Exhibit 10.4
 PARKER DRILLING COMPANY
INCENTIVE COMPENSATION PLAN
 (As Amended and Restated Effective January 1, 2009)
 SECTION 1  PURPOSE
 Company Plan
  LTIP
  SECTION 2  DEFINITIONS
 As used herein:2.1
    
    Affiliate shall mean any person or entity that is a member of a controlled group of
corporations or other entities with the Company, as described in Code Section 414.2.2
    
    Base Salary shall mean the aggregate amount of base wages and/or salary (but
excluding any bonus, disability pay, severance pay and other non-base compensation)
that is earned by a Participant during the applicable Plan Year in which the Participant
was eligible to participate in the Plan, as determined in accordance
with Section 3.2.3
    
    Beneficiary shall mean the beneficiary or beneficiaries designated by the
Participant, on a form provided by the Company, to receive any Bonus amount
distributable under the terms and conditions of the Plan after the Participants death.2.4
    
    Board of Directors or Board shall mean the Board of Directors of the Company.
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2.5
    
    Bonus shall mean the amount of incentive compensation earned by a Participant under
the Plan for a Plan Year, as determined in accordance with Section 4.2.6
    
    Cause shall mean (a) the Participants conviction by a court of competent
jurisdiction as to which no further appeal can be taken of a crime involving moral
turpitude or a felony or entering the plea of nolo contedereto such crime by the
Participant; (b) the commission by the Participant of a material and
demonstrable act of fraud or misrepresentation of or upon the Company or any
Affiliate; (c) the Participants gross negligence or willful misconduct in the performance
or nonperformance of Participants duties and responsibilities as an employee of the
Company or any of its Affiliates; (d) the knowing engagement by the Participant, without
the written approval of the Board or Committee, in any material activity that violates (i) a
confidentiality, non-solicitation, non-competition or other similar restrictive covenant
entered into between the Company (or one of its Affiliates) and such Participant, or (ii)
any Company policy or procedure that could result in a material adverse financial
or operational effect or expose the Company or its Affiliate to civil or criminal
liability, including without limitation, policies and procedures regarding compliance
with anti-bribery laws and other laws and regulations; but only under clauses (a), (b), (c)
or (d) (above), after (1) Participant has received written notice from the Company of
such breach or nonperformance (which notice must specifically identify the manner
and set forth specific facts, circumstances and examples of which the Company
believes Participant has breached the restrictive covenants or not substantially
performed Participants duties) and (2) Participants continued failure to cure such
breach or nonperformance within the time period set by the Board or Committee, but in
no event less than 10 calendar days after Participants receipt of such notice.2.7
    
    Change in Control of the Company means the occurrence of any one or more of the
following events:
 Exchange Act Person Outstanding
Company Stock Outstanding Company Voting Securities Merger
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Incumbent Board
     2.8
    
    Code shall mean the Internal Revenue Code of 1986, as amended.2.9
    
    Committee shall mean the Compensation Committee of the Board.
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2.10
    
    Company shall mean Parker Drilling Company or its successor in interest.2.11
    
    Disability shall mean that the Participant is entitled to receive long-term
disability (LTD) income benefits under the LTD plan or policy maintained by the
Company that covers the Participant. If, for any reason, the Participant is not covered
under such LTD plan or policy, then Disability shall mean a permanent and total
disability as defined in Code Section 22(e)(3) and Treasury regulations
thereunder. Evidence of such Disability shall be certified by a physician acceptable to
both the Company and the Participant. In the event that the parties are not able to
agree on the choice of a physician, each shall select one physician who, in turn, shall
select a third physician to render such certification.2.12
    
    Employee shall mean an individual who is designated on the payroll records of
the Company or its Affiliate as an employee.2.13
    
    Participant shall mean any officer or employee of the Company or its Affiliate who is
designated by the Committee as eligible to participate in the Plan for a Plan Year.2.14
    
    Plan shall mean this Parker Drilling Company Incentive Compensation Plan, as it
may be amended from time to time.2.15
    
    Plan Year shall mean the 12-month calendar year.
 SECTION 3  ELIGIBILITY
 3.1
    
    Individuals eligible to receive a Bonus pursuant to this Plan shall be such
Employees as the Committee shall at any time designate, in its discretion, in consultation
with senior management of the Company. The Committee, in consultation with senior
management, shall also designate the classification level at which each eligible
Employee shall participate. Eligibility for participation in the Plan, and the
classification
level that an Employee participates, shall be guided by the principle that the Participants
shall be Employees whose areas of responsibility provide them with a substantial
opportunity to significantly affect the economic profit of the Company or provide
them with an opportunity to significantly influence the long-term growth of the
financial performance of the Company.3.2
    
