Document:

exv10w24

 

Exhibit 10.24

December 13, 2005

Steven Mayer

Dear Steve:

Confirming the Agreement reached with the Board of Directors regarding your separation from
employment with Human Genome Sciences, Inc. (“HGS” or “Company”) and your pursuit of a new
professional opportunity with CoGenesys, HGS offers you the following terms contingent upon your
agreement with the terms set forth below:

	1)	 	You have elected to resign from your position as Chief Financial Officer effective
December 12, 2005, but you will remain employed by HGS through December 31, 2005. You will
be paid your salary through December 31, 2005. Effective January 1, 2006, you
will begin to serve as a consultant to HGS. During this period, you will make yourself
reasonably available to provide advice on real estate transactions, financial transactions,
and assistance related to transition of CFO duties, it being understood and agreed that (i)
such services shall be provided at times and places reasonably agreeable to the parties,
taking into account your business and personal schedule and (ii) it is anticipated that you
will dedicate approximately 20% of your time each month to consulting on behalf of HGS.

	2)	 	In exchange for your agreement to provide consulting services pursuant to Section 1
hereof, HGS agrees to pay you commencing January 1, 2005 bi-weekly through June 30, 2006 a
sum equivalent to two weeks of your current annual base salary. No withholdings or
deductions will be taken or made from any monies paid to you for consulting services and HGS
will issue a Form 1099 at the end of 2006 reflecting all payments made to you pursuant
hereto. In addition, you will be eligible to receive a bonus award for 2005 calculated to
be 40% of your estimated 2005 earnings. This bonus will amount to $137,523.00 and will be
paid on or before December 31, 2005. In addition:

	 	a)	 	Following your termination date, at your election, you will be permitted
to continue to participate in the HGS medical, dental, and vision care plans under
COBRA. Your rights under COBRA begin as of January 1, 2006 and will be communicated
separately through our third party administrator, Conexis. The Company will
reimburse you for the cost of COBRA continuation coverage through June 30,

 

 

	 	 	 	2006. HGS will reimburse you either monthly or in total at the end of the 6 month
COBRA period for which reimbursement will be made.
	 
	 	b)	 	Your participation in the 401(k) Plan, including the HGS match and the
life and ADD insurance plans terminate effective December 31, 2005. Any vested
rights that you currently have in the 401(k) Plan shall not be affected by this
Agreement.
	 
	 	c)	 	Your vacation leave accrual ceases effective December 31, 2005. Payment
for all accrued, unused vacation leave will be made in the next payroll run.
	 
	 	d)	 	You will be credited, as of December 31, 2005 with 6 months of additional
vesting service under all outstanding equity awards made to you under the Company’s
Stock Incentive Plans so that such equity awards will have a vested status as of
December 31, 2005 as that which they would otherwise have had on June 30, 2006,
under each applicable vesting schedule had your employment with the Company
continued uninterrupted through June 30, 2006.
	 
	 	e)	 	Your right to exercise all outstanding stock options, to the extent vested
(including the acceleration of vesting described in the preceding paragraph), will
be extended to the earlier of the original ten-year-term expiration date of the
applicable option agreement or December 31, 2006. Any vested stock options that are
not exercised by 5:00 p.m. Eastern Time on the earlier of the original ten-year-term
expiration date of the applicable option agreement or December 31, 2006, shall
expire at that time and shall no longer be exercisable thereafter.
	 
	 	f)	 	You will be reimbursed for all ordinary and necessary reasonable business
related expenses incurred by you prior to December 31, 2005. You must submit your
request for reimbursement for these expenses, accompanied by proper documentation,
to me on or before January 10, 2006.
	 
	 	g)	 	You acknowledge and agree that the terms set forth above include
compensation and benefits to which you are not otherwise entitled. Furthermore, you
acknowledge that, except as expressly set forth herein, you are entitled to no other
or further compensation, remuneration or benefits from HGS.

	3)	 	In exchange and as consideration for the promises and undertakings set forth above, you
agree as follows:

	 	a)	 	You acknowledge that by reason of your position with the Company you have
been given access to trade secrets and confidential information. You agree that you
will comply with the terms of the Employee Confidential Information, Invention and
Non-Competition Agreement you have signed with the Company, the terms of which are
incorporated herein, and agree to return to the Company and, except as set forth on
Exhibit A, shall not take, copy or disclose in any form or manner, any tangible work
product belonging to HGS.

