Document:

Covidien Severance Plan for U.S. Officers and Executives

 Exhibit 10.1 

COVIDIEN 

SEVERANCE PLAN FOR U.S. OFFICERS AND EXECUTIVES 

As Amended and Restated Effective January 1, 2010 

 TABLE OF CONTENTS 

 

							
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	ARTICLE I            PURPOSE, INTENT AND TERM OF PLAN	  	  1
		 	Section 1.01	  	Purpose and Intent of the Plan	  	  1
		 	Section 1.02	  	Term of the Plan	  	  1
		 	Section 1.03	  	Adoption of the Plan	  	  1
		
	ARTICLE II           DEFINITIONS	  	  2
		 	Section 2.01	  	“Alternative Position”	  	  2
		 	Section 2.02	  	“Annual Bonus”	  	  2
		 	Section 2.03	  	“Base Salary”	  	  2
		 	Section 2.04	  	“Board”	  	  2
		 	Section 2.05	  	“Cause”	  	  2
		 	Section 2.06	  	“COBRA”	  	  2
		 	Section 2.07	  	“Code”	  	  2
		 	Section 2.08	  	“Committee”	  	  2
		 	Section 2.09	  	“Company”	  	  3
		 	Section 2.10	  	“Effective Date”	  	  3
		 	Section 2.11	  	“Eligible Employee”	  	  3
		 	Section 2.12	  	“Employee”	  	  3
		 	Section 2.13	  	“Employer”	  	  3
		 	Section 2.14	  	“ERISA”	  	  3
		 	Section 2.15	  	“Exchange Act”	  	  3
		 	Section 2.16	  	“Involuntary Termination”	  	  3
		 	Section 2.17	  	“Key Employee”	  	  3
		 	Section 2.18	  	“Notice Pay”	  	  3
		 	Section 2.19	  	“Officer”	  	  3
		 	Section 2.20	  	“Participant”	  	  4
		 	Section 2.21	  	“Permanent Disability”	  	  4
		 	Section 2.22	  	“Plan”	  	  4
		 	Section 2.23	  	“Plan Administrator”	  	  4
		 	Section 2.24	  	“Postponement Period”	  	  4
		 	Section 2.25	  	“Release”	  	  4

  

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		 	Section 2.26	  	“Salary Continuation Benefits”	  	  4
		 	Section 2.27	  	“Separation from Service”	  	  4
		 	Section 2.28	  	“Separation from Service Date”	  	  4
		 	Section 2.29	  	“Severance Benefits”	  	  4
		 	Section 2.30	  	“Severance Period”	  	  4
		 	Section 2.31	  	“Subsidiary”	  	  5
		 	Section 2.32	  	“Voluntary Termination”	  	  5
		
	ARTICLE III        PARTICIPATION AND ELIGIBILITY FOR BENEFITS	  	  6
		 	Section 3.01	  	Participation	  	  6
		 	Section 3.02	  	Conditions	  	  6
		
	ARTICLE IV        DETERMINATION OF SEVERANCE BENEFITS	  	  8
		 	Section 4.01	  	Amount of Severance Benefits Upon Involuntary Termination	  	  8
		 	Section 4.02	  	Voluntary Termination; Termination for Death or Permanent Disability	  	10
		 	Section 4.03	  	Termination for Cause	  	10
		 	Section 4.04	  	Reduction of Severance Benefits	  	10
		
	ARTICLE V          METHOD AND DURATION OF SEVERANCE BENEFIT PAYMENTS	  	11
		 	Section 5.01	  	Method of Payment	  	11
		 	Section 5.02	  	Other Arrangements	  	11
		 	Section 5.03	  	Code Section 409A	  	11
		 	Section 5.04	  	Termination of Eligibility for Benefits	  	12
		
	ARTICLE VI        CONFIDENTIALITY, COVENANT NOT TO COMPETE AND NOT TO SOLICIT	  	13
		 	Section 6.01	  	Confidential Information	  	13
		 	Section 6.02	  	Non-Competition	  	13
		 	Section 6.03	  	Non-Solicitation	  	13
		 	Section 6.04	  	Non-Disparagement	  	14
		 	Section 6.05	  	Reasonableness	  	14
		 	Section 6.06	  	Equitable Relief	  	14
		 	Section 6.07	  	Survival of Provisions	  	15
		
	ARTICLE VII       THE PLAN ADMINISTRATOR	  	16

  

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		 	Section 7.01	  	Authority and Duties	  	16
		 	Section 7.02	  	Compensation of the Plan Administrator	  	16
		 	Section 7.03	  	Records, Reporting and Disclosure	  	16
		
	ARTICLE VIII       AMENDMENT, TERMINATION AND DURATION	  	17
		 	Section 8.01	  	Amendment, Suspension and Termination	  	17
		 	Section 8.02	  	Duration	  	17
		
	ARTICLE IX          DUTIES OF THE COMPANY AND THE COMMITTEE	  	18
		 	Section 9.01	  	Records	  	18
		 	Section 9.02	  	Payment	  	18
		 	Section 9.03	  	Discretion	  	18
		
	ARTICLE X            CLAIMS PROCEDURES	  	19
		 	Section 10.01	  	Claim	  	19
		 	Section 10.02	  	Initial Claim	  	19
		 	Section 10.03	  	Appeals of Denied Administrative Claims	  	19
		 	Section 10.04	  	Appointment of the Named Appeals Fiduciary	  	20
		 	Section 10.05	  	Arbitration; Expenses	  	20
		
	ARTICLE XI            MISCELLANEOUS	  	21
		 	Section 11.01	  	Nonalienation of Benefits	  	21
		 	Section 11.02	  	Notices	  	21
		 	Section 11.03	  	Successors	  	21
		 	Section 11.04	  	Other Payments	  	21
		 	Section 11.05	  	No Mitigation	  	21
		 	Section 11.06	  	No Contract of Employment	  	21
		 	Section 11.07	  	Severability of Provisions	  	21
		 	Section 11.08	  	Heirs, Assigns, and Personal Representatives	  	22
		 	Section 11.09	  	Headings and Captions	  	22
		 	Section 11.10	  	Gender and Number	  	22
		 	Section 11.11	  	Unfunded Plan	  	22
		 	Section 11.12	  	Payments to Incompetent Persons	  	22
		 	Section 11.13	  	Lost Payees	  	22
		 	Section 11.14	  	Controlling Law	  	22

  

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		 	Appendix	  	SALARY CONTINUATION AND BONUS PAYMENT SCHEDULE	  	A-1

  

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 ARTICLE I 

PURPOSE, INTENT AND TERM OF PLAN 

Section 1.01 Purpose and Intent of the Plan. The purpose of the Plan is to provide Eligible Employees with certain
compensation and benefits in the event that such Employee’s employment with the Company or a Subsidiary is terminated involuntarily. The Plan is not intended to be an “employee pension benefit plan” or “pension plan” within
the meaning of Section 3(2) of ERISA. Rather, the Plan is intended to be a “welfare benefit plan” within the meaning of Section 3(1) of ERISA and to meet the requirements of a “severance pay plan” within the meaning of
regulations published by the Secretary of Labor at Title 29, Code of Federal Regulations, Section 2510.3-2(b). Accordingly, no employee shall have a vested right to benefits paid by the Plan. The terms of the Plan are intended to, and
shall be interpreted so as to, comply in all respects with the provisions of Code Section 409A and the regulations and rulings promulgated thereunder and, if necessary, any provision shall be held null and void to the extent such provision (or
any part thereof) fails to comply with Code Section 409A or the regulations or rulings promulgated thereunder. 

Section 1.02 Term of the Plan. The Plan, as amended and restated, shall generally be effective as of the Effective
Date and shall supersede any prior plan, program or policy under which the Company or any Subsidiary provided severance benefits prior to the Effective Date of the Plan. The Plan shall continue until terminated pursuant to Article VIII of the Plan.

 Section 1.03 Adoption of the Plan. The Plan was adopted by the Board of Directors of Covidien Ltd. on
June 30, 2007. The Board of Directors of Covidien Ltd., by action of its Compensation and Human Resources Committee on November 20, 2008, amended and restated the Plan and provided for the transfer of sponsorship of the Plan to Tyco
Healthcare Group LP, and Tyco Healthcare Group LP agreed to accept such transfer of sponsorship. The Board of Directors of Covidien plc, by action of its Compensation and Human Resources Committee on March 16, 2010, amended and restated the
Plan. 

 ARTICLE II 

DEFINITIONS 

Section 2.01 “Alternative Position” shall mean a position with the Company that: 

(a) is not more than 50 miles each way from the location of the Employee’s current position (for positions that are essentially
mobile, the mileage does not apply); and 
 (b) provides the Employee with pay and benefits (not including perquisites or
long-term incentive compensation) that are comparable in the aggregate to the Employee’s current position. 
 The Plan
Administrator has the exclusive discretionary authority to determine whether a position is an Alternative Position. 

Section 2.02 “Annual Bonus” shall mean the average of the actual bonuses paid to the respective Participant
pursuant to The Covidien Annual Incentive Plan that are attributable to the three Company fiscal years that immediately precede the Participant’s Separation from Service Date. 

Section 2.03 “Base Salary” shall mean the Participant’s annual base salary in effect as of the
Participant’s Separation from Service Date. 
 Section 2.04 “Board” shall mean the Board of
Directors of Covidien plc. 
 Section 2.05 “Cause” shall mean an Employee’s
(i) substantial failure or refusal to perform duties and responsibilities of his or her job as required by the Company, (ii) violation of any fiduciary duty owed to the Company, (iii) conviction of a felony or misdemeanor,
(iv) dishonesty, (v) theft, (vi) violation of Company rules or policy, or (vii) other egregious conduct, that has or could have a serious and detrimental impact on the Company and its employees. The Plan Administrator, in its
sole and absolute discretion, shall determine Cause. Examples of “Cause” may include, but are not limited to, excessive absenteeism, misconduct, insubordination, violation of Company policy, dishonesty, and deliberate unsatisfactory
performance (e.g., Employee refuses to improve deficient performance). 
 Section 2.06 “COBRA”
shall mean the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and the regulations promulgated thereunder. 

Section 2.07 “Code” shall mean the Internal Revenue Code of 1986, as amended, and the regulations
promulgated thereunder. 
 Section 2.08 “Committee” shall mean the Compensation and Human Resources
Committee of the Board or such other committee appointed by the Board to assist the Company in making determinations required under the Plan in accordance with its terms. The Committee may delegate its authority under the Plan to an individual or
another committee. 
  

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 Section 2.09 “Company” shall mean Covidien plc, a public
company with limited liability incorporated in Ireland, or any successor thereto. Unless it is otherwise clear from the context, Company shall generally include participating Subsidiaries. 

Section 2.10 “Effective Date” shall mean January 1, 2010. 

Section 2.11 “Eligible Employee” shall mean an Employee who is an Officer or is in career band one or two
and who is not covered under any other severance plan or program sponsored by the Company or a Subsidiary. If there is any question as to whether an Employee is an Eligible Employee, the Senior Vice President, Human Resources of Covidien plc shall
make the determination. 
 Section 2.12 “Employee” shall mean an individual who is a common law
employee on the payroll of any United States Subsidiary of Covidien plc, and shall not include any person providing services to the Company or any Subsidiary through a temporary service or on a leased basis or who is hired by the Company or any
Subsidiary as an independent contractor, consultant, or otherwise as a person who is not an employee for purposes of withholding United States federal income or employment taxes, as evidenced by payroll records or a written agreement with the
individual, regardless of any contrary governmental agency determination or judicial holding relating to such status or tax withholding. Notwithstanding the above, in the event that Section 409A applies to any payments made hereunder,
subsection (iv) of the definition of “Subsidiary” shall apply. 
 Section 2.13
“Employer” shall mean the Company or any Subsidiary. 
 Section 2.14 “ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder. 

Section 2.15 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the regulations
promulgated thereunder. 
 Section 2.16 “Involuntary Termination” shall mean the date that a
Participant experiences a Company-initiated Separation from Service for any reason other than Cause, Permanent Disability or death, as provided under and subject to the conditions of Article III. 

Section 2.17 “Key Employee” shall mean an Eligible Employee who is a “specified employee” under
Code Section 409A, as determined by the Committee or its delegate. The determination of Key Employees, including the number and identity of persons considered specified employees and the identification date, shall be made by the Committee or
its delegate in accordance with the provisions of Code Section 409A and the regulations promulgated thereunder. 

Section 2.18 “Notice Pay” shall mean the amounts that a Participant is eligible to receive pursuant to
Section 4.01(a). 
 Section 2.19 “Officer” shall mean any individual who is an officer, as
such term is defined pursuant to Rule 16a-1(f) as promulgated under the Exchange Act, of the Company. For purposes of this definition, Officer shall also mean any officer of any of the Company’s Subsidiaries who performs policy making
functions, within the context of Rule 16a-1(f). 
  

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 Section 2.20 “Participant” shall mean any Eligible Employee who
meets the requirements of Article III and thereby becomes eligible for Severance Benefits. 
 Section 2.21
“Permanent Disability” shall mean that an Employee has a permanent and total incapacity from engaging in any employment for the Employer for physical or mental reasons. A “Permanent Disability” shall be deemed to exist
if the Employee meets the requirements for disability benefits under the Employer’s long-term disability plan or under the requirements for disability benefits under the Social Security law then in effect, or if the Employee is designated with
an inactive employment status at the end of a disability or medical leave. 
 Section 2.22 “Plan”
means the Covidien Severance Plan for U.S. Officers and Executives as set forth herein, and as the same may from time to time be amended. 

Section 2.23 “Plan Administrator” shall mean the individual(s) appointed by the Committee to administer the
terms of the Plan as set forth herein and if no individual is appointed by the Committee to serve as the Plan Administrator for the Plan, the Plan Administrator shall be the Senior Vice President, Human Resources of Covidien plc. Notwithstanding the
preceding sentence, in the event the Plan Administrator is entitled to Severance Benefits under the Plan, the Committee or its delegate shall act as the Plan Administrator for purposes of administering the terms of the Plan with respect to the Plan
Administrator. The Plan Administrator may delegate all or any portion of its authority under the Plan to any other person(s). 

Section 2.24 “Postponement Period” shall mean, for a Key Employee, the period of six (6) months after
such Key Employee’s Separation from Service Date (or such other period as may be required by Code Section 409A). 

