Document:

EX-10.1

 Exhibit 10.1 

THE DIAMOND OFFSHORE DRILLING, INC. 

INCENTIVE COMPENSATION PLAN 

(Amended and Restated as of January 1, 2018) 
  

	1.	PURPOSE OF THE PLAN 

 The purpose of The Diamond Offshore Drilling, Inc. Incentive
Compensation Plan (the “Plan”) is to provide a means of rewarding certain executive officers, officers and key employees of Diamond Offshore Drilling, Inc. (the “Corporation”) or its subsidiaries who have
contributed to the profitability of the Corporation and to encourage them to remain with and devote their best efforts to the business of the Corporation, thereby advancing the interests of the Corporation and its stockholders. 

 

	2.	ADMINISTRATION OF THE PLAN 

 The Plan shall be administered by the Compensation Committee
(the “Committee”) of the Board of Directors of the Corporation (the “Board”). In the event the Board is the administrator of the Plan, references herein to the Committee shall be deemed to refer to the Board. The
administration of this Plan shall be vested in the Committee, or such other committee of the Board of Directors which shall succeed to the functions and responsibilities of such committee in relation to this Plan, which shall make all determinations
necessary under this Plan. No member of the Committee shall be entitled to participate in this Plan. 
 The Committee shall have sole
authority to (i) select Participants, (ii) establish any appropriate grouping of Participants for purposes of making award grants pursuant to this Plan (“Incentive Awards”), (iii) establish conditions for receipt of
an Incentive Award for a Performance Period based upon corporate, group, or individual performance, or a combination thereof, or such other criteria as the Committee may determine to be appropriate, and (iv) establish the amount of an Incentive
Award, if any, to be granted to a Participant with respect to a Performance Period and the terms thereof, including the establishment of any deferral period. The Committee may also, in its sole discretion, waive any eligibility, performance, or
other criteria under the Plan in a manner favorable to a particular Participant or to Participants generally, upon such terms as the Committee deems appropriate. The Committee is authorized to interpret the Plan and may from time to time adopt such
rules and regulations, consistent with the provisions of the Plan, as it may deem advisable to carry out the Plan. All decisions made by the Committee in selecting Participants, determining who shall be granted Incentive Awards and the amount
thereof, and in construing the provisions of the Plan or the terms of any Incentive Award shall be final and binding on all Participants. 

	3.	PARTICIPATION IN THE PLAN 

 The Committee may designate one or more executive officers,
officers and key employees of the Corporation or any subsidiary thereof (each, a “Participant”) who shall participate in this Plan for one or more Performance Periods or Multiple Award Periods (as those terms are defined in
Section 6 below). 
 No employee shall become a Participant in the Plan until such employee has received an Incentive Award providing
for such participation. Once an employee is selected to participate in the Plan, he or she remains a Participant until (i) such designation is revoked by the Committee, which the Committee in its discretion may do at any time, but only
prospectively, or (ii) such employee’s employment with the Corporation or any subsidiary thereof is terminated, whichever occurs first. An employee whose designation as a Participant is revoked by the Committee shall continue to
participate in the Plan to the extent of any unpaid Incentive Awards but shall not otherwise be considered a Participant. No employee shall be disqualified from eligibility merely by reason of his or her being a director of the Corporation or any
subsidiary thereof. 
  

	4.	PERFORMANCE GOALS 

 (a)    Performance Awards Generally. The
Committee is authorized to grant performance Incentive Awards on the terms and conditions specified in this Section 4 (“Performance Awards”). Performance Awards shall be payable in cash. The Committee may select such of the
performance measures set forth in Section 4(c) or other performance measures as it may deem appropriate in granting any Performance Awards. The grant and settlement of all Performance Awards shall be contingent upon achievement of pre-established performance goals and other terms set forth in this Section 4. 

(b)    Objective Performance Goals. The Committee shall establish written, objective performance goals for a
Performance Period (the “Goals”). In the event of a Multiple Award Period, the Goals shall be established for the first Performance Period in the Multiple Award Period. The Goals shall be stated as specific amounts of, or specific
changes in, one or more of the performance measures selected by the Committee in granting the Performance Awards. The Goals need not be the same for different Performance Periods. The aggregate amount of the Performance Awards determined based on
the Goals for a given award period (the “Performance-Based Amount”) shall be allocated to the Participants in accordance with Section 5 hereof. 

(c)    Performance Measures. The Committee shall use performance measures it deems appropriate to establish the
Goals under Section 4(b), including any one or more of the following performance measures: (i) earnings including operating income, earnings before or after taxes, earnings before or after interest, depreciation, amortization, or
extraordinary or special items or book value per share (which may exclude nonrecurring items); (ii) pre-tax income or after-tax income; (iii) earnings per common
share (basic or diluted) including operating earnings per share; (iv) operating profit; (v) revenue, revenue growth or rate of revenue growth; (vi) assets, return on assets (gross or net), return on investment, capital, return on
capital, or return on equity; (vii) returns on sales or revenues; (viii) expenses, operating expenses or expense ratios; 

