Document:

ne-ex1051_1003.htm

Exhibit 10.51

 

NOBLE CORPORATION

2016 Short-Term Incentive Plan (“STIP”)

Plan Overview, Terms and Conditions

Plan Purpose

The success of Noble Corporation (“Noble”) and its subsidiaries (collectively, the “Company”) is a result of the efforts of all key employees.  In order to focus each employee’s efforts on optimizing the Company’s overall operational and financial results, the Company maintains this Short Term Incentive Plan (the “Plan”) to reward employees for successful achievement of specific goals. 

An effective incentive plan should both align employee interests with those of shareholders and motivate and influence employee behavior.  Key positions within the Company have the ability to make a positive contribution to key factors that increase shareholder value.  These factors can be quantified and measured through achievement of various financial and operational targets.  The objectives of using such targets in the formulation of the specific Company goals are to link an employee’s annual incentive award more closely to the metrics that lead to the creation of shareholder wealth and to promote a culture of high performance and an environment of teamwork.

Eligibility and Participation 

All full-time shore-based employees and select offshore employees (Rig Managers, Assistant Rig Managers and Captains) are eligible to receive a bonus under the Plan, based upon performance, subject to the approval of the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of Noble.   Each such employee will be considered either a “Corporate” employee or an “Operations” employee for purposes of determining the employee’s target bonus, as described later.  

To be eligible to receive a bonus payment with respect to a Plan year, an employee must be actively employed by the Company on the last day of such Plan year and must continue to be employed through the date on which bonus payments for such Plan year are made.  An employee shall not be eligible to receive any bonus payment if the employee’s employment with the Company terminates for any reason, either voluntarily or involuntarily (except as noted below), before that date on which bonus payments for a Plan year are made.   The Plan year is also the calendar year unless otherwise specified.  

However, in the event of death, disability or retirement, the employee or estate of the former employee may receive a pro-rated payment from the Plan, at the discretion of the Committee and the Chief Executive Officer (the “CEO”).   For purposes of the Plan, “disability” means any termination of employment with the Company or an affiliate of the Company because of a long-term or total disability, as determined by the Company’s disability insurance programs. “Retirement” means a termination of employment with the Company on a voluntary basis by a person if, immediately prior to such termination of employment, the sum of the age and the number of years of continuous service of such person with the Company is equal to or greater than 60.

Plan Funding

The Award Pool for 2016 will primarily be a function of the Company’s performance on key metrics to include:

	
·
	
Company EBITDA versus budget (weighted 50%)

	
·
	
Company Contract Drilling Margin, less General and Administrative Expenses (“G&A”), versus the Driller Peer Group (weighted 15%)

	
·
	
Company Safety results (weighted 25%)

	
·
	
Environmental Compliance Plan (weighted 10%)

See Exhibit 1 for details on the Company’s performance measures.  Generally, each goal is structured to include a Threshold, Target and Maximum level of achievement.  The Threshold is the minimum level of achievement.  If Performance is below Threshold for a goal, it will yield no pool funding associated with that goal.  

The Award Pool available will be determined first by multiplying the sum of the target bonuses for all eligible employees at the end of the year (“Aggregate Target Bonuses”) by the Company’s weighted performance as measured by the results of the key metrics.  This calculated result will be increased by 10% to establish a CEO Merit Performance Pool, thus yielding the Total Plan Award Pool for the year.  See Exhibit 2 for an example illustrating the calculation of the Total Plan Award Pool. 

The Total Plan Award Pool will be allocated as described in the next sections.  

Individual Target Bonus

The target bonus for an employee is an amount equal to the employee’s salary at the end of the Plan year multiplied by the assigned target bonus percentage. Target bonuses range from 4% to 110% of salary. The assigned targets are based on competitive market data and internal equity considerations and are reviewed each year. Note that, for purposes of calculating the Aggregate Target Bonuses, a target bonus percentage of up to 6% will be used for those employees covered under the Plan that do not have a formal target bonus percentage.

The determination of an individual’s actual award will be based 50% on the achievement of the stated Financial and Operating goals under the Plan pursuant to the terms outlined in sections below, and 50% will be based on merit, individual and team performance and/or additional selected criteria, including regulatory compliance.      

Financial and Operating Goals

Goals for the following categories will be approved by the Committee for each Plan year.  The performance for the 50% of the bonus tied to Financial and Operating results will be based on the goals and weights as shown below, and are different for Corporate and Operations employees:

 

					
	

Goal Weighting Schedule

	
Goal
	
 
	
Corporate
	
 
	
Operations

	
Company EBITDA
	
 
	
50%
	
 
	
--

	
Region Cash Operating Margin
	
 
	
--
	
 
	
50%

	
Company Contract Drilling Margin, less G&A
	
 
	
15%
	
 
	
15%

	
Company Safety
	
 
	
25%
	
 
	
12.5%

	
Region Safety
	
 
	
--
	
 
	
12.5%

	
Environmental Compliance Plan
	
 
	
10%
	
 
	
10%

 

The performance scales for 2016 for these metrics are provided in Exhibit 1.

