EX-10.1



 Exhibit 10.1 
 SEPARATION AGREEMENT 
 This Separation Agreement (this
“Agreement”) is entered into by Gary T. Krenek (“Employee”) and Diamond Offshore Management Company (the “Company”). Employee and the Company are referred to individually herein as a “Party” and collectively
as the “Parties.” 
 WHEREAS, Employee and the Company entered into that certain Employment Agreement dated
December 15, 2006 (“Employment Agreement”); and 
 WHEREAS, the Parties have agreed that Employee’s
employment with the Company shall terminate effective on May 3, 2016; 
 NOW, THEREFORE, for and in consideration of the
mutual promises, covenants and obligations contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Employee and the Company agree as follows: 

1. Separation of Employment. Employee’s employment with the Company shall end at the close of business on May 3, 2016
(the “Separation Date”). Employee shall resign all officer positions with the Company effective on the Separation Date. 
 2. Benefits. Subject to any applicable requirements of Sections 3 and 16 below, the Company shall pay or provide Employee the following: 

 

	 	(a)	Commencing on the Company’s first payroll period following the later of the Separation Date or effective date of the release described in Section 3 below (the
“Effective Date”), and continuing on subsequent regularly-scheduled payroll periods, but no less frequently than on a monthly basis, the Company will pay Employee 12 months of his current base salary (for a total of $458,609.00), less
withholdings and deductions in accordance with applicable law. In the event of Employee’s death prior to the full payment of such amount, the remaining unpaid amount shall be paid to Employee’s estate in a lump sum.


  

	 	(b)	 After the Separation Date, Employee’s eligibility for continuation of coverage under the Company’s group medical, dental and vision insurance
plans normally would be governed exclusively by the continuation coverage provisions of such plans and the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”). Pursuant to this Agreement, however, during any portion of the
period, beginning on the first day of the month immediately following the Separation Date and ending two years later, that Employee and his spouse/family participate in a Company group medical, dental or vision insurance plan through COBRA, the full
COBRA premium for such medical, dental and vision insurance coverage for Employee and his spouse/family dependents will be paid by the Company promptly to insure that such insurance coverage continues without interruption or lapse of coverage;
provided, however, that if the continued medical, dental and vision benefits are discriminatory so that such benefit would be taxable to Employee, then the premium will be paid by Employee on an after-tax basis and the Company shall reimburse
Employee for such payments in each following month so that such benefits will not be taxable to the Employee under Section 105(h) of the Internal Revenue Code of 1986, as amended (the “Code”). The Company’s obligation to make
COBRA payments shall be discontinued to the extent Employee is eligible to receive comparable coverage from a subsequent employer and/or except to the extent the 










	 	
subsequent employer’s plan does not cover the pre-existing conditions of the Employee or a previously covered member of the Employee’s family. The Company and Employee agree that
Employee’s “qualifying event” for the purposes of COBRA coverage occurs on the Separation Date. 

  

	 	(c)	On the Separation Date, all unvested Stock Appreciation Rights (“SARs”) awarded to Employee shall vest, and all of Employee’s vested stock options and
SARs shall be exercisable by him as provided for in the Diamond Offshore Drilling, Inc. Equity Incentive Compensation Plan (the “Option Plan”) and the award certificates related thereto. 


 

	 	(d)	Within 30 days after the later of the Separation Date and Effective Date, the Company will pay Employee a one-time payment of $37,500.00, less withholdings and
deductions in accordance with applicable law, as accrued special cash dividends applicable to unvested SARs that vest pursuant to Section 2(c). 

  

	 	(e)	Any amounts to which Employee is eligible under the Company’s Supplemental Executive Retirement Plan shall be paid to Employee in accordance with the terms of that
plan. 

  

	 	(f)	The Company shall pay Employee a one-time payment, less withholdings and deductions in accordance with applicable law, as a prorated bonus payment for fiscal year 2016
under the Diamond Offshore Drilling, Inc. Incentive Compensation Plan for Executive Officers (the “Bonus Plan”), to be paid on the same basis and at the same time that incentive payments for fiscal year 2016 are paid to other executive
officers of the Company under the Bonus Plan. 