  
 2 

 
(ix) stock price appreciation or stockholder equity; (x) cash flow, free cash flow, cash flow return on investment (discounted or otherwise), net cash provided by operations, or cash flow in
excess of cost of capital; (xi) implementation or completion of critical projects or processes; (xii) economic value created; (xiii) cumulative earnings per share growth; (xiv) operating margin or profit margin; (xv) book
value, common stock price or total stockholder return; (xvi) cost targets, reductions and savings, productivity and efficiencies; (xvii) debt to capital ratio or market share; (xviii) strategic business criteria, consisting of one or
more objectives based on meeting specified market penetration, geographic business expansion, customer satisfaction, employee satisfaction, human resources management, supervision of litigation, information technology, and goals relating to
acquisitions, divestitures, joint ventures and similar transactions, and budget comparisons; (xix) personal professional objectives, including any of the foregoing performance goals, the implementation of policies and plans, the negotiation of
transactions, the development of long-term business goals, formation of joint ventures, research or development collaborations, and the completion of other corporate transactions; and (xx) any combination of, or a specified increase in, any of
the foregoing. Where applicable, the performance measures may be expressed in terms of attaining a specified level of the particular criteria or the attainment of a percentage increase or decrease in the particular criteria, and may be applied to
one or more of the Corporation, a subsidiary or affiliate, or a division or strategic business unit of the Corporation, or may be applied to the performance of the Corporation relative to a market index, a group of other companies or a combination
thereof, all as determined by the Committee. The performance measures may include a threshold level of performance below which no payment will be made (or no vesting will occur), levels of performance at which specified payments will be made (or
specified vesting will occur), and a maximum level of performance above which no additional payment will be made (or at which full vesting will occur). Each of the foregoing performance measures shall be determined in accordance with generally
accepted accounting principles, if applicable, and shall be subject to certification by the Committee; provided that the Committee shall have the authority to make equitable adjustments to the performance measures in recognition of unusual or
nonrecurring events affecting the Corporation or any subsidiary or affiliate or the financial statements of the Corporation or any subsidiary or affiliate, in response to changes in applicable laws or regulations, or to account for items of gain,
loss or expense determined to be extraordinary or unusual in nature or infrequent in occurrence or related to the disposal of a segment of a business or related to a change in accounting principles or any other unusual transaction or event. 

(d)    Written Determinations. The Committee shall record in writing, prior to settlement of each such award
granted to a Participant, that the Goals relating to the Performance Award and other material terms of the award upon which settlement of the Performance Award was conditioned have been satisfied. 

 

	5.	AWARDS TO PARTICIPANTS 

 (a)     Performance Awards. The
Committee shall allocate in writing, on behalf of each Participant, (a) the amount available for Performance Awards to such Participant, on the basis of the Goals for such Performance Period, pursuant to a formula determined by the Committee
subject to and in accordance with Section 4 and this Section 5 or (b) a percentage of Performance-Based Amount on which such Participant’s award will be based and, in each case, 

  
 3 

 
the Committee may, in its discretion, determine to reserve the discretion (“Negative Discretion”) to reduce the amount payable to the Participant below the designated portion of
Performance-Based Amount. In the event of a Multiple Award Period, for all included Performance Periods the Committee shall allocate in writing, on behalf of each Participant, a portion of Performance-Based Amount (which shall be determined as
provided in clause (a) or (b) above in this Section 5) for each of the Performance Periods in the Multiple Award Period or, in the alternative, an aggregate formula for the later Performance Periods in the Multiple Award Period based on
the total of assigned portions of Performance-Based Amount for the then current and the prior Performance Periods included in the Multiple Award Period. In no event shall the sum of the portions of Performance-Based Amount allocated to Participants
exceed the Performance Based Amount determined in Section 4 for any Performance Period, nor shall any exercise of Negative Discretion with respect to one Participant increase the amount payable to any other Participant. For the avoidance of
doubt, overlapping Performance Periods and/or Multiple Award Periods may be established for a Participant. The Committee shall set a maximum amount payable for each Participant for each Performance Period, which shall not exceed $7,500,000 per year
or a pro rata portion thereof for Performance Periods which are greater or less than one year. 
 (b)    Time-Vesting
Awards. The Committee is authorized to grant time-vested Incentive Awards on the terms and conditions specified in this Section 5(b) (“Time-Vesting Awards”). Time-Vesting Awards shall be payable in cash. The Committee may
select the applicable vesting date or dates for such Time-Vesting Awards or portions thereof (the “Vesting Date”) as it may deem appropriate in granting any Time-Vesting Awards. On or prior to the start of a Performance Period, the
Committee shall allocate in writing, on behalf of each Participant, the amount of such Time-Vesting Awards to such Participant and the Vesting Date. The aggregate amount of such Time-Vesting Awards shall be referred to as the “Time-Based
Amount.” In the event of a Multiple Award Period, the Committee shall allocate in writing, on behalf of each Participant, the amount of such Time-Vesting Awards to such Participant and the applicable Vesting Date. For the avoidance of
doubt, overlapping Performance Periods and/or Multiple Award Periods may be established for a Participant. 
  

	6.	PERFORMANCE PERIOD 

 The term “Performance Period” means a period
established by the Committee during which (a) for Performance Awards, performance will be measured for purposes of determining the extent to which one or more Participants will receive awards under this Plan, and (b) for Time-Vesting
Awards, the period of time containing the Vesting Date(s) over which the Time-Vesting Awards may vest. Generally, a Performance Period for Performance Awards shall be the twelve-month period commencing January 1 of a calendar year and ending on
December 31 of such calendar year or a future calendar year. The Performance Period for Time-Vesting Awards shall be the time period or periods specified in the Incentive Award. In addition, the Committee may establish Performance Periods
beginning and/or ending on other dates (including without limitation Performance Periods of less or more than one calendar year). Furthermore, the Committee may designate Participants for future Performance Period awards (a “Multiple Award
Period”). 

  
 4 

	7.	CERTIFICATION OF PERFORMANCE AWARDS UNDER THE PLAN 

 Following the completion of each
Performance Period, the Committee shall certify in writing for Performance Awards (a) the Performance-Based Amount, if any, for such Performance Period and (b) the Performance Awards that are consequently payable to the Participants
according to the pre-established formulae. For the avoidance of doubt, there is no certification required for Time-Vesting Awards. 
  

