Document:

exv10w1

Exhibit 10.1

FORM OF

TRANSITION SERVICES AGREEMENT

BETWEEN

PRIDE INTERNATIONAL, INC.

(as service provider)

and

SEAHAWK DRILLING, INC.

(as service receiver)

Dated [__________]

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page No.
	 	 	 
	 	 	 	 
	ARTICLE I DEFINITIONS	 	 	1	 
	    Section 1.1
	 	Definitions

	 	 	1	 
	 	 	 
	 	 	 	 
	ARTICLE II SERVICES	 	 	2	 
	    Section 2.1
	 	Services

	 	 	2	 
	    Section 2.2
	 	Service Coordinators

	 	 	2	 
	    Section 2.3
	 	Third Party Services

	 	 	3	 
	    Section 2.4
	 	Standard of Performance; Limitation of Liability

	 	 	3	 
	    Section 2.5
	 	Service Boundaries and Scope

	 	 	4	 
	    Section 2.6
	 	Cooperation

	 	 	4	 
	    Section 2.7
	 	Transitional Nature of Services; Changes

	 	 	4	 
	    Section 2.8
	 	Access

	 	 	4	 
	 	 	 
	 	 	 	 
	ARTICLE III SERVICE CHARGES	 	 	5	 
	    Section 3.1
	 	Compensation

	 	 	5	 
	 	 	 
	 	 	 	 
	ARTICLE IV PAYMENT	 	 	5	 
	    Section 4.1
	 	Payment

	 	 	5	 
	    Section 4.2
	 	Payment Disputes

	 	 	5	 
	    Section 4.3
	 	Error Correction

	 	 	5	 
	    Section 4.4
	 	Taxes

	 	 	5	 
	    Section 4.5
	 	Records

	 	 	6	 
	 	 	 
	 	 	 	 
	ARTICLE V TERM	 	 	6	 
	 	 	 
	 	 	 	 
	ARTICLE VI DISCONTINUATION OF SERVICES	 	 	6	 
	    Section 6.1
	 	Discontinuation of Services

	 	 	6	 
	    Section 6.2
	 	Procedures Upon Discontinuation or Termination of Services

	 	 	7	 
	 	 	 
	 	 	 	 
	ARTICLE VII DEFAULT	 	 	7	 
	 	 	 
	 	 	 	 
	ARTICLE VIII INDEMNIFICATION AND WAIVER	 	 	7	 
	    Section 8.1
	 	Waiver of Consequential Damages

	 	 	7	 
	    Section 8.2
	 	Services Received

	 	 	8	 
	    Section 8.3
	 	Express Negligence

	 	 	9	 
	 	 	 
	 	 	 	 
	ARTICLE IX CONFIDENTIALITY	 	 	9	 
	 	 	 
	 	 	 	 
	ARTICLE X FORCE MAJEURE	 	 	9	 
	    Section 10.1
	 	Performance Excused

	 	 	9	 
	    Section 10.2
	 	Notice

	 	 	9	 
	    Section 10.3
	 	Cooperation

	 	 	10	 
	 	 	 
	 	 	 	 
	ARTICLE XI MISCELLANEOUS	 	 	10	 
	    Section 11.1
	 	Construction Rules

	 	 	10	 
	    Section 11.2
	 	Notices

	 	 	10	 
	    Section 11.3
	 	Assignment, Binding Effect

	 	 	11	 
	    Section 11.4
	 	No Third Party Beneficiaries

	 	 	11	 

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	    Section 11.5
	 	Amendment

	 	 	11	 
	    Section 11.6
	 	Waiver

	 	 	11	 
	    Section 11.7
	 	Severability

	 	 	11	 
	    Section 11.8
	 	Counterparts

	 	 	11	 
	    Section 11.9
	 	Governing Law

	 	 	12	 
	    Section 11.10
	 	Relationship of Parties

	 	 	12	 
	    Section 11.11
	 	Further Assurances

	 	 	12	 
	    Section 11.12
	 	Regulations

	 	 	12	 
	    Section 11.13
	 	Survival

	 	 	12	 
	    Section 11.14
	 	English Language Governs

	 	 	12	 
	    Section 11.15
	 	Effect if Separation does not Occur
	 	 	12	 

	 	 	 	 	 	 	 	 	 
	Schedules	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	Schedule A	 	Accounting
	 	 	 	 
	Schedule B	 	Carmen Yard Facility
	 	 	 	 
	Schedule C	 	Hotline
	 	 	 	 
	Schedule D	 	Human Resources
	 	 	 	 
	Schedule E	 	Information Technology
	 	 	 	 
	Schedule F	 	Outstanding Purchase Orders
	 	 	 	 
	Schedule G	 	Treasury
	 	 	 	 

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TRANSITION SERVICES AGREEMENT

          This TRANSITION SERVICES AGREEMENT (together with the Schedules hereto, this “Agreement”) is
entered into as of [___], 2009, by and between Pride International, Inc., a Delaware
corporation (“Pride”), and Seahawk Drilling, Inc., a Delaware corporation (“Seahawk”).

          WHEREAS, the Board of Directors of Pride has determined that it would be appropriate and
desirable for Pride to distribute (the “Distribution”) on a pro rata basis to the holders of
outstanding shares of common stock, par value $.01 per share, of Pride all of the outstanding
shares of common stock, par value $.01 per share, of Seahawk owned by Pride;

          WHEREAS, in order to effectuate the foregoing, Pride and Seahawk have entered into a Master
Separation Agreement, dated as of the date hereof (the “Separation Agreement”), which provides,
among other things, upon the terms and subject to the conditions thereof, for the separation of the
respective businesses of Pride and Seahawk and the Distribution, and the execution and delivery of
certain other agreements, including this Agreement, in order to facilitate and provide for the
foregoing; and

          WHEREAS, in order to provide for an orderly transition under the Separation Agreement, it will
be advisable for Pride, through members of the Pride Group, to provide to Seahawk certain services
described herein for a transitional period.

          NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
herein contained, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

ARTICLE I

DEFINITIONS

          Section 1.1 Definitions. As used in this Agreement, the following terms shall have the meanings set forth below.
Capitalized terms used but not otherwise defined in this Agreement shall have the respective
meanings assigned to such terms in the Separation Agreement:

          “Agreement” has the meaning set forth in the preamble.

          “Force Majeure Event” has the meaning set forth in Section 10.1.

          “Pride” has the meaning set forth in the preamble.

          “Schedules” means Schedules A through G attached hereto.

          “Seahawk” has the meaning set forth in the preamble.

          “Separation Agreement” has the meaning set forth in the recitals.

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          “Service Coordinator” has the meaning set forth in Section 2.2.

          “Services” has the meaning set forth in Section 2.1(a).

          “Tax” has the meaning set forth in Section 4.4.

ARTICLE II

SERVICES

          Section 2.1 Services.

     (a) Upon the terms and subject to the conditions of this Agreement, Pride, acting
directly and/or through its Affiliates and their respective employees, agents, contractors
or independent third parties designated by any of them, agrees to use commercially
reasonable efforts to provide or to cause to be provided services to the Seahawk Group as
set forth in the Schedules (such services are collectively referred to herein as the
“Services”).

     (b) At all times during the performance of the Services, all Persons performing such
Services (including agents, temporary employees, independent third parties and consultants)
shall be construed as being independent from the Seahawk Group, and such Persons shall not
be considered or deemed to be employees of any member of the Seahawk Group nor entitled to
any employee benefits of Seahawk as a result of this Agreement. The responsibility of such
Persons is to perform the Services in accordance with this Agreement and, as necessary, to
advise the applicable member of the Seahawk Group in connection therewith, and such Persons
shall not be responsible for decision-making on behalf of any member of the Seahawk Group.
Such Persons shall not be required to report to management of any member of the Seahawk
Group nor be deemed to be under the management or direction of any member of the Seahawk
Group. Seahawk acknowledges and agrees that, except as may be expressly set forth herein as
a Service or otherwise expressly set forth in the Separation Agreement, an Ancillary
Agreement or other binding definitive agreement, no member of the Pride Group shall be
obligated to provide, or cause to be provided, any service or goods to any member of the
Seahawk Group.

     (c) Pride and members of the Pride Group shall not be required to perform Services
hereunder or take any actions relating thereto that conflict with or violate any applicable
law, contract, license, authorization, certification or permit or Pride’s Code of Business
Conduct and Ethical Practices or other governance policies, as they may be amended from time
to time; provided, however, that Pride shall use reasonable efforts to avoid or remove any
such conflict or violation.

          Section 2.2 Service Coordinators. Each party will nominate in writing a representative to act as the primary contact with respect
to the provision of the Services and the resolution of disputes under this Agreement (each such
person, a “Service Coordinator”). The initial Service Coordinators shall be [___] and
[___] (or their designated delegates) for each of

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Pride and Seahawk. Unless Pride and
Seahawk otherwise agree in writing, Pride and Seahawk agree that all notices and communications
relating to this Agreement other than those day-to-day communications and billings relating to the
actual provision of the Services shall be directed to the Service Coordinators in accordance with
Section 11.2 hereof. The Service Coordinators shall meet as expeditiously as possible to resolve
any dispute hereunder.

          Section 2.3 Third Party Services. Pride shall have the right to hire third party subcontractors to provide all or part of any
Service hereunder; provided that Pride shall give notice to Seahawk of its intent to subcontract
any portion of the Services and Seahawk shall have five days (or such lesser period set forth in
the notice as may be practicable in the event of exigent circumstances) to determine, in its sole
discretion, whether to permit such subcontracting or whether to cancel such Service in accordance
with Article VI hereof. If Seahawk opts to cancel a Service pursuant to the immediately preceding
sentence, it shall not be liable to Pride pursuant to Section 6.1 for any costs or expenses Pride
or any member of the Pride Group remains obligated to pay to the third party subcontractor
identified in the notice provided by Pride as described above. Pride shall not be required to give
notice of its intent to subcontract Services to any party listed on Exhibit 2.3 hereto, nor shall
Seahawk have any right to cancel any Service subcontracted to any such listed party.

          Section 2.4 Standard of Performance; Limitation of Liability.

     (a) The Services to be provided hereunder shall be performed with the same general
degree of care, at the same general level and at the same general degree of accuracy and
responsiveness, as when performed within the Pride organization prior to the date of this
Agreement. It is understood and agreed that Pride and the members of the Pride Group are
not professional providers of the types of services included in the Services and that Pride
personnel performing Services have other responsibilities and will not be dedicated
full-time to performing Services hereunder.

     (b) In the event Pride or any member of the Pride Group fails to provide, or cause to
be provided, the Services in accordance with the standard of service set forth in Section
2.4(a) or Section 2.4(c), the sole and exclusive remedy of Seahawk shall be, at Seahawk’s
sole discretion, within 90 days from the date that Pride or such member of the Pride Group
first fails to provide such Service, to not pay for such Service; provided that in the event
Pride defaults in the manner described in clause (ii) of Article VII, Seahawk shall have the
further rights set forth in Article VII.

     (c) EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 2.4, NO REPRESENTATIONS OR WARRANTIES
OF ANY KIND, IMPLIED OR EXPRESSED, ARE MADE BY PRIDE OR ANY MEMBER OF THE PRIDE GROUP WITH
RESPECT TO THE SERVICES UNDER THIS AGREEMENT AND ALL SUCH REPRESENTATIONS OR WARRANTIES ARE
HEREBY WAIVED AND DISCLAIMED. SEAHAWK HEREBY EXPRESSLY WAIVES ANY RIGHT SEAHAWK OR ANY
MEMBER OF THE SEAHAWK GROUP MAY OTHERWISE HAVE FOR ANY LOSSES, TO ENFORCE SPECIFIC
PERFORMANCE OR TO PURSUE ANY OTHER REMEDY AVAILABLE IN CONTRACT, AT LAW OR IN EQUITY IN THE
EVENT OF ANY NON-PERFORMANCE, INADEQUATE

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PERFORMANCE, FAULTY PERFORMANCE OR OTHER FAILURE OR
BREACH BY PRIDE OR ANY MEMBER OF THE PRIDE GROUP UNDER OR RELATING TO THIS AGREEMENT,
NOTWITHSTANDING THE NEGLIGENCE (WHETHER SOLE, JOINT OR CONCURRENT OR ACTIVE OR PASSIVE) OF
PRIDE OR ANY MEMBER OF THE PRIDE GROUP OR ANY THIRD PARTY SERVICE PROVIDER AND WHETHER
DAMAGES ARE ASSERTED IN CONTRACT OR TORT, UNDER FEDERAL, STATE OR NON U.S. LAWS OR OTHER
STATUTE OR OTHERWISE; PROVIDED, HOWEVER, THAT THE FOREGOING WAIVER SHALL NOT EXTEND TO
COVER, AND PRIDE SHALL BE RESPONSIBLE FOR, SUCH LOSSES CAUSED BY THE GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT OF PRIDE OR ANY MEMBER OF THE PRIDE GROUP. NOTWITHSTANDING ANYTHING IN
THIS AGREEMENT TO THE CONTRARY, IN NO EVENT SHALL THE PRIDE GROUP BE LIABLE TO THE SEAHAWK
GROUP WITH RESPECT TO CLAIMS ARISING OUT OF THIS AGREEMENT FOR AMOUNTS IN THE AGGREGATE
EXCEEDING THE AGGREGATE SERVICE CHARGES PAID HEREUNDER BY THE SEAHAWK GROUP.

          Section 2.5 Service Boundaries and Scope. Except as provided in a Schedule for a specific Service: (a) Pride shall be required to provide,
or cause to be provided, the Services only at the locations such Services are being provided by any
member of the Pride Group for any member of the Seahawk Group immediately prior to the Distribution
Date; and (b) the Services shall be available only for purposes of conducting the business of the
Seahawk Group substantially in the manner it was conducted immediately prior to the Distribution
Date. Except as provided in a Schedule for a specific Service, in providing, or causing to be
provided, the Services, Pride shall not be obligated to: (i) maintain the employment of any
specific employee or hire additional employees; (ii) purchase, lease or license any additional
equipment (including computer equipment, furniture, furnishings, fixtures, machinery, vehicles,
tools and other tangible personal property) or software; (iii) make modifications to its existing
systems or software; (iv) provide any member of the Seahawk Group with access to any systems or
software other than those to which it has authorized access immediately prior to the Distribution
Date; or (v) pay any costs related to the transfer or conversion of data of any member of the
Seahawk Group.

          Section 2.6 Cooperation. Pride and Seahawk shall cooperate with one another and provide such further assistance as the
other party may reasonably request in connection with the provision of Services hereunder.

