Exhibit 10.3






EXHIBIT 10.3



Form Restricted Stock Unit Award

with three-year cliff vesting

(with additional provisions)




PRIDE INTERNATIONAL, INC.



2007 LONG-TERM INCENTIVE PLAN



RESTRICTED STOCK UNIT AGREEMENT




This Restricted Stock Unit Agreement (“Agreement”) between PRIDE INTERNATIONAL, INC. (the
“Company”) and                      (the “Grantee”), an employee of the Company or one of its
Subsidiaries, regarding an award (“Award”) of                      units representing Common Stock (as defined
in the Pride International, Inc. 2007 Long-Term Incentive Plan (the “Plan”), such units referred to
herein as “Restricted Stock Units”) awarded to the Grantee on                      (the “Grant Date”), such
number of Restricted Stock Units subject to adjustment as provided in Section 16 of the Plan, and
further subject to the Grantee’s timely execution and return of the attached “Acceptance Form” and
the following terms and conditions:




1. Relationship to Plan, Employment Agreement and Company Policy.



This Award is subject to all of the terms, conditions and provisions of the Plan in effect on
the date hereof and administrative interpretations thereunder, if any, adopted by the Committee.
Except as defined herein, capitalized terms shall have the same meanings ascribed to them under the
Plan. The Grantee acknowledges receipt of a copy of the Recoupment Policy and acknowledges that
this Agreement is subject to the terms and conditions of the Recoupment Policy, including, without
limitation, reduction or cancellation of the Award, reduction or cancellation of other awards of
equity of the Company granted after the adoption date of the Recoupment Policy or return of the
proceeds of the Award. For purposes of this Agreement:



(a) “Disability” has the meaning set forth in Section 1.409A-3(i)(4) of the Treasury
Regulations and shall be determined by the Committee in its sole discretion.



(b) “EBITDA” means, for the relevant period, the sum of the Company’s (i) net income (or net
loss), (ii) interest expense, (iii) income tax expense, (iv) depreciation expense and
(v) amortization expense, and the Company’s proportional interest in the sum of (i) net income (or
net loss), (ii) interest expense, (iii) income tax expense, (iv) depreciation expense and (v)
amortization expense of any of its subsidiaries, as presented in consolidated financial statements,
determined in accordance with Generally Accepted Accounting Principles (GAAP).




(c) “Employment” means employment with the Company or any of its Subsidiaries.




(d) “Employment Agreement” means any employment agreement between the Grantee and the Company.




(e) “Exchange Act” means the Securities Exchange Act of 1934, as amended.



(f) “Normal Dividend” means any dividend or distribution on the Common Stock other than a
Special Dividend.



(g) “Recoupment Policy” means the Company’s Incentive and Equity Compensation Recoupment
Policy as adopted by the Committee on August 13, 2009.


 


 









 





(h) “Retirement” means the Grantee’s termination of Employment on or after (i) attainment of
age 65 or, if applicable to the Grantee, any earlier age specified as the Grantee’s Normal
Retirement Age under the Pride International, Inc. Supplemental Executive Retirement Plan and (ii)
at least five years of continuous Employment as of the date of the Grantee’s termination.



(i) “Special Dividend” means (i) a cash distribution with respect to a share of Common Stock
such that the aggregate of all such distributions (A) when combined with any other cash
distributions to shareholders previously made during the fiscal year exceeds the adjusted net
income of the Company and its Subsidiaries for the preceding fiscal year or (B) when combined with
any other cash distributions to shareholders previously made during the fiscal year or during the
three prior fiscal years exceeds the adjusted net income of the Company and its Subsidiaries for
the four preceding years, or (ii) a non-cash distribution the value of which when combined with the
value of any other non-cash distribution to shareholders previously made during the fiscal year
exceeds 10% of the value of the total assets of the Company and its Subsidiaries. This definition
shall be applied in accordance with the regulations and guidance under PBGC Regulation §
4043.31(a).




