Document:

Tax Sharing Agreement

 Exhibit 10.2 
 EXECUTION COPY  
  
 TAX SHARING AGREEMENT 
 BETWEEN 
 PRIDE INTERNATIONAL, INC. 
 AND 
 SEAHAWK DRILLING, INC. 

 TABLE OF CONTENTS 
  

					
	SECTION 1.	  	Definition of Terms	  	- 1 -
			
	SECTION 2.	  	Allocation of Tax Liabilities and Tax Benefits	  	- 7 -
		
	 2.1     Liability for and the Payment of Taxes
	  	- 7 -
	(a)	  	 Seahawk Liabilities and Payments
	  	- 7 -
	(b)	  	 Pride Liabilities and Payments
	  	- 8 -
	(c)	  	 Rules for Tax Benefits. For purpose of this Section 2:
	  	- 9 -
	 2.2     Allocation Rules
	  	- 10 -
	(a)	  	 General Rule
	  	- 10 -
	(b)	  	 Taxes Resulting from the Internal Distribution or the External Distribution
	  	- 10 -
		  	 Taxes and Tax Items resulting from the Internal Distribution and Taxes and Tax Items resulting from the External Distribution
(collectively, “Distribution Taxes”) will be allocated as follows:
	  	- 10 -
			
	SECTION 3.	  	Preparation and Filing of Tax Returns	  	- 10 -
		
	 3.1     Joint Returns
	  	- 10 -
	(a)	  	 Preparation of Joint Returns
	  	- 10 -
	(b)	  	 Provision of Information and Assistance
	  	- 11 -
	 3.2     Separate Returns
	  	- 12 -
	(a)	  	 Tax Returns to be Prepared by Pride
	  	- 12 -
	(b)	  	 Tax Returns to be Prepared by Seahawk
	  	- 12 -
	(c)	  	 Provision of Information
	  	- 12 -
	 3.3     Special Rules Relating to the Preparation of Tax Returns
	  	- 12 -
	(a)	  	 General Rule
	  	- 12 -
	(b)	  	 Seahawk Tax Returns
	  	- 13 -
	(c)	  	 Election to File Consolidated, Combined or Unitary Tax Returns
	  	- 13 -
	(d)	  	 Carrybacks of Tax Benefits
	  	- 13 -
	(e)	  	 Withholding and Reporting
	  	- 13 -
	(f)	  	 Standard of Performance
	  	- 14 -
	 3.4     Reliance on Exchanged Information
	  	- 14 -
	 3.5     Allocation of Tax Items
	  	- 14 -
			
	SECTION 4.	  	Tax Payments	  	- 15 -
		
	 4.1     Payment of Taxes to Tax Authority
	  	- 15 -
	 4.2     Indemnification Payments
	  	- 15 -
	(a)	  	 Tax Payments Made by the Pride Group
	  	- 15 -
	(b)	  	 Tax Payments Made by the Seahawk Group
	  	- 15 -
	(c)	  	 Credit for Prior Deemed Tax Payments
	  	- 15 -
	(d)	  	 Payments for Tax Benefits
	  	- 15 -
	 4.3     Initial Determinations and Subsequent Adjustments
	  	- 16 -
	 4.4     Interest on Late Payments
	  	- 16 -
	 4.5     Payments by or to Other Group Members
	  	- 16 -
	 4.6     Procedural Matters
	  	- 17 -
	 4.7     Tax Consequences of Payments
	  	- 17 -

  

 i 

					
	SECTION 5.	  	Assistance and Cooperation	  	- 17 -
		
	 5.1     Cooperation
	  	- 17 -
	 5.2     Supplemental Rulings and Supplemental Tax Opinions
	  	- 18 -
			
	SECTION 6.	  	Tax Records	  	- 18 -
		
	 6.1     Retention of Tax Records
	  	- 18 -
	 6.2     Access to Tax Records
	  	- 18 -
	 6.3     Confidentiality
	  	- 19 -
			
	SECTION 7.	  	Tax Contests	  	- 19 -
		
	 7.1     Notices
	  	- 19 -
	 7.2     Control of Tax Contests
	  	- 20 -
	(a)	  	 General Rule
	  	- 20 -
	(b)	  	 Non-Preparer Participation Rights
	  	- 20 -
	 7.3     Cooperation
	  	- 20 -
			
	SECTION 8.	  	Restriction on Certain Actions of Pride and Seahawk	  	- 21 -
		
	 8.1     General Restrictions
	  	- 21 -
	 8.2     Restricted Actions Relating to Tax Materials
	  	- 21 -
	 8.3     Certain Seahawk Actions Following the Effective Time
	  	- 21 -
			
	SECTION 9.	  	General Provisions	  	- 22 -
		
	 9.1     Limitation of Liability
	  	- 22 -
	 9.2     Entire Agreement
	  	- 22 -
	 9.3     Governing Law
	  	- 22 -
	 9.4     Termination
	  	- 22 -
	 9.5     Notices
	  	- 22 -
	 9.6     Counterparts
	  	- 23 -
	 9.7     Binding Effect; Assignment
	  	- 23 -
	 9.8     No Third Party Beneficiaries
	  	- 23 -
	 9.9     Severability
	  	- 23 -
	 9.10   Failure or Indulgence Not Waiver; Remedies Cumulative
	  	- 23 -
	 9.11   Amendments; Waivers
	  	- 23 -
	 9.12   Authority
	  	- 24 -
	 9.13   Construction
	  	- 24 -
	 9.14   Interpretation
	  	- 24 -
	 9.15   Predecessors or Successors
	  	- 24 -
	 9.16   Expenses
	  	- 25 -
	 9.17   Effective Time
	  	- 25 -
	 9.18   Change in Law
	  	- 25 -
	 9.19   Disputes
	  	- 25 -
		
	 APPENDIX A
	  	- 27 -

  

 ii 

 TAX SHARING AGREEMENT 
 THIS TAX SHARING AGREEMENT (this “Agreement”) is entered into as of August 4, 2009, between Pride International, Inc., a Delaware corporation (“Pride”), and Seahawk
Drilling, Inc., a Delaware corporation (“Seahawk”). Unless otherwise indicated, all “Section” references in this Agreement are to sections of this Agreement. 
 RECITALS 
 WHEREAS, Seahawk is a wholly owned Subsidiary of
Pride; and 
 WHEREAS, the Board of Directors of Pride has determined that it would be appropriate and desirable for Pride
to separate the Seahawk Group from the Pride Group, as contemplated by the Master Separation Agreement (the “Separation”); and 
 WHEREAS, in furtherance thereof, the Board of Directors of Pride has determined that, in connection with the Separation, it would be appropriate and desirable for (i) Seahawk to contribute certain assets and
liabilities to Deepwater USA, Inc. (“DeepCo”) and to distribute its entire interest in the stock of DeepCo to Pride in what is intended to qualify as a tax-free transaction described under Sections 368(a)(1)(D) and 355 of the Code (the
“Internal Distribution”), and (ii) Pride to distribute its entire interest in the stock of Seahawk on a pro rata basis to holders of Pride Common Stock in what is intended to qualify as a tax-free transaction described under
Section 355 of the Code (the “External Distribution”); and 
 WHEREAS, the Board of Directors of Seahawk has
also approved such transactions; and 
 WHEREAS, the parties set forth in a Master Separation Agreement the principal
arrangements between them regarding the separation of the Seahawk Group from the Pride Group; and 
 WHEREAS, the parties
desire to provide for and agree upon the allocation between the parties of Taxes and Tax Benefits arising prior to, as a result of, and subsequent to the External Distribution, and provide for and agree upon other matters relating to Taxes.

 NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth below, the parties hereto
agree as follows: 
 SECTION 1.   Definition of Terms.   For purposes of this Agreement
(including the recitals hereof), the following terms have the following meanings: 
 “Affiliate” means with
respect to any Person, any other Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such first Person. 
  

 - 1 - 

 “Agreement” has the meaning set forth in the preamble hereof. 
 “Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time, or any successor law. 
 “Control” means, with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through ownership of securities or partnership, membership, limited liability company, or other ownership interests, by contract or otherwise and the terms “Controlling” and
“Controlled” have meanings correlative to the foregoing. 
 “Deepwater Drilling Business” has the
meaning set forth in the Ruling Request. 
 “DeepCo” has the meaning set forth in the recitals hereof. 

“Disclosing Party” has the meaning set forth in Section 6.3. 
 “Distribution Date” means the date on which the External Distribution occurs. 
 “Distribution Taxes” has the meaning set forth in Section 2.2(b). 
 “Due Date” has the meaning set forth in Section 4.4. 
 “Effective Time” means the time at which the External Distribution is effected on the Distribution Date. 
 “External Distribution” has the meaning set forth in the recitals hereof. 
 “Group” means the Pride Group or the Seahawk Group, as the context requires. 
 “Internal Distribution” has the meaning set forth in the recitals hereof. 
 “IRS” means the Internal Revenue Service. 
 “IRS Submissions” means the Ruling Request, each supplemental submission and any other correspondence or supplemental materials submitted to the IRS in connection with obtaining the
Ruling. 
 “Joint Return” means any Tax Return, for any Tax Year, that includes Tax Items of both the Pride
Business and the Seahawk Business, determined without regard to Tax Items carried forward to such Tax Year. 
 “Losses” means any and all damages, losses, deficiencies, liabilities, obligations, Taxes, penalties, judgments, settlements, claims, payments, fines, interest, costs and expenses (including, without limitation, the fees and
expenses of any and all actions and demands, assessments, judgments, settlements and compromises relating 

  

 - 2 - 

 
thereto and the costs and expenses of attorneys’, accountants’, consultants’ and other professionals’ fees and expenses incurred in the
investigation or defense thereof or the enforcement of rights hereunder), including direct and consequential damages. 
 “Management Business” has the meaning set forth in the Ruling Request. 
 “Master Separation
Agreement” means the Master Separation Agreement entered into as of the date set forth above, between Pride and Seahawk. 
 “Non-Preparer” means the party that is not responsible for the preparation and filing of the Joint Return or Separate Return, as applicable, pursuant to Sections 3.1(a) or 3.2. 
 “Payment Date” means (x) with respect to any U.S. federal income tax return, the due date for any required installment of
estimated taxes determined under Code Section 6655, the due date (determined without regard to extensions) for filing the return determined under Code Section 6072, and the date the return is filed, and (y) with respect to any other
Tax Return, the corresponding dates determined under the applicable Tax Law. 
 “Permitted Financial Institution”
means any domestic commercial bank having capital and surplus in excess of $5.0 billion and whose long-term debt is rated “A” or the equivalent thereof by Moody’s or S&P (or reasonably equivalent ratings of another internationally
recognized ratings agency). 
 “Person” means any individual, corporation, company, partnership, trust,
incorporated or unincorporated association, joint venture or other entity of any kind. 
 “Preparer” means the
party that is responsible for the preparation and filing of the Joint Return or Separate Return, as applicable, pursuant to Sections 3.1(a) or 3.2. 
 “Pride” has the meaning set forth in the preamble hereof. 
 “Pride
Business” means, with respect to any Tax Year (or portion thereof), the assets, activities and related liabilities of Pride and its Subsidiaries during such Tax Year (or portion thereof), but not including the assets, activities and
related liabilities constituting a part of the Seahawk Business for such Tax Year (or portion thereof). 
 “Pride
Common Stock” means the Pride common stock, par value $.01 per share, and any series or class of stock into which the Pride common stock is redesignated, reclassified, converted or exchanged following the Effective Time. 
 “Pride Group” means Pride and each Subsidiary of Pride (but only while such Subsidiary is a Subsidiary of Pride) other than
any Person that is a member of the Seahawk Group (but only during the period such Person is a member of the Seahawk Group). 
  

 - 3 - 

 “Receiving Party” has the meaning set forth in Section 6.3. 

“Requesting Party” has the meaning set forth in Section 5.2. 
 “Ruling” means PLR 112185-09, which was issued to Pride on May 4, 2009, as supplemented by PLR 129247-09, which was
issued to Pride on July 9, 2009. 
 “Ruling Request” means the requests for rulings, dated March 2,
2009, and June 12, 2009, filed by Pride with the IRS in connection with the Distribution and any other correspondence or supplemental materials submitted to the IRS in connection with obtaining the Ruling. 
 “Seahawk” has the meaning set forth in the preamble hereof. 
 “Seahawk Business” means: 
 (a)   with respect to any Tax Year (or portion thereof) that ended on or before December 31, 2008, (i) the assets, activities and related liabilities of Pride and its Subsidiaries, to the extent
such assets and activities were situated in the Gulf of Mexico during such Tax Year (or portion thereof) and (ii) any other assets, activities and related liabilities of Seahawk and the Seahawk Subsidiaries, regardless of where such assets and
activities were situated during such Tax Year (or portion thereof); but not including, in each case (i) and (ii) above, any assets, activities and related liabilities of Pride, Seahawk and their respective Subsidiaries, to the
extent such assets and activities were or related to the deepwater services management contracts with respect to the Thunderhorse, Mad Dog and Holstein rigs; 
 (b)   with respect to any Tax Year (or portion thereof) that begins after December 31, 2008, and ends on or before the
Distribution Date, (i) the assets, activities and related liabilities of Pride and its Subsidiaries, to the extent such assets and activities were situated in the Gulf of Mexico during such Tax Year (or portion thereof) and (ii) any other
assets, activities and related liabilities of Seahawk and the Seahawk Subsidiaries, regardless of where such assets and activities were situated during such Tax Year (or portion thereof); but not including, in each case (i) and
(ii) above, any assets (other than the stock of DeepCo), activities and related liabilities of Pride, Seahawk and their respective Subsidiaries, to the extent such assets and activities were or related to (iii) the deepwater services
management contracts with respect to the Thunderhorse, Mad Dog and Holstein rigs; (iv) drillships or semisubmersible rigs or (v) the Pride Tennessee and Pride Wisconsin rigs; 
 (c)   with respect to any Tax Year (or portion thereof) that begins after the Distribution Date, the assets, activities and
related liabilities of Seahawk and the Seahawk Subsidiaries during such Tax Year (or portion thereof). 
 “Seahawk
Group” means (x) with respect to any Tax Year (or portion thereof) ending at or before the Effective Time, Seahawk and each of its Subsidiaries at the Effective Time; and (y) with respect to any Tax Year (or portion thereof) that
begins after the Effective Time, Seahawk and each Subsidiary of Seahawk (but only while such Subsidiary is a Subsidiary of Seahawk). 
  

 - 4 - 

 “Seahawk Subsidiaries” means Gulf of Mexico Personnel Services S. De R.L. De
C.V.; Mexico Drilling Limited LLC; Mexico Offshore Management S. De R.L. De C.V.; Pride Central America, LLC; Pride Drilling, LLC; Pride Internacional de Mexico LLC; Pride Mexico Holdings, LLC; Redfish Holdings S. De R.L. De C.V.; Seahawk Drilling
LLC and each Person that becomes a Subsidiary of Seahawk after the Distribution Date. 
 “Separate Return” means
any Tax Return that is not a Joint Return. 
 “Separation” has the meaning set forth in the recitals hereof.

 “Subsidiary” when used with respect to any Person, means (i)(A) a corporation a majority in voting power of
whose share capital or capital stock with voting power, under ordinary circumstances, to elect directors is at the time, directly or indirectly, owned by such Person, by one or more Subsidiaries of such Person, or by such Person and one or more
Subsidiaries of such Person, whether or not such power is subject to a voting agreement or similar encumbrance, (B) a partnership or limited liability company in which such Person or a Subsidiary of such Person is, at the date of determination,
(1) in the case of a partnership, a general partner of such partnership with the power affirmatively to direct the policies and management of such partnership or (2) in the case of a limited liability company, the managing member or, in
the absence of a managing member, a member with the power affirmatively to direct the policies and management of such limited liability company, or (C) any other Person (other than a corporation) in which such Person, one or more Subsidiaries
of such Person or such Person and one or more Subsidiaries of such Person, directly or indirectly, at the date of determination thereof, has or have (1) the power to elect or direct the election of a majority of the members of the governing
body of such Person, whether or not such power is subject to a voting agreement or similar encumbrance, or (2) in the absence of such a governing body, at least a majority ownership interest or (ii) any other Person of which an aggregate
of 50% or more of the equity interests are, at the time, directly or indirectly, owned by such Person and/or one or more Subsidiaries of such Person. 
 “Supplemental IRS Submissions” means any request for a Supplemental Ruling, each supplemental submission and any other correspondence or supplemental materials submitted to the IRS in connection with
obtaining any Supplemental Ruling. 
 “Supplemental Ruling” means any private letter ruling obtained by Pride or
Seahawk from the IRS which supplements or otherwise modifies the Ruling. 
 “Supplemental Tax Opinion” means, with
respect to a specified action, an opinion (other than the Tax Opinion) from Tax Counsel to the effect that such action will not preclude (i) the Internal Distribution from qualifying as a tax-free transaction described under Sections
368(a)(1)(D) and 355 of the Code to Seahawk and Pride and (ii) the External Distribution from qualifying as a tax-free transaction described under 

  

 - 5 - 

 
Section 355 of the Code to Pride and the holders of Pride Common Stock (except, in the case of the holders of Pride Common Stock, with respect to cash
received in lieu of fractional shares). No opinion relied upon by Seahawk to satisfy the requirements of Section 8.3 shall be considered a “Supplemental Tax Opinion” unless such opinion is, in addition to the requirements above, an
unqualified “will” opinion reasonably satisfactory to Pride, which opinion may rely upon a Supplemental Ruling and may rely upon, and may assume the accuracy of, any representations given in any Supplemental Ruling Submission and any
customary representations contained in an officer’s certificate delivered by an officer of Pride or Seahawk to Tax Counsel. 
 “Tax” or “Taxes” means any income, gross income, gross receipts, profits, capital stock, franchise, withholding, payroll, social security, workers compensation, unemployment, disability, property, ad valorem, stamp,
excise, severance, occupation, service, sales, use, license, lease, transfer, import, export, value added, alternative minimum, estimated or other similar tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax)
imposed by any Tax Authority and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
 “Tax Authority” means, with respect to any Tax, the governmental entity or political subdivision, agency, commission or authority thereof that imposes such Tax, and the agency, commission or authority (if any) charged with the
assessment, determination or collection of such Tax for such entity or subdivision. 
 “Tax Benefit” means a Tax
Item that decreases the Tax liability of a taxpayer, including a credit, loss or other deduction, but not including deductions attributable to or arising from the Pride Business or the Seahawk Business, as applicable, to the extent that the
aggregate of such deductions in a Tax Year does not exceed the income attributable to or arising from such business in such Tax Year. 
 “Tax Contest” means an audit, review, examination, or any other administrative or judicial proceeding with the purpose or effect of redetermining Taxes of any member of either Group (including any
administrative or judicial review of any claim for refund). 
 “Tax Counsel” means (i) with respect to the
Tax Opinion delivered to Pride, Baker Botts L.L.P. or (ii) with respect to a Supplemental Tax Opinion delivered to Pride or to Seahawk, a nationally recognized law firm or accounting firm reasonably acceptable to Pride to provide such
Supplemental Tax Opinion. 
 “Tax Item” means, with respect to any Tax, any item of income, gain, loss, deduction,
credit or other attribute that may have the effect of increasing or decreasing any Tax. 
 “Tax Law” means the law
of any governmental entity or political subdivision thereof, and any controlling judicial or administrative interpretations of such law, relating to any Tax. 
  

