Document:

Hercules Offshore, Inc. Deferred Compensation Plan

 Exbibit 10.1 
 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  
 Effective January 1, 2007 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  
 TABLE OF CONTENTS

  

					
	 	  	 	  	Page
	ARTICLE 1	  	Definitions	  	1
			
	ARTICLE 2	  	Selection, Enrollment, Eligibility	  	6
			
	 2.1
	  	Selection by Committee	  	6
	 2.2
	  	Enrollment and Eligibility Requirements; Commencement of Participation	  	6
			
	ARTICLE 3	  	Deferral Commitments/Company Contribution Amounts/Company Restoration Matching Amounts /Vesting/Crediting/Taxes	  	7
			
	 3.1
	  	Minimum Deferrals	  	7
	 3.2
	  	Maximum Deferral	  	8
	 3.3
	  	Election to Defer; Effect of Election Form	  	8
	 3.4
	  	Withholding and Crediting of Annual Deferral Amounts	  	9
	 3.5
	  	Company Contribution Amount	  	10
	 3.6
	  	Company Restoration Matching Amount	  	10
	 3.7
	  	Crediting of Amounts after Benefit Distribution	  	10
	 3.8
	  	Vesting	  	11
	 3.9
	  	Crediting/Debiting of Account Balances	  	12
	 3.10
	  	FICA and Other Taxes	  	13
			
	ARTICLE 4	  	Scheduled Distribution; Unforeseeable Emergencies	  	14
			
	 4.1
	  	Scheduled Distribution	  	14
	 4.2
	  	Postponing Scheduled Distributions	  	14
	 4.3
	  	Other Benefits Take Precedence Over Scheduled Distributions	  	14
	 4.4
	  	Unforeseeable Emergencies	  	15
			
	ARTICLE 5	  	Change In Control Benefit	  	15
			
	 5.1
	  	Change in Control Benefit	  	15
	 5.2
	  	Payment of Change in Control Benefit	  	16
			
	ARTICLE 6	  	Retirement Benefit	  	16
			
	 6.1
	  	Retirement Benefit	  	16
	 6.2
	  	Payment of Retirement Benefit	  	16
			
	ARTICLE 7	  	Termination Benefit	  	17
			
	 7.1
	  	Termination Benefit	  	17
	 7.2
	  	Payment of Termination Benefit	  	17

  

 -i- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

					
	ARTICLE 8	  	Disability Benefit	  	17
			
	 8.1
	  	Disability Benefit	  	17
	 8.2
	  	Payment of Disability Benefit	  	17
			
	ARTICLE 9	  	Death Benefit	  	17
			
	 9.1
	  	Death Benefit	  	17
	 9.2
	  	Payment of Death Benefit	  	18
			
	ARTICLE 10	  	Beneficiary Designation	  	18
			
	 10.1
	  	Beneficiary	  	18
	 10.2
	  	Beneficiary Designation; Change; Spousal Consent	  	18
	 10.3
	  	Acknowledgement	  	18
	 10.4
	  	No Beneficiary Designation	  	18
	 10.5
	  	Doubt as to Beneficiary	  	18
	 10.6
	  	Discharge of Obligations	  	18
			
	ARTICLE 11	  	Leave of Absence	  	19
			
	 11.1
	  	Paid Leave of Absence	  	19
	 11.2
	  	Unpaid Leave of Absence	  	19
	 11.3
	  	Leaves Resulting in Separation from Service	  	19
			
	ARTICLE 12	  	Termination of Plan, Amendment or Modification	  	19
			
	 12.1
	  	Termination of Plan	  	19
	 12.2
	  	Amendment	  	20
	 12.3
	  	Plan Agreement	  	20
	 12.4
	  	Effect of Payment	  	20
			
	ARTICLE 13	  	Administration	  	20
			
	 13.1
	  	Committee Duties	  	20
	 13.2
	  	Administration Upon Change In Control	  	21
	 13.3
	  	Agents	  	21
	 13.4
	  	Binding Effect of Decisions	  	21
	 13.5
	  	Indemnity of Committee	  	21
	 13.6
	  	Employer Information	  	21
			
	ARTICLE 14	  	Other Benefits and Agreements	  	21
			
	 14.1
	  	Coordination with Other Benefits	  	21
			
	ARTICLE 15	  	Claims Procedures	  	22

  

 -ii- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

					
	 15.1
	  	Presentation of Claim	  	22
	 15.2
	  	Notification of Decision	  	22
	 15.3
	  	Review of a Denied Claim	  	22
	 15.4
	  	Decision on Review	  	23
	 15.5
	  	Legal Action	  	23
			
	ARTICLE 16	  	Trust	  	23
			
	 16.1
	  	Establishment of the Trust	  	23
	 16.2
	  	Interrelationship of the Plan and the Trust	  	23
	 16.3
	  	Distributions From the Trust	  	24
			
	ARTICLE 17	  	Miscellaneous	  	24
			
	 17.1
	  	Status of Plan	  	24
	 17.2
	  	Unsecured General Creditor	  	24
	 17.3
	  	Employer’s Liability	  	24
	 17.4
	  	Nonassignability	  	24
	 17.5
	  	Not a Contract of Employment	  	24
	 17.6
	  	Furnishing Information	  	24
	 17.7
	  	Terms	  	25
	 17.8
	  	Captions	  	25
	 17.9
	  	Governing Law	  	25
	 17.10
	  	Notice	  	25
	 17.11
	  	Successors	  	25
	 17.12
	  	Spouse’s Interest	  	25
	 17.13
	  	Validity	  	25
	 17.14
	  	Incompetent	  	25
	 17.15
	  	Court Order	  	26
	 17.16
	  	Distribution in the Event of Income Inclusion Under 409A	  	26
	 17.17
	  	Deduction Limitation on Benefit Payments	  	26
	 17.18
	  	Insurance	  	26

  

 -iii- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  
 Purpose

 The purpose of this Plan is to provide specified benefits to Directors and a select group of management or highly compensated
Employees who contribute materially to the continued growth, development and future business success of Hercules Offshore, Inc., a Delaware corporation, and its subsidiaries, if any, that sponsor this Plan. This Plan shall be unfunded for tax
purposes and for purposes of Title I of ERISA. 
 This Plan is intended to comply with all applicable law, including Code Section 409A
and related Treasury guidance and Regulations, and shall be operated and interpreted in accordance with this intention. Consistent with the foregoing, the Committee may make available to Participants certain transition relief described more fully in
Appendix A of this Plan, as permitted by Code Section 409A and related Treasury guidance and Regulations. 
 ARTICLE 1 

Definitions 
 For the
purposes of this Plan, unless otherwise clearly apparent from the context, the following phrases or terms shall have the following indicated meanings: 
  

	1.1	“Account Balance” shall mean, with respect to a Participant, an entry on the records of the Employer equal to the sum of the Participant’s Annual Accounts. The
Account Balance shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant, or his or her designated Beneficiary, pursuant to this Plan.

  

	1.2	“Annual Account” shall mean, with respect to a Participant, an entry on the records of the Employer equal to the following amount: (i) the sum of the
Participant’s Annual Deferral Amount, Company Contribution Amount, Company Restoration Matching Amount,, plus (ii) amounts credited or debited to such amounts pursuant to this Plan, less (iii) all distributions made to the Participant
or his or her Beneficiary pursuant to this Plan that relate to the Annual Account for such Plan Year. The Annual Account shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and determination of the amounts
to be paid to a Participant, or his or her designated Beneficiary, pursuant to this Plan. 

  

	1.3	“Annual Deferral Amount” shall mean that portion of a Participant’s Base Salary, Bonus, Director Fees and LTIP Amounts that a Participant defers in accordance with
Article 3 for any one Plan Year, without regard to whether such amounts are withheld and credited during such Plan Year. In the event of a Participant’s Retirement, Disability, death or Termination of Employment prior to the end of a Plan
Year, such year’s Annual Deferral Amount shall be the actual amount withheld prior to such event. 

  

	1.4	“Annual Installment Method” shall be an annual installment payment over the number of years selected by the Participant in accordance with this Plan, calculated as
follows: (i) for the first annual installment, the vested portion of each Annual Account shall be calculated as of the close of business on or around the Participant’s Benefit Distribution Date, as determined by the Committee in its sole
discretion, and (ii) for remaining annual installments, the vested portion of 

  

 -1- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	  	each applicable Annual Account shall be calculated on every anniversary of such calculation date, as applicable. Each annual installment shall be calculated by multiplying this
balance by a fraction, the numerator of which is one and the denominator of which is the remaining number of annual payments due to the Participant. By way of example, if the Participant elects a ten (10) year Annual Installment Method as the
form of Retirement Benefit for an Annual Account, the first payment shall be 1/10 of the vested balance of such Annual Account, calculated as described in this definition. The following year, the payment shall be 1/9 of the vested balance of such
Annual Account, calculated as described in this definition. 

  

	1.5	“Base Salary” shall mean the annual cash compensation relating to services performed during any calendar year, excluding distributions from nonqualified deferred
compensation plans, bonuses, commissions, overtime, fringe benefits, stock options, relocation expenses, incentive payments, non-monetary awards, director fees and other fees, and automobile and other allowances paid to a Participant for employment
services rendered (whether or not such allowances are included in the Employee’s gross income). Base Salary shall be calculated before reduction for compensation voluntarily deferred or contributed by the Participant pursuant to all qualified
or nonqualified plans of any Employer and shall be calculated to include amounts not otherwise included in the Participant’s gross income under Code Sections 125, 402(e)(3), 402(h), or 403(b) pursuant to plans established by any Employer;
provided, however, that all such amounts will be included in compensation only to the extent that had there been no such plan, the amount would have been payable in cash to the Employee. 

  

	1.6	“Beneficiary” shall mean one or more persons, trusts, estates or other entities, designated in accordance with Article 10, that are entitled to receive benefits under
this Plan upon the death of a Participant. 

