exv10w1



 





Exhibit 10.1




Helmerich & Payne, Inc.

Annual Bonus Plan




Overview



Annual bonus awards are available to certain Executives to recognize and reward
desired performance. Each year the Human Resources Committee (the “Committee”)
approves the performance measures, and the specific financial and strategic
objectives. An Executive’s bonus award opportunity is determined primarily by
the individual’s position and level of responsibility.


Participation


The participants in the Plan are as follows:


Hans Helmerich,

George Dotson,

Doug Fears, and

Steve Mackey.


Bonus Award Opportunity


Participants are assigned target bonus awards expressed as percentages of base
salary. These bonus awards are earned when performance objectives are
achieved. The award percentages are as follows:



	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Threshold
	 	Target
	 	Reach

	Hans Helmerich
	 	 	40	%	 	 	80	%	 	 	120	%
	George Dotson
	 	 	25	%	 	 	50	%	 	 	75	%
	Doug Fears
	 	 	20	%	 	 	45	%	 	 	70	%
	Steve Mackey
	 	 	20	%	 	 	45	%	 	 	70	%






Financial Performance Objectives


The performance objectives selected align management with shareholders. When
these objectives are met, shareholders will realize greater value in their
Company ownership. A participant’s bonus award will be based upon three
disproportionately weighted financial measures being:



	 	 	 	 	 
	Financial Measure
	 	Weighting

	Earnings Per Share
	 	 	35	%
	Return on Invested Capital
	 	 	35	%
	Operating EBITDA
	 	 	30	%







 









 




The Board of Directors annually approves an operating and capital budget at its
September meeting. Each financial measure would be assigned threshold, target
and reach numbers based upon this approved budget. Actual financial results
would be compared to the budgeted numbers for each of the financial measures to
determine the amount of any bonus. Based on the                      fiscal year budget, the
following financial performance benchmarks have been developed for each
financial measure:



	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Prior
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Fiscal
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Year
	 	 	Threshold
	 	Target
	 	Reach
	 	Actual

	Earnings Per Share
	 	 	                  	 	 	 	                  	 	 	 	                  	 	 	 	                  	 
	Return on Invested Capital
	 	 	                  	 	 	 	                  	 	 	 	                  	 	 	 	                  	 
	Operating EBITDA*
	 	 	                  	 	 	 	                  	 	 	 	                  	 	 	 	                  	 
	*millions
	 	 	                  	 	 	 	                  	 	 	 	                  	 	 	 	                  	 







	 	 	 	 	 	 	 	 	 
	 	 	Current	 	Prior
	 	 	Fiscal	 	Fiscal
	 	 	Year	 	Year
	Assumptions
	 	Target
	 	Actual

	Revenue Days - U.S. Land:
	 	 	                  	 	 	 	                  	 
	Revenue Per Day - U.S. Land:
	 	 	                  	 	 	 	                  	 
	U.S. Land Rig Utilization:
	 	 	                  	 	 	 	                  	 
	U.S. Offshore Utilization:
	 	 	                  	 	 	 	                  	 
	International Utilization:
	 	 	                  	 	 	 	                  	 






Strategic Performance Objectives


The bonus, if any, derived from the Company’s financial performance would then
be increased or decreased by the Committee pursuant to a 30% adjustment factor.
Seventy-five percent of this adjustment factor is based upon the Committee’s
assessment of the Company’s total shareholder return, using a three-year
rolling average relative to an industry peer group. The remaining 25% of the
bonus adjustment factor is based upon the Committee’s evaluation of the
Company’s success in attaining higher than industry average utilization and
premium day rates.


This bonus adjustment factor will be subject to a pre-determined safety
performance threshold. For the                      fiscal year, in order to meet that
threshold, the Company’s OSHA and DAWFC rates must be                      percent below IADC
averages. If this safety performance threshold is not met, then the bonus
would not be increased by the adjustment factor. The bonus would not be
decreased by the adjustment factor solely for the reason that safety
performance threshold was not met. However, if the adjustment factor resulted
in a decrease to the bonus, then the bonus would be decreased even if the
safety performance threshold is met.




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