  

	 	(g)	The Company shall pay Employee one-time payments, less withholdings and deductions in accordance with applicable law, as set forth below, upon and subject to the
accomplishment of the respective milestone event by Employee prior to the Separation Date. Each such payment earned by Employee shall be paid by the Company within 30 days after the later of the Separation Date and Effective Date.


  

	 	(i)	$140,000.00 upon the Company’s Annual Report on Form 10-K for its fiscal year ending December 31, 2015 (the “Annual Report”) being completed and
timely filed with the Securities and Exchange Commission on or before February 29, 2016, in compliance in all material respects with the requirements of the Securities Exchange Act of 1934, as amended, and applicable rules and regulations.


  

	 	(ii)	$140,000.00 upon completion of the following: 

  

	 	(1)	 The Company’s independent registered public accounting firm timely completing its audit of the Company’s consolidated balance sheets as of
December 31, 2015 and 2014, and its related consolidated statements of operation, comprehensive income, stockholders’ equity and cash flows 



  
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for each of the three years ended December 31, 2015, for inclusion in the Annual Report, and delivering to the Company’s Board of Directors the firm’s report on such audit,
expressing the firm’s unqualified opinion, containing no exceptions, that the Company’s consolidated financial statements present fairly in all material respects the consolidated financial position of the Company and its subsidiaries at
such balance sheet dates and the consolidated results of their operations and their cash flows for each of the three years ended December 31, 2015, in conformity with U.S. generally accepted accounting principles; and 


 

	 	(2)	The Company’s independent registered public accounting firm timely completing its audit, in accordance with the standards of the U.S. Public Company Accounting
Oversight Board, of the Company’s internal control over financial reporting as of December 31, 2015, and the firm timely delivering to the Company’s Board of Directors its report thereon that expresses an unqualified opinion, for
inclusion in the Annual Report. 

  

	 	(iii)	$50,000.00 upon the Company securing, in a manner reasonably satisfactory to the Chief Executive Officer, renewal of the Company’s commercial insurance policies
currently in force with its existing insurers, or new commercial insurance policies with the same or different insurers that provide for coverage reasonably comparable to the coverage under its existing policies and rates reasonably comparable to
such policies under the circumstances. 

  

	 	(iv)	$50,000.00 upon Employee being available to (1) instruct, mentor and transition his responsibilities to Employee’s successor as the new chief financial
officer of the Company (“Successor”), to the reasonable satisfaction of the Chief Executive Officer, such that Successor will be reasonably capable of functioning as the Company’s chief financial officer, including effectively
participating in the Company’s quarterly earnings conference calls; and (2) introduce Successor to at least seven of the Company’s top sell-side analysts at investment banking firms as the Company’s new chief financial officer.


  

	 	(v)	$50,000.00 upon Employee having attended (with Successor, if Successor is available) the Scotia Howard Weil Annual Energy Conference in New Orleans in March 2016, and
being available to introduce Successor to key buy-side analysts as the Company’s new chief financial officer. 

  

	 	(vi)	$50,000.00 upon Employee being available to introduce Successor as the Company’s new chief financial officer to applicable credit ratings analysts at Moody’s
Investors Services and Standard & Poor’s Rating Services. 

  

	 	(h)	 Nothing in this Agreement adversely affects any right Employee may have to: (i) base wages earned by Employee through the Separation Date, and
Employee shall be paid all such wages regardless of whether Employee signs this Agreement; (ii) earned, unused vacation, which will be paid by the Company after the Separation Date;
(iii)



  
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reimbursement for documented and approved business expenses incurred by Employee through the Separation Date for which Employee has not been reimbursed; and (iv) continuation insurance
coverage pursuant to the terms of Company-provided insurance plans or applicable law. Employee acknowledges that, except as set forth in this Agreement, the Company does not have, and will not have, any obligation to provide Employee at any time in
the future with any payments, benefits or considerations other than those recited in Section 2 of this Agreement. Employee agrees that some of the payments and benefits described in this Section 2 are not required under the Company’s
normal policies and procedures, and they provide adequate consideration for this Agreement. 