    Each Participant whose employment is terminated due to death or Disability
during a Plan Year shall be eligible for a Bonus based upon the Base Salary earned
by such Participant during the Plan Year prior to termination. Except as provided in the
preceding sentence, unless specifically provided otherwise by his employment
agreement with the Company, a Participant shall not be eligible to receive part or all of a
Bonus unless the Participant is employed by the Company or its Affiliate on the date the
Bonus payment is actually made. No Bonus shall vest in any Participant unless and until
paid to him by the Company. If a Participant: (a) violated a confidentiality,
non-solicitation, non-competition or similar restrictive covenant between the
Company (or one of its Affiliates) and such Participant, including violation of a
Company policy relating to such matters, or (b) engaged in willful fraud that causes
harm to the Company (or one of its Affiliates) or that is intended to manipulate the
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performance results of this Plan, including without limitation, any material breach of
fiduciary duty, embezzlement or similar conduct that results in a restatement of the
Companys financial statements (each of (a) or (b) shall be defined as Detrimental
Conduct), with such Detrimental Conduct occurring either during employment with the Company
(or its Affiliate) or within two (2) years after such employment terminates for any reason,
then, in such event, the following rules shall apply under this Plan with respect to such
Detrimental Conduct:
 Recapture Notice
    3.3
    
    The Committee may, in its sole and absolute discretion, terminate a Participants
participation in the Plan for Cause, at any time prior to the second anniversary of the
conclusion of the performance period applicable to any Bonus under the Plan. Additionally, if
payments hereunder have been made to such Participant, the Committee may, in its sole and
absolute discretion, direct the Company to send a Recapture Notice to such Participant.
Within ten (10) days after receiving a Recapture Notice from the Company, the Participant
shall deliver to the Company a cash payment in an amount equal to the net (after tax) cash
payment previously made to such Participant hereunder unless the Recapture Notice demands
repayment of a lesser
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sum. Notwithstanding the foregoing, this Section 3.3shall not apply after a Change in
Control.3.4
    
    If any provision of Section 3 or Section 4is determined in a final action to be
unenforceable or invalid under applicable law, such provision shall be enforced and applied
to the maximum extent permitted by applicable law, and shall automatically be deemed amended
in a manner consistent with its objectives to the extent necessary to conform to any
limitations imposed under applicable law.
 SECTION 4  DETERMINATION OF AMOUNT OF BONUS
 4.1
    
    The individual participation level shall be outlined in the notification to each Participant
regarding such Participants participation in the Plan. The participation level is based
upon a target Bonus, with the actual Bonus ranging from 0% (minimum) to 200% of
target (maximum). For instance, if the participation level is defined as 10%, the Bonus
range is from 0% to 20%. In the event a Participant changes levels during the Plan Year, the
potential Bonus may, at the discretion of the Committee in consultation with senior
management of the Company, be adjusted to reflect the number of months spent in each
level.4.2
    
    The Chief Executive Officer of the Company shall submit to the Committee recommended
criteria and target performance levels for each Participant
level for each Plan Year. The Committee will consider such recommendation and, after
consultation with senior management, may modify the criteria and/or the target
performance levels of the Company at which the Bonus awards may be earned for
such Plan Year. The Committee shall approve the target levels for each Plan Year
within the first ninety (90) days of the Plan Year. Upon approval by the Committee, such
target performance levels shall be announced to the Participants.
 SECTION 5  PAYMENT OF BONUS
 5.1
    
    Within sixty (60) days following the end of each Plan Year, the Chief Financial
Officer of the Company shall submit to the Committee a report on the Companys results
in achieving the target performance levels and the Bonus awards recommended by senior
management for such Plan Year based upon the target performance levels previously
approved by the Committee. The Committee shall then calculate the amount of
Bonus to be paid to each Participant based on the pre-established performance criteria
and target levels for such Plan Year. The Committee has the discretion to consider the
impact of any non-recurring item or related charge, write-up or write-down or any other
matter, and to take such item into account in order to adjust the total amount of the
award pool or specific award for any Participant for such Plan Year.5.2
    
    The Company shall pay the Bonus to each Participant as soon as practicable after
its calculation and approval by the Committee which is intended to be by March
15th of
the Plan Year following the Plan Year in which it was earned, but in no event later than
the end of the Plan Year containing such March 15th date. The Bonus payment shall
be
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paid in a cash lump sum by payroll check (with all applicable withholdings), except for
payments to or on behalf of Participants based on death or Disability.5.3
    
    If a Participants employment with the Company and its Affiliates terminates prior to
the end of a Plan Year, his eligibility to receive the Bonus shall be determined in
accordance with Section 3.2.5.4
    