 - 6 - 

 “Tax Materials” means (i) the Ruling and each Supplemental Ruling issued
by the IRS in connection with the Internal Distribution and the External Distribution, (ii) each IRS Submission and Supplemental IRS Submission, (iii) the representation letters delivered to Tax Counsel in connection with the delivery of
the Tax Opinion, and (iv) any other materials delivered or deliverable by Pride, Seahawk and others in connection with the rendering by Tax Counsel of the Tax Opinions or the issuance by the IRS of any Ruling or Supplemental Ruling. 

“Tax Opinion” means the opinion to be delivered by Tax Counsel to Pride in connection with the Internal Distribution and
the External Distribution to the effect that (i) the Internal Distribution will qualify as a tax-free transaction described under Sections 368(a)(1)(D) and 355 of the Code to Seahawk and Pride and (ii) the External Distribution will
qualify as a tax-free transaction described under Section 355 of the Code to Pride and the holders of Pride Common Stock (except, in the case of the holders of Pride Common Stock, with respect to cash received in lieu of fractional shares).

 “Tax Records” means Tax Return, Tax Return work papers, documentation relating to any Tax Contests, and any
other books of account or records required to be maintained under applicable Tax Laws (including but not limited to Section 6001 of the Code) or under any record retention agreement with any Tax Authority. 
 “Tax Return” means any report of Taxes due (including estimated Taxes), any claims for refund of Taxes paid, any information
return with respect to Taxes, or any other similar report, statement, declaration, or document required to be filed (by paper, electronically or otherwise) under any applicable Tax Law, including any attachments, exhibits, or other materials
submitted with any of the foregoing, and including any amendments or supplements to any of the foregoing. 
 “Tax
Year” means with respect to any Tax, the year, or shorter period, if applicable, for which the Tax is reported as provided under applicable Tax Law. 
 “Treasury Regulations” means the regulations promulgated from time to time under the Code as in effect for the relevant Tax Year. 
 SECTION 2.   Allocation of Tax Liabilities and Tax Benefits. 
 2.1   Liability for and the Payment of Taxes.   Except as provided in Section 3.1(b) (Provision of Information and Assistance), Section 3.2(c) (Provision of Information), and
Section 7 (Tax Contests), and in accordance with Section 4: 
 (a)   Seahawk Liabilities and
Payments.   For any Tax Year (or portion thereof), Seahawk shall, subject to the rules for Tax Benefits in Section 2.1(c): 
 (i)   be liable for and pay the Taxes (determined without regard to Tax Benefits) allocated to it pursuant to Section 2.2, reduced by any Tax Benefits allocated to Pride or Seahawk that are allowable
under applicable Tax Law, either to the applicable Tax Authority or to Pride as required by Section 4, and 
  

 - 7 - 

 (ii)   pay Pride for: 
 (A)   any Tax Benefits arising in a Tax Year that begins on or before the Distribution Date allocated to Pride pursuant to
Section 2.2 that Seahawk uses to reduce Taxes payable by it pursuant to clause (i) of this Section 2.1(a) in any Tax Year that begins after the Distribution Date, 
 (B)   any Tax Benefits arising in a Tax Year that begins after the Distribution Date allocated to Pride pursuant to
Section 2.2 that Seahawk uses to reduce Taxes payable by it pursuant to clause (i) of this Section 2.1(a) in any Tax Year that begins on or before the Distribution Date, and 
 (C)   any Tax Benefits arising in a Tax Year that begins on or before the Distribution Date allocated to Pride pursuant to
Section 2.2 arising or used as a result of a Tax Contest or other dispute which is resolved after the Distribution Date that Seahawk uses to reduce Taxes payable by it pursuant to clause (i) of this Section 2.1(a) in any Tax Year that
begins on or before the Distribution Date. 
 (b)   Pride Liabilities and Payments.   For any Tax
Year (or portion thereof), Pride shall, subject to the rules for Tax Benefits in Section 2.1(c): 
 (i)   be
liable for and pay the Taxes (determined without regard to Tax Benefits) allocated to it pursuant to Section 2.2, reduced by any Tax Benefits allocated to Pride or Seahawk that are allowable under applicable Tax Law, either to the applicable
Tax Authority or to Seahawk as required by Section 4, and 
 (ii)   pay Seahawk for: 
 (A)   any Tax Benefits arising in a Tax Year that begins on or before the Distribution Date allocated to Seahawk pursuant to
Section 2.2 that Pride uses to reduce Taxes payable by it pursuant to clause (i) of this Section 2.1(b) in any Tax Year that begins after the Distribution Date, 
 (B)   any Tax Benefits arising in a Tax Year that begins after the Distribution Date allocated to Seahawk pursuant to Section 2.2 that Pride uses to reduce Taxes payable by it
pursuant to clause (i) of this Section 2.1(b) in any Tax Year that begins on or before the Distribution Date, and 
 (C)   any Tax Benefits arising in a Tax Year that begins on or before the Distribution Date allocated to Seahawk pursuant to Section 2.2 arising or used as a result of a Tax Contest or other dispute which is resolved after
the Distribution Date that Pride uses to reduce Taxes payable by it pursuant to clause (i) of this Section 2.1(b) in any Tax Year that begins on or before the Distribution Date. 
  

 - 8 - 

 (c)   Rules for Tax Benefits.   For purpose of this
Section 2: 
 (i)   For any Tax Year that begins on or before the Distribution Date, (y) Seahawk shall,
pursuant to Section 2.1(a)(i), reduce Taxes allocated to it by Tax Benefits allocated to Pride only to the extent such Tax Benefits are not taken into account by Pride pursuant to Section 2.1(b)(i) in the same Tax Year, and (z) Pride
shall reduce, pursuant to Section 2.1(b)(i), Taxes allocated to it by Tax Benefits allocated to Seahawk only to the extent such Tax Benefits are not taken into account by Seahawk pursuant to Section 2.1(a)(i) in the same Tax Year.

 (ii)   For any Tax Year that begins on or before the Distribution Date, (y) Seahawk shall not take into
account any Tax Benefit under Section 2.1(a)(i) unless the utilization of such Tax Benefit would be allowable under applicable Tax Law after taking into account only those Tax Items allocated to Seahawk during such Tax Year (or portion
thereof), and (z) Pride shall not take into account any Tax Benefit under Section 2.1(b)(i) unless the utilization of such Tax Benefit would be allowable under applicable Tax Law after taking into account only those Tax Items allocated to
Pride during such Tax Year (or portion thereof). 
 (iii)   For any Tax Year that begins after the Distribution
Date in which either party has available for use both Tax Benefits allocated to it and Tax Benefits allocated to the other party, if the applicable Tax Law does not provide for the priority and order in which such Tax Benefits shall be used, the Tax
Benefits allocable to it and to the other party shall be deemed used pro rata in proportion to the total of such Tax Benefits available for use by it. 
 (iv)   Payment for Tax Benefits described in either Section 2.1(a)(ii)(B) or Section 2.1(a)(ii)(C) shall be made only when and to the extent that the use of such Tax Benefit does not increase the
Taxes of Seahawk or reduce the Tax Benefits otherwise usable by Seahawk during the applicable Tax Year, and payment for Tax Benefits described in either Section 2.1(b)(ii)(B) or Section 2.1(b)(ii)(C) shall be made only when and to the
extent that the use of such Tax Benefit does not increase the Taxes of Pride or reduce the Tax Benefits otherwise usable by Pride during the applicable Tax Year. 
  

 - 9 - 

 2.2   Allocation Rules.   For purposes of Section 2.1:

 (a)   General Rule.   Except as otherwise provided in this Section 2.2, Taxes (determined
without regard to Tax Benefits) for any Tax Year (or portion thereof) shall be allocated between Seahawk and Pride in proportion to the net taxable income or other applicable items attributable to or arising from the respective Seahawk Business and
Pride Business (as so defined for such Tax Year or portion thereof) that contribute to such Taxes, and Tax Benefits for any Tax Year (or portion thereof) shall be allocated between Seahawk and Pride in proportion to the losses, credits, or other
applicable items attributable to or arising from the respective Seahawk Business and Pride Business (as so defined for such Tax Year or portion thereof) that contribute to such Tax Benefits. 
 (b)   Taxes Resulting from the Internal Distribution or the External Distribution.   Taxes and Tax Items
resulting from the Internal Distribution and Taxes and Tax Items resulting from the External Distribution (collectively, “Distribution Taxes”) will be allocated as follows: 
 (i)   Distribution Taxes Allocable to Pride.   Distribution Taxes shall be allocated to Pride to the extent
that such Distribution Taxes result primarily from one or more of the following: 
 (A)   from the Pride Group
ceasing to be engaged in the Management Business or the Deepwater Drilling Business; or 
 (B)   from an action or
failure to act by the Pride Group that causes Section 355(e) of the Code to apply to either the Internal Distribution or the External Distribution, or that causes Section 355(f) of the Code to apply to the Internal Distribution.

 (ii)   Distribution Taxes Allocable to Seahawk.   Distribution Taxes shall be allocated to
Seahawk to the extent that such Distribution Taxes result primarily from Seahawk’s taking any of the actions prohibited in Section 8.3. 
 (iii)   Joint Responsibility for Distribution Taxes.   Any Distribution Taxes not allocated under Section 2.2(b)(i) or Section 2.2(b)(ii) shall be allocated fifty percent
(50%) to Pride and fifty percent (50%) to Seahawk. 
 SECTION 3.   Preparation and Filing of Tax
Returns. 
 3.1   Joint Returns. 
 (a)   Preparation of Joint Returns.   Pride shall be responsible for preparing and filing (or causing to be
prepared and filed) and shall be considered the Preparer of all Joint Returns, except that Seahawk shall be responsible for preparing and filing (or causing to be prepared and filed) and shall be considered the Preparer of all Joint Returns filed or
required to be filed with the Mexican Tax Authority by any Seahawk Subsidiary. 
  

 - 10 - 

 (b)   Provision of Information and Assistance. 
 (i)   Information with Respect to Joint Returns.   The Non-Preparer shall provide the Preparer with all
information in its possession necessary for the Preparer to properly and timely file all Joint Returns for which such Preparer is responsible pursuant to Section 3.1(a). The Non-Preparer shall provide such information no later than thirty days
prior to the extended due date of such Joint Return. If the Non-Preparer is in possession of information and the Non-Preparer fails to provide such information within the time period provided in this Section 3.1(b)(i) and in the form reasonably
requested by the Preparer to permit the timely filing of any Joint Return for which the Preparer is responsible pursuant to Section 3.1(a), then notwithstanding any other provision of this Agreement, the Non-Preparer shall be liable for, and
shall indemnify and hold harmless each member of the Preparer’s Group from and against, any penalties, interest, or other payment obligation assessed against any member of either Group by reason of any resulting delay in filing such return. If
the Non-Preparer provides information within the time period provided in this Section 3.1(b)(i) in the form reasonably requested by the Preparer to permit the timely filing of a Joint Return for which such Preparer is responsible pursuant to
Section 3.1(a), then notwithstanding any other provision of this Agreement, the Preparer shall be liable for, and shall indemnify and hold harmless each member of the Non-Preparer’s Group from and against, any penalties, interest, or other
payments assessed against any member of either Group by reason of any delay in filing such return. 
 (ii)  
Information with Respect to Estimated Payments and Extension Payments.   The Non-Preparer shall provide the Preparer with all information relating to members of the Non-Preparer’s Group that the Preparer needs to determine the
amount of Taxes due on any Payment Date with respect to a Joint Return for which such Preparer is responsible pursuant to Section 3.1(a). The Non-Preparer shall provide such information no later than thirty days before such Payment Date. In the
event that the Non-Preparer fails to provide information within the time period provided in this Section 3.1(b)(ii) in the form reasonably requested by the Preparer to permit the timely payment of such Taxes, the indemnification principles of
Section 3.1(b)(i) shall apply with respect to any penalties, interest, or other payments assessed against any member of either Group by reason of any resulting delay in paying such Taxes. 
 (iii)   Assistance.   At the request of the Preparer, the Non-Preparer shall take (at its own cost and
expense), and shall cause the members of the Non-Preparer’s Group to take (at their own cost and expense), any reasonable action (e.g., filing a ruling request with the relevant Tax Authority or executing a power of attorney) that is
reasonably necessary in order for the Preparer or any other member of the Preparer’s Group to prepare, file, amend or take any other action with respect to a Joint Return for which the Preparer is responsible pursuant to Section 3.1(a). In
the event that the Non-Preparer fails to take, or cause to be taken, any such requested action, the indemnification principles of Section 3.1(b)(i) shall apply with respect to any penalties, interest, or other payments assessed against any
member of either Group by reason of a failure to take any such requested action. 
  

 - 11 - 

 3.2   Separate Returns. 
 (a)   Tax Returns to be Prepared by Pride.   Pride shall be responsible for preparing and filing (or causing
to be prepared and filed) all Separate Returns that include Tax Items of the Pride Group, determined without regard to Tax Items carried forward to such Tax Year. 
 (b)   Tax Returns to be Prepared by Seahawk.   Seahawk shall be responsible for preparing and filing (or causing to be prepared and filed) all Separate Returns that
include Tax Items of the Seahawk Group, determined without regard to Tax Items carried forward to such Tax Year. 
 (c)   Provision of Information.   Pride shall provide to Seahawk, and Seahawk shall provide to Pride, any information about members of the Pride Group or the Seahawk Group, respectively, which the party receiving
such information reasonably needs to properly and timely file all Separate Returns pursuant to Sections 3.2(a) or (b). Such information shall be provided within the time prescribed by Section 3.1(b) for the provision of information for
Joint Returns. In the event that Pride or Seahawk fails to provide information within the time period provided in Section 3.1(b) and in the form reasonably requested by the other party to permit the timely filing of a Separate Return, the
indemnification principles of Section 3.1(b)(i) shall apply with respect to any penalties, interest, or other payments assessed against any member of the Pride Group or the Seahawk Group by reason of any resulting delay in filing such return.

 3.3   Special Rules Relating to the Preparation of Tax Returns. 
 (a)   General Rule.   Except as otherwise provided in this Agreement, the party responsible for filing (or
causing to be filed) a Tax Return pursuant to Sections 3.1 or 3.2 shall have the exclusive right, in its sole discretion, with respect to such Tax Return to determine (i) the manner in which such Tax Return shall be prepared and filed,
including the elections, methods of accounting, positions, conventions and principles of taxation to be used and the manner in which any Tax Item shall be reported, (ii) whether any extensions may be requested, (iii) whether an amended Tax
Return shall be filed, (iv) whether any claims for refund shall be made, (v) whether any refunds shall be paid by way of refund or credited against any liability for the related Tax and (vi) whether to retain outside firms to prepare
or review such Tax Return. Notwithstanding the preceding sentence, if the Seahawk Group pays any Tax to a Tax Authority other than the IRS that may be claimed as a foreign Tax credit for U.S. federal income tax purposes in a Tax Return for which
Pride is the party responsible for filing (or causing to be filed), Pride shall amend such Tax Returns and file such claims for credit or refund that Seahawk may reasonably request. 
  

 - 12 - 

 (b)   Seahawk Tax Returns.   With respect to any Separate
Return for which Seahawk is responsible pursuant to Section 3.2(b): 
 (i)   Seahawk may not take (and shall
cause the members of the Seahawk Group not to take) any positions that it knows, or reasonably should know, would adversely affect any member of the Pride Group; and 
 (ii)   Seahawk and other members of the Seahawk Group must (x) allocate Tax Items between such Separate Return for which Seahawk is responsible pursuant to Section 3.2(b) and
any related Joint Return for which Pride is responsible pursuant to Section 3.1(a) that are filed with respect to the same Tax Year in a manner that is consistent with the reporting of such Tax Items on the related Joint Return for which Pride
is responsible pursuant to Section 3.1(a) and (y) make any applicable elections required under applicable Tax Law (including, without limitation, under Treasury Regulations Section 1.1502-76(b)(2)) necessary to effect such allocation.

 (c)   Election to File Consolidated, Combined or Unitary Tax Returns.   Pride shall have the
sole discretion of filing any Tax Return on a consolidated, combined or unitary basis, if such Tax Return would include at least one member of each Group and the filing of such Tax Return is elective under the relevant Tax Law. 
 (d)   Carrybacks of Tax Benefits.   Seahawk shall not carry back and utilize as a Tax Benefit in a Tax Year
that begins on or before the Distribution Date any Tax Item arising in a Tax Year that begins after the Distribution Date, provided, that, if the carryback of such Tax Item is required by applicable Tax Law (for example, pursuant to
Section 904(c) of the Code), and if Pride would be the Preparer of any Tax Return (or Tax Returns) amended to include the carried-back Tax Item, Pride shall amend such Tax Return (or Tax Returns) and file such claims for credit or refund that
Seahawk may reasonably request. With respect to any foreign Taxes claimed on any such amended Tax Return, Pride shall only elect the benefits of the foreign Tax credit under Section 901 of the Code and shall not elect to deduct such foreign
Taxes. 
 (e)   Withholding and Reporting.   With respect to stock of Pride delivered to any
Person, Pride and Seahawk shall cooperate (and shall cause their Affiliates to cooperate) so as to permit Pride to discharge any applicable Tax withholding and Tax reporting obligations, including the appointment of Seahawk or one or more of its
Affiliates as the withholding and reporting agent if Pride or one or more of its Affiliates is not otherwise required or permitted to withhold and report under applicable Tax Law. 
  