  

	1.7	“Beneficiary Designation Form” shall mean the form established from time to time by the Committee that a Participant completes, signs and returns to the Committee to
designate one or more Beneficiaries. 

  

	1.8	“Benefit Distribution Date” shall mean a date that triggers distribution of a Participant’s vested benefits. A Benefit Distribution Date for a Participant shall be
determined upon the occurrence of any one of the following: 

  

	 	(a)	If the Participant Retires, the Benefit Distribution Date for his or her vested Account Balance shall be (i) the last day of the six-month period immediately following the date
on which the Participant Retires if the Participant is a Key Employee, and (ii) for all other Participants, the date on which the Participant Retires; provided, however, in the event the Participant changes the Retirement Benefit election for
one or more Annual Accounts in accordance with Section 6.2(b), the Benefit Distribution Date for such Annual Account(s) shall be postponed in accordance with such section 6.2(b); or 

  

	 	(b)	If the Participant experiences a Termination of Employment, the Benefit Distribution Date for his or her vested Account Balance shall be (i) the last day of the six-month
period immediately following the date on which the Participant experiences a Termination of Employment if the Participant is a Key Employee, and (ii) for all other Participants, the date on which the Participant experiences a Termination of
Employment; or 

  

 -2- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	 	(c)	If the Participant dies prior to the complete distribution of his or her vested Account Balance, the Participant’s Benefit Distribution Date shall be the date on which the
Committee is provided with proof that is satisfactory to the Committee of the Participant’s death; or 

  

	 	(d)	If the Participant becomes Disabled, the Participant’s Benefit Distribution Date shall be the date on which the Participant becomes Disabled, as determined by the Committee in
its sole and absolute discretion; or 

  

	 	(e)	If (i) a Change in Control occurs prior to the Participant’s Termination of Employment, Retirement, death or Disability, and (ii) the Participant has elected to
receive a Change in Control Benefit, as set forth in Section 5.1 below, the Participant’s Benefit Distribution Date shall be the date on which the Company experiences a Change in Control, as determined by the Committee in its sole
discretion. 

  

	1.9	“Board” shall mean the board of directors of the Company. 

  

	1.10	“Bonus” shall mean any compensation, in addition to Base Salary and LTIP Amounts, earned by a Participant for services rendered during a Plan Year, under any
Employer’s annual bonus and cash incentive plans. 

  

	1.11	“Change in Control” shall mean any “change in control event” as defined in accordance with Code Section 409A and related Treasury guidance and Regulations.

  

	1.12	“Change in Control Benefit” shall have the meaning set forth in Article 5. 

  

	1.13	“Claimant” shall have the meaning set forth in Section 15.1. 

  

	1.14	“Code” shall mean the Internal Revenue Code of 1986, as it may be amended from time to time. 

  

	1.15	“Committee” shall mean the committee described in Article 13. 

  

	1.16	“Company” shall mean Hercules Offshore, Inc., a Delaware corporation, and any successor to all or substantially all of the Company’s assets or business.

  

	1.17	“Company Contribution Amount” shall mean, for any one Plan Year, the amount determined in accordance with Section 3.5. 

  

	1.18	“Company Restoration Matching Amount” shall mean, for any one Plan Year, the amount determined in accordance with Section 3.6. 

  

	1.19	“Death Benefit” shall mean the benefit set forth in Article 9. 

  

	1.20	“Director” shall mean any member of the board of directors of any Employer. 

  

	1.21	“Director Fees” shall mean the annual fees earned by a Director from any Employer, including retainer fees and meetings fees, as compensation for serving on the board of
directors. 

  

	1.22	“Disability” or “Disabled” shall mean that a Participant is (i) unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 

  

 -3- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	  	months under an accident or health plan covering employees of the Participant’s Employer. For purposes of this Plan, a Participant shall be deemed Disabled if determined to be
totally disabled by the Social Security Administration, or if determined to be disabled in accordance with the applicable disability insurance program of such Participant’s Employer, provided that the definition of “disability”
applied under such disability insurance program complies with the requirements in the preceding sentence. 

  

	1.23	“Disability Benefit” shall mean the benefit set forth in Article 8. 

  

	1.24	“Election Form” shall mean the form, which may be in electronic format, established from time to time by the Committee that a Participant completes, signs and returns to
the Committee to make an election under the Plan. 

  

	1.25	“Employee” shall mean a person who is an employee of any Employer. 

  

	1.26	“Employer(s)” shall mean the Company and/or any of its subsidiaries (now in existence or hereafter formed or acquired) that have been selected by the Board to participate
in the Plan and have adopted the Plan as a sponsor. 

  

	1.27	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as it may be amended from time to time. 

  

	1.28	“401(k) Plan” shall mean, with respect to an Employer, a plan qualified under Code Section 401(a) that contains a cash or deferral arrangement described in Code
Section 401(k), adopted by the Employer, as it may be amended from time to time, or any successor thereto. 

  

	1.29	“Key Employee” shall mean any Participant who is a “key employee” (as defined in Code Section 416(i) without regard to paragraph (5) thereof) of any
Employer whose stock is publicly traded on an established securities market or otherwise, as determined by the Committee based upon the 12-month period ending on each December 31st (such 12-month period is referred to below as the “identification period”). All Participants who are determined to be key employees under Code
Section 416(i) (without regard to paragraph (5) thereof) during the identification period shall be treated as Key Employees for purposes of the Plan during the 12-month period that begins on the first day of the 4th month following the close of such identification period. 

  

	1.30	“LTIP Amounts” shall mean the cash compensation attributable to a Plan Year that is earned by a Participant as an Employee under any Employer’s long-term incentive
plan or any other long-term incentive arrangement designated by the Committee. 

  

	1.31	“Participant” shall mean any Employee or Director (i) who is selected to participate in the Plan, (ii) who submits an executed Plan Agreement, Election Form and
Beneficiary Designation Form, which are accepted by the Committee, and (iii) whose Plan Agreement has not terminated. 

  

	1.32	“Plan” shall mean the Hercules Offshore, Inc. Deferred Compensation Plan, which shall be evidenced by this instrument and by each Plan Agreement, as they may be amended
from time to time. 

  

	1.33	“Plan Agreement” shall mean a written agreement, as may be amended from time to time, which is entered into by and between an Employer and a Participant. Each Plan
Agreement executed by a Participant and the Participant’s Employer shall provide for the entire benefit to which such Participant is entitled under the Plan; should there be more than one Plan Agreement, the Plan 

  

 -4- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	  	Agreement bearing the latest date of acceptance by the Employer shall supersede all previous Plan Agreements in their entirety and shall govern such entitlement. The terms of any
Plan Agreement may be different for any Participant, and any Plan Agreement may provide additional benefits not set forth in the Plan or limit the benefits otherwise provided under the Plan; provided, however, that any such additional benefits or
benefit limitations must be agreed to by both the Employer and the Participant. 

  

	1.34	“Plan Year” shall mean a period beginning on January 1 of each calendar year and continuing through December 31 of such calendar year. 

 

	1.35	“Retirement”, “Retire(s)” or “Retired” shall mean, with respect to an Employee, separation from service with all Employers for any reason other than
death or Disability, as determined in accordance with Code Section 409A and related Treasury guidance and Regulations, on or after the earlier of the attainment of (a) age sixty-five (65) or (b) age fifty-five (55) with ten
(10) Years of Service; and shall mean with respect to a Director who is not an Employee, separation from service as a Director with all Employers. If a Participant is both an Employee and a Director, Retirement shall not occur until he or she
Retires as both an Employee and a Director. 

  

	1.36	“Retirement Benefit” shall mean the benefit set forth in Article 6. 

  

	1.37	“Scheduled Distribution” shall mean the distribution set forth in Section 4.1. 

  

	1.38	“Terminate the Plan” or “Termination of the Plan” shall mean a determination by an Employer’s board of directors that (i) all of its Participants shall
no longer be eligible to participate in the Plan, (ii) no new deferral elections for such Participants shall be permitted, and (iii) such Participants shall no longer be eligible to receive company contributions under this Plan.

  

	1.39	“Termination Benefit” shall mean the benefit set forth in Article 7. 

  

	1.40	“Termination of Employment” shall mean the separation from service with all Employers, voluntarily or involuntarily, for any reason other than Retirement, Disability or
death, as determined in accordance with Code Section 409A and related Treasury guidance and Regulations. If a Participant is both an Employee and a Director, a Termination of Employment shall occur only upon the termination of the last position
held. 

  

	1.41	“Trust” shall mean one or more trusts established by the Company in accordance with Article 16. 

  

	1.42	“Unforeseeable Emergency” shall mean a severe financial hardship of the Participant or his or her Beneficiary resulting from (i) an illness or accident of the
Participant, the Participant’s spouse, or the Participant’s dependent (as defined in Code Section 152(a)), (ii) a loss of the Participant’s property due to casualty, or (iii) such other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of the Participant, all as determined in the sole discretion of the Committee. 

  

	1.43	“Years of Plan Participation” shall mean the total number of full Plan Years a Participant has been a Participant in the Plan prior to his or her Termination of Employment
(determined without regard to whether deferral elections have been made by the Participant for any Plan Year). Any partial year shall not be counted. Notwithstanding the previous sentence, a Participant’s first Plan Year of participation shall
be treated as a full Plan Year for purposes of this definition, even if it is only a partial Plan Year of participation. 

  

 -5- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	1.44	“Years of Service” shall mean the total number of full years in which a Participant has been employed by one or more Employers. For purposes of this definition, a year of
employment shall be a 365 day period (or 366 day period in the case of a leap year) that, for the first year of employment, commences on the Employee’s date of hiring and that, for any subsequent year, commences on an anniversary of that hiring
date. The Committee shall make a determination as to whether any partial year of employment shall be counted as a Year of Service. 

 ARTICLE 2 
 Selection, Enrollment, Eligibility 
  

	2.1	Selection by Committee. Participation in the Plan shall be limited to Directors and, as determined by the Committee in its sole discretion, a select group of
management or highly compensated Employees. From that group, the Committee shall select, in its sole discretion, those individuals who may actually participate in this Plan. 