In administering the Plan and reviewing the calculation of the financial and operating goals, the Committee may take into consideration the effect of any unusual, non-recurring or extraordinary item or event that impacts the Company or any member of the Driller Peer Group during the year, including, but not limited to, acquisitions, divestitures or impairments.  Furthermore, the Committee may make adjustments to the calculation of any of the financial and operating goals so that any such unusual, non-recurring or extraordinary item or event does not distort or adversely affect the calculation of the financial and operating goals.

Determination of Individual Awards

Each target bonus will be adjusted by the overall Corporate and/or Operations Financial and Operating results depending on the employee (see Exhibit 1).  This will be the Adjusted Target Bonus.

Next, an individual bonus multiplier ranging from 0 to a maximum of 2.0 may be applied to half of the Adjusted Target Bonus to reflect merit, individual and team performance and/or additional selected criteria, including regulatory compliance, subject to the approval of the Committee and CEO.  

For example, if an individual’s bonus target is $10,000, and the performance multiple for Financial and Operating goals is 1.2, the Adjusted Target Bonus would be $12,000 ($10,000 x 1.2); $6,000 for Financial and Operating performance, $6,000 for individual achievement.  If the manager’s recommendation for individual achievement is 0.8 (or 80%), the final bonus adjusts to $10,800 ($6,000 x 0.8 = $4,800 for individual achievement + $6,000 for Financial and Operating results).  The cumulative total of these awards for all employees will be the “Aggregate Calculated Pool”.    

Amounts may be adjusted for employees hired or promoted during the Plan year considering length of service or time in position.  Note that if on a cumulative basis the sum of the awards in 

the Aggregate Calculated Pool is greater than the Total Plan Award Pool, bonuses will be adjusted on a pro-rata basis to remain within the constraints of the Total Plan Award Pool.

Review and Approval

The Board will approve the Company’s budget for the year in terms of EBITDA and Cash Operating Margin for each region, relative performance scale for contract drilling margin, less G&A, relative safety achievement, and environmental compliance goals (and associated payouts for each) no later than March 31st of the year.

If, after the establishment of goals for a Plan year, the budget changes substantially due to subsequent events, such as the acquisition, spin-off or sale of assets, any unusual or non-recurring item or any unforeseen event that impacts the Company, a region or the industry as a whole, then the Committee may make adjustments to the respective goals in order that the affected participants may not be adversely impacted by such an event or item.  Any such revised goals shall be applicable to the Plan year from and after the time of their approval.

After the end of each Plan year, the Committee, in its best business judgment, will make the final determination on the size of the Total Plan Award Pool for such Plan year.  All bonus calculations, allocations and recommendations are subject to review and approval by the Committee.  

Separately, managers having responsibility for recommending the allocation of bonuses to eligible employees shall submit their recommended bonus for each employee to the Executive Vice President and the CEO for review and approval.  Notwithstanding anything otherwise contained in this Plan, the Committee and the CEO (and any delegated designee of the CEO) shall have the authority to adjust individual bonus amounts as deemed to be appropriate for any reason, including, but not limited to, Company or region performance, individual employee performance, employee conduct, etc. 

At-Will Employment

Nothing in the Plan guarantees or constitutes a contract for any specific term of employment or otherwise limits the Company’s or an employee’s right to terminate the employment relationship for any reason at any time.Exhibit

 EXHIBIT 10.19
 
 
AMENDMENT NO. 3
TO
SECOND AMENDED AND RESTATED
AGREEMENT OF LIMITED PARTNERSHIP
OF
PARKWAY PROPERTIES LP

THIS AMENDMENT NO. 3 TO THE SECOND AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP (“Amendment No. 3”), dated as of December 31, 2015, is entered into by and between Parkway Properties, Inc., a Maryland corporation (the “Company”), and Parkway Properties General Partners, Inc. (the “General Partner”), a Delaware corporation, and amends that certain Second Amended and Restated Agreement of Limited Partnership of Parkway Properties LP (the “Partnership”), a Delaware limited partnership, dated February 27, 2013, as amended (the “Partnership Agreement”). 

WHEREAS, pursuant to the terms of Section 7.3 of the Partnership Agreement, the General Partner, in its capacity as general partner of the Partnership, and the Company, as the holder of a Majority in Interest of the Limited Partners, wish to amend the Partnership Agreement on the terms as set forth herein.

NOW, THEREFORE, BE IT RESOLVED, that for good and adequate consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows:

Section 1    AMENDMENTS

The Partnership Agreement shall be amended by deleting existing Exhibit A thereto and replacing such exhibit with new Exhibit A attached hereto.

