EXHIBIT 10.1

 

2004 GLOBALSANTAFE MANAGEMENT ANNUAL INCENTIVE PLAN

 

The 2004 GlobalSantaFe Management Annual Incentive Plan (the “2004 MAIP”) became
effective on January 1, 2004, and the payment of bonuses thereunder, if any,
will be based on performance for the period January 1 through December 31, 2004,
at the discretion of the Compensation Committee (the “Committee”) of the Board
of Directors of GlobalSantaFe Corporation (the “Company”). The Committee is
presently expected to determine bonus amounts, if any, on or about February 28,
2005.

 

The purpose of the 2004 MAIP was to promote the interests of the Company and its
shareholders by providing eligible management employees with financial rewards
based upon the achievement of targeted performance. The 2004 MAIP was also
intended to help the Company attract and retain management employees.

 

Executive officers as well as other officers and managers were eligible to
participate in the 2004 MAIP. The target bonus as a percent of each individual
participant’s annual base salary ranged from 5% to 100%. The 2004 MAIP bonus was
capped at 200% of an individual’s annual base salary.

 

The 2004 MAIP performance measures for participants in the parent company and
the Company’s contract drilling services subsidiaries consisted of both
financial and operational targets. The weighting was 33.3% for the financial
measures, which were net income relative to peer companies and cost. The
weighting was 66.6% for the operational performance measures, which were safety,
downtime, environmental, and specified corporate objectives.

 

The 2004 MAIP performance measures for participants in the Company’s drilling
management services and oil and gas subsidiaries consisted of both financial and
operational targets. The weighting was 50% for the financial measures, which was
based on operating income, and 50% for the operational performance measures,
which were lost time incident rate and specified corporate objectives.

 

Bonuses payable under the 2004 MAIP are determined by the Committee, subject to
ratification by the independent members of the Board of Directors, with respect
to the Company’s Chief Executive Officer’s bonus.

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The following are the bonus targets for the Company’s executive officers for the
2004 MAIP. The percentages are expressed as a percentage of annual base salary.

 

Executive Officer

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2004 Management Annual

Incentive Plan Target Percentage

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Jon A. Marshall
President and
Chief Executive Officer

   100 %

W. Matt Ralls
Senior Vice President
and Chief Financial
Officer

   65 %

James L. McCulloch
Senior Vice President
and General Counsel

   60 %

Marion M. Woolie
Senior Vice President,
Operations

   65 %

Roger B. Hunt
Senior Vice President,
Marketing

   60 %

Cheryl D. Richard
Senior Vice President,
Human Resources

   60 %

Michael R. Dawson
Vice President and
Controller

   40 %

Executive Officer

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2004 ADTI (Drilling
Management Services)

Annual Incentive Plan

Target Percentage

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R. Blake Simmons
President,
Applied Drilling Technology Inc.

   60 %