Section 2.25 “Release” shall mean the “Separation of Employment Agreement and General Release,” as
provided by the Company, or such other agreement between the Company and Participant under which the Participant releases potential claims against the Company in exchange for Severance Benefits. 

Section 2.26 “Salary Continuation Benefits” shall mean the salary continuation payments described in
Section 4.01(b) and the bonus payments described in Section 4.01(c)(ii). 
 Section 2.27
“Separation from Service” shall mean “separation from service” within the meaning of Code Section 409A(a)(2)(A)(i) and the applicable regulations and rulings promulgated thereunder. 

Section 2.28 “Separation from Service Date” shall mean, with respect to a Participant, the date on which
such Participant experiences a Separation from Service. 
 Section 2.29 “Severance Benefits” shall
mean the Salary Continuation Benefits and other benefits that a Participant is eligible to receive pursuant to Article IV of the Plan. 

Section 2.30 “Severance Period” shall mean the period during which a Participant is receiving Severance
Benefits under this Plan, as set forth in the Appendix. 
  

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 Section 2.31 “Subsidiary” shall mean (i) a subsidiary
company (wherever incorporated) of the Company, as defined by Section 155 of the Companies Act 1963 of Ireland; (ii) any separately organized business unit, whether or not incorporated, of the Company; (iii) any employer that is
required to be aggregated with the Company pursuant to Code Section 414 and the regulations promulgated thereunder; and (iv) any service recipient or employer that is within a controlled group of corporations as defined in Code Sections
1563(a)(1), (2) and (3) where the phrase “at least 50%” is substituted in each place “at least 80%” appears and any service recipient or employer within trades or businesses under common control as defined in Code
Section 414(c) and Treas. Reg. § 1.414(c)-2 where the phrase “at least 50%” is substituted in each place “at least 80%” appears, provided, however, that when the relevant determination is to be based upon legitimate
business criteria (as described in Treas. Reg. § 1.409A-1(b)(5)(iii)(E) and § 1.409A-1(h)(3)), the phrase “at least 20%” shall be substituted in each place “at least 80%” appears as described above with respect to both
a controlled group of corporations and trades or business under common control. 
 Section 2.32 “Voluntary
Termination” shall mean any Separation from Service due to retirement or termination of employment that is not initiated by the Company or any Subsidiary. 

 

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 ARTICLE III 

PARTICIPATION AND ELIGIBILITY FOR BENEFITS 

Section 3.01 Participation. Each Eligible Employee in the Plan who incurs an Involuntary Termination and who satisfies
all of the conditions of Section 3.02 shall be eligible to receive the Severance Benefits described in the Plan. An Eligible Employee shall not be eligible to receive any other severance benefits from the Company or Subsidiary on account of an
Involuntary Termination, unless otherwise provided in the Plan. In addition, any Eligible Employee who is a party to an employment agreement with the Company pursuant to which such Eligible Employee is entitled to severance benefits shall be
ineligible to participate in the Plan. 
 Section 3.02 Conditions. 

(a) Eligibility for any Severance Benefits is expressly conditioned on the occurrence of the following within 60 days following the
Participant’s Separation from Service Date: (i) execution by the Participant of a Release in the form provided by the Company; (ii) compliance by the Participant with all of the terms and conditions of such Release; (iii) the
Participant’s written agreement to the confidentiality, non-solicitation, and non-disparagement provisions in Article VI during and after the Participant’s employment with the Company; and (iv) to the extent permitted in
Section 4.04 of the Plan, execution of a written agreement that authorizes the deduction of amounts owed to the Company prior to the payment of any Severance Benefits (or in accordance with any other schedule as the Committee may, in its sole
discretion, determine to be appropriate). If the Company determines, in its sole discretion, that the Participant has not fully complied with any of the terms of the agreement and/or Release, the Company may deny Severance Benefits not yet in pay
status or discontinue the payment of the Severance Benefits and may require the Participant, by providing written notice of such repayment obligation to the Participant, to repay any portion of the Severance Benefit already received under the Plan.
If the Company notifies a Participant that repayment of all or any portion of the Severance Benefit received under the Plan is required, such amounts shall be repaid within thirty (30) calendar days after the date the written notice is sent.
Any remedy under this Section 3.02(a) shall be in addition to, and not in place of, any other remedy, including injunctive relief, that the Company may have. 

(b) An Eligible Employee will not be eligible to receive severance benefits under any of the following circumstances: 

(i) The Eligible Employee voluntarily terminates employment: 

(ii) The Eligible Employee resigns employment before the job-end date specified by the Employer or while the Employer still desires the
Eligible Employee’s services; 
 (iii) The Eligible Employee’s employment is terminated for Cause; 

(iv) The Eligible Employee voluntarily retires; 
  

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 (v) The Eligible Employee’s employment is terminated due to the Eligible
Employee’s death or Permanent Disability; 
 (vi) The Eligible Employee does not return to work at the end of an approved
leave of absence; 
 (vii) The Eligible Employee does not satisfy the conditions for Severance set forth in
Section 3.02(a); 
 (viii) The Eligible Employee continues in employment with the Company or a Subsidiary or has the
opportunity to continue in employment in the same or in an Alternative Position with the Company or a Subsidiary; or 
 (ix)
The Eligible Employee’s employment with the Employer terminates as a result of a sale of stock or assets of the Employer, merger, consolidation, joint venture or a sale or outsourcing of a business unit or function, or other transaction, and
the Eligible Employee accepts employment, or has the opportunity to continue employment in an Alternative Position, with the purchaser, joint venture, or other acquiring or outsourcing entity, or a related entity of either the Company or the
acquiring entity. The payment of Severance Benefits in the circumstances described in this subsection (ix) would result in a windfall to the Eligible Employee, which is not the intention of the Plan. 

(c) The Plan Administrator has the sole discretion to determine an Eligible Employee’s eligibility to receive Severance Benefits.

 (d) An Eligible Employee returning from approved military leave will be eligible for Severance Benefits if: (i) he/she
is eligible for reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act (USERRA); (ii) his/her pre-military leave job is eliminated; and (iii) the Employer’s circumstances are changed so as
to make reemployment in another position impossible or unreasonable, or re-employment would create an undue hardship for the Employer. If the Eligible Employee returning from military leave qualifies for Severance Benefits, his/her severance
benefits will be calculated as if he/she had remained continuously employed from the date he/she began his/her military leave. The Eligible Employee must also satisfy any other relevant conditions for payment set forth in this Article III, including
execution of a Release. 
  

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 ARTICLE IV 

DETERMINATION OF SEVERANCE BENEFITS 

Section 4.01 Amount of Severance Benefits Upon Involuntary Termination. The Severance Benefits to be provided to a
Participant shall be as follows: 
 (a) Notice Pay. Each Eligible Employee who is eligible for Severance Benefits shall
receive at least thirty (30) calendar days notice as a Notice Period. In the event that the Company determines that a Participant’s last day of work shall be prior to the end of his or her Notice Period, such Employee shall be entitled to
pay in lieu of notice for the balance of such Notice Period. Notice Pay paid to an Eligible Employee shall be in addition to, and shall not be offset against, the Severance Benefits the Participant may be entitled to receive under this Article IV.
An Eligible Employee who does not sign, or who revokes his or her signature on, a Release shall only be eligible for Notice Pay. Unless otherwise permitted by the applicable plan documents or laws, an Eligible Employee will not be eligible to apply
for short-term disability, long-term disability and/or workers’ compensation during the Notice Period or anytime thereafter. Notice pay shall be paid in accordance with Article V. 

(b) Salary Continuation. Salary continuation shall be provided during the Severance Period applicable to the Participant as set
forth in the Salary Continuation Schedule in the Appendix. During the Severance Period, the Participant shall receive his or her Base Salary (net of deductions and tax withholdings, as applicable) in equal installments over the Severance Period, per
normal payroll cycles. Except as otherwise provided herein, salary continuation payments shall commence no earlier than the end of the revocation period applicable to the Release and shall be paid in accordance with Article V. 

(c) Bonus. 

(i) Participants may be eligible for a cash payment equal to his or her pro rated annual bonus for the year in which the
Participant’s Separation from Service Date occurs, subject to the discretion of the Company and to the extent provided in the applicable plan. 

(ii) Participants shall also receive a bonus payment during the applicable Severance Period that is equal to the amount set forth in the
Bonus Payment Schedule in the Appendix. The bonus payment shall be paid in cash to the Participant in equal installments over the applicable Severance Period (e.g., 12 months, 18 months or 24 months). Bonus payments made over the applicable
Severance Period shall be paid at the same time as the salary continuation payments described in Section 4.01(b) and in accordance with Article V. 

(d) Medical, Dental and Health Care Reimbursement Account Benefits. The Participant (and his/her spouse, domestic partner or
child(ren), as applicable) shall be eligible for continued coverage under the Company’s medical and dental plans as required by and pursuant to COBRA. The Company shall provide COBRA coverage only if such coverage is timely elected by the
Participant or other qualified beneficiary (as defined by COBRA). If the Participant timely elects COBRA coverage, subject to the other provisions in this Section 4.01(d), during the Severance Period, the Participant will be responsible for paying
the employee portion of the applicable premium under the respective plan(s) at the same rate and at the same time as such employee contributions are paid by similarly-situated active Company employees. If the Severance Period is less than the
applicable COBRA coverage period then, effective for the first premium payment due after the Severance Period expires, the Participant will be required to pay the entire premium for COBRA coverage and shall be responsible for paying such premium
during the remainder of the applicable COBRA coverage period. If the Severance Period exceeds eighteen (18) months after the Participant’s Separation from Service Date, then (a) effective for any premium payments for COBRA coverage
that are due after eighteen (18) months after the Participant’s Separation from Service Date, the Participant will be required to pay the entire premium for such COBRA coverage and shall be responsible for paying such premium during the
remainder of the applicable COBRA period and (b) the Company shall pay to the Participant, within sixty (60) days after such eighteen (18) month period expires, a single lump-sum cash payment in an amount equal to the employer portion
of the applicable premium in effect for the Participant, based on the type of coverage provided to the Participant at such time, for the last month of such eighteen (18) month period times the number of full months that the Severance Period
exceeds such eighteen (18) month period. COBRA coverage will cease upon the expiration of the maximum period required under COBRA or at such earlier time if the Participant does not pay the required premium within the applicable time period, if
the Participant terminates COBRA coverage, or if an event occurs that, pursuant to COBRA, permits the earlier termination of COBRA coverage. 
  

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 (e) Stock Options. All stock options held by the Participant as of his or her
Separation from Service Date which would have vested and become exercisable during the twelve (12) month period occurring immediately after the Participant’s Separation from Service Date shall accelerate and become immediately vested and
exercisable on such Participant’s Separation from Service Date, unless the applicable option agreement provides for more favorable vesting treatment. All outstanding stock options held by the Participant that are vested and exercisable as of
the Participant’s Separation from Service Date (including options that vest and become exercisable pursuant to the provisions of this Section 4.01(e) and Section 4.01(g) below) shall be exercisable for the greater of (i) the
period set forth in applicable option agreement, or (ii) twelve (12) months after the Participant’s Separation from Service Date. In no event, however, shall an option be exercisable beyond its original expiration date. If the
Participant dies, the terms and conditions of the applicable option agreement shall govern. 
 (f) Restricted Stock,
Restricted Stock Units and Performance Share Units. Except as otherwise provided in Section 4.01(g), all unvested restricted stock and restricted stock units held by a Participant as of his or her Separation from Service Date shall be
forfeited as of the Participant’s Separation from Service Date. All performance share units held by a Participant as of his or her Separation from Service Date shall be forfeited as of the Participant’s Separation from Service Date.

 (g) Retirement and Normal Retirement Eligible Participants. If a Participant who signs a Release and begins receiving
Severance Benefits hereunder would satisfy the requirements for Retirement or Normal Retirement (as such terms are defined in the applicable award agreement) under the terms of a non-qualified stock option, restricted unit or performance unit award
agreement over Covidien plc ordinary shares at any time during the Participant’s Severance Period solely by reason of attaining the requisite age set forth in the applicable award agreement during such Severance Period, then all such
non-qualified stock option, restricted unit and performance unit awards shall vest in accordance with the terms and conditions of the applicable award agreement by treating such Participant as if such Participant had satisfied the age requirement
for Retirement or Normal Retirement, as applicable, on the Participant’s Separation from Service Date. If the Participant dies, the terms and conditions of the applicable award agreement shall govern. 

 

 -9- 

 (h) Outplacement Services. The Company may, in its sole and absolute discretion, pay
the cost of outplacement services for the Participant at the outplacement agency that the Company regularly uses for such purpose; provided, however, that the period of outplacement shall not exceed twelve (12) months after the
Participant’s Separation from Service Date or, if earlier, the date of the Participant’s death. 

Section 4.02 Voluntary Termination; Termination for Death or Permanent Disability. If the Eligible Employee’s
employment terminates on account of (i) the Eligible Employee’s Voluntary Termination, (ii) death, or (iii) Permanent Disability, then the Eligible Employee shall not be entitled to receive Severance Benefits under this Plan and
shall be entitled only to those benefits (if any) as may be available under the Company’s then-existing benefit plans and policies at the time of such termination. 

Section 4.03 Termination for Cause. If any Eligible Employee’s employment terminates on account of termination by
the Company for Cause, the Eligible Employee shall not be entitled to receive Severance Benefits under this Plan and shall be entitled only to those benefits that are required to be provided to the Eligible Employee by applicable law.
Notwithstanding any other provision of the Plan to the contrary, if the Committee or the Plan Administrator determine, during the Severance Period, that a Participant engaged in conduct at any time that constitutes Cause, any Severance Benefits
payable to the Participant shall immediately cease and the Participant shall be required to return any Severance Benefits paid to the Participant prior to such determination to the Company. The Company may withhold paying Severance Benefits pending
resolution of an inquiry that could lead to a finding resulting in Cause and any such payment that was withheld and which is subsequently determined to be payable shall be paid to the Participant within ninety (90) days after the date of the
final and binding resolution of the related inquiry. 
 Section 4.04 Reduction of Severance Benefits. With
respect to amounts paid under the Plan that are not subject to Code Section 409A and the regulations promulgated thereunder, the Plan Administrator reserves the right to make deductions in accordance with applicable law for any monies owed to
the Company by the Eligible Employee or the value of Company property that the Eligible Employee has retained in his/her possession. With respect to amounts paid under the Plan that are subject to Code Section 409A and the regulations
promulgated thereunder, the Plan Administrator reserves the right to make deductions in accordance with applicable law for any monies owed to the Company by the Eligible Employee or the value of Company property that the Eligible has retained in
his/her possession; provided, however, that such deductions cannot exceed $5,000 in the aggregate in any Company fiscal year. 
  