	8.	PAYMENT AND DEFERRAL OF PAYMENT OF AWARDS 

 (a)    Except as
otherwise provided in this Section 8, Performance Awards and Time-Vesting Awards for each Performance Period shall be paid to Participants upon such terms as the Committee determines to be appropriate, including, without limitation, deferral of
all or a portion of the Performance Award, subject to applicable provisions of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations thereunder, as they may from time to time be in effect (the
“Regulations”) (and any applicable Internal Revenue Service (“IRS”) guidance thereunder). All portions of Performance Awards that are not deferred shall be paid as soon as administratively feasible after the Initial
Payout Date (as defined below). In the event payment of any portion of a Performance Award is deferred, the deferred portion of the Performance Award shall bear “interest” at a rate per annum equal to the Treasury rate in effect on the
January 31 immediately preceding the Initial Payout Date for the Performance Award. The applicable Treasury rate shall be the rate for Treasury bills, bonds or notes with a term closest to the midpoint of the deferral term of the Performance
Award. For instance, if a portion of a Performance Award is deferred for 60 months that portion of the Performance Award will bear “interest” at the Treasury rate closest to 30 months. “Interest” shall be payable with
each deferred payment of Performance Awards and shall be calculated on the balance outstanding since the immediately preceding payment of a portion of the Performance Awards. 

(b)    No deferral of the payment of all or any portion of a Performance Award shall be permitted if and to the extent
such deferral would cause such payment, or any portion thereof, to be treated as “deferred compensation” taxable under Section 409A(a)(1) of the Code or the Regulations or other IRS guidance thereunder. 

(c)    Except as provided in subsection (d), (e) or (f) of this Section 8 or Section 9, if a
Participant’s employment with the Corporation or any of its subsidiaries is terminated voluntarily by the Participant or is Terminated for Cause, such termination shall cause the Participant to forfeit any and all amounts remaining to be paid
to such Participant under the Plan, including, but not limited to, any Performance Award or Time-Vesting Award as to which the Initial Payout Date has not been attained prior to the termination. 

(d)    In the event a Participant’s employment with the Corporation or any of its subsidiaries terminates by reason
of his or her death, Retirement (as defined below), or Disability (as defined below), the Corporation shall pay to such Participant (or to such Participant’s estate) the full amount of his or her earned but unpaid Performance Awards or
Time-Vesting Awards. Such payment shall be made as soon as administratively feasible following the date of such Participant’s termination, except that, in the case of any Performance Award as to which the Initial Payout Date has not been
attained prior to the date of termination, such payment shall be made on the Initial Payout Date, or as soon as administratively feasible thereafter. 

  
 5 

 (e)    Unless a Participant’s employment with the Corporation or any of
its subsidiaries is terminated voluntarily by the Participant or is Terminated for Cause, the Corporation shall pay to such Participant the full amount of his or her earned but unpaid Performance Awards or Time-Vesting Awards. Subject to
Section 8(b), such payment shall be made as soon as administratively feasible following the date of such Participant’s termination, except that, in the case of any Performance Award as to which the Initial Payout Date has not been attained
prior to the date of termination, such payment shall be made on the Initial Payout Date, or as soon as administratively feasible thereafter. 

(f)    Regardless of how a Participant’s employment with the Corporation or any of its subsidiaries terminates, the
Committee, in its sole discretion, may elect to have the Corporation pay to such Participant all or any part of his or her earned but unpaid Performance Awards or Time-Vesting Awards. Subject to Section 8(b), such payment shall be made as soon
as administratively feasible following the Committee’s determination, except that, in the case of any Performance Award or Time-Vesting Award as to which the Initial Payout Date has not been attained prior to the date of such determination,
such payment shall be made on the Initial Payout Date, or as soon as administratively feasible thereafter. 

(g)    Notwithstanding anything in this Plan to the contrary, the Committee may provide for the treatment of Performance
Awards or Time-Vesting Awards hereunder upon termination of employment which vary from those set forth in the Plan, which provisions shall be set forth in the employment or engagement agreement between a Participant and the Corporation or any
subsidiary thereof (or in an award agreement). 
 (h)    Any amounts forfeited by any Participant under the Plan shall
not be restored to the Performance-Based Amount or Time-Based Amount or paid to another Participant as a Performance Award or Time-Vesting Award. Furthermore, at all times each Performance-Based Amount or Time-Based Amount remains the property of
the Corporation until such amounts are allocated as Performance Awards or Time-Vesting Awards and paid to Participants pursuant to the terms of the Plan. 

(i)    Performance Awards and Time-Vesting Awards to Participants will be treated for tax purposes the same as amounts
paid to such Participant as salary in the year in which such Performance Award or Time-Vesting Award is actually paid. The Corporation shall be entitled to withhold from any amount payable hereunder the amount of any federal, state or local tax
owed, as determined by the Corporation. 
 (j)    For purposes of this Section 8 and Section 9, the following
capitalized terms shall have the following meanings: 
 (i)    Disability. “Disability” shall have the
meaning set forth in the employment or engagement agreement between a Participant and the Corporation or any subsidiary thereof, if such an agreement exists and contains a definition of Disability; otherwise

  
 6 

 
“Disability” means the inability of a Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period of not less than twelve months, as provided in Section 409A(a)(2)(C) of the Code and the Regulations (and any applicable IRS guidance thereunder), including Prop.
Treas. Reg. § 1.409A-3(g)(4). For purposes of this Section 8 and Section 9, a Participant will be deemed disabled if such Participant is determined to be totally disabled by the Social
Security Administration. Moreover, a Participant will be deemed disabled if such Participant is determined to be disabled in accordance with a disability insurance program of the Corporation, provided that the definition of disability applied under
such disability insurance program complies with the requirements of the Regulations (and any applicable IRS guidance thereunder), including Prop. Treas. Reg. § 1.409A-3(g)(4). 

(ii)    Initial Payout Date. The Initial Payout Date for a Performance Award shall be the Payout Date immediately
following a Performance Period. The Initial Payout Date for a Time-Vesting Award shall be the initial Vesting Date specified in the Incentive Award which provides for payment of the first portion of such Time-Vesting Award. 

(iii)    Payout Date. A date selected by the Committee. 