 - 13 - 

 (f)   Standard of Performance.   Pride and Seahawk shall
prepare the Joint Returns for which each is responsible pursuant to this Section 3 with the same general degree of care as it uses in preparing Separate Returns. Notwithstanding the preceding sentence, Pride shall not be liable for any
additional Taxes that result from a redetermination in a Tax Contest and for which Seahawk is otherwise liable under Section 2, regardless of whether such Taxes arise as a result of Pride’s failure to exercise such degree of care.

 3.4   Reliance on Exchanged Information.   If a member of the Seahawk Group supplies
information to a member of the Pride Group, or a member of the Pride Group supplies information to a member of the Seahawk Group, and an officer of the requesting member intends to sign a statement or other document under penalties of perjury in
reliance upon the accuracy of such information, then a duly authorized officer of the member supplying such information shall certify, to the best of such officer’s knowledge, the accuracy and completeness of the information so supplied.

 3.5   Allocation of Tax Items.   Pride shall determine in accordance with applicable Tax Laws
the allocation of any applicable Tax Items (e.g., net operating loss, net capital loss, investment Tax credit, foreign Tax credit, research and experimentation credit, charitable deduction, or credit related to alternative minimum Tax) as of
the Effective Time among Pride, each other Pride Group member, Seahawk, and each other Seahawk Group member. Pride and Seahawk hereby agree that in the absence of controlling legal authority each such Tax Item shall be allocated as provided in
Section 2.2. Attached hereto as Exhibit A is an estimate of the Tax Items allocable to the Pride Group and the Seahawk Group, respectively. Pride shall provide reasonably timely updates of the allocation of Tax Items, as it finalizes its Tax
Returns and as adjustments, if any, are subsequently made to such Tax Returns. 
  

 - 14 - 

 SECTION 4.   Tax Payments. 
 4.1   Payment of Taxes to Tax Authority.   Pride shall be responsible for remitting to the proper Tax
Authority all Tax shown (including Taxes for which Seahawk is wholly or partially liable pursuant to Section 2) on any Tax Return for which it is responsible for the preparation and filing pursuant to Section 3.1(a) or Section 3.2(a),
and Seahawk shall be responsible for remitting to the proper Tax Authority the Tax shown (including Taxes for which Pride is wholly or partially liable pursuant to Section 2) on any Tax Return for which it is responsible for the preparation and
filing pursuant to Section 3.2(b). 
 4.2   Indemnification Payments. 
 (a)   Tax Payments Made by the Pride Group.   If any member of the Pride Group remits a payment to a Tax
Authority for Taxes for which Seahawk is wholly or partially liable under this Agreement, Seahawk shall remit the amount for which it is liable to Pride within thirty days after receiving notification requesting such amount. 
 (b)   Tax Payments Made by the Seahawk Group.   If any member of the Seahawk Group remits a payment to a Tax
Authority for Taxes for which Pride is wholly or partially liable under this Agreement, Pride shall remit the amount for which it is liable to Seahawk within thirty days after receiving notification requesting such amount. 
 (c)   Credit for Prior Deemed Tax Payments.   For purposes of Section 4.2(a), the portion of Taxes paid
by Pride to a Tax Authority for which Seahawk is liable will be determined by assuming that Seahawk has previously paid in the aggregate (i) $10 million with respect to all Taxes for each Tax Year that includes the Distribution Date,
(ii) $45 million with respect to all Taxes for each Tax Year that immediately precedes the Tax Year that includes the Distribution Date and (iii) the full amount of its allocable share of all Taxes shown on any other Tax Return filed
before the Distribution Date with respect to any other Tax Year ending before the Distribution Date. 
 (d)  
Payments for Tax Benefits. 
 (i)   If a member of the Pride Group uses a Tax Benefit for which Seahawk is
entitled to reimbursement pursuant to clause (ii) of Section 2.1(b), Pride shall pay to Seahawk, within fifteen business days following the use of such Tax Benefit, an amount equal to such Tax Benefit. 
 (ii)   If a member of the Seahawk Group uses a Tax Benefit for which Pride is entitled to reimbursement pursuant to clause
(ii) of Section 2.1(a), Seahawk shall pay to Pride, within fifteen business days following the use of such Tax Benefit, an amount equal to such Tax Benefit. 
  

 - 15 - 

 (iii)   For purposes of this Agreement, a Tax Benefit (other than a Tax
Refund) will be considered used (i) in the case of a Tax Benefit that generates a Tax Refund, at the time such Tax Refund is received and (ii) in all other cases, at the time the Tax Return is filed with respect to such Tax Benefit or, if
no Tax Return is filed, at the time the Tax would have been due in the absence of such Tax Benefit. The amount of such Tax Benefit will be the amount by which Taxes are actually reduced by such Tax Benefit (determined in accordance with the
provisions of Section 2.1(c)). 
 4.3   Initial Determinations and Subsequent Adjustments.  
The initial determination of the amount of any payment that one party is required to make to another under this Agreement shall be made on the basis of the Tax Return as filed, or, if the Tax to which the payment relates is not reported in a Tax
Return, on the basis of the amount of Tax initially paid to the Tax Authority. The amounts paid under this Agreement will be redetermined, and additional payments relating to such redetermination will be made, as appropriate, if as a result of an
audit by a Tax Authority, an amended Tax Return, or for any other reason (w) additional Taxes to which such redetermination relates are subsequently paid, (x) a refund of such Taxes is received, (y) the party using a Tax Benefit
changes, or (z) the amount or character of any Tax Item is adjusted or redetermined. Each payment required by the immediately preceding sentence (i) as a result of a payment of additional Taxes will be due thirty days after the date on
which the additional Taxes were paid or, if later, fifteen days after the date of a request from the other party for the payment, (ii) as a result of the receipt of a refund will be due thirty days after the refund was received, (iii) as a
result of a change in use of a Tax Benefit will be due thirty days after the date on which the final action resulting in such change is taken by a Tax Authority or either party or any of their Subsidiaries, or (iv) as a result of an adjustment
or redetermination of the amount or character of a Tax Item will be due thirty days after the date on which the final action resulting in such adjustment or redetermination is taken by a Tax Authority or either party or any of their Subsidiaries. If
a payment is made as a result of an audit by a Tax Authority which does not conclude the matter, further adjusting payments will be made, as appropriate, to reflect the outcome of subsequent administrative or judicial proceedings. 
 4.4   Interest on Late Payments.   Payments pursuant to this Agreement that are not made by the date
prescribed in this Agreement or, if no such date is prescribed, within fifteen days after demand for payment is made (the “Due Date”) shall bear interest for the period from and including the date immediately following the Due Date through
and including the date of payment at a per annum rate fixed at six percent (6%) above the six month dollar LIBOR rate as displayed on page “LR” of Bloomberg (or such other appropriate page as may replace such page), as of 11:00 a.m.
London time on the Due Date (or, if the Due Date is not a business day, as of 11:00 a.m. London time on the first business day following the Due Date). Such rate shall be redetermined at the beginning of each calendar quarter following such Due
Date. Such interest will be payable at the same time as the payment to which it relates and shall be calculated on the basis of a year of 365 days and the actual number of days for which due. 
 4.5   Payments by or to Other Group Members.   When appropriate under the circumstances to reflect the
underlying liability for a Tax or entitlement to a Tax refund or Tax Benefit, a payment which is required to be made by or to Pride or Seahawk may be made by or to another member of the Pride Group or the Seahawk Group, as appropriate, but nothing
in this Section 4.5 shall relieve Pride or Seahawk of its obligations under this Agreement. 
  

 - 16 - 

 4.6   Procedural Matters.   Any written notice delivered to
the indemnifying party in accordance with Section 9.5 shall show the amount due and owing together with a schedule calculating in reasonable detail such amount (and shall include any relevant Tax Return, statement, bill or invoice related to
such Taxes, costs, expenses or other amounts due and owing). All payments required to be made by one party to the other party pursuant to this Section 4 shall be made by electronic, same day wire transfer. Payments shall be deemed made when
received. If the indemnifying party fails to make a payment to the indemnified party within the time period set forth in this Section 4, the indemnifying party shall pay to the indemnified party, in addition to interest that accrues pursuant to
Section 4.4, any costs or expenses, including any breakage costs, incurred by the indemnified party to secure such payment or to satisfy the indemnifying party’s portion of the obligation giving rise to the indemnification payment.

 4.7   Tax Consequences of Payments.   For all Tax purposes and to the extent permitted by
applicable Tax Law, the parties hereto shall treat any payment made pursuant to this Agreement as a capital contribution or a distribution, as the case may be, immediately prior to the External Distribution. If any payment (or portion thereof)
arising as a result of an allocation of Taxes or Tax Items pursuant to Section 2.2(b) causes, directly or indirectly, an increase in the Taxes owed by the recipient (or any of the members of its Group) under one or more applicable Tax Laws, the
payor’s payment obligation (or portion thereof) under this Agreement shall be increased such that the amount of the payment, reduced by any Taxes owed by the recipient (or any of the members of its Group) as a result of such payment, equals the
amount of a payment that would have been received had no additional Taxes been imposed on the recipient (or any of the members of its Group) as a result of such payment. Other than the payments described in the preceding sentence of this
Section 4.7, under no circumstances shall any payment (or portion thereof) made pursuant to this Agreement be grossed up to take into account any additional Taxes that may be owed by the recipient (or any of the members of its Group) as a
result of such payment. In the event that a Tax Authority asserts that Pride’s or Seahawk’s treatment of a payment pursuant to this Agreement should be other than as required pursuant to this Section 4.7, Pride or Seahawk, as
appropriate, shall use its reasonable best efforts to contest such assertion. 
 SECTION 5.   Assistance
and Cooperation. 
 5.1   Cooperation.   In addition to the obligations enumerated in
Sections 3.1(b) and 3.2(c), Pride and Seahawk will cooperate (and cause their respective Subsidiaries to cooperate) with each other and with each other’s agents, including accounting firms and legal counsel, in connection with Tax matters,
including provision of relevant documents and information in their possession and making available to each other, as reasonably requested and available, personnel (including officers, directors, employees and agents of the parties or their
Affiliates) responsible for preparing, 

  

 - 17 - 

 
maintaining, and interpreting information and documents relevant to Taxes, and personnel reasonably required as witnesses or for purposes of providing
information or documents in connection with any administrative or judicial proceedings relating to Taxes. 
 5.2  
Supplemental Rulings and Supplemental Tax Opinions.   Each of the parties agrees that at the reasonable request of the other party (the “Requesting Party”), such party shall (and shall cause each member of its Group to)
cooperate and use reasonable efforts to seek to obtain, as expeditiously as reasonably practicable, a Supplemental Ruling from the IRS. Each of the parties further agrees that at the reasonable request of the Requesting Party, such other party shall
(and shall cause each member of its Group to) cooperate and use reasonable efforts to assist the Requesting Party in obtaining, as expeditiously as reasonably practicable, a Supplemental Tax Opinion from Tax Counsel. Within thirty days after
receiving an invoice from the other party therefor, the Requesting Party shall reimburse such party for all reasonable costs and expenses incurred by such party and the members of its Group in connection with obtaining or requesting a Supplemental
Ruling or in connection with assisting the Requesting Party in obtaining a Supplemental Tax Opinion. Notwithstanding the foregoing, Pride shall not be required to file any Supplemental IRS Submission unless Seahawk represents to Pride that
(x) it has reviewed the Supplemental IRS Submission and (y) all information and representations, if any, relating to any member of the Seahawk Group contained in the Supplemental IRS Submissions are true, correct and complete in all
material respects. 
 SECTION 6.   Tax Records. 
 6.1   Retention of Tax Records.   Each of Pride and Seahawk shall preserve, and shall cause their respective
Subsidiaries to preserve, all Tax Records that are in their possession, and that could affect the liability of any member of the other Group for Taxes, for as long as the contents thereof may become material in the administration of any matter under
applicable Tax Law, but in any event until the later of (x) the expiration of any applicable statutes of limitation, as extended, and (y) seven years after the Distribution Date. 
 6.2   Access to Tax Records.   Seahawk shall make available, and cause its Subsidiaries to make available, to
members of the Pride Group for inspection and copying (x) all Tax Records in their possession that relate to Tax Years that begin on or before the Distribution Date, and (y) the portion of any Tax Record in their possession that relates to
Tax Years that begin after the Distribution Date and which is reasonably necessary for the preparation of a Joint Return or Separate Return by a member of the Pride Group or with respect to an audit or litigation by a Tax Authority of such return.
Pride shall make available, and cause its Subsidiaries to make available, to members of the Seahawk Group for inspection and copying that portion of any Tax Record in their possession that relates to Tax Years that begin on or before the
Distribution Date and which is reasonably necessary for the preparation of a Joint Return or Separate Return by a member of the Seahawk Group or with respect to an audit or litigation by a Tax Authority of such return. 
  

 - 18 - 

 6.3   Confidentiality.   Each party hereby agrees that it
will hold, and shall use its reasonable best efforts to cause its officers, directors, employees, accountants, counsel, consultants, advisors and agents to hold, in confidence all records and information prepared and shared by and among the parties
in carrying out the intent of this Agreement, except as may otherwise be necessary in connection with the filing of Tax Returns or any administrative or judicial proceedings relating to Taxes or unless disclosure is compelled by a governmental
authority. Information and documents of one party (the “Disclosing Party”) shall not be deemed to be confidential for purposes of this Section 6.3 to the extent such information or document (i) is previously known to or in the
possession of the other party (the “Receiving Party”) and is not otherwise subject to a requirement to be kept confidential, (ii) becomes publicly available by means other than unauthorized disclosure under this Agreement by the
Receiving Party or (iii) is received from a third party without, to the knowledge of the Receiving Party after reasonable diligence, a duty of confidentiality owed to the Disclosing Party. 
 SECTION 7.   Tax Contests. 
 7.1   Notices.   Each party shall provide prompt notice to the other party of any pending or threatened Tax audit, assessment or proceeding or other Tax Contest of
which it becomes aware relating to (i) Taxes for which it is or may be indemnified by the other party hereunder, (ii) the qualification of the Internal Distribution as a tax-free transaction described under Section 368(a)(1)(D) and/or
355 of the Code or (iii) the qualification of the External Distribution as a tax-free transaction described under Section 355 of the Code. Such notice shall contain factual information (to the extent known) describing any asserted Tax
liability in reasonable detail and shall be accompanied by copies of any notice and other documents received from any Tax Authority in respect of any such matters. If (1) an indemnified party has knowledge of an asserted Tax liability with
respect to a matter for which it is to be indemnified hereunder, (2) such party fails to give the indemnifying party prompt notice of such asserted Tax liability and (3) the indemnifying party has the right, pursuant to
Section 7.2(a), to control the Tax Contest relating to such Tax liability, then (x) if the indemnifying party is precluded from contesting the asserted Tax liability as a result of the failure to give prompt notice, the indemnifying party
shall have no obligation to indemnify the indemnified party for any Taxes arising out of such asserted Tax liability and (y) if the indemnifying party is not precluded from contesting the asserted Tax liability, but such failure to give prompt
notice results in a monetary detriment to the indemnifying party, then any amount which the indemnifying party is otherwise required to pay the indemnified party pursuant to this Agreement shall be reduced by the amount of such detriment.

  

 - 19 - 

 7.2   Control of Tax Contests. 
 (a)   General Rule.   Except as provided in Sections 7.2(b), each party (or the appropriate member of their
Group) shall have full responsibility, control and discretion in handling, settling or contesting any Tax Contest involving a Tax reported on a Tax Return for which it is responsible for preparing and filing (or causing to be prepared and filed)
pursuant to Section 3 of this Agreement. 
 (b)   Non-Preparer Participation Rights.   With
respect to a Tax Contest of any Tax Return which involves a Tax liability for which the Non-Preparer may be liable, or a Tax Benefit for which the Non-Preparer may be entitled, under this Agreement, (i) the Non-Preparer shall, at its own cost
and expense, be entitled to participate in such Tax Contest, (ii) the Preparer shall keep the Non-Preparer reasonably informed and consult seriously and in good faith with the Non-Preparer and its Tax advisors with respect to any issue relating
to such Tax Contest; (iii) the Preparer shall provide the Non-Preparer with copies of all correspondence, notices, and other written materials received from any Tax Authority and shall otherwise keep the Non-Preparer and its Tax advisors
advised of significant developments in the Tax Contest and of significant communications involving representatives of the Tax Authority; (iv) the Non-Preparer may request that the Preparer take a position in respect of such Tax Contest, and the
Preparer shall do so provided that (A) there exists substantial authority for such position (within the meaning of the accuracy-related penalty provisions of Section 6662 of the Code) and (B) the adoption of such position could not
reasonably be expected to increase the Taxes or reduce the Tax Benefits allocated to the Preparer pursuant to Section 2 of this Agreement (unless the Non-Preparer agrees to indemnify and hold harmless the Preparer from such increase in Taxes or
reduction in Tax Benefits); (v) the Preparer shall provide the Non-Preparer with a copy of any written submission to be sent to a Taxing Authority prior to the submission thereof and shall give serious and good faith consideration to any
comments or suggested revisions that the Non-Preparer or its Tax advisors may have with respect thereto; and (vi) there will be no settlement, resolution, or closing or other agreement with respect thereto without the consent of the
Non-Preparer, which consent shall not be unreasonably withheld. 
 7.3   Cooperation.   The
Non-Preparer shall provide a party controlling any Tax Contest pursuant to Section 7.2(a) with all information relating to the Non-Preparer’s Group which the party controlling the Tax Contest needs to handle, settle or contest the Tax
Contest. At the request of a party controlling any Tax Contest pursuant to Section 7.2(a), the other party shall take any action (e.g., executing a power of attorney) that is reasonably necessary in order for the party controlling the
Tax Contest to handle, settle or contest the Tax Contest. Seahawk shall assist Pride, and Pride shall assist Seahawk, in taking any remedial actions that are necessary or desirable to minimize the effects of any adjustment made by a Tax Authority.
The indemnifying party shall reimburse the indemnified party for any reasonable out-of-pocket costs and expenses incurred in complying with this Section 7.3. The party controlling the Tax Contest shall have no obligation to indemnify the
indemnified party for any additional Taxes resulting from the Tax Contest, if the indemnified party fails to cooperate in accordance with this Section 7.3. 
  