 -10- 

 ARTICLE V 

METHOD AND DURATION OF SEVERANCE BENEFIT PAYMENTS 

Section 5.01 Method of Payment. Subject to Section 5.03, the Severance Benefit to which a Participant is
entitled, as determined pursuant to Section 4.01, shall be paid in accordance with normal payroll practices over the Severance Period by the Company; provided, however, that the pro rated annual bonus payable to the Participant pursuant to
Section 4.01(c)(i) shall be paid at such time and in such manner as set forth in The Covidien Annual Incentive Plan (or successor plan) and that COBRA coverage under Section 4.01(d) shall be provided or paid in accordance with the
provisions of that subsection. In no event will interest be credited on the unpaid balance for which a Participant may become eligible. Payment shall be mailed to the last address provided by the Participant to the Company or by such other
reasonable method as determined by the Plan Administrator. All payments of Severance Benefits are subject to applicable federal, state and local taxes and withholdings. In the event of a Participant’s death prior to the completion of all
payments to which a Participant is entitled, the remaining payments shall be paid to the Participant’s estate in a single lump sum payment within sixty (60) days following the date of the Participant’s death. 

Section 5.02 Other Arrangements. The Severance Benefits under this Plan are not additive or cumulative to severance or
termination benefits that a Participant might also be entitled to receive under the terms of a written employment agreement, a severance agreement or any other arrangement with the Employer. As provided in Section 3.01, any Eligible Employee
who is a party to an employment agreement with the Company pursuant to which such Eligible Employee is entitled to severance benefits shall be ineligible to participate in the Plan. Therefore, as a condition of participating in the Plan, the
Eligible Employee must expressly agree that this Plan supersedes all prior agreements, and sets forth the entire benefit the Eligible Employee is entitled to under the Plan. 

Section 5.03 Code Section 409A 

(a) Notwithstanding any other provision of the Plan to the contrary, if required by Code Section 409A, no Salary Continuation
Benefits shall be paid to a Participant who is a Key Employee during the Postponement Period. If the previous sentence applies, then the payment of Salary Continuation Benefits shall commence after expiration of the applicable Postponement Period
and any amounts that would have been paid during the Postponement Period but for the previous sentence shall be paid in a single lump sum within 30 days after the end of such Postponement Period. If the Participant dies during the Postponement
Period, however, amounts withheld pursuant to this Section 5.03(a) shall be paid to the Participant’s estate no later than the earlier of 60 days after the Participant’s death or 30 days after the end of the Postponement Period.

 (b) This Plan is intended to provide certain benefits that meet the requirements of the “short-term deferral”
exception, the “separation pay” exception and other exceptions under Code Section 409A and the regulations promulgated thereunder. Notwithstanding any other provision of the Plan to the contrary, if required by Code Section 409A,
payments may only be made under this Plan upon an event and in a manner permitted by Code Section 409A. For purposes of Code Section 409A, each individual payment that constitutes part of the Salary Continuation Benefits shall be treated
as a separate payment from any other such payment. All reimbursements and in-kind benefits provided under the Plan shall be made or provided in accordance with the requirements of Code Section 409A including, where applicable, the requirement
that (i) any reimbursement is for expenses incurred during the period of time specified in the Plan, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses
eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, (iii) the reimbursement of an eligible expense will be made no later than the last day of the calendar year following the year in which the expense is
incurred, and (iv) the right to reimbursement, or in-kind benefits is not subject to liquidation or exchange for another benefit. In no event may a Participant designate the year of payment for any amounts payable under the Plan. 

 

 -11- 

 Section 5.04 Termination of Eligibility for Benefits. 

(a) All Eligible Employees shall cease to be eligible to participate in the Plan, and all Severance Benefit payments payable to a
Participant shall cease upon the occurrence of the earlier of: 
 (i) Subject to Article VIII, termination or modification of
the Plan; or 
 (ii) Completion of the provision of Severance Benefits to the Participant. 

(b) Notwithstanding any other provision of the Plan to the contrary, the Company shall have the right to cease all Severance Benefits
(except as otherwise required by law) and to recover any payments previously made to the Participant should the Participant at any time breach the Participant’s undertakings under the terms of the Plan, the Release the Participant executed to
obtain the Severance Benefits under the Plan or the confidentiality, non-competition, non-solicitation and non-disparagement provisions of Article VI. 
  

 -12- 

 ARTICLE VI 

CONFIDENTIALITY, COVENANT NOT TO COMPETE AND NOT TO SOLICIT 

Section 6.01 Confidential Information. The Participant agrees that he or she shall not, directly or indirectly, use,
make available, sell, disclose or otherwise communicate to any person, other than in the course of the Participant’s assigned duties and for the benefit of the Company, either during the period of the Participant’s employment or at any
time thereafter, any nonpublic, proprietary or confidential information, knowledge or data relating to the Company, any of its Subsidiaries, affiliated companies or businesses, which shall have been obtained by the Participant during the
Participant’s employment by the Company or a Subsidiary. The foregoing shall not apply to information that (i) was known to the public prior to its disclosure to the Participant; (ii) becomes known to the public subsequent to
disclosure to the Participant through no wrongful act of the Participant or any representative of the Participant; or (iii) the Participant is required to disclose by applicable law, regulation or legal process (provided that the Participant
provides the Company with prior notice of the contemplated disclosure and reasonably cooperates with the Company at its expense in seeking a protective order or other appropriate protection of such information). Notwithstanding clauses (i) and
(ii) of the preceding sentence, the Participant’s obligation to maintain such disclosed information in confidence shall not terminate where only portions of the information are in the public domain. 

Section 6.02 Non-Competition. The Participant acknowledges that he or she performs services of a unique nature for the
Company that are irreplaceable, and that his or her performance of such services for a competing business will result in irreparable harm to the Company. Accordingly, during the Participant’s employment with the Company or Subsidiary and for
the one (1) year period thereafter, the Participant agrees that the Participant will not, directly or indirectly, own, manage, operate, control, be employed by (whether as an employee, consultant, independent contractor or otherwise, and
whether or not for compensation) or render services to any person, firm, corporation or other entity, in whatever form, engaged in any business of the same type as any business in which the Company or any of its Subsidiaries or affiliates is engaged
on the date of termination or in which they have proposed, on or prior to such date, to be engaged in on or after such date and in which the Participant has been involved to any extent (other than de minimis) at any time during the one (1) year
period ending with the date of termination, in any locale of any country in which the Company or any of its Subsidiaries conducts business. This Section 6.02 shall not prevent the Participant from owning not more than one percent of the total
shares of all classes of stock outstanding of any publicly held entity engaged in such business, nor will it restrict the Participant from rendering services to charitable organizations, as such term is defined in section 501(c) of the Code.

 Section 6.03 Non-Solicitation. During the Participant’s employment with the Company or a Subsidiary
and for the two (2) year period thereafter, the Participant agrees that he or she will not, directly or indirectly, individually or on behalf of any other person, firm, corporation or other entity, knowingly solicit, aid or induce (i) any
employee of the Company or any Subsidiary, as defined by the Company, to leave such employment in order to accept employment with or render services to or with any other person, firm, corporation or other entity unaffiliated with the Company or
knowingly take any action to materially assist or aid any other person, firm, corporation or other entity in identifying or hiring any such employee, or (ii) any customer of the Company or any Subsidiary to purchase goods or services then sold
by the Company or any Subsidiary from another person, firm, corporation or other entity or assist or aid any other persons or entity in identifying or soliciting any such customer. 

 

 -13- 

 Section 6.04 Non-Disparagement. Each of the Participant and the Company
(for purposes hereof, the Company shall mean only the executive officers and directors thereof and not any other employees) agrees not to make any statements that disparage the other party, or in the case of the Company or its Subsidiaries, their
respective affiliates, employees, officers, directors, products or services. Notwithstanding the foregoing, statements made in the course of sworn testimony in administrative, judicial or arbitral proceedings (including, without limitation,
depositions in connection with such proceedings) shall not be subject to this Section 6.04. 
 Section 6.05
Reasonableness. In the event the provisions of this Article VI shall ever be deemed to exceed the time, scope or geographic limitations permitted by applicable laws, then such provisions shall be reformed to the maximum time, scope or
geographic limitations, as the case may be, permitted by applicable laws. 
 Section 6.06 Equitable Relief.

 (a) By participating in the Plan, the Participant acknowledges that the restrictions contained in this Article VI are
reasonable and necessary to protect the legitimate interests of the Company, its Subsidiaries and its affiliates, that the Company would not have established this Plan in the absence of such restrictions, and that any violation of any provision of
this Article VI will result in irreparable injury to the Company. By agreeing to participate in the Plan, the Participant represents that his or her experience and capabilities are such that the restrictions contained in this Article VI will not
prevent the Participant from obtaining employment or otherwise earning a living at the same general level of economic benefit as is currently the case. The Participant further represents and acknowledges that (i) he or she has been advised by
the Company to consult his or her own legal counsel in respect of this Plan, and (ii) that he or she has had full opportunity, prior to agreeing to participate in this Plan, to review thoroughly this Plan with his or her counsel. 

(b) The Participant agrees that the Company shall be entitled to preliminary and permanent injunctive relief, without the necessity of
proving actual damages, as well as an equitable accounting of all earnings, profits and other benefits arising from any violation of this Article VI, which rights shall be cumulative and in addition to any other rights or remedies to which the
Company may be entitled. In the event that any of the provisions of this Article VI should ever be adjudicated to exceed the time, geographic, service, or other limitations permitted by applicable law in any jurisdiction, then such provisions shall
be deemed reformed in such jurisdiction to the maximum time, geographic, service, or other limitations permitted by applicable law. 

(c) The Participant irrevocably and unconditionally (i) agrees that any suit, action or other legal proceeding arising out of this
Article VI, including without limitation, any action commenced by the Company for preliminary and permanent injunctive relief or other equitable relief, may be brought in the United States District Court for the District of Massachusetts, or if such
court does not have jurisdiction or will not accept jurisdiction, in any court of general jurisdiction in Massachusetts, (ii) consents to the non-exclusive jurisdiction of any such court in any such suit, action or proceeding, and
(iii) waives any objection which Participant may have to the laying of venue of any such suit, action or proceeding in any such court. Participant also irrevocably and unconditionally consents to the service of any process, pleadings, notices
or other papers in a manner permitted by the notice provisions of Section 11.02. 
  

 -14- 

 Section 6.07 Survival of Provisions. The obligations contained in this
Article VI shall survive the termination of Participant’s employment with the Company or a Subsidiary and shall be fully enforceable thereafter. 
  

 -15- 

 ARTICLE VII 

THE PLAN ADMINISTRATOR 

Section 7.01 Authority and Duties. It shall be the duty of the Plan Administrator, on the basis of information
supplied to it by the Company and the Committee, to properly administer the Plan. The Plan Administrator shall have the full power, authority and discretion to construe, interpret and administer the Plan, to make factual determinations, to correct
deficiencies therein, and to supply omissions. All decisions, actions and interpretations of the Plan Administrator shall be final, binding and conclusive upon the parties, subject only to determinations by the Named Appeals Fiduciary (as defined in
Section 10.04), with respect to denied claims for Severance Benefits. The Plan Administrator may adopt such rules and regulations and may make such decisions as it deems necessary or desirable for the proper administration of the Plan.

 Section 7.02 Compensation of the Plan Administrator. The Plan Administrator shall receive no compensation
for services as such. However, all reasonable expenses of the Plan Administrator shall be paid or reimbursed by the Company upon proper documentation. The Plan Administrator shall be indemnified by the Company against personal liability for actions
taken in good faith in the discharge of the Plan Administrator’s duties. 
 Section 7.03 Records, Reporting and
Disclosure. The Plan Administrator shall keep a copy of all records relating to the payment of Severance Benefits to Participants and former Participants and all other records necessary for the proper operation of the Plan. All Plan records
shall be made available to the Committee, the Company and to each Participant for examination during business hours except that a Participant shall examine only such records as pertain exclusively to the examining Participant and to the Plan. The
Plan Administrator shall prepare and shall file as required by law or regulation all reports, forms, documents and other items required by ERISA, the Code, and every other relevant statute, each as amended, and all regulations thereunder (except
that the Company or any supplemental unemployment benefits trust, as payor of the Severance Benefits, shall prepare and distribute to the proper recipients all forms relating to withholding of income or wage taxes, Social Security taxes, and other
amounts that may be similarly reportable). 
  

 -16- 

 ARTICLE VIII 

AMENDMENT, TERMINATION AND DURATION 

Section 8.01 Amendment, Suspension and Termination. Except as otherwise provided in this Section 8.01, the Board
or its delegate shall have the right, at any time and from time to time, to amend, suspend or terminate the Plan in whole or in part, for any reason or without reason, and without either the consent of or the prior notification to any Participant,
by a formal written action. No such amendment shall give the Company the right to recover any amount paid to a Participant prior to the date of such amendment or to cause the cessation of Severance Benefits already approved for a Participant who has
executed a Release as required under Section 3.02. Any amendment or termination of the Plan must comply with all applicable legal requirements including, without limitation, compliance with Code Section 409A and the regulations and rulings
promulgated thereunder, securities, tax, or other laws, rules, regulations or regulatory interpretation thereof, applicable to the Plan. 

Section 8.02 Duration. Unless terminated sooner by the Board or its delegate, the Plan shall continue in full force
and effect until termination of the Plan pursuant to Section 8.01; provided, however, that after the termination of the Plan, if any Participants terminated employment on account of an Involuntary Termination prior to the termination of the
Plan and are still receiving Severance Benefits under the Plan, the Plan shall remain in effect until all of the obligations of the Company are satisfied with respect to such Participants. 