(iv)    Retirement. Termination of employment with the Corporation or any of its subsidiaries by a Participant on or
after reaching age 60, unless the Participant’s employment is Terminated for Cause. 
 (v)    Terminated for
Cause. The term “Cause” shall have the meaning set forth in the employment or engagement agreement between a Participant and the Corporation or any subsidiary thereof, if such an agreement exists and contains a definition of Cause;
otherwise Cause shall mean (1) conviction of the Participant for committing a felony under Federal law or the law of the state in which such action occurred, (2) dishonesty in the course of fulfilling a Participant’s employment,
engagement or directorial duties, (3) willful and deliberate failure on the part of a Participant to perform the Participant’s employment, engagement or directorial duties in any material respect or (4) such other events as shall be
determined in good faith by the Board. The Board shall, unless otherwise provided elsewhere or in an employment agreement with the Participant, have the sole discretion to determine whether Cause exists, and its determination shall be final. 

 

	9.	SEPARATION FROM THE CORPORATION AND ITS SUBSIDIARIES 

(a)    Participants who cease to be employed by the Corporation or its subsidiaries prior to the end of a Performance
Period, other than due to Retirement (as defined in Section 8), death or Disability (as defined in Section 8), shall not be eligible to receive a Performance Award for the Performance Period in which such termination of employment occurs
or any unvested portion of a Time-Based Award for the Performance Period in which such termination of employment occurs; provided, that the Committee may, in its sole discretion, determine that such a Participant shall receive a Performance Award
which is prorated to the date of cessation of employment but based upon the Performance-Based Amount for the entire Performance Period. 

  
 7 

 (b)    Participants who cease to be employed by the Corporation or its
subsidiaries prior to the end of a Performance Period due to Retirement (as defined in Section 8), death or Disability (as defined in Section 8) shall receive a Performance Award which is prorated to the date of cessation of employment but
based upon the Performance-Based Amount for the entire Performance Period. 
 (c)    Any Participant may designate in
writing the beneficiary of the unpaid amount of a Performance Award or Time-Vesting Award (including the amount of any Performance Award or Time-Vesting Award which was previously deferred) in case of death and if no designation has been made, or if
any such designation shall become ineffective, any such unpaid amount will be paid to the Participant’s estate. Such designation shall be effective upon receipt thereof by the Corporation. Any such designation may be revoked in writing by a
Participant at any time without the consent of any such beneficiary. 
  

	10.	AMENDMENTS 

 The Committee may amend this Plan at any time. The Committee may also amend
this Plan as it deems necessary or appropriate to comply with any applicable provisions of the Code or the Regulations (and any applicable IRS guidance thereunder) in relation to the ability to defer award payments in a manner that will avoid the
application of Section 409A(a)(1) of the Code to such payments. If the Code or the Regulations would require stockholder approval of such amendment in order for payments under this Plan to be deductible, then no such amendment shall be
effective without such approval. 
  

	11.	TERMINATION 

 The Board of Directors of the Corporation may terminate this Plan at any
time. No termination of this Plan shall adversely affect the right of any person to receive any award for a Performance Period or Periods for which such person had been designated under Section 3 of this Plan, or amounts previously awarded to
such person but deferred in accordance with Section 8 of this Plan plus any interest thereon. 
  

	12.	MISCELLANEOUS 

 (a)    Nothing contained in this Plan shall be
construed as giving any executive officer, officer or key employee of the Corporation or any subsidiary thereof the right to participate in this Plan or to continued employment or any interest in any asset of the Corporation or any of its
subsidiaries, nor to prevent the Corporation or any of its subsidiaries or affiliates from taking any action which it deems to be appropriate or in its best interests, whether or not such action would have an adverse effect on this Plan or the
amounts payable hereunder. 
 (b)    This Plan shall be unfunded and the Corporation shall not be required to establish
any segregation of assets to assure payment of any awards made hereunder. 

  
 8 

 (c)    A Participant may not sell, transfer or assign any right or interest
in this Plan except as provided in Section 9(c) hereof and any attempted sale, transfer or assignment shall be null and void. 

(d)    Section 409A. This Plan is intended to comply with, or be exempt from, the requirements of Code
Section 409A, including any future amendments to Code Section 409A, and any other IRS or other governmental rulings or interpretations (“IRS Guidance”) issued pursuant to Code Section 409A. Accordingly, the
Corporation reserves the right to amend the provisions of this Plan at any time and in any manner without the consent of any Participants to comply with the requirements of Code Section 409A and any IRS Guidance and to avoid the imposition of
the additional tax, interest or income inclusion under Code Section 409A on any payment to be made hereunder. Notwithstanding the foregoing, in no event whatsoever shall the Corporation be liable for any additional tax, interest, income
inclusion or other penalty that may be imposed on a Participant by Code Section 409A or for damages for failing to comply with Code Section 409A. For purposes of Code Section 409A, each payment of an Incentive Award under this Plan
shall be treated as a separate payment, and any right to a series of payments in respect of any Incentive Awards under this Plan shall be treated as a right to receive a series of separate payments. It is further expressly intended that any right to
any Incentive Award shall be subject to a substantial risk of forfeiture, as described in Treas. Reg. §§ 1.409A-1(d) and 1.409A-3(i)(5)(iv)(A). 

(e)    This Plan shall be governed by and construed in accordance with the laws of the State of New York and the
applicable provisions of the Code and the Regulations. 
  

	13.	EFFECTIVE DATE 

 This Plan, as amended, shall be effective as of January 1, 2018 and
shall remain in effect until terminated in accordance with Section 11 hereof. 

  
 9EX-10.2

 Exhibit 10.2 

[Officer Specimen] 

DIAMOND OFFSHORE DRILLING, INC. 

CASH INCENTIVE AWARD AGREEMENT 
 This CASH
INCENTIVE AWARD AGREEMENT (this “Agreement”) is made and entered into as of the grant date set forth below (the “Grant Date”) and evidences the grant of the Awards set forth below by Diamond Offshore Drilling, Inc., a Delaware
corporation (the “Company”), to the individual named below (the “Grantee”). Capitalized terms not defined herein shall have the meanings ascribed to them in The Diamond Offshore Drilling, Inc. Incentive Compensation Plan (the
“Plan”). 
  