 

 

	 	 	 	Except as set forth on Exhibit A, you also agree that you will not remove any
tangible property of HGS from the Company’s premises. Not later than December 31,
2005 and except as set forth on Exhibit A, you will return to HGS all Company
property in your possession or control. You agree not to delete any information,
files or any other materials from HGS’ computer systems or any computer owned by
HGS other than in the ordinary course. You further understand pursuant to
your Employee Confidential Information, Invention and Non-Competition Agreement with
the Company that you have assigned and are obligated to assign any inventions made by
you at the Company and are further obligated to execute patent documents related to
such inventions and hereby agree to execute all such documents.
	 
	 	b)	 	You recognize the need for HGS to maintain continued harmonious
relationships with its workforce, the public, the scientific community, the
regulatory authorities, and the business community. Therefore, you agree that you
will not make any public statement or any private statement to any HGS employee,
customer, potential customer, investor, potential investor, business analyst or any
other person or entity doing business or likely to do business with HGS, disparaging
HGS or criticizing its operations, personnel, or employment practices. HGS agrees
that neither it nor any member of its Board of Directors or any officer will make
any public statement or private statement to any business analyst, or person or
entity actually or potentionally doing business or likely to do business with you or
any entity with which you are associated (whether as a customer, investor, employee
or consultant) disparaging you. Both parties agree that neither he, it or they will
make or publish any communication that reflects adversely upon the reputation of the
other party.
	 
	 	c)	 	You hereby forever release, waive, discharge and covenant not to sue HGS,
its directors, officers, agents and employees (in their individual and/or
representative capacities), affiliates, subsidiaries, successors and assigns
(collectively, the “Releasees”) relating to any claims, demands, charges, suits and
causes of action, whether known or unknown, up to the effective date of this
Agreement that are in any way whatever related to your employment by, or termination
of employment with, HGS and its affiliates, which you have or may have against any
of the Releasees to the greatest extent permitted by law; provided that this release
shall not apply to, and you shall not be considered to have released any, (i) claims
for accrued compensation and benefits; or (ii) claims arising
under this Agreement, THIS IS INTENDED TO BE A GENERAL RELEASE.
	 
	 	 	 	You expressly agree not to join in, encourage or voluntarily assist others in the
filing or pursuit of a lawsuit or claim against the Releasees that is related to your
employment by, or termination of employment with, HGS, provided that nothing in this
paragraph shall preclude you from complying with your legal obligations as described
in Paragraph 3(c) above. You agree not to provide any aid or assistance of any type,
other than testimony required by subpoena, to any person or entity

 

 

	 	 	 	who has filed or who seeks to file or prosecute any grievance, claim, complaint or
lawsuit against the Releasees. You further agree that in the event that you are
asked or required by subpoena to provide testimony to any person or entity who has
filed or who seeks to file or prosecute any grievance, claim, charge, complaint or
lawsuit against the Releasees, to provide written notice of such request or subpoena
to HGS’ General Counsel, James H. Davis, in writing, at 14200 Shady Grove Road,
Rockville, MD 20850, within five business days of the date you are aware that you
have received such request or subpoena. If any individual or entity brings a lawsuit
or other claim against any of the Releasees on behalf of you or a class of which you
are a part, involving any matter released hereby, you agree not to seek or accept any
damages or other personal relief in such proceeding.
	 
	 	 	 	You agree that, in the event the Releasees are or becomes a party or witness to any
actual or threatened legal proceeding regarding any matter which arose or occurred
during the term of your employment with HGS, you shall make yourself reasonably
available (taking into account your personal and business schedule) to and cooperate
with HGS and its counsel in such proceedings.
	 
	 	 	 	The foregoing release, waiver and covenant not to sue pertains to, but is not limited
to, claims arising under: federal, state and local statutes, ordinances and
regulations prohibiting employment discrimination (including, but not limited to,
claims arising under the Age Discrimination in Employment Act of 1967, as amended;
the Older Worker Benefit Protection Act (“OWBPA”); Title VII of the Civil Rights Act,
as amended; the Fair Labor Standards Act, and the Americans with Disabilities Act);
the Employee Retirement Income Security Act of 1974, as amended; and any and all
other federal, state and local statutes, cases, authorities or laws (including common
law) providing a cause of action that can be the subject of a release under
applicable law. Nothing in this release shall be construed to waive any claims that
cannot be waived as a matter of law.
	 
	 	d)	 	You agree that (i) your continued failure to materially abide by the
consulting provisions contained in paragraph 1 and (ii) your intentional or reckless
failure to comply with the nondisparagement provision of Paragraph 3(b) above, shall
release HGS from honoring any outstanding obligations owed to you under this
Agreement, among whatever other relief may be available under the terms of this
Agreement and at law or in equity.
	 
	 	e)	 	In executing this Agreement, you affirm that you are competent and
understand and accept the nature, terms, and scope of this Agreement as fully and
totally resolving any differences and disputes between you and HGS concerning the
circumstances of your employment and your termination from employment. You further
affirm that your decision to execute this Agreement is entirely voluntary, and that
you have done so without any pressure or undue influence by HGS or its
representatives or agents.