    If a Participant is not living at the time his Bonus is payable to him in accordance
with the terms and conditions of the Plan, any Bonus which would have been payable
shall be paid to his Beneficiary as designated as described below in this Section
5.4.The Participant shall file with the Company a designation of one or more Beneficiaries to
whom benefits otherwise payable to the Participant shall be made in the event of his death
prior to the complete distribution of his Bonus. A Beneficiary designation shall be on the
form prescribed by the Company and shall be effective when received and accepted by the
Company. The Participant may, from time to time, revoke or change his Beneficiary
designation by filing a new designation form with the Company. The last valid designation
that was received and accepted by the Company prior to the Participants death shall be
controlling; provided, however, that no Beneficiary designation, or change or revocation
thereof, shall be effective unless received prior to the Participants death, and shall not
be effective as of a date prior to its receipt and acceptance by the Company.Notwithstanding any contrary provision of this Section 5.4, no Beneficiary
designation made by the Participant while he is married, other than one under which the
surviving lawful spouse of the Participant is designated as the sole 100% primary
Beneficiary, shall be valid and effective without the prior written consent of such spouse
to the designation of another primary Beneficiary on a form provided by the Company for
such purpose.If no valid and effective Beneficiary designation exists at the time of the Participants
death, or if no designated Beneficiary survives the Participant, or if such designation
conflicts with applicable law, the distribution of the Participants Bonus shall be made to
the Participants surviving lawful spouse, if any. If there is no surviving spouse, then
payment of the Bonus shall be made to the Participants estate.
 SECTION 6  ADMINISTRATIVE PROVISIONS
 6.1
    
    The Committee shall direct the administration of the Plan in all respects.6.2
    
    The Committee shall have full power to amend, modify, rescind, construe, construct and
interpret the Plan, including, without limitation, resolving any inconsistency, supplying
any omission and correcting any defect. Any action taken or decision made by
the Committee arising out of, or in connection with, the construction, administration,
interpretation or effect of the Plan or of any rules and regulations adopted
thereunder shall be conclusive and binding upon all Participants and all persons
claiming under or through a Participant.
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6.3
    
    The Committee may rely upon any information supplied to it by any officer of
the Company or an Affiliate, or by the Companys independent registered public
accountants or legal counsel, and may rely on the advice of such accountants or legal
counsel in connection with the administration of the Plan, and shall be fully
protected in relying upon such information or advice.6.4
    
    No Employee or officer of the Company or an Affiliate, or any member of the Board or
Committee, shall have any liability for any decision or action under the Plan if made or
done in good faith. The Company shall fully indemnify and defend each
director, Employee and officer of the Company or Affiliate acting in good faith
pursuant to the terms of the Plan, from and against any and all losses, damages or
expenses arising therefrom. These indemnification rights shall be in addition to any other
indemnification protection provided by the Company or an Affiliate.6.5
    
    Nothing in this Plan shall be construed or interpreted as giving any Employee the
right to be retained by the Company or any Affiliate, or impair the right of the Company
or its Affiliate to control or discipline Employees or to terminate the services of any
Employee at any time. The Plan shall not create any rights of future participation herein.6.6
    
    The laws of the State of Texas, without regard to its conflicts of law provisions,
shall govern the validity and construction of this Plan in all respects. If any term or
condition herein conflicts with applicable law, the validity of the remaining provisions
shall not be affected thereby.6.7
    
    This Plan shall (a) be amended and restated effective as of January 1, 2009; (b)
replace and supersede any and all prior versions hereof or other incentive bonus plans of
the Company for Employees of the Company or an Affiliate; and (c) continue in effect
until terminated by the Board or Committee.6.8
    
    No person eligible to receive any payment hereunder shall have any rights to pledge,
assign or otherwise dispose of all or any portion of such payment, either directly or by
operation of law, including but not by way of limitation, execution, levy, garnishment,
attachment, pledge or bankruptcy.6.9
    
    The Company or Affiliate shall have the right to withhold and deduct from the
payment of a Bonus hereunder any federal, state or local taxes required by law to be
withheld with respect to such distribution, and any other required withholdings, as
determined by the Company or Affiliate.Neither the establishment of the Plan or the granting of any Bonus hereunder shall be deemed
to create a trust or other designated fund of whatever nature. The Plan shall constitute an
unfunded and unsecured liability of the Company to make payments in accordance with the
provisions of the Plan, and no individual shall have any security or other interest in any
assets of the Company in connection with the Plan. The Plan is a bonus arrangement and not a
nonqualified deferred compensation plan subject to Code Section 409A, or any plan subject to
ERISA, and shall be construed and administered accordingly.
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6.10
    
    This Plan is intended to comply with Code Section 409A and any ambiguous provision will
be construed in a manner that is compliant with or exempt from the application of Section
409A. For purposes of example and not limitation, to the extent required for compliance
with, or exemption under, Code Section 409A, an Employees employment with the Company and
its Affiliates hereunder shall be considered terminated only if the Employee has a
separation from service as such term is defined under Section 409A. It is intended that
the Plan will comply with the provisions of Section 409A and the regulations and other
authoritative guidance thereunder. If any provision of this Plan would cause a Participant
to incur any additional tax or interest under Section 409A, the Company shall reform such
provision to comply with Section 409A to the full extent permitted under Section 409A. In
the event any payment hereunder is made to a specified employee (as defined under Section
409A) upon separation from service (as defined under Section 409A), the payment will not
be made earlier than six (6) months from the date of separation from service, but only to
the extent required for compliance with, or exemption under, Section 409A.
  PARKER DRILLING
COMPANYBy:
Name:
    
    /s/ David C. Mannon

David C. MannonTitle:
    
    PresidentDate:
    
    December 9, 2009
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