 3. Condition of
Full General Release. Employee acknowledges and agrees that, except for payments and benefits required to made as provided by law or pursuant to the terms of a plan, the Company’s obligation to pay Employee the amounts and to make the
arrangements provided in Section 2 shall be conditioned upon Employee (or, if deceased or disabled, his estate or legal guardian) executing and delivering to the Company a complete and global valid waiver and release of claims relating to or
arising out of his employment with, and termination of employment from, the Company substantially in the form attached hereto as Exhibit A or such other form acceptable to the Company (“Release”). Employee further acknowledges and agrees
that, in the absence of Employee’s execution and delivery to the Company of the Release, the Company shall have no obligation to Employee to make any payment or arrangement of such benefits as provided for in Section 2. 

4. No Admission of Wrongdoing. The existence and execution of this Agreement shall not be considered as an admission of any
wrongdoing, liability, violation, error, or omission by Employee or the Company. 
 5. Knowing and Voluntary Agreement.
Employee acknowledges and agrees that: 
  

	 	(a)	This Agreement is written in a manner that he understands. Under this Agreement, Employee is receiving things of value to which he would not otherwise be entitled to
receive. 

  

	 	(b)	He has been permitted and offered 21 days to consider and to sign this Agreement and he is hereby advised by the Company to consult with an attorney prior to executing
this Agreement. 

  

	 	(c)	Notwithstanding the other provisions of this Agreement, Employee is not agreeing, or being requested to agree, to release or waive any claims under the Age
Discrimination in Employment Act that may arise after the Effective Date. 

  

	 	(d)	He has received the opportunity to review and reflect on all terms of this Agreement, and has not been subject to any undue or improper influence interfering with the
exercise of his free will to execute this Agreement. He knowingly and voluntarily agrees to all of the terms set forth in this Agreement, and knowingly and voluntarily intends to be legally bound by them. 


  
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 6. Return of Property. Employee represents that on or before the Separation Date, he
shall return all Company property and documents (including copies of any documents) in his possession or control, including any building keys, laptop computer, personal digital assistant, telephone calling card(s), credit card(s), forms, files,
manuals, correspondence, memoranda, notes, e-mail, plans, business records, reports, financial data or records, personnel data, contracts, contract information, training materials, product mix or recipes, lists of employees, salary and benefits
information (except relating to Employee), lists of suppliers and vendors, brochures, catalogs, computer tapes and diskettes or other portable media, computer-readable files and data stored on any hard drive anywhere or other installed or portable
device, passwords, data processing reports, reports or recordings in any electronic or physical format, and any and all other documents or property which Employee has obtained pursuant to or by virtue of his employment with the Company.
Notwithstanding the foregoing, the Company agrees that Employee shall be entitled to: (1) keep his cell phone and current cell phone number and (2) retain personal mementos. Employee will take reasonable steps to return all paper files and
delete all electronic files containing non-public Company documents, but the Company acknowledges that, given Employee’s tenure with the Company, Employee might later discover documents or data at his residence and/or on his personal
computer(s), which he agrees not to use for any purpose and to immediately destroy or delete. 
 7. Nondisparagement.

  

	 	(a)	Employee agrees that he will not make or cause to be made any oral or written statements that are derogatory, defamatory, disparaging or harmful concerning the Company,
its policies or programs, or its past or present officers, directors, employees, agents, or business associates, including its past or present suppliers or vendors, or take any actions that are harmful to the business affairs of the Company and/or
its employees. Employee further agrees that he will not make or cause to be made any oral or written statements regarding the Company’s Confidential Information to any third party, including the general public (for example, via postings or
publications on the internet), the media, financial analysts, auditors, institutional investors, consultants, suppliers, vendors, or business associates, or agents and/or representatives of any of the foregoing, unless such statement is:
(i) expressly authorized by the Company in writing, or (ii) required by law. This provision is a material and substantial term of this Agreement. 


 

	 	(b)	Employee shall direct any third parties seeking an employment reference for Employee to the Company’s Vice President — Human Resources, who shall only provide
Employee’s dates of employment and position held and the information contained in any public release, unless Employee directs that the Company can furnish additional information. 