 

 

	4)	 	The parties mutually understand and agree that by executing this Agreement, the Releasees
are not admitting any violation of your rights under statutory or common law or any contract
or Agreement entered into with HGS.

	5)	 	If any provision of this Agreement is found to be invalid, unenforceable or void for any
reason, such provision shall be severed from the Agreement and shall not affect the validity
or enforceability of the remaining provisions. This Agreement shall be deemed to have been
made and entered into in Maryland and shall in all respects be interpreted, enforced and
governed by the laws of Maryland, without giving effect to the conflicts of laws provisions
thereof.

	6)	 	This Agreement shall be binding upon the parties hereto and their respective heirs,
personal representatives, successors, and assigns.

	7)	 	Any controversy or claim arising out of, or relating to, this Agreement shall first be
discussed informally between you and the Company in an attempt to resolve the matter. If
you and the Company are unable to resolve the matter, then any controversy or claim arising
out of, or relating to, this Agreement shall be submitted to mandatory private mediation and
then, if necessary, to final and binding private arbitration in accordance with the rules
and procedures of the American Arbitration Association National Rules for the Resolution of
Employment Disputes (“AAA Rules”). It is agreed that the procedures set forth in this
paragraph will be the exclusive, final, and binding means for the resolution of any disputes
arising out of or relating to this Agreement, except as provided below in Paragraph 8. It
is further agreed that any proceedings initiated pursuant to this provision will be brought
in Washington, D.C. The parties shall share the costs of the mediation/arbitration process,
with the Company paying three-quarters and you paying one-quarter. Each party shall be
responsible for paying their own attorneys’ fees incurred with regard to such
mediation/arbitration.

	8)	 	You acknowledge and agree that a breach by you of any of the provisions of Paragraph 3 of
this Agreement will cause immediate and irreparable injury to the Company, for which injury
there is no adequate remedy at law. Accordingly, Paragraph 7 of this Agreement
notwithstanding, you agree that in the event of such breach or threatened breach, the
Company will be entitled to an immediate injunction by a court of competent jurisdiction to
prevent and restrain such breach, with the losing party being required to pay the costs and
attorneys’ fees incurred by the other in bringing or defending, as applicable, any court
action or arbitration claim relating to such actual or threatened breach of said paragraphs.
You expressly agree to waive the requirement for HGS to post a bond in any such injunction
action and you expressly agree to submit to the jurisdiction of the courts of the State of
Maryland for any injunction proceeding brought pursuant to this provision.

	9)	 	You shall be indemnified for actions or inactions occurring during your employment with
HGS and its affiliates to the fullest extent permitted by Delaware law and HGS’s by-laws as
in effect on the date hereof.

 

 

	10)	 	You and HGS agree that this Agreement, consisting of seven (7) pages, supersedes any
previous agreements between the parties, provided that the Employee Confidential
Information, Invention and Non-Competition Agreement, and any and all other confidentiality,
intellectual property, and non-compete agreements signed by you and HGS shall survive this
Agreement and shall remain in full force and effect after your separation from HGS and are
incorporated herein. You agree that in executing this Agreement, you do not rely on any
statement or promise by HGS or any of its agents or employees, other than what is written in
this Agreement. This Agreement may be modified only by a written document signed by both
you and the CEO of HGS. You acknowledge that this Agreement is a full and
accurate embodiment of the understanding between the parties.

	11)	 	The parties, intending to be legally bound by this Agreement, each execute it without
coercion and with knowledge of the nature and consequences of its terms and conditions.

	12)	 	You acknowledge that you have been given the opportunity to consider this Agreement for up
to twenty-one (21) days. You also acknowledge that you have been advised in writing to
consult an attorney about this Agreement and that you have had a fair and full opportunity
to do so. Your signature on this Agreement prior to the expiration of this period evidences
your intent to knowingly and voluntarily waive this review period.