 

 -17- 

 ARTICLE IX 

DUTIES OF THE COMPANY AND THE COMMITTEE 

Section 9.01 Records. The Company or a Subsidiary thereof shall supply to the Committee all records and information
necessary to the performance of the Committee’s duties. 
 Section 9.02 Payment. Payments of Severance
Benefits to Participants shall be made in such amount as determined by the Committee under Article IV, from the Company’s general assets. 

Section 9.03 Discretion. Any decisions, actions or interpretations to be made under the Plan by the Board, the
Committee and the Plan Administrator, acting on behalf of either, shall be made in each of their respective sole discretion, not in any fiduciary capacity and need not be uniformly applied to similarly situated individuals and such decisions,
actions or interpretations shall be final, binding and conclusive upon all parties. As a condition of participating in the Plan, the Eligible Employee acknowledges that all decisions and determinations of the Board, the Committee and the Plan
Administrator shall be final and binding on the Eligible Employee, his or her beneficiaries and any other person having or claiming an interest under the Plan on his or her behalf. 

 

 -18- 

 ARTICLE X 

CLAIMS PROCEDURES 

Section 10.01 Claim. Each Participant under this Plan may contest only the administration of the Severance Benefits
awarded by completing and filing with the Plan Administrator a written request for review in the manner specified by the Plan Administrator. No appeal is permissible as to an Eligible Employee’s eligibility for or a Participant’s amount of
the Severance Benefit, which are decisions made solely within the discretion of the Company. No person may bring an action for any alleged wrongful denial of Plan benefits in a court of law unless the claims procedures described in this Article X
are exhausted and a final determination is made by the Plan Administrator and/or the Named Appeals Fiduciary. If an Eligible Employee or Participant or other interested person challenges a decision by the Plan Administrator and/or Named Appeals
Fiduciary, a review by the court of law will be limited to the facts, evidence and issues presented to the Plan Administrator during the claims procedure set forth in this Article X. Facts and evidence that become known to the terminated Eligible
Employee or Participant or other interested person after having exhausted the claims procedure must be brought to the attention of the Plan Administrator for reconsideration of the claims administrator. Issues not raised with the Plan Administrator
and/or Named Appeals Fiduciary will be deemed waived. 
 Section 10.02 Initial Claim. Before the date on
which payment of a Severance Benefit commences, each such application must be supported by such information as the Plan Administrator deems relevant and appropriate. In the event that any claim relating to the administration of Severance Benefits is
denied in whole or in part, the terminated Participant or his or her beneficiary (“claimant”) whose claim has been so denied shall be notified of such denial in writing by the Plan Administrator within ninety (90) days after the
receipt of the claim for benefits. This period may be extended an additional ninety (90) days if the Plan Administrator determines such extension is necessary and the Plan Administrator provides notice of extension to the claimant prior to the
end of the initial ninety (90) day period. The notice advising of the denial shall specify the following: (i) the reason or reasons for denial, (ii) make specific reference to the Plan provisions on which the determination was based,
(iii) describe any additional material or information necessary for the claimant to perfect the claim (explaining why such material or information is needed), and (iv) describe the Plan’s review procedures and the time limits
applicable to such procedures, including a statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review. If it is determined that payment is to be made, any such
payment shall be made within ninety (90) days after the date by which notification is required. 
 Section 10.03
Appeals of Denied Administrative Claims. All appeals shall be made by the following procedure: 
 (a) A claimant
whose claim has been denied shall file with the Plan Administrator a notice of appeal of the denial. Such notice shall be filed within sixty (60) calendar days after notification by the Plan Administrator of the denial of a claim, shall be made
in writing, and shall set forth all of the facts upon which the appeal is based. Appeals not timely filed shall be barred. 
  

 -19- 

 (b) The Named Appeals Fiduciary shall consider the merits of the claimant’s written
presentations, the merits of any facts or evidence in support of the denial of benefits, and such other facts and circumstances as the Named Appeals Fiduciary shall deem relevant. 

(c) The Named Appeals Fiduciary shall render a determination upon the appealed claim which determination shall be accompanied by a
written statement as to the reasons therefore. The determination shall be made to the claimant within sixty (60) days after the claimant’s request for review, unless the Names Appeals Fiduciary determines that special circumstances
requires an extension of time for processing the claim. In such case, the Named Appeals Fiduciary shall notify the claimant of the need for an extension of time to render its decision prior to the end of the initial sixty (60) day period, and
the Named Appeals Fiduciary shall have an additional sixty (60) day period to make its determination. The determination so rendered shall be binding upon all parties. If the determination is adverse to the claimant, the notice shall provide
(i) the reason or reasons for denial, (ii) make specific reference to the Plan provisions on which the determination was based, (iii) a statement that the claimant is entitled to receive, upon request and free of charge, reasonable
access to, and copies of, all documents, records and other information relevant to a the claimant’s claim for benefits, and (iv) state that the claimant has the right to bring an action under ERISA Section 502(a). If the final
determination is that payment shall be made, then any such payment shall be made within ninety (90) days after the date by which notification of the final determination is required. 

Section 10.04 Appointment of the Named Appeals Fiduciary. The Named Appeals Fiduciary shall be the person or persons
named as such by the Board or Committee, or, if no such person or persons be named, then the person or persons named by the Plan Administrator as the Named Appeals Fiduciary. Named Appeals Fiduciaries may at any time be removed by the Board or
Committee, and any Named Appeals Fiduciary named by the Plan Administrator may be removed by the Plan Administrator. All such removals may be with or without cause and shall be effective on the date stated in the notice of removal. The Named Appeals
Fiduciary shall be a “Named Fiduciary” within the meaning of ERISA, and unless appointed to other fiduciary responsibilities, shall have no authority, responsibility, or liability with respect to any matter other than the proper discharge
of the functions of the Named Appeals Fiduciary as set forth herein. 
 Section 10.05 Arbitration; Expenses.
In the event of any dispute under the provisions of this Plan, other than a dispute in which the primary relief sought is an equitable remedy such as an injunction, the parties shall have the dispute, controversy or claim settled by arbitration in
Boston, Massachusetts (or such other location as may be mutually agreed upon by the Employer and the Participant) in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association,
before a panel of three arbitrators, two of whom shall be selected by the Company and the Participant, respectively, and the third of whom shall be selected by the other two arbitrators. Any award entered by the arbitrators shall be final, binding
and nonappealable and judgment may be entered thereon by either party in accordance with applicable law in any court of competent jurisdiction. This arbitration provision shall be specifically enforceable. The arbitrators shall have no authority to
modify any provision of this Plan or to award a remedy for a dispute involving this Plan other than a benefit specifically provided under or by virtue of the Plan. If the Participant substantially prevails on any material issue, which is the subject
of such arbitration or lawsuit, the Company shall be responsible for all of the fees of the American Arbitration Association and the arbitrators and any expenses relating to the conduct of the arbitration (including the Company’s and
Participant’s reasonable attorneys’ fees and expenses); in this event, any such fees and expenses are limited to those typically incurred in the usual course of arbitration proceedings and shall not be negotiable or determinable by the
Participant, and payment to the Participant of such amounts shall occur within ninety (90) days after the date of entry of judgment (entered in accordance with applicable law in any court of competent jurisdiction) of the final, binding and
non-appealable arbitration settlement. Otherwise, each party shall be responsible for its own expenses relating to the conduct of the arbitration (including reasonable attorneys’ fees and expenses) and shall share the fees of the American
Arbitration Association. 
  

 -20- 

 ARTICLE XI 

MISCELLANEOUS 

Section 11.01 Nonalienation of Benefits. None of the payments, benefits or rights of any Participant shall be subject
to any claim of any creditor of any Participant, and, in particular, to the fullest extent permitted by law, all such payments, benefits and rights shall be free from attachment, garnishment (if permitted under applicable law), trustee’s
process, or any other legal or equitable process available to any creditor of such Participant. No Participant shall have the right to alienate, anticipate, commute, plead, encumber or assign any of the benefits or payments that he may expect to
receive, continently or otherwise, under this Plan, except for the designation of a beneficiary as set forth in Section 5.01. 

Section 11.02 Notices. All notices and other communications required hereunder shall be in writing and shall be
delivered personally or mailed by registered or certified mail, return receipt requested, or by overnight express courier service. In the case of the Participant, mailed notices shall be addressed to him or her at the home address which he or she
most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to the Plan Administrator. 

Section 11.03 Successors. Any successor to the Company shall assume the obligations under this Plan and expressly
agree to perform the obligations under this Plan. 
 Section 11.04 Other Payments. Except as otherwise
provided in this Plan, no Participant shall be entitled to any cash payments or other severance benefits under any of the Company’s then current severance pay policies for a termination that is covered by this Plan. 

Section 11.05 No Mitigation. Except as otherwise provided in Section 4.04, a Participant shall not be required to
mitigate the amount of any Severance Benefit provided for in this Plan by seeking other employment or otherwise, nor shall the amount of any Severance Benefit provided for herein be reduced by any compensation earned by other employment or
otherwise, except if the Participant is re-employed by the Company as an Employee, in which case Severance Benefits shall cease on the date of the Participant’s re-employment. 

Section 11.06 No Contract of Employment. Neither the establishment of the Plan, nor any modification thereof, nor the
creation of any fund, trust or account, nor the payment of any benefits shall be construed as giving any Eligible Employee or any person whosoever, the right to be retained in the service of the Company, and all Eligible Employees shall remain
subject to discharge to the same extent as if the Plan had never been adopted. 
 Section 11.07 Severability of
Provisions. If any provision of this Plan shall be held invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect any other provisions hereof, and this Plan shall be construed and
enforced as if such provisions had not been included. 
  

 -21- 

 Section 11.08 Heirs, Assigns, and Personal Representatives. This Plan
shall be binding upon the heirs, executors, administrators, successors and assigns of the parties, including each Participant, present and future. 

Section 11.09 Headings and Captions. The headings and captions herein are provided for reference and convenience only,
shall not be considered part of the Plan, and shall not be employed in the construction of the Plan. 
 Section 11.10
Gender and Number. Where the context admits: words in any gender shall include any other gender, and, except where otherwise clearly indicated by context, the singular shall include the plural, and vice-versa. 

Section 11.11 Unfunded Plan. The Plan shall not be funded. No Participant shall have any right to, or interest in, any
assets of the Company that may be applied by the Company to the payment of Severance Benefits. 
 Section 11.12
Payments to Incompetent Persons. Any benefit payable to or for the benefit of a minor, an incompetent person or other person incapable of receipting therefore shall be deemed paid when paid to such person’s guardian or to the party
providing or reasonably appearing to provide for the care of such person, and such payment shall fully discharge the Company, the Committee and all other parties with respect thereto. 

Section 11.13 Lost Payees. A benefit shall be deemed forfeited if the Committee is unable to locate a Participant to
whom a Severance Benefit is due. Such Severance Benefit may be reinstated if application is made by the Participant for the forfeited Severance Benefit while this Plan is in operation. 

Section 11.14 Controlling Law. This Plan shall be construed and enforced according to the laws of the Commonwealth of
Massachusetts to the extent not superseded by federal laws. 
  

 -22- 

 Appendix 

SALARY CONTINUATION AND BONUS PAYMENT SCHEDULE 

Salary Continuation Schedule 
  

			
	Chief Executive Officer	  	24 month
Severance Period
		
	Executive Vice President and Chief Financial Officer, Senior Vice Presidents and Presidents of business whose annual revenue is $1.5 billion or more	  	18 month
Severance Period
		
	Any other Global Business Unit Presidents, any other Officer and any other Band 1 or Band 2 Eligible Employee	  	12 month
Severance Period
	
	Bonus Payment Schedule
		
	Chief Executive Officer	  	2x Annual
Bonus
		
	Executive Vice President and Chief Financial Officer, Senior Vice Presidents and Presidents of business whose annual revenue is $1.5 billion or more	  	1.5x Annual
Bonus
		
	Any other Global Business Unit Presidents, any other Officer and any other Band 1 or Band 2 Eligible Employee	  	1x Annual
Bonus

  

 A-1Employment Agreement - William Thomson

 Exhibit 10.23 

EMPLOYMENT AND NON-COMPETITION AGREEMENT 

BETWEEN 

VANTAGE INTERNATIONAL PAYROLL COMPANY PTE. LTD. 