Section 2    NO OTHER CHANGES

Except as expressly amended hereby, the Partnership Agreement shall in all respects continue in full force and effect and the General Partner and the Company ratify and confirm that they continue to be bound by the terms and conditions thereof.

Section 3    APPLICABLE LAW

This Amendment No. 3 shall be construed in accordance with and governed by the laws of the State of Delaware, without regard to the principles of conflicts of law.

Section 4    CAPITALIZED TERMS 

All capitalized terms used in this Amendment No. 3 and not otherwise defined herein shall have the meanings assigned to such terms in the Partnership Agreement.

[signature page follows]

IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 3 to the Second Amended and Restated Partnership Agreement of Parkway Properties LP as of the date first written above.

THE GENERAL PARTNER:

PARKWAY PROPERTIES GENERAL PARTNERS, INC. 

By:    s/ David O'Reilly                                                       
Name:    David O’Reilly
Title:    Executive Vice President and
Chief Financial Officer

By:    s/ Jeremy Dorsett                                                       
Name:    Jeremy Dorsett
Title:     Executive Vice President, 
General Counsel and Secretary

THE COMPANY:

PARKWAY PROPERTIES, INC.

By:    s/ David O'Reilly                                                       
Name:    David O’Reilly
Title:    Executive Vice President and
Chief Financial Officer

By:    s/ Jeremy Dorsett                                                       
Name:    Jeremy Dorsett
Title:     Executive Vice President, 
General Counsel and Secretary

[Signature page to Amendment No. 3 to Parkway Properties LP Second Amended and Restated Agreement of Limited Partnership]

Exhibit A

PARKWAY PROPERTIES LP 
EXHIBIT A 
 
	
					
	Partner
	  
	Partnership
	  
	Certificate Number
(If Applicable)

	Parkway Properties, Inc. (the “Company”)1
	 
	111,631,153 Common Limited Partnership Units2
	 
	N/A

	Jeffrey N. Meltzer3
	 
	659 Common Limited Partnership Units
	 
	N/A

	John A. Meltzer3
	 
	659 Common Limited Partnership Units
	 
	N/A

	Andrew Silverman4
	 
	223,635 Common Limited Partnership Units
	 
	013

	Andrew Silverman4
	 
	53,565 Common Limited Partnership Units
	 
	014

	Alexander D. Silverman4
	 
	223,635 Common Limited Partnership Units
	 
	015

	Alexander D. Silverman4
	 
	53,565 Common Limited Partnership Units
	 
	016

	Parkway Properties General Partners, Inc.5
	 
	110,958 Class A General Partnership Units
	 
	N/A

	Maguire Thomas Partners - Philadelphia, Ltd.6
	 
	1,343,263 Common Limited Partnership Units
	 
	N/A

	Thomas Investment Partners, Ltd.6
	 
	1,224,859 Common Limited Partnership Units
	 
	N/A

	Maguire Thomas Partners - Commerce Square II, Ltd.6
	 
	882,290 Common Limited Partnership Units
	 
	N/A

	The Lumbee Clan Trust6
	 
	708,147 Common Limited Partnership Units
	 
	N/A

	Thomas Master Investments, LLC6
	 
	2,235 Common Limited Partnership Units
	 
	N/A

	Thomas Partners, Inc.6
	 
	52,310 Common Limited Partnership Units
	 
	N/A

	Diana Laing6
	 
	44,564 Common Limited Partnership Units
	 
	N/A

	Paul Rutter
	 
	14,332 Common Limited Partnership Units
	 
	N/A

	Thomas S. Ricci6
	 
	5,096 Common Limited Partnership Units
	 
	N/A

________________________ 
	
		
	1
	Capital Contribution consists of $9,900 plus those properties and cash contributed subsequent to the Effective Date. 

	2
	Adjusted from time to time to take into account redemptions and issuances of stock by the Company and the corresponding unit issuances and redemptions by the Partnership. 

	3
	Capital Contribution consists of 47.5% General Partnership Interest in and to the 111 Capitol Building Limited Partnership to Parkway Jackson LLC (a limited liability company which is wholly owned by the Limited Partnership). 

	4 
	Capital Contribution consists of 100% membership interest in PKY Lincoln Place LLC, a Delaware limited liability company, as the owner of Lincoln Place, 1601 Washington Avenue, Miami Beach, Florida, as assigned to PKY Lincoln Place Holdings, LLC (a limited liability company which is wholly owned by the Limited Partnership).

	5
	Capital Contribution consists of $100 plus those properties contributed subsequent to the Effective Date.

	6
	Capital Contribution consists of the operating partnership units of Thomas Properties Group, LP that were exchanged for Common Limited Partnership Units in connection with the mergers pursuant to that certain agreement and plan of merger between Parkway Properties, Inc., the Partnership, PKY Masters LP, Thomas Properties Group, Inc. and Thomas Properties Group, L.P. dated September 4, 2013.

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