			
	 Name of Grantee:
	  	[            ]
		
	 Grant Date:
	  	[            ]
		
	 Amount Subject to Time-Vesting:
	  	$[        ]
		
	 Target Amount Subject to Performance Vesting:
	  	$[        ]
		
	 Performance Period for Performance Vesting:
	  	Calendar years [calendar year including Grant Date and two following calendar years]
		
	 Vesting Dates for Time-Vesting Award:
	  	[2 years after Grant Date] as to [50% of award]
		  	[3 years after Grant Date] as to [50% of award]
		
	 Vesting of Performance Award:
	  	See Section 2 below

 1.     Grant of Awards. The Company hereby grants to the Grantee the performance cash incentive
award (the “Performance Award”) and the time-vesting cash incentive award (the “Time-Vesting Award” and, together with the Performance Award, the “Awards”) as set forth herein, subject to the terms and conditions of
this Agreement and the Plan. 
 2.    Vesting and Payment. 

(a)    Vesting of Performance Award. The attached Schedule A specifies the financial performance Goals
(“Performance Goals”) required to be attained during the performance period designated above (the “Performance Period”) in order for the Performance Award to become eligible to vest, provided that, in determining the amount of
the Performance Award eligible to vest, the Committee shall at all times during or after the Performance Period have the right in its sole discretion to reduce or eliminate the amount of the Performance Award that would otherwise be eligible to vest
as a result of the performance as measured against the Performance 

 
Goal (“Negative Discretion”). Any amount of the Performance Award that vests in accordance with this Agreement shall thereafter be payable in accordance with Section 2(b). Any
amount of the Performance Award that does not become eligible to vest pursuant to this Agreement or that otherwise does not vest pursuant to this Agreement shall be immediately forfeited. 

(b)    Timing and Manner of Payment after Vesting of Performance Award. 

(i)    No later than two and one-half
(2 1⁄2) months following the end of the Performance Period, the Committee shall determine the actual level of attainment of the Performance Goal for the
Performance Period. On the basis of the Committee’s determination, the Committee will determine the amount of the Performance Award eligible to vest as calculated in accordance with the percentile matrix set forth in Schedule A, subject to the
Committee’s Negative Discretion. The amount of the Performance Award determined by the Committee to be eligible to vest through such process shall constitute the amount of the Performance Award in which the Grantee shall vest under this
Agreement. 
 (ii)    The “Vesting Date” for the Performance Award shall be the date that the Committee
determines the vesting of the Performance Award in accordance with this Section 2(b). 
 (iii)    No later than two
and one-half (2 1⁄2) months following the end of the Performance Period, the Company shall pay the Grantee an
amount in cash equal to the amount of the Performance Award that vests on the Vesting Date, less applicable withholding, unless such Performance Award is terminated or is forfeited prior to the Vesting Date pursuant to this Agreement or the Plan.
Neither the Grantee nor any of the Grantee’s successors, heirs, assigns or personal representatives shall have any further rights or interests with respect to any amount of the Performance Award that is paid or that terminates pursuant to this
Agreement or the Plan. Notwithstanding anything herein to the contrary, the Company shall have no obligation to pay the Performance Award unless such payment shall comply with all relevant provisions of law and the requirements of any applicable
stock exchange. 
 (c)    Vesting of Time-Vesting Award. Any portion of the Time-Vesting Award that becomes
vested in accordance with this Agreement shall thereafter be payable in accordance with Section 2(d). 

(d)    Timing and Manner of Payment after Vesting of Time-Vesting Award. 

(i)    The “Vesting Date” for the applicable portion of the Time-Vesting Award shall be the applicable date set
forth above. 
 (ii)    Within thirty (30) days following each such Vesting Date of the applicable portion of the
Time-Vesting Award pursuant to this Section 2(d), the Company shall pay the Grantee an amount in cash equal to the portion of the Time-Vesting Award that vests on the applicable Vesting Date, less applicable withholding, unless such portion of
the Time-Vesting Award is terminated or is forfeited prior to the applicable Vesting Date pursuant to this Agreement or the Plan. Neither the Grantee nor any of the Grantee’s successors, heirs, assigns

  
 2 

 
or personal representatives shall have any further rights or interests with respect to any Time-Vesting Award or portion thereof that is paid or that terminates pursuant to this Agreement or the
Plan. Notwithstanding anything herein to the contrary, the Company shall have no obligation to pay the Time-Vesting Award or any portion thereof unless such payment shall comply with all relevant provisions of law and the requirements of any
applicable stock exchange. 
 (e)    Except as otherwise provided in Section 3 of this Agreement, the vesting
schedules in this Agreement require continued employment or service with the Company or one of its Subsidiaries through the applicable Vesting Date as a condition to the vesting of the applicable amount of the applicable Award or portion thereof and
the rights and benefits under this Agreement. Except as otherwise provided in Section 3 of this Agreement, employment or service for only a portion of the vesting period, even if a substantial portion, will not entitle the Grantee to any
proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a termination of employment or services as provided in this Agreement or under the Plan. 

3.     Termination of Awards. Notwithstanding anything to the contrary in the Plan, the Awards are subject to termination as
follows: 
 (a)    Termination of Employment by the Company without Cause. Upon termination of the Grantee’s
employment by the Company or its Subsidiary without Cause on or after [2 years after Grant Date] but prior to the Vesting Date for the Performance Award, then the Performance Award shall remain outstanding and the amount of the Performance
Award to vest shall be determined in accordance with the process set forth in Section 2, provided that the resulting amount of the Performance Award that vests will be reduced by 50% (and the remainder of the Performance Award will be
forfeited). 
 (b)     Termination of Employment On Account of Retirement. Upon the Grantee’s retirement (as
defined below) prior to the Vesting Date for the Performance Award, then the Performance Award shall remain outstanding and the amount of the Performance Award to vest shall be determined in accordance with the process set forth in Section 2,
provided that the resulting amount of the Performance Award that vests will be reduced pro rata to correspond with the portion of the period commencing on the Grant Date and ending on [last day of Performance Period] that has elapsed as of
the effective date of the Grantee’s retirement (and the remainder of the Performance Award will be forfeited). 
 For purposes of this
Section 3(b), “retirement” means the termination of employment with the Company and each of its Subsidiaries or Affiliates by the Grantee on or after reaching age 63; provided that the Grantee’s employment is not terminated for
Cause and provided further that such termination will constitute a retirement for these purposes only if, at least one year prior to the Grantee’s desired retirement date, the Grantee delivers a written notice (by any means, including by email)
to the VP - Human Resources or other employee within the Human Resources Department of the Company that (x) indicates the Grantee intends to retire and (y) specifies an intended retirement date. 

