordance with this paragraph, (i) settle, compromise, or submit to arbitration any claims, debts, or damages due to or arising from theTrust, (ii) commence or defend suits or legal or administrative proceedings, (iii) represent the Trust in all suits and legal and administrativehearings, and (iv) pay all reasonable expenses arising from any such action from the Trust if not paid by Sponsor. Trustee shall take action onbehalf of the Trust with respect to any claim or dispute relating to the Trust only upon the written direction of the relevant fiduciary (which, forthis purpose, shall be the fiduciary designated in writing by the Named Fiduciary for such purpose, and in the absence of such designation, shallbe the Named Fiduciary). In the absence of such a direction, Trustee shall have (i) no authority to take action with respect to such claim or disputeeven as to ministerial, nondiscretionary acts (for example, without limitation, the execution and delivery on behalf of the Trust of forms,pleadings, agreements, or other documents in connection with (A) the commencement, prosecution, or defense of a claim or dispute in litigation,arbitration, or other proceedings, (B) the settlement or compromise of a claim or dispute, or (C) the joining or opting out from a class action), (ii)no duty to request that the relevant fiduciary provide a direction or to question any direction of the relevant fiduciary in connection with any suchclaim or dispute, and (iii) no duty to act upon, consider, or respond to demands by Plan Participants or anyone other than the relevant fiduciary inconnection with any claim or dispute.

7.    Employ legal, accounting, clerical, and other assistance as may be required in carrying out the provisions of this Trust Agreement and paytheir reasonable expenses and compensation from the Trust if not paid by Sponsor.

8.    As directed by the Named Fiduciary or other authorized fiduciary from time to time, invest all or any part of the assets of the Trust ininvestment contracts and short term investments (including interest-bearing accounts with Trustee or money market mutual funds advised byaffiliates of Trustee) and in any collective investment trust or group trust, including any collective investment trust or group trust maintained byTrustee, which then provides for the pooling of the assets of plans described in Section 401(a) and exempt from tax under Section 501(a) of theCode, or any comparable provisions of any future legislation that amends, supplements, or supersedes those sections, provided that suchcollective investment trust or group trust is exempt from tax under the Code or regulations or rulings issued by the IRS. The provisions of thedocument governing such collective investment trusts or group trusts, as it may be amended from time to time, shall govern any investmenttherein and are hereby made a part of this Trust Agreement.

9.    Do all other acts, although not specifically mentioned herein, as Trustee may deem necessary to carry out any of the foregoing directions orresponsibilities under this Trust Agreement seeking further direction or instruction from Sponsor or other appropriate fiduciary where, and to theextent, Trustee is required as a directed trustee to do so.

Article 6. Services to Be Performed

6.1 Accounts. Trustee shall keep accurate accounts of all investments, receipts, disbursements, and other transactions hereunder, and shall report thevalue of the assets held in the Trust as of each Reporting Date. Within 30 days following each Reporting Date or within 60 days of a Reporting Datecaused by the resignation or removal of Trustee, Trustee shall file with the Administrator a written account setting forth (i) all investments, receipts,disbursements, and other transactions effected by Trustee between the Reporting Date and the prior Reporting Date, and (ii) the value of the Trust as ofthe Reporting Date.

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Except as otherwise required under ERISA, upon the expiration of 6 months from the date of filing such account, Trustee shall have no liability or furtheraccountability with respect to the propriety of its acts or transactions shown in such account (or any Participant-level report provided to a Participant),except with respect to such acts or transactions as to which a written objection shall have been filed with Trustee by Sponsor or any Participant withinsuch 6-month period.

6.2 Nature of Services. All services are of a directed nature to be performed within the framework of Sponsor’s written directions regarding the Plan’sprovisions, guidelines and interpretations, and Trustee will have no discretionary authority or responsibility for (i) any Plan’s management oradministration, or (ii) investment of a Plan’s assets. The relationship of Trustee to the Plan(s) will be that of a directed trustee. Trustee does not provide,and Sponsor shall not construe any services as, tax or legal advice. Sponsor must obtain its own legal and tax counsel for advice on Plan designappropriate for its specific situation and on legal and tax issues pertaining to the administration of its Plans. Services will be provided by Trustee, itsagents, subcontractors, or affiliates; provided that Trustee shall be responsible for the performance of such services under this Agreement by its agents,subcontractors or affiliates to the same extent as if such Services had been performed by Trustee. Where specifically noted herein, certain services may beprovided pursuant to one or more other contractual agreements or relationships.

Article 7. Expenses

All expenses of Trustee relating directly to the acquisition and disposition of investments constituting part of the Trust, all taxes of any kind whatsoeverthat may be levied or assessed under existing or future laws upon or in respect of the Trust or the income thereof, and any other reasonable expenses ofPlan administration as determined and directed by the Administrator, may be a charge against and paid from the appropriate Participants' accounts.