8. Cooperation/Transition. 
  

	 	(a)	 Employee agrees to reasonably cooperate with the Company and any of the other Released Parties (as defined below) in any matter related to the
Company’s business or activities, as follows: (i) to be available at mutually agreeable times, personally or by telephone, as necessary, at such reasonable times and without unreasonable interference with Employee’s employment or
personal activities, to provide such information and services as may be from time to time requested by the Company in connection with various matters in which Employee was involved during his employment with the




  
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Company or matters about which Employee has knowledge and expertise; except that no such services shall exceed four hours in any week and Employee’s obligation to be available for such
information and services shall expire six months after the Separation Date; and (ii) in all pending and future litigation (including claims asserted with administrative agencies) involving the Company or any of the other Released Parties, which
obligation includes Employee promptly meeting with counsel for the Company or the other Released Parties at mutually agreeable and reasonable times upon their request and providing testimony in court or upon deposition that is truthful, accurate,
and complete, according to information known to Employee. Employee further agrees to reasonably cooperate with the Company in connection with any investigation or review by any federal, state or local regulatory authority relating to events or
occurrences that transpired while Employee was employed with the Company. As used in this Agreement, the term “Released Parties” means Diamond Offshore Management Company, Diamond Offshore Drilling, Inc. and its/their past and present
parent, subsidiary and affiliate companies and its and their respective: (i) predecessors and successors; and (ii) past and present employees, owners, partners, shareholders, members, directors, officers, attorneys, assigns, agents, and
representatives, both individually and in their official capacities. 

  

	 	(b)	If Employee receives a subpoena seeking testimony, documents or information Employee may have related to the Company or any of its affiliates, Employee or
Employee’s attorney shall provide the Company with a copy of the subpoena prior to the date specified for compliance and no later than four business days following Employee’s receipt of it. In addition, as soon as possible prior to the
date of compliance required by such a subpoena, Employee shall notify the Company of the content of any information to be provided pursuant to such a subpoena and give the Company copies of all documents to be produced. 


 

	 	(c)	The Company shall reimburse Employee, upon receipt of proper documentation, for all reasonable and necessary expenses for air fare, accommodations, transportation,
meals and other out-of-pocket expenses incurred by Employee in providing the cooperation requested of him pursuant to this Section 8. 

 9. Confidential Information. Employee agrees that, unless otherwise required by law, Employee will forever keep secret and inviolate all Confidential Information which has come into Employee’s
possession, and Employee will not use the same for Employee’s own private benefit, or directly or indirectly for the benefit of others, and Employee will not disclose such Confidential Information to any other person. If Employee is legally
compelled (by deposition, interrogatory, request for documents, subpoena, civil investigative demand or similar process) to disclose any Confidential Information, Employee shall provide the Company with prompt prior written notice of such legal
requirement so that the Company may seek a protective order or other appropriate remedy and/or waive compliance with the terms of this Section 9. In any event, Employee may furnish only that portion of the Confidential Information which
Employee is advised by legal counsel is required, and Employee shall exercise Employee’s best efforts to obtain an order or assurance that confidential treatment will be accorded such Confidential Information that is disclosed. For purposes of
this Agreement, all confidential or proprietary information concerning the business and affairs of the Company, including all trade secrets, 