          Section 2.7 Transitional Nature of Services; Changes. Subject to Sections 2.3 and 2.4, the parties acknowledge the transitional nature of the Services
and that Pride may make changes from time to time in the manner of performing the Services.

          Section 2.8 Access. During the term of this Agreement and for so long as any Services are being provided to Seahawk
by Pride, Seahawk will provide Pride and its authorized representatives reasonable access, during
regular business hours upon reasonable notice, to Seahawk and its employees, representatives,
facilities and books and records as Pride and its representatives may reasonably be required in
order to perform such Services.

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ARTICLE III

SERVICE CHARGES

          Section 3.1 Compensation. Subject to the specific terms of this Agreement, the compensation to be received by Pride for
each Service provided hereunder will be the fees set forth on the Schedule relating to the
particular Service, subject to any escalation provided for on such Schedule. In consideration for
the provision of a Service, each member of the Seahawk Group receiving such Service shall pay to
Pride or, at the election of Pride, the member of the Pride Group providing such Service, the
applicable fee for such Service as set forth on the attached Schedules.

ARTICLE IV

PAYMENT

          Section 4.1 Payment. Except as otherwise provided in a Schedule for a specific Service, charges for Services shall be
invoiced monthly by Pride or, at its option, the member of the Pride Group providing the Service.
Except as otherwise provided in a Schedule for a specific Service, Seahawk shall make the
corresponding payment no later than 30 days after receipt of the invoice. Each invoice shall be
directed to the Seahawk Service Coordinator or such other person designated in writing from time to
time by such Service Coordinator. The invoice shall set forth in reasonable detail the invoice
amount for the Services rendered for the period covered by such invoice. Interest will accrue on
any unpaid amounts at ten percent (10%) per annum (compounded monthly) or, if less, the maximum
non-usurious rate of interest permitted by applicable law, until such amounts, together with all
accrued and unpaid interest thereon, are paid in full. All timely payments under this Agreement
shall be made without early payment discount. Any preexisting obligation to make payment for
Services provided hereunder shall survive the termination of this Agreement.

          Section 4.2 Payment Disputes. Seahawk may object to any amounts for any Service at any time before, at the time of, or after
payment is made, provided such objection is made in writing to Pride within 30 days following the
date of the disputed invoice. Seahawk shall timely pay the disputed items in full while resolution
of the dispute is pending; provided, however, that Pride shall pay interest at a rate of five
percent (5%) per annum (compounded monthly) on any amounts it is required to return to Seahawk upon
resolution of the dispute. Payment of any amount shall not constitute approval thereof. The
Service Coordinators shall meet as expeditiously as possible to resolve any dispute. Neither party
(or any member of its respective Group) shall have a right of set-off against the other party (or
any member of its respective Group) for billed amounts hereunder. Upon written request, Pride will
provide to Seahawk reasonable detail and support documentation to permit Seahawk to verify the
accuracy of an invoice.

          Section 4.3 Error Correction. Pride shall make adjustments to charges as required to reflect the discovery of errors or
omissions in charges.

          Section 4.4 Taxes. All transfer taxes, excises, fees or other charges (including value added, sales, use or
receipts taxes, but not including a tax on or measured by the income, net or gross revenues,
business activity or capital of a member of the Pride Group), or

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any increase therein, now or
hereafter imposed directly or indirectly by law upon any fees paid hereunder for Services, which a
member of the Pride Group is required to pay or incur in connection with the provision of Services
hereunder (“Tax”), shall be passed on to Seahawk as an explicit surcharge and shall be paid by
Seahawk in addition to any Service fee payment, whether included in the applicable Service fee
payment, or added retroactively. If Seahawk submits to Pride a timely and valid resale or other
exemption certificate acceptable to Pride and sufficient to support the exemption from Tax, then
such Tax will not be added to the Service fee payable pursuant to Article III; provided, however,
that if a member of the Pride Group is ever required to pay such Tax, Seahawk will promptly
reimburse Pride for such Tax, including any interest, penalties and attorney’s fees related
thereto. The parties will cooperate to minimize the imposition of any Taxes.

          Section 4.5 Records. Pride shall maintain true and correct records of all receipts, invoices, reports and such other
documents relating to the Services hereunder in accordance with its standard accounting practices
and procedures, consistently applied. Without limiting the generality of the foregoing, Pride’s
accounting records shall be maintained in sufficient detail to enable an auditor to verify the
accuracy, completeness and appropriateness of the charges for the Services hereunder. Pride shall
retain such accounting records and make them available to Seahawk’s authorized representatives and
auditors for a period of not less than two years from the close of each fiscal year of Pride;
provided, however, that Pride may, at its option, transfer such accounting records to Seahawk upon
termination of this Agreement.

ARTICLE V

TERM

          Term. Subject to Articles VI and VII, the Pride Group shall provide the specific Services to the
Seahawk Group pursuant to this Agreement for the time period set forth on the Schedule relating to
the specific Service. In accordance with the Separation Agreement and Article VI of this
Agreement, except as otherwise provided in a Schedule for a specific Service, Seahawk shall
undertake to provide to itself and members of the Seahawk Group, and to terminate as soon as
reasonably practicable, the Services provided to the Seahawk Group hereunder. Except as otherwise
expressly agreed or unless sooner terminated, this Agreement shall commence upon the Distribution
Date and shall continue in full force and effect between the parties for so long as any Service set
forth in any Schedule hereto is being provided to Seahawk or members of the Seahawk Group and this
Agreement shall terminate upon the cessation of all Services provided hereunder.

ARTICLE VI

DISCONTINUATION OF SERVICES

          Section 6.1 Discontinuation of Services. Unless otherwise provided in the relevant Schedule for a particular Service, at any time after
the Distribution Date, Seahawk may, without cause and in accordance with the terms and conditions
hereunder and the Separation Agreement, request the discontinuation of one or more specific
Services by giving Pride at least 30 days’ prior written notice. Seahawk shall be liable to Pride
for all costs and expenses Pride or any member of the Pride Group remains obligated to pay in
connection with any discontinued

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Service or Services, except in the case of a Service terminated by
Seahawk pursuant to clause (ii) of Article VII; provided, however, that in no event shall Seahawk
cease to be responsible for [the payment of software maintenance costs as described in Section A of
Schedule E hereto]. The parties shall cooperate as reasonably required to effectuate
an orderly and systematic transfer to the Seahawk Group of all of the duties and obligations
previously performed by Pride or a member of the Pride Group under this Agreement.

          Section 6.2 Procedures Upon Discontinuation or Termination of Services. Upon the discontinuation or termination of a Service hereunder, this Agreement shall be of no
further force and effect with respect to such Service, except as otherwise provided in a Schedule
for a specific Service and except as to obligations accrued prior to the date of discontinuation or
termination; provided, however, that Articles I, IV, VIII, IX and XI of this Agreement shall
survive such discontinuation or termination. Each party and the applicable member(s) of its
respective Group shall, within 60 days after discontinuation or termination of a Service, to the
extent reasonably practicable, deliver to the other party and the applicable member(s) of its
respective Group originals of all books, records, contracts, receipts for deposits and all other
papers or documents in its possession which pertain exclusively to the business of the other party
and relate to such Service; provided that a party may retain copies of material provided to the
other party pursuant to this Section 6.2 as it deems necessary or appropriate in connection with
its financial reporting obligations or internal control practices and policies.

ARTICLE VII

DEFAULT

          Termination for Default. In the event (i) of a failure of Seahawk to pay for Services in accordance with the terms of this
Agreement, or (ii) any party shall default, in any material respect, in the due performance or
observance by it of any of the other terms, covenants or agreements contained in this Agreement,
then (1) if the non-defaulting party is Pride, Pride shall have the right, at its sole discretion,
to immediately terminate this Agreement, and (2) if the non-defaulting party is Seahawk, Seahawk
shall have the right, at its sole discretion, to immediately terminate the Service with respect to
which the default occurred, in either case if the defaulting party has failed to cure the default
within 30 days of receipt of the written notice of such default. Seahawk’s right to terminate this
Agreement pursuant to this Article VII and the rights set forth in Section 2.4 shall constitute
Seahawk’s sole and exclusive rights and remedies for a breach by Pride hereunder (including any
breach caused by an Affiliate of Pride or other third party providing a Service hereunder).

ARTICLE VIII

INDEMNIFICATION AND WAIVER

          Section 8.1 Waiver of Consequential Damages. NEITHER PARTY SHALL BE LIABLE UNDER THIS AGREEMENT FOR ANY CONSEQUENTIAL, INDIRECT, REMOTE,
SPECULATIVE, SPECIAL, INCIDENTAL, PUNITIVE OR EXEMPLARY DAMAGES OR LOST PROFITS UNDER ANY THEORY,
ARISING OUT OF ACTIVITIES OR OBLIGATIONS UNDER OR RELATED TO THIS AGREEMENT,

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REGARDLESS OF THE
ACTS, OMISSIONS, NEGLIGENCE OR FAULT OF ANY PERSON; PROVIDED, HOWEVER, THAT THE FOREGOING
LIMITATIONS SHALL NOT LIMIT EACH PARTY’S INDEMNIFICATION OBLIGATIONS FOR LIABILITIES TO THIRD
PARTIES AS SET FORTH IN THIS AGREEMENT, THE SEPARATION AGREEMENT OR ANY ANCILLARY AGREEMENT.

          Section 8.2 Services Received. Seahawk hereby acknowledges and agrees that:

     (a) the Services to be provided hereunder are subject to and limited by the provisions
of Section 2.4, Article VII and the other provisions hereof, including the limitation of
remedies available to Seahawk that restricts available remedies resulting from a Service not
provided in accordance with the terms hereof to non-payment and, in certain limited
circumstances, the right to terminate this Agreement;

     (b) the Services are being provided solely to facilitate the transition of Seahawk to a
separate company as a result of the Distribution, and Pride and its Affiliates do not
provide any such Services to non-Affiliates;

     (c) it is not the intent of Pride and the other members of the Pride Group to render,
nor of Seahawk and the other members of the Seahawk Group to receive from Pride and the
other members of the Pride Group, professional advice or opinions, whether with regard to
tax, legal, treasury, finance, employment or other business and financial matters, or
technical advice, whether with regard to information technology or other matters; Seahawk
shall not rely on, or construe, any Service rendered by or on behalf of Pride as such
professional advice or opinions or technical advice; and Seahawk shall seek all third party
professional advice and opinions or technical advice as it may desire or need, and in any
event Seahawk shall be responsible for and assume all risks associated with the Services,
except to the limited extent set forth in Section 2.4 and Article VII;

     (d) with respect to any software or documentation within the Services, Seahawk shall
use such software and documentation internally and for their intended purpose only, shall
not distribute, publish, transfer, sublicense or in any manner make such software or
documentation available to other organizations or persons, and shall not act as a service
bureau or consultant in connection with such software; and

     (e) a material inducement to Pride’s agreement to provide the Services is the
limitation of liability and the release provided by Seahawk in this Agreement.

          ACCORDINGLY, EXCEPT WITH REGARD TO THE LIMITED REMEDIES EXPRESSLY SET FORTH HEREIN, SEAHAWK
SHALL ASSUME ALL LIABILITY FOR AND SHALL FURTHER RELEASE, DEFEND, INDEMNIFY AND HOLD PRIDE, ANY
MEMBER OF THE PRIDE GROUP AND THEIR RESPECTIVE EMPLOYEES, OFFICERS, DIRECTORS AND AGENTS (ALL AS
INDEMNIFIED PARTIES) FREE AND HARMLESS FROM AND AGAINST ALL LOSSES RESULTING FROM, ARISING UNDER OR
RELATED TO THE SERVICES, HOWSOEVER ARISING AND WHETHER OR NOT CAUSED BY THE NEGLIGENCE OF PRIDE,
ANY MEMBER OF THE PRIDE GROUP OR

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ANY THIRD PARTY SERVICE PROVIDER, OTHER THAN THOSE LOSSES CAUSED
BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF PRIDE OR ANY MEMBER OF THE PRIDE GROUP.

          Section 8.3 Express Negligence. THE INDEMNITY, RELEASES AND LIMITATIONS OF LIABILITY IN THIS AGREEMENT (INCLUDING ARTICLES II
AND VIII) ARE INTENDED TO BE ENFORCEABLE AGAINST THE PARTIES IN ACCORDANCE WITH THE EXPRESS TERMS
AND SCOPE THEREOF NOTWITHSTANDING ANY EXPRESS NEGLIGENCE RULE OR ANY SIMILAR DIRECTIVE THAT WOULD
PROHIBIT OR OTHERWISE LIMIT INDEMNITIES BECAUSE OF THE NEGLIGENCE (WHETHER SOLE, JOINT OR
CONCURRENT OR ACTIVE OR PASSIVE) OR OTHER FAULT OR STRICT LIABILITY OF ANY OF THE INDEMNIFIED
PARTIES.

ARTICLE IX

CONFIDENTIALITY

          Confidentiality. Seahawk and Pride each acknowledge and agree that the terms of Section 6.11 of the Separation
Agreement shall apply to information, documents, plans and other data made available or disclosed
by one party to the other in connection with this Agreement. Seahawk and Pride each acknowledge
and agree that any third party Information (to the extent such Information does not constitute
Pride Books and Records) provided by any member of the Seahawk Group to any member of the Pride
Group after the Distribution Date in connection with the provision of the Services by any member of
the Pride Group, or generated, maintained or held in connection with the provision of the Services
by any member of the Pride Group after the Distribution Date, in each case that primarily relates
to the Seahawk Business, the Seahawk Assets, or the Seahawk Liabilities, shall not be considered
Privileged Information of Pride or Confidential Information of Pride.

ARTICLE X

FORCE MAJEURE

          Section 10.1 Performance Excused. Continued performance of a Service may be suspended immediately to the extent caused by any
event or condition beyond the reasonable control of the party suspending such performance (and not
involving any willful misconduct or gross negligence of such party), including, but not limited to,
acts of God, fire, labor or trade disturbance, war, terrorism, civil commotion, compliance in good
faith with any law (whether or not it later proves to be invalid), unavailability of materials or
unusually bad weather (a “Force Majeure Event”).

          Section 10.2 Notice. The party claiming suspension due to a Force Majeure Event will give prompt notice to the other
of the occurrence of the Force Majeure Event giving rise to the suspension and of its nature and
anticipated duration; provided, however, that such party shall use its commercially reasonable
efforts to avoid or remove such causes of nonperformance and shall proceed as promptly as
practicable with the performance of its obligations under this Agreement whenever such causes are
removed or cease.

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          Section 10.3 Cooperation. Upon the occurrence of a Force Majeure Event, the parties shall cooperate with each other to find
alternative means and methods for the provision of the suspended Service.