Article 8. Indemnification and Co-Fiduciary Liability

8.1 Indemnification. Sponsor shall indemnify Trustee with respect to any third-party claims or regulatory proceedings asserted or commenced againstTrustee to the extent such claim or proceeding is the result of any act done, or an act failed to be done, by any individual or person with respect to thePlans or Trust, excepting only those Losses asserted as part of such claim or proceeding that result from Trustee's negligence or willful misconduct under,or breach of the terms of, this Trust Agreement. Trustee shall indemnify Sponsor with respect to any third-party claims or regulatory proceedings assertedor commenced against Sponsor to the extent Losses asserted as part of such any such claim or proceeding result from Trustee’s negligence or willfulmisconduct under, or breach of the terms of, this Trust Agreement. Any reference to Sponsor or Trustee as an indemnified Party shall be deemed toinclude their respective directors, officers, affiliates, and subsidiaries.

8.2 Co-Fiduciary Liability. Trustee shall not be liable for any loss or expense arising from any act or omission of another fiduciary under the Plan exceptas provided in Section 405(a) of ERISA.

8.3 Appointment of Investment Manager. This Section is intended to authorize appointment of an investment manager as contemplated in Section402(c)(3) of ERISA. Sponsor may appoint an investment manager with respect to some or all of the assets of the Trust in connection with outsidemanaged separate investment funds or for other purposes as directed by the Sponsor. The appointment of any investment manager shall be made by anofficer of Sponsor or other named fiduciary authorized by a resolution of Sponsor's board of directors to make such appointments. The authority of theinvestment manager shall not begin until Trustee receives from Sponsor notice satisfactory to Trustee that the investment manager has been appointed andthat the investment manager has acknowledged in writing that with respect to the

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relevant assets he, she or it is a fiduciary with respect to the Plan within the meaning of ERISA. The investment manager's authority shall continue untilTrustee receives similar notice that the appointment has been rescinded. By notifying Trustee of the appointment of an investment manager, Sponsor shallbe deemed to warrant that such investment manager meets the requirements of Section 3(38) of ERISA, but Trustee may demand independent evidencethat any investment manager meets those requirements. The assets with respect to which a particular investment manager has been appointed shall besegregated from all other assets held by Trustee under this Trust Agreement and the investment manager shall have the duty and power to direct Trusteein every aspect of their investment. Trustee shall follow the directions of an investment manager regarding the investment and reinvestment of the Trust,or such portion thereof as shall be under management by the investment manager, and shall be under no duty or obligation to review any investment to beacquired, held or disposed of pursuant to such directions nor make any recommendations with respect to the disposition or continued retention of anysuch investment. Trustee shall have no liability or responsibility for acting without question on the direction of, or failing to act in the absence of anydirection from, an investment manager, unless Trustee has knowledge that by such action or failure to act it will be participating in or undertaking toconceal a breach of fiduciary duty by that investment manager. Upon request, Trustee shall execute appropriate powers of attorney authorizing aninvestment manager appointed hereunder to exercise the powers and duties of trustee. Trustee may rely upon any order, certificate, notice, direction orother documentary confirmation purporting to have been issued or given by an investment manager which Trustee believes (i) to be genuine, and (ii) tohave been issued or given by such investment manager. An investment manager shall certify in a timely manner, at the request of Trustee, the value ofany securities or other property held in any fund managed by such investment manager, and such certification shall be regarded as a direction with regardto such valuation. Trustee shall be entitled to conclusively rely upon such valuation. Any oral direction shall be followed by a written confirmation assoon as practical. Trustee shall follow the procedures established by Sponsor to validate such oral directions.

Article 9. Resignation or Removal of Trustee; Termination

9.1 Duration. This Trust shall continue in effect without limit as to time, subject, however, to the provisions hereof relating to amendment, modification,and termination of this Trust Agreement.

9.2 Resignation and Removal. Trustee may resign, and Sponsor may remove Trustee, in either case by terminating this Trust Agreement upon at least180 days’ prior written notice to the other; provided, however, that the receiving party may agree, in writing, to a shorter notice period.

9.3 Failure to Appoint Successor . If, by the termination date, Sponsor does not notify Trustee in writing as to the individual or entity to which the assetsand cash are to be transferred and delivered, Trustee may bring an appropriate action or proceeding for leave to deposit the assets and cash in a court ofcompetent jurisdiction. Sponsor shall reimburse Trustee for all costs and expenses of the action or proceeding including, without limitation, reasonableattorneys' fees and disbursements.