  
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knowhow and other information generally retained on a confidential basis by the Company concerning its products, methods, know-how, techniques, systems, software codes and specifications,
formulae, inventions and discoveries, business plans, pricing, product plans and the identities of and the nature of the Company’s dealings with its employees, suppliers and customers, whether or not such information shall, in whole or in part,
be subject to or capable of being protected by patent, copyright or trademark laws, shall constitute “Confidential Information.” Notwithstanding anything contained herein which may be to the contrary, the term “Confidential
Information” does not include any information which is excluded or excepted from the Employee’s obligations in Article 4.6 of the Employment Agreement. Employee will not disclose to any person (other than his tax, legal and financial
advisers who have a need to know) the terms of this Agreement without the prior written consent of the Company. 
 10.
Agreement Not to Solicit Employees/Former Employees. Employee acknowledges and re-affirms his agreement in Article 4.7 of his Employment Agreement that for a period of two years after his Separation Date, Employee shall not, directly or
knowingly indirectly, either as an executive, employer, independent contractor, consultant, agent, principal, partner, stockholder, officer, director, or in any other individual or representative capacity, either for his own benefit or the benefit
of any other person or entity: (a) solicit, recruit, induce, entice, encourage or in any way cause any officer, or manager reporting to such officer, holding such position at the time Employee ceases to be an employee of Company and who is or
was an employee of Company (or affiliate) within the six months prior to Employee’s Separation Date or thereafter to terminate his/her employment with Company (or such affiliate); or (b) directly solicit for hire, directly entice for hire,
hire, or directly recruit any officer, or manager reporting to such officer, toolpusher, rig superintendent or offshore installation manager (OIM) holding such position at the time Employee ceases to be an employee of Company and who is or was an
employee of Company within the six months prior to Employee’s Separation Date or thereafter. 
 11. Agreement Not to
Compete. Employee covenants and agrees that for a period of one year after his Separation Date, Employee shall not, individually or jointly with others, directly or indirectly, perform services for, prepare or take steps to prepare to perform
services for, or otherwise have any involvement with, in each case, whether as an officer, director, partner, consultant, security holder, owner, employee, independent contractor or otherwise, any entity that competes (whether directly or
indirectly) with the Company or its Subsidiaries in the Business (as hereinafter defined) in the world as of the date of the Separation Date (any such entity, a “Competitor”); provided, however, that Employee may in any event own up to a
2% passive ownership interest in any public entity or through a private, non-operating investment vehicle and may become employed by or otherwise affiliated with a Competitor if Employee works in a business unit thereof that does not compete with
the Company or any Subsidiary in connection with the Business and Employee does not communicate about the Business with any employee in a business unit of such Competitor that does so compete with the Company or any of its Subsidiaries. For purposes
hereof, the term “Business” shall mean the offshore oil and gas drilling business. Upon the written request of Employee, the Company’s President will reasonably determine whether a business or other entity constitutes a
“Competitor” for purposes of this Section 11; provided that the President may require Employee to provide such information as the Company reasonably determines to be necessary to make such determination; and provided, further that the
current and continuing effectiveness of such determination may be conditioned upon the accuracy of such information, and upon such other factors as the Company may reasonably determine. 

  
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 12. Breach Causing Irreparable Harm. The terms of this Agreement are contractual and
not merely recitals. Employee agrees that a breach by Employee of Sections 9, 10 or 11 of this Agreement will result in irreparable harm to the Company, and as such, upon such breach, without limiting the Company’s right to seek injunctive
relief allowed by law in a court of competent jurisdiction, the Company may pursue a claim against Employee for any damages suffered by the Company as a result of such breach. Employee’s agreements in Section 10 and 11 shall be extended
for the period of time which Employee violates one or more of these agreements and/or during any period during which the Company appeals from an order refusing to enforce any of these agreements or covenants. The tolling or extension period shall
not exceed 12 months under any circumstances. 
 13. Reliance; Complete Agreement; Modification. Employee and the Company
acknowledge that in executing this Agreement they have not relied on any statements, promises or representations made by the other Party except as specifically memorialized in this Agreement. This Agreement constitutes the complete agreement of the
Parties on or in any way related to the subject matter addressed herein. The Parties further agree that this Agreement supersedes the Employment Agreement unless otherwise stated herein. Additionally, Article 5.11 of the Employment Agreement is
incorporated by reference into this Agreement only insofar as it prohibits employee from seeking employment with the Company in the future. This Agreement cannot be modified or rescinded except upon the written consent of both Employee and the
Company. 
 14. Severability. If any provision of this Agreement is held to be unenforceable, such provision shall be
considered to be distinct and severable from the other provisions of this Agreement, and such unenforceability shall not affect the validity and enforceability of the remaining provisions. If any provision of this Agreement is held to be
unenforceable as written but may be made enforceable by limitation, then such provision shall be enforceable to the maximum extent permitted by applicable law. No failure by either Party at any time to give notice of any breach by the other Party
of, or to require compliance with, any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 