 - 20 - 

 SECTION 8.   Restriction on Certain Actions of Pride and Seahawk. 

 8.1   General Restrictions.   Following the Effective Time, Seahawk shall not, and shall cause
the members of the Seahawk Group not to, take any action that, or fail to take any action the failure of which, (i) would be inconsistent with the Internal Distribution qualifying, or preclude the Internal Distribution from qualifying, as a
tax-free transaction described under Sections 368(a)(1)(D) and/or 355 of the Code, (ii) would be inconsistent with the External Distribution qualifying, or preclude the External Distribution from qualifying, as a tax-free transaction described
under Section 355 of the Code (except with respect to cash received in lieu of fractional shares), or (iii) would cause Pride, any Person that is a Subsidiary of Pride immediately prior to the Distribution, or the holders of Pride Common
Stock that receive Seahawk stock in the Distribution to recognize gain or loss, or otherwise include any amount in income, as a result of the Distribution for U.S. federal income tax purposes (except with respect to cash received in lieu of
fractional shares). 
 8.2   Restricted Actions Relating to Tax Materials.   Without limiting the
other provisions of this Section 8, following the Effective Time, Seahawk shall not, and shall cause the members of the Seahawk Group not to, take any action that, or fail to take any action the failure of which, would be reasonably likely to
be inconsistent with, or cause any Person to be in breach of, any representation or covenant, or any material statement, made in the Tax Materials. 
 8.3   Certain Seahawk Actions Following the Effective Time.   Without limiting the other provisions of this Section 8, during the two-year period following the Effective Time, Seahawk
shall not take, nor enter into a binding agreement to take, any of the following actions: (i) sell all or substantially all of the assets that constitute the Seahawk Business as of the Effective Time to any Person other than Seahawk or an
entity which is and will be wholly-owned, directly or indirectly, by Seahawk; (ii) transfer any assets of Seahawk or any Seahawk Affiliate in a transaction described in subparagraphs (A), (C), (D), (F), or (G) of Section 368(a)(1) to
another entity, other than Seahawk or an entity which is and will be wholly-owned, directly or indirectly, by Seahawk, (iii) transfer all or substantially all of the assets that constitute the Seahawk Business as of the Effective Time in a
transaction described in Sections 351 or 721 other than a transfer to a corporation or partnership which is and will be wholly-owned, directly or indirectly, by Seahawk; (iv) issue stock of Seahawk or any Seahawk Affiliate (or any instrument
that is convertible or exchangeable into any such stock) other than an issuance to which Treasury Regulations Section 1.355-7(d)(8) or (9) applies; (v) facilitate or otherwise participate in any acquisition (or deemed acquisition) of
stock of Seahawk that would result in any shareholder owning (or being deemed to own after applying the rules of Sections 355(e)(4)(C) and 355(e)(3)(B) of the Code) forty percent (40%) or more (by vote or value) of the outstanding stock of
Seahawk; or (vi) redeem or otherwise repurchase any stock of Seahawk other than pursuant to open market stock repurchase programs meeting the requirements of Section 4.05(1)(b) of Rev. Proc. 96-30, 1996-1 C.B. 696; in each case, without
first obtaining and delivering to Pride at Seahawk’s own expense (y) a Supplemental Tax Opinion with respect to such action, or (z) a suitable form of financial security issued by a Permitted Financial Institution, in such form and on
such terms as Pride may reasonably direct, and of a sufficient amount which Pride may determine in its sole discretion to cover any and all Taxes that may arise as a result of taking such action. 
  

 - 21 - 

 SECTION 9.   General Provisions. 
 9.1   Limitation of Liability.   IN NO EVENT SHALL ANY MEMBER OF THE PRIDE GROUP OR THE SEAHAWK GROUP OR
THEIR RESPECTIVE DIRECTORS, OFFICERS AND EMPLOYEES BE LIABLE TO ANY OTHER MEMBER OF THE PRIDE GROUP OR THE SEAHAWK GROUP FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER CAUSED AND ON ANY THEORY OF
LIABILITY (INCLUDING NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
 9.2   Entire Agreement.   This Agreement and the Master Separation Agreement constitute the entire agreement between Pride and Seahawk with respect to the subject matter hereof and shall
supersede all prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject matter hereof. 
 9.3   Governing Law.   This Agreement shall be governed and construed and enforced in accordance with the laws of the State of Texas as to all matters regardless of the laws that might
otherwise govern under the principles of conflicts of laws applicable thereto. 
 9.4   Termination.

 (a)   This Agreement may be terminated at any time prior to the Distribution Date by and in the sole discretion
of Pride without the approval of Seahawk. In the event of termination pursuant to this Section 9.4, neither party shall have any liability of any kind to the other party. 
 (b)   This Agreement shall otherwise terminate at such time as all obligations and liabilities of the parties hereto have been satisfied. The obligations and liabilities of the parties
arising under this Agreement shall continue in full force and effect until all such obligations have been satisfied and such liabilities have been paid in full, whether by expiration of time, operation of law, or otherwise. 
 9.5   Notices.   Unless expressly provided herein, all notices, claims, certificates, requests, demands and
other communications hereunder shall be in writing and shall be deemed to be duly given (i) when personally delivered or (ii) if mailed registered or certified mail, postage prepaid, return receipt requested, on the date the return receipt
is executed or the letter is refused by the addressee or its agent or (iii) if sent by overnight courier which delivers only upon the signed receipt of the addressee, on the date the receipt acknowledgment is executed or refused by the
addressee or its agent 

  

 - 22 - 

 
or (iv) if sent by facsimile or other generally accepted means of electronic transmission, on the date confirmation of transmission is received
(provided that a copy of any notice delivered pursuant to this clause (iv) shall also be sent pursuant to clause (ii) or (iii)), addressed to the attention of the addressee’s General Counsel at the address of its principal executive
office or to such other address or facsimile number for a party as it shall have specified by like notice. 
 9.6   Counterparts.   This Agreement may be executed in counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement. 
 9.7   Binding Effect; Assignment.   This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective legal representatives and successors, and nothing in this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this
Agreement. This Agreement may not be assigned by any party hereto. 
 9.8   No Third Party
Beneficiaries.   This Agreement is solely for the benefit of Pride, Seahawk and their Subsidiaries and is not intended to confer upon any other Person any rights or remedies hereunder. 
 9.9   Severability.   If any term or other provision of this Agreement is determined by a nonappealable
decision by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and
effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either party. Upon such determination that any term or other provision is invalid, illegal or incapable of
being enforced, the court, administrative agency or arbitrator shall interpret this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are
fulfilled to the fullest extent possible. If any sentence in this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable. 
 9.10  Failure or Indulgence Not Waiver; Remedies Cumulative.   No failure or delay on the part of either party
hereto in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor shall any single or partial exercise of any such right
preclude other or further exercise thereof or of any other right. All rights and remedies existing under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available. 
 9.11  Amendments; Waivers.   Any provision of this Agreement may be amended or waived if, but only if, such
amendment or waiver is in writing and is signed, in the case of an amendment, by each party to this Agreement, or in the case of a waiver, by the party against whom the waiver is to be effective. No failure or delay by any party in exercising any
right, power or privilege hereunder shall operate as a waiver thereof nor 

  

 - 23 - 

 
shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. Except as
otherwise provided herein, the rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by applicable law. Any consent provided under this Agreement must be in writing, signed by the party against
whom enforcement of such consent is sought. 
 9.12  Authority.   Each of the parties hereto
represents to the other that (a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement by it has been duly authorized by
all necessary corporate or other actions, (c) it has duly and validly executed and delivered this Agreement to be executed and delivered on or prior to the Distribution Date, and (d) this Agreement creates legal, valid and binding
obligations, enforceable against it in accordance with its respective terms subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equity principles.

 9.13  Construction.   This Agreement shall be construed as if jointly drafted by Seahawk and Pride
and no rule of construction or strict interpretation shall be applied against either party. The parties represent that this Agreement is entered into with full consideration of any and all rights which the parties may have. The parties have relied
upon their own knowledge and judgment and upon the advice of the attorneys of their choosing. The parties have received independent legal advice, have conducted such investigations they and their counsel thought appropriate, and have consulted with
such other independent advisors as they and their counsel deemed appropriate regarding this Agreement and their rights and asserted rights in connection therewith. The parties are not relying upon any representations or statements made by any other
party, or such other party’s employees, agents, representatives or attorneys, regarding this Agreement, except to the extent such representations are expressly incorporated in this Agreement. The parties are not relying upon a legal duty, if
one exists, on the part of any other party (or such other party’s employees, agents, representatives or attorneys) to disclose any information in connection with the execution of this Agreement or its preparation, it being expressly understood
that no party shall ever assert any failure to disclose information on the part of the other party as a ground for challenging this Agreement. 
 9.14  Interpretation.   The headings contained in this Agreement and in the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. The word “including” and words of similar import when used in this Agreement will mean “including, without limitation,” unless otherwise specified. The operation of various provisions of this
Agreement is illustrated by examples in Appendix A hereto, and this Agreement shall be interpreted in accordance with such examples. 
 9.15  Predecessors or Successors.   Any reference to Pride, Seahawk, Seahawk Subsidiaries, a Person, or a Subsidiary in this Agreement shall include any predecessors or successors (e.g.,
by merger or other reorganization, liquidation, conversion, or election under Treasury Regulations Section 301.7701-3) of Pride, Seahawk, Seahawk Subsidiaries, such Person, or such Subsidiary, respectively. 
  

 - 24 - 

 9.16  Expenses.   Except as otherwise expressly provided for
herein, each party and its Subsidiaries shall bear their own expenses incurred in connection with preparation of Tax Returns and other matters related to Taxes under the provisions of this Agreement for which they are liable. 
 9.17  Effective Time.   This Agreement shall become effective on the date recited above on which the parties
entered into this Agreement. 
 9.18  Change in Law.   Any reference to a provision of the Code or any
other Tax Law shall include a reference to any applicable successor provision or law. 
 9.19 
Disputes.   The procedures for discussion, negotiation and arbitration set forth in Article V of the Master Separation Agreement shall apply to all disputes, controversies or claims (whether sounding in contract, tort or otherwise)
that may rise out of or relate to, or arise under or in connection with this Agreement. 
  

 - 25 - 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by the
respective officers as of the date set forth above. 
  

					
	PRIDE INTERNATIONAL, INC.
			
		 	By:	 	 /s/ Brian C. Voegele

		 	Name:	 	Brian C. Voegele
		 	Title:	 	Senior Vice President and Chief Financial Officer
	
	SEAHAWK DRILLING, INC.
			
		 	By:	 	 /s/ Randall D. Stilley

		 	Name:	 	Randall D. Stilley
		 	Title:	 	President and Chief Executive Officer

  

 - 26 - 

 APPENDIX A 
 The following examples illustrate the operation of various provisions of this Agreement. However, each example is not necessarily intended to illustrate every provision of this Agreement that may
be relevant thereto. 
 Except as stated otherwise, each of the examples assumes (i) a U.S. federal income Tax rate of
35%, (ii) that the Distribution Date was March 31, 2009 and that both the Internal Distribution and the External Distribution occurred thereon, (iii) that Seahawk files a Separate Return with respect to all Taxes in 2010 and later
years, (iv) that the Internal Distribution qualifies as a tax-free transaction under Sections 368(a)(1)(D) and 355 of the Code, and (v) that the External Distribution qualifies as a tax-free transaction under Section 355 of the Code.
In addition, for convenience, it is assumed that the amount of the credit for prior deemed tax payments which would otherwise be allowed by Section 4.2(c) is zero. 
 Example 1.   General Tax Allocation on Joint Return and Non-Grossed Up Payment. 
 On its U.S. federal consolidated income Tax Return for the Tax Year that begins January 1, 2009, and ends December 31, 2009, the Pride consolidated group reports $200x of consolidated
net taxable income, no credits, and a Tax liability of $70x (viz., (35%)($200x)). Of the $200x of consolidated net taxable income reported on such Tax Return, $150x is attributable to and arises from the Pride Business. The remaining $50x of
consolidated net taxable income is attributable to and arises from the Seahawk Business during the period in which Seahawk joins in the filing of such Tax Return (viz., the period beginning January 1, 2009, and ending on the Distribution
Date). Pride’s basis in the stock of Seahawk immediately prior to the External Distribution was $17.5x. 
 The $150x of
taxable income attributable to the Pride Business and the $50x of taxable income attributable to the Seahawk Business in each case includes deductions. However, in neither case are these deductions a Tax Benefit, because the aggregate of such
deductions in the Tax Year does not exceed the income attributable to or arising from the relevant business in such Tax Year. 
 Because Pride’s 2009 U.S. federal consolidated income Tax Return includes Tax Items of each of the Pride Business and the Seahawk Business (determined without regard to Tax Items carried forward to such Tax Year), it will be a Joint
Return. Pursuant to Section 2.1, each of Pride and Seahawk will be liable for its allocable portion of the $70x of Tax shown on such Joint Return. Because $150x of the consolidated net taxable income contributing to the Tax was attributable to
the Pride Business and $50x of the consolidated net taxable income contributing to the Tax was attributable to the Seahawk Business, pursuant to Section 2.2(a), $52.5x of Tax will be allocable to Pride (viz., ($150x/$200x)($70x)) and
$17.5x of Tax will be allocable to Seahawk (viz., ($50x/$200x)($70x)). 
  

 - 27 - 

 Pursuant to Section 3.1(a), Pride is responsible for preparing and filing the Joint
Return. As a result, Pride will have the exclusive right to make those determinations described in Section 3.3(a) with respect to such Tax Return. Pursuant to Section 4.1, Pride must pay the $70x of Tax to the Tax Authority. Pursuant to
Section 4.2(a), Seahawk must remit the amount for which it is liable (viz., $17.5x) to Pride within thirty days after receiving notification requesting such amount. If payment is not made within thirty days, Seahawk must pay interest
thereafter on the amount past due at the rate and as determined under Section 4.4. 
 Pursuant to Section 4.7, the
parties must treat Seahawk’s payment of $17.5x as a distribution to Pride immediately prior to the External Distribution. Because the $17.5x payment does not exceed Pride’s basis in the Seahawk stock, Pride recognizes no gain. If, however,
Pride had a basis of $7.5x in its Seahawk stock immediately prior to the External Distribution, the $17.5x deemed distribution would have created an excess loss account of $10x (viz., $7.5x basis - $17.5x) in Pride’s Seahawk stock, which
$10x would have been included in income immediately before the External Distribution pursuant to Treasury Regulations Section 1.1502-19. Section 4.7 provides that Seahawk would not be required to gross up its $17.5x payment to Pride by the
amount of Taxes owed by Pride as a result of this $10x of income. 
 Example 2.   Separate Return filed
by Seahawk. 
 On the Joint Return for the Tax Year that begins on January 1, 2009 and ends December 31, 2009,
the Pride consolidated group reports $200x of consolidated net taxable income, no credits, and a Tax liability of $70x (viz., (35%)($200x)). Of the $200x of consolidated net taxable income reported on such Joint Return, $150x is attributable
to and arises from the Pride Business. The remaining $50x of consolidated net taxable income is U.S. source taxable income attributable to and arising from the Seahawk Business during the period in which Seahawk joins in the filing of such Tax
Return (viz., the period beginning January 1, 2009, and ending on the Distribution Date). 
 The remaining $50x
of consolidated taxable income represents  1/4 of the
consolidated taxable income of Seahawk and its subsidiaries during the period beginning January 1, 2009, and ending December 31, 2009. In determining the $50x of consolidated net taxable income reported on the Joint Return, Pride elected,
under Treasury Regulations Section 1.1502-76(b)(2)(ii)(D), to allocate the income of Seahawk and its consolidated subsidiaries ratably between (i) the period beginning on January 1, 2009, and ending on the Distribution Date and
(ii) the period beginning on April 1, 2009, and ending on December 31, 2009. No items of income constitute “extraordinary items” within the meaning of Treasury Regulations Section 1.1502-76(b)(2)(ii)(C).