	13)	 	You may revoke this Agreement within seven (7) days, following its execution by notifying
the General Counsel of HGS, James H. Davis, in writing, at 14200 Shady Grove Road,
Rockville, MD 20850. If the Agreement is revoked, it is null and void. In any event, the
Agreement does not become effective until the seven (7) day revocation period expires.
After that time, if there has been no written revocation, this Agreement shall be fully
effective, enforceable and irrevocable.

	14)	 	You understand that your obligation to comply with the Employee Confidential Information,
Invention and Non-Competition Agreement that you signed upon commencing employment with HGS
will continue, regardless of whether or not you accept this Agreement.

 

 

If you agree with these terms, please sign this Agreement below and return it to me by January 3,
2006. Your signature will confirm that you are entering into this Agreement voluntarily and with a
full understanding of all of the above terms. No changes in this Agreement will be valid unless in
writing and signed by both parties.

Sincerely,

/s/ Susan Bateson McKay                    

Susan Bateson McKay

Senior Vice President, Human Resources

On Behalf of HGS and the Releasees

I HAVE READ THE FOREGOING OFFER AND I FULLY UNDERSTAND ITS TERMS. I AM SIGNING THIS AGREEMENT
FREELY AND VOLUNTARILY, HAVING BEEN GIVEN A FULL AND FAIR OPPORTUNITY TO CONSIDER IT AND CONSULT
WITH ADVISORS OF MY CHOICE.

	 	 	 
	READ AND AGREED TO:

	 	Subscribed and sworn to before me
	 

	 	this 13th day of December 2005.
	 
	 	 
	 

	 	/s/ Rose Hadidian
	 

	 	Rose Hadidian
	 

	 	Notary Public State of Maryland
	/s/ Steven C. Mayer                    

Steven Mayer
	 	 
	 
	 	 
	Date___December 13, 2005___
	 	 

 

 

EXHIBIT A

Notwithstanding anything to the contrary contained herein or in any other agreement between you and
HGS, including the Employee Confidential Information, Invention and Non-Competition Agreement
between the parties, the parties agree that you may retain the following items:

Laptop computer provided by HGS

Fax and copy machine(s) provided by HGS

Personal property in your office

Rolodex or other lists of contacts

Information regarding your compensation and benefits

Employment agreements, equity award agreements or copies of other agreements related to your employment by HGS or its affiliates

Documents or information described in CoGenesys documentation

In addition, you shall be given access to your HGS e-mail account until June 30, 2006 to provide
continuity for you and support of HGS through your consulting arrangement.exv10w23

 

EXHIBIT 10.23

NOBLE CORPORATION

PERFORMANCE-VESTED RESTRICTED STOCK AGREEMENT

     THIS AGREEMENT, made as of the            day of                      20     , by and between NOBLE CORPORATION, a
Cayman Islands exempted company limited by shares (the “Company”), and
                                                                                 (“Executive”);

W I T N E S S E T H:

     WHEREAS, the committee (the “Committee”) acting under the Company’s 1991 Stock Option and
Restricted Stock Plan, as amended (the “Plan”), has determined that it is desirable to award shares
of performance-vested restricted stock to Executive under the Plan; and

     WHEREAS, pursuant to the Plan, the Committee has determined that the shares of
performance-vested restricted stock so awarded shall be subject to the restrictions, terms and
conditions of this Agreement;

     NOW, THEREFORE, in consideration of the premises and mutual covenants and agreements herein
contained, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree
as follows:

     1. Performance-Vested Restricted Stock Award. On the terms and conditions and subject to the
restrictions, including forfeiture, hereinafter set forth, the Company hereby makes to Executive a
performance-vested restricted stock award (the “Award”) of an aggregate of                                          ordinary
shares (the “Restricted Shares”), par value U.S.$0.10 per share (“Ordinary Shares”), of the
Company. The Award is made effective as of the date hereof (the “Effective Date”). The Restricted
Shares shall be issued to Executive, subject to forfeiture as herein provided, without the payment
of any cash consideration by Executive. A certificate representing the Restricted Shares shall be
issued in the name of Executive as of the Effective Date and delivered to Executive on the
Effective Date or as soon thereafter as practicable. Executive shall cause the certificate
representing the Restricted Shares, upon receipt thereof by Executive, to be deposited, together
with stock powers and any other instrument of transfer reasonably requested by the Company duly
endorsed in blank, with the Company pursuant to an escrow agreement substantially in the form of
Exhibit A hereto (the “Escrow Agreement”). The Restricted Shares shall be delivered to the
Executive upon vesting or assigned and transferred to and reacquired and canceled by the Company
upon forfeiture, as hereinafter set forth, and in accordance with the terms and conditions of the
Escrow Agreement. Unless and until the Restricted Shares are delivered to Executive upon vesting,
the Restricted Shares shall not be sold, assigned, transferred, discounted, exchanged, pledged or
otherwise encumbered or disposed of by Executive in any manner.