  

	2.2	Enrollment and Eligibility Requirements; Commencement of Participation. 

  

	 	(a)	As a condition to participation, each Director or selected Employee who is eligible to participate in the Plan effective as of the first day of a Plan Year shall complete, execute
and return to the Committee a Plan Agreement, an Election Form and a Beneficiary Designation Form, prior to the first day of such Plan Year, or such other earlier deadline as may be established by the Committee in its sole discretion. In addition,
the Committee shall establish from time to time such other enrollment requirements as it determines, in its sole discretion, are necessary. 

  

	 	(b)	A Director or selected Employee who first becomes eligible to participate in this Plan after the first day of a Plan Year must complete, execute and return to the Committee a Plan
Agreement, an Election Form, and a Beneficiary Designation Form within thirty (30) days after he or she first becomes eligible to participate in the Plan, or within such other earlier deadline as may be established by the Committee, in its sole
discretion, in order to participate for that Plan Year. In such event, such person’s participation in this Plan shall not commence earlier than the date determined by the Committee pursuant to Section 2.2(c) and such person shall not be
permitted to defer under this Plan any portion of his or her Base Salary, Bonus, LTIP Amounts and/or Director Fees attributable to services performed prior to his or her participation commencement date, except to the extent permissible under Code
Section 409A and related Treasury guidance or Regulations. 

  

	 	(c)	Each Director or selected Employee who is eligible to participate in the Plan shall commence participation in the Plan on the date that the Committee determines, in its sole
discretion, that the Director or Employee has met all enrollment requirements set forth in this Plan and required by the Committee, including returning all required documents to the Committee within the specified time period. Notwithstanding the
foregoing, the Committee shall process such Participant’s deferral election as soon as administratively practicable after such deferral election is submitted to and accepted by the Committee. 

  

 -6- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	 	(d)	If a Director or an Employee fails to meet all requirements contained in this Section 2.2 within the period required, that Director or Employee shall not be eligible to
participate in the Plan during such Plan Year. 

 ARTICLE 3 
 Deferral Commitments/Company Contribution Amounts/ 
 Company
Restoration Matching Amounts/ Vesting/Crediting/Taxes 
  

	3.1	Minimum Deferrals. 

  

	 	(a)	Annual Deferral Amount. For each Plan Year, a Participant may elect to defer, as his or her Annual Deferral Amount, Base Salary, Bonus, LTIP Amounts and/or Director
Fees in the following minimum amounts for each deferral elected: 

  

				
	 Deferral
	  	Minimum Amount
	 Base Salary, Bonus and/or LTIP Amounts
	  	$	1,500 aggregate
	 Director Fees
	  	 	$ 1,500

 If the Committee determines, in its sole discretion, prior to the beginning of a Plan Year that a
Participant has made an election for less than the stated minimum amounts, or if no election is made, the amount deferred shall be zero. If the Committee determines, in its sole discretion, at any time after the beginning of a Plan Year that a
Participant has deferred less than the stated minimum amounts for that Plan Year, any amount credited to the Participant’s applicable Annual Account as the Annual Deferral Amount for that Plan Year shall be distributed to the Participant within
sixty (60) days after the last day of the Plan Year in which the deferral occurs; provided, however, that if such a deferral is not discovered by the Committee until after sixty (60) days following the last day of the Plan Year in which
the deferral occurred, such deferral shall be deemed to be proper and consistent with the Plan. 
  

	 	(b)	Short Plan Year. Notwithstanding the foregoing, if a Participant first becomes a Participant after the first day of a Plan Year, the minimum Annual Deferral Amount
shall be an amount equal to the minimum set forth above, multiplied by a fraction, the numerator of which is the number of complete months remaining in the Plan Year and the denominator of which is 12. 

  

 -7- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	3.2	Maximum Deferral. 

  

	 	(a)	Annual Deferral Amount. For each Plan Year, a Participant may elect to defer, as his or her Annual Deferral Amount, Base Salary, Bonus, LTIP Amounts and/or Director
Fees up to the following maximum percentages for each deferral elected: 

  

			
	 Deferral
	  	Maximum Percentage
	 Base Salary
	  	80%
	 Bonus
	  	100%
	 LTIP Amounts
	  	100%
	 Director Fees
	  	100%

  

	 	(b)	Short Plan Year. Notwithstanding the foregoing, if a Participant first becomes a Participant after the first day of a Plan Year, the maximum Annual Deferral Amount
shall be limited to the amount of compensation not yet earned by the Participant as of the date the Participant submits a Plan Agreement and Election Form to the Committee for acceptance, except to the extent permissible under Code Section 409A
and related Treasury guidance or Regulations. For compensation that is earned based upon a specified performance period, the Participant’s deferral election will apply to the portion of such compensation that is equal to (i) the total
amount of compensation for the performance period, multiplied by (ii) a fraction, the numerator of which is the number of days remaining in the service period after the Participant’s deferral election is made, and the denominator of which
is the total number of days in the performance period. 

  

	3.3	Election to Defer; Effect of Election Form. 

  

	 	(a)	First Plan Year of Participation. In connection with a Participant’s commencement of participation in the Plan, the Participant shall make an irrevocable deferral
election for the Plan Year in which the Participant commences participation in the Plan, along with such other elections as the Committee deems necessary or desirable under the Plan. For these elections to be valid, the Election Form must be
completed and signed by the Participant, timely delivered to the Committee (in accordance with Section 2.2 above) and accepted by the Committee. 

  

	 	(b)	General Timing Rule for Deferral Elections in Subsequent Plan Years. For each succeeding Plan Year, a Participant may elect to defer Base Salary, Bonus, Director Fees
and LTIP Amounts, and make such other elections as the Committee deems necessary or desirable under the Plan by timely delivering a new Election Form to the Committee, in accordance with its rules and procedures, no later than the
December 31st preceding the Plan Year in which such compensation is earned, or by such other deadline
established by the Committee in accordance with the requirements of Code Section 409A and related Treasury guidance or Regulations. 

  

	 	  	Any deferral election(s) made in accordance with this Section 3.3(b) shall be irrevocable; provided, however, that if the Committee requires Participants to make a deferral
election for “performance-based compensation” by the deadline(s) described above, it may, in its 

  

 -8- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	 	  	sole discretion, and in accordance with Code Section 409A and related Treasury guidance or Regulations, permit a Participant to subsequently change his or her deferral election
for such compensation by submitting an Election Form to the Committee no later than the deadline established by the Committee pursuant to Section 3.3(d) below. 

  

	 	(c)	Performance-Based Compensation. Notwithstanding the foregoing, the Committee may, in its sole discretion, determine that an irrevocable deferral election pertaining to
“performance-based compensation” based on services performed over a period of at least twelve (12) months, may be made by timely delivering an Election Form to the Committee, in accordance with its rules and procedures, no later than
six (6) months before the end of the performance service period. “Performance-based compensation” shall be compensation, the payment or amount of which is contingent on pre-established organizational or individual performance
criteria, which satisfies the requirements of Code Section 409A and related Treasury guidance or Regulations. In order to be eligible to make a deferral election for performance-based compensation, a Participant must perform services
continuously from a date no later than the date upon which the performance criteria for such compensation are established through the date upon which the Participant makes a deferral election for such compensation. In no event shall an election to
defer performance-based compensation be permitted after such compensation has become both substantially certain to be paid and readily ascertainable. 

  

	 	(d)	Compensation Subject to Risk of Forfeiture. With respect to compensation (i) to which a Participant has a legally binding right to payment in a subsequent year,
and (ii) that is subject to a forfeiture condition requiring the Participant’s continued services for a period of at least twelve (12) months from the date the Participant obtains the legally binding right, the Committee may, in its
sole discretion, determine that an irrevocable deferral election for such compensation may be made by timely delivering an Election Form to the Committee in accordance with its rules and procedures, no later than the 30th day after the Participant obtains the legally binding right to the compensation, provided that the election is made at least
twelve (12) months in advance of the earliest date at which the forfeiture condition could lapse. 

  

	3.4	Withholding and Crediting of Annual Deferral Amounts. For each Plan Year, the Base Salary portion of the Annual Deferral Amount shall be withheld from each regularly
scheduled Base Salary payroll in equal amounts, as adjusted from time to time for increases and decreases in Base Salary. The Bonus, LTIP Amounts and/or Director Fees portion of the Annual Deferral Amount shall be withheld at the time the Bonus,
LTIP Amounts or Director Fees are or otherwise would be paid to the Participant, whether or not this occurs during the Plan Year itself. Annual Deferral Amounts shall be credited to the Participant’s Annual Account for such Plan Year at the
time such amounts would otherwise have been paid to the Participant. 

  

 -9- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	3.5	Company Contribution Amount. 

  

	 	(a)	For each Plan Year, an Employer may be required to credit amounts to a Participant’s Annual Account in accordance with employment or other agreements entered into between the
Participant and the Employer, which amounts shall be part of the Participant’s Company Contribution Amount for that Plan Year. Such amounts shall be credited to the Participant’s Annual Account for the applicable Plan Year on the date or
dates prescribed by such agreements. 

  

	 	(b)	For each Plan Year, an Employer, in its sole discretion, may, but is not required to, credit any amount it desires to any Participant’s Annual Account under this Plan, which
amount shall be part of the Participant’s Company Contribution Amount for that Plan Year. The amount so credited to a Participant may be smaller or larger than the amount credited to any other Participant, and the amount credited to any
Participant for a Plan Year may be zero, even though one or more other Participants receive a Company Contribution Amount for that Plan Year. The Company Contribution Amount described in this Section 3.5(b), if any, shall be credited to the
Participant’s Annual Account for the applicable Plan Year on a date or dates to be determined by the Committee, in its sole discretion. 