15. Governing Law; Venue; Jury Waiver. The Company and Employee agree that the law of Texas, without regard to conflicts of law
principles, shall exclusively govern any disputes between the Parties, including the validity, interpretation, and effect of this Agreement, as well as any other disputes arising out of or relating to the employment of Employee by the Company or the
termination of Employee’s employment. In the event of any such dispute between them, including any disputes arising out of this Agreement, Employee’s employment with the Company or work for the Company or the termination of Employee’s
employment, the Parties agree to exclusive, mandatory and sole jurisdiction and venue in Houston, Texas. The Parties agree and consent to have all such disputes resolved by a judge in the courts of Harris County, Texas. The Parties hereby waive all
challenges to personal jurisdiction and venue of such courts, including the claim or defense that such courts or locale constitute an inconvenient forum. The Parties agree that any disputes between them shall be adjudicated by a judge and,
therefore, the Parties waive a trial by jury. 
 16. Section 409A. 

 

	 	(a)	 Deferred Compensation. To the extent any payments or benefits under this Agreement constitute deferred compensation subject to Section 409A
of the Code and the regulations 



  
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thereunder (collectively “Section 409A”), this Agreement shall be administered, interpreted and construed to comply with the requirements of Section 409A. The portion of any
payment or benefit under this Agreement that is paid within the short-term deferral period or is otherwise exempt from Section 409A will not be treated as nonqualified deferred compensation and will not be aggregated with other nonqualified
deferred compensation plans or payments to the extent permitted under Section 409A. 

  

	 	(b)	Separate Payments and Payment Timing. Payment dates provided for in this Agreement will be deemed to incorporate grace periods that are treated as made upon a
designated payment date within the meaning of Section 409A and Treas. Regs. §1.409A-3(d). 

  

	 	(c)	General Section 409A Provisions. If Employee or the Company determines that any payments or benefits payable under this Agreement intended to comply with
Section 409A do not comply with Section 409A, Employee and the Company agree to amend this Agreement, or take such other actions as Employee and the Company deem reasonably necessary or appropriate, to comply with the requirements of
Section 409A (and any applicable relief provisions), while preserving the economic agreement of the Parties. If any provision of the Agreement would cause such payments or benefits to fail to so comply, such provision will not be effective and
will be null and void with respect to such payments or benefits, and such provision will otherwise remain in full force and effect. 

 All payments considered nonqualified deferred compensation under Section 409A and the regulations thereunder will be made on the date(s) provided herein and no request to accelerate or defer any
payment under this Section will be considered or approved for any reason whatsoever, except as permitted under Section 409A. Notwithstanding the foregoing, amounts payable hereunder which are not nonqualified deferred compensation, or which may
be accelerated pursuant to Section 409A, such as distributions for applicable tax payments, may be accelerated, but not deferred, at the sole discretion of the Company. 
 To the extent required to comply with Section 409A, all references in this Agreement to “separation of employment” or “separation” mean Employee’s “separation from
service” as that term is defined in Section 1.409A-1(h) of the Treasury Regulations. 
  

	 	(d)	Reimbursements and In-Kind Benefits. If any coverage (whether provided before or after Employee’s separation of employment) under medical, dental,
disability and/or life insurance plan, or the provision of any other benefit or perquisite, results in in-kind benefits or reimbursements to Employee that are (x) taxable for federal income tax purposes and (y) deferred compensation
subject to Section 409A, then such in-kind benefits or reimbursements shall be subject to the following rules: 

  

	 	(i)	The in-kind benefits to be provided, or the amounts to be reimbursed, shall be determined pursuant to the terms of the applicable benefit plan, and shall be limited, in
addition to any other applicable limitations, to Employee’s lifetime and the lifetime of Employee’s eligible dependents. 


  
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	 	(ii)	The amounts eligible for reimbursement, or the in-kind benefits provided, during any calendar year may not affect the expenses eligible for reimbursement, or the
in-kind benefits provided, in any other calendar year. 

  

	 	(iii)	Any reimbursement of an eligible expense shall be made on or before the last day of the calendar year following the calendar year in which the expense was incurred.


  

	 	(iv)	Employee’s right to an in-kind benefit or reimbursement is not subject to liquidation or exchange for cash or another benefit. 