     2. Vesting/Forfeiture.

     (a) Except as set forth in Section 3 of this Agreement, (i) the Award shall not be fully
vested immediately but shall be subject to forfeiture in accordance with the restricted period and
performance measurement determined by the Committee and set forth on
Schedule I hereto and (ii) the termination of the forfeiture provisions applicable to the Restricted Shares shall be
conditioned

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upon the continuous employment of Executive by the Company or an Affiliate from the
date of this Agreement to the applicable date of vesting.

     (b) Upon and to the extent of the achievement of the performance measurement hereunder with
respect to the Restricted Shares, as determined by the Committee, the shares with respect to which
such performance measurement has been achieved shall vest in Executive in accordance with Schedule
I hereto, and Executive shall be entitled to have delivered to him a new certificate, without the
legend referenced in Section 10 of this Agreement, for the number of such vested Ordinary Shares.

     (c) If the employment of Executive by the Company or an Affiliate terminates at any time prior
to determination of vesting/forfeiture except on account of (i) death, Disability or Retirement of
Executive or (ii) a Change in Control (as defined in Section 3(c)) of the Company, then, subject to
Section 3(b), the Restricted Shares shall be forfeited and automatically transferred to and
reacquired and canceled by the Company. Transfer of employment without interruption of service
between or among the Company and any of its subsidiaries shall not be considered a termination of
employment.

     3. Acceleration of Vesting and Termination of Forfeiture Provisions.

     (a) The vesting of this Award and the termination of the forfeiture provisions hereof are
subject to acceleration upon the occurrence of (i) the death, Disability or Retirement of Executive
or (ii) a Change in Control of the Company (whether with or without termination of employment of
Executive by the Company or an Affiliate). Upon the occurrence of any of the events specified in
(i) of this subsection (a),

	 	(A)	 	the Restricted Shares comprising the Award shall be prorated based on the
number of months of actual service by Executive during the three years in the period
ended December 31, 2008, and
	 
	 	(B)	 	the determination of vesting shall be made in accordance with Section 2(b) of
this Agreement.

Upon the occurrence of the event specified in (ii) of this subsection (a),

	 	(A)	 	a number of shares equal to 66.7 percent of the Restricted Shares (which
equates to the target for this Award) shall immediately become vested and no longer be
subject to any forfeiture provisions of this Agreement,
	 
	 	(B)	 	Executive shall be entitled to have delivered to him a new certificate, without
the legend referenced in Section 10 of this Agreement, for such number of vested
Ordinary Shares, and
	 
	 	(C)	 	the balance of 33.3 percent of the Restricted Shares shall be forfeited.

     (b) Notwithstanding anything contained herein to the contrary, the Committee shall have the
right to cancel all or any portion of any outstanding restrictions prior to the expiration of such

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restrictions with respect to any or all of the Restricted Shares on such terms and conditions
as the Committee may, in writing, deem appropriate.

     (c) For purposes of this Agreement, the following term shall have the indicated meaning:

     Change in Control: The term “Change in Control” means (i) a determination by the Committee
that any person or group (as defined in Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”)) has become the direct or indirect beneficial owner (as
defined in Rule 13d-3 under the Exchange Act) of more than 50 percent of the Voting Stock of the
Company; (ii) the Company is merged or amalgamated with or into or consolidated with another
corporation and, immediately after giving effect to the merger, amalgamation or consolidation, less
than 50 percent of the outstanding voting securities entitled to vote generally in the election of
directors or persons who serve similar functions of the surviving or resulting entity are then
beneficially owned (within the meaning of Rule 13d-3 under the Exchange Act) in the aggregate by
(x) the members of the Company immediately prior to such merger, amalgamation or consolidation, or
(y) if a record date has been set to determine the members of the Company entitled to vote on such
merger, amalgamation or consolidation, the members of the Company as of such record date; (iii) the
Company either individually or in conjunction with one or more subsidiaries of the Company, sells,
conveys, transfers or leases, or the subsidiaries of the Company sell, convey, transfer or lease,
all or substantially all of the property of the Company and the subsidiaries of the Company, taken
as a whole (either in one transaction or a series of related transactions), including Capital Stock
of the subsidiaries of the Company, to any Person (other than a Wholly Owned Subsidiary); (iv) the
liquidation or dissolution of the Company; or (v) the first day on which a majority of the
individuals who constitute the board of directors of the Company are not Continuing Directors. For
purposes of this definition, “Voting Stock” means, with respect to any Person, securities of any
class or classes of Capital Stock in such Person entitling the holders thereof (whether at all
times or at the times that such class of Capital Stock has voting power by reason of the happening
of any contingency) to vote in the election of members of the board of directors (or comparable
body) of such Person; “Person” means any individual, corporation, limited liability company,
partnership, joint venture, joint stock company, unincorporated organization or government or any
agency or political subdivision thereof; “Capital Stock” in any Person means any and all shares,
interests, participations or other equivalents in the equity interest (however designated) in such
Person and any rights (other than debt securities convertible into an equity interest), warrants or
options to acquire an equity interest in such Person; “Wholly Owned Subsidiary” means any
subsidiary of the Company of which 100 percent of the total Voting Stock (other than directors’
qualifying shares) is at the time owned by the Company, either directly or indirectly through
ownership of one or more subsidiaries of the Company; and “Continuing Director” means an individual
who (A) is a member of the board of directors of the Company and (B) either (I) was a member of the
board of directors of the Company on the Effective Date or (II) whose nomination for election or
election to the board of directors of the Company was approved by a vote of at least 66-2/3 percent
of the Continuing Directors who were members of the board of directors of the Company at the time
of such nomination or election.

     4. Escrow Agreement. In accordance with Section 20(b) of the Plan, the Committee has approved
the form of Escrow Agreement and prescribed its use hereunder in order to enforce the restrictions,
terms and conditions applicable to the Restricted Shares.

3

 

     5. Rights as Member. Upon the issuance of a certificate or certificates representing the
Restricted Shares to Executive, Executive shall become the owner thereof for all purposes and shall
have all rights as a member of the Company, including, without limitation, voting rights and the
right to receive dividends and distributions, with respect to the Restricted Shares, subject to the
forfeiture provisions hereof and the following provisions of this Section 5. If the Company shall
pay or declare a dividend or make a distribution of any kind, whether due to a reorganization,
recapitalization or otherwise, with respect to the Ordinary Shares constituting the Restricted
Shares, then the Company shall pay or make such dividend or other distribution with respect to the
Restricted Shares.

     6. Agreements Regarding Withholding Taxes.

     (a) Executive may elect, within 30 days of the Effective Date and on notice to the Company, to
realize income for United States federal income tax purposes equal to the fair market value of the
Restricted Shares on the date of award, which shall be the Effective Date. In such event,
Executive shall make arrangements satisfactory to the Committee to pay in the year of such award
any United States federal, state or local taxes required to be withheld with respect to such
shares. If Executive fails to make such payments, the Company and its subsidiaries shall, to the
extent permitted by law, have the right to deduct in the year of such award any United States
federal, state or local taxes of any kind required by law to be withheld with respect to such
Ordinary Shares.

     (b) (i) No later than the date of the lapse of the restrictions on any of the Restricted
Shares set forth herein, Executive will pay to the Company or its subsidiaries, or make
arrangements satisfactory to the Committee regarding payment of, any United States federal, state
or local taxes of any kind required by law to be withheld with respect to the Restricted Shares
with respect to which such restrictions have lapsed.

     (ii) Executive shall, to the extent permitted by law, have the right to deliver to the Company
or its subsidiaries Restricted Shares to which Executive shall be entitled upon the vesting thereof
(or other Ordinary Shares owned by Executive), valued at the fair market value of such shares at
the time of such delivery to the Company or its subsidiaries, to satisfy the obligation of
Executive under Section 6(b)(i) of this Agreement.

     (iii) If Executive does not otherwise satisfy the obligation of Executive under Section
6(b)(i) of this Agreement, then the Company and its subsidiaries shall, to the extent permitted by
law, have the right to deduct from any payments of any kind otherwise due to Executive any United
States federal, state or local taxes of any kind required by law to be withheld with respect to the
Restricted Shares with respect to which the restrictions on the Restricted Shares set forth herein
have lapsed.