2. Vesting Schedule.



(a) Subject to subparagraph (d) below, this Award shall vest in accordance with the following
schedule:



	 	 	 	 	 
	 	 	Percentage of	 
	Date Vested	 	Award Vested	 
	 
	 	 	 	 
	Third anniversary of Award Date
	 	 	100	%
	 
	 	 	 






(b) All shares of Restricted Stock Units subject to this Award shall vest, irrespective of the
limitations set forth in subparagraph (a) above or subparagraph (d) below, provided that the
Grantee has been in continuous Employment since the Grant Date, upon the occurrence of:




(i) a Change in Control;




(ii) the Grantee’s Disability or




(iii) the Grantee’s death.



In addition, provided that the Grantee has been in continuous Employment since the Grant Date,
in the event of the Grantee’s Termination (as defined in the Employment Agreement as in effect on
the Grant Date) during the period beginning on the date of a Performance Certification (as defined
below) and ending on the third anniversary of the Grant Date, all shares of Restricted Stock Units
subject to this Award shall vest, irrespective of the limitations set forth in subparagraph
(a) above.



(c) If the Grantee’s termination of Employment occurs due to Retirement prior to the date this
Award fully vests pursuant to subparagraph (a) above, the shares of Restricted Stock Units will
thereafter become payable to the same extent and at the same time as they would have become payable
under subparagraph (a) above or subparagraph (b)(i) above (provided that the Change in Control
constitutes a “change in control event” within the meaning of Section 1.409A-3(i)(5) of the
Treasury Regulations) as if the Grantee had remained in continuous Employment since the Grant Date;
provided, however, that if the Grantee’s Retirement occurs before the first anniversary of the
Grant Date, the Grantee’s shares of Restricted Stock Units as of the Grantee’s Retirement shall be
prorated by a fraction, the numerator of which shall be the number of full days of the Grantee’s
Employment during the period beginning on the Grant Date and ending on the first anniversary of the
Grant Date and the denominator of which shall be the number of days in the period beginning on the
Grant Date and ending on the first anniversary of the Grant Date, and the remaining Restricted
Stock Units shall be forfeited.


 


 









 





(d) No portion of this Award shall vest, and this Award shall be cancelled and forfeited in
its entirety as of the first anniversary of the Grant Date, unless the Company has positive EBITDA
in any calendar quarter for the calendar year in which occurred the Grant Date; provided, however,
that not more than 25% of such calendar quarter has elapsed prior to the Grant Date. If the
Committee, in its sole discretion, determines that the Company has had positive EBITDA as described
in the preceding sentence, the Committee shall certify such achievement in writing (the
“Performance Certification”) at any time after the Committee’s determination but no later than
March 1 of the year following the year in which occurred the Grant Date.



(e) Vesting of all or a portion of the Award pursuant to this Section 2 is subject to
cancellation due to violation of the Recoupment Policy, and if so cancelled, the Grantee shall
immediately forfeit the cancelled portion of the Award.




3. Forfeiture of Award.



Except as provided in any other agreement between the Grantee and the Company, if the
Grantee’s Employment terminates other than by reason of the Grantee’s Termination (as defined in
the Employment Agreement as in effect on the Grant Date), death, Disability or Retirement, all
unvested Restricted Stock Units as of the termination date shall be forfeited.




4. Registration of Units.



The Grantee’s right to receive the Restricted Stock Units shall be evidenced by book entry (or
by such other manner as the Committee may determine).




5. Dividend Equivalent Payments.



The Company will pay Dividend Equivalents for each outstanding Restricted Stock Unit as soon
as administratively practicable after Normal Dividends, if any, are paid on the Company’s
outstanding shares of Common Stock; provided, however, that (i) such payment shall be made no later
than March 15th following the year in which the dividends are paid and (ii) the Grantee must be in
Employment as of the date of such payment. Dividend Equivalents with respect to Special Dividends
(x) shall be subject to the same vesting schedule as the Restricted Stock Unit for which the
Dividend Equivalent is awarded and (y) shall be paid at the same time as the Restricted Stock Unit
for which the Dividend Equivalent is awarded is settled. Dividend Equivalents may be paid in the
form of cash, stock or other property, as determined by the Company in its sole discretion;
provided that any Dividend Equivalent payments shall be in compliance with Section 409A of the Code
and related Treasury authorities.