ARTICLE XI

MISCELLANEOUS

          Section 11.1 Construction Rules. The article and section headings contained in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Agreement. As used in this
Agreement, unless otherwise provided to the contrary, (i) all references to days or months shall be
deemed references to calendar days or months and (ii) any reference to a “Section,” “Article,”
“Exhibit” or “Schedule” shall be deemed to refer to a section or article of this Agreement or an
exhibit or schedule to this Agreement. The words “hereof,” “herein” and “hereunder” and words of
similar import referring to this Agreement refer to this Agreement as a whole and not to any
particular provision of this Agreement. Whenever the words “include,” “includes” or “including”
are used in this Agreement, they shall be deemed to be followed by the words “without limitation.”
Unless otherwise specifically provided for herein, the term “or” shall not be deemed to be
exclusive. Each of the parties has participated in the drafting and negotiation of this Agreement.
If an ambiguity or question of intent or interpretation arises, this Agreement must be construed
as if it is drafted by all the parties, and no presumption or burden of proof shall arise favoring
or disfavoring any party by virtue of authorship of any of the provisions of this Agreement.

          Section 11.2 Notices. All notices and other communications hereunder shall be in writing and shall be deemed given
upon (i) a transmitter’s confirmation of a receipt of a facsimile transmission, (ii) an electronic
mail transmission, receipt verified, to an electronic mail address provided by the receiving party
to the sending party for the purpose of receiving such notices, (iii) confirmed delivery of a
standard overnight courier or when delivered by hand or (iv) the expiration of five business days
after the date mailed by certified or registered mail (return receipt requested), postage prepaid,
to the parties at the following addresses (or at such other addresses for a party as shall be
specified by like notice):

          If to Pride, to:

Pride International, Inc.

Attention: _________

5847 San Felipe, Suite 3300

Houston, Texas 77057

Facsimile: (713) _________

If to Seahawk, to:

Seahawk Drilling, Inc.

Attention: _________

5847 San Felipe, Suite 1600

Houston, Texas 77057

Facsimile: (713) _________

10

 

          Section 11.3 Assignment, Binding Effect. Neither this Agreement nor any of the rights, benefits or obligations hereunder may be assigned
or delegated by Seahawk or Pride (whether by operation of law or otherwise) without the prior
written consent of the other party; provided, however, that the foregoing shall in no way restrict
the performance of a Service by an Affiliate of Pride or a third party as otherwise allowed
hereunder.

          Section 11.4 No Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to or shall confer upon any Person
(other than Seahawk, members of the Seahawk Group, Pride and any member of the Pride Group or other
Person providing Services hereunder or their respective successors or permitted assigns) any legal
or equitable right, benefit or remedy of any nature whatsoever under or by reason of this
Agreement, and no Person (except as so specified) shall be deemed a third-party beneficiary under
or by reason of this Agreement.

          Section 11.5 Amendment. No amendments, additions to, alterations, modifications or waivers of all or any part of this
Agreement shall be of any effect, whether by course of dealing or otherwise, unless explicitly set
forth in writing and executed by both parties hereto. Except as expressly provided otherwise in
this Agreement, if the provisions of this Agreement and the provisions of any purchase order or
order acknowledgment written in connection with this Agreement conflict, the provisions of this
Agreement shall prevail.

          Section 11.6 Waiver. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate
or be construed as a waiver of any subsequent breach. The failure of any party to require
performance of any provision of this Agreement shall not affect any party’s right to full
performance thereof at any time thereafter. Unless otherwise specified herein, the rights and
remedies provided in this Agreement are cumulative and the exercise of any one right or remedy by
any party shall not preclude or waive its right to exercise any or all other rights or remedies.

          Section 11.7 Severability. If any provision of this Agreement or the application of any such provision to any Person or
circumstance shall be declared judicially to be invalid, unenforceable or void, such decision shall
not have the effect of invalidating or voiding the remainder of this Agreement, it being the intent
and agreement of Seahawk and Pride that this Agreement shall be deemed amended by modifying such
provision to the extent necessary to render it valid, legal and enforceable while preserving the
original intent and economic balance of the parties as reflected in the severed provision or, if
such modification is not possible, by substituting therefor another provision that is legal and
enforceable and that achieves the same economic objective.

          Section 11.8 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be
an original, but all of which together shall constitute one agreement binding on Seahawk and Pride.

11

 

          Section 11.9 Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of
Texas without giving effect to the conflicts of law principles thereof except to the extent that,
pursuant to the applicable laws of the location in which any Service is performed, the local laws
of such location are mandatorily applicable thereto, in which case, and to such extent, the laws of
such location shall apply.

          Section 11.10 Relationship of Parties. This Agreement does not create a fiduciary relationship, partnership, joint venture or
relationship of trust or agency between the parties.

          Section 11.11 Further Assurances. From time to time, each party agrees to execute and deliver such additional documents, and will
provide such additional information and assistance as any party may reasonably require to carry out
the terms of this Agreement.

          Section 11.12 Regulations. All employees of Pride and the members of the Pride Group shall, when on the property of Seahawk,
conform to the rules and regulations of Seahawk concerning safety, health and security which are
made known to such employees in advance in writing.

          Section 11.13 Survival. The parties agree that Articles I, IV, VIII, IX and XI and Section 2.4(c) will survive the
termination of this Agreement and that any such termination shall not affect any obligation for the
payment of Services rendered prior to termination.

          Section 11.14 English Language Governs. This Agreement is entered into in the English language. In the event of any dispute concerning
the construction or meaning of this Agreement, reference shall be made only to the Agreement as
written in English, and not to any translation into any other language.

          Section 11.15 Effect if Separation does not Occur. If the Distribution does not occur, then all actions and events that are, under this
Agreement, to be taken or occur effective as of or following the Distribution Date, or otherwise in
connection with the Distribution, shall not be taken or occur except to the extent specifically
agreed by the parties and neither party shall have any liability or further obligation to the other
party under this Agreement.

[Signature page follows.]

12

 

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.

	 	 	 	 	 
	 	PRIDE INTERNATIONAL, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	SEAHAWK DRILLING, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to Transition Services Agreement]

13exv10w2

Exhibit 10.2

FORM OF

TAX SHARING AGREEMENT

BETWEEN

PRIDE INTERNATIONAL, INC.

AND

SEAHAWK DRILLING, INC.

 

 

TABLE OF CONTENTS

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

i 

 

	 	 	 	 	 
	5.2 Supplemental Rulings and Supplemental Tax Opinions
	 	 	 - 18  -	 
	 
	 	 	 	 
	SECTION
6. Tax Records
	 	 	 -18  -	 
	6.1 Retention of Tax Records
	 	 	 - 18  -	 
	6.2 Access to Tax Records
	 	 	 - 18  -	 
	6.3 Confidentiality
	 	 	 - 19  -	 
	 
	 	 	 	 
	SECTION
7. Tax Contests
	 	 	 -19  -	 
	 
	 	 	 	 
	7.1 Notices
	 	 	 - 19  -	 
	7.2 Control of Tax Contests
	 	 	 - 20  -	 
	(a) General Rule
	 	 	 - 20  -	 
	(b) Non-Preparer Participation Rights
	 	 	 - 20  -	 
	7.3 Cooperation
	 	 	 - 20  -	 
	 
	 	 	 	 
	SECTION
8. Restriction on Certain Actions of Pride and Seahawk
	 	 	 -21  -	 
	 
	 	 	 	 
	8.1 General Restrictions
	 	 	 - 21  -	 
	8.2 Restricted Actions Relating to Tax Materials
	 	 	 - 21  -	 
	8.3 Certain Seahawk Actions Following the Effective Time
	 	 	 - 21  -	 
	 
	 	 	 	 
	SECTION
9. General Provisions
	 	 	 -22  -	 
	 
	 	 	 	 
	9.1 Limitation of Liability
	 	 	 - 22  -	 
	9.2 Entire Agreement
	 	 	 - 22  -	 
	9.3 Governing Law
	 	 	 - 22  -	 
	9.4 Termination
	 	 	 - 22  -	 
	9.5 Notices
	 	 	 - 22  -	 
	9.6 Counterparts
	 	 	 - 23  -	 
	9.7 Binding Effect; Assignment
	 	 	 - 23  -	 
	9.8 No Third Party Beneficiaries
	 	 	 - 23  -	 
	9.9 Severability
	 	 	 - 23  -	 
	9.10 Failure or Indulgence Not Waiver; Remedies Cumulative
	 	 	 - 23  -	 
	9.11 Amendments; Waivers
	 	 	 - 23  -	 
	9.12 Authority
	 	 	 - 24  -	 
	9.13 Construction
	 	 	 - 24  -	 
	9.14 Interpretation
	 	 	 - 24  -	 
	9.15 Predecessors or Successors
	 	 	 - 24  -	 
	9.16 Expenses
	 	 	 - 25  -	 
	9.17 Effective Time
	 	 	 - 25  -	 
	9.18 Change in Law
	 	 	 - 25  -	 
	9.19 Disputes
	 	 	 - 25  -	 
	 
	 	 	 	 
	APPENDIX A
	 	 	 - 27  -	 
	 
	EXHIBIT A
	 	 	 - 35  -	 

ii 

 

TAX SHARING AGREEMENT

     THIS TAX SHARING AGREEMENT (this “Agreement”) is entered into as of [                    ], between
Pride International, Inc., a Delaware corporation (“Pride”), and Seahawk Drilling, Inc., a Delaware
corporation (“Seahawk”). Unless otherwise indicated, all “Section” references in this Agreement
are to sections of this Agreement.

RECITALS

     WHEREAS, Seahawk is a wholly owned Subsidiary of Pride; and

     WHEREAS, the Board of Directors of Pride has determined that it would be appropriate and
desirable for Pride to separate the Seahawk Group from the Pride Group, as contemplated by the
Master Separation Agreement (the “Separation”); and

     WHEREAS, in furtherance thereof, the Board of Directors of Pride has determined that, in
connection with the Separation, it would be appropriate and desirable for (i) Seahawk to contribute
certain assets and liabilities to Deepwater USA, Inc. (“DeepCo”) and to distribute its entire
interest in the stock of DeepCo to Pride in what is intended to qualify as a tax-free transaction
described under Sections 368(a)(1)(D) and 355 of the Code (the “Internal Distribution”), and (ii)
Pride to distribute its entire interest in the stock of Seahawk on a pro rata basis to holders of
Pride Common Stock in what is intended to qualify as a tax-free transaction described under Section
355 of the Code (the “External Distribution”); and

     WHEREAS, the Board of Directors of Seahawk has also approved such transactions; and

     WHEREAS, the parties set forth in a Master Separation Agreement the principal arrangements
between them regarding the separation of the Seahawk Group from the Pride Group; and

     WHEREAS, the parties desire to provide for and agree upon the allocation between the parties
of Taxes and Tax Benefits arising prior to, as a result of, and subsequent to the External
Distribution, and provide for and agree upon other matters relating to Taxes.

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

     SECTION 1. Definition of Terms. For purposes of this Agreement (including the recitals hereof), the following
terms have the following meanings:

     “Affiliate” means with respect to any Person, any other Person that directly or indirectly,
through one or more intermediaries, Controls, is Controlled by, or is under common Control with,
such first Person.

- 1 -

 

     “Agreement” has the meaning set forth in the preamble hereof.

     “Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time, or any
successor law.

     “Control” means, with respect to any Person, the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of such Person, whether
through ownership of securities or partnership, membership, limited liability company, or other
ownership interests, by contract or otherwise and the terms “Controlling” and “Controlled” have
meanings correlative to the foregoing.

     “Deepwater Drilling Business” has the meaning set forth in the Ruling Request.

     “DeepCo” has the meaning set forth in the recitals hereof.

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

     “Distribution Date” means the date on which the External Distribution occurs.

     “Distribution Taxes” has the meaning set forth in Section 2.2(b).

     “Due Date” has the meaning set forth in Section 4.4.

     “Effective Time” means the time at which the External Distribution is effected on the
Distribution Date.

     “External Distribution” has the meaning set forth in the recitals hereof.

     “Group” means the Pride Group or the Seahawk Group, as the context requires.

     “Internal Distribution” has the meaning set forth in the recitals hereof.

     “IRS” means the Internal Revenue Service.

     “IRS Submissions” means the Ruling Request, each supplemental submission and any other
correspondence or supplemental materials submitted to the IRS in connection with obtaining the
Ruling.

     “Joint Return” means any Tax Return, for any Tax Year, that includes Tax Items of both the
Pride Business and the Seahawk Business, determined without regard to Tax Items carried forward to
such Tax Year.

     “Losses” means any and all damages, losses, deficiencies, liabilities, obligations, Taxes,
penalties, judgments, settlements, claims, payments, fines, interest, costs and expenses
(including, without limitation, the fees and expenses of any and all actions and demands,
assessments, judgments, settlements and compromises relating

- 2 -

 

thereto and the costs and expenses of
attorneys’, accountants’, consultants’ and other professionals’ fees and expenses incurred in the
investigation or defense thereof or the enforcement of rights hereunder), including direct and
consequential damages.

     “Management Business” has the meaning set forth in the Ruling Request.

     “Master Separation Agreement” means the Master Separation Agreement entered into as of
[                    ] 2009, between Pride and Seahawk.

     “Non-Preparer” means the party that is not responsible for the preparation and filing of the
Joint Return or Separate Return, as applicable, pursuant to Sections 3.1(a) or 3.2.

     “Payment Date” means (x) with respect to any U.S. federal income tax return, the due date for
any required installment of estimated taxes determined under Code Section 6655, the due date
(determined without regard to extensions) for filing the return determined under Code Section 6072,
and the date the return is filed, and (y) with respect to any other Tax Return, the corresponding
dates determined under the applicable Tax Law.

     “Permitted Financial Institution” means any domestic commercial bank having capital and
surplus in excess of $[5.0] billion and whose long-term debt is rated “A” or the equivalent thereof
by Moody’s or S&P (or reasonably equivalent ratings of another internationally recognized ratings
agency).

     “Person” means any individual, corporation, company, partnership, trust, incorporated or
unincorporated association, joint venture or other entity of any kind.

     “Preparer” means the party that is responsible for the preparation and filing of the Joint
Return or Separate Return, as applicable, pursuant to Sections 3.1(a) or 3.2.

     “Pride” has the meaning set forth in the preamble hereof.

     “Pride Business” means, with respect to any Tax Year (or portion thereof), the assets,
activities and related liabilities of Pride and its Subsidiaries during such Tax Year (or portion
thereof), but not including the assets, activities and related liabilities constituting a part of
the Seahawk Business for such Tax Year (or portion thereof).