  
 3 

 (c)    Other Termination. Except as otherwise set forth in
Section 3(a) or 3(b) above, if the Grantee’s employment with the Company and/or its Subsidiaries terminates prior to the applicable Vesting Date for any reason, the unvested amount or portion, as applicable, of the Awards shall be
forfeited as of the date of such termination of employment. 
 4.     Awards Subject to Plan. The Awards are granted under and
subject to and governed by the terms and conditions of this Agreement and the terms and conditions of the Plan, which are incorporated herein by reference. In the event of any conflict between this Agreement and the Plan, the Plan shall control
unless specifically stated otherwise in this Agreement. In the event of any ambiguity in this Agreement, any term that is not defined in this Agreement, or any matters as to which this Agreement is silent, the Plan shall govern. 

5.     Restrictive Covenants. 

(a)    Confidentiality. The Grantee agrees that, during the Performance Period and at all times thereafter, the
Grantee shall not reveal or utilize Confidential Information (as hereinafter defined) that the Grantee acquired during the course of or as a result of the Grantee’s employment with the Company or one of its Subsidiaries and that relates to
(x) the Company or any of its Subsidiaries or (y) Company’s and its Subsidiaries’ customers, employees, agents or vendors. The Grantee acknowledges that all such Confidential Information is commercially valuable and is the
property of the Company. Upon the termination of the Grantee’s employment with the Company and its Subsidiaries, the Grantee shall immediately return all such Confidential Information to the Company, whether it exists in written, electronic,
computerized or other form. Notwithstanding anything elsewhere to the contrary, the Grantee (a) may disclose Confidential Information (i) to the Company and its Subsidiaries and affiliates, or to any authorized agent or representative of
any of them, (ii) in confidence to any attorney or accountant actually retained by the Grantee for the purpose of securing professional advice (but not the Company’s privileged information), or (iii) when required to do so by law or
by a court, governmental agency, legislative body, arbitrator or other person with jurisdiction to order the Grantee to divulge, disclose or make accessible such information, and (b) may disclose or use Confidential Information (i) with
the Company’s prior written consent, (ii) in connection with performing the Grantee’s employment duties for the Company and its Subsidiaries or (iii) in connection with any legal proceeding involving the Company or its
Subsidiaries. In the event that the Grantee is required to disclose any Confidential Information pursuant to clause (a)(iii) or (b)(iii) of the immediately preceding sentence, the Grantee shall (A) promptly give the Company advance notice that
such disclosure may be made and (B) not oppose, and affirmatively cooperate with, the Company, at its reasonable request and sole expense, in seeking to protect the confidentiality of the Confidential Information. For purposes hereof,
“Confidential Information” shall mean information, knowledge or data (whether or not a trade secret or protected by laws pertaining to intellectual property and including, without limitation, information relating to data, finances,
marketing, pricing, profit margins, claims, legal matters, loss control, marketing and business plans and strategies, software, processing, vendors, administrators, customers or prospective customers, products, brokers and employees), other than
information, knowledge or data that (x) has previously been disclosed to the public, or is in the public domain, other than as a result of the Grantee’s breach of this Section 5(a) or other obligation of confidentiality, or
(y) is known or generally available to the public. 

  
 4 

 (b)    Solicitation of Employees. The Grantee covenants and agrees
that during the Grantee’s employment and for a period of two (2) years after the termination of the Grantee’s employment, whether such termination occurs at the insistence of the Company or the Grantee (for whatever reason), the
Grantee shall not, individually or jointly with others, directly or indirectly: 
 (i)    recruit, hire, encourage, or
attempt to recruit or hire, alone or by assisting others, any employees of the Company or former employees of the Company with whom the Grantee worked, had business contact, or about whom the Grantee gained
non-public or Confidential Information (hereinafter, “Company’s employees or former employees”); 

(ii)    contact or communicate with Company’s employees or former employees for the purpose of inducing, assisting,
encouraging and/or facilitating Company’s employees or former employees to terminate their employment with the Company or find employment or work with another person or entity; 

(iii)    provide or pass along to any person or entity the name, contact and/or background information about any of
Company’s employees or former employees or provide references or any other information about them; 

(iv)    provide or pass along to Company’s employees or former employees any information regarding potential jobs or
entities or persons to work for, including but not limited to, job openings, job postings, or the names or contact information of individuals or companies hiring people or accepting job applications; or 

(v)    offer employment or work to Company’s employees or former employees. 