6. Shareholder Rights.



The Grantee shall have no rights of a shareholder with respect to shares of Common Stock
subject to this Award unless and until such time as the Award has been settled by the transfer of
shares of Common Stock to the Grantee.




7. Settlement and Delivery of Shares.



Payment of vested Restricted Stock Units shall be made within 70 days after the date that
vesting occurs, or, if later, within 15 days after the Performance Certification with respect to
any Restricted Stock Units that are subject to the requirements of Section 2(d). Settlement will
be made by payment in shares of Common Stock.



The Company shall not be obligated to deliver any shares of Common Stock if counsel to the
Company determines that such sale or delivery would violate any applicable law or any rule or
regulation of any governmental authority or any rule or regulation of, or agreement of the Company
with, any securities exchange or
association upon which the Common Stock is listed or quoted. The Company shall in no event be
obligated to take any affirmative action in order to cause the delivery of shares of Common Stock
to comply with any such law, rule, regulation or agreement.


 


 









 






8. Notices.



Unless the Company notifies the Grantee in writing of a different procedure, any notice or
other communication to the Company with respect to this Award shall be in writing and shall be:




(a) by registered or certified United States mail, postage prepaid, to Pride
International, Inc., Attn: Corporate Secretary, 5847 San Felipe, Suite 3300, Houston, Texas
77057; or




(b) by hand delivery or otherwise to Pride International, Inc., Attn: Corporate
Secretary, 5847 San Felipe, Suite 3300, Houston, Texas 77057.



Any notices provided for in this Agreement or in the Plan shall be given in writing and shall
be deemed effectively delivered or given upon receipt or, in the case of notices delivered by the
Company to the Grantee, five days after deposit in the United States mail, postage prepaid,
addressed to the Grantee at the address specified at the end of this Agreement or at such other
address as the Grantee hereafter designates by written notice to the Company.




9. Assignment of Award.



Except as otherwise permitted by the Committee, the Grantee’s rights under the Plan and this
Agreement are personal; no assignment or transfer of the Grantee’s rights under and interest in
this Award may be made by the Grantee other than by will or by the laws of descent and
distribution.




10. Withholding.



At the time of vesting of Restricted Stock Units or the delivery of shares of Common Stock
attributable to Restricted Stock Units, the amount of all statutory federal, state and other
governmental withholding tax requirements imposed upon the Company with respect to the vesting of
such Restricted Stock Units or the delivery of such shares of Common Stock attributable to
Restricted Stock Units shall be remitted to the Company or provisions to pay such withholding
requirements shall have been made to the satisfaction of the Committee. The Committee may make
such provisions as it may deem appropriate for the withholding of any taxes which it determines is
required in connection with this Award. The Grantee may pay all or any portion of the taxes
required to be withheld by the Company or paid by the Grantee in connection with all or any portion
of this Award by delivering cash, or by electing to have the Company withhold shares of Common
Stock that would have otherwise been delivered to Grantee, or by delivering previously owned shares
of Common Stock, having a Fair Market Value equal to the amount required to be withheld or paid.




11. Stock Certificates.



Certificates representing the Common Stock issued pursuant to the Award will bear all legends
required by law and necessary or advisable to effectuate the provisions of the Plan and this Award.
The Company may place a “stop transfer” order against shares of the Common Stock issued pursuant
to this Award until all restrictions and conditions set forth in the Plan or this Agreement and in
the legends referred to in this Section 11 have been complied with.


 


 









 






12. Successors and Assigns.



This Agreement shall bind and inure to the benefit of and be enforceable by the Grantee, the
Company and their respective permitted successors and assigns (including personal representatives,
heirs and legatees), except that the Grantee may not assign any rights or obligations under this
Agreement except to the extent and in the manner expressly permitted herein.