 

	 	(e)	Specified Employee Status. If Employee is a specified employee (within the meaning of Section 409A) on the date of his separation from service, any payments
made with respect to such separation from service under this Agreement, and other payments or benefits under this Agreement that are subject to Section 409A, will be delayed in order to comply with Section 409A(a)(2)(B)(i) of the Code, and
such delayed payments or benefits will be paid in a lump sum upon expiration of such six-month period with all accrued interest calculated from the Separation Date until such lump sum payment and equal to the average six-month U.S. Treasury Rate for
the six-month period measured from the date of Employee’s separation from service. Any remaining payments and benefits due under the Agreement will be paid as otherwise provided in the Agreement. 


 

	 	(f)	Amounts Subject to Release. To the extent any amount payable hereunder is considered nonqualified deferred compensation subject to Section 409A and the
period during which Employee has discretion to execute or revoke the Release straddles two taxable years of Employee, then the Company will commence the payments and/or benefits in the second of such taxable years, and Employee may not, directly or
indirectly, designate the calendar year of any such payment. 

 Each of the undersigned acknowledges that he/it
(a) has read and fully understands all the terms and conditions of this Agreement, (b) has had sufficient time to consider this Agreement and to consult about it with an attorney, and (c) is signing it knowingly, voluntarily and
willingly. This Agreement is effective once signed by both Parties and can be executed in multiple identical counterparts and via email and fax. Unless the context expressly requires otherwise, when used in this Agreement, the words
“includes” and “including” are not limiting and shall be interpreted as if the phrase “without limitation” immediately followed any such word. 
 IN WITNESS WHEREOF, the Parties have executed this Agreement on the date specified below. 
  

					
	Date: 22 Feb 2016	  	 /s/ Gary T. Krenek
	  	
		  	 Gary T. Krenek

Employee
	  	


  
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	DIAMOND OFFSHORE MANAGEMENT COMPANY
	
	 /s/ Marc Edwards

	Name: Marc Edwards
	Title: President



  
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 Exhibit A 
 RELEASE 
 This Release (this “Release”) is entered into by
Gary T. Krenek (“Employee”) and Diamond Offshore Management Company, on behalf of itself and its parent, subsidiaries and affiliated companies (collectively the “Company”). 

WHEREAS, Employee and Company entered into that certain Settlement Agreement dated
                     (“Settlement Agreement”), and all defined terms used in this Release that are not expressly defined herein shall have
the meaning assigned such terms in the Settlement Agreement; 
 NOW, THEREFORE, for and in consideration of the mutual promises,
covenants and obligations contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Employee and Company agree as follows: 

1. Full General Release. In accordance with Section 3 of the Settlement Agreement, and as a condition to Company’s
obligation to pay Employee the amounts and to make the arrangements provided in Section 2 of the Settlement Agreement (except for payments and benefits required to made as provided by law or pursuant to the terms of a plan), Employee makes the
following promises, commitments and representations to the Company: 
 Employee, on behalf of himself and his spouse,
family members, heirs, successors, and assigns, hereby voluntarily, irrevocably, and unconditionally releases and forever discharges the Released Parties (as defined below), individually and collectively, from any and all claims, complaints,
demands, liabilities, or causes of action, of whatever kind or character, whether known or unknown or whether in law or in equity, which he now has or ever had against any of the Released Parties, in their individual, corporate of official
capacities, including: (i) those claims arising out of or in any way connected with his employment by the Company and/or the separation of that employment, (ii) those claims arising prior to the date of this Release, regardless of whether
such claims relate to Employee’s employment by the Company, and (iii) those claims arising out of or in any way connected with any employment relationship that he now has or ever had with any of the other Released Parties and/or the
separation of any such employment relationship. Without limiting the generality of the foregoing, the claims being released by Employee include the following: any claim against any of the Released Parties under the Civil Rights Act of 1866, the
Civil Rights Act of 1871, the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Worker Adjustment and Retraining Notification Act, the Family and Medical Leave
Act, the Employee Retirement Income Security Act, the Fair Labor Standards Act, the Texas Labor Code, any other federal, state or local statute, regulation, ordinance, law, or common law relating to employment or employment discrimination, any
alleged violation of any federal, state or local statutes, ordinances or common laws, tortious or contractual wrongful discharge or conduct, fraud, negligence, gross negligence, breach of express or implied contract, vicarious liability for the
torts of others. breach of the covenant of good faith and fair dealing, violation of public policy, tortious interference with contract or prospective 