     “Pride Common Stock” means the Pride common stock, par value $.01 per share, and any series or
class of stock into which the Pride common stock is redesignated, reclassified, converted or
exchanged following the Effective Time.

     “Pride Group” means Pride and each Subsidiary of Pride (but only while such Subsidiary is a
Subsidiary of Pride) other than any Person that is a member of the Seahawk Group (but only during
the period such Person is a member of the Seahawk Group).

- 3 -

 

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

     “Requesting Party” has the meaning set forth in Section 5.2.

     “Ruling” means PLR 112185-09, which was issued to Pride on May 4, 2009, as supplemented by PLR
[___], which was issued to Pride on June [_], 2009.

     “Ruling Request” means the requests for rulings, dated March 2, 2009, and June [_], 2009,
filed by Pride with the IRS in connection with the Distribution and any other correspondence or
supplemental materials submitted to the IRS in connection with obtaining the Ruling.

     “Seahawk” has the meaning set forth in the preamble hereof.

     “Seahawk Business” means:

          (a) with respect to any Tax Year (or portion thereof) that ended on or before December 31,
2008, (i) the assets, activities and related liabilities of Pride and its Subsidiaries, to the
extent such assets and activities were situated in the Gulf of Mexico during such Tax Year (or
portion thereof) and (ii) any other assets, activities and related liabilities of Seahawk and the
Seahawk Subsidiaries, regardless of where such assets and activities were situated during such Tax
Year (or portion thereof); but not including, in each case (i) and (ii) above, any assets,
activities and related liabilities of Pride, Seahawk and their respective Subsidiaries, to the
extent such assets and activities were or related to the deepwater services management contracts
with respect to the Thunderhorse, Mad Dog and Holstein rigs;

          (b) with respect to any Tax Year (or portion thereof) that begins after December 31, 2008, and
ends on or before the Distribution Date, (i) the assets, activities and related liabilities of
Pride and its Subsidiaries, to the extent such assets and activities were situated in the Gulf of
Mexico during such Tax Year (or portion thereof) and (ii) any other assets, activities and related
liabilities of Seahawk and the Seahawk Subsidiaries, regardless of where such assets and activities
were situated during such Tax Year (or portion thereof); but not including, in each case (i) and
(ii) above, any assets (other than the stock of DeepCo), activities and related liabilities of
Pride, Seahawk and their respective Subsidiaries, to the extent such assets and activities were or
related to (iii) the deepwater services management contracts with respect to the Thunderhorse, Mad
Dog and Holstein rigs; (iv) drillships or semisubmersible rigs or (v) the Pride Tennessee and Pride
Wisconsin rigs;

          (c) with respect to any Tax Year (or portion thereof) that begins after the Distribution Date,
the assets, activities and related liabilities of Seahawk and the Seahawk Subsidiaries during such
Tax Year (or portion thereof).

     “Seahawk Group” means (x) with respect to any Tax Year (or portion thereof) ending at or
before the Effective Time, Seahawk and each of its Subsidiaries at the Effective Time; and (y) with
respect to any Tax Year (or portion thereof) that begins

- 4 -

 

after the Effective Time, Seahawk and each
Subsidiary of Seahawk (but only while such Subsidiary is a Subsidiary of Seahawk).

     “Seahawk Subsidiaries” means Gulf of Mexico Personnel Services S. De R.L. De C.V.; Mexico
Drilling Limited LLC; Mexico Offshore Management S. De R.L. De C.V.; Pride Central America, LLC;
Pride Drilling, LLC; Pride Internacional de Mexico LLC; Pride Mexico Holdings, LLC; Redfish
Holdings S. De R.L. De C.V.; [Seahawk Drilling LLC] and each Person that becomes a Subsidiary of
Seahawk after the Distribution Date.

     “Separate Return” means any Tax Return that is not a Joint Return.

     “Separation” has the meaning set forth in the recitals hereof.

     “Subsidiary” when used with respect to any Person, means (i)(A) a corporation a majority in
voting power of whose share capital or capital stock with voting power, under ordinary
circumstances, to elect directors is at the time, directly or indirectly, owned by such Person, by
one or more Subsidiaries of such Person, or by such Person and one or more Subsidiaries of such
Person, whether or not such power is subject to a voting agreement or similar encumbrance, (B) a
partnership or limited liability company in which such Person or a Subsidiary of such Person is, at
the date of determination, (1) in the case of a partnership, a general partner of such partnership
with the power affirmatively to direct the policies and management of such partnership or (2) in
the case of a limited liability company, the managing member or, in the absence of a managing
member, a member with the power affirmatively to direct the policies and management of such limited
liability company, or (C) any other Person (other than a corporation) in which such Person, one or
more Subsidiaries of such Person or such Person and one or more Subsidiaries of such Person,
directly or indirectly, at the date of determination thereof, has or have (1) the power to elect or
direct the election of a majority of the members of the governing body of such Person, whether or
not such power is subject to a voting agreement or similar encumbrance, or (2) in the absence of
such a governing body, at least a majority ownership interest or (ii) any other Person of which an
aggregate of 50% or more of the equity interests are, at the time, directly or indirectly, owned by
such Person and/or one or more Subsidiaries of such Person.

     “Supplemental IRS Submissions” means any request for a Supplemental Ruling, each supplemental
submission and any other correspondence or supplemental materials submitted to the IRS in
connection with obtaining any Supplemental Ruling.

     “Supplemental Ruling” means any private letter ruling obtained by Pride or Seahawk from the
IRS which supplements or otherwise modifies the Ruling.

     “Supplemental Tax Opinion” means, with respect to a specified action, an opinion (other than
the Tax Opinion) from Tax Counsel to the effect that such action will
not preclude (i) the Internal Distribution from qualifying as a tax-free transaction described
under Sections 368(a)(1)(D) and 355 of the Code to Seahawk and Pride and (ii) the External
Distribution from qualifying as a tax-free transaction described under

- 5 -

 

Section 355 of the Code to
Pride and the holders of Pride Common Stock (except, in the case of the holders of Pride Common
Stock, with respect to cash received in lieu of fractional shares). No opinion relied upon by
Seahawk to satisfy the requirements of Section 8.3 shall be considered a “Supplemental Tax Opinion”
unless such opinion is, in addition to the requirements above, an unqualified “will” opinion
reasonably satisfactory to Pride, which opinion may rely upon a Supplemental Ruling and may rely
upon, and may assume the accuracy of, any representations given in any Supplemental Ruling
Submission and any customary representations contained in an officer’s certificate delivered by an
officer of Pride or Seahawk to Tax Counsel.

     “Tax” or “Taxes” means any income, gross income, gross receipts, profits, capital stock,
franchise, withholding, payroll, social security, workers compensation, unemployment, disability,
property, ad valorem, stamp, excise, severance, occupation, service, sales, use, license, lease,
transfer, import, export, value added, alternative minimum, estimated or other similar tax
(including any fee, assessment, or other charge in the nature of or in lieu of any tax) imposed by
any Tax Authority and any interest, penalties, additions to tax, or additional amounts in respect
of the foregoing.

     “Tax Authority” means, with respect to any Tax, the governmental entity or political
subdivision, agency, commission or authority thereof that imposes such Tax, and the agency,
commission or authority (if any) charged with the assessment, determination or collection of such
Tax for such entity or subdivision.

     “Tax Benefit” means a Tax Item that decreases the Tax liability of a taxpayer, including a
credit, loss or other deduction, but not including deductions attributable to or arising from the
Pride Business or the Seahawk Business, as applicable, to the extent that the aggregate of such
deductions in a Tax Year does not exceed the income attributable to or arising from such business
in such Tax Year.

     “Tax Contest” means an audit, review, examination, or any other administrative or judicial
proceeding with the purpose or effect of redetermining Taxes of any member of either Group
(including any administrative or judicial review of any claim for refund).

     “Tax Counsel” means (i) with respect to the Tax Opinion delivered to Pride, Baker Botts L.L.P.
or (ii) with respect to a Supplemental Tax Opinion delivered to Pride or to Seahawk, a nationally
recognized law firm or accounting firm reasonably acceptable to Pride to provide such Supplemental
Tax Opinion.

     “Tax Item” means, with respect to any Tax, any item of income, gain, loss, deduction, credit
or other attribute that may have the effect of increasing or decreasing any Tax.

     “Tax Law” means the law of any governmental entity or political subdivision thereof, and any
controlling judicial or administrative interpretations of such law, relating to any Tax.

- 6 -

 

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

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

     “Tax Records” means Tax Return, Tax Return work papers, documentation relating to any Tax
Contests, and any other books of account or records required to be maintained under applicable Tax
Laws (including but not limited to Section 6001 of the Code) or under any record retention
agreement with any Tax Authority.

     “Tax Return” means any report of Taxes due (including estimated Taxes), any claims for refund
of Taxes paid, any information return with respect to Taxes, or any other similar report,
statement, declaration, or document required to be filed (by paper, electronically or otherwise)
under any applicable Tax Law, including any attachments, exhibits, or other materials submitted
with any of the foregoing, and including any amendments or supplements to any of the foregoing.

     “Tax Year” means with respect to any Tax, the year, or shorter period, if applicable, for
which the Tax is reported as provided under applicable Tax Law.

     “Treasury Regulations” means the regulations promulgated from time to time under the Code as
in effect for the relevant Tax Year.

     SECTION 2. Allocation of Tax Liabilities and Tax Benefits.

     2.1 Liability for and the Payment of Taxes. Except as provided in Section 3.1(b) (Provision of
Information and Assistance), Section 3.2(c) (Provision of Information), and Section 7 (Tax
Contests), and in accordance with Section 4:

          (a) Seahawk Liabilities and Payments. For any Tax Year (or portion thereof), Seahawk shall, subject to
the rules for Tax Benefits in Section 2.1(c):

               (i) be liable for and pay the Taxes (determined without regard to Tax Benefits) allocated to
it pursuant to Section 2.2, reduced by any Tax

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Benefits allocated to Pride or Seahawk that are
allowable under applicable Tax Law, either to the applicable Tax Authority or to Pride as required
by Section 4, and

               (ii) pay Pride for:

                    (A) any Tax Benefits arising in a Tax Year that begins on or before the Distribution Date
allocated to Pride pursuant to Section 2.2 that Seahawk uses to reduce Taxes payable by it pursuant
to clause (i) of this Section 2.1(a) in any Tax Year that begins after the Distribution Date,

                    (B) any Tax Benefits arising in a Tax Year that begins after the Distribution Date allocated
to Pride pursuant to Section 2.2 that Seahawk uses to reduce Taxes payable by it pursuant to clause
(i) of this Section 2.1(a) in any Tax Year that begins on or before the Distribution Date, and

                    (C) any Tax Benefits arising in a Tax Year that begins on or before the Distribution Date
allocated to Pride pursuant to Section 2.2 arising or used as a result of a Tax Contest or other
dispute which is resolved after the Distribution Date that Seahawk uses to reduce Taxes payable by
it pursuant to clause (i) of this Section 2.1(a) in any Tax Year that begins on or before the
Distribution Date.

          (b) Pride Liabilities and Payments. For any Tax Year (or portion thereof), Pride shall, subject to the
rules for Tax Benefits in Section 2.1(c):

               (i) be liable for and pay the Taxes (determined without regard to Tax Benefits) allocated to
it pursuant to Section 2.2, reduced by any Tax Benefits allocated to Pride or Seahawk that are
allowable under applicable Tax Law, either to the applicable Tax Authority or to Seahawk as
required by Section 4, and

               (ii) pay Seahawk for:

                    (A) any Tax Benefits arising in a Tax Year that begins on or before the Distribution Date
allocated to Seahawk pursuant to Section 2.2 that Pride uses to reduce Taxes payable by it pursuant
to clause (i) of this Section 2.1(b) in any Tax Year that begins after the Distribution Date,

                    (B) any Tax Benefits arising in a Tax Year that begins after the Distribution Date allocated
to Seahawk pursuant to Section 2.2 that Pride
uses to reduce Taxes payable by it pursuant to clause (i) of this Section 2.1(b) in any Tax
Year that begins on or before the Distribution Date, and

                    (C) any Tax Benefits arising in a Tax Year that begins on or before the Distribution Date
allocated to Seahawk pursuant to Section 2.2 arising or used as a result of a Tax Contest or other
dispute which is resolved after the Distribution Date that Pride uses to reduce Taxes payable by it
pursuant to clause (i) of this Section 2.1(b) in any Tax Year that begins on or before the
Distribution Date.

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               (c) Rules for Tax Benefits. For purpose of this Section 2:

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

                    (ii) For any Tax Year that begins on or before the Distribution Date, (y) Seahawk shall not
take into account any Tax Benefit under Section 2.1(a)(i) unless the utilization of such Tax
Benefit would be allowable under applicable Tax Law after taking into account only those Tax Items
allocated to Seahawk during such Tax Year (or portion thereof), and (z) Pride shall not take into
account any Tax Benefit under Section 2.1(b)(i) unless the utilization of such Tax Benefit would be
allowable under applicable Tax Law after taking into account only those Tax Items allocated to
Pride during such Tax Year (or portion thereof).

                    (iii) For any Tax Year that begins after the Distribution Date in which either party has
available for use both Tax Benefits allocated to it and Tax Benefits allocated to the other party,
if the applicable Tax Law does not provide for the priority and order in which such Tax Benefits
shall be used, the Tax Benefits allocable to it and to the other party shall be deemed used pro
rata in proportion to the total of such Tax Benefits available for use by it.

                    (iv) Payment for Tax Benefits described in either Section 2.1(a)(ii)(B) or Section
2.1(a)(ii)(C) shall be made only when and to the extent that the use of such Tax Benefit does not
increase the Taxes of Seahawk or reduce the Tax Benefits otherwise usable by Seahawk during the
applicable Tax Year, and payment for Tax Benefits described in either Section 2.1(b)(ii)(B) or
Section 2.1(b)(ii)(C) shall be made only when and to the extent that the use of such Tax Benefit
does not increase the Taxes of Pride or reduce the Tax Benefits otherwise usable by Pride during
the applicable Tax Year.

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     2.2 Allocation Rules. For purposes of Section 2.1:

          (a) General Rule. Except as otherwise provided in this Section 2.2, Taxes (determined without regard
to Tax Benefits) for any Tax Year (or portion thereof) shall be allocated between Seahawk and Pride
in proportion to the net taxable income or other applicable items attributable to or arising from
the respective Seahawk Business and Pride Business (as so defined for such Tax Year or portion
thereof) that contribute to such Taxes, and Tax Benefits for any Tax Year (or portion thereof)
shall be allocated between Seahawk and Pride in proportion to the losses, credits, or other
applicable items attributable to or arising from the respective Seahawk Business and Pride Business
(as so defined for such Tax Year or portion thereof) that contribute to such Tax Benefits.