13. No Employment Guaranteed.



No provision of this Agreement shall confer any right upon the Grantee to continued
Employment.




14. Governing Law.



This Agreement shall be governed by, construed, and enforced in accordance with the laws of
the State of Texas.




15. Amendment.



This Agreement cannot be modified, altered or amended except by an agreement, in writing,
signed by both the Company and the Grantee.




16. Section 409A Compliance.



It is intended that the provisions of this Agreement satisfy the requirements of Section 409A
of the Code and the accompanying U.S. Treasury Regulations and pronouncements thereunder, and that
the Agreement be operated in a manner consistent with such requirements to the extent applicable.



For purposes of Section 409A of the Code, (a) if the Grantee is Retirement Eligible, the time
of settlement in Section 7 hereof constitutes a specified date within the meaning of Section
1.409A-3(a)(4) of the Treasury Regulations and is within the 90-day period described in Section
1.409A-3(b) of the Treasury Regulations and (b) if the Grantee is not Retirement Eligible, the time
of settlement in Section 7 hereof is within the short-term deferral period described in Section
1.409A-1(b)(4) of the Treasury Regulations. For purposes of this Section 16, “Retirement Eligible”
means that the Grantee will be eligible to terminate Employment by reason of Retirement prior to
the date such Retirement would qualify for short-term deferral treatment under Section 409A of the
Code.



If the Grantee is identified by the Company as a “specified employee” within the meaning of
Section 409A(a)(2)(B)(i) of the Code on the date on which the Grantee has a “separation from
service” (other than due to death) within the meaning of Section 1.409A-1(h) of the Treasury
Regulations, notwithstanding the provisions of Section 7 hereof, any transfer of shares payable on
account of a separation from service that are deferred compensation shall take place on the earlier
of (i) the first business day following the expiration of six months from the Grantee’s separation
from service, (ii) the date of the Grantee’s death, or (iii) such earlier date as complies with the
requirements of Section 409A of the Code.


 


 









 





This Agreement executed on behalf of the Company as of the date indicated below, contingent upon
the Grantee’s acceptance of the Agreement by execution and return of the attached Acceptance Form
no later than the date that is 30 days after the Grant Date:




	 	 	 	 	 	 	 
	PRIDE INTERNATIONAL, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By: 

	 	 	 	Date:	 	 
	 

	 
	 	 	 	 
	 

	Name: 	 	 	 	 	 
	 

	Title: 	 	 	 	 	 







[Acceptance Form Follows]




[Remainder of This Page Blank]



 


 









 





Acceptance Form




Grantee’s Acceptance of Award of Restricted Stock Units




Granted on                                         




The Grantee has until the date that is 30 days after the Grant Date to decide whether to
accept this Restricted Stock Unit Agreement and Award by signing this Acceptance Form and returning
this Acceptance Form to Lonnie Bane, Senior Vice President, Human Resources and Administration,
5847 San Felipe, Suite 3300, Houston, TX 77057, facsimile number: (713) 952-6916. The Restricted
Stock Unit Agreement and the Award will be cancelled immediately if this Acceptance Form is not
timely returned to the Company as described in the preceding sentence.



By accepting this Award, as evidenced by execution of this Acceptance Form, the Grantee hereby
acknowledges that the terms and provisions of the Recoupment Policy supersede and modify the terms
of this Award and this Award is subject to reduction, cancellation and/or recoupment pursuant to
the Recoupment Policy. Furthermore, the Grantee agrees that the terms and provisions of the
Recoupment Policy supersede and modify the rights the Grantee may have under the terms of any other
agreement between the Company and the Grantee.



The Grantee hereby accepts the foregoing Restricted Stock Unit Agreement and Award, subject to
the terms and provisions of the Recoupment Policy, the Plan and administrative interpretations
thereof.




	 	 	 	 	 
	GRANTEE:
	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 
	Grantee’s Signature
	 	 	 	 
	 
	 	 	 	 
	 

Grantee’s Name (Please Print)