For purposes of this covenant, “former employees” shall refer to employees who are not employed by the Company or any of its
Subsidiaries at the time of the attempted recruiting or hiring, but were employed by, or working for the Company or any of its Subsidiaries at any time in the six (6) months prior to the time of the attempted recruiting or hiring and/or
interference. 
 (c)    Competition. The Grantee covenants and agrees that during the Grantee’s employment
and for a period of one (1) year after the termination of the Grantee’s employment, whether such termination occurs at the insistence of the Company or the Grantee (for whatever reason), the Grantee shall not, individually or jointly with
others, directly or indirectly, perform services for, prepare or take steps to prepare to perform services for, or otherwise have any involvement with (other than in connection with performing services pursuant to Grantee’s employment), in each
case, whether as an officer, director, partner, consultant, security holder, owner, employee, independent contractor or otherwise, any entity that competes (whether directly or indirectly) with the Company or its Subsidiaries in the Business (as
hereinafter defined) anywhere in the world as of the date of the Grantee’s termination of employment with the Company and its Subsidiaries (any such entity, a “Competitor”); provided, however, that the Grantee may in any event own up
to a 2% passive ownership interest in any public entity or through a private, non-operating investment vehicle and may become employed by or otherwise 

  
 5 

 
affiliated with a Competitor if the Grantee works in a business unit thereof that does not compete with the Company or any Subsidiary in connection with the Business and the Grantee does not
communicate about the Business with any employee in a business unit of such Competitor that does so compete with the Company or any of its Subsidiaries. For purposes hereof, the term “Business” shall mean the offshore oil and gas drilling
business. Upon the written request of the Grantee, the Company’s President will reasonably determine whether a business or other entity constitutes a “Competitor” for purposes of this Section 5(c); provided that the President may
require the Grantee to provide such information as the Company reasonably determines to be necessary to make such determination; and provided, further that the current and continuing effectiveness of such determination may be conditioned upon the
accuracy of such information, and upon such other factors as the Company may reasonably determine. 

(d)    Equitable Relief. The Grantee agrees that any actual or threatened breach of covenants set forth in
this Section 5 could cause the Company irreparable harm. Therefore, in the event of any actual or threatened breach by the Grantee, the Company shall be entitled to seek and obtain, through any court with jurisdiction over the matter and the
Grantee, temporary, preliminary and/or permanent equitable/injunctive relief restraining the Grantee from violating such provisions and to seek, in addition, money damages, together with any and all other remedies available under applicable law.

 (e)    Forfeiture for Breach. Notwithstanding any other provision hereof, if the Grantee breaches or otherwise
fails to comply with any of the obligations contained in this Section 5, as applicable, in addition to all rights the Company and its Subsidiaries have under this Agreement and any other agreement, at law or in equity, any and all amounts and
portions, as applicable, of the Awards that have not become vested and been paid before such breach or failure to comply shall expire at that time, may not become vested or be paid after such time and will be forfeited at such time without any
payment therefor. 
 6.    Section 409A Compliance. It is the intention of the Company and the Grantee that all payments,
benefits and entitlements received by the Grantee under this Agreement be provided in a manner that does not impose any additional taxes, interest or penalties on the Grantee with respect to such payments, benefits and entitlements under
Section 409A of the Code, and its implementing regulations (“Section 409A”), and the provisions of this Agreement shall be construed and administered in accordance with such intent. Each of the Company and the Grantee has used,
and will continue to use, their best reasonable efforts to avoid the imposition of such additional taxes, interest or penalties, and the Company and the Grantee agree to work together in good faith to amend this Agreement, and to structure any
payment, benefit or other entitlement received by the Grantee hereunder, in a manner that avoids imposition of such additional taxes, interest or penalties while preserving the affected payment, benefit or entitlement to the maximum extent
practicable and maintaining the basic financial provisions of this Agreement without violating any applicable requirement of Section 409A. 

7.    Governing Law. This Agreement shall be governed by, interpreted under, and construed and enforced in accordance with the
internal laws, and not the laws pertaining to conflicts or choice of laws, of the State of New York applicable to agreements made and to be performed wholly within the State of New York. 

  
 6 

 8.    Imposition of Other Requirements. If the Grantee relocates to another country
after the Grant Date, even if at the Company’s request, the Company reserves the right to impose other requirements on the Grantee’s participation in the Plan, including with regard to the Awards or any portion thereof, to the extent the
Company determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Plan, and to require the Grantee to sign any additional agreements or undertakings that may be necessary to accomplish the
foregoing. 
 9.    Binding on Successors. The terms of this Agreement shall be binding upon the Grantee and upon the
Grantee’s heirs, executors, administrators, personal representatives, transferees, assignees and successors in interest, and upon the Company and its successors and assignees, subject to the terms of the Plan. 

10.    Transferability. The Awards shall not be treated as property or as a trust fund of any kind. The Awards are not transferable
except as permitted by the Plan. 
 11.    Entire Agreement. This Agreement and the Plan contain the entire agreement and
understanding between the parties as to the subject matter hereof. 
 12.    Notices. All notices and other communications under
this Agreement shall be in writing and shall be given by hand delivery to the other party or confirmed fax or overnight courier, or by postage paid first class mail, addressed as follows: 

If to the Grantee: 
 The address
of his or her principal residence as it appears in the Company’s records, with a copy to him or her at his or her office in Houston, Texas. 

If to the Company: 
 Diamond
Offshore Drilling, Inc. 
 15415 Katy Freeway, Suite 100 

Houston, Texas 77094-1800 

Attention: Corporate Secretary 

Facsimile: (281) 647-2223 

or to such other address as any party shall have furnished to the other in writing in accordance with this Section 12. Notice and communications shall be
effective when actually received by the addressee if given by hand delivery or confirmed fax, when deposited with a courier service if given by overnight courier, or two (2) business days following mailing if delivered by first class mail. 

13.    Amendment. This Agreement may not be modified, amended or waived except by an instrument in writing signed by the Company
and the Grantee. The waiver by either party of compliance with any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by the other party of a provision of
this Agreement. 

  
 7 

 14.    Authority of the Administrator. The Plan is administered by the Committee,
which shall have full authority to interpret and construe the terms of the Plan and this Agreement. The determination of the Committee administrator as to any such matter of interpretation or construction shall be final, binding and conclusive. 