9.4 Successor Trustee. If the office of trustee becomes vacant for any reason, Sponsor may in writing appoint a successor trustee under this TrustAgreement. The successor trustee shall have all of the rights, powers, privileges, obligations, duties, liabilities, and immunities granted to Trustee underthis Trust Agreement. The successor trustee and predecessor trustee shall not be liable for the acts or omissions of the other with respect to the Trust. Asof the date the successor trustee accepts its appointment under this Trust Agreement, title to and possession of the Trust assets shall immediately vest inthe successor trustee without any further action on the part of the predecessor trustee, except as may be required to evidence such transition. Thepredecessor trustee shall execute all instruments and do all acts that may be

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reasonably necessary and requested in writing by Sponsor or the successor trustee to vest title to all Trust assets in the successor trustee or to deliver allTrust assets to the successor trustee. Any successor to Trustee or successor trustee, either through sale or transfer of the business or trust department ofTrustee or successor trustee, or through reorganization, consolidation, or merger, or any similar transaction of either Trustee or successor trustee, shall,upon consummation of the transaction, become the successor trustee under this Trust Agreement.

Article 10. Inclusion of Additional Terms

Both Trustee and Sponsor agree to the Sections or Articles of the Recordkeeping Agreement pertinent to the Plans included in the Trust that are (i) underthe headings of “Fees”, “Taxes”, “Confidentiality; Safeguarding of Data”, “Termination Assistance Services”, “Audit” or “Type II SOC” (as applicable)”,“Proprietary Rights”, “Compliance with Laws”, “Plan Benefits Litigation”, “Limitation on Damages”, “Client Responsibilities”, “Disputes”,“Amendments” “Electronic Nature of Services”, “Mutuality of Drafting”, “Fidelity Not Insurer, Guarantor”, “Duty to Mitigate Damages”, “No Waiver”,“Notice”, “Warranties”, “Severability”, “Publicity”, “Entire Agreement”, “Rules of Construction; Conflicts”, “Disclaimer”, “Survival”, “Counterparts”,“Force Majeure”, “Assignment”, and “Disabling Codes” in the body of the Recordkeeping Agreement, or (ii) included in Schedule B-1, Part II (DCTerms and Conditions) to the Recordkeeping Agreement, as though such provisions were contained in this Trust Agreement, mutatismutandis(including,without limitation, revising where appropriate references to “Fidelity” to refer to “Trustee”, references to “Client” to refer to “Sponsor”, and references tothe Recordkeeping Agreement to refer to this Trust Agreement) except to the extent this Trust Agreement clearly provides otherwise. For purposes ofclarity, where a particular provision (i) assigns to Fidelity a general obligation (such as the duty to protect Client’s Confidential Information), or (ii) limitsor disclaims responsibility on the part of Fidelity, such duty, limitation or disclaimer shall be similarly applied to Trustee whereas the inclusion of anyprovision describing Fidelity’s responsibility for performing a particular service under the Recordkeeping Agreement should not be read as imposing aduplicative requirement that Trustee provide, or be responsible for, that same service. Similarly, duties and responsibilities assigned or reserved to Clientunder such sections shall be deemed to apply to Sponsor hereunder.

Article 11. Governing Law

The validity, construction, and effect of this Trust Agreement shall be governed by and interpreted in accordance with the laws of the Commonwealth ofMassachusetts (without regard to its conflicts-of-laws or choice-of-law provisions), except to the extent those laws are superseded under Section 514 ofERISA. Trustee is not a party to the Plan, and in the event of any conflict between the provisions of the Plan and the provisions of this Trust Agreement,the provisions of this Trust Agreement shall control.

Article 12. Electronic Signature

In the event the Parties have agreed to utilize an electronic signature process, each Party represents that its electronic signature below is intended toauthenticate this writing and to have the same force and effect as a manual signature.

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By signing below, the Parties agree to the terms of this Trust Agreement and the undersigned represent that they are authorized to execute thisTrust Agreement on behalf of the respective Parties.

Oceaneering International, Inc.   Fidelity Management Trust CompanyBy:     /S/ DAVID K. LAWRENCE           By:     /S/ P.C. BERNDT            Name:     David Lawrence               Name:     P.C. Berndt                Title:     Sr. V.P., General Counsel & Secretary       Title:     Senior Vice President, WI RelMgmt    Date:     12/13/2018 | 4:18 PM EST           Date:     12/13/2018 | 3:13 PM PST        

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        Exhibit 21.01         

SUBSIDIARIES OF OCEANEERING INTERNATIONAL, INC.         