 Pursuant to Section 3.2(b) Seahawk is responsible for preparing and filing a Separate Return for the Seahawk
consolidated group for the period beginning on April 1, 2009, and ending on December 31, 2009. As a result, Seahawk will have the right to make those determinations described in Section 3.3(a) with respect to the Separate Return,
subject to the limitations in Section 3.3(b). Thus, since Pride determined, with respect to the 2009 Joint Return, to make the election described in Treasury Regulations 

  

 - 28 - 

 
Section 1.1502-76(b)(2)(ii)(D) to allocate the income of Seahawk and its consolidated subsidiaries ratably between (i) the period beginning on
January 1, 2009, and ending on the Distribution Date and (ii) the period beginning on April 1, 2009, and ending on December 31, 2009, Seahawk must, pursuant to Section 3.1(b)(ii), also make such election for itself and other
members of the Seahawk consolidated group on the related Separate Return prepared by Seahawk so that its net consolidated income is allocated consistently with the Joint Return. 
 Because no items of income constitute extraordinary items, the result is that $50x of Seahawk’s net income is allocated to the
Joint Return and $150x of Seahawk’s net income is allocated to its Separate Return. Because the $150x of income allocated to the Separate Return is allocated to Seahawk pursuant to Section 2.2(a), Seahawk must pay the $52.5x of Tax shown
on such Tax Return to the Tax Authority pursuant to Section 2.1(a)(i). 
 Example 3.   Tax and Tax
Benefit Allocation on Joint Return. 
 On the Joint Return for the Tax Year that begins on January 1, 2009, and
ends December 31, 2009, the Pride consolidated group reports $200x of consolidated net taxable income, a $5x foreign Tax credit, and a Tax liability of $65x (viz., (35%)($200x) -$5x). Of the $200x of consolidated net taxable income
reported on such Joint Return, $150x is foreign source taxable income attributable to and arising from the Pride Business. The remaining $50x of consolidated net taxable income is U.S. source taxable income attributable to and arising from the
Seahawk Business during the period in which Seahawk joins in the filing of such Tax Return (viz., the period beginning January 1, 2009, and ending on the Distribution Date). In addition, the $5x foreign Tax credit is allocated to Seahawk
pursuant to Section 2.2(a) and such Tax credit arose during 2008 and is properly carried forward to the 2009 Joint Return. During its short Tax Year beginning on April 1, 2009, and ending on December 31, 2009, the Seahawk Business
generated $100x of foreign source taxable income. 
 Section 2.2 first allocates the Tax which would be payable
pursuant to Section 2.1 in the absence of any Tax Benefit, such as the $5x foreign Tax credit. Thus, before taking into account the $5x foreign Tax credit, $52.5x of Tax would be allocable to Pride and $17.5x of Tax would be allocable to
Seahawk, as in Example 1. Section 2.2 then allocates the Tax Benefit, consisting of the $5x foreign Tax credit. 
 Under applicable Tax Law, Seahawk’s short Tax Year ending on the Distribution Date will be considered the same Tax Year as Pride’s Tax Year ending on December 31, 2009 (and which includes Seahawk’s short Tax Year), but
will be considered a different Tax Year from Seahawk’s short Tax Year that begins after the Distribution Date. After taking into account only those Tax Items allocated to it, the $5x foreign Tax credit would not be allowable to Seahawk under
applicable Tax Law because Seahawk has no foreign source taxable income during its short Tax Year ending on the Distribution Date. Accordingly, pursuant to Section 2.1(c), Seahawk shall not take into account (and shall not be considered to have
taken into account) the Tax Benefit, consisting of the $5x foreign Tax credit. And pursuant to Section 2.1(b), Pride will be 

  

 - 29 - 

 
entitled to use such foreign Tax credit and will not be required to compensate Seahawk therefor, notwithstanding the fact that Seahawk would otherwise have
been able to use such foreign Tax credit in its short Tax Year following the Distribution Date. 
 Thus, the ultimate Tax
liability of $65x (viz., (35%)($200x) - $5x) shown on the Joint Return will be allocated $47.5x to Pride (viz., $52.5x - $5x) and $17.5x to Seahawk. 
 Example 4.   Tax Credit Carryforward on Seahawk Separate Return. 
 On its Separate Return for the Tax Year that begins on January 1, 2010, and ends December 31, 2010, the Seahawk consolidated group has $100x of consolidated net taxable income, no losses, and $70x of Tax
credits. All $100x of consolidated net taxable income reported on the Separate Return is foreign source taxable income attributable to and arising from the Seahawk Business. The $70x of Tax credits consist of (i) a $50x foreign Tax credit
carryforward which was generated in 2008 by a member of the Seahawk Group (as the Seahawk Group was composed in 2008) which was at all times during 2008 engaged solely in the Pride Business, and (ii) a $20x foreign Tax credit carryforward which
was generated in 2008 by a member of the Seahawk Group (as the Seahawk Group was composed in 2008) which was at all times during 2008 engaged solely in the Seahawk Business. Pride was unable to use the $50x foreign Tax credit on its 2008 and 2009
Joint Returns, and under applicable Tax Law, the $50x foreign Tax credit is properly carried forward and used by Seahawk on its 2010 Separate Return. Similarly, the $20x foreign Tax credit is properly carried forward and used by Seahawk on its 2010
Separate Return. 
 As above, Section 2.2 first allocates the Tax which would be payable pursuant to Section 2.1
in the absence of any Tax Benefit, such as the $70x Tax credits. Thus, before taking into account the $70x Tax credits, $35x of Tax would be allocable to Seahawk because all $100x of the consolidated net taxable income contributing to the Tax was
attributable to the Seahawk Business. Section 2.2 then allocates the Tax Benefits, consisting of the $70x Tax credits. Because the $50x foreign Tax credit carryforward was attributable to the Pride Business, it is allocated to Pride pursuant to
Section 2.2. This is true regardless of the fact that the foreign Tax credit was generated by a member of the Seahawk Group (as the Seahawk Group was composed in 2008). Because the $20x foreign Tax credit was attributable to the Seahawk
Business, it is allocated to Seahawk pursuant to Section 2.2. 
 Under the facts above, Seahawk is entitled to use both
the $50x foreign Tax credit and the $20x foreign Tax credit on its 2010 Separate Return. However, because the $50x foreign Tax credit arose in a Tax Year that begins on or before the Distribution Date, was allocated to Pride pursuant to
Section 2.2, and was used by Seahawk to reduce its Taxes in a Tax Year which begins after the Distribution Date, Seahawk must, pursuant to Sections 2.1(a)(ii), 4.2(d)(ii), and 4.2(d)(iii), pay to Pride an amount equal to such Tax Benefit within
fifteen business days following the time that Seahawk files such Separate Return. 
  

 - 30 - 

 Pursuant to Section 4.2(d)(iii), the amount of the Tax Benefit that Seahawk must
pay to Pride will be the amount by which Seahawk’s Taxes are actually reduced by using the $50x foreign Tax credit on its 2010 Separate Return (determined in accordance with the provisions of Section 2.1(c)). Pursuant to
Section 2.1(c), Seahawk is considered to have used a pro rata portion of each of the $20x foreign Tax credit and the $50x foreign Tax credit. Such pro rata portions are determined by multiplying each Tax credit used on Seahawk’s 2010
Separate Return by a fraction, the numerator of which is equal to the total reduction in Seahawk’s Taxes resulting from the actual use of Tax Benefits (viz., $35x), and the denominator of which is equal to the total reduction in Taxes
that would result if Seahawk had been able to use all of the Tax Benefits to which it would be entitled (viz., $70x). Seahawk is thus considered to have used $25x of the $50x foreign Tax credit (viz., $50x($35x/$70x)) and $10x of the
$20x foreign Tax credit (viz., $20x($35x/$70x)) on its 2010 Separate Return. 
 Thus, on its 2010 Separate Return,
Seahawk reports an ultimate Tax liability of $0x (viz., (35%)($100x) - $35x), but must pay $25x to Pride within fifteen business days following the time that Seahawk files its 2010 Separate Return. 
 Example 5.   Carryback of Tax Benefit by Seahawk. 
 On the Joint Return for the Tax Year that begins on January 1, 2009 and ends December 31, 2009, the Pride consolidated group
reports $200x of consolidated net taxable income, no credits, and a Tax liability of $70x (viz., (35%)($200x)). Of the $200x of consolidated net taxable income reported on such Joint Return, $150x is attributable to and arises from the Pride
Business. The remaining $50x of consolidated net taxable income is attributable to and arises from the Seahawk Business during the period in which Seahawk joins in the filing of such Tax Return (viz., the period beginning January 1,
2009, and ending on the Distribution Date). 
 In addition, the Seahawk Business has $150x of net taxable income and no
losses or credits during the period beginning on April 1, 2009, and ending on December 31, 2009, but, in 2010, the Seahawk Business generates a $150x net operating loss (“NOL”), which constitutes a Tax Benefit allocated to
Seahawk pursuant to Section 2.2(a). 
 Pursuant to Section 3.3(d), Seahawk must elect under Section 172(b)(3)
of the Code to relinquish the entire carryback period with respect to the $150x NOL because such NOL may not be carried back to the 2009 Joint Return. Under applicable Tax Law, the relinquished carryback period includes the period beginning on
January 1, 2009, and ending on the Distribution Date, with respect to the Joint Return, and the period beginning on April 1, 2009, and ending on December 31, 2009, with respect to Seahawk’s Separate Return. 
 However, if Seahawk generated a foreign Tax credit in its Tax Year ending December 31, 2009, which would otherwise be carried back
to the Joint Return under applicable Tax Law, Seahawk is not required to claim a deduction for, rather than elect to credit, foreign Taxes paid in 2009, in order to avoid the carryback of the foreign 

  

 - 31 - 

 
Tax credit to the 2009 Joint Return. If Seahawk elects to credit foreign Taxes paid in 2009, the foreign Tax credit would be carried back to the 2009 Joint
Return under applicable Tax Law, and pursuant to Section 2.1(b)(ii)(B), Pride would be entitled to utilize it as a Tax Benefit (assuming such use was permitted under applicable Tax Law) and would be required to compensate Seahawk therefor.

 Example 6.   NOL Carryforward as a Tax Benefit on Joint Return. 
 On the Joint Return for the Tax Year that begins on January 1, 2009 and ends December 31, 2009, the Pride consolidated group
reports $150x of consolidated net taxable income, no credits, and a Tax liability of $52.5x (viz., (35%)($150x)). Of the $150x of consolidated net taxable income reported on such Tax Return, all $150x is attributable to and arises from the
Pride Business. In addition, the Seahawk Business generated a $150x NOL in 2008, which is carried forward to the 2009 Joint Return under applicable Tax Law. 
 As above, Section 2.2 first allocates the Tax which would be payable pursuant to Section 2.1 in the absence of any Tax Benefit. Thus, before taking into account any Tax Benefits, $52.5x
of Tax would be allocable to Pride pursuant because all $150x of the consolidated net taxable income contributing to the Tax was attributable to the Pride Business, and $0x of the consolidated net taxable income contributing to the Tax was
attributable to the Seahawk Business. Section 2.2 then allocates any Tax Benefits. Because no amount of the NOL carryforward can be used as a deduction by Seahawk, the entire $150x NOL will constitute a Tax Benefit. Moreover, because the $150x
NOL was attributable to the Seahawk Business, it is a Tax Benefit that is allocated to Seahawk pursuant to Section 2.2(a). Under applicable Tax Law and pursuant to Section 2.1(a), however, Pride will be entitled to use the NOL as a Tax
Benefit to reduce its consolidated taxable income in 2009 and will not be required to compensate Seahawk therefor. Thus, in 2009, Pride will be obligated to pay Tax of $0x (viz., (35%)($150x - $150x) to the Tax Authority and $0x to
Seahawk. 
 Example 7.   Breach of Covenants and Grossed-Up Payment. 
 Immediately before the Internal Distribution, (i) Seahawk held the DeepCo stock with a fair market value of $250x and a basis of
$50x, and (ii) Pride held the Seahawk stock with a fair market value of $500x and a basis of $200x. In 2010 Pride enters into a merger whereby an acquiring corporation acquires all of the assets and liabilities of Pride and Pride’s
shareholders receive stock in the acquiring corporation in exchange for all of their stock in Pride. Assume that entering into the merger causes the External Distribution to be taxable to Pride under Section 355(e) and causes the Internal
Distribution to fail to qualify as a tax-free transaction described under Sections 368(a)(1)(D) and 355 of the Code (see Section 355(f)). 
 As a result, Seahawk and Pride will be required to recognize all of their realized gain on the Internal Distribution and External Distribution, respectively. After taking into account the basis adjustments to the
Seahawk stock as a result of recognizing the $200x of gain on the Internal Distribution and as a result of the distribution itself, the merger results in a net Tax liability of $105x (viz., (35%)($100x gain on External Distribution + $200x
gain on Internal Distribution)). 
  

 - 32 - 

 Pursuant to Section 2.2(b), all $105 of the Tax (viz.,
(35%)($300x)) resulting from the Internal Distribution and External Distribution would be allocated to Pride because entering into the merger will cause Section 355(e) to apply to the External Distribution. 
 Example 8.   Redetermination of Foreign Tax. 
 On the Joint Return for the Tax Year that begins on January 1, 2008, and ends December 31, 2008, the Pride consolidated group
reports $200x of consolidated net taxable income, a $40x foreign Tax credit, and a Tax liability of $30x (viz., (35%)($200x) – $40x of foreign Tax credits). Of the $200x of consolidated net taxable income reported on such Joint
Return, $40x is foreign source taxable income and $60x is U.S. source taxable income attributable to and arising from the Pride Business and $100x is foreign source taxable income attributable to and arising from the Seahawk Business. The $40x
foreign Tax credit is allocated to Seahawk pursuant to Section 2.2(a). 
 Section 2.2 first allocates the Tax
which would be payable pursuant to Section 2.1 in the absence of any Tax Benefit, such as the $40x foreign Tax credit. Thus, before taking into account the $40x foreign Tax credit, $35x of Tax would be allocable to Pride and $35x of Tax would
be allocable to Seahawk. Section 2.2 then allocates the Tax Benefit, consisting of the $40x foreign Tax credit. After taking into account only those Tax Items allocated to Seahawk, the $40x foreign Tax credit would be allowable to Seahawk under
applicable Tax Law, but Seahawk would be limited to using an amount thereof equal to its $35x of Tax determined before utilizing the foreign Tax credit. Pursuant to Section 2.1(c), Seahawk will take into account (and will be considered to have
taken into account) a $35x Tax Benefit, consisting of $35x of the foreign Tax credit. As a result, Seahawk would be liable for $0x of Taxes pursuant to Section 2.1(a)(i) (viz., ($100x)(35%) - $35x). Pursuant to Section 2.1(c)(i),
Pride will be entitled to use the remaining $5x of such foreign Tax credit and will not be required to compensate Seahawk therefor. As a result, Pride would be liable for $30x of Taxes pursuant to Section 2.1(b)(i) (viz., ($100x)(35%) -
$5x). Thus, the Tax liability of $30x (viz., (35%)($200x) – $40x) shown on the Joint Return is allocated $30x to Pride (viz., (35%)($100x) - $5x) and $0x to Seahawk (viz., (35%)($100x) - $35x). 
 On June 16, 2010, a date subsequent to the Distribution Date, Seahawk pays $30x to the Mexican government in settlement of a Tax
Contest attributable to the Seahawk Business for the 2008 Tax Year. As required by Section 3.3(a), Pride amends the Pride consolidated group’s Joint Return for the 2008 Tax Year to claim a foreign Tax credit for the $30x paid by Seahawk to
the Mexican government and receives a refund of $9x (viz. (35%)($200x) = $70; ($70)($140x/$200x) = $49x foreign Tax credit limitation; $49x - $40x = $9x). 
  

 - 33 - 

 As a result of amending such Joint Return, Section 4.3 requires that the amounts
paid under this Agreement be redetermined as follows. Section 2.2 first allocates the Tax which would be payable pursuant to Section 2.1 in the absence of any Tax Benefit, such as the $70x foreign Tax credit. Thus, before taking into
account the $70x foreign Tax credit, $35x of Tax would be allocable to Pride and $35x of Tax would be allocable to Seahawk. Section 2.2 then allocates the Tax Benefit, consisting of the $70x foreign Tax credit. After taking into account only
those Tax Items allocated to Seahawk, the $70x foreign Tax credit would be allowable to Seahawk under applicable Tax Law in an amount equal to its $35x of Tax determined before utilizing the foreign Tax credit. Pursuant to Section 2.1(c),
Seahawk will take into account (and will be considered to have taken into account) a $35x Tax Benefit, consisting of $35x of the foreign Tax credit. As a result, Seahawk would be liable for $0x of Taxes pursuant to Section 2.1(a)(i)
(viz., ($100x)(35%) - $35x). Pursuant to Section 2.1(b) and 2.1(c), Pride will be entitled to use the remaining $35x of such foreign Tax credit, but will be limited to using $14x thereof after taking into account the foreign Tax credit
limitation based only on Pride’s Tax Items (viz., ($100x)(35%) X ($40x/$100x)). As a result, Pride would be liable for $21x of Taxes pursuant to Section 2.1(b)(i) (viz., ($100x)(35%) - $14x). Thus, the amended Tax liability
of $21x (viz., (35%)($200x) – $49x) shown on the amended Joint Return is allocated $21x to Pride (viz., (35%)($100) - $14x) and $0x to Seahawk (viz., (35%)($100x) - $35x), and the remainder of the foreign Tax
credits for 2008 (viz., $21x = $70x - $49x) will be carried back or forward under applicable Tax Law. 
 Because the
$30x additional foreign Tax credit arose as a result of the resolution after the Distribution Date of a Tax Contest for a Tax Year that began prior to the Distribution Date, such foreign Tax credit was allocated to Seahawk pursuant to
Section 2.2, and Pride used $9x (viz., $14x - $5x of foreign Tax credits attributable to Tax Years beginning prior to the Distribution Date) of such foreign Tax credit to reduce Taxes payable by it pursuant to clause (i) of
Section 2.1(b) for a Tax Year that began on or before the Distribution Date, Pride must, pursuant to Sections 2.1(b)(ii)(C) and 4.2(d)(i), pay to Seahawk $9x, which is equal to the amount of such additional foreign Tax credit, within fifteen
days following Pride’s receipt of such refund. 
 The unused foreign Tax credit of $21x is a Tax Benefit which is
allocated to Seahawk under Section 2.2(a) and will be subject to the provisions of this Agreement which apply to Tax Benefits. 
  

 - 34 -Employee Matters Agreement

 Exhibit 10.3 
 EXECUTION COPY 
  
 EMPLOYEE MATTERS AGREEMENT 
 BETWEEN 
 PRIDE INTERNATIONAL, INC. 
 and 
 SEAHAWK DRILLING, INC. 
  