  

	3.6	Company Restoration Matching Amount. A Participant’s Company Restoration Matching Amount for any Plan Year shall be an amount determined by the Committee, in its
sole discretion, to make up for certain limits applicable to the 401(k) Plan or other qualified plan for such Plan Year, as identified by the Committee; provided, that any such amounts credited to a Participant hereunder shall be determined in a
manner that complies with the applicable requirements of Code Section 409A. The amount so credited to a Participant under this Plan for any Plan Year (i) may be smaller or larger than the amount credited to any other Participant, and
(ii) may differ from the amount credited to such Participant in the preceding Plan Year. The Participant’s Company Restoration Matching Amount, if any, shall be credited to the Participant’s Annual Account for the applicable Plan Year
on a date or dates to be determined by the Committee, in its sole discretion. 

  

	3.7	Crediting of Amounts after Benefit Distribution. Notwithstanding any provision in this Plan to the contrary, should the complete distribution of a Participant’s
vested Account Balance occur prior to the date on which any portion of (i) the Annual Deferral Amount that a Participant has elected to defer in accordance with Section 3.3, (ii) the Company Contribution Amount or (iii) the
Company Restoration Matching Amount, would otherwise be credited to the Participant’s Account Balance, such amounts shall not be credited to the Participant’s Account Balance, but shall be paid to the Participant in a manner determined by
the Committee, in its sole discretion. 

  

 -10- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	3.8	Vesting. 

  

	 	(a)	A Participant shall at all times be 100% vested in his or her deferrals of Base Salary, Bonus, LTIP Amounts and Director’s Fees. 

  

	 	(b)	A Participant shall be vested in the portion of his or her Account Balance attributable to any Company Contribution Amounts, plus amounts credited or debited on such amounts
(pursuant to Section 3.9) based on the number of Years of Plan Participation credited to the Participant following the Plan Year to which the contribution relates. However, on or prior to the date on which a Participant is awarded a Company
Contribution Amount for a Plan Year, the Committee, in its sole discretion, may designate a different vesting schedule in lieu of the schedule described below that will apply to such Company Contribution Amount. Unless otherwise declared by the
Committee, a new vesting schedule shall apply to each Company Contribution Amount. 

  

			
	 Years of Plan Participation Credited to
 Participant Following the Year to which
 Contribution Relates
	  	Vested Percentage
	 Less than 1 year
	  	0%
	 1 year or more, but less than 2
	  	25%
	 2 years or more, but less than 3
	  	50%
	 3 years or more, but less than 4
	  	75%
	 4 years or more
	  	100%

  

	 	(c)	A Participant shall be vested in the portion of his or her Account Balance attributable to any Company Restoration Matching Amounts, plus amounts credited or debited on such amounts
(pursuant to Section 3.9), only to the extent that the Participant would be vested in such amounts under the provisions of the 401(k) Plan, as determined by the Committee in its sole discretion. 

  

	 	(d)	Notwithstanding anything to the contrary contained in this Section 3.8, in the event of a Change in Control, or upon a Participant’s Retirement, death while employed by an
Employer, or Disability, any amounts that are not vested in accordance with Sections 3.8(b) or 3.8(c) above, shall immediately become 100% vested (if it is not already vested in accordance with the above vesting schedules). 

 

	 	(e)	Notwithstanding subsection 3.8(d) above, the vesting schedules described in Sections 3.8(b) and 3.8(c) shall not be accelerated upon a Change in Control to the extent that the
Committee determines that such acceleration would cause the deduction limitations of Section 280G of the Code to become effective. In the event of such a determination, the Participant may request independent verification of the
Committee’s calculations with respect to the application of Section 280G. In such case, the Committee must provide to the Participant within ninety (90) days of such a request an opinion from a nationally recognized accounting firm
selected by the Participant (the “Accounting Firm”). The 

  

 -11- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	 	  	opinion shall state the Accounting Firm’s opinion that any limitation in the vested percentage hereunder is necessary to avoid the limits of Section 280G and contain
supporting calculations. The cost of such opinion shall be paid for by the Company. 

  

	 	(f)	Section 3.8(e) shall not prevent the acceleration of the vesting schedules described in Sections 3.8(b) and 3.8(c) if such Participant is entitled to a “gross-up”
payment, to eliminate the effect of the Code section 4999 excise tax, pursuant to his or her employment agreement or other agreement entered into between such Participant and the Employer. 

  

	3.9	Crediting/Debiting of Account Balances. In accordance with, and subject to, the rules and procedures that are established from time to time by the Committee, in its
sole discretion, amounts shall be credited or debited to a Participant’s Account Balance in accordance with the following rules: 

  

	 	(a)	Measurement Funds. A Participant may elect one or more of the measurement funds selected by the Committee, in its sole discretion, which are based on certain
investment funds (the “Measurement Funds”), for the purpose of crediting or debiting additional amounts to his or her Account Balance. As necessary, the Committee may, in its sole discretion, discontinue, substitute or add a Measurement
Fund. Each such action will take effect as of the first day of the first calendar quarter that begins at least thirty (30) days after the day on which the Committee gives Participants advance written notice of such change.

  

	 	(b)	Election of Measurement Funds. A Participant, in connection with his or her initial deferral election in accordance with Section 3.3(a) above, shall elect, on the
Election Form, one or more Measurement Fund(s) (as described in Section 3.9(a) above) to be used to determine the amounts to be credited or debited to his or her Account Balance. If a Participant does not elect any of the Measurement Funds as
described in the previous sentence, the Participant’s Account Balance shall automatically be allocated into the lowest-risk Measurement Fund, as determined by the Committee, in its sole discretion. The Participant may (but is not required to)
elect, by submitting an Election Form to the Committee that is accepted by the Committee, to add or delete one or more Measurement Fund(s) to be used to determine the amounts to be credited or debited to his or her Account Balance, or to change the
portion of his or her Account Balance allocated to each previously or newly elected Measurement Fund. If an election is made in accordance with the previous sentence, it shall apply as of the first business day deemed reasonably practicable by the
Committee, in its sole discretion, and shall continue thereafter for each subsequent day in which the Participant participates in the Plan, unless changed in accordance with the previous sentence. Notwithstanding the foregoing, the Committee, in its
sole discretion, may impose limitations on the frequency with which one or more of the Measurement Funds elected in accordance with this Section 3.9(b) may be added or deleted by such Participant; furthermore, the Committee, in its sole
discretion, may impose limitations on the frequency with which the Participant may change the portion of his or her Account Balance allocated to each previously or newly elected Measurement Fund. 

  

 -12- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	 	(c)	Proportionate Allocation. In making any election described in Section 3.9(b) above, the Participant shall specify on the Election Form, in increments of one
percent (1%), the percentage of his or her Account Balance or Measurement Fund, as applicable, to be allocated/reallocated. 

  

	 	(d)	Crediting or Debiting Method. The performance of each Measurement Fund (either positive or negative) will be determined on a daily basis based on the manner in which
such Participant’s Account Balance has been hypothetically allocated among the Measurement Funds by the Participant. 

  

	 	(e)	No Actual Investment. Notwithstanding any other provision of this Plan that may be interpreted to the contrary, the Measurement Funds are to be used for measurement
purposes only, and a Participant’s election of any such Measurement Fund, the allocation of his or her Account Balance thereto, the calculation of additional amounts and the crediting or debiting of such amounts to a Participant’s Account
Balance shall not be considered or construed in any manner as an actual investment of his or her Account Balance in any such Measurement Fund. In the event that the Company or the Trustee (as that term is defined in the Trust), in its
own discretion, decides to invest funds in any or all of the investments on which the Measurement Funds are based, no Participant shall have any rights in or to such investments themselves. Without limiting the foregoing, a Participant’s
Account Balance shall at all times be a bookkeeping entry only and shall not represent any investment made on his or her behalf by the Company or the Trust; the Participant shall at all times remain an unsecured creditor of the Company.

  

	3.10	FICA and Other Taxes. 

  

	 	(a)	Annual Deferral Amounts. For each Plan Year in which an Annual Deferral Amount is being withheld from a Participant, the Participant’s Employer(s) shall withhold
from that portion of the Participant’s Base Salary, Bonus and/or LTIP Amounts that is not being deferred, in a manner determined by the Employer(s), the Participant’s share of FICA and other employment taxes on such Annual Deferral Amount.
If necessary, the Committee may reduce the Annual Deferral Amount in order to comply with this Section 3.10. 

  

	 	(b)	Company Restoration Matching Amounts and Company Contribution Amounts. When a Participant becomes vested in a portion of his or her Account Balance attributable to any
Company Restoration Matching Amounts and/or Company Contribution Amounts, the Participant’s Employer(s) shall withhold from that portion of the Participant’s Base Salary, Bonus and/or LTIP Amounts that is not deferred, in a manner
determined by the Employer(s), the Participant’s share of FICA and other employment taxes on such amounts. If necessary, the Committee may reduce the vested portion of the Participant’s Company Restoration Matching Amount or Company
Contribution Amount, as applicable, in order to comply with this Section 3.10. 

  

	 	(c)	Distributions. The Participant’s Employer(s), or the trustee of the Trust, shall withhold from any payments made to a Participant under this Plan all federal,
state and local income, employment and other taxes required to be withheld by the Employer(s), or the trustee of the Trust, in connection with such payments, in amounts and in a manner to be determined in the sole discretion of the Employer(s) and
the trustee of the Trust. 