Subsidiaries  Percentage of Ownership by

Oceaneering International, Inc.   Jurisdiction of OrganizationOceaneering Angola, S.A.   45%   AngolaOceaneering Australia Pty Limited   100%   AustraliaMarine Production Systems Do Brasil Ltda.   100%   BrazilGrayloc Products Canada Ltd   100%   CanadaMarine Production Systems, Ltd.   100%   DelawareOceaneering Canada, Ltd.   100%   DelawareOceaneering Mobile Workforce LLC   100%   DelawareSolus Ocean Systems, Inc.   100%   DelawareOceaneering Ghana Limited   80%   GhanaC & C Technologies, Inc.   100%   LouisianaOceaneering Holdings Sarl   100%   LuxembourgOceaneering International Holdings LLC SCS   100%   LuxembourgOceaneering Luxembourg Sarl   100%   LuxembourgSolus Oceaneering (Malaysia) SDN. BHD.   49%   MalaysiaOceaneering Services (Nigeria) Ltd.   40%   NigeriaOceaneering AS   100%   NorwayOceaneering Asset Integrity AS   100%   NorwayOceaneering Rotator AS   100%   NorwayOceaneering Senegal SARL   100%   SenegalOceaneering International PTE Ltd.   100%   SingaporeOceaneering International GmbH   100%   SwitzerlandGrayloc Products L.L.C.   100%   TexasNorse Cutting & Abandonment Inc.   100%   TexasOceaneering International Holdings LLC   100%   TexasOceaneering International Dubai, L.L.C.   49%   United Arab EmiratesOceaneering Mobile Workforce Limited   100%   United Arab EmiratesOceaneering OIS Company - W.L.L.   49%   United Arab EmiratesGrayloc Products Ltd.   100%   United KingdomOceaneering International Services Limited   100%   United KingdomOceaneering Marine Technologies, Ltd.   100%   VanuatuEcosse Subsea Limited   100%   United Kingdom

Exhibit 23.01

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements:

(1) Registration Statements on Form S-8 Reg. Nos. 333-98211 and 333-174078 pertaining to the Oceaneering International, Inc.Retirement Investment Plan;

(2) Registration Statements on Form S-8 Reg. No. 333-166612 and 333-217691 pertaining to the 2010 Incentive Plan ofOceaneering International, Inc.; and

(3) Registration Statement on Form S-3 Reg. No. 333-222774 pertaining to Oceaneering International, Inc. senior debt securities

of our reports dated February 28, 2019 , with respect to the consolidated financial statements of Oceaneering International, Inc. and theeffectiveness of internal control over financial reporting of Oceaneering International, Inc. included in this Annual Report (Form 10-K) ofOceaneering International, Inc. for the year ended December 31, 2018 .

/S/ E RNST & Y OUNG LLP

Houston, TexasFebruary 28, 2019

Exhibit 31.01CERTIFICATION

I, Roderick A. Larson , principal executive officer of Oceaneering International, Inc., certify that:

1. I have reviewed this Annual Report on Form 10-K of Oceaneering International, Inc. for the year ended December 31, 2018 ;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material factnecessary to make the statements made, in light of the circumstances under which such statements were made, not misleading withrespect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all materialrespects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in thisreport;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange ActRules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under oursupervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made knownto us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designedunder our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusionsabout the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based onsuch evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant'smost recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or isreasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financialreporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing theequivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reportingwhich are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financialinformation; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in theregistrant's internal control over financial reporting.

     

February 28, 2019   By: /S/ R ODERICK A . L ARSON

    Roderick A. Larson    President and Chief Executive Officer      (Principal Executive Officer)

Exhibit 31.02CERTIFICATION

I, Alan R. Curtis , principal financial officer of Oceaneering International, Inc., certify that:

1. I have reviewed this Annual Report on Form 10-K of Oceaneering International, Inc. for the year ended December 31, 2018 ;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material factnecessary to make the statements made, in light of the circumstances under which such statements were made, not misleading withrespect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all materialrespects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in thisreport;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange ActRules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under oursupervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made knownto us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designedunder our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusionsabout the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based onsuch evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant'smost recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or isreasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financialreporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing theequivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reportingwhich are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financialinformation; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in theregistrant's internal control over financial reporting.

     

February 28, 2019   By: /S/ A LAN R. C URTIS

    Alan R. Curtis

    Senior Vice President and Chief FinancialOfficer

      (Principal Financial Officer)

Exhibit 32.01

CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Oceaneering International, Inc. ("Oceaneering") on Form 10-K for the year ended December 31,2018 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Roderick A. Larson , principal executiveofficer, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations ofOceaneering.

       

Dated: February 28, 2019   By: /S/ RODERICK A. LARSON      Roderick A. Larson      President and Chief Executive Officer        (Principal Executive Officer)

Exhibit 32.02

CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Oceaneering International, Inc. ("Oceaneering") on Form 10-K for the year ended December 31,2018 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Alan R. Curtis , principal financial officer,certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations ofOceaneering.

       

Dated: February 28, 2019   By: /S/ A LAN R. C URTIS

      Alan R. Curtis

      Senior Vice President and Chief FinancialOfficer

        (Principal Financial Officer)