 Dated
August 4, 2009 

 TABLE OF CONTENTS 
  

					
	 ARTICLE I DEFINITIONS
	  	1
		
	 ARTICLE II GENERAL PRINCIPLES
	  	5
	 SECTION 2.1
	  	Seahawk Plans	  	5
	 SECTION 2.2
	  	Pride Plans	  	5
		
	 ARTICLE III DEFINED CONTRIBUTION PLANS
	  	7
	 SECTION 3.1
	  	Seahawk Qualified Plan	  	7
	 SECTION 3.2
	  	Spin-Off of Pride Qualified Plan Assets	  	7
		
	 ARTICLE IV HEALTH AND WELFARE PLANS AND BENEFITS
	  	8
	 SECTION 4.1
	  	Establishment of Seahawk Health and Welfare Plans	  	8
	 SECTION 4.2
	  	Seahawk Employee Participation in Pride Health and Welfare Plans	  	8
	 SECTION 4.3
	  	Pride Obligations with Respect to Seahawk Employee Participation in Pride Health and Welfare Plans	  	8
	 SECTION 4.4
	  	Paid Time Off	  	9
	 SECTION 4.5
	  	Employees on Leave	  	9
	 SECTION 4.6
	  	Retiree Medical	  	9
	 SECTION 4.7
	  	Medical Reimbursement Account Plan	  	9
	 SECTION 4.8
	  	Health Insurance Portability and Accountability Act of 1996	  	9
	 SECTION 4.9
	  	Workers’ Compensation	  	9
	 SECTION 4.10
	  	COBRA	  	10
	 SECTION 4.11
	  	Claims Experience	  	10
		
	 ARTICLE V EQUITY AND OTHER COMPENSATION
	  	10
	 SECTION 5.1
	  	Executive and Non-Qualified Plans	  	10
	 SECTION 5.2
	  	Pride International, Inc. Long-Term Incentive Plans	  	10
	 SECTION 5.3
	  	Employee Stock Purchase Plan	  	12
	 SECTION 5.4
	  	Annual Bonus Plan	  	13
	 SECTION 5.5
	  	Deduction under Section 83(h) of the Code	  	13
	 SECTION 5.6
	  	SEC Registration	  	13
	 SECTION 5.7
	  	Section 409A	  	13
		
	 ARTICLE VI CERTAIN TRANSITION MATTERS
	  	13
	 SECTION 6.1
	  	Transition Services Agreement	  	13
	 SECTION 6.2
	  	Requests for IRS and DOL Opinions	  	14
	 SECTION 6.3
	  	Consent of Third Parties	  	14
	 SECTION 6.4
	  	Tax Cooperation	  	14
	 SECTION 6.5
	  	Plan Returns	  	14
		
	 ARTICLE VII EMPLOYMENT-RELATED MATTERS
	  	14
	 SECTION 7.1
	  	Terms of Seahawk Employment	  	14
	 SECTION 7.2
	  	Non-Termination of Employment; No Third-Party Beneficiaries	  	15

  

 -i- 

					
	 ARTICLE VIII GENERAL PROVISIONS
	  	15
	 SECTION 8.1
	  	Approval by Pride As Sole Stockholder	  	15
	 SECTION 8.2
	  	Amendments	  	15
	 SECTION 8.3
	  	Fiduciary Matters	  	15
	 SECTION 8.4
	  	No Amendment of Plans	  	16
	 SECTION 8.5
	  	Effect if Separation does not Occur	  	16
	 SECTION 8.6
	  	Limitation of Liability	  	16
	 SECTION 8.7
	  	Relationship of Parties	  	16
	 SECTION 8.8
	  	Incorporation of Master Separation Agreement Provisions	  	17
	 SECTION 8.9
	  	Governing Law	  	17
	 SECTION 8.10
	  	Severability	  	17
	 SECTION 8.11
	  	Amendment	  	17
	 SECTION 8.12
	  	Assignment	  	18
	 SECTION 8.13
	  	No Strict Construction; Cooperation of the Parties	  	18
	 SECTION 8.14
	  	Termination	  	18
	 SECTION 8.15
	  	Conflict	  	18
	 SECTION 8.16
	  	Counterparts	  	18
	 SECTION 8.17
	  	Successor Employer	  	18

  

 -ii- 

 EMPLOYEE MATTERS AGREEMENT 
 This EMPLOYEE MATTERS AGREEMENT (this “Agreement”) is entered into as of August 4, 2009 by and between Pride International, Inc., a Delaware corporation (“Pride”), and
Seahawk Drilling, Inc., a Delaware corporation (“Seahawk”). Capitalized terms used herein and not otherwise defined shall have the respective meanings assigned to them in ARTICLE I hereof or in the Master Separation Agreement. 

WHEREAS, the Board of Directors of Pride has determined that it is in the best interests of Pride and its shareholders to spin off
the Seahawk Business by distributing the capital stock of Seahawk to Pride’s shareholders; 
 WHEREAS, in order to
effectuate the foregoing, Pride and Seahawk have entered into a Master Separation Agreement which provides, among other things, subject to the terms and conditions thereof, for the Distribution and the execution and delivery of certain other
agreements, including this Agreement, in order to facilitate and provide for the foregoing; and 
 WHEREAS, in order to
ensure an orderly transition under the Master Separation Agreement it will be necessary for Pride and Seahawk to allocate between them assets, liabilities and responsibilities with respect to certain employee compensation, benefit plans and
programs, and certain employment matters. 
 NOW, THEREFORE, in consideration of the premises and the mutual covenants and
agreements herein contained, the parties, intending to be legally bound, agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 Wherever used
in this Agreement, the following terms shall have the meanings indicated below, unless a different meaning is plainly required by the context. The singular shall include the plural, unless the context indicates otherwise. Headings of sections are
used for convenience of reference only, and in case of conflict, the text of this Agreement, rather than such headings, shall control: 
 “Affiliate” shall have the meaning set forth in the Master Separation Agreement. 
 “Agreement” means this Employee Matters Agreement and all amendments made hereto from time to time. 
 “Benefits Maintenance Period” means the period beginning on the Distribution Date and ending on December 31, 2009 or such other date as the parties mutually agree in writing during which Pride agrees to provide certain
benefits and administrative services to Seahawk including (without limitation): (i) participation by Seahawk Employees in certain Pride Plans as described in ARTICLE IV and (ii) the provision of “Services” as defined in the
Transition Services Agreement. 
 “Board(s)” means the Board of Directors of Pride and/or the Board of
Directors of Seahawk, as the context indicates. 
  

 - 1 - 

 “COBRA” means the continuation coverage requirements for “group
health plans” under Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended from time to time, and as codified in Section 4980B of the Code and Sections 601 through 608 of ERISA, together with all regulations
and proposed regulations promulgated thereunder. 
 “Code” means the Internal Revenue Code of 1986, as
amended from time to time. 
 “Continuing Seahawk Participant” means a Seahawk Employee who participated in
a Pride Health and Welfare Plan immediately preceding the Distribution Date and is eligible to continue to participate in such Plan as of the Distribution Date through the Benefits Maintenance Period. 
 “Distribution” shall have the meaning set forth in the Master Separation Agreement. 
 “Distribution Date” shall have the meaning set forth in the Master Separation Agreement. 
 “DOL” means the United States Department of Labor. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. 
 “FBP” means the Pride International, Inc. Flexible Benefits Plan. 
 “Group” shall have the meaning set forth in the Master Separation Agreement. 
 “Health and Welfare Plans,” when immediately preceded by “Pride,” means the health and welfare plans listed
on Schedule 1 established and maintained by Pride for the benefit of employees of any member of the Pride Group. When immediately preceded by “Seahawk,” “Health and Welfare Plans” means the health and welfare plans
to be established by Seahawk pursuant to ARTICLE IV that correspond to the respective Pride Health and Welfare Plans. 
 “HIPAA” means the Health Insurance Portability and Accountability Act of 1996, as it may be amended from time to time. 
 “IRS” means the United States Internal Revenue Service. 
 “Master
Separation Agreement” means the Master Separation Agreement between Pride and Seahawk entered into as of August 4, 2009. 
 “Participating Company” means: (a) Pride; (b) any Person (other than an individual) that Pride has approved for participation in, has accepted participation in, or which is participating in,
a Plan sponsored by Pride; or (c) any Person (other than an individual) that, by the terms of such a Plan, participates in such a Plan sponsored by Pride or any employees of which, by the terms of such a Plan, participate in a Plan. 

 

 - 2 - 

 “Person” means an individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof. 
 “Plan,” depending on the context, may mean any plan, policy, program, payroll practice, arrangement, contract, annuity
contract, trust, insurance policy, or any agreement or funding vehicle providing compensation or benefits to employees, dependents of employees or former employees or non-employee and employee directors of Pride, Seahawk or any member of the Pride
Group or the Seahawk Group. “Plan,” when immediately preceded by “Pride,” means a Plan sponsored by Pride or a member of the Pride Group. When immediately preceded by “Seahawk,” “Plan” means a Plan
sponsored by Seahawk or a member of the Seahawk Group. 
 “Pride” means Pride International, Inc., a
Delaware corporation. 
 “Pride Business” shall have the meaning set forth in the Master Separation
Agreement. 
 “Pride Common Stock” shall have the meaning set forth in the Master Separation Agreement.

 “Pride Distribution Date Value” means the volume-weighted average price of Pride Common Stock on the
Distribution Date. 
 “Pride Employee” means any individual who is employed in the Pride Business during
the relevant time period. 
 “Pride Group” shall have the meaning set forth in the Master Separation
Agreement. 
 “Pride Non-Qualified Plans” means the Pride International, Inc. 2007 Long-Term Incentive
Plan, the Pride International, Inc. 1998 Long-Term Incentive Plan, the Pride International, Inc. 2004 Directors’ Stock Incentive Plan, the Pride International, Inc. 1993 Director’s Stock Option Plan, the Marine Drilling 2001 Stock
Incentive Plan, the Marine Drilling 1992 Long-Term Incentive Plan, the Marine Drilling 1995 Non-Employee Directors’ Plan, the Pride International, Inc. Supplemental Executive Retirement Plan, the Pride International, Inc. 401(k) Restoration
Plan, each as amended from time to time, and any other plan, other than the Pride Qualified Plan, maintained by Pride or any of its Subsidiaries for the purpose of providing incentive or retirement benefits to any Pride Employee and in which any
Seahawk Employee participates as of the date immediately prior to the Distribution Date. 
 “Pride Qualified
Plan” means the Pride International, Inc. 401(k) Retirement and Savings Plan. 
 “Pride Plan”
means an employee benefit or welfare plan, program, arrangement or agreement (whether formal or informal, written or unwritten, qualified or unqualified or subject to ERISA or not) that is maintained or sponsored by a member of the Pride Group for
the benefit of eligible Pride Employees and Seahawk Employees. 
  

 - 3 - 

 “Seahawk” means Seahawk Drilling, Inc., a Delaware corporation. In all
such instances in which Seahawk is referred to in this Agreement, it shall also be deemed to include a reference to each member of the Seahawk Group, unless it specifically provides otherwise. Seahawk shall be solely responsible to Pride for
ensuring that each member of the Seahawk Group complies with the applicable terms of this Agreement. 
 “Seahawk
Business” shall have the meaning set forth in the Master Separation Agreement. 
 “Seahawk Common
Stock” shall have the meaning set forth in the Master Separation Agreement. 
 “Seahawk Distribution Date
Value” means the volume-weighted average price of Seahawk Common Stock on the Distribution Date. 
 “Seahawk Employee” means any individual who is employed in the Seahawk Business during the relevant time period; provided, that no Person on long-term disability as of the Distribution Date shall be considered a Seahawk
Employee. 
 “Seahawk Group” shall have the meaning set forth in the Master Separation Agreement.

 “Seahawk Qualified Plan” means a defined contribution qualified plan and trust established by Seahawk
pursuant to SECTION 3.1 of this Agreement. 
 “Seahawk Plan” means an employee benefit or welfare plan,
program, arrangement or agreement (whether formal or informal, written or unwritten, qualified or unqualified or subject to ERISA or not) that is maintained or sponsored by a member of the Seahawk Group for the benefit of eligible Seahawk Employees.

 “SEC” means the United States Securities and Exchange Commission. 
 “Subsidiary” shall have the meaning set forth in the Master Separation Agreement. 
 “Tax Sharing Agreement” shall have the meaning set forth in the Master Separation Agreement. 
 “Transition Services Agreement” means the Transition Services Agreement (Pride as service provider), as set forth and
attached as an exhibit to the Master Separation Agreement. 
  

 - 4 - 

 ARTICLE II 
 GENERAL PRINCIPLES 
 SECTION 2.1   Seahawk Plans 
 (a)   Non-Duplication of Benefits.   No employee of the Seahawk Group shall receive duplicate
benefits under Pride Plans and Seahawk Plans. Pride and Seahawk shall mutually agree on methods and procedures, if necessary, including amending the respective Plan documents, to prevent employees of the Seahawk Group from receiving duplicate
benefits from the Pride Plans and the Seahawk Plans. 
 (b)   Service Credit.  
Except as specified otherwise in this Agreement or as required by applicable law, each Seahawk Plan in existence on the Distribution Date or the end of the Benefits Maintenance Period shall provide each Seahawk Employee full credit for all service
with the Pride Group as of the Distribution Date and/or the end of the Benefits Maintenance Period, as applicable, to the same extent such service was recognized and credited under the applicable Pride Plan immediately prior to the Distribution Date
or the end of the Benefits Maintenance Period, as applicable, except to the extent that duplication of benefits would result. These service crediting provisions shall be subject to any respectively applicable “service bridging,”
“break in service,” “employment date” or “eligibility date” rules under the Seahawk Plans. Nothing herein shall limit Seahawk or its Affiliates from recognizing service in addition to the recognition of service required
herein. 
 (c)   Beneficiary Designations.   Subject to SECTION 6.3 of this
Agreement, all beneficiary designations made by the Seahawk Employees under or for the Pride Plans shall be transferred to and be in full force and effect under the corresponding Seahawk Plans until such time, if ever, that any such beneficiary
designation is replaced or revoked by the Seahawk Employee who made the beneficiary designation. If no such beneficiary designations are on file, the terms of the applicable Seahawk Plan shall control. 
 (d)   Seahawk Under No Obligation to Maintain Plans.   Except as specified otherwise in this
Agreement, nothing in this Agreement shall preclude Seahawk, at any time, from amending, merging, modifying, terminating, eliminating, reducing, or otherwise altering in any respect any Seahawk Plan, any benefit under any Seahawk Plan or any trust,
insurance policy or funding vehicle related to any Seahawk Plan (to the extent permitted by law) in accordance with the applicable governing plan documents. 
 (e)   Pride’s General Obligations.   Pride shall provide, or cause to be provided, to Seahawk all participant information, forms or documents reasonably requested
by Seahawk to fulfill its obligations under this SECTION 2.1. 
 (f)   Pride Participation in
Seahawk Plans.   Unless the prior written consent of Seahawk is obtained, Pride Employees shall not participate in any Seahawk Plans. 
 SECTION 2.2   Pride Plans 
 (a)  
Seahawk’s Participation in Pride Plans.   Except as otherwise provided in this Agreement or unless the prior written consent of Pride is obtained, on and after the Distribution Date, employees of the Seahawk Group shall not
participate in any Pride Plans. 
 (b)   Pride’s General Obligations During the Benefits
Maintenance Period.   With respect to any Pride Plan or program that provided benefits to a Seahawk Employee prior to the Distribution Date, Pride shall provide certain services with respect to the Pride Plans in accordance with the
terms of the Transition Services Agreement and this Agreement. 
  

 - 5 - 

 (c)   Seahawk’s General Obligations During the Benefits
Maintenance Period.   With respect to any Pride Plan or program that provided benefits to a Seahawk Employee prior to the Distribution Date or to a Continuing Seahawk Participant during the Benefits Maintenance Period, Seahawk will
cooperate with Pride and take any actions reasonably requested by Pride on a timely basis with respect to such Pride Plans or programs, and Seahawk shall comply with the terms as set forth in such Plans or any procedures adopted pursuant thereto,
including (without limitation): (i) assisting in the administration of claims under the Pride Health and Welfare Plans, to the extent requested by the claims administrator of the applicable plan; (ii) cooperating fully with Pride Plan
auditors; (iii) the provision of payroll processing support; (iv) preserving the confidentiality of all financial arrangements Pride has or may have with any entity or individual with whom Pride has entered into an agreement relating to
said Pride Plan; and (v) preserving the confidentiality of participant information to the extent not specified otherwise in this Agreement. In addition, Seahawk shall provide, or cause to be provided, all participant information that is
necessary or appropriate or as reasonably requested by Pride for the efficient and accurate administration of each Pride Plan or program that provides benefits to a Continuing Seahawk Participant during the Benefits Maintenance Period. Pride and its
respective authorized agents shall, subject to all applicable laws, including laws of confidentiality and data protection, be given reasonable and timely access to, and may make copies of, all information relating to the subjects of this Agreement
in the custody of the other party or its agents, to the extent necessary or appropriate for the administration of said Plans or programs. 
 (d)   Reporting and Disclosing Communications to Participants.   Subject to the provisions of the Transition Services Agreement, during the Benefits Maintenance Period: (a) Pride,
solely at its own expense, shall take, or cause to be taken, all actions necessary or appropriate to accomplish the distribution of all Pride Plan-related communications and materials to Pride Employees and their beneficiaries participating in Pride
Plans and (b) Seahawk, solely at its own expense, shall take, or cause to be taken, all actions necessary or appropriate to accomplish the distribution of (i) all Pride Plan-related communications and materials to Continuing Seahawk
Participants and their spouses, dependents or beneficiaries participating in Pride Plans and (ii) all Seahawk Plan-related communications and materials to Seahawk Employees and their spouses, dependents or beneficiaries participating in Seahawk
Plans. 
 (e)   Pride Under No Obligation to Maintain Plans.   Except as specified
otherwise in this Agreement, nothing in this Agreement shall preclude Pride, at any time, from amending, merging, modifying, terminating, eliminating, reducing, or otherwise altering in any respect any Pride Plan, any benefit under any Pride Plan or
any trust, insurance policy or funding vehicle related to any Pride Plan (to the extent permitted by law) in accordance with the applicable governing plan documents. 
  