15.    Data Privacy. The Grantee acknowledges and consents to the collection, use, processing and transfer of personal data as
described in this Section 15. The Company, its related entities, and the Grantee’s employer hold certain personal information about the Grantee, including, but not limited to, the Grantee’s name, home address and telephone number,
date of birth, social security number or other employee identification number, salary, nationality, job title, any shares of common stock held in the Company and details of the Awards and any other awards under the Plan, for the purpose of managing
and administering the Plan (“Data”). The Company and its related entities may transfer Data amongst themselves as necessary for the purpose of implementation, administration and management of the Grantee’s participation in the Plan,
and the Company and its related entities may each further transfer Data to any third parties assisting the Company or any such related entity in the implementation, administration and management of the Plan. The Grantee acknowledges that the
transferors and transferees of such Data may be located anywhere in the world and hereby authorizes each of them to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and
managing the Grantee’s participation in the Plan, including any transfer of such Data as may be required for the administration of the Plan. 

16.    Acceptance. Acceptance of this Agreement by the Grantee acknowledges receipt of a copy of the Plan and this Agreement, and
acknowledges that the Grantee has read and understands the terms and provisions hereof and accepts the Awards subject to all the terms and conditions of the Plan and this Agreement. The Company may, in its sole discretion, deliver any documents
related to the Awards by electronic means. The Grantee hereby consents to receive all applicable documentation by electronic delivery and to participate in the Plan through an on-line (and/or voice activated)
system established and maintained by the Company or a third party vendor designated by the Company. By Grantee’s signature and the signature of the Company’s representative below, or by Grantee’s acceptance of the Awards through the
Company’s online acceptance procedure, this Agreement shall be deemed to have been executed and delivered by the parties hereto as of the Grant Date. 

17.    No Rights to Continuation of Employment. Nothing in the Plan or this Agreement shall confer upon the Grantee any right to
continue in the employ of the Company or any Subsidiary thereof or shall interfere with or restrict the right of the Company to terminate the Grantee’s employment at any time for any reason. 

18.    Headings. Headings are used solely for the convenience of the parties and shall not be deemed to be a limitation upon or
descriptive of the contents of any Section. 
 [Signature Page Follows] 

  
 8 

 IN WITNESS WHEREOF, effective as of the Grant Date, the Company has caused this Agreement to be executed on its
behalf by a duly authorized officer. 
  

			
	DIAMOND OFFSHORE DRILLING, INC.
		
	By:	 	 

  

	
	ACCEPTED AND AGREED:
	
	   

	Grantee

  
 9 

 Schedule A 

Vesting of Performance Award 
 The
Performance Award pursuant to this Agreement shall become eligible to vest dependent upon level of achievement of the following Performance Goal for the Performance Period, subject to the Negative Discretion of the Committee: 

The average, for the three calendar years included in the Performance Period, of the quotient obtained (with respect to each such calendar year) from the
following formula shall equal [    ]% (“Target”); provided, that, during or after the Performance Period, the Committee shall have the authority to make equitable adjustments to the Target or the calculation of the
Target in recognition of unusual or non-recurring events affecting the Company or any subsidiary or affiliate or the financial statements of the Company or any subsidiary or affiliate, in response to changes
in applicable laws or regulations, or to account for items of gain, loss or expense determined to be extraordinary or unusual in nature or infrequent in occurrence or related to the disposal of a segment of a business or related to a change in
accounting principles or any other unusual transaction or event occurring after the Grant Date: 
  

	
	Adjusted EBITDA for such year
	Adjusted Net PP&E as of 31 December of such year

 Where: 

“Adjusted EBITDA” means, for any calendar year, for the Company and its subsidiaries, on a consolidated basis, an amount equal to
consolidated net income (excluding the cumulative effect of any change in accounting principle) determined in accordance with United States generally accepted accounting principles (“GAAP”) for such year plus or minus, as applicable, the
following to the extent deducted in calculating such consolidated net income: (a) plus an amount equal to interest expense in accordance with GAAP, for such year, (b) plus or minus the provision for tax expense or benefit accrued by the
Company and its consolidated subsidiaries for such year, (c) plus the amount of depreciation and amortization expense for such year, (d) minus, without duplication, interest income for such year, as determined in accordance with GAAP,
(e) plus or minus, without duplication, the amount of non-operating expenses or income for such year, all as determined in accordance with GAAP, and (f) excluding (i) the effects of any asset
impairments recorded during such year, (ii) any gain or loss on the sale of assets during such year, (iii) any rig margin – defined by the Company as rig revenue less controllable expenses – associated with an asset acquired
during the Performance Period; (iv) any expenses (other than capital expenditures) incurred in relation to reactivating any rigs that have been warm- or cold-stacked and (v) the negative financial impact on such year of any transaction
entered into by the Company with any customer that has the effect of reducing the amount of EBITDA during such year in exchange for a commensurate material benefit to be received by the Company, such as a “blend and extend” transaction;
and 

  
 10 

 “Adjusted Net PP&E” means, at any date of determination, for the Company and its
subsidiaries, on a consolidated basis, an amount equal to the net book value of all property, plant, and equipment (including, without limitation, land, mineral rights, buildings, structures, machinery, and equipment), determined in accordance with
GAAP, plus an amount equal to the net book value of all property, plant, and equipment (including, without limitation, land, mineral rights, buildings, structures, machinery, and equipment) classified on the Company’s balance sheet as held for
sale, as determined in accordance with GAAP, in each case excluding, over the elapsed portion of the Performance Period to date of such determination, (i) the effects of any impairment of assets and (ii) the net book value added to or
removed from net property, plant and equipment or assets held for sale as a result of any asset acquired or sold during such period. 
 Unless otherwise
determined by the Committee, the level of achievement against the Performance Goal shall govern the percentage of the Performance Award that is eligible to vest based on the schedule in the table below, subject to the Negative Discretion of the
Committee and based upon a target of 100% of Performance Goal achievement: 
  

					
	 Performance
Level
	 	 Performance as a

Percentage of Target
	 	 Percentage of Target

Amount of Performance

Award Eligible to Vest

	Below Threshold	 	Less than 50%	 	0%
	Threshold	 	50%	 	67%
	Target	 	100%	 	100%
	Maximum	 	150% or greater	 	133%

 Linear interpolation shall be applied to determine payments in the event of performance falling between the levels stated in
the above table. 

  
 11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00280-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00280-of-00352.parquet"}]]