     7. Non-Assignability. The Award is not assignable or transferable by Executive.

     8. Newly-Issued Ordinary Shares. The Ordinary Shares awarded to Executive as the Restricted
Shares shall be newly-issued Ordinary Shares of the Company.

     9. Capital Adjustments. If any of the following events shall occur at any time while the
Award is outstanding and any Restricted Shares have not either become vested or been forfeited, the

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following adjustments shall be made in the number of Ordinary Shares then constituting the
Restricted Shares under the Award, as appropriate:

     (a) Share Dividend or Split; Combination. If the Company pays a dividend on its outstanding
Ordinary Shares in Ordinary Shares or subdivides its outstanding Ordinary Shares into a greater
number of Ordinary Shares, the number of Ordinary Shares then subject to the Award shall be
proportionately increased. Conversely, if the outstanding Ordinary Shares are combined into a
smaller number of Ordinary Shares, the number of Ordinary Shares then subject to the Award shall be
proportionately reduced. An adjustment made pursuant to this Section 9(a) shall become effective
as of the record date in the case of a dividend and shall become effective immediately after the
effective date in the case of a subdivision or combination.

     (b) Recapitalization or Reorganization. In case of any recapitalization or reclassification
of the Ordinary Shares, or any merger, amalgamation or consolidation of the Company with or into
one or more other corporations, or any sale of all or substantially all the assets of the Company,
as a result of which the holders of the Ordinary Shares receive other stock, securities or property
in lieu of or in addition to, but on account of, their Ordinary Shares, the Company shall make or
cause to be made lawful and adequate provision whereby, upon the vesting of the Award after the
record date for the determination of the holders of Ordinary Shares entitled to receive such other
stock, securities or property, the Executive shall receive, in addition to the Ordinary Shares with
respect to which the Award has vested, the shares of stock, securities or other property which
would have been allocable to such Ordinary Shares had the Award vested immediately prior to such
record date. The subdivision or combination of Ordinary Shares at any time outstanding into a
greater or smaller number of Ordinary Shares shall not be deemed to be a recapitalization or
reclassification of the Ordinary Shares for the purposes of this Section 9(b).

     10. Legend. Each certificate representing Restricted Shares shall conspicuously set forth on
the face or back thereof, in addition to any legends required by applicable law or other agreement,
a legend in substantially the following form:

THE ORDINARY SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED PURSUANT TO THE
TERMS OF THE NOBLE CORPORATION 1991 STOCK OPTION AND RESTRICTED STOCK PLAN AND MAY
NOT BE SOLD, ASSIGNED, TRANSFERRED, DISCOUNTED, EXCHANGED, PLEDGED OR OTHERWISE
ENCUMBERED OR DISPOSED OF IN ANY MANNER EXCEPT AS SET FORTH IN THE TERMS OF THE
AGREEMENT EMBODYING THE AWARD OF SUCH SHARES DATED                     , 200     . A COPY OF
SUCH PLAN AND AGREEMENT IS ON FILE IN THE OFFICES OF THE CORPORATION.

     11. Defined Terms; Plan Provisions. Unless the context clearly indicates otherwise, the
capitalized terms used (and not otherwise defined) in this Agreement shall have the meanings
assigned to them under the provisions of the Plan. By execution of this Agreement, Executive
agrees that the Award and the Restricted Shares shall be governed by and subject to all applicable
provisions of the Plan. This Agreement is subject to the Plan, and the Plan shall govern where
there is any inconsistency between the Plan and this Agreement.

5

 

     12. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Texas, without regard to the principles of conflicts of
laws
thereof, except to the extent Texas law is preempted by Federal law of the United States or by
the laws of the Cayman Islands.

     13. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective heirs, personal representatives, successors and permitted
assigns.

     14. Entire Agreement; Amendment. This Agreement, together with any Schedules and Exhibits and
any other writings referred to herein or delivered pursuant hereto, constitutes the entire
agreement between the parties hereto with respect to the subject matter hereof and supersedes all
prior agreements and understandings, whether written or oral, between the parties with respect to
the subject matter hereof. To the fullest extent provided by applicable law, this Agreement may be
amended, modified and supplemented by mutual consent of the parties hereto at any time, with
respect to any of the terms contained herein, in such manner as may be agreed upon in writing by
such parties.