  
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business relations, intentional or negligent infliction of emotional distress, fraud or misrepresentation, battery or assault, invasion of privacy, failure to pay wages, stock awards, bonuses,
commissions, incentive pay, benefits, vacation pay, profit sharing, severance or other compensation of any sort, and harassment, retaliation or discrimination on the basis of race, color, national original, religion, sex, sexual
preference/orientation, age, handicap or disability. 
 This Release is not intended to apply to any pension or insured
benefits, or any other equity grant for which Employee is eligible, pursuant to the terms of any employee benefit plan or stock/share option plan in which Employee is, or has been, a participant. The claims released in this Section 1 include
any that Employee may have or assert against the Released Parties in any jurisdiction whatsoever. 
 By signing this
Release, it is Employee’s intent to waive and release all claims and potential claims against the Released Parties, save and except a claim for unemployment benefits or any other claim that Employee cannot waive or release as a matter of law.
In the unlikely event that a claim or potential claim (save and except a claim that cannot be waived or released) has been omitted from this Release, Employee hereby assigns and conveys said claims and potential claims to the Company in exchange for
the Company’s obligations in the Settlement Agreement. 
 As used in this Release, the term “Released
Parties” means Diamond Offshore Management Company, Diamond Offshore Drilling, Inc. and its/their past and present parent, subsidiary and affiliate companies and its and their respective: (i) predecessors and successors; and (ii) past
and present employees, owners, partners, shareholders, members, directors, officers, attorneys, assigns, agents, and representatives, both individually and in their official capacities. 

2. No Admission of Wrongdoing. The existence and execution of this Release shall not be considered as an admission of any
wrongdoing, liability, violation, error, or omission by Employee or the Company. 
 3. Knowing and Voluntary. Employee
acknowledges and agrees that: 
  

	 	(a)	This Release is written in a manner that he understands. By executing and delivering this Release to the Company, Employee will receive things of value to which he
would not otherwise be entitled to receive. 

  

	 	(b)	He has been permitted and offered 21 days to consider and to sign this Release and he is hereby advised by the Company to consult with an attorney prior to executing
this Release. 

  

	 	(c)	Notwithstanding the other provisions of this Release, Employee is not agreeing, or being requested to agree, to release or waive any claims under the Age Discrimination
in Employment Act that may arise after the Effective Date of this Release. 


  
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	 	(d)	He has received the opportunity to review and reflect on all terms of this Release, and has not been subject to any undue or improper influence interfering with the
exercise of his free will to execute this Release. He knowingly and voluntarily agrees to all of the terms set forth in this Release, and knowingly and voluntarily intends to be legally bound by them. 


4. Effective Date. Employee has seven days following his execution of this Release to revoke this Release. This Release will not
become effective or enforceable until the seven-day revocation period has expired (the “Effective Date”). In the event that Employee exercises the right to revoke this Release, the Company will not have any obligations to pay Employee the
amounts and to make the arrangements provided in Section 2 of the Settlement Agreement (except for payments and benefits required to be made as provided by law or pursuant to the terms of a plan). If Employee chooses to revoke this Release, he
must do so in writing addressed and delivered by email to Aaron Sobel at asobel@dodi.com and by certified mail, return receipt requested to him at the Company’s corporate address in Houston, Texas. 

This Release can be executed in multiple identical counterparts and via email and fax. Unless the context expressly requires otherwise,
when used in this Agreement, the words “includes” and “including” are not limiting and shall be interpreted as if the phrase “without limitation” immediately followed any such word. 

Employee acknowledges that he (a) has read and fully understands all the terms and conditions of this Release, (b) has had
sufficient time to consider this Release and to consult about it with an attorney, and (c) is signing it knowingly, voluntarily and willingly. 
 IN WITNESS WHEREOF, the parties have executed this Release on the date specified below. 
  

							
	Date:	 	  
	    	  
	 	
		 		    	Gary T. Krenek	 	
		 		    	Employee	 	
			
		 		    	DIAMOND OFFSHORE MANAGEMENT COMPANY
				
		 		    	  
 Name:
	 	
		 		    	Title:	 	


  
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