 - 6 - 

 (f)   Seahawk Obligation to Pay Own
Expenses.   Except to the extent otherwise specified herein or in the Transition Services Agreement, Seahawk shall be responsible for, and Pride shall have no liability for, any costs associated with any actions Seahawk is obligated to
take to comply with the terms and provisions of this Agreement, including, without limitation, this ARTICLE II. 
 ARTICLE III 
 DEFINED CONTRIBUTION PLANS 
 SECTION 3.1   Seahawk Qualified Plan 
 (a)   Establishment of
Plan.   Prior to the Distribution Date, Seahawk shall establish the Seahawk Qualified Plan with terms and provisions that are substantially comparable to those of the Pride Qualified Plan. Seahawk shall timely take all necessary,
reasonable or appropriate actions to ensure the Seahawk Qualified Plan’s qualification under the Section 401(a) of the Code and compliance with ERISA and any other applicable laws. 
 (b)   Continuation of Elections.   As of the Distribution Date, Seahawk (acting directly or
through its Affiliates) shall cause the Seahawk Qualified Plan to recognize and maintain all Pride Qualified Plan elections and designations including, but not limited to, deferral, investment, and payment form elections, beneficiary designations,
and the rights of alternate payees under qualified domestic relations orders with respect to Seahawk Employees, to the extent such election or designation is available under the Seahawk Qualified Plan. 
 SECTION 3.2   Spin-Off of Pride Qualified Plan Assets 
 (a)   Spin-Off of Assets.   No later than sixty (60) days following the Distribution Date
(or such time as mutually agreed by the parties), Pride shall cause the accounts (including any outstanding loan balances) in the Pride Qualified Plan attributable to Seahawk Employees and all of the assets in the Pride Qualified Plan related
thereto to be spun-off and transferred in-kind to the Seahawk Qualified Plan, and Seahawk shall cause the Seahawk Qualified Plan to accept such transfer of accounts and underlying assets and, effective as of the date of such spin-off and transfer,
to assume and to fully perform, pay and discharge, all obligations of the Pride Qualified Plan relating to the accounts of Seahawk Employees (to the extent the assets related to those accounts are actually transferred from the Pride Qualified Plan
to the Seahawk Qualified Plan) as of the date of such spin-off. The transfer of assets shall be conducted in accordance with Section 414(l) of the Code, Treasury Regulation § 1.414(l)-1, and Section 208 of ERISA.

 (b)   Contributions as of the Distribution Date.   All contributions payable to
the Pride Qualified Plan with respect to employee deferrals and contributions, matching contributions and other contributions for participants who are Seahawk Employees through the Distribution Date, determined in accordance with the terms and
provisions of the Pride Qualified Plan, ERISA and the Code, shall be paid by Pride to the Pride Qualified Plan, as applicable, prior to the date of the asset transfer described in this SECTION 3.2. 
  

 - 7 - 

 (c)   Form 5310-A. No later than thirty (30) days
prior to the Distribution Date, Pride and Seahawk (each acting directly or through their respective Affiliates) shall, to the extent necessary, file IRS Forms 5310-A regarding the spin-off and transfer of assets and liabilities from the Pride
Qualified Plan to the Seahawk Qualified Plan as contemplated under this SECTION 3.2. 
 ARTICLE IV 
 HEALTH AND WELFARE PLANS AND BENEFITS 
 SECTION 4.1   Establishment of Seahawk Health and Welfare Plans 
 Except as specified
otherwise in this Agreement, effective on or before the Distribution Date, Seahawk shall establish the Seahawk Health and Welfare Plans. The Seahawk Health and Welfare Plans in effect as of the Distribution Date shall be substantially comparable to
the Pride Plans in effect on the Distribution Date. Seahawk may modify, with prior written notice to Pride, the seniority benefit allowance made available to Seahawk Employees for purposes of offsetting the cost of welfare benefits. 
 SECTION 4.2   Seahawk Employee Participation in Pride Health and Welfare Plans 
 As of the Distribution Date, Continuing Seahawk Participants shall be eligible to continue to participate in the Pride Health and Welfare Plans in which
such Continuing Seahawk Participants participated immediately prior to the Distribution Date. Any Seahawk Employee hired or re-hired by Seahawk on or after the Distribution Date shall be eligible to participate in the Seahawk Health and Welfare
Plans and shall not be eligible to participate in the Pride Health and Welfare Plans. Continuing Seahawk Participants shall cease to be eligible to participate in Pride Health and Welfare Plans upon the expiration of the Benefits Maintenance Period,
and, except with respect to claims incurred at or prior to the end of the Benefits Maintenance Period, Pride shall have no further obligations with respect to the health and welfare benefits of Seahawk Employees after the end of the Benefits
Maintenance Period. 
 SECTION 4.3   Pride Obligations with Respect to Seahawk Employee Participation in Pride
Health and Welfare Plans 
 Pride shall continue to administer, or cause to be administered, the Pride Health and Welfare Plans in
accordance with their terms as of the Distribution Date and applicable law. During the Benefits Maintenance Period, Pride shall provide written notice to Seahawk of any amendment or termination of any Pride Health and Welfare Plan, or any material
feature thereof, including, but not limited to, any stop-loss insurance, in which Seahawk Employees participate on or after the Distribution Date, except to the extent such amendment or termination would not affect any benefits of Seahawk Employees
under such Plans. 
  

 - 8 - 

 SECTION 4.4   Paid Time Off 
 As a result of the Distribution and from and after the Distribution Date, Pride has no obligation to pay or provide any benefits in connection with any
accrued paid time off with respect to any Seahawk Employee. With respect to Pride Employees who become Seahawk Employees due to the Distribution, during the 2009 calendar year Seahawk shall administer the Seahawk paid time off policies in a manner
such that such employee’s service with Pride is deemed to be service with Seahawk. Seahawk shall credit each Seahawk Employee with the amount of accrued but unused vacation time, sick time and other time-off benefits as such Seahawk Employee
had with the Pride Group as of the Distribution Date. Notwithstanding the above, Seahawk shall not be required to credit any Seahawk Employee with any accrual to the extent that a benefit attributable to such accrual is provided by the Pride Group
(it being understood that the Pride Group shall be under no obligation to provide any such benefit). Nothing in this Agreement shall obligate Seahawk to continue, or prevent Seahawk from modifying the terms of, the Seahawk paid time off policies
after 2009. 
 SECTION 4.5   Employees on Leave 
 Subject to Pride’s agreement to provide certain administrative services as specified in the Transition Services Agreement, notwithstanding any other provision of this Agreement to the
contrary, effective as of the Distribution Date, Seahawk (acting directly or through its Affiliates) shall assume, or shall have caused the Seahawk Health and Welfare plans to assume, liability for payment of any salary continuation or short-term
disability coverage or leave under the Family & Medical Leave Act of 1993, as amended, or other leave of absence with respect to Seahawk Employees, and Pride shall have no further responsibility for such disabled employees or employees on
such leave after the Distribution Date. 
 SECTION 4.6   Retiree Medical 
 Pride and Seahawk acknowledge and agree that no Seahawk Employee is eligible for retiree medical benefits from Pride. Nothing in this Agreement shall
obligate Seahawk to establish, maintain or continue to sponsor a retiree medical benefits plan for any Seahawk Employee. 
 SECTION 4.7   Medical Reimbursement Account Plan 
 As of the Distribution Date, Seahawk Employees shall cease to
participate in the FBP. Effective prior to or as of the Distribution, Seahawk shall establish, and Seahawk Employees shall be eligible to participate in, a Seahawk Plan with terms and provisions that are substantially comparable to those of the FBP.
Pride and Seahawk agree to reconcile claims and contributions under the FBP as specified in the Transition Services Agreement. 
 SECTION 4.8   Health Insurance Portability and Accountability Act of 1996 
 On or after the Distribution Date,
Pride and Seahawk shall enter into or cause to be entered into business associate agreements providing for the confidentiality of protected health information to the extent necessary to comply with the requirements of HIPAA. 
 SECTION 4.9   Workers’ Compensation 
 Effective on and after the Distribution Date, Seahawk shall be responsible for the administration, costs and funding of workers’ compensation claims with respect to Seahawk Employees. 
  

 - 9 - 

 SECTION 4.10   COBRA 
 Subject to Pride’s agreement to provide certain administrative services as specified in the Transition Services Agreement, effective as of the
Distribution Date, Seahawk (acting directly or through its Affiliates) shall assume, or shall cause the Seahawk Health and Welfare Plans to assume, responsibility for compliance with the health care continuation coverage requirements of COBRA with
respect to eligible Seahawk Employees who were Seahawk Employees at or after the Distribution Date. Neither the Distribution nor any transfers of employment that occur as of the Distribution Date shall constitute a COBRA qualifying event for
purposes of COBRA. 
 SECTION 4.11   Claims Experience 
 The parties (acting directly or through their Affiliates) shall take any action necessary to ensure that any claims experience under the Pride Health and
Welfare Plans attributable to Continuing Seahawk Participants shall be allocated to the Seahawk Health and Welfare Plans. 
 ARTICLE V

 EQUITY AND OTHER COMPENSATION 
 SECTION 5.1   Executive and Non-Qualified Plans 
 Except as otherwise provided herein, upon
the Distribution Date, Seahawk Employees shall be considered terminated from employment for purposes of the Pride Non-Qualified Plans and such Seahawk Employees’ benefits under the Pride Non-Qualified Plans shall be governed by the terms of
said Plans. Pride shall retain all liabilities for any benefits accrued by employees of the Pride Group and the Seahawk Group under the Pride Non-Qualified Plans. 
 SECTION 5.2   Pride International, Inc. Long-Term Incentive Plans 
 (a)   No Further Equity Awards to Seahawk Employees.   Certain Seahawk Employees have been granted options, restricted stock and/or restricted stock units under the Pride International, Inc.
2007 Long-Term Incentive Plan and/or the Pride International, Inc. 1998 Long-Term Incentive Plan. No awards will be made under said Plans to Seahawk Employees after the Distribution Date. 
 (b)   Distributions on and Replacement of Unvested Pride Restricted Stock Awards.   Seahawk
Employees who hold, as of the Distribution Date, unvested Pride restricted stock awards (the “Pride RSAs”) shall receive the number of shares of Seahawk Common Stock, free of restrictions, that would have been distributed in the
Distribution on a like number of shares of Pride Common Stock covered by the Pride RSA. As of the Distribution Date but immediately after any distributions described in this SECTION 5.2(b), Seahawk Employees holding Pride RSAs will be considered
terminated from employment with Pride pursuant to the terms of the applicable Pride Plan, and such Pride RSAs shall be forfeited pursuant to the terms of the applicable award agreement and the applicable Pride Plan. Effective as soon as practicable
on or after the Distribution Date, the Seahawk Board shall replace such forfeited Pride RSAs with Seahawk restricted stock unit awards (the “Seahawk RSA Replacement Award”). The Seahawk RSA Replacement 

  

 - 10 - 

 
Award shall take into account vesting service with Pride such that the Seahawk RSA Replacement Award vests at the same time and subject to the same terms as
the forfeited Pride RSAs. The number of shares of Seahawk Common Stock subject to a Seahawk RSA Replacement Award with respect to a Pride RSA shall be equal to (x) divided by (y) where (x) is the Pride Distribution Date Value
multiplied by the number of shares of Pride Common Stock subject to the Pride RSA that are forfeited, and (y) is the Seahawk Distribution Date Value, with the resulting number of shares subject to the Seahawk RSA Replacement Award being rounded
up to the nearest whole share. Seahawk shall be responsible for the satisfaction of all tax reporting requirements in respect of the distribution of Seahawk Common Stock to a Seahawk Employee or the vesting of a Seahawk RSA Replacement Award and
shall be responsible for remitting the appropriate tax or withholding amounts to the appropriate taxing authorities in respect of the distribution and vesting of all such restricted shares. 
 (c)   Distributions on and Replacement of Unvested Pride Restricted Stock Units Granted Prior to
2009.   Seahawk Employees who hold, as of the Distribution Date, unvested Pride restricted stock unit awards granted prior to 2009 (the “Pride RSUs”) shall receive a cash payment equal to the Seahawk Distribution Date Value
of the number of shares of Seahawk Common Stock that would have been distributed in the Distribution on the number of shares of Pride Common Stock covered by the Pride RSU. As of the Distribution Date but immediately after any distributions
described in this SECTION 5.2(c), Seahawk Employees holding Pride RSUs will be considered terminated from employment with Pride pursuant to the terms of the applicable Pride Plan, and such Pride RSUs shall be forfeited pursuant to the terms of the
applicable award agreement and the applicable Pride Plan. Effective as soon as practicable on or after the Distribution Date, the Seahawk Board shall replace such forfeited Pride RSUs with Seahawk restricted stock unit awards (the “Seahawk RSU
Replacement Award”). The Seahawk RSU Replacement Award shall take into account vesting service with Pride such that the Seahawk RSU Replacement Award vests at the same time and subject to the same terms as the forfeited Pride RSUs. The number
of shares of Seahawk Common Stock subject to a Seahawk RSU Replacement Award with respect to a Pride RSU shall be equal to (x) divided by (y) where (x) is the Pride Distribution Date Value multiplied by the number of shares of Pride
Common Stock subject to the Pride RSU that are forfeited, and (y) is the Seahawk Distribution Date Value, with the resulting number of shares subject to the Seahawk RSU Replacement Award being rounded up to the nearest whole share. Seahawk
shall be responsible for the satisfaction of all tax reporting requirements in respect of the payments to a Seahawk Employee with respect to a Pride RSU or a Seahawk RSU Replacement Award or the vesting of a Seahawk RSU Replacement Award and shall
be responsible for remitting the appropriate tax or withholding amounts to the appropriate taxing authorities in respect of the payment and vesting of all such restricted stock units. 
 (d)   Replacement of Unvested Pride Restricted Stock Units Granted in 2009.   Seahawk
Employees who hold, as of the Distribution Date, unvested Pride restricted stock unit awards granted in 2009 (the “Pride 2009 RSUs”) shall not receive cash, shares or other property with respect to the Pride 2009 RSUs as a result of the
Distribution. As of the Distribution Date, Seahawk Employees holding Pride 2009 RSUs will be considered terminated from employment pursuant to the terms of the applicable Pride 

  

 - 11 - 

 
Plan, and such Pride 2009 RSUs shall be forfeited pursuant to the terms of the applicable award agreement and the applicable Pride Plan. Effective as soon as
practicable on or after the Distribution Date, the Seahawk Board shall replace such forfeited Pride 2009 RSUs with Seahawk restricted stock unit awards (the “Seahawk 2009 RSU Replacement Award”). The Seahawk 2009 RSU Replacement Award
shall take into account vesting service with Pride such that the Seahawk 2009 RSU Replacement Award vests at the same time and subject to the same terms as the forfeited Pride 2009 RSUs. The number of shares of Seahawk Common Stock subject to a
Seahawk 2009 RSU Replacement Award with respect to a Pride 2009 RSU shall be equal to the sum of (x) divided by (y) plus (z), where (x) is the Pride Distribution Date Value multiplied by the number of shares of Pride Common Stock
subject to the Pride 2009 RSU that are forfeited, (y) is the Seahawk Distribution Date Value, and (z) is the number of shares of Seahawk Common Stock that would have been distributed in the Distribution with respect to the number of shares
of Pride Common Stock covered by the Pride 2009 RSU, with the resulting number of shares subject to the Seahawk 2009 RSU Replacement Award being rounded up to the nearest whole share. Seahawk shall be responsible for the satisfaction of all tax
reporting requirements in respect of the payments to a Seahawk Employee with respect to a Seahawk 2009 RSU Replacement Award or the vesting of a Seahawk 2009 RSU Replacement Award and shall be responsible for remitting the appropriate tax or
withholding amounts to the appropriate taxing authorities in respect of the payment and vesting of all such restricted stock units. 
 (e)   Pride Stock Options.   The exercise price and number of option shares with respect to any awards of options to purchase Pride Common Stock that are outstanding on the Distribution Date
will be adjusted to reflect the Distribution as determined by the Pride Board or the appropriate committee of the Pride Board, as applicable pursuant to the terms of the applicable Pride Plan. As of the Distribution Date, Seahawk Employees holding
options granted under any Pride Plan will be considered terminated from employment, and unvested options shall be forfeited pursuant to the terms of the applicable award agreement and the applicable Pride Plan. Options that were vested as of the
Distribution Date shall remain exercisable for the period specified in the applicable award agreement and applicable Pride Plan. The parties recognize that Seahawk may, in its discretion, take action to make such equity-based award or compensation
as it deems appropriate with respect to options held by Seahawk Employees under any Pride Plan which are forfeited, cancelled or expire unexercised as a result of Seahawk Employees being considered terminated from employment with Pride under the
Pride Plans. 
 SECTION 5.3   Employee Stock Purchase Plan 
 Effective as of the Distribution Date, Seahawk Employees shall cease to be eligible to participate in the Pride International, Inc. Employee Stock
Purchase Plan. Seahawk Employee will continue contribute to the Pride International, Inc. Employee Stock Purchase Plan through the last payroll date immediately preceding the Distribution Date (or such earlier time as mutually determined by Pride
and Seahawk) and any contributions made with respect to the purchase period in which the Distribution occurs will be refunded or distributed to the Seahawk Employee in accordance with the terms of such Plan. 
  