          (b) Taxes
Resulting from the Internal Distribution or the External Distribution. Taxes and Tax Items
resulting from the Internal Distribution and Taxes and Tax Items resulting from the External
Distribution (collectively, “Distribution Taxes”) will be allocated as follows:

               (i) Distribution Taxes Allocable to Pride. Distribution Taxes shall be allocated to Pride to
the extent that such Distribution Taxes result primarily from one or more of the following:

                        (A) from the Pride Group ceasing to be engaged in the Management Business or the Deepwater
Drilling Business; or

                        (B) from an action or failure to act by the Pride Group that causes Section 355(e) of the Code
to apply to either the Internal Distribution or the External Distribution, or that causes Section
355(f) of the Code to apply to the Internal Distribution.

                    (ii) Distribution Taxes Allocable to Seahawk. Distribution Taxes shall be allocated to
Seahawk to the extent that such Distribution Taxes result primarily from Seahawk’s taking any of
the actions prohibited in Section 8.3.

                    (iii) Joint Responsibility for Distribution Taxes. Any Distribution Taxes not allocated under
Section 2.2(b)(i) or Section 2.2(b)(ii) shall be allocated fifty percent (50%) to Pride and fifty
percent (50%) to Seahawk.

     SECTION
3. Preparation and Filing of Tax Returns.

     3.1 Joint Returns.

          (a) Preparation of Joint Returns. Pride shall be responsible for preparing and filing (or causing to
be prepared and filed) and shall be considered the Preparer of all Joint Returns, except that
Seahawk shall be responsible for preparing and filing (or causing to be prepared and filed) and
shall be considered the Preparer of all

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Joint Returns filed or required to be filed with the
Mexican Tax Authority by any Seahawk Subsidiary.

          (b) Provision of Information and Assistance.

               (i) Information with Respect to Joint Returns. The Non-Preparer shall provide the Preparer
with all information in its possession necessary for the Preparer to properly and timely file all
Joint Returns for which such Preparer is responsible pursuant to Section 3.1(a). The Non-Preparer
shall provide such information no later than thirty days prior to the extended due date of such
Joint Return. If the Non-Preparer is in possession of information and the Non-Preparer fails to
provide such information within the time period provided in this Section 3.1(b)(i) and in the form
reasonably requested by the Preparer to permit the timely filing of any Joint Return for which the
Preparer is responsible pursuant to Section 3.1(a), then notwithstanding any other provision of
this Agreement, the Non-Preparer shall be liable for, and shall indemnify and hold harmless each
member of the Preparer’s Group from and against, any penalties, interest, or other payment
obligation assessed against any member of either Group by reason of any resulting delay in filing
such return. If the Non-Preparer provides information within the time period provided in this
Section 3.1(b)(i) in the form reasonably requested by the Preparer to permit the timely filing of a
Joint Return for which such Preparer is responsible pursuant to Section 3.1(a), then
notwithstanding any other provision of this Agreement, the Preparer shall be liable for, and shall
indemnify and hold harmless each member of the Non-Preparer’s Group from and against, any
penalties, interest, or other payments assessed against any member of either Group by reason of any
delay in filing such return.

               (ii) Information with Respect to Estimated Payments and Extension Payments. The Non-Preparer
shall provide the Preparer with all information relating to members of the Non-Preparer’s Group
that the Preparer needs to determine the amount of Taxes due on any Payment Date with respect to a
Joint Return for which such Preparer is responsible pursuant to Section 3.1(a). The Non-Preparer
shall provide such information no later than thirty days before such Payment Date. In the event
that the Non-Preparer fails to provide information within the time period provided in this Section
3.1(b)(ii) in the form reasonably requested by the Preparer to permit the timely payment of such
Taxes, the indemnification principles of Section 3.1(b)(i) shall apply with respect to any
penalties, interest, or other payments assessed against any member of either Group by reason of any
resulting delay in paying such Taxes.

               (iii) Assistance. At the request of the Preparer, the Non-Preparer shall take (at its own
cost and expense), and shall cause the members of the Non-Preparer’s Group to take (at their own
cost and expense), any reasonable action (e.g., filing a ruling request with the relevant Tax
Authority or executing a power of attorney) that is reasonably necessary in order for the Preparer
or any other member of the Preparer’s Group to prepare, file, amend or take any other action with
respect to a Joint Return for which the Preparer is responsible pursuant to Section 3.1(a). In the
event that the Non-Preparer fails to take, or cause to be taken, any such requested action, the
indemnification principles of Section 3.1(b)(i) shall apply with respect to any penalties,

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interest, or other payments assessed against any member of either Group by reason of a failure to
take any such requested action.

     3.2 Separate Returns.

          (a)
Tax Returns to be Prepared by Pride. Pride shall be responsible for preparing and filing (or
causing to be prepared and filed) all Separate Returns that include Tax Items of the Pride Group,
determined without regard to Tax Items carried forward to such Tax Year.

          (b)
Tax Returns to be Prepared by Seahawk. Seahawk shall be responsible for preparing and filing (or
causing to be prepared and filed) all Separate Returns that include Tax Items of the Seahawk Group,
determined without regard to Tax Items carried forward to such Tax Year.

          (c)
Provision of Information. Pride shall provide to Seahawk, and Seahawk shall provide to Pride, any
information about members of the Pride Group or the Seahawk Group, respectively, which the party
receiving such information reasonably needs to properly and timely file all Separate Returns
pursuant to Sections 3.2(a) or (b). Such information shall be provided within the time prescribed
by Section 3.1(b) for the provision of information for Joint Returns. In the event that Pride or
Seahawk fails to provide information within the time period provided in Section 3.1(b) and in the
form reasonably requested by the other party to permit the timely filing of a Separate Return, the
indemnification principles of Section 3.1(b)(i) shall apply with respect to any penalties,
interest, or other payments assessed against any member of the Pride Group or the Seahawk Group by
reason of any resulting delay in filing such return.

     3.3 Special Rules Relating to the Preparation of Tax Returns.

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

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          (b) Seahawk Tax Returns. With respect to any Separate Return for which Seahawk is responsible
pursuant to Section 3.2(b):

               (i) Seahawk may not take (and shall cause the members of the Seahawk Group not to take) any
positions that it knows, or reasonably should know, would adversely affect any member of the Pride
Group; and

               (ii) Seahawk and other members of the Seahawk Group must (x) allocate Tax Items between such
Separate Return for which Seahawk is responsible pursuant to Section 3.2(b) and any related Joint
Return for which Pride is responsible pursuant to Section 3.1(a) that are filed with respect to the
same Tax Year in a manner that is consistent with the reporting of such Tax Items on the related
Joint Return for which Pride is responsible pursuant to Section 3.1(a) and (y) make any applicable
elections required under applicable Tax Law (including, without limitation, under Treasury
Regulations Section 1.1502-76(b)(2)) necessary to effect such allocation.

          (c) Election to File Consolidated, Combined or Unitary Tax Returns. Pride shall have the sole
discretion of filing any Tax Return on a consolidated, combined or unitary basis, if such Tax
Return would include at least one member of each Group and the filing of such Tax Return is
elective under the relevant Tax Law.

          (d) Carrybacks of Tax Benefits. Seahawk shall not carry back and utilize as a Tax Benefit in a
Tax Year that begins on or before the Distribution Date any Tax Item arising in a Tax Year that
begins after the Distribution Date, provided, that, if the carryback of such Tax Item is required
by applicable Tax Law (for example, pursuant to Section 904(c) of the Code), and if Pride would be
the Preparer of any Tax Return (or Tax Returns) amended to include the carried-back Tax Item, Pride
shall amend such Tax Return (or Tax Returns) and file such claims for credit or refund that Seahawk
may reasonably request. With respect to any foreign Taxes claimed on any such amended Tax Return,
Pride shall only elect the benefits of the foreign Tax credit under Section 901 of the Code and
shall not elect to deduct such foreign Taxes.

          (e) Withholding and Reporting. With respect to stock of Pride delivered to any Person, Pride and
Seahawk shall cooperate (and shall cause their Affiliates to cooperate) so as to permit Pride to
discharge any applicable Tax withholding and Tax reporting obligations, including the appointment
of Seahawk or one or more of its Affiliates as the withholding and reporting agent if Pride or one
or more of its Affiliates is not otherwise required or permitted to withhold and report under
applicable Tax Law.

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

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

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

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     SECTION 4. Tax Payments.

     4.1 Payment of Taxes to Tax Authority.  Pride shall be responsible for remitting to the
proper Tax Authority all Tax shown (including Taxes for which Seahawk is wholly or partially liable
pursuant to Section 2) on any Tax Return for which it is responsible for the preparation and filing
pursuant to Section 3.1(a) or Section 3.2(a), and Seahawk shall be responsible for remitting to the
proper Tax Authority the Tax shown (including Taxes for which Pride is wholly or partially liable
pursuant to Section 2) on any Tax Return for which it is responsible for the preparation and filing
pursuant to Section 3.2(b).

     4.2 Indemnification Payments.

          (a) Tax Payments Made by the Pride Group. If any member of the Pride Group remits a payment to a
Tax Authority for Taxes for which Seahawk is wholly or partially
liable under this Agreement, Seahawk shall remit the amount for which it is liable to Pride within
thirty days after receiving notification requesting such amount.

          (b) Tax Payments Made by the Seahawk Group. If any member of the Seahawk Group remits a payment
to a Tax Authority for Taxes for which Pride is wholly or partially liable under this Agreement,
Pride shall remit the amount for which it is liable to Seahawk within thirty days after receiving
notification requesting such amount.

          (c) Credit for Prior Deemed Tax Payments. For purposes of Section 4.2(a), the portion of Taxes
paid by Pride to a Tax Authority for which Seahawk is liable will be determined by assuming that
Seahawk has previously paid in the aggregate (i)
$[                    ] with respect to all Taxes for each
Tax Year that includes the Distribution Date, (ii)
$[                    ] with respect to all Taxes for each
Tax Year that immediately precedes the Tax Year that includes the Distribution Date and (iii) the
full amount of its allocable share of all Taxes shown on any other Tax Return filed before the
Distribution Date with respect to any other Tax Year ending before the Distribution Date.

          (d) Payments for Tax Benefits.

               (i) If a member of the Pride Group uses a Tax Benefit for which Seahawk is entitled to
reimbursement pursuant to clause (ii) of Section 2.1(b), Pride shall pay to Seahawk, within fifteen
business days following the use of such Tax Benefit, an amount equal to such Tax Benefit.

               (ii) If a member of the Seahawk Group uses a Tax Benefit for which Pride is entitled to
reimbursement pursuant to clause (ii) of Section 2.1(a), Seahawk shall pay to Pride, within fifteen
business days following the use of such Tax Benefit, an amount equal to such Tax Benefit.

               (iii) For purposes of this Agreement, a Tax Benefit (other than a Tax Refund) will be
considered used (i) in the case of a Tax Benefit that generates a Tax Refund, at the time such Tax
Refund is received and (ii) in all other cases, at the time the Tax Return is filed with respect to
such Tax Benefit or, if no Tax

- 15 -

 

Return is filed, at the time the Tax would have been due in the
absence of such Tax Benefit. The amount of such Tax Benefit will be the amount by which Taxes are
actually reduced by such Tax Benefit (determined in accordance with the provisions of Section
2.1(c)).

     4.3 Initial Determinations and Subsequent Adjustments.  The initial determination of the
amount of any payment that one party is required to make to another under this Agreement shall be
made on the basis of the Tax Return as filed, or, if the Tax to which the payment relates is not
reported in a Tax Return, on the basis of the amount of Tax initially paid to the Tax Authority.
The amounts paid under this Agreement will be redetermined, and additional payments relating to
such redetermination will be made, as appropriate, if as a result of an audit by a Tax Authority,
an amended Tax Return, or for any other reason (w) additional Taxes to which such redetermination
relates are subsequently paid, (x) a refund of such Taxes is received, (y) the party using a Tax
Benefit changes, or (z) the amount or character of any Tax Item is adjusted or redetermined. Each
payment required by the immediately preceding sentence (i) as a result of a payment of additional
Taxes will be due thirty days after the date on which the additional Taxes were paid or, if later,
fifteen days after the date of a request from the other party for the payment, (ii) as a result of
the receipt of a refund will be due thirty days after the refund was received, (iii) as a result of
a change in use of a Tax Benefit will be due thirty days after the date on which the final action
resulting in such change is taken by a Tax Authority or either party or any of their Subsidiaries,
or (iv) as a result of an adjustment or redetermination of the amount or character of a Tax Item
will be due thirty days after the date on which the final action resulting in such adjustment or
redetermination is taken by a Tax Authority or either party or any of their Subsidiaries. If a
payment is made as a result of an audit by a Tax Authority which does not conclude the matter,
further adjusting payments will be made, as appropriate, to reflect the outcome of subsequent
administrative or judicial proceedings.

     4.4 Interest on Late Payments.  Payments pursuant to this Agreement that are not made by
the date prescribed in this Agreement or, if no such date is prescribed, within fifteen days after
demand for payment is made (the “Due Date”) shall bear interest for the period from and including
the date immediately following the Due Date through and including the date of payment at a per
annum rate fixed at six percent (6%) above the six month dollar LIBOR rate as displayed on page
“LR” of Bloomberg (or such other appropriate page as may replace such page), as of 11:00 a.m.
London time on the Due Date (or, if the Due Date is not a business day, as of 11:00 a.m. London
time on the first business day following the Due Date). Such rate shall be redetermined at the
beginning of each calendar quarter following such Due Date. Such interest will be payable at the
same time as the payment to which it relates and shall be calculated on the basis of a year of 365
days and the actual number of days for which due.

     4.5 Payments by or to Other Group Members.  When appropriate under the circumstances to
reflect the underlying liability for a Tax or entitlement to a Tax refund or Tax Benefit, a payment
which is required to be made by or to Pride or Seahawk may be made by or to another member of the
Pride Group or the Seahawk

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Group, as appropriate, but nothing in this Section 4.5 shall relieve
Pride or Seahawk of its obligations under this Agreement.