AND 

WILLIAM LAUGHLAN THOMSON 

DATED OCTOBER 27, 2009 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page
	1.	  	EMPLOYMENT TERM AND DUTIES	  	1
		  	1.1	  	Term of Employment	  	1
		  	1.2	  	Duties as Employee of the Company	  	1
		  	1.3	  	Place of Performance	  	2
		  	1.4	  	Fiduciary Duty	  	2
		  	1.5	  	Compliance	  	2
			
	2.	  	COMPENSATION AND RELATED MATTERS	  	2
		  	2.1	  	Base Salary	  	2
		  	2.2	  	Bonus Payments	  	2
		  	2.3	  	Expenses	  	2
		  	2.4	  	Automobiles	  	2
		  	2.5	  	Business, Travel and Entertainment Expenses	  	3
		  	2.6	  	Vacation	  	3
		  	2.7	  	Welfare, Pension and Incentive Benefit Plans	  	3
		  	2.8	  	Dues	  	3
		  	2.9	  	Other Benefits	  	3
		  	2.10	  	Perquisites	  	3
		  	2.11	  	Proration	  	4
		  	2.12	  	Intentionally Left Blank	  	4
		  	2.13	  	Additional Payments	  	4
		  		  	(a)    Excise Tax; Gross-Up Payment	  	4
		  		  	(b)    Accounting Firm Determinations	  	4
		  		  	(c)    Notification of Claims	  	5
		  		  	(d)    Refund	  	6
		  		  	(e)    Insurance	  	6
			
	3.	  	TERMINATION	  	6
		  	3.1	  	Definitions	  	6
		  	3.2	  	Termination Date	  	7
		  	3.3	  	Constructive Termination Without Cause	  	7
		  	3.4	  	Termination Without Cause or Termination For Good Reason or Constructive Termination Without Cause: Benefits	  	9
		  	3.5	  	Base Salary	  	9
		  	3.6	  	Stock Awards	  	9
		  	3.7	  	Other Benefits	  	9
		  	3.8	  	Expenses	  	10
		  	3.9	  	Mitigation	  	10
		  	3.10	  	Maximum Payments	  	10
		  	3.11	  	Net After-Tax Benefit	  	10
		  	3.12	  	Termination In Event of Death: Benefits	  	10
		  	3.13	  	Termination In Event of Disability: Benefits	  	11

  

 i 

							
		  	3.14	  	Voluntary Termination by Employee and Termination for Cause: Benefits	  	11
		  	3.15	  	Termination Procedure	  	11
		  		  	A.    Notice of Termination	  	11
		  		  	B.    Date of Termination	  	11
		  		  	C.    Mitigation	  	11
			
	4.	  	INTENTIONALLY LEFT BLANK	  	12
			
	5.	  	NON-COMPETITION, NON-SOLICITATION, AND CONFIDENTIALITY	  	12
		  	5.1	  	Non-Competition During Employment	  	12
		  	5.2	  	Conflicts of Interest	  	12
		  	5.3	  	Non-Competition After Termination	  	12
		  	5.4	  	Non-Solicitation of Customers	  	13
		  	5.5	  	Non-Solicitation of Employees	  	13
		  	5.6	  	Confidential Information	  	13
		  	5.7	  	Original Material	  	13
		  	5.8	  	Return of Documents, Equipment, Etc.	  	14
		  	5.9	  	Reaffirm Obligations	  	14
		  	5.10	  	Prior Disclosure	  	14
		  	5.11	  	Confidential Information of Prior Companies	  	14
		  	5.12	  	Rights Upon Breach	  	14
		  		  	(a)    Specific Performance	  	14
		  		  	(b)    Accounting	  	15
		  	5.13	  	Remedies For Violation of Non-Competition or Confidentiality Provisions	  	15
		  	5.14	  	Severability of Covenants	  	16
		  	5.15	  	Court Review	  	16
		  	5.16	  	Enforceability in Jurisdictions	  	16
		  	5.17	  	Extension of Post-Employment Restrictions	  	16
			
	6.	  	INDEMNIFICATION	  	16
		  	6.1	  	General	  	16
		  	6.2	  	Expenses	  	16
		  	6.3	  	Enforcement	  	17
		  	6.4	  	Partial Indemnification	  	17
		  	6.5	  	Advances of Expenses	  	17
		  	6.6	  	Notice of Claim	  	17
		  	6.7	  	Defense of Claim	  	17
		  	6.8	  	Non-exclusivity	  	17
			
	7.	  	LEGAL FEES AND EXPENSES	  	18
			
	8.	  	BREACH	  	18
			
	9.	  	RIGHT TO ENTER AGREEMENT	  	18

  

 ii 

							
	10.	  	COMPLIANCE WITH SECTION 409A	  	18
		  	10.2	  	Certain Definitions	  	18
		  	10.3	  	Delay in Payments	  	19
		  	10.4	  	Reformation	  	19
			
	11.	  	ENFORCEABILITY	  	19
			
	12.	  	SURVIVABILITY	  	19
			
	13.	  	ASSIGNMENT	  	19
			
	14.	  	BINDING AGREEMENT	  	19
			
	15.	  	NOTICES	  	20
			
	16.	  	WAIVER	  	20
			
	17.	  	SEVERABILITY	  	20
			
	18.	  	ARBITRATION	  	20
			
	19.	  	ENTIRE AGREEMENT	  	21
			
	20.	  	SECTION HEADINGS	  	21
			
	21.	  	MODIFICATION OF AGREEMENT	  	21
			
	22.	  	UNDERSTANDING OF AGREEMENT	  	21
			
	23.	  	GOVERNING LAW	  	21
			
	24.	  	WITHHOLDING	  	21
			
	25.	  	JURISDICTION AND VENUE	  	21
			
	26.	  	NO PRESUMPTION AGAINST INTEREST	  	22

  

 iii 

 EMPLOYMENT AND NON-COMPETITION AGREEMENT 

This Employment and Non-Competition Agreement (“Agreement”) is entered into as of the 27th day of October, 2009
(the “Effective Date”), between Vantage International Payroll Company Pte. Ltd., a Singapore company (“Company”), and William Laughlan Thomson (“Employee” or
“Executive”). 
 RECITALS: 

WHEREAS, Executive is to be employed as an integral part of its management who participates in the decision-making process relative to
short and long-term planning and policy for the Company; 
 WHEREAS, the Company desires to obtain assurances from the Executive
that he will devote his best efforts to the Company and will not enter into competition with the Company, solicit its customers, or solicit employees of the Company after termination of his employment; 

WHEREAS, Executive will serve as a key employee with special and unique talents and skills of peculiar benefit and importance to the
Company; and 
 WHEREAS, Executive is desirous of committing himself to serve on the terms herein provided; and 

NOW, THEREFORE, in consideration of the foregoing and of the respective covenants and agreements set forth below, the Parties agree as
follows: 
  

	1.	EMPLOYMENT TERM AND DUTIES 

1.1 Term of Employment. Effective as of the Effective Date, the Company hereby agrees to employ Executive
as its Vice President-Engineering and Construction, and Executive hereby agrees to accept such employment, on the terms and conditions set forth herein, for the period commencing on the Effective Date and expiring as of October 27, 2011
(the “Basic Term”) (unless sooner terminated as hereinafter set forth). The Basic Term shall be automatically extended for successive terms of one (1) year commencing on the expiration of the Basic Term and
thereafter on each anniversary of the expiration of the Basic Term (each such date being a “Renewal Date”), so as to terminate one (1) year from such Renewal Date, unless and until at least ninety (90) days prior to
a Renewal Date either party hereto gives written notice to the other that the Term should not be further extended after the next Renewal Date (a “Notice of Non-Renewal”), in which event the Termination Date shall not be less
than one (1) year following receipt of the Notice of Non-Renewal. 
 1.2 Duties as Employee of the
Company. Executive shall, subject to the supervision of the Chief Operating Officer and Board, have general management and control of operations in the ordinary course of its business with all such powers with respect to such management
and control as may be reasonably incident to such responsibilities. Executive shall devote his normal and regular business time, attention and skill to diligently attending to the business of the Company during the Basic Term. During the Basic
Term, Executive shall not directly or indirectly render any services of a business, commercial, or professional nature to any other person, firm, corporation, or organization, whether for compensation or otherwise, without the prior written consent
of the Chairman of the Board. Notwithstanding the foregoing, it shall not be a violation of the Agreement for Executive to (i) serve on corporate, civic or charitable boards or committees, (ii) deliver lectures, fulfill speaking
engagements or teach at educational institutions, and (iii) manage personal investments so long as such activities do not materially interfere or 

 

 1 

 
conflict with the performance of his duties to the Company hereunder. The conduct of such activity shall not be deemed to materially interfere or conflict with Executive’s performance
of his duties until Executive has been notified in writing thereof and given a reasonable period in which to cure the same. 

1.3 Place of Performance. During the Employment Period, the Company shall maintain its executive offices
in Houston, Texas, but the Executive shall be located in other locations, as agreed between Executive and the Company. During the Employment Period, the Company shall provide the Executive with an office and staff and other such facilities and
services as shall be suitable to Executive’s position and adequate for the performance of Executive’s duties hereunder. 

1.4 Fiduciary Duty. Executive acknowledges and agrees that he owes a fiduciary duty to the Company, and
further agrees to make full disclosure to the Company of all business opportunities pertaining to the Company’s business and shall not act for his own benefit concerning the subject matter of his fiduciary relationship. 

1.5 Compliance. Executive agrees that he will not take any action which he knows would not comply with
United States law as applicable to Executive’s employment, including, but without limitation to the Foreign Corrupt Practices Act. 
  

	2.	COMPENSATION AND RELATED MATTERS 

2.1 Base Salary. Executive shall receive a base salary (the “Base Salary”) paid by
the Company at the annual rate of Two Hundred Sixty-Five Thousand ($265,000.00) U.S., payable not less frequently than in substantially equal monthly installments, with the opportunity to increases, from time to time thereafter which are in
accordance with the Company’s regular executive compensation practices. 
 2.2 Bonus
Payments. For each full fiscal year of the Company that begins and ends during the Employment Period, and for the portion of the fiscal year of the Company that begins in 2009 (“Fiscal Year 2009”), the Executive
shall be eligible to earn an annual cash bonus in such amount as shall be determined by the Compensation Committee of the Board (the “Compensation Committee”) (the “Annual Bonus”) based on the
achievement by the Company of performance goals established by the Compensation Committee for each such fiscal year (or portion of Fiscal Year 2009). For the avoidance of any doubt, the period of Executive’s employment from January 2009
through to and including the effective date of the Agreement shall be counted in determining the amount of any compensation under this section in particular and under the Agreement as a whole. The Compensation Committee shall establish objective
criteria to be used to determine the extent to which performance goals have been satisfied. For purposes of this Agreement, net earnings per share is defined as the Company’s consolidated net earnings per share as reported in the
Company’s Annual Report on Form 10-K. The Executive’s annual bonus potential target shall be between seventy percent (70%) and one hundred forty percent (140%) of Base Salary. 

2.3 Expenses. During the Basic Term, Executive shall be entitled to receive prompt reimbursement for all
reasonable expenses incurred by him in accordance with the policies and procedures established by the Compensation Committee for the Company’s senior executive officers in performing services hereunder, provided that Executive properly accounts
for such expenses in accordance with the Company’s policies and procedures. 

2.4 Automobiles. The Company shall provide the Executive with an automobile provided by the Company, or,
in the alternative, an automobile allowance consistent with the practices of the Company. 
  

 2 

 2.5 Business, Travel and Entertainment Expenses. The Company
shall promptly reimburse the Executive for all business, travel and entertainment expenses consistent with the Executive’s titles and the practices of the Company. 

2.6 Vacation. The Executive shall be entitled to six (6) weeks of vacation per year. Vacation not
taken during the applicable fiscal year (but not in excess of two (2) weeks) shall be carried over to the next following fiscal year. 

2.7 Welfare, Pension and Incentive Benefit Plans. During the Employment Period, the Executive (and his
eligible spouse and dependents) shall be entitled to participate in all the welfare benefit plans and programs maintained by the Company from time-to-time for the benefit of its senior executives including, without limitation, all medical,
hospitalization, dental, disability, accidental death and dismemberment and travel accident insurance plans and programs. In addition, during the Employment Period, the Executive shall be eligible to participate in all pension, retirement, savings
and other employee benefit plans and programs maintained from time-to-time by the Company for the benefit of its senior executives, other than any annual cash incentive plan. 

2.8 Dues. During the Employment Period, the Company shall pay or promptly reimburse the Executive for
annual dues for membership in professional organizations relevant to Executive’s job responsibilities. 

2.9 Other Benefits. Executive shall be entitled to participate in or receive benefits under any
compensatory employee benefit plan or other arrangement made available by the Company now or in the future to its senior executive officers and key management employees, subject to and on a basis consistent with the terms, conditions, and overall
administration of such plan or arrangement. Nothing paid to Executive under any plan or arrangement presently in effect or made available in the future shall be deemed to be in lieu of the Base Salary payable to Executive pursuant to
Section 2.1 of this Agreement. The Company shall not make any changes in any employee benefit plans or other arrangements in effect on the date hereof or subsequently in effect in which Executive currently or in the future
participates (including, without limitation, each pension and retirement plan, supplemental pension and retirement plan, savings and profit sharing plan, stock or unit ownership plan, stock or unit purchase plan, stock or unit option plan, life
insurance plan, medical insurance plan, disability plan, dental plan, health and accident plan, or any other similar plan or arrangement) that would adversely affect Executive’s rights or benefits thereunder, unless such change occurs pursuant
to a program applicable to substantially all executives of the Company and does not result in a proportionately greater reduction in the rights of or benefits to Executive as compared with any other executive of the Company. The Company shall
recommend that Executive receive an annual award of restricted stock and/or stock options in Vantage Drilling Company in a dollar amount equal to two and one-half times (2.5 times) Base Salary, based on market studies of industry executives, but
Executive recognizes and agrees that future years could vary significantly as market conditions and industry compensation trends change. 

2.10 Perquisites. Executive shall be entitled to receive the perquisites and fringe benefits appertaining
to an executive officer of the Company, in accordance with any practice established by the Compensation Committee. In addition to the other benefits provided in this Agreement, Executive and his family shall be entitled to receive medical
insurance as that may be provided under the Company’s group program, as such group program may be changed from time-to-time in the future, and Executive shall be entitled to continue to be covered by such group program or, if not permitted
under the terms of the group program, then the Company shall provide Executive with a medical insurance policy providing substantially similar benefits as to the group program, for the period ending on the date of the later to die

  

 3 

 
of Executive or, if Executive is married on the date of his death, Executive’s spouse. Executive shall be entitled to receive the medical benefits defined herein at no cost to the
Executive. However, Executive’s rights pursuant to this subsection shall be void if Executive is terminated for Cause or if Executive voluntarily terminates his employment. 

2.11 Proration. Any payments or benefits payable to Executive hereunder in respect of any calendar year
during which Executive is employed by the Company for less than the entire year, unless otherwise provided in the applicable plan or arrangement, shall be prorated in accordance with the number of days in such calendar year during which he is so
employed. 
 2.12 Signing Bonus. Intentionally left blank. 

2.13 Additional Payments. 

(a) Excise Tax; Gross-Up Payment. Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment or distribution by the Company to or for benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise,
but determined without regard to any additional payments required under this Section (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the
“Code”), or any interest or penalties are incurred by the Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the
“Excise Tax”), then the Executive shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes (including any interest or
penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, the Executive retains an amount of the
Gross-Up Payment equal to the Excise Tax imposed upon the Payments. 
 (b) Accounting Firm
Determinations. All determinations required to be made under this Section 2.12, including whether and when Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in
arriving at such determination, shall be made by a reputable accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Executive within
fifteen (15) business days after the receipt of notice from the Executive that there has been a Payment, or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting a Change of Control of the Company, the Executive shall appoint another reputable accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting
Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined pursuant to this Section, shall be paid by the Company to the Executive within five (5) days after the
receipt of the Accounting Firm’s determination. If the Accounting Firm determines that no Excise Tax is payable by the Executive, it shall furnish the Executive with a written opinion that failure to report the Excise Tax on the
Executive’s applicable federal income tax return would not result in the imposition of a negligence or similar penalty. Any determination by the Accounting Firm shall be binding upon the Company and the Executive. As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments that will not have been made by the Company should have been made (an
“Underpayment”), consistent with the calculations required to be 
  

 4 

 
made hereunder. In the event that the Company exhausts its remedies pursuant to this Section and the Executive thereafter is required to make a payment of any Excise Tax, the Accounting
Firm shall determine the amount of the Underpayment and any applicable penalty that has occurred and the amount of any such Underpayment and any applicable penalty shall be promptly paid by the Company to or for the benefit of the Executive.