  

 -13- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  
 ARTICLE 4 

Scheduled Distribution; Unforeseeable Emergencies  
  

	4.1	Scheduled Distribution. In connection with each election to defer an Annual Deferral Amount, a Participant may irrevocably elect to receive a Scheduled Distribution,
in the form of a lump sum payment, from the Plan with respect to all or a portion of the Annual Deferral Amount. The Scheduled Distribution shall be a lump sum payment in an amount that is equal to the portion of the Annual Deferral Amount the
Participant elected to have distributed as a Scheduled Distribution, plus amounts credited or debited in the manner provided in Section 3.9 above on that amount, calculated as of the close of business on or around the date on which the
Scheduled Distribution becomes payable, as determined by the Committee in its sole discretion. Subject to the other terms and conditions of this Plan, each Scheduled Distribution elected shall be paid out during a sixty (60) day period
commencing immediately after the first day of any Plan Year designated by the Participant (the “Scheduled Distribution Date”). The Plan Year designated by the Participant must be at least three (3) Plan Years after the end of the Plan
Year to which the Participant’s deferral election described in Section 3.3 relates, unless otherwise provided on an Election Form approved by the Committee in its sole discretion. By way of example, if a Scheduled Distribution is elected
for Annual Deferral Amounts that are earned in the Plan Year commencing January 1, 2007, the earliest Scheduled Distribution Date that may be designated by a Participant would be January 1, 2011, and the Scheduled Distribution would become
payable during the sixty (60) day period commencing immediately after such Scheduled Distribution Date. 

  

	4.2	Postponing Scheduled Distributions. A Participant may elect to postpone a Scheduled Distribution described in Section 4.1 above, and have such amount paid out
during a sixty (60) day period commencing immediately after an allowable alternative distribution date designated by the Participant in accordance with this Section 4.2. In order to make this election, the Participant must submit a new
Scheduled Distribution Election Form to the Committee in accordance with the following criteria: 

  

	 	(a)	Such Scheduled Distribution Election Form must be submitted to and accepted by the Committee in its sole discretion at least twelve (12) months prior to the Participant’s
previously designated Scheduled Distribution Date; 

  

	 	(b)	The new Scheduled Distribution Date selected by the Participant must be the first day of a Plan Year, and must be at least five years after the previously designated Scheduled
Distribution Date; and 

  

	 	(c)	The election of the new Scheduled Distribution Date shall have no effect until at least twelve (12) months after the date on which the election is made.

  

	4.3	Other Benefits Take Precedence Over Scheduled Distributions. Should a Benefit Distribution Date occur that triggers a benefit under Articles 5, 6, 7, 8, or 9, any
Annual Deferral Amount that is subject to a Scheduled Distribution election under Section 4.1 shall not be paid in accordance with Section 4.1, but shall be paid in accordance with the other applicable Article. Notwithstanding the
foregoing, the Committee shall interpret this Section 4.3 in a manner that is consistent with Code Section 409A and related Treasury guidance and Regulations. 

  

 -14- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	4.4	Unforeseeable Emergencies. 

  

	 	(a)	If the Participant experiences an Unforeseeable Emergency, the Participant may petition the Committee to receive a partial or full payout from the Plan, subject to the provisions
set forth below. 

  

	 	(b)	The payout, if any, from the Plan shall not exceed the lesser of (i) the Participant’s vested Account Balance, calculated as of the close of business on or around the date
on which the amount becomes payable, as determined by the Committee in its sole discretion, or (ii) the amount necessary to satisfy the Unforeseeable Emergency, plus amounts necessary to pay Federal, state, or local income taxes or penalties
reasonably anticipated as a result of the distribution. Notwithstanding the foregoing, a Participant may not receive a payout from the Plan to the extent that the Unforeseeable Emergency is or may be relieved (A) through reimbursement or
compensation by insurance or otherwise, (B) by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not itself cause severe financial hardship or (C) by cessation of deferrals under this Plan.

  

	 	(c)	If the Committee, in its sole discretion, approves a Participant’s petition for payout from the Plan, the Participant shall receive a payout from the Plan within sixty
(60) days of the date of such approval, and the Participant’s deferrals under the Plan shall be terminated as of the date of such approval. 

  

	 	(d)	In addition, a Participant’s deferral elections under this Plan shall be terminated to the extent the Committee determines, in its sole discretion, that termination of such
Participant’s deferral elections is required pursuant to Treas. Reg. §1.401(k)-1(d)(3) for the Participant to obtain a hardship distribution from an Employer’s 401(k) Plan. If the Committee determines, in its sole discretion, that a
termination of the Participant’s deferrals is required in accordance with the preceding sentence, the Participant’s deferrals shall be terminated as soon as administratively practicable following the date on which such determination is
made. 

  

	 	(e)	Notwithstanding the foregoing, the Committee shall interpret all provisions relating to a payout and/or termination of deferrals under this Section 4.4 in a manner that is
consistent with Code Section 409A and related Treasury guidance and Regulations. 

 ARTICLE 5 
 Change in Control Benefit 
  

	5.1	Change in Control Benefit. A Participant, in connection with his or her commencement of participation in the Plan, shall irrevocably elect on an Election Form whether
to (i) receive a Change in Control Benefit upon the occurrence of a Change in Control, which shall be equal to the Participant’s vested Account Balance, calculated as of the close of business on or around the Participant’s Benefit
Distribution Date, as determined by the Committee in its sole discretion, or (ii) to have his or her Account Balance remain in the Plan upon the occurrence of a Change in Control and to have his or her Account Balance remain subject to the
terms and conditions of the Plan. If a Participant does not make any election with respect to the payment of the Change in Control Benefit, then such Participant’s Account Balance shall remain in the Plan upon a Change in Control and shall be
subject to the terms and conditions of the Plan. 

  

 -15- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	5.2	Payment of Change in Control Benefit. The Change in Control Benefit, if any, shall be paid to the Participant in a lump sum no later than sixty (60) days after
the Participant’s Benefit Distribution Date. Notwithstanding the foregoing, the Committee shall interpret all provisions in this Plan relating to a Change in Control Benefit in a manner that is consistent with Code Section 409A and related
Treasury guidance and Regulations. 

 ARTICLE 6 
 Retirement Benefit 
  

	6.1	Retirement Benefit. A Participant who Retires shall receive, as a Retirement Benefit, his or her vested Account Balance, calculated as of the close of business on or
around the Participant’s Benefit Distribution Date, as determined by the Committee in its sole discretion. 

  

	6.2	Payment of Retirement Benefit. 

  

	 	(a)	In connection with a Participant’s election to defer an Annual Deferral Amount, the Participant shall elect the form in which his or her Annual Account for such Plan Year will
be paid. The Participant may elect to receive each Annual Account in the form of a lump sum or pursuant to an Annual Installment Method of five (5), ten (10) or fifteen (15) years. If a Participant does not make any election with respect
to the payment of an Annual Account, then the Participant shall be deemed to have elected to receive such Annual Account as a lump sum. 

  

	 	(b)	A Participant may change the form of payment for an Annual Account by submitting an Election Form to the Committee in accordance with the following criteria:

  

	 	(i)	The election to modify the form of payment for such Annual Account shall have no effect until at least twelve (12) months after the date on which the election is made; and

  

	 	(ii)	The first payment related to such Annual Account shall be delayed at least five (5) years from the originally scheduled Benefit Distribution Date for such Annual Account
described in Section 1.8(a). 

  

	 	 	For purposes of applying the requirements above, the right to receive an Annual Account in installment payments shall be treated as the entitlement to a single payment. The
Committee shall interpret all provisions relating to an election described in this Section 6.2 in a manner that is consistent with Code Section 409A and related Treasury guidance or Regulations. 

  

	 	 	The Election Form most recently accepted by the Committee that has become effective shall govern the payout of the applicable Annual Account. 

  

	 	(c)	The lump sum payment shall be made, or installment payments shall commence, no later than sixty (60) days after the Benefit Distribution Date. Remaining installments, if any,
shall continue in accordance with the Participant’s election for each Annual Account and shall be paid no later than sixty (60) days after each anniversary of the Benefit Distribution Date. 

  

 -16- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  
 ARTICLE 7 

Termination Benefit 
  

	7.1	Termination Benefit. A Participant who experiences a Termination of Employment shall receive, as a Termination Benefit, his or her vested Account Balance,
calculated as of the close of business on or around the Participant’s Benefit Distribution Date, as determined by the Committee in its sole discretion. 

  

	7.2	Payment of Termination Benefit. The Termination Benefit shall be paid to the Participant in a lump sum payment no later than sixty (60) days after the
Participant’s Benefit Distribution Date. 

 ARTICLE 8 
 Disability Benefit 
  

	8.1	Disability Benefit. Upon a Participant’s Disability, the Participant shall receive a Disability Benefit, which shall be equal to the Participant’s vested
Account Balance, calculated as of the close of business on or around the Participant’s Benefit Distribution Date, as selected by the Committee in its sole discretion. 

  

	8.2	Payment of Disability Benefit. 

  

	 	(a)	A Participant, in connection with his or her commencement of participation in the Plan, shall elect on an Election Form to receive the Disability Benefit in a lump sum or pursuant
to an Annual Installment Method of up to (10) years. If a Participant does not make any election with respect to the payment of the Disability Benefit, then the Participant shall be deemed to have elected to receive such Disability Benefit in a
lump sum. 

  

	 	(b)	A Participant may change the form of payment of the Disability Benefit by submitting an Election Form to the Committee, provided that any such change shall not be effective until at
least twelve (12) months after the date on which the election is submitted. For purposes of this Plan, the right to receive the Disability Benefit in installment payments shall be treated as the entitlement to a single payment.

  

	 	(c)	The lump sum payment shall be made, or installment payments shall commence, no later than sixty (60) days after the Participant’s Benefit Distribution Date. Remaining
installments, if any, shall be paid no later than sixty (60) days after each anniversary of the Participant’s Benefit Distribution Date. 

 ARTICLE 9  
 Death Benefit 
  

	9.1	Death Benefit. The Participant’s Beneficiary(ies) shall receive a Death Benefit upon the Participant’s death which will be equal to the Participant’s
vested Account Balance, calculated as of the close of business on or around the Participant’s Benefit Distribution Date, as selected by the Committee in its sole discretion. 

  

 -17- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	9.2	Payment of Death Benefit. The Death Benefit shall be paid to the Participant’s Beneficiary(ies) in a lump sum payment no later than sixty (60) days after the
Participant’s Benefit Distribution Date. 