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

     4.7 Tax Consequences of Payments.  For all Tax purposes and to the extent permitted by
applicable Tax Law, the parties hereto shall treat any payment made pursuant to this Agreement as a
capital contribution or a distribution, as the case may be, immediately prior to the External
Distribution. If any payment (or portion thereof) arising as a result of an allocation of Taxes or
Tax Items pursuant to Section 2.2(b) causes, directly or indirectly, an increase in the Taxes owed
by the recipient (or any of the members of its Group) under one or more applicable Tax Laws, the
payor’s payment obligation (or portion thereof) under this Agreement shall be increased such that
the amount of the payment, reduced by any Taxes owed by the recipient (or any of the members of its
Group) as a result of such payment, equals the amount of a payment that would have been received
had no additional Taxes been imposed on the recipient (or any of the members of its Group) as a
result of such payment. Other than the payments described in the preceding sentence of this
Section 4.7, under no circumstances shall any payment (or portion thereof) made pursuant to this
Agreement be grossed up to take into account any additional Taxes that may be owed by the recipient
(or any of the members of its Group) as a result of such payment. In the event that a Tax
Authority asserts that Pride’s or Seahawk’s treatment of a payment pursuant to this Agreement
should be other than as required pursuant to this Section 4.7, Pride or Seahawk, as appropriate,
shall use its reasonable best efforts to contest such assertion.

     SECTION 5. Assistance and Cooperation.

     5.1 Cooperation.  In addition to the obligations enumerated in Sections 3.1(b) and 3.2(c),
Pride and Seahawk will cooperate (and cause their respective Subsidiaries to cooperate) with each
other and with each other’s agents, including accounting firms and legal counsel, in connection
with Tax matters, including provision of relevant documents and information in their possession and
making available to each other, as reasonably requested and available, personnel (including
officers, directors, employees and agents of the parties or their Affiliates) responsible for
preparing, maintaining, and interpreting information and documents relevant to Taxes, and

- 17 -

 

personnel
reasonably required as witnesses or for purposes of providing information or documents in
connection with any administrative or judicial proceedings relating to Taxes.

     5.2 Supplemental Rulings and Supplemental Tax Opinions.  Each of the parties agrees that
at the reasonable request of the other party (the “Requesting Party”), such party shall (and shall
cause each member of its Group to) cooperate and use reasonable efforts to seek to obtain, as
expeditiously as reasonably practicable, a Supplemental Ruling from the IRS. Each of the parties
further agrees that at the reasonable request of the Requesting Party, such other party shall (and
shall cause each member of its Group to) cooperate and use reasonable efforts to assist the
Requesting Party in obtaining, as expeditiously as reasonably practicable, a Supplemental Tax
Opinion from Tax Counsel. Within thirty days after receiving an invoice from the other party
therefor, the Requesting Party shall reimburse such party for all reasonable costs and expenses
incurred by such party and the members of its Group in connection with obtaining or requesting a
Supplemental Ruling or in connection with assisting the Requesting Party in obtaining a
Supplemental Tax Opinion. Notwithstanding the foregoing, Pride shall not be required to
file any Supplemental IRS Submission unless Seahawk represents to Pride that (x) it has reviewed
the Supplemental IRS Submission and (y) all information and representations, if any, relating to
any member of the Seahawk Group contained in the Supplemental IRS Submissions are true, correct and
complete in all material respects.

     SECTION 6. Tax Records.

     6.1 Retention of Tax Records.  Each of Pride and Seahawk shall preserve, and shall cause
their respective Subsidiaries to preserve, all Tax Records that are in their possession, and that
could affect the liability of any member of the other Group for Taxes, for as long as the contents
thereof may become material in the administration of any matter under applicable Tax Law, but in
any event until the later of (x) the expiration of any applicable statutes of limitation, as
extended, and (y) seven years after the Distribution Date.

     6.2 Access to Tax Records.  Seahawk shall make available, and cause its Subsidiaries to
make available, to members of the Pride Group for inspection and copying (x) all Tax Records in
their possession that relate to Tax Years that begin on or before the Distribution Date, and (y)
the portion of any Tax Record in their possession that relates to Tax Years that begin after the
Distribution Date and which is reasonably necessary for the preparation of a Joint Return or
Separate Return by a member of the Pride Group or with respect to an audit or litigation by a Tax
Authority of such return. Pride shall make available, and cause its Subsidiaries to make
available, to members of the Seahawk Group for inspection and copying that portion of any Tax
Record in their possession that relates to Tax Years that begin on or before the Distribution Date
and which is reasonably necessary for the preparation of a Joint Return or Separate Return by a
member of the Seahawk Group or with respect to an audit or litigation by a Tax Authority of such
return.

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     6.3 Confidentiality.  Each party hereby agrees that it will hold, and shall use its
reasonable best efforts to cause its officers, directors, employees, accountants, counsel,
consultants, advisors and agents to hold, in confidence all records and information prepared and
shared by and among the parties in carrying out the intent of this Agreement, except as may
otherwise be necessary in connection with the filing of Tax Returns or any administrative or
judicial proceedings relating to Taxes or unless disclosure is compelled by a governmental
authority. Information and documents of one party (the “Disclosing Party”) shall not be deemed to
be confidential for purposes of this Section 6.3 to the extent such information or document (i) is
previously known to or in the possession of the other party (the “Receiving Party”) and is not
otherwise subject to a requirement to be kept confidential, (ii) becomes publicly available by
means other than unauthorized disclosure under this Agreement by the Receiving Party or (iii) is
received from a third party without, to the knowledge of the Receiving Party after reasonable
diligence, a duty of confidentiality owed to the Disclosing Party.

     SECTION 7. Tax Contests.

     7.1 Notices.  Each party shall provide prompt notice to the other party of any pending or
threatened Tax audit, assessment or proceeding or other Tax Contest of which it becomes aware
relating to (i) Taxes for which it is or may be indemnified by the other party hereunder, (ii) the
qualification of the Internal Distribution as a tax-free transaction described under Section
368(a)(1)(D) and/or 355 of the Code or (iii) the qualification of the External Distribution as a
tax-free transaction described under Section 355 of the Code. Such notice shall contain factual
information (to the extent known) describing any asserted Tax liability in reasonable detail and
shall be accompanied by copies of any notice and other documents received from any Tax Authority in
respect of any such matters. If (1) an indemnified party has knowledge of an asserted Tax
liability with respect to a matter for which it is to be indemnified hereunder, (2) such party
fails to give the indemnifying party prompt notice of such asserted Tax liability and (3) the
indemnifying party has the right, pursuant to Section 7.2(a), to control the Tax Contest relating
to such Tax liability, then (x) if the indemnifying party is precluded from contesting the asserted
Tax liability as a result of the failure to give prompt notice, the indemnifying party shall have
no obligation to indemnify the indemnified party for any Taxes arising out of such asserted Tax
liability and (y) if the indemnifying party is not precluded from contesting the asserted Tax
liability, but such failure to give prompt notice results in a monetary detriment to the
indemnifying party, then any amount which the indemnifying party is otherwise required to pay the
indemnified party pursuant to this Agreement shall be reduced by the amount of such detriment.

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     7.2 Control of Tax Contests.

          (a) General Rule. Except as provided in Sections 7.2(b), each party (or the appropriate member of
their Group) shall have full responsibility, control and discretion in handling, settling or
contesting any Tax Contest involving a Tax reported on a Tax Return for which it is responsible for
preparing and filing (or causing to be prepared and filed) pursuant to Section 3 of this Agreement.

          (b) Non-Preparer Participation Rights. With respect to a Tax Contest of any Tax Return which
involves a Tax liability for which the Non-Preparer may be liable, or a Tax Benefit for which the
Non-Preparer may be entitled, under this Agreement, (i) the Non-Preparer shall, at its own cost and
expense, be entitled to participate in such Tax Contest, (ii) the Preparer shall keep the
Non-Preparer reasonably informed and consult seriously and in good faith with the Non-Preparer and
its Tax advisors with respect to any issue relating to such Tax Contest; (iii) the Preparer shall
provide the Non-Preparer with copies of all correspondence, notices, and other written materials
received from any Tax Authority and shall otherwise keep the Non-Preparer and its Tax advisors
advised of significant developments in the Tax Contest and of significant communications involving
representatives of the Tax Authority; (iv) the Non-Preparer may request that the Preparer take a
position in respect of such Tax Contest, and the Preparer shall do so provided that (A) there
exists substantial authority for such position (within the meaning of the accuracy-related penalty
provisions of Section 6662 of the Code) and (B) the adoption of such position could not reasonably
be expected to increase the Taxes or reduce the Tax
Benefits allocated to the Preparer pursuant to Section 2 of this Agreement (unless the Non-Preparer
agrees to indemnify and hold harmless the Preparer from such increase in Taxes or reduction in Tax
Benefits); (v) the Preparer shall provide the Non-Preparer with a copy of any written submission to
be sent to a Taxing Authority prior to the submission thereof and shall give serious and good faith
consideration to any comments or suggested revisions that the Non-Preparer or its Tax advisors may
have with respect thereto; and (vi) there will be no settlement, resolution, or closing or other
agreement with respect thereto without the consent of the Non-Preparer, which consent shall not be
unreasonably withheld.

     7.3 Cooperation.  The Non-Preparer shall provide a party controlling any Tax Contest
pursuant to Section 7.2(a) with all information relating to the Non-Preparer’s Group which the
party controlling the Tax Contest needs to handle, settle or contest the Tax Contest. At the
request of a party controlling any Tax Contest pursuant to Section 7.2(a), the other party shall
take any action (e.g., executing a power of attorney) that is reasonably necessary in order for the
party controlling the Tax Contest to handle, settle or contest the Tax Contest. Seahawk shall
assist Pride, and Pride shall assist Seahawk, in taking any remedial actions that are necessary or
desirable to minimize the effects of any adjustment made by a Tax Authority. The indemnifying
party shall reimburse the indemnified party for any reasonable out-of-pocket costs and expenses
incurred in complying with this Section 7.3. The party controlling the Tax Contest shall have no
obligation to indemnify the indemnified party for any additional Taxes resulting from the Tax
Contest, if the indemnified party fails to cooperate in accordance with this Section 7.3.

- 20 -

 

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

     8.1 General Restrictions.  Following the Effective Time, Seahawk shall not, and shall
cause the members of the Seahawk Group not to, take any action that, or fail to take any action the
failure of which, (i) would be inconsistent with the Internal Distribution qualifying, or preclude
the Internal Distribution from qualifying, as a tax-free transaction described under Sections
368(a)(1)(D) and/or 355 of the Code, (ii) would be inconsistent with the External Distribution
qualifying, or preclude the External Distribution from qualifying, as a tax-free transaction
described under Section 355 of the Code (except with respect to cash received in lieu of fractional
shares), or (iii) would cause Pride, any Person that is a Subsidiary of Pride immediately prior to
the Distribution, or the holders of Pride Common Stock that receive Seahawk stock in the
Distribution to recognize gain or loss, or otherwise include any amount in income, as a result of
the Distribution for U.S. federal income tax purposes (except with respect to cash received in lieu
of fractional shares).

     8.2 Restricted Actions Relating to Tax Materials.  Without limiting the other provisions
of this Section 8, following the Effective Time, Seahawk shall not, and shall cause the members of
the Seahawk Group not to, take any action that, or fail to take any action the failure of which,
would be reasonably likely to be inconsistent with, or cause
any Person to be in breach of, any representation or covenant, or any material statement, made in
the Tax Materials.

     8.3 Certain Seahawk Actions Following the Effective Time.  Without limiting the other
provisions of this Section 8, during the two-year period following the Effective Time, Seahawk
shall not take, nor enter into a binding agreement to take, any of the following actions: (i) sell
all or substantially all of the assets that constitute the Seahawk Business as of the Effective
Time to any Person other than Seahawk or an entity which is and will be wholly-owned, directly or
indirectly, by Seahawk; (ii) transfer any assets of Seahawk or any Seahawk Affiliate in a
transaction described in subparagraphs (A), (C), (D), (F), or (G) of Section 368(a)(1) to another
entity, other than Seahawk or an entity which is and will be wholly-owned, directly or indirectly,
by Seahawk, (iii) transfer all or substantially all of the assets that constitute the Seahawk
Business as of the Effective Time in a transaction described in Sections 351 or 721 other than a
transfer to a corporation or partnership which is and will be wholly-owned, directly or indirectly,
by Seahawk; (iv) issue stock of Seahawk or any Seahawk Affiliate (or any instrument that is
convertible or exchangeable into any such stock) other than an issuance to which Treasury
Regulations Section 1.355-7(d)(8) or (9) applies; (v) facilitate or otherwise participate in any
acquisition (or deemed acquisition) of stock of Seahawk that would result in any shareholder owning
(or being deemed to own after applying the rules of Sections 355(e)(4)(C) and 355(e)(3)(B) of the
Code) forty percent (40%) or more (by vote or value) of the outstanding stock of Seahawk; or (vi)
redeem or otherwise repurchase any stock of Seahawk other than pursuant to open market stock
repurchase programs meeting the requirements of Section 4.05(1)(b) of Rev. Proc. 96-30, 1996-1 C.B.
696; in each case, without first obtaining and delivering to Pride at Seahawk’s own expense (y) a
Supplemental Tax Opinion with respect to such action, or (z) a suitable form of financial security
issued by a Permitted Financial Institution, in such form and on

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such terms as Pride may reasonably
direct, and of a sufficient amount which Pride may determine in its sole discretion to cover any
and all Taxes that may arise as a result of taking such action.

     SECTION 9. General Provisions.

     9.1 Limitation of Liability.  IN NO EVENT SHALL ANY MEMBER OF THE PRIDE GROUP OR THE
SEAHAWK GROUP OR THEIR RESPECTIVE DIRECTORS, OFFICERS AND EMPLOYEES BE LIABLE TO ANY OTHER MEMBER
OF THE PRIDE GROUP OR THE SEAHAWK GROUP FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL OR
PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING
NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF
THE POSSIBILITY OF SUCH DAMAGES.

     9.2 Entire Agreement.  This Agreement and the Master Separation Agreement constitute the
entire agreement between Pride and Seahawk with respect to the subject
matter hereof and shall supersede all prior written and oral and all contemporaneous oral
agreements and understandings with respect to the subject matter hereof.

     9.3 Governing Law.  This Agreement shall be governed and construed and enforced in
accordance with the laws of the State of Texas as to all matters regardless of the laws that might
otherwise govern under the principles of conflicts of laws applicable thereto.

     9.4 Termination.

          (a) This Agreement may be terminated at any time prior to the Distribution Date by and in the
sole discretion of Pride without the approval of Seahawk. In the event of termination pursuant to
this Section 9.4, neither party shall have any liability of any kind to the other party.

          (b) This Agreement shall otherwise terminate at such time as all obligations and liabilities
of the parties hereto have been satisfied. The obligations and liabilities of the parties arising
under this Agreement shall continue in full force and effect until all such obligations have been
satisfied and such liabilities have been paid in full, whether by expiration of time, operation of
law, or otherwise.