 (c) Notification of Claims. The Executive shall notify the Company in writing
of any claims by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than thirty (30) days after the
Executive actually receives notice in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of
the thirty (30) day period following the date on which the Executive gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the
Executive in writing prior to the expiration of such period that it desires to contest such claim, the Executive shall: 

1. give the Company any information reasonably requested by the Company relating to such claim; 

2. take such action in connection with contesting such claim as the Company shall reasonably request in writing from
time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company; 

3. cooperate with the Company in good faith in order to effectively contest such claim; and 

4. permit the Company to participate in any proceedings relating to such claim; 

provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties)
incurred in connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation
and payment of costs and expenses. Without limitation on the foregoing provisions of this Section, the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however,
that if the Company directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount of such payment to the Executive, on an interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax
basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the
statute of limitations relating to payment of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the

  

 5 

 
Company’s control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as
the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 

(d) Refund. If, after the receipt by the Executive of an amount advanced by the Company
pursuant to this Section, the Executive becomes entitled to receive any refund with respect to such claim, the Executive shall (subject to the Company’s complying with the requirements of this Section) promptly pay to the Company the amount of
such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to this Section, a determination is made that the Executive
shall not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days after such determination, then
such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid. 

(e) Insurance. The Company may, from time to time, apply for and take out, in its own name
and at its own expense, naming itself or one or more of its affiliates as the designated beneficiary (which it may change from time to time), policies for life, health, accident, disability or other insurance upon the Executive in any amount or
amounts that it may deem necessary or appropriate to protect its interest. The Executive agrees to aid the Company in procuring such insurance by submitting to medical examinations and by completing, executing and delivering such applications
and other instruments in writing as may reasonably be required by an insurance company or companies to which any application or applications for insurance may be made by or for the Company. 

 

	3.	TERMINATION 

3.1 Definitions. 

A. “Cause” shall mean: 

(i) Material dishonesty which is not the result of an inadvertent or innocent mistake of Executive with respect to
the Company or any of its subsidiaries; 
 (ii) Willful misfeasance or nonfeasance of duty by Executive
intended to injure or having the effect of injuring in some material fashion the reputation, business, or business relationships of the Company or any of its subsidiaries or any of their respective officers, directors, or employees; 

(iii) Material violation by Executive of any material term of this Agreement; 

(iv) Conviction of Executive of any felony, any crime involving moral turpitude or any crime other than a vehicular
offense which could reflect in some material fashion unfavorably upon the Company or any of its subsidiaries; or 

(v) Violation of Sections 1.3 or 1.4 above. 

 

 6 

 3.1.2 Notice to Cure. Executive may not be
terminated for Cause unless and until there has been delivered to Executive written notice from the Board supplying the particulars of Executive’s acts or omissions that the Board believes constitute Cause, a reasonable period of time (not less
than 30 days) has been given to Executive after such notice to either cure the same or to meet with the Board, with his attorney if so desired by Executive, and following which the Board by action of not less than two-thirds of its members furnishes
to Executive a written resolution specifying in detail its findings that Executive has been terminated for Cause as of the date set forth in the notice to Executive. 

3.1.3 For purposes of this Agreement, no act or failure to act by the Executive shall be considered
“willful” if such act is done by the Executive in the good faith belief that such act is or was to be beneficial to the Company or one or more of its businesses, or such failure to act is due to the Executive’s good faith belief that
such action would be materially harmful to the Company or one of its businesses. Cause shall not exist unless and until the Company has delivered to the Executive a copy of a resolution duly adopted by a majority of the Board (excluding the
Executive for purposes of determining such majority) at a meeting of the Board called and held for such purpose after reasonable (but in no event less than thirty days’) notice to the Executive and an opportunity for the Executive, together
with his counsel, to be heard before the Board, finding that in the good faith opinion of the Board that “Cause” exists, and specifying the particulars thereof in detail. This Section shall not prevent the Executive from
challenging in an arbitration proceeding the Board’s determination that Cause exists or that the Executive has failed to cure any act (or failure to act) that purportedly formed the basis for the Board’s determination. 

B. A “Chance of Control” shall be deemed to have occurred if: 

(i) A reverse merger involving the Company or the Parent in which the Company or the Parent, as the case may be, is
the surviving corporation but the shares of common stock of the Company or the Parent (the “Common Stock”) outstanding immediately preceding the merger are converted by virtue of the merger into other property, whether in the
form of securities, cash or otherwise, and the shareholders of the Parent immediately prior to the completion of such transaction hold, directly or indirectly, less than fifty percent (50%) of the beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act, or comparable successor rules) of the surviving entity or, if more than one entity survives the transaction, the controlling entity; or 

(ii) Any “person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the
Securities Exchange Act of 1934) other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of
1934), directly or indirectly, of 50% or more of the Company’s then outstanding voting common stock; or 

(iii) At any time during the period of three (3) consecutive years (not including any period prior to the date
hereof), individuals who at the beginning of such period constituted the Board (and any new director whose election by the Board or whose nomination for election by the Company’s shareholders were approved by a vote of at least two-thirds of
the directors then still in office who either were directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority thereof; or 

 

 7 

 (iv) The shareholders of the Company approve a merger or consolidation
of the Company with any other corporation, other than a merger or consolidation (a) in which a majority of the directors of the surviving entity were directors of the Company prior to such consolidation or merger, and (b) which would
result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being changed into voting securities of the surviving entity) more than 50% of the combined voting
power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation; or 

(v) The shareholders approve a plan of complete liquidation of the Company or an agreement for the sale or
disposition by the Company of all or substantially all of the Company’s assets. 
 C. A
“Disability” shall mean the absence of Executive from Executive’s duties with the Company on a full-time basis for 180 consecutive days, or 180 days in a 365-day period, as a result of incapacity due to
mental or physical illness which results in the Executive being unable to perform the essential functions of his position, with or without reasonable accommodation. 

D. A “Good Reason” shall mean any of the following (without Executive’s
express written consent): 
 (i) Following a Change of Control, a material alteration in the nature or
status of Executive’s title, duties or responsibilities, or the assignment of duties or responsibilities inconsistent with Executive’s status, title, duties and responsibilities; 

(ii) A failure by the Company to continue in effect any employee benefit plan in which Executive was participating,
or the taking of any action by the Company that would adversely affect Executive’s participation in, or materially reduce Executive’s benefits under, any such employee benefit plan, unless such failure or such taking of any action
adversely affects the senior members of corporate management of the Company generally to the same extent; 

(iii) Any material breach by the Company of any provision of this Agreement; 

(iv) Any failure by the Company to obtain the assumption and performance of this Agreement by any successor (by
merger, consolidation, or otherwise) or assign of the Company; or 
 (v) The Company provides written
notice of non-renewal to the Executive. 
 However, Good Reason shall exist with respect to an above specified
matter only if such matter is not corrected by the Company within thirty (30) days of its receipt of written notice of 
  

 8 

 
such matter from Executive, and in no event shall a termination by Executive occurring more than ninety (90) days following the date of the event described above be a termination for Good
reason due to such event. 
 3.2 Termination Date. “Termination Date”
shall mean the date Executive is terminated for any reason pursuant to this Agreement. 
 3.3 Constructive
Termination Without Cause. “Constructive Termination Without Cause” shall mean: Notwithstanding any other provision of this Agreement, the Executive’s employment under this Agreement may be terminated during
the Term by the Executive, which shall be deemed to be constructive termination by the Company without Cause, if one of the following events shall occur without the written consent of the Executive: (i) a reduction in the Executive’s fixed
salary; (ii) the failure of the Company to continue to provide the Executive with office space, related facilities and secretarial assistance that are commensurate with the Executive’s responsibilities to and position with the Company;
(iii) the notification by the Company of the Company’s intention not to observe or perform one or more of the obligations of the Company under this Agreement; or (iv) the failure by the Company to indemnify, pay or reimburse the
Executive at the time and under the circumstances required by this Agreement. Any such termination pursuant to this Section shall be made by the Executive providing written notice to the Company specifying the event relied upon for such
termination and given within sixty (60) days after such event. Any constructive termination pursuant to this Section shall be effective sixty (60) days after the date the Executive has given the Company such written notice
setting forth the grounds for such termination with specificity; provided, however, that the Executive shall not be entitled to terminate this Agreement in respect of any of the grounds set forth above if within sixty (60) days after such
notice the action constituting such ground for termination has been cured and is no longer continuing. 

3.4 Termination Without Cause or Termination For Good Reason or Constructive Termination Without Cause:
Benefits. 
 3.5 Base Salary and Annual Bonus. For a period of twelve (12) months
after the Termination Date, Base Salary and Annual Bonus (as such terms are defined herein) at the rate, and payable quarterly unless such termination is by the Company without Cause, in which even such amount of Base Salary and Annual Bonus shall
be paid in a lump sum within ten (10) days of the Termination Event. 
 3.6 Stock Awards. If
there is a Change of Control or if there is a Termination Event, any stock or stock option award issued pursuant to the 2007 Long Term Incentive Compensation Plan (“Stock Awards”) which Executive has received under this
Agreement shall vest immediately and, if there is a Termination Event, all such Stock Awards shall be exercisable from the date of such Termination Event for the remainder of their term. 

3.7 Other Benefits. To the extent not theretofore paid or provided, the Company shall timely pay or
provide to Executive any other amounts or benefits required to be paid or provided or which Executive is eligible to receive under any plan, program, policy or practice, or contract or agreement of the Company and its affiliated companies for the
period of time equal to the remainder of the Basic Term (such other amounts and benefits shall be hereinafter referred to as the “Other Benefits”). Without limiting the preceding sentence and without limiting any other
provision of this Agreement, through the remaining Basic Term, but under no condition less than one (1) year, the Company, at its sole expense, shall continue to provide (through its own plan and/or individual policies) Executive (and
Executive’s dependents) with health benefits no less favorable than the group health plan benefits provided during such period to any senior executive officer of the Company or any affiliated company (to the extent any

  

 9 

 
such coverage or benefits are taxable to Executive by reason of being provided under a self-insured health plan of the Company or an affiliate, the Company shall make Executive “whole”
for the same on an after-tax basis). In any event, the Other Benefits provided for pursuant to this Section shall be secondary to any benefits and coverage Executive (or his dependents) receive from another employer. 

3.8 Expenses. All accrued compensation and unreimbursed expenses through the Termination Date. Such
amounts shall be paid to Executive in a lump sum in cash within thirty (30) days after the Termination Date; and 

3.9 Mitigation. Executive shall be free to accept other employment during such period, subject to the
limitation as set forth in Section 5 of this Agreement and there shall be no offset of any employment compensation earned by Executive in such other employment during such period against payments due Executive under this
Section 3, and there shall be no offset in any compensation received from such other employment against the Base Salary set forth above. 

3.10 Maximum Payments. It is the objective of this Agreement to maximize the Executive’s Net
After-Tax Benefit (as defined herein) if payments or benefits provided under this Section are subject to excise tax under Section 4999 of the Code. Therefore, in the event it is determined that any payment or benefit by the Company to
or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Section or otherwise, including, by example and not by way of limitation, acceleration by the Company or otherwise of the
date of vesting or payment or rate of payment under any plan, program or arrangement of the Company, would be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties with respect to such excise tax (such
excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), the Company shall first make a calculation under which such payments or benefits provided to the
Executive under this Agreement are reduced to the extent necessary so that no portion thereof shall be subject to the excise tax imposed by Section 4999 of the Code (the “4999 Limit”). The Company shall then compare
(x) the Executive’s Net After-Tax Benefit assuming application of the 4999 Limit with (y) the Executive’s Net After-Tax Benefit without the application of the 4999 Limit and the Executive shall be entitled to the greater of
(x) or (y). 
 3.11 Net After-Tax Benefit. “Net After-Tax Benefit”
shall mean the sum of (i) all payments and benefits which the Executive receives or is then entitled to receive from the Company, less (ii) the amount of federal income taxes payable with respect to the payments and benefits described in
(i) above calculated at the maximum marginal income tax rate for each year in which such payments and benefits shall be paid to the Executive (based upon the rate for such year as set forth in the Code at the time of the first payment of the
foregoing), less (iii) the amount of excise taxes imposed with respect to the payments and benefits described in (i) above by Section 4999 of the Code. The determination of whether a payment or benefit constitutes an excess
parachute payment shall be made by tax counsel selected by the Company and reasonably acceptable to the Executive. The costs of obtaining this determination shall be borne by the Company. 