 ARTICLE 10 
 Beneficiary Designation 
  

	10.1	Beneficiary. Each Participant shall have the right, at any time, to designate his or her Beneficiary(ies) (both primary as well as contingent) to receive any benefits
payable under the Plan to a beneficiary upon the death of a Participant. The Beneficiary designated under this Plan may be the same as or different from the Beneficiary designation under any other plan of an Employer in which the Participant
participates. 

  

	10.2	Beneficiary Designation; Change; Spousal Consent. A Participant shall designate his or her Beneficiary by completing and signing the Beneficiary Designation Form, and
returning it to the Committee or its designated agent. A Participant shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the Committee’s rules and
procedures, as in effect from time to time. If the Participant names someone other than his or her spouse as a Beneficiary, the Committee may, in its sole discretion, determine that spousal consent is required to be provided in a form designated by
the Committee, executed by such Participant’s spouse and returned to the Committee. Upon the acceptance by the Committee of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be canceled. The Committee shall
be entitled to rely on the last Beneficiary Designation Form filed by the Participant and accepted by the Committee prior to his or her death. 

  

	10.3	Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until received and acknowledged in writing by the Committee or its
designated agent. 

  

	10.4	No Beneficiary Designation. If a Participant fails to designate a Beneficiary as provided in Sections 10.1, 10.2 and 10.3 above or, if all designated
Beneficiaries predecease the Participant or die prior to complete distribution of the Participant’s benefits, then the Participant’s designated Beneficiary shall be deemed to be his or her surviving spouse. If the Participant has no
surviving spouse, the benefits remaining under the Plan to be paid to a Beneficiary shall be payable to the executor or personal representative of the Participant’s estate. 

  

	10.5	Doubt as to Beneficiary. If the Committee has any doubt as to the proper Beneficiary to receive payments pursuant to this Plan, the Committee shall have the right,
exercisable in its discretion, to cause the Participant’s Employer to withhold such payments until this matter is resolved to the Committee’s satisfaction. 

  

	10.6	Discharge of Obligations. The payment of benefits under the Plan to a Beneficiary shall fully and completely discharge all Employers and the Committee from all further
obligations under this Plan with respect to the Participant, and that Participant’s Plan Agreement shall terminate upon such full payment of benefits. 

  

 -18- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  
 ARTICLE 11

 Leave of Absence 
  

	11.1	Paid Leave of Absence. If a Participant is authorized by the Participant’s Employer to take a paid leave of absence from the employment of the Employer, and such
leave of absence does not constitute a separation from service, as determined by the Committee in accordance with Code Section 409A and related Treasury guidance and Regulations, (i) the Participant shall continue to be considered eligible
for the benefits provided in Articles 4, 5, 6, 7, 8, or 9 in accordance with the provisions of those Articles, and (ii) the Annual Deferral Amount shall continue to be withheld during such paid leave of absence in accordance with
Section 3.3. 

  

	11.2	Unpaid Leave of Absence. If a Participant is authorized by the Participant’s Employer to take an unpaid leave of absence from the employment of the Employer for
any reason, and such leave of absence does not constitute a separation from service, as determined by the Committee in accordance with Code Section 409A and related Treasury guidance and Regulations, such Participant shall continue to be
eligible for the benefits provided in Articles 4, 5, 6, 7, 8, or 9 in accordance with the provisions of those Articles. However, the Participant shall be excused from fulfilling his or her Annual Deferral Amount commitment that would otherwise have
been withheld during the remainder of the Plan Year in which the unpaid leave of absence is taken. During the unpaid leave of absence, the Participant shall not be allowed to make any additional deferral elections. However, if the Participant
returns to employment, the Participant may elect to defer an Annual Deferral Amount for the Plan Year following his or her return to employment and for every Plan Year thereafter while a Participant in the Plan, provided such deferral elections are
otherwise allowed and an Election Form is delivered to and accepted by the Committee for each such election in accordance with Section 3.3 above. 

  

	11.3	Leaves Resulting in Separation from Service. In the event that a Participant’s leave of absence from his or her Employer constitutes a separation from service, as
determined by the Committee in accordance with Code Section 409A and related Treasury guidance and Regulations, the Participant’s vested Account Balance shall be distributed to the Participant in accordance with Article 6 or 7 of this
Plan, as applicable. 

 ARTICLE 12 
 Termination of Plan, Amendment or Modification 
  

	12.1	Termination of Plan. Although each Employer anticipates that it will continue the Plan for an indefinite period of time, there is no guarantee that any Employer will
continue the Plan or will not terminate the Plan at any time in the future. Accordingly, each Employer reserves the right to Terminate the Plan. In the event of a Termination of the Plan, the Measurement Funds available to Participants following the
Termination of the Plan shall be comparable in number and type to those Measurement Funds available to Participants in the Plan Year preceding the Plan Year in which the Termination of the Plan is effective. Following a Termination of the Plan,
Participant Account Balances shall remain in the Plan until the Participant becomes eligible for the benefits provided in Articles 4, 5, 6, 7, 8 or 9 in accordance with the provisions of those Articles. The Termination of the Plan shall not
adversely affect any Participant or Beneficiary who has become entitled to the payment of any benefits under the Plan as of the date of termination. 

  

 -19- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	  	Notwithstanding the foregoing, to the extent permissible under Code Section 409A and related Treasury guidance or Regulations, during the thirty (30) days preceding or
within twelve (12) months following a Change in Control, an Employer shall be permitted to (i) terminate the Plan by action of its board of directors, and (ii) distribute the vested Account Balances to Participants in a lump sum no
later than twelve (12) months after the Change in Control, provided that all other substantially similar arrangements sponsored by such Employer are also terminated and all balances in such arrangements are distributed within twelve
(12) months of the termination of such arrangements.  

  

	12.2	Amendment. 

  

	 	(a)	Any Employer may, at any time, amend or modify the Plan in whole or in part with respect to that Employer. Notwithstanding the foregoing, (i) no amendment or modification shall
be effective to decrease the value of a Participant’s vested Account Balance in existence at the time the amendment or modification is made, and (ii) no amendment or modification of this Section 12.2 or Section 13.2 of the Plan
shall be effective. 

  

	 	(b)	Notwithstanding any provision of the Plan to the contrary, in the event that the Company determines that any provision of the Plan may cause amounts deferred under the Plan to
become immediately taxable to any Participant under Code Section 409A and related Treasury guidance or Regulations, the Company may (i) adopt such amendments to the Plan and appropriate policies and procedures, including amendments and
policies with retroactive effect, that the Company determines necessary or appropriate to preserve the intended tax treatment of the Plan benefits provided by the Plan, (ii) take such other actions as the Company determines necessary or
appropriate to comply with the requirements of Code Section 409A and related Treasury guidance or Regulations, and/or, if necessary take such actions as permitted by Section 17.16. 

  

	12.3	Plan Agreement. Despite the provisions of Sections 12.1 and 12.2 above, if a Participant’s Plan Agreement contains benefits or limitations that are not in
this Plan document, the Employer may only amend or terminate such provisions with the written consent of the Participant. 

  

	12.4	Effect of Payment. The full payment of the Participant’s vested Account Balance under Articles 4, 5, 6, 7, 8, or 9 of the Plan shall completely discharge all
obligations to a Participant and his or her designated Beneficiaries under this Plan, and the Participant’s Plan Agreement shall terminate. 

 ARTICLE 13 
 Administration 
  

	13.1	Committee Duties. Except as otherwise provided in this Article 13, this Plan shall be administered by a Committee, which shall consist of the Board, or such committee
as the Board shall appoint. Members of the Committee may be Participants under this Plan. The Committee shall also have the discretion and authority to (i) make, amend, interpret, and enforce all appropriate rules and regulations for the
administration of this Plan, (ii) decide or resolve any and all questions, including benefit entitlement determinations and interpretations of this Plan, as may arise in connection with the Plan, and (iii) appoint one or more agents in
accordance with 

  

 -20- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	    	Section 13.3 below. Any individual serving on the Committee who is a Participant shall not vote or act on any matter relating solely to himself or herself. When making a
determination or calculation, the Committee shall be entitled to rely on information furnished by a Participant or the Company. 

  

	13.2	Administration Upon Change In Control. Within one hundred and twenty (120) days following a Change in Control, the individuals who comprised the Committee
immediately prior to the Change in Control (whether or not such individuals are members of the Committee following the Change in Control) may, by written consent of the majority of such individuals, appoint an independent third party administrator
(the “Administrator”) to perform any or all of the Committee’s duties described in Section 13.1 above, including without limitation, the power to determine any questions arising in connection with the administration or
interpretation of the Plan, and the power to make benefit entitlement determinations. Upon and after the effective date of such appointment, (i) the Company must pay all reasonable administrative expenses and fees of the Administrator, and
(ii) the Administrator may only be terminated with the written consent of the majority of Participants with an Account Balance in the Plan as of the date of such proposed termination. 

  

	13.3	Agents. In the administration of this Plan, the Committee or the Administrator, as applicable, may, from time to time, employ agents and delegate to them such
administrative duties as it sees fit (including acting through a duly appointed representative) and may from time to time consult with counsel. 

  

	13.4	Binding Effect of Decisions. The decision or action of the Committee or Administrator, as applicable, with respect to any question arising out of or in connection with
the administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in the Plan. 

  

	13.5	Indemnity of Committee. All Employers shall indemnify and hold harmless the members of the Committee, any Employee to whom the duties of the Committee may be
delegated, and the Administrator against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Plan, except in the case of willful misconduct by the Committee, any of its members,
any such Employee or the Administrator. 

  

	13.6	Employer Information. To enable the Committee and/or Administrator to perform its functions, the Company and each Employer shall supply full and timely information to
the Committee and/or Administrator, as the case may be, on all matters relating to the Plan, the Trust, the Participants and their Beneficiaries, the Account Balances of the Participants, the compensation of its Participants, the date and
circumstances of the Retirement, Disability, death or Termination of Employment of its Participants, and such other pertinent information as the Committee or Administrator may reasonably require. 