     9.5 Notices.  Unless expressly provided herein, all notices, claims, certificates,
requests, demands and other communications hereunder shall be in writing and shall be deemed to be
duly given (i) when personally delivered or (ii) if mailed registered or certified mail, postage
prepaid, return receipt requested, on the date the return receipt is executed or the letter is
refused by the addressee or its agent or (iii) if sent by overnight courier which delivers only
upon the signed receipt of the addressee, on the date the receipt acknowledgment is executed or
refused by the addressee or its agent

- 22 -

 

or (iv) if sent by facsimile or other generally accepted
means of electronic transmission, on the date confirmation of transmission is received (provided
that a copy of any notice delivered pursuant to this clause (iv) shall also be sent pursuant to
clause (ii) or (iii)), addressed to the attention of the addressee’s General Counsel at the address
of its principal executive office or to such other address or facsimile number for a party as it
shall have specified by like notice.

     9.6 Counterparts.  This Agreement may be executed in counterparts, each of which shall be
deemed to be an original but all of which shall constitute one and the same agreement.

     9.7 Binding Effect; Assignment.  This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective legal representatives and successors, and
nothing in this Agreement, express or implied, is intended to confer upon any other Person any
rights or remedies of any nature whatsoever under or by reason of this Agreement. This Agreement
may not be assigned by any party hereto.

     9.8 No Third Party Beneficiaries.  This Agreement is solely for the benefit of Pride,
Seahawk and their Subsidiaries and is not intended to confer upon any other Person any rights or
remedies hereunder.

     9.9 Severability.  If any term or other provision of this Agreement is determined by a
nonappealable decision by a court, administrative agency or arbitrator to be invalid, illegal or
incapable of being enforced by any rule of law or public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not affected in any manner
materially adverse to either party. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the court, administrative agency or arbitrator
shall interpret this Agreement so as to effect the original intent of the parties as closely as
possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to
the fullest extent possible. If any sentence in this Agreement is so broad as to be unenforceable,
the provision shall be interpreted to be only so broad as is enforceable.

     9.10 Failure or Indulgence Not Waiver; Remedies Cumulative.  No failure or delay on the
part of either party hereto in the exercise of any right hereunder shall impair such right or be
construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or
agreement herein, nor shall any single or partial exercise of any such right preclude other or
further exercise thereof or of any other right. All rights and remedies existing under this
Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available.

     9.11 Amendments; Waivers.  Any provision of this Agreement may be amended or waived if,
but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by
each party to this Agreement, or in the case of a waiver, by the party against whom the waiver is
to be effective. No failure or delay by any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor

- 23 -

 

shall any single or partial exercise thereof
preclude any other or further exercise thereof or the exercise of any other right, power or
privilege. Except as otherwise provided herein, the rights and remedies herein provided shall be
cumulative and not exclusive of any rights or remedies provided by applicable law. Any consent
provided under this Agreement must be in writing, signed by the party against whom enforcement of
such consent is sought.

     9.12 Authority.  Each of the parties hereto represents to the other that (a) it has the
corporate or other requisite power and authority to execute, deliver and perform this Agreement,
(b) the execution, delivery and performance of this Agreement by it has been duly authorized by all
necessary corporate or other actions, (c) it has duly and validly executed and delivered this
Agreement to be executed and delivered on or prior to the Distribution Date, and (d) this Agreement
creates legal, valid and binding obligations, enforceable against it in accordance with its
respective terms subject to applicable bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting creditors’ rights generally and general equity principles.

     9.13 Construction.  This Agreement shall be construed as if jointly drafted by Seahawk and
Pride and no rule of construction or strict interpretation shall be applied against either party.
The parties represent that this Agreement is entered into with full consideration of any and all
rights which the parties may have. The parties have relied
upon their own knowledge and judgment and upon the advice of the attorneys of their choosing. The
parties have received independent legal advice, have conducted such investigations they and their
counsel thought appropriate, and have consulted with such other independent advisors as they and
their counsel deemed appropriate regarding this Agreement and their rights and asserted rights in
connection therewith. The parties are not relying upon any representations or statements made by
any other party, or such other party’s employees, agents, representatives or attorneys, regarding
this Agreement, except to the extent such representations are expressly incorporated in this
Agreement. The parties are not relying upon a legal duty, if one exists, on the part of any other
party (or such other party’s employees, agents, representatives or attorneys) to disclose any
information in connection with the execution of this Agreement or its preparation, it being
expressly understood that no party shall ever assert any failure to disclose information on the
part of the other party as a ground for challenging this Agreement.

     9.14 Interpretation.  The headings contained in this Agreement and in the table of
contents to this Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. The word “including” and words of similar import when
used in this Agreement will mean “including, without limitation,” unless otherwise specified. The
operation of various provisions of this Agreement is illustrated by examples in Appendix A hereto,
and this Agreement shall be interpreted in accordance with such examples.

     9.15 Predecessors or Successors.  Any reference to Pride, Seahawk, Seahawk Subsidiaries, a
Person, or a Subsidiary in this Agreement shall include any predecessors or successors (e.g., by
merger or other reorganization, liquidation,

- 24 -

 

conversion, or election under Treasury Regulations
Section 301.7701-3) of Pride, Seahawk, Seahawk Subsidiaries, such Person, or such Subsidiary,
respectively.

     9.16 Expenses.  Except as otherwise expressly provided for herein, each party and its
Subsidiaries shall bear their own expenses incurred in connection with preparation of Tax Returns
and other matters related to Taxes under the provisions of this Agreement for which they are
liable.

     9.17 Effective Time.  This Agreement shall become effective on the date recited above on
which the parties entered into this Agreement.

     9.18 Change in Law.  Any reference to a provision of the Code or any other Tax Law shall
include a reference to any applicable successor provision or law.

     9.19 Disputes.  The procedures for discussion, negotiation and arbitration set forth in
Article V of the Master Separation Agreement shall apply to all disputes, controversies or claims
(whether sounding in contract, tort or otherwise) that may rise out of or relate to, or arise under
or in connection with this Agreement.

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

PRIDE INTERNATIONAL, INC.

	 	 	 	 	 
	 	By:  	
 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

SEAHAWK DRILLING, INC.

	 	 	 	 	 
	 	By:  	
 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

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APPENDIX A

     The following examples illustrate the operation of various provisions of this Agreement.
However, each example is not necessarily intended to illustrate every provision of this Agreement
that may be relevant thereto.

     Except as stated otherwise, each of the examples assumes (i) a U.S. federal income Tax rate of
35%, (ii) that the Distribution Date was March 31, 2009 and that both the Internal Distribution and
the External Distribution occurred thereon, (iii) that Seahawk files a Separate Return with respect
to all Taxes in 2010 and later years, (iv) that the Internal Distribution qualifies as a tax-free
transaction under Sections 368(a)(1)(D) and 355 of the Code, and (v) that the External Distribution
qualifies as a tax-free transaction under Section 355 of the Code. In addition, for convenience,
it is assumed that the amount of the credit for prior deemed tax payments which would otherwise be
allowed by Section 4.2(c) is zero.

     Example 1. General Tax Allocation on Joint Return and Non-Grossed Up Payment.

     On its U.S. federal consolidated income Tax Return for the Tax Year that begins January 1,
2009, and ends December 31, 2009, the Pride consolidated group reports $200x of consolidated net
taxable income, no credits, and a Tax liability of $70x (viz., (35%)($200x)). Of the $200x of
consolidated net taxable income reported on such Tax Return, $150x is attributable to and arises
from the Pride Business. The remaining $50x of consolidated net taxable income is attributable to
and arises from the Seahawk Business during the period in which Seahawk joins in the filing of such
Tax Return (viz., the period beginning January 1, 2009, and ending on the Distribution Date).
Pride’s basis in the stock of Seahawk immediately prior to the External Distribution was $17.5x.

     The $150x of taxable income attributable to the Pride Business and the $50x of taxable income
attributable to the Seahawk Business in each case includes deductions. However, in neither case
are these deductions a Tax Benefit, because the aggregate of such deductions in the Tax Year does
not exceed the income attributable to or arising from the relevant business in such Tax Year.

     Because Pride’s 2009 U.S. federal consolidated income Tax Return includes Tax Items of each of
the Pride Business and the Seahawk Business (determined without regard to Tax Items carried forward
to such Tax Year), it will be a Joint Return. Pursuant to Section 2.1, each of Pride and Seahawk
will be liable for its allocable portion of the $70x of Tax shown on such Joint Return. Because
$150x of the consolidated net taxable income contributing to the Tax was attributable to the Pride
Business and $50x of the consolidated net taxable income contributing to the Tax was attributable
to the Seahawk Business, pursuant to Section 2.2(a), $52.5x of Tax will be allocable to Pride
(viz., ($150x/$200x)($70x)) and $17.5x of Tax will be allocable to Seahawk (viz.,
($50x/$200x)($70x)).

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     Pursuant to Section 3.1(a), Pride is responsible for preparing and filing the Joint Return.
As a result, Pride will have the exclusive right to make those determinations described in Section
3.3(a) with respect to such Tax Return. Pursuant to Section 4.1, Pride must pay the $70x of Tax to
the Tax Authority. Pursuant to Section 4.2(a), Seahawk must remit the amount for which it is
liable (viz., $17.5x) to Pride within thirty days after receiving notification requesting such
amount. If payment is not made within thirty days, Seahawk must pay interest thereafter on the
amount past due at the rate and as determined under Section 4.4.

     Pursuant to Section 4.7, the parties must treat Seahawk’s payment of $17.5x as a distribution
to Pride immediately prior to the External Distribution. Because the $17.5x payment does not
exceed Pride’s basis in the Seahawk stock, Pride recognizes no gain. If, however, Pride had a
basis of $7.5x in its Seahawk stock immediately prior to the External Distribution, the $17.5x
deemed distribution would have created an excess loss account of $10x
(viz., $7.5x basis - $17.5x)
in Pride’s Seahawk stock, which $10x would have been included in income immediately before the
External Distribution pursuant to Treasury Regulations Section 1.1502-19. Section 4.7 provides
that Seahawk would not be required to gross up its $17.5x payment to Pride by the amount of Taxes
owed by Pride as a result of this $10x of income.

     Example 2. Separate Return filed by Seahawk.

     On the Joint Return for the Tax Year that begins on January 1, 2009 and ends December 31,
2009, the Pride consolidated group reports $200x of consolidated net taxable income, no credits,
and a Tax liability of $70x (viz., (35%)($200x)). Of the $200x of consolidated net taxable income
reported on such Joint Return, $150x is attributable to and arises from the Pride Business. The
remaining $50x of consolidated net taxable income is U.S. source taxable income attributable to and
arising from the Seahawk Business during the period in which Seahawk joins in the filing of such
Tax Return (viz., the period beginning January 1, 2009, and ending on the Distribution Date).

     The remaining $50x of consolidated taxable income represents 1/4 of the consolidated taxable
income of Seahawk and its subsidiaries during the period beginning January 1, 2009, and ending
December 31, 2009. In determining the $50x of consolidated net taxable income reported on the
Joint Return, Pride elected, under Treasury Regulations Section 1.1502-76(b)(2)(ii)(D), to allocate
the income of Seahawk and its consolidated subsidiaries ratably between (i) the period beginning on
January 1, 2009, and ending on the Distribution Date and (ii) the period beginning on April 1,
2009, and ending on December 31, 2009. No items of income constitute “extraordinary items” within
the meaning of Treasury Regulations Section 1.1502-76(b)(2)(ii)(C).

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

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Section 1.1502-76(b)(2)(ii)(D) to allocate the income of Seahawk and its consolidated
subsidiaries ratably between (i) the period beginning on January 1, 2009, and ending on the
Distribution Date and (ii) the period beginning on April 1, 2009, and ending on December 31, 2009,
Seahawk must, pursuant to Section 3.1(b)(ii), also make such election for itself and other members
of the Seahawk consolidated group on the related Separate Return prepared by Seahawk so that its
net consolidated income is allocated consistently with the Joint Return.

     Because no items of income constitute extraordinary items, the result is that $50x of
Seahawk’s net income is allocated to the Joint Return and $150x of Seahawk’s net income is
allocated to its Separate Return. Because the $150x of income allocated to the Separate Return is
allocated to Seahawk pursuant to Section 2.2(a), Seahawk must pay the $52.5x of Tax shown on such
Tax Return to the Tax Authority pursuant to Section 2.1(a)(i).

     Example 3. Tax and Tax Benefit Allocation on Joint Return.

     On the Joint Return for the Tax Year that begins on January 1, 2009, and ends December 31,
2009, the Pride consolidated group reports $200x of consolidated net taxable income, a $5x foreign
Tax credit, and a Tax liability of $65x (viz., (35%)($200x) -$5x). Of the $200x of consolidated
net taxable income reported on such Joint Return, $150x is foreign source taxable income
attributable to and arising from the Pride Business. The remaining $50x of consolidated net
taxable income is U.S. source taxable income attributable to and arising from the Seahawk Business
during the period in which Seahawk joins in the filing of such Tax Return (viz., the period
beginning January 1, 2009, and ending on the Distribution Date). In addition, the $5x foreign Tax
credit is allocated to Seahawk pursuant to Section 2.2(a) and such Tax credit arose during 2008 and
is properly carried forward to the 2009 Joint Return. During its short Tax Year beginning on April
1, 2009, and ending on December 31, 2009, the Seahawk Business generated $100x of foreign source
taxable income.

     Section 2.2 first allocates the Tax which would be payable pursuant to Section 2.1 in the
absence of any Tax Benefit, such as the $5x foreign Tax credit. Thus, before taking into account
the $5x foreign Tax credit, $52.5x of Tax would be allocable to Pride and $17.5x of Tax would be
allocable to Seahawk, as in Example 1. Section 2.2 then allocates the Tax Benefit, consisting of
the $5x foreign Tax credit.

     Under applicable Tax Law, Seahawk’s short Tax Year ending on the Distribution Date will be
considered the same Tax Year as Pride’s Tax Year ending on December 31, 2009 (and which includes
Seahawk’s short Tax Year), but will be considered a different Tax Year from Seahawk’s short Tax
Year that begins after the Distribution Date. After taking into account only those Tax Items
allocated to it, the $5x foreign Tax credit would not be allowable to Seahawk under applicable Tax
Law because Seahawk has no foreign source taxable income during its short Tax Year ending on the
Distribution Date. Accordingly, pursuant to Section 2.1(c), Seahawk shall not take into account
(and shall not be considered to have taken into account) the Tax Benefit, consisting of the $5x
foreign Tax credit. And pursuant to Section 2.1(b), Pride will be

- 29 -

 

entitled to use such foreign Tax credit and will not be required to compensate Seahawk
therefor, notwithstanding the fact that Seahawk would otherwise have been able to use such foreign
Tax credit in its short Tax Year following the Distribution Date.