3.12 Termination In Event of Death: Benefits. If Executive’s employment is terminated by reason
of Executive’s death during the Basic Term, this Agreement shall terminate, except as provided herein, without further obligation to Executive’s legal representatives under this Agreement, other than for payment of all accrued
compensation, unreimbursed expenses, the timely payment or provision of Other Benefits through the date of death, one (1) year’s Base Salary, and such cash or stock bonus as Executive would otherwise have been awarded in year if
Executive’s death had not occurred. Such amounts shall be paid to Executive’s estate or beneficiary, as applicable, in a lump sum in cash within ninety (90) days after the date of death. With respect to the provision of
Other Benefits, the term Other 
  

 10 

 
Benefits as used in this Section shall include, without limitation, and Executive’s estate and/or beneficiaries shall be entitled to receive, benefits at least equal to the most
favorable benefits provided by the Company to the estates and beneficiaries of other executive level employees of the Company under such plans, programs, practices, and policies relating to death benefits, if any, as in effect with respect to other
executives and their beneficiaries at any time during the 120-day period immediately preceding the date of death. Additionally, all Stock Awards shall be vested immediately and shall be exercisable for the greater of one year after the date of
such vesting or the remaining term of such option. 
 3.13 Termination In Event of
Disability: Benefits. If Executive’s employment is terminated by reason of Executive’s Disability during the Basic Term, this Agreement shall continue in full force for a period of one (1) year following such
Disability and if such Disability occurs on or after January 1 of any year Executive shall be entitled to the same cash or stock bonus in such year that Executive would have been awarded if such Disability had not occurred. In addition, all
outstanding Stock Awards shall vest immediately upon such termination due to Disability. 
 3.14 Voluntary
Termination by Employee and Termination for Cause: Benefits. Executive may terminate his employment with the Company without Good Reason by giving written notice of his intent and stating an effective Termination Date at least ninety
(90) days after the date of such notice; provided, however, that the Company may accelerate such effective date by paying Executive through the proposed Termination Date and also vesting awards that would have vested but for this acceleration
of the proposed Termination Date and also vesting awards that would have vested but for this acceleration of the proposed Termination Date. Upon such a termination by Executive, except as provided in Section 5, or upon
termination for Cause by the Company, this Agreement shall terminate and the Company shall pay to Executive all accrued compensation, unreimbursed expenses and the Other Benefits through the Termination Date. Such amounts shall be paid to
Executive in a lump sum in cash within thirty (30) days after the date of termination. In addition, all unvested stock options shall terminate and all vested options will terminate one hundred twenty (120) days after the Termination
Date. 
 3.15 Termination Procedure. 

A. Notice of Termination. Any termination of the Executive’s employment by the Company or by
the Executive during the Employment Period (other than pursuant to Section 3.5) shall be communicated by written Notice of Termination to the other party. For purposes of this Agreement, a “Notice of
Termination” shall mean a notice indicating the specific termination provision in this Agreement relied upon and setting forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under that provision. 
 B. Date of
Termination. “Date of Termination” shall mean (i) if the Executive’s employment is terminated by his death, the date of his death, (ii) if the Executive’s employment is terminated pursuant to
Section 3.6, thirty (30) days after the date of receipt of the Notice of Termination (provided that the Executive does not return to the substantial performance of his duties on a full-time basis during such thirty
(30) day period), and (iii) if the Executive’s employment is terminated for any other reason, the date on which a Notice of Termination is given or any later date (within thirty (30) days after the giving of such notice) set
forth in such Notice of Termination. 
 C. Mitigation. The Executive shall not be
required to mitigate damages with respect to the termination of his employment under this Agreement by seeking other employment or otherwise, and there shall be no offset against amounts due the Executive under this Agreement

  

 11 

 
on account of subsequent employment except as specifically provided in this Agreement. Additionally, amounts owed to the Executive under this Agreement shall not be offset by any claims the
Company may have against the Executive, and the Company’s obligation to make the payments provided for in this Agreement, and otherwise to perform its obligations hereunder, shall not be affected by any other circumstances, including, without
limitation, any counterclaim, recoupment, defense or other right which the Company may have against the Executive or others. 
  

	4.	Intentionally left blank 

  

	5.	NON-COMPETITION, NON-SOLICITATION, AND CONFIDENTIALITY 

The Company shall provide Executive with its trade secrets, goodwill, and confidential information of Company and contact with the
Company’s customers and potential customers. Executive also recognizes and agrees that the benefit of not being employed at-will, is provided in consideration for, among other things, the agreements contained in this Section, as well as
the Stock Awards granted to Executive pursuant to this Agreement. Executive agrees that the business of the Company is highly competitive and that the trade secrets, goodwill, and confidential information of the Company is of primary importance
to the success of the Company. In consideration of all of the foregoing, and in recognition of these conditions, and specifically for being provided trade secrets, goodwill, and confidential information, Executive agrees as follows: 

5.1 Non-Competition During Employment. Executive agrees during the Basic Term he will not compete with the
Company by engaging in the conception, design, development, production, marketing, or servicing of any product or service that is substantially similar to the products or services which the Company provides, and that he will not work for, in any
capacity, assist, or became affiliated with as an owner, partner, etc., either directly or indirectly, any individual or business which offer or performs services, or offers or provides products substantially similar to the services and products
provided by Company. 
 5.2 Conflicts of Interest. Executive agrees that during the Basic Term,
he will not engage, either directly or indirectly, in any activity (a “Conflict of Interest”) which might adversely affect the Company or its affiliates, including ownership of a material interest in any supplier, contractor,
distributor, subcontractor, customer or other entity with which the Company does business or accepting any material payment, service, loan, gift, trip, entertainment, or other favor from a supplier, contractor, distributor, subcontractor, customer
or other entity with which the Company does business, and that Executive will promptly inform the Chairman of the Company as to each offer received by Executive to engage in any such activity. Executive further agrees to disclose to the Company any
other facts of which Executive becomes aware which might in Executive’s good faith judgment reasonably be expected to involve or give rise to a Conflict of Interest or potential Conflict of Interest. 

5.3 Non-Competition After Termination. In further consideration of the Company providing Employee
confidential information, executive agrees that Executive shall not, at any time during the period of one (1) year after termination within the geographic area as defined by this Section 5 that the Company has sold products
or services or formulated a plan to sell products or services into a market during the last twelve (12) months of Executive’s employ, engage in or contribute Executive’s knowledge to any work which is competitive with or similar to a
product, process, apparatus, services, or 
  

 12 

 
development on which Executive worked or with respect to which Executive had access to Confidential Information while employed by the Company. It is understood that the geographical area set
forth in this covenant is divisible so that if this clause is invalid or unenforceable in an included geographic area, that area is severable and the clause remains in effect for the remaining included geographic areas in which the clause is valid.
For purposes of this Section 5.3, the geographic area shall apply to the territory or country where the Company conducts operations. 

5.4 Non-Solicitation of Customers. In further consideration of the Company providing Employees
confidential information, Executive further agrees that for a period of one (1) year after termination, he will not solicit or accept any business from any customer or client or prospective customer or client with whom Executive dealt or
solicited while employed by Company during the last twelve (12) a months of his employment. 

5.5 Non-Solicitation of Employees. Executive agrees that for the duration of the Basic Term, and for a
period of one (1) year after the termination of the Basic Term, he will not either directly or indirectly, on his own behalf or on behalf of others, solicit, attempt to hire, or hire any person employed by Company to work for Executive or for
another entity, firm, corporation, or individual. 
 5.6 Confidential Information. Executive
further agrees that he will not, except as the Company may otherwise consent or direct in writing, reveal or disclose, sell, use, lecture upon, publish or otherwise disclose to any third party any Confidential Information or proprietary information
of the Company, or authorize anyone else to do these things at any time either during or subsequent to his employment with the Company. This Section shall continue in full force and effect after termination of Executive’s employment
and after the termination of this Agreement. Executive shall continue to be obligated under the Confidential Information Section of this Agreement not to use or to disclose Confidential Information of the Company so long as it shall not be
publicly available. Executive’s obligations under this Section with respect to any specific Confidential Information and proprietary information shall cease when that specific portion of the Confidential Information and proprietary
information becomes publicly known, in its entirety and without combining portions of such information obtained separately. It is understood that such Confidential Information and proprietary information of the Company include matters that
Executive conceives or develops, as well as matters Executive learns from other employees of Company. Confidential Information is defined to include information: (1) disclosed to or known by the Executive as a consequence of or through his
employment with the Company; (2) not generally known outside the Company; and (3) which relates to any aspect of the Company or its business, finances, operation plans, budgets, research, or strategic development. “Confidential
Information” includes, but is not limited to the Company’s trade secrets, proprietary information, financial documents, long range plans, customer lists, employer compensation, marketing strategy, data bases, costing data, computer
software developed by the Company, investments made by the Company, and any information provided to the Company by a third party under restrictions against disclosure or use by the Company or others. 

5.7 Original Material. The Executive agrees that any inventions, discoveries, improvements, ideas,
concepts or original works of authorship relating directly to the Company Business, including without limitation information of a technical or business nature such as ideas, discoveries, designs, inventions, improvements, trade secrets, know-how,
manufacturing processes, product formulae, design specifications, writings and other works of authorship, computer programs, financial figures, marketing plans, customer lists and data, business plans or methods and the like, which relate in any
manner to the actual or anticipated business or the actual or anticipated areas of research and development of the Company and its divisions and affiliates, whether or not protectable by patent or copyright, that have been originated, developed or
reduced to practice by the Executive alone or jointly with others 
  

 13 

 
during the Executive’s employment with the Company shall be the property of and belong exclusively to the Company. The Executive shall promptly and fully disclose to the Company the
origination or development by the Executive of any such material and shall provide the Company with any information that it may reasonably request about such material. Either during the subsequent to the Executive’s employment, upon the
request and at the expense of the Company or its nominee, and for no remuneration in addition to that due the Executive pursuant to the Executive’s employment by the Company, but at no expense to the Executive, the Executive agrees to execute,
acknowledge, and deliver to the Company or its attorneys any and all instruments which, in the judgment of the Company or its attorneys, may be necessary or desirable to secure or maintain for the benefit of the Company adequate patent, copyright,
and other property rights in the United States and foreign countries with respect to any such inventions, improvements, ideas, concepts, or original works of authorship embraced within this Agreement. 

5.8 Return of Documents, Equipment, Etc. All writings, records, and other documents and things comprising,
containing, describing, discussing, explaining, or evidencing any Confidential Information, and all equipment, components, parts, tools, and the like in Executive’s custody or possession that have been obtained or prepared in the course of
Executive’s employment with the Company shall be the exclusive property of the Company, shall not be copied and/or removed from the premises of the Company, except in pursuit of the business of the Company, and shall be delivered to the
Company, without Executive retaining any copies, upon notification of the termination of Executive’s employment or at any other time requested by the Company. The Company shall have the right to retain, access, and inspect all property of
Executive of any kind in the office, work area, and on the premises of the Company upon termination of Executive’s employment and at any time during employment by the Company upon termination of Executive’s employment and at any time
during employment by the Company to ensure compliance with the terms of this Agreement. 
 5.9 Reaffirm
Obligations. Upon termination of his employment with the Company, Executive, if requested by Company, shall reaffirm in writing Executive’s recognition of the importance of maintaining the confidentiality of the Company’s
Confidential Information and proprietary information, and reaffirm any other obligations set forth in this Agreement. 

5.10 Prior Disclosure. Executive represents and warrants that he has not used or disclosed any
Confidential Information he may have obtained from Company prior to signing this Agreement, in any way inconsistent with the provisions of this Agreement. 

5.11 Confidential Information of Prior Companies. Executive will not disclose or use during the period of
his employment with the Company any proprietary or Confidential Information or Copyright Works which Executive may have acquired because of employment with an employer other than the Company or acquired from any other third party, whether such
information is in Executive’s memory or embodied in a writing or other physical form 
 5.12 Rights Upon
Breach. If the Executive breaches, any of the provisions contained in Section 5 of this Agreement (the “Restrictive Covenants”), the Company shall have the following rights and remedies, each
of which rights and remedies shall be independent of the others and severally enforceable, and each of which is in addition to, and not in lieu of, any other rights and remedies available to the Company under law or in equity: 

(a) Specific Performance. The right and remedy to have the Restrictive Covenants
specifically enforced by any court of competent jurisdiction, it being agreed that any breach of the Restrictive Covenants would cause irreparable injury to the Company and that money damages would not provide an adequate remedy to the Company.

  

 14 

 (b) Accounting. The right and remedy to
require the Executive to account for and pay over to the Company all compensation, profits, monies, accruals, increments or other benefits derived or received by the Executive as the result of any action constituting a breach of the Restrictive
Covenants. 
 5.13 Remedies For Violation of Non-Competition or Confidentiality Provisions. Without
limiting the right of the Company to pursue all other legal and equitable rights available to it for violation of any of the obligations and covenants made by Employee herein, it is agreed that: 

(a) the skills, experience and contacts of Employee are of a special, unique, unusual and extraordinary
character which give them a peculiar value; 
 (b) because of the business of the Company, the
restrictions agreed to by Employee as to time and area contained in the Agreement are reasonable; and 

(c) the injury suffered by the Company by a violation of any obligation or covenant in the Agreement resulting
from loss of profits created by (i) the competitive use of such skills, experience contacts and otherwise and/or (ii) the use or communication of any information deemed confidential herein will be difficult to calculate in damages in an
action at law and cannot fully compensate the Company for any violation of any obligation or covenant in the Agreement, accordingly: 

(i) the Company shall be entitled to injunctive relief to prevent violations thereof and prevent Employee from
rendering any services to any person, firm or entity in breach of such obligation or covenant and to prevent Employee from divulging any confidential information; and 

(ii) compliance with the Agreement is a condition precedent to the Company’s obligation to make payments of any
nature to employee, subject to the other provisions hereof. 
 (d) employee waives any objection to
the enforceability of the restrictive covenants and agrees to be estopped from denying the legality and enforceability of these provisions. 
  

 15 

 5.14 Severability of Covenants. The Executive acknowledges
and agrees that the Restrictive Covenants are reasonable and valid in duration and geographical scope and in all other respects. If any court determines that any of the Restrictive Covenants, or any part thereof, is invalid or unenforceable,
the remainder of the Restrictive Covenants shall not thereby be affected and shall be given full effect without regard to the invalid portions. 

5.15 Court Review. If any court determines that any of the Restrictive Covenants, or any part thereof is
unenforceable because of the duration or geographical scope of or scope of activities restrained by, such provision, such court shall have the power to reduce the duration or scope of such provision, as the case may be, and, in its reduced form,
such provision shall then be enforceable. 
 5.16 Enforceability in Jurisdictions. The Company
and the Executive intend to and hereby confer jurisdiction to enforce the Restrictive Covenants upon the courts of any jurisdiction within the geographical scope of such Restrictive Covenants. If the courts of any one or more of such
jurisdictions hold the Restrictive Covenants unenforceable by reason of the breadth of such scope or otherwise, it is the intention of the Company that such determination not bar or in any way affect the right of the Company to the relief provided
above in the courts of any other jurisdiction within the geographical scope of such Restrictive Covenants, as to breaches of such Restrictive Covenants in such other respective jurisdictions, such Restrictive Covenants as they relate to each
jurisdiction being, for this purpose, severable into diverse and independent covenants. 
 5.17 Extension of
Post-Employment Restrictions. In the event Executive breaches Section 5 above, the restrictive time periods contained in those provisions will be extended by the period of time Executive was in violation of such
provisions. 
  