 - 12 - 

 SECTION 5.4   Annual Bonus Plan 
 Seahawk Employees shall not be eligible to participate in the Pride Annual Incentive Plan after the Distribution Date. Seahawk acknowledges that Pride is
under no obligation to pay any bonuses to any Seahawk Employees with respect to the 2009 calendar year, and Seahawk hereby indemnifies Pride with respect to any claims against Pride made by or on behalf of a Seahawk Employee with respect bonus
compensation payable with respect to the 2009 calendar year. 
 SECTION 5.5   Deduction under
Section 83(h) of the Code 
 The deduction attributable to equity-based compensation permitted under Section 83(h) of the Code
including, without limitation, the deduction attributable to the grant of stock, the vesting of restricted stock, and the exercise of stock options shall generally be allocated to the employer as of the date the amount is includible in the
employee’s income, and the taxable income associated with the compensation shall be reported by such employer. Where the issuer or payor of such compensation is in the Pride Group or the Seahawk Group and the employer is in the other Group, the
employer will make a payment, or series of payments (including such payments reflected in intercompany accounts), to the issuer or payor equal to the amount of the corresponding tax deduction(s). 
 SECTION 5.6   SEC Registration 
 The parties mutually agree to use commercially reasonable efforts to maintain effective registration statements with the SEC with respect to the long-term incentive awards described in this ARTICLE V, to the extent
any such registration statement is required by applicable law. 
 SECTION 5.7   Section 409A

 Notwithstanding anything in this Agreement to the contrary (including the treatment of supplemental and deferred compensation plans,
outstanding long-term incentive awards and annual incentive awards as described herein), upon Seahawk’s written request to Pride, Pride and Seahawk agree to negotiate in good faith regarding the need for any treatment different from that
otherwise provided herein to comply with, to the extent permissible under applicable Law, Section 409A of the Code such that the supplemental or deferred compensation or long-term incentive award, annual incentive award or other compensation
does not cause the imposition of a tax under Section 409A of the Code. 
 ARTICLE VI 
 CERTAIN TRANSITION MATTERS 
 SECTION 6.1   Transition Services Agreement 
 On or about the date hereof, Pride and Seahawk shall enter into the
Transition Services Agreement covering the provisions of various services to be provided by Pride and its Affiliates to Seahawk. The provisions of this Agreement shall be subject to the provisions of such Transition Services Agreement and to the
extent that any provision in this Agreement is inconsistent with a provision in the Transition Services Agreement the provision in the Transition Services Agreement shall control. Nothing in this Agreement is intended to expand 

  

 - 13 - 

 
the scope of the “Services” as defined in the Transition Services Agreement, and each service contemplated to be provided hereunder shall be
subject to charges, reimbursement obligations and other terms as set forth in the Transition Services Agreement. 
 SECTION
6.2   Requests for IRS and DOL Opinions 
 Pride and Seahawk shall make such applications to regulatory agencies, including,
without limitation, the IRS and the DOL, as may be necessary or appropriate. Pride and Seahawk shall cooperate fully with one another on any issue relating to the transactions contemplated by this Agreement for which Pride and/or Seahawk elects to
seek a determination letter or private letter ruling from the IRS, an advisory opinion from the DOL or similar opinion or ruling from any other regulatory agency, domestic or foreign. 
 SECTION 6.3   Consent of Third Parties 
 If any provision of this Agreement is dependent on the consent of any third party (such as a vendor) and such consent is withheld, Pride and Seahawk shall use their commercially reasonable efforts to implement the
applicable provisions of this Agreement to the fullest extent practicable. If any provision of this Agreement cannot be implemented due to the failure of such third party to consent, Pride and Seahawk shall negotiate in good faith to implement the
provision in a mutually satisfactory manner. 
 SECTION 6.4   Tax Cooperation 
 In connection with the interpretation and administration of this Agreement, Pride and Seahawk shall take into account the agreements and policies
established pursuant to the Master Separation Agreement and the Tax Sharing Agreement. 
 SECTION 6.5   Plan
Returns 
 Plan Returns shall be filed or caused to be filed by Pride or Seahawk, as the case may be, in accordance with the principles
established in the Tax Sharing Agreement. For purposes of this SECTION 6.5, “Plan Returns” means any return, report, certificate, form or similar statement or document required to be filed with a government agency with respect to an
employee benefit plan or program, domestic or foreign. 
 ARTICLE VII 
 EMPLOYMENT-RELATED MATTERS 
 SECTION 7.1   Terms of
Seahawk Employment 
 Employees of the Seahawk Group may be required to execute a new agreement regarding confidential information and
proprietary developments in a form approved by Seahawk. In addition, nothing in this Agreement, the Master Separation Agreement, the Transition Services Agreement or the Tax Sharing Agreement should be construed to change the at-will status of any
of the employees of any member of the Pride Group or the Seahawk Group. 
  

 - 14 - 

 SECTION 7.2   Non-Termination of Employment; No Third-Party
Beneficiaries 
 No provision of this Agreement shall be construed to create any right, or accelerate entitlement, to any compensation or
benefit whatsoever on the part of any Seahawk Employee or other future, present or former employee of Pride, Seahawk, the Pride Group or the Seahawk Group under any Pride Plan or Seahawk Plan or otherwise. Without limiting the generality of the
foregoing: (a) except as otherwise provided in this Agreement or applicable provisions of the Plans, neither the Distribution nor the termination of the Participating Company status of Seahawk or any member of the Seahawk Group shall cause any
employee to be deemed to have incurred a termination of employment; and (b) except as otherwise provided in this Agreement, no transfer of employment between the Pride Group and the Seahawk Group before the Distribution Date shall be deemed a
termination of employment for any purpose hereunder. 
 ARTICLE VIII 
 GENERAL PROVISIONS 
 SECTION 8.1   Approval by Pride As
Sole Stockholder 
 Effective as of the Distribution Date, Seahawk shall have adopted the Seahawk Plans in order to provide the benefits
contemplated herein, including, without limitation, the Seahawk 2009 Long-Term Incentive Plan (the “Seahawk Stock Plan”), which shall permit the issuance of options, restricted stock, restricted stock units and other long-term incentive
awards that have material terms and conditions substantially similar to those long-term incentive awards issued under the Pride International, Inc. 2007 Long-Term Incentive Plan in respect of which Seahawk long-term incentive awards will be issued
as required under ARTICLE V. The Seahawk Stock Plan and the Seahawk Drilling, Inc. Employee Stock Purchase Plan shall be approved prior to the Distribution Date by Pride as the sole stockholder of Seahawk. 
 SECTION 8.2   Amendments 
 Prior to the Distribution Date, Pride shall amend the Pride Plans and the applicable Pride Stock Plans and award agreements as described on Schedule 8.2 hereto. 
 SECTION 8.3   Fiduciary Matters 
 The parties acknowledge that actions required to be taken pursuant to the Agreement may be subject to fiduciary duties or standards of conduct under ERISA or other applicable law. Neither party shall be deemed to be
in violation of the Agreement if it fails to comply with any provision of the Agreement based upon its good faith determination that to do so would violate such a fiduciary duty or standard. Each party shall be responsible for taking such actions as
are deemed necessary and appropriate to comply with its own fiduciary responsibilities. 
  

 - 15 - 

 SECTION 8.4   No Amendment of Plans 
 Unless explicitly designated otherwise, no provision of this Agreement is intended to be an amendment of any Pride Plan or Seahawk Plan. If a person not
entitled to enforce this Agreement brings a lawsuit or other action to enforce any provision in this Agreement as an amendment to a Plan or another agreement, plan, program or document, and that provision is construed to be such an amendment despite
not being explicitly designated as one in this Agreement, that provision shall lapse retroactively, thereby precluding it from having any amendatory effect. 
 SECTION 8.5   Effect if Separation does not Occur 
 Subject to
SECTION 8.10, if the Distribution does not occur, then all actions and events that are, under this Agreement, to be taken or occur effective prior to, as of or following the Distribution Date, or otherwise in connection with the Distribution, shall
not be taken or occur except to the extent specifically agreed by the parties and neither party shall have any liability or further obligation to the other party under this Agreement. 
 SECTION 8.6   Limitation of Liability 
 TO THE EXTENT THAT PRIDE OR ANY MEMBER OF THE PRIDE GROUP PROVIDES SERVICES UNDER THIS AGREEMENT TO SEAHAWK, AND SUCH SERVICES ARE NOT OTHERWISE ADDRESSED IN THE TRANSITION SERVICES AGREEMENT, SUCH SERVICES SHALL BE
PERFORMED WITH THE SAME GENERAL DEGREE OF CARE AS WHEN PERFORMED WITHIN THE PRIDE ORGANIZATION. SEAHAWK HEREBY EXPRESSLY WAIVES ANY RIGHT SEAHAWK MAY OTHERWISE HAVE FOR ANY LOSSES, TO ENFORCE SPECIFIC PERFORMANCE OR TO PURSUE ANY OTHER REMEDY
AVAILABLE IN CONTRACT, AT LAW, OR IN EQUITY IN THE EVENT OF ANY NON-PERFORMANCE, INADEQUATE PERFORMANCE, FAULTY PERFORMANCE OR OTHER FAILURE OR BREACH BY PRIDE OR ANY MEMBER OF THE PRIDE GROUP UNDER OR RELATING TO THIS AGREEMENT, NOTWITHSTANDING THE
NEGLIGENCE (WHETHER SOLE, JOINT OR CONCURRENT OR ACTIVE OR PASSIVE) OF PRIDE OR ANY MEMBER OF THE PRIDE GROUP OR ANY OTHER PERSON OR ENTITY INVOLVED IN THE PROVISION OF SERVICES AND WHETHER DAMAGES ARE ASSERTED IN CONTRACT OR TORT, UNDER FEDERAL,
STATE OR FOREIGN LAWS OR OTHER STATUTE OR OTHERWISE; PROVIDED, HOWEVER, THAT THE FOREGOING WAIVER SHALL NOT EXTEND TO COVER, AND PRIDE SHALL BE RESPONSIBLE FOR, SUCH LOSSES CAUSED BY GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF PRIDE, ANY MEMBER OF THE
PRIDE GROUP OR ANY THIRD PARTY SERVICE PROVIDER HEREUNDER. 
 SECTION 8.7   Relationship of Parties

 Nothing in this Agreement shall be deemed or construed by the parties or any third party as creating a fiduciary relationship, a
relationship of principal and agent, partnership or joint venture between the parties, the understanding and agreement being that no provision contained herein, and no act of the parties, shall be deemed to create any relationship between the
parties 

  

 - 16 - 

 
other than the relationship set forth herein. This Agreement shall be binding upon and inure solely to the benefit of and be enforceable by each party and
its respective successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to or shall confer upon any other person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 SECTION 8.8   Incorporation of Master Separation Agreement Provisions 
 If a dispute, claim or controversy results from or arises out of or in connection with this Agreement, the parties agree to use the procedures set forth
in Article V of the Master Separation Agreement in lieu of other available remedies, to resolve same. The provisions of Sections 7.1 (Limitation of Liability) and Section 7.5 (Notices) of the Master Separation Agreement are hereby
incorporated herein by reference, and unless otherwise expressly specified herein, such provisions shall apply as if fully set forth herein (references in this SECTION 8.8 to an “Article” or a “Section” shall mean Articles or
Sections of the Master Separation Agreement, and, except as expressly set forth herein, references in the material incorporated herein by reference shall be references to the Master Separation Agreement). 
 SECTION 8.9   Governing Law 
 To the extent not preempted by applicable federal law, this Agreement shall be governed by, construed and interpreted in accordance with the laws of the State of Texas, irrespective of the choice of law principles of
the State of Texas, as to all matters, including matters of validity, construction, effect, performance and remedies. 
 SECTION 8.10  Severability 
 If any term or other provision of this Agreement or the application thereof to any Person
or circumstances is determined by a court of competent jurisdiction to be invalid, illegal, void or unenforceable under any rule of law or public policy, all other terms and provisions of this Agreement, or application of such provision to Persons
or circumstances other than those as to which it has been held invalid, void, illegal or unenforceable, shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not
affected in any manner materially adverse to either party. Upon such determination that any term or other provision is invalid, illegal, void or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the parties as closely as possible and in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the fullest possible extent. 
 SECTION 8.11  Amendment 
 Pride and Seahawk may mutually agree to amend, modify or supplement the provisions of this Agreement at any time or times, either prospectively or retroactively, to such extent and in such manner as the Boards
mutually deem advisable. Each Board may delegate its amendment power, in whole or in part, to one or more Persons or committees as it deems advisable. 
  

 - 17 - 

 SECTION 8.12  Assignment 
 Neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned, in whole or in part, directly or indirectly, by a party
without the prior written consent of the other party, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void, except that a party may at any time assign any or all of its rights or
obligations hereunder to one of its wholly owned subsidiaries (but no such assignment shall relieve such party of any of its obligations under this Agreement). 
 SECTION 8.13  No Strict Construction; Cooperation of the Parties 
 The
language this Agreement uses shall be deemed to be the language the parties hereto have chosen to reflect their mutual intent, and no rule of strict construction or presumption based upon the party that has drafted this Agreement shall be applied
against any party hereto. The parties acknowledge that the names used for Plans under this Agreement may not be the sole name designated for such Plans, but the parties acknowledge and agree to recognize the Plans under the names used herein. To the
extent that issues arise related to the subject matter hereof that are not specifically addressed by this Agreement, the parties will cooperate to address such issues in the same manner and using the same principles provided in this Agreement.

 SECTION 8.14  Termination 
 This Agreement may be terminated at any time prior to the Distribution Date by Pride in its sole discretion (without the approval of Seahawk). This Agreement may be terminated at any time after the Distribution Date
by mutual consent of Pride and Seahawk. In the event of termination pursuant to this SECTION 8.14, no party shall have any liability of any kind under this Agreement to the other party. 
 SECTION 8.15  Conflict 
 In the event of any conflict between the provisions of this Agreement and the Master Separation Agreement or any Plan, the provisions of this Agreement shall control. In the event of any conflict between the provisions of this Agreement and
the Transition Services Agreement, the provisions of this Agreement shall control. 
 SECTION 8.16  Counterparts

 This Agreement may be executed in two or more counterparts each of which shall be deemed to be an original, but all of which together
shall constitute but one and the same Agreement. 
 SECTION 8.17  Successor Employer 
 The parties agree that Seahawk shall be treated as a successor employer with respect to each Seahawk Employee in the calendar year that contains the
Distribution Date, and, in connection with the foregoing, the parties agree to follow the “Alternative Procedures” set forth in Section 5 of Revenue Procedure 2004-53 with respect to Form W-2 reporting obligations and social security,
unemployment and other U.S. payroll taxes. The parties understand and agree that Seahawk, as the successor employer, shall assume the entire Form W-2 reporting obligations for 

  

 - 18 - 

 
such Seahawk Employees for the calendar year that contains the Effective Date. Pride shall provide all information required by Seahawk in order for Seahawk
to complete its Form W-2 reporting obligations. Seahawk agrees to indemnify Pride with respect to any liabilities, costs and expenses incurred by Pride that are directly related to the treatment of Seahawk as a successor employer for the Seahawk
Employees, including without limitation the Form W-2 reporting obligations. 
  

 - 19 - 

 IN WITNESS WHEREOF, each of the parties has caused this Employee Matters Agreement to be
executed on its behalf by its officers thereunto duly authorized on the day and year first above written. 
  

			
	PRIDE INTERNATIONAL, INC.
		
	By:	 	 /s/ Brian C. Voegele

	Name:	 	Brian C. Voegele
	Title:	 	Senior Vice President and Chief Financial Officer
	
	SEAHAWK DRILLING, INC.
		
	By:	 	 /s/ Randall D. Stilley

	Name:	 	Randall D. Stilley
	Title:	 	President and Chief Executive Officer

  

 - 20 - 

 Schedule 1 
 Pride Health and Welfare Plans 
  

					
	 U.S. Employee Benefit
  
	  	 Plan Name

 
	  	 Provider / Vendor
  

	 Self-funded Medical, Dental
	  	 Pride International,
Inc.
 Group Health & Dental Plan
  
	  	 UMR

	 Stop Loss Coverage (applicable
 only to medical benefits)
	  	 Pride International,
Inc.
 Group Health & Dental Plan
  
	  	 Symetra

	 Pharmacy Benefit Manager
	  	 Pride International,
Inc.
 Group Health & Dental Plan
  
	  	 CVS/Caremark

	 Long Term Disability
	  	 Pride International,
Inc.
 Long Term Disability Plan
  
	  	 MetLife

	 Short Term Disability
	  	 Pride International,
Inc.
 Short Term Disability Plan
  
	  	 MetLife

	 Life, Accidental Death & Dismemberment (AD&D), and Disability
	  	 Pride International, Inc. Life

 and Accidental Death &
 Dismemberment Insurance Plan
  
	  	 MetLife

	 Vision Coverage
	  	 Pride International,
Inc.
 Group Health & Dental Plan
  
	  	 Superior Vision

	 Employee Assistance Program
	  	 Pride International,
Inc.
 Group Health & Dental Plan
  
	  	 United Behavioral Health

	 Business Travel Accident
	  	 Pride International,
Inc.
 Business Travel Accident Plan
  
	  	 CIGNA

	 Life, Accidental Death (Personal & Work-Related)1
	  	 Pride International, Inc. Life

 and Accidental Death & Dismemberment Insurance Plan
  
	  	 Mobility Benefits - Previnter

  
  
 1
Former International Technical Services LLC (ITS) employees only. 
  

 - 21 - 

					
	 Non-U.S. Employee Benefit
  
	  	 Plan Name

 
	  	 Provider
  

	 Medical,
Dental & Vision
 (including prescription coverage
 and employee assistance
 program) (Personal & Work-Related)
  
	  	 Pride International, Inc.
 Group Health & Dental Plan
	  	Mobility Benefits – Previnter
	 Life,
Accidental Death (Personal
 & Work-Related)
	  	 Pride International, Inc.
 Life and Accidental Death
 & Dismemberment
Insurance Plan
  
	  	 
	 Short-Term
Disability (Personal
 & Work-Related)
	  	 Pride International, Inc.
 Short Term Disability Plan
  
	  	 
	 Long-Term
Disability (Personal
 & Work-Related)
	  	 Pride International, Inc.
 Long Term Disability Plan
  
	  	 
	 Business Travel Accident
	  	 Pride International, Inc.
 Business Travel Accident Plan
  
	  	 CIGNA

	 Savings
	  	 Investment Savings Plan (ISP)
  
	  	Legal & General Bank

  

 - 22 - 

 Schedule 8.2 
 Amendments 
 1.   The Pride International, Inc. Welfare Group Welfare Benefits Plan
will be amended to provide that Continuing Seahawk Participants continue to participate in the plan during the Benefits Maintenance Period. Pride’s Board of Directors approved the amendment on August 4, 2009. 
 2.   Pride’s Board of Directors and the Compensation Committee of the Board of Directors approved, on August 4, 2009 as a result of
the Distribution, the adjustment of the terms of outstanding options to purchase Pride common stock, and will take or have authorized the appropriate officers of Pride to take appropriate action to accomplish the adjustment. 
 3.   The Compensation Committee of Pride’s Board of Directors approved, on August 4, 2009 as a result of the Distribution, the
distribution of Seahawk common stock with respect to restricted Pride common stock, and will take or has authorized the appropriate officers of Pride to take appropriate action to accomplish the distribution. 
 4.   The Compensation Committee of Pride’s Board of Directors approved, on August 4, 2009 as a result of the Distribution, the
distribution of cash with respect to Pride restricted stock units granted prior to 2009, and will take or has authorized the appropriate officers of Pride to take appropriate action to accomplish the distribution. 
 5.   The Distribution will cause Seahawk Employees to no longer be employed by Pride, and, pursuant to the terms of the Pride Qualified Plan,
such Seahawk Employees shall no longer be eligible to defer compensation under the Pride Qualified Plan. On May 22, 2009, Pride’s Board of Directors approved the transfer after the Distribution of the portion of the Pride Qualified Plan
assets, including outstanding loans, representing the accounts of Seahawk Employees to the newly established Seahawk Qualified Plan, and will take or has authorized the appropriate officers of Pride to take appropriate action to accomplish such
transfer.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]