EXECUTIVE SEVERANCE PROGRAM
To establish a severance program for senior level executives of the company that recognizes the relatively more
difficult employment transition that occurs upon the termination of employment of higher paid individuals.
This policy applies to designated employees of Cooper Cameron Corporation, including operating groups,
divisions and plants.
Because senior level executive employees, to a greater extent than other salaried employees, serve at the pleasure
of the company and are decidedly "at will" - meaning that either the company or the executive may terminate the
employment relationship at any time for any reason without liability one to the other - a higher level of severance
benefits is appropriate. The reference to "at will" employment status does not represent a change in company
policy, but is referred to here only to avoid a misunderstanding.
The executive severance program is applicable to designated company executives whose active full time
employment is terminated by the company for reasons other than cause. To assist senior executives in
transitioning from one employment situation to another, the following severance compensation will be awarded in
the form of salary continuation upon the condition of signing a full and complete severance waiver and release in a
form acceptable to the company.
(An example of such a waiver and release is attached as Exhibit A.)
The salary continuation period includes the continuation of all applicable benefits and benefits programs according
to the respective program's terms and conditions (including employee contributions where required). No
additional payments will be made for holidays or vacations earned or occurring during the salary continuation
period. Bonus payments will be prorated to the date of original severance and determined on the basis of
bonuses actually paid to similarly situated employees. No further bonus entitlements will be earned during the