	6.	INDEMNIFICATION 

6.1 General. The Company agrees that if the Executive is made a party or is threatened to be made a party
to any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that the Executive is or was a trustee, director or officer of the Company, the Company, or
any predecessor to the Company (including any sole proprietorship owned by the Executive) or any of their affiliates or is or was serving at the request of the Company, the Company, any predecessor to the Company (including any sole proprietorship
owned by the Executive), or any of their affiliates as a trustee, director, officer, member, employee or agent of another corporation or a partnership, joint venture, limited liability company, trust or other enterprise, including, without
limitation, service with respect to employee benefit plans, whether or not the basis of such Proceeding is alleged action in an official capacity as a trustee, director, officer, member, employee or agent while serving as a trustee, director,
officer, member, employee or agent, the Executive shall be indemnified and held harmless by the Company to the fullest extent authorized by Texas, Delaware or Cayman Islands law, as the same exists or may hereafter be amended, against all Expenses
incurred or suffered by the Executive in connection therewith, and such indemnification shall continue as to the Executive even if the Executive has ceased to be an officer, director, trustee or agent, or is no longer employed by the Company and
shall inure to the benefit of his heirs, executors and administrators. 
 6.2 Expenses. As used
in this Section, the term “Expenses” shall include, without limitation, damages, losses, judgments, liabilities, fines, penalties, excise taxes, settlements, and costs, attorneys’ fees, accountants’ fees, and
disbursements and costs of attachment or similar bonds, investigations, and any expenses of establishing a right to indemnification under this Agreement. 
  

 16 

 6.3 Enforcement. If a claim or request under this
Section 6 is not paid by the Company or on its behalf, within thirty (30) days after a written claim or request has been received by the Company, the Executive may at any time thereafter bring an arbitration claim against the
Company to recover the unpaid amount of the claim or request and if successful in whole or in part, the Executive shall be entitled to be paid also the expenses of prosecuting such suit. All obligations for indemnification hereunder shall be
subject to, and paid in accordance with, applicable Texas or Delaware law. 
 6.4 Partial
Indemnification. If the Executive is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of any Expenses, but not, however, for the total amount thereof, the Company shall nevertheless
indemnify the Executive for the portion of such Expenses to which the Executive is entitled. 
 6.5 Advances
of Expenses. Expenses incurred by the Executive in connection with any Proceeding shall be paid by the Company in advance upon request of the Executive that the Company pay such Expenses, but only in the event that the Executive shall
have delivered in writing to the Company (i) an undertaking to reimburse the Company for Expenses with respect to which the Executive is not entitled to indemnification and (ii) a statement of his good faith belief that the standard of
conduct necessary for indemnification by the Company has been met. 
 6.6 Notice of Claim. The
Executive shall give to the Company notice of any claim made against him for which indemnification will or could be sought under this Agreement. In addition, the Executive shall give the Company such information and cooperation as it may
reasonably require and as shall be within the Executive’s power and at such times and places as are convenient for the Executive. 

6.7 Defense of Claim. With respect to any Proceeding as to which the Executive notifies the Company of the
commencement thereof: 
 (a) The Company will be entitled to participate therein at its own expense.

 (b) Except as otherwise provided below, to the extent that it may wish, the Company will be
entitled to assume the defense thereof, with counsel reasonably satisfactory to the Executive, which in the Company’s sole discretion may be regular counsel to the Company and may be counsel to other officers and directors of the Company or any
subsidiary. The Executive also shall have the right to employ his own counsel in such action, suit or proceeding if he reasonably concludes that failure to do so would involve a conflict of interest between the Company and the Executive, and
under such circumstances the fees and expenses of such counsel shall be at the expense of the Company. 

(c) The Company shall not be liable to indemnify the Executive under this Agreement for any amounts paid in
settlement of any action or claim effected without its written consent. The Company shall not settle any action or claim in any manner which would impose any penalty that would not be paid directly or indirectly by the Company or limitation on
the Executive without the Executive’s written consent. Neither the Company nor the Executive will unreasonably withhold or delay their consent to any proposed settlement. 

6.8 Non-exclusivity. The right to indemnification and the payment of expenses incurred in defending a
Proceeding in advance of its final disposition conferred in this Section 6 shall not be exclusive of any other right which the Executive may have or hereafter may acquire under any statute or certificate of incorporation or
by-laws of the Company or any subsidiary, agreement, vote of shareholders or disinterested directors or trustees or otherwise. 
  

 17 

	7.	LEGAL FEES AND EXPENSES 

If any contest or dispute shall arise between the Company and the Executive regarding any provision of this Agreement, the Company shall
reimburse the Executive for all legal fees and expenses reasonably incurred by the Executive in connection with such contest or dispute, but only if the Executive prevails to a substantial extent with respect to the Executive’s claims brought
and pursued in connection with such contest or dispute. Such reimbursement shall be made as soon as practicable following the resolution of such contest or dispute (whether or not appealed) to the extent the Company receives reasonable written
evidence of such fees and expenses. The Company shall advance the Executive reasonable attorney’s fees during any arbitration proceedings if brought by the Executive, up to but not to exceed Five Hundred Thousand Dollars ($500,000.00).

  

	8.	BREACH 

 Executive agrees
that any breach of restrictive covenants above cannot be remedied solely by money damages, and that in addition to any other remedies Company may have, Company is entitled to obtain injunctive relief against Executive. Nothing herein, however,
shall be construed as limiting Company’s right to pursue any other available remedy at law or in equity, including recovery of damages and termination of this Agreement and/or any payments that may be due pursuant to this Agreement. 

 

	9.	RIGHT TO ENTER AGREEMENT 

Executive represents and covenants to Company that he has full power and authority to enter into this Agreement and that the execution of
this Agreement will not breach or constitute a default of any other agreement or contract to which he is a party or by which he is bound. 
  

	10.	COMPLIANCE WITH SECTION 409A 

10.1 It is the intention of the Company and the Executive that this Agreement not result in unfavorable tax consequences to
the Executive under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). The Company and the Executive acknowledge that Section 409A of the Code was enacted pursuant to the American Jobs
Creation Act of 2004, generally effective with respect to amounts deferred after January 1, 2005, and only limited guidance has been issued by the Internal Revenue Service with respect to the application of Code Section 409A to certain
arrangements, such as this Agreement. The Internal Revenue Service has indicated that it will provide further guidance regarding interpretation and application of Section 409A of the Code during 2005. The Company and the Executive
acknowledge further that the full effect of Section 409A of the Code on potential payments pursuant to this Agreement cannot be fully determined at the time that the Company and the Executive are entering into this Agreement. The Company and
the Executive agree to work together in good faith in an effort to comply with Section 409A of the Code including, if necessary, amending the Agreement based on further guidance issued by the Internal Revenue Service from time to time, provided
that the Company shall not be required to assume any increased economic burden. 
 10.2 Certain
Definitions. As used in this Agreement, the following terms have the following meanings unless the context otherwise requires: 

(a) “affiliate” means any person controlled by or under common control with the
Company but shall not include any stockholder or director of the Company, as such. 
  

 18 

 (b) “person” means any individual,
corporation, partnership, limited liability company, firm, joint company, association, joint-stock company, trust, unincorporated organization, governmental or regulatory body or other entity. 

10.3 Delay in Payments. Notwithstanding anything to the contrary in this Agreement, (i) if upon the
date of Executive’s termination of employment with the Company, Executive is a “specified employee” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, or any regulations or Treasury guidance
promulgated thereunder (the “Code”) and the deferral of any amounts otherwise payable under this Agreement as a result of Executive’s termination of employment is necessary in order to prevent any accelerated or
additional tax to Executive under Code Section 409A, then the Company will defer the payment of any such amounts hereunder until the date that is six months following the date of Executive’s termination of employment with the Company, at
which time any such delayed amounts will be paid to Executive in a single lump sum, with interest from the date otherwise payable at the prime rate as published in The Wall Street Journal on the date of Executive’s termination of employment
with the Company, and (ii) if any other payments of money or other benefits due to Executive hereunder could cause the application of an accelerated or additional tax under Code Section 409A, such payments or other benefits shall be
deferred if deferral will make such payment or other benefits compliant under Code Section 409A. 

10.4 Reformation. If any provision of this Agreement would cause Executive to occur any additional tax
under Code Section 409A, the parties will in good faith attempt to reform the provision in a manner that maintains, to the extent possible, the original intent of the applicable provision without violating the provision of Code
Section 409A. 
  

	11.	ENFORCEABILITY 

 The
agreements contained in the restrictive covenant provisions of this Agreement are independent of the other agreements contained herein. Accordingly, failure of the Company to comply with any of its obligations outside of such Sections do not
excuse Executive from complying with the agreements contained herein. 
  

	12.	SURVIVABILITY 

 The
agreements contained in Sections 5 shall survive the termination of this Agreement for any reason. 
  

	13.	ASSIGNMENT 

 This
Agreement cannot be assigned by Executive. The Company may assign this Agreement only to a successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially Al of the business and assets of the Company
provided such successor expressly agrees in writing reasonably satisfactory to Executive to assume and perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession and
assignment had taken place. Failure of the Company to obtain such written agreement prior to the effectiveness of any such succession shall be a material breach of this Agreement. 

 

	14.	BINDING AGREEMENT 

Executive understands that his obligations under this Agreement are binding upon Executive’s heirs, successors, personal
representatives, and legal representatives. 
  

 19 

	15.	NOTICES 

 All notices
pursuant to this Agreement shall be in writing and sent certified mail, return receipt requested, addressed as set forth below, or by delivering the same in person to such party, or by transmission by facsimile to the number set forth
below. Notice deposited in the manner described hereinabove, shall be effective upon deposit. Notice given in any other manner shall be effective only if and when received: 

If to Executive: 

William Thomson 

1 Jalan Kilang Timor, 

#07-01 Pacific Tech Centre, 

Singapore 159303 

If to Company: 

Vantage International Payroll Company Pte. Ltd. 

c/o Vantage Drilling Company 

777 Post Oak Blvd., Suite 610 

Houston, Texas 77056 
  

	16.	WAIVER 

 No waiver by
either party to this Agreement of any right to enforce any term or condition of this Agreement, or of any breach hereof shall be deemed a waiver of such right in the future or of any other right or remedy available under this Agreement. The
Executive’s or the Company’s failure to insist upon strict compliance with any provision hereof or any other provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder, including, without
limitation, the right of the Executive to terminate employment for Good Reason pursuant to Section 3.2 hereof, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

  

	17.	SEVERABILITY 

 If any
provision of this Agreement is determined to be void invalid, unenforceable, or against public policy, such provisions shall be deemed severable from the Agreement, and the remaining provisions of the Agreement will remain unaffected and in full
force and effect. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 

 

	18.	ARBITRATION 

 In the event
any dispute arises out of Executive’s employment with or by the Company, or separation/termination therefrom, whether as an employee, which cannot be resolved by the Parties to this Agreement, such dispute shall be submitted to final and
binding arbitration. The arbitration shall be conducted in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association (“AAA”). If the Parties cannot
agree on an arbitrator, a list of seven 
  

 20 

 
(7) arbitrators will be requested from AAA, and the arbitrator will be selected using alternate strikes with Executive striking firm. The cost of the arbitration will be borne solely by the
Company. Arbitration of such disputes is mandatory and in lieu of any and all civil causes of action and lawsuits either party may have against the other arising out of Executive’s employment with Company, or separation
therefrom. Such arbitration shall be held in Houston, Texas. This provision shall not, however, preclude the Company from obtaining injunctive relief in any court of competent jurisdiction to enforce Section 5 of this
Agreement. 
  

	19.	ENTIRE AGREEMENT 

 The
terms and provisions contained herein shall constitute the entire agreement between the parties with respect to Executive’s employment with Company during the time period covered by this Agreement. This Agreement replaces and supersedes any and
all existing Agreements entered into between Executive and the Company relating generally to the same subject matter, if any, except the offer of employment to Executive, and shall be binding upon Executive’s heirs, executors, administrators,
or other legal representatives or assigns. 
  

	20.	SECTION HEADINGS 

The section headings in this Employment Agreement are for convenience of reference only, and they form no part of this Agreement and shall
not affect its interpretation. 
  

	21.	MODIFICATION OF AGREEMENT 

This Agreement may not be changed or modified or released or discharged or abandoned or otherwise terminated, in whole or in part, except
by an instrument in writing signed by the Executive and an officer or other authorized executive of Company. 
  

	22.	UNDERSTANDING OF AGREEMENT 

Executive represents and warrants that he has read and understood each and every provision of this Agreement, and Executive understands
that he has the right to obtain advice from legal counsel of choice, if necessary and desired, in order to interpret any and all provisions of this Agreement, and that Executive has freely and voluntarily entered into this Agreement. 

 

	23.	GOVERNING LAW 

 This
Agreement shall be governed by and construed in accordance with the laws of the State of Texas. 
  

	24.	WITHHOLDING 

 All payments
hereunder shall be subject to any required withholding of Federal, state and local taxes pursuant to any applicable law or regulation, except as provided in any tax equalization program or policy adopted by the Company for expatriate employees.

  

	25.	JURISDICTION AND VENUE 

With respect to any litigation regarding this Agreement, Executive agrees to venue in the state or federal courts in Harris County, Texas
and agrees to waive and does hereby waive any defenses and/or 
  

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arguments based upon improper venue and/or lack of personal jurisdiction. By entering into this Agreement, Executive agrees to personal jurisdiction in the state and federal courts in Harris
County, Texas. 
  

	26.	NO PRESUMPTION AGAINST INTEREST 

This Agreement has been negotiated, drafted, edited and reviewed by the respective parties, and therefore, no provision arising directly
or indirectly herefrom shall be construed against any party as being drafted by said party. 
 IN WITNESS WHEREOF, the parties
hereto have executed this Agreement on the date first above written. 
 EXECUTIVE 

 

	
	 /s/ William L. Thomson

	 WILLIAM LAUGHLAN THOMSON

VANTAGE INTERNATIONAL PAYROLL COMPANY PTE. LTD. 
  

			
	By:	 	 /s/ Paul A. Bragg

	Name:	 	 Paul A. Bragg

	Title:	 	 Chief Executive Officer

 

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