 ARTICLE 14 
 Other Benefits
and Agreements 
  

	14.1	Coordination with Other Benefits. The benefits provided for a Participant and Participant’s Beneficiary under the Plan are in addition to any other benefits
available to such Participant under any other plan or program for employees of the Participant’s Employer. The Plan shall supplement and shall not supersede, modify or amend any other such plan or program except as may otherwise be expressly
provided. 

  

 -21- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  
 ARTICLE 15

 Claims Procedures 
  

	15.1	Presentation of Claim. Any Participant or Beneficiary of a deceased Participant (such Participant or Beneficiary being referred to below as a “Claimant”) may
deliver to the Committee a written claim for a determination with respect to the amounts distributable to such Claimant from the Plan. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty
(60) days after such notice was received by the Claimant. All other claims must be made within 180 days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination
desired by the Claimant. 

  

	15.2	Notification of Decision. The Committee shall consider a Claimant’s claim within a reasonable time, but no later than ninety (90) days after receiving the
claim. If the Committee determines that special circumstances require an extension of time for processing the claim, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial ninety (90) day
period. In no event shall such extension exceed a period of ninety (90) days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Committee
expects to render the benefit determination. The Committee shall notify the Claimant in writing: 

  

	 	(a)	that the Claimant’s requested determination has been made, and that the claim has been allowed in full; or 

  

	 	(b)	that the Committee has reached a conclusion contrary, in whole or in part, to the Claimant’s requested determination, and such notice must set forth in a manner calculated to
be understood by the Claimant: 

  

	 	(i)	the specific reason(s) for the denial of the claim, or any part of it; 

  

	 	(ii)	specific reference(s) to pertinent provisions of the Plan upon which such denial was based; 

  

	 	(iii)	a description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary;

  

	 	(iv)	an explanation of the claim review procedure set forth in Section 15.3 below; and 

  

	 	(v)	a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review. 

  

	15.3	Review of a Denied Claim. On or before sixty (60) days after receiving a notice from the Committee that a claim has been denied, in whole or in part, a Claimant
(or the Claimant’s duly authorized representative) may file with the Committee a written request for a review of the denial of the claim. The Claimant (or the Claimant’s duly authorized representative): 

  

	 	(a)	may, upon request and free of charge, have reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to
the claim for benefits; 

  

 -22- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	 	(b)	may submit written comments or other documents; and/or 

  

	 	(c)	may request a hearing, which the Committee, in its sole discretion, may grant. 

  

	15.4	Decision on Review. The Committee shall render its decision on review promptly, and no later than sixty (60) days after the Committee receives the Claimant’s
written request for a review of the denial of the claim. If the Committee determines that special circumstances require an extension of time for processing the claim, written notice of the extension shall be furnished to the Claimant prior to the
termination of the initial sixty (60) day period. In no event shall such extension exceed a period of sixty (60) days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension
of time and the date by which the Committee expects to render the benefit determination. In rendering its decision, the Committee shall take into account all comments, documents, records and other information submitted by the Claimant relating to
the claim, without regard to whether such information was submitted or considered in the initial benefit determination. The decision must be written in a manner calculated to be understood by the Claimant, and it must contain:

  

	 	(a)	specific reasons for the decision; 

  

	 	(b)	specific reference(s) to the pertinent Plan provisions upon which the decision was based; 

  

	 	(c)	a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of, all documents, records and other information relevant (as
defined in applicable ERISA regulations) to the Claimant’s claim for benefits; and 

  

	 	(d)	a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a). 

  

	15.5	Legal Action. A Claimant’s compliance with the foregoing provisions of this Article 15 is a mandatory prerequisite to a Claimant’s right to commence any
legal action with respect to any claim for benefits under this Plan. 

 ARTICLE 16 
 Trust 
  

	16.1	Establishment of the Trust. In order to provide assets from which to fulfill its obligations to the Participants and their Beneficiaries under the Plan, the Company
may establish a trust by a trust agreement with a third party, the trustee, to which each Employer may, in its discretion, contribute cash or other property, including securities issued by the Company, to provide for the benefit payments under the
Plan, (the “Trust”). 

  

	16.2	Interrelationship of the Plan and the Trust. The provisions of the Plan and the Plan Agreement shall govern the rights of a Participant to receive distributions
pursuant to the Plan. The provisions of the Trust shall govern the rights of the Employers, Participants and the creditors of the Employers to the assets transferred to the Trust. Each Employer shall at all times remain liable to carry out its
obligations under the Plan. 

  

 -23- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	16.3	Distributions From the Trust. Each Employer’s obligations under the Plan may be satisfied with Trust assets distributed pursuant to the terms of the Trust, and
any such distribution shall reduce the Employer’s obligations under this Plan. 

 ARTICLE 17 
 Miscellaneous 
  

	17.1	Status of Plan. The Plan is intended to be a plan that is not qualified within the meaning of Code Section 401(a) and that “is unfunded and is maintained by
an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees” within the meaning of ERISA Sections 201(2), 301(a)(3) and 401(a)(1). The Plan shall be administered and
interpreted (i) to the extent possible in a manner consistent with the intent described in the preceding sentence, and (ii) in accordance with Code Section 409A and related Treasury guidance and Regulations. 

 

	17.2	Unsecured General Creditor. Participants and their Beneficiaries, heirs, successors and assigns shall have no legal or equitable rights, interests or claims in any
property or assets of an Employer. For purposes of the payment of benefits under this Plan, any and all of an Employer’s assets shall be, and remain, the general, unpledged unrestricted assets of the Employer. Subject to Article 16, an
Employer’s obligation under the Plan, if any, shall be merely that of an unfunded and unsecured promise to pay money in the future. 

  

	17.3	Employer’s Liability. An Employer’s liability for the payment of benefits shall be defined only by the Plan and the Plan Agreement, as entered into between
the Employer and a Participant. An Employer shall have no obligation to a Participant under the Plan except as expressly provided in the Plan and his or her Plan Agreement. 

  

	17.4	Nonassignability. Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise
encumber, transfer, hypothecate, alienate or convey in advance of actual receipt, the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are expressly declared to be, unassignable and non-transferable. No
part of the amounts payable shall, prior to actual payment, be subject to seizure, attachment, garnishment or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, be
transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency or be transferable to a spouse as a result of a property settlement or otherwise. 

  

	17.5	Not a Contract of Employment. The terms and conditions of this Plan shall not be deemed to constitute a contract of employment between any Employer and the
Participant. Such employment is hereby acknowledged to be an “at will” employment relationship that can be terminated at any time for any reason, or no reason, with or without cause, and with or without notice, unless expressly provided in
a written employment agreement. Nothing in this Plan shall be deemed to give a Participant the right to be retained in the service of any Employer, either as an Employee or a Director, or to interfere with the right of any Employer to discipline or
discharge the Participant at any time. 

  

	17.6	Furnishing Information. A Participant or his or her Beneficiary will cooperate with the Committee by furnishing any and all information requested by the Committee and
take such 

  

 -24- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	  	other actions as may be requested in order to facilitate the administration of the Plan and the payments of benefits hereunder, including but not limited to taking such physical
examinations as the Committee may deem necessary. 

  

	17.7	Terms. Whenever any words are used herein in the masculine, they shall be construed as though they were in the feminine in all cases where they would so apply; and
whenever any words are used herein in the singular or in the plural, they shall be construed as though they were used in the plural or the singular, as the case may be, in all cases where they would so apply. 

  

	17.8	Captions. The captions of the articles, sections and paragraphs of this Plan are for convenience only and shall not control or affect the meaning or construction of
any of its provisions. 

  

	17.9	Governing Law. Subject to ERISA, the provisions of this Plan shall be construed and interpreted according to the internal laws of the State of Texas without regard to
its conflicts of laws principles. 

  

	17.10	Notice. Any notice or filing required or permitted to be given to the Committee under this Plan shall be sufficient if in writing and hand-delivered, or sent by
registered or certified mail, to the address below: 

  

	
	Hercules Offshore, Inc.
	Attn: General Counsel
	11 Greenway Plaza, Suite 2950
	Houston, Texas 77046

  

	  	Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.

  

	  	Any notice or filing required or permitted to be given to a Participant under this Plan shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known
address of the Participant. 

  

	17.11	Successors. The provisions of this Plan shall bind and inure to the benefit of the Participant’s Employer and its successors and assigns and the Participant and
the Participant’s designated Beneficiaries. 

  

	17.12	Spouse’s Interest. The interest in the benefits hereunder of a spouse of a Participant who has predeceased the Participant shall automatically pass to the
Participant and shall not be transferable by such spouse in any manner, including but not limited to such spouse’s will, nor shall such interest pass under the laws of intestate succession. 

  

	17.13	Validity. In case any provision of this Plan shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but
this Plan shall be construed and enforced as if such illegal or invalid provision had never been inserted herein. 

  

	17.14	Incompetent. If the Committee determines in its discretion that a benefit under this Plan is to be paid to a minor, a person declared incompetent or to a person
incapable of handling the disposition of that person’s property, the Committee may direct payment of such benefit to the guardian, legal representative or person having the care and custody of such minor, incompetent or incapable person. The
Committee may require proof of minority, incompetence, incapacity or 

  

 -25- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	  	guardianship, as it may deem appropriate prior to distribution of the benefit. Any payment of a benefit shall be a payment for the account of the Participant and the
Participant’s Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Plan for such payment amount. 

  

	17.15	Court Order. The Committee is authorized to comply with any court order in any action in which the Plan or the Committee has been named as a party, including any
action involving a determination of the rights or interests in a Participant’s benefits under the Plan. Notwithstanding the foregoing, the Committee shall interpret this provision in a manner that is consistent with Code Section 409A and
other applicable tax law. In addition, if necessary to comply with a qualified domestic relations order, as defined in Code Section 414(p)(1)(B), pursuant to which a court has determined that a spouse or former spouse of a Participant has an
interest in the Participant’s benefits under the Plan, the Committee, in its sole discretion, shall have the right to immediately distribute the spouse’s or former spouse’s interest in the Participant’s benefits under the Plan to
such spouse or former spouse. 