     Thus,
the ultimate Tax liability of $65x (viz., (35%)($200x) - $5x) shown on the Joint Return
will be allocated $47.5x to Pride (viz., $52.5x - $5x) and $17.5x to Seahawk.

     Example 4. Tax Credit Carryforward on Seahawk Separate Return.

     On its Separate Return for the Tax Year that begins on January 1, 2010, and ends December 31,
2010, the Seahawk consolidated group has $100x of consolidated net taxable income, no losses, and
$70x of Tax credits. All $100x of consolidated net taxable income reported on the Separate Return
is foreign source taxable income attributable to and arising from the Seahawk Business. The $70x
of Tax credits consist of (i) a $50x foreign Tax credit carryforward which was generated in 2008 by
a member of the Seahawk Group (as the Seahawk Group was composed in 2008) which was at all times
during 2008 engaged solely in the Pride Business, and (ii) a $20x foreign Tax credit carryforward
which was generated in 2008 by a member of the Seahawk Group (as the Seahawk Group was composed in
2008) which was at all times during 2008 engaged solely in the Seahawk Business. Pride was unable
to use the $50x foreign Tax credit on its 2008 and 2009 Joint Returns, and under applicable Tax
Law, the $50x foreign Tax credit is properly carried forward and used by Seahawk on its 2010
Separate Return. Similarly, the $20x foreign Tax credit is properly carried forward and used by
Seahawk on its 2010 Separate Return.

     As above, Section 2.2 first allocates the Tax which would be payable pursuant to Section 2.1
in the absence of any Tax Benefit, such as the $70x Tax credits. Thus, before taking into account
the $70x Tax credits, $35x of Tax would be allocable to Seahawk because all $100x of the
consolidated net taxable income contributing to the Tax was attributable to the Seahawk Business.
Section 2.2 then allocates the Tax Benefits, consisting of the $70x Tax credits. Because the $50x
foreign Tax credit carryforward was attributable to the Pride Business, it is allocated to Pride
pursuant to Section 2.2. This is true regardless of the fact that the foreign Tax credit was
generated by a member of the Seahawk Group (as the Seahawk Group was composed in 2008). Because
the $20x foreign Tax credit was attributable to the Seahawk Business, it is allocated to Seahawk
pursuant to Section 2.2.

     Under the facts above, Seahawk is entitled to use both the $50x foreign Tax credit and the
$20x foreign Tax credit on its 2010 Separate Return. However, because the $50x foreign Tax credit
arose in a Tax Year that begins on or before the Distribution Date, was allocated to Pride pursuant
to Section 2.2, and was used by Seahawk to reduce its Taxes in a Tax Year which begins after the
Distribution Date, Seahawk must, pursuant to Sections 2.1(a)(ii), 4.2(d)(ii), and 4.2(d)(iii), pay
to Pride an amount equal to such Tax Benefit within fifteen business days following the time that
Seahawk files such Separate Return.

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     Pursuant to Section 4.2(d)(iii), the amount of the Tax Benefit that Seahawk must pay to Pride
will be the amount by which Seahawk’s Taxes are actually reduced by using the $50x foreign Tax
credit on its 2010 Separate Return (determined in accordance with the provisions of Section
2.1(c)). Pursuant to Section 2.1(c), Seahawk is considered to have used a pro rata portion of each
of the $20x foreign Tax credit and the $50x foreign Tax credit. Such pro rata portions are
determined by multiplying each Tax credit used on Seahawk’s 2010 Separate Return by a fraction, the
numerator of which is equal to the total reduction in Seahawk’s Taxes resulting from the actual use
of Tax Benefits (viz., $35x), and the denominator of which is equal to the total reduction in Taxes
that would result if Seahawk had been able to use all of the Tax Benefits to which it would be
entitled (viz., $70x). Seahawk is thus considered to have used $25x of the $50x foreign Tax credit
(viz., $50x($35x/$70x)) and $10x of the $20x foreign Tax credit (viz., $20x($35x/$70x)) on its 2010
Separate Return.

     Thus, on its 2010 Separate Return, Seahawk reports an ultimate Tax liability of $0x (viz.,
(35%)($100x) - $35x), but must pay $25x to Pride within fifteen business days following the time
that Seahawk files its 2010 Separate Return.

     Example 5. Carryback of Tax Benefit by Seahawk.

     On the Joint Return for the Tax Year that begins on January 1, 2009 and ends December 31,
2009, the Pride consolidated group reports $200x of consolidated net taxable income, no credits,
and a Tax liability of $70x (viz., (35%)($200x)). Of the $200x of consolidated net taxable income
reported on such Joint Return, $150x is attributable to and arises from the Pride Business. The
remaining $50x of consolidated net taxable income is attributable to and arises from the Seahawk
Business during the period in which Seahawk joins in the filing of such Tax Return (viz., the
period beginning January 1, 2009, and ending on the Distribution Date).

     In addition, the Seahawk Business has $150x of net taxable income and no losses or credits
during the period beginning on April 1, 2009, and ending on December 31, 2009, but, in 2010, the
Seahawk Business generates a $150x net operating loss (“NOL”), which constitutes a Tax Benefit
allocated to Seahawk pursuant to Section 2.2(a).

     Pursuant to Section 3.3(d), Seahawk must elect under Section 172(b)(3) of the Code to
relinquish the entire carryback period with respect to the $150x NOL because such NOL may not be
carried back to the 2009 Joint Return. Under applicable Tax Law, the relinquished carryback period
includes the period beginning on January 1, 2009, and ending on the Distribution Date, with respect
to the Joint Return, and the period beginning on April 1, 2009, and ending on December 31, 2009,
with respect to Seahawk’s Separate Return.

     However, if Seahawk generated a foreign Tax credit in its Tax Year ending December 31, 2009,
which would otherwise be carried back to the Joint Return under applicable Tax Law, Seahawk is not
required to claim a deduction for, rather than elect to credit, foreign Taxes paid in 2009, in
order to avoid the carryback of the foreign

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

     Example 6. NOL Carryforward as a Tax Benefit on Joint Return.

     On the Joint Return for the Tax Year that begins on January 1, 2009 and ends December 31,
2009, the Pride consolidated group reports $150x of consolidated net taxable income, no credits,
and a Tax liability of $52.5x (viz., (35%)($150x)). Of the $150x of consolidated net taxable
income reported on such Tax Return, all $150x is attributable to and arises from the Pride
Business. In addition, the Seahawk Business generated a $150x NOL in 2008, which is carried
forward to the 2009 Joint Return under applicable Tax Law.

     As above, Section 2.2 first allocates the Tax which would be payable pursuant to Section 2.1
in the absence of any Tax Benefit. Thus, before taking into account any Tax Benefits, $52.5x of
Tax would be allocable to Pride pursuant because all $150x of the consolidated net taxable income
contributing to the Tax was attributable to the Pride Business, and $0x of the consolidated net
taxable income contributing to the Tax was attributable to the Seahawk Business. Section 2.2 then
allocates any Tax Benefits. Because no amount of the NOL carryforward can be used as a deduction
by Seahawk, the entire $150x NOL will constitute a Tax Benefit. Moreover, because the $150x NOL
was attributable to the Seahawk Business, it is a Tax Benefit that is allocated to Seahawk pursuant
to Section 2.2(a). Under applicable Tax Law and pursuant to Section 2.1(a), however, Pride will be
entitled to use the NOL as a Tax Benefit to reduce its consolidated taxable income in 2009 and will
not be required to compensate Seahawk therefor. Thus, in 2009, Pride will be obligated to pay Tax
of $0x (viz., (35%)($150x — $150x) to the Tax Authority and $0x to Seahawk.

     Example 7. Breach of Covenants and Grossed-Up Payment.

     Immediately before the Internal Distribution, (i) Seahawk held the DeepCo stock with a fair
market value of $250x and a basis of $50x, and (ii) Pride held the Seahawk stock with a fair market
value of $500x and a basis of $200x. In 2010 Pride enters into a merger whereby an acquiring
corporation acquires all of the assets and liabilities of Pride and Pride’s shareholders receive
stock in the acquiring corporation in exchange for all of their stock in Pride. Assume that
entering into the merger causes the External Distribution to be taxable to Pride under Section
355(e) and causes the Internal Distribution to fail to qualify as a tax-free transaction described
under Sections 368(a)(1)(D) and 355 of the Code (see Section 355(f)).

     As a result, Seahawk and Pride will be required to recognize all of their realized gain on the
Internal Distribution and External Distribution, respectively. After taking into account the basis
adjustments to the Seahawk stock as a result of recognizing the $200x of gain on the Internal
Distribution and as a result of the distribution itself, the

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merger results in a net Tax liability of $105x (viz., (35%)($100x gain on External
Distribution + $200x gain on Internal Distribution)).

     Pursuant to Section 2.2(b), all $105 of the Tax (viz., (35%)($300x)) resulting from the
Internal Distribution and External Distribution would be allocated to Pride because entering into
the merger will cause Section 355(e) to apply to the External Distribution.

     Example 8. Redetermination of Foreign Tax.

     On the Joint Return for the Tax Year that begins on January 1, 2008, and ends December 31,
2008, the Pride consolidated group reports $200x of consolidated net taxable income, a $40x foreign
Tax credit, and a Tax liability of $30x (viz., (35%)($200x) – $40x of foreign Tax credits). Of the
$200x of consolidated net taxable income reported on such Joint Return, $40x is foreign source
taxable income and $60x is U.S. source taxable income attributable to and arising from the Pride
Business and $100x is foreign source taxable income attributable to and arising from the Seahawk
Business. The $40x foreign Tax credit is allocated to Seahawk pursuant to Section 2.2(a).

     Section 2.2 first allocates the Tax which would be payable pursuant to Section 2.1 in the
absence of any Tax Benefit, such as the $40x foreign Tax credit. Thus, before taking into account
the $40x foreign Tax credit, $35x of Tax would be allocable to Pride and $35x of Tax would be
allocable to Seahawk. Section 2.2 then allocates the Tax Benefit, consisting of the $40x foreign
Tax credit. After taking into account only those Tax Items allocated to Seahawk, the $40x foreign
Tax credit would be allowable to Seahawk under applicable Tax Law, but Seahawk would be limited to
using an amount thereof equal to its $35x of Tax determined before utilizing the foreign Tax
credit. Pursuant to Section 2.1(c), Seahawk will take into account (and will be considered to have
taken into account) a $35x Tax Benefit, consisting of $35x of the foreign Tax credit. As a result,
Seahawk would be liable for $0x of Taxes pursuant to
Section 2.1(a)(i) (viz., ($100x)(35%) - $35x).
Pursuant to Section 2.1(c)(i), Pride will be entitled to use the remaining $5x of such foreign Tax
credit and will not be required to compensate Seahawk therefor. As a result, Pride would be liable
for $30x of Taxes pursuant to Section 2.1(b)(i) (viz.,
($100x)(35%) - $5x). Thus, the Tax
liability of $30x (viz., (35%)($200x) – $40x) shown on the Joint Return is allocated $30x to Pride
(viz., (35%)($100x) - $5x) and $0x to Seahawk (viz.,
(35%)($100x) - $35x).

     On June 16, 2010, a date subsequent to the Distribution Date, Seahawk pays $30x to the Mexican
government in settlement of a Tax Contest attributable to the Seahawk Business for the 2008 Tax
Year. As required by Section 3.3(a), Pride amends the Pride consolidated group’s Joint Return for
the 2008 Tax Year to claim a foreign Tax credit for the $30x paid by Seahawk to the Mexican
government and receives a refund of $9x (viz. (35%)($200x) = $70; ($70)($140x/$200x) = $49x foreign
Tax credit limitation; $49x - $40x = $9x).

     As a result of amending such Joint Return, Section 4.3 requires that the amounts paid under
this Agreement be redetermined as follows. Section 2.2 first

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allocates the Tax which would be payable pursuant to Section 2.1 in the absence of any Tax
Benefit, such as the $70x foreign Tax credit. Thus, before taking into account the $70x foreign
Tax credit, $35x of Tax would be allocable to Pride and $35x of Tax would be allocable to Seahawk.
Section 2.2 then allocates the Tax Benefit, consisting of the $70x foreign Tax credit. After
taking into account only those Tax Items allocated to Seahawk, the $70x foreign Tax credit would be
allowable to Seahawk under applicable Tax Law in an amount equal to its $35x of Tax determined
before utilizing the foreign Tax credit. Pursuant to Section 2.1(c), Seahawk will take into
account (and will be considered to have taken into account) a $35x Tax Benefit, consisting of $35x
of the foreign Tax credit. As a result, Seahawk would be liable for $0x of Taxes pursuant to
Section 2.1(a)(i) (viz., ($100x)(35%) - $35x). Pursuant to Section 2.1(b) and 2.1(c), Pride will
be entitled to use the remaining $35x of such foreign Tax credit, but will be limited to using $14x
thereof after taking into account the foreign Tax credit limitation based only on Pride’s Tax Items
(viz., ($100x)(35%) X ($40x/$100x)). As a result, Pride would be liable for $21x of Taxes pursuant
to Section 2.1(b)(i) (viz., ($100x)(35%) - $14x). Thus, the amended Tax liability of $21x (viz.,
(35%)($200x) – $49x) shown on the amended Joint Return is allocated $21x to Pride (viz.,
(35%)($100) - $14x) and $0x to Seahawk (viz., (35%)($100x) - $35x), and the remainder of the
foreign Tax credits for 2008 (viz., $21x = $70x - $49x) will be carried back or forward under
applicable Tax Law.

     Because the $30x additional foreign Tax credit arose as a result of the resolution after the
Distribution Date of a Tax Contest for a Tax Year that began prior to the Distribution Date, such
foreign Tax credit was allocated to Seahawk pursuant to Section 2.2, and Pride used $9x (viz., $14x
- $5x of foreign Tax credits attributable to Tax Years beginning prior to the Distribution Date) of
such foreign Tax credit to reduce Taxes payable by it pursuant to clause (i) of Section 2.1(b) for
a Tax Year that began on or before the Distribution Date, Pride must, pursuant to Sections
2.1(b)(ii)(C) and 4.2(d)(i), pay to Seahawk $9x, which is equal to the amount of such additional
foreign Tax credit, within fifteen days following Pride’s receipt of such refund.

     The unused foreign Tax credit of $21x is a Tax Benefit which is allocated to Seahawk under
Section 2.2(a) and will be subject to the provisions of this Agreement which apply to Tax Benefits.

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EXHIBIT A

Estimate of Tax Items

- 35 -

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