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Exhibit 10.1
 

ROWAN COMPANIES, INC.
2005 SHORT-TERM INCENTIVE PLANS

PROFIT SHARING PLAN
 
Eligibility          All qualifying corporate or drilling division employees
(approximately 330 total employees)

Measurement     Drilling segment EBITDA as a percentage of revenues in excess of
a minimum threshold
Criteria 
 
Award         Aggregate profit sharing amount based upon EBITDA allocated to
participants in proportion to Base Pay
 
Cap          Aggregate profit sharing amount may be capped at Board’s discretion

Base Pay      Normal salary/wage compensation, including any overtime, less any
bonus and value attributable to stock options
 

 
BONUS PLAN
 
Eligibility        Executive and other officers, managers and certain key
employees (approximately 80 total employees) arranged in six Tiers generally by
salary and/or  responsibility level

Measurement     Drilling EBITDA relative to Budget
Criteria 
 
Bonus Target     Bonus Target varies from 15-75% of Base Pay depending upon the
Tier

 
 
Award           Zero to 200% of Bonus Target
 

Committee      25-40% of Award is subject to Committee discretion (30% for
CEO/CAO):
Discretion
 
Offset         Any Bonus Award is offset by Profit Sharing Award

[Information omitted regarding target levels with respect to specific
quantitative or qualitative performance related-factors, or factors or criteria
involving confidential commercial or business information, the disclosure of
which would have an adverse effect on the registrant.]
 

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