  

	17.16	Distribution in the Event of Income Inclusion Under 409A. If any portion of a Participant’s Account Balance under this Plan is required to be included in income
by the Participant prior to receipt due to a failure of this Plan to meet the requirement of Code Section 409A and related Treasury guidance or Regulations, the Participant may petition the Committee or Administrator, as applicable, for a
distribution of that portion of his or her Account Balance that is required to be included in his or her income. Upon the grant of such a petition, which grant shall not be unreasonably withheld, the Participant’s Employer shall
distribute to the Participant immediately available funds in an amount equal to the portion of his or her Account Balance required to be included in income as a result of the failure of the Plan to meet the requirements of Code Section 409A and
related Treasury guidance or Regulations, which amount shall not exceed the Participant’s unpaid vested Account Balance under the Plan. If the petition is granted, such distribution shall be made within ninety (90) days of the date when
the Participant’s petition is granted. Such a distribution shall affect and reduce the Participant’s benefits to be paid under this Plan. 

  

	17.17	Deduction Limitation on Benefit Payments. If an Employer reasonably anticipates that the Employer’s deduction with respect to any distribution from this Plan
would be limited or eliminated by application of Code Section 162(m), then to the extent deemed necessary by the Employer to ensure that the entire amount of any distribution from this Plan is deductible, the Employer may delay payment of any
amount that would otherwise be distributed from this Plan. Any amounts for which distribution is delayed pursuant to this Section shall continue to be credited/debited with additional amounts in accordance with Section 3.9 above. The delayed
amounts (and any amounts credited thereon) shall be distributed to the Participant (or his or her Beneficiary in the event of the Participant’s death) at the earliest date the Employer reasonably anticipates that the deduction of the payment of
the amount will not be limited or eliminated by application of Code Section 162(m). 

  

	17.18	Insurance. The Employers, on their own behalf or on behalf of the trustee of the Trust, and, in their sole discretion, may apply for and procure insurance on the life
of the Participant, in such amounts and in such forms as the Trust may choose. The Employers or the trustee of the Trust, as the case may be, shall be the sole owner and beneficiary of any such insurance. The 

  

 -26- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  

	  	Participant shall have no interest whatsoever in any such policy or policies, and at the request of the Employers shall submit to medical examinations and supply such information
and execute such documents as may be required by the insurance company or companies to whom the Employers have applied for insurance. 

 IN
WITNESS WHEREOF, the Company has signed this Plan document as of January 10, 2007. 
  

			
	“Company”
	 Hercules Offshore, Inc., a Delaware corporation

		
	 By:
	 	 /s/ James W. Noe

	 Title:
	 	 Vice President, General Counsel and Secretary

  

 -27- 

 Hercules Offshore, Inc. 
 Deferred Compensation Plan 
 Master Plan Document 
  

  
 APPENDIX A

 LIMITED TRANSITION RELIEF AVAILABLE UNDER CODE SECTION 409A AND RELATED 
 TREASURY GUIDANCE AND REGULATIONS 
 Unless
otherwise provided below, the capitalized terms below shall have the same meaning as provided in the Plan. 
  

	 	1.	Opportunity to Make New Distribution Elections. Notwithstanding the required deadline for the submission of an initial distribution election described in Articles 4,
5, 6, 7 and 8 of the Plan, the Committee may, as permitted by Code Section 409A and related Treasury guidance or Regulations, provide a limited period in which Participants may make new distribution elections by submitting an Election Form on
or before the deadline established by the Committee, which in no event shall be later than December 31, 2007. Any distribution election made in accordance with the requirements established by the Committee pursuant to this section, shall not be
treated as a change in the form or timing of a Participant’s benefit payment for purposes of Code Section 409A or the Plan. 

  

	 	    	The Committee shall interpret all provisions relating to an election submitted in accordance with this section in a manner that is consistent with Code Section 409A and related
Treasury guidance or Regulations. 

  

 -28-Form of Promissory Note to Briad Development West LLC

 EXHIBIT 4.1 
  

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND HAS BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES
ACT OF 1933. 
  
 PROMISSORY NOTE 
  

			
	 $800,000
	 	As of February 2, 2006
	 	 	Livingston, New Jersey

  
 For value received,
Orange REIT, Inc., a Maryland corporation (the “Company”), promises to pay to the order of Briad Development West LLC (the “Holder”), the aggregate principal amount of the advances as set forth on Schedule A annexed
hereto and made a part hereof, up to the maximum principal sum of Eight Hundred Thousand Dollars ($800,000.00), together with interest thereon. 
  
 The date and amount of each such advance shall be endorsed by the Holder on the grid annexed hereto as Schedule A, and when so endorsed shall
represent evidence thereof binding upon the Company. Any failure by the Holder to so endorse shall in no way mitigate or discharge the obligations of the Company to repay any advances actually made. 
  
 Interest shall accrue on each advance from the date of such advance on the
unpaid principal amount of such advance at a rate equal to four percent (4%) per annum, compounded annually. 
  
 This Note is subject to the following additional terms and conditions. 
  
 1. Maturity. 
  
 (a) Subject to Section 1(b), principal and any accrued but unpaid interest under this Note shall be due and payable upon the earlier of (i) the first
closing of the Company’s public offering (the “First Closing”) reflected in the Company’s Registration Statement on Form S-11 (the “Offering”) or (ii) the Company’s termination of the Offering without a closing,
provided, however, that if the payment in full of the amounts due under this Note upon the First Closing would result in the Company paying offering expenses exceeding 15% of the gross proceeds of the entire Offering, the Company shall
be entitled to defer 

 the payment of such portion of the amounts due under this Note until the next subsequent closing(s) of the Offering as is
necessary to prevent the offering expenses paid out of the proceeds exceeding 15% of the gross proceeds of the entire Offering. If, following the final closing on the Offering, the payment of any remaining balance of this Note would result in the
Company paying offering expenses exceeding 15% of the gross proceeds of the entire Offering, the Company shall not be required to pay any amount that would result in the payment by the Company of offering expenses exceeding 15% of the gross proceeds
of the entire Offering. 
  
 (b) Subject to the reduction set
forth in paragraph (a), the entire unpaid principal sum of this Note, together with accrued and unpaid interest thereon, shall become immediately due and payable upon the insolvency of the Company, the commission of any act of bankruptcy by the
Company, the execution by the Company of a general assignment for the benefit of creditors, the filing by or against the Company of a petition in bankruptcy or any petition for relief under the federal bankruptcy act or the continuation of such
petition without dismissal for a period of ninety (90) days or more, or the appointment of a receiver or trustee to take possession of the property or assets of the Company. 
  
 2. Payment. All payments shall be made in lawful money of the United States of America at such place as the
Holder hereof may from time to time designate in writing to the Company. Payment shall be credited first to the accrued interest then due and payable and the remainder applied to principal. Prepayment of this Note may be made at any time.

  
 3. Transfer; Successors and Assigns. The terms
and conditions of this Note shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. This Note may be transferred only upon surrender of the original Note for registration of transfer, duly endorsed, or
accompanied by a duly executed written instrument of transfer in form satisfactory to the Holder. Thereupon, a new note for the same principal amount and interest will be issued to, and registered in the name of, the transferee. Interest and
principal are payable only to the registered holder of this Note. 
  
 4. Waiver of Defenses. Every maker, endorser and guarantor of this Note, or the obligation represented by this Note, waives presentment, demand, notice, protest and all other demands or notices (except as otherwise expressly
provided in the Security Agreement), in connection with the delivery, acceptance, endorsement, performance, default, or enforcement of this Note, assents to any and all extensions or postponements of the time of payment or any other indulgence, to
any substitution, exchange or release of collateral, and/or to the addition or release of any other party or person primarily or secondary liable and generally waives all suretyship defenses and defenses in the nature thereof. 
  
 5. Governing Law. This Note and all acts and transactions
pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and 
  

 2 

 interpreted in accordance with the laws of the State of New Jersey, without giving effect to principles of conflicts of
law. 
  
 6. Notices. Any notice required or
permitted by this Note shall be in writing and shall be deemed sufficient upon delivery, when delivered personally or by a nationally-recognized delivery service (such as Federal Express or UPS), or forty-eight (48) hours after being deposited in
the U.S. mail, as certified or registered mail, with postage prepaid, addressed to the party to be notified at such party’s address as set forth below or as subsequently modified by written notice. 
  
 7. Amendments and Waivers. Any term of this Note may be
amended only with the written consent of the Company and the Holder. Any amendment or waiver effected in accordance with this Section 7 shall be binding upon the Company, the Holder and each transferee of the Note. 
  
 8. Action to Collect on Note. If action is instituted to
collect on this Note, the Company promises to pay all costs and expenses, including reasonable attorney’s fees, incurred in connection with such action. 
  

Executed and delivered by the Company as a sealed instrument as of the date set forth above. 
  
  

					
	ORANGE REIT, INC. 
		
	By:	 	/s/     David Cahill
	 	 	Name:	 	David Cahill
	 	 	Title:	 	CFO/Treasurer
			
	 	 	 	 	 
	 	 	Address:	 	78 Okner Parkway
	 	 	 	 	Livingston, NJ 07039

 AGREED TO AND ACCEPTED: 
  

					
	BRIAD DEVELOPMENT WEST LLC
		
	By:	 	/s/    Mark Wascavaga
	 	 	Name:	 	Mark Wascavaga
	 	 	Title:	 	Controller
			
	 	 	 	 	 
	 	 	Address:	 	78 Okner Parkway
	 	 	 	 	Livingston, NJ 07039

  

 3 

 SCHEDULE A 
  
 To the Promissory Note dated as of January     , 2006 
 made by Orange REIT, Inc. in favor of 
 Briad Development West, LLC 
  

					
	 	 	 
	Date	 	Notation Made By	 	Amount of Advance
	 		 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 

  

 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]