     15. Notices. All notices and other communications hereunder shall be in writing and shall be
deemed given if directed in the manner specified below, to the parties at the following addresses
and numbers:

     (a) If to the Company, when delivered by hand, confirmed fax or mail (registered or certified
mail with postage prepaid) to:

Noble Corporation

13135 S. Dairy Ashford, Suite 800

Sugar Land, Texas 77478

Attention: Chief Executive Officer

Fax: 281-491-2398

With a copy to:

Chairman of Compensation Committee

c/o Noble Corporation

13135 S. Dairy Ashford, Suite 800

Sugar Land, Texas 77478

Fax: 281-276-6316

6

 

     (b) If to Executive, when delivered by hand, confirmed fax or mail (registered or certified
mail with postage prepaid) to:

The address and number, if any, set forth opposite

Executive’s signature below

Either party may at any time give to the other notice in writing of any change of address of the
party giving such notice and from and after the giving of such notice the address or addresses
therein specified will be deemed to be the address of such party for the purposes of giving notice
hereunder.

     16. Severability. If any provision of this Agreement is held to be unenforceable, this
Agreement shall be considered divisible and such provision shall be deemed inoperative to the
extent it is deemed unenforceable, and in all other respects this Agreement shall remain in full
force and effect; provided, however, that if any such provision may be made enforceable by
limitation thereof, then such provision shall be deemed to be so limited and shall be enforceable
to the maximum extent permitted by applicable law.

     17. Counterparts. This Agreement may be executed by the parties hereto in any number of
counterparts, each of which shall be deemed an original, but all of which shall constitute one and
the same agreement. Each counterpart may consist of a number of copies hereof each signed by less
than all, but together signed by all, the parties hereto.

     18. Descriptive Headings. The descriptive headings herein are inserted for convenience of
reference only, do not constitute a part of this Agreement, and shall not affect in any manner the
meaning or interpretation of this Agreement.

     19. Gender. Pronouns in masculine, feminine and neuter genders shall be construed to include
any other gender, and words in the singular form shall be construed to include the plural and vice
versa, unless the context otherwise requires.

     20. References. The words “this Agreement,” “herein,” “hereof,” “hereby,” “hereunder” and
words of similar import refer to this Agreement as a whole and not to any particular subdivision
unless expressly so limited. Whenever the words “include,” “includes” and “including” are used in
this Agreement, such words shall be deemed to be followed by the words “without limitation.”

7

 

     IN WITNESS WHEREOF, the Company and Executive have executed this Agreement as of the date
first above written.

	 	 	 	 	 
	 	 	NOBLE CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Address and fax number, if any:
	 	 	 	 
	 	 	 
	 	 	Name of Executive:
	13135 S. Dairy Ashford, Suite 800
	 	 	 	 
	Sugar Land, Texas 77478
	 	 	 	 
	Fax: 281-276-6316
	 	 	 	 

8

 

SCHEDULE I

NOBLE CORPORATION

PERFORMANCE MEASURES FOR THE 2006-2008 PERFORMANCE CYCLE

AWARD OF PERFORMANCE-VESTED RESTRICTED STOCK

     The Committee has determined that the following restricted period and performance measures
shall be applicable to the Award of Restricted Shares represented hereby:

1. Restricted Period. The restricted period for the Restricted Shares shall extend from the
Effective Date of the Award through December 31, 2008, and thereafter until such time as vesting or
forfeiture of the Restricted Shares is confirmed, as determined by the Committee, based on
achievement of the performance measures specified in paragraph 2 below.

2. Performance Measures. This performance-vested restricted stock Award provides for performance
to be assessed over a three-year performance cycle based on corporate performance. The number of
the Restricted Shares awarded that will be earned/vested will vary based on performance, as shown
in the following table:

	 	 	 	 	 
	 	 	Percentage of Target
	Performance Level	 	Earned/Vested
	Maximum
	 	 	150	%
	Target
	 	 	100	%
	Threshold
	 	 	50	%
	Below Threshold
	 	 	0	%

     The number of Ordinary Shares set by the Committee as the target for this Award is                     
and therefore the maximum number of Ordinary Shares that can be earned/vested is                      (being
the total number of the Restricted Shares of this Award).

     The performance measures used to determine the extent of vesting of the Restricted Shares are
(i) the cumulative total member (shareholder) return (“TSR”) for the Ordinary Shares of the Company
relative to the Dow Jones U.S. Oil Equipment & Services Index (the “Index”) for the three-year
period beginning on the first NYSE trading day of 2006 and ending on the last NYSE trading day of
2008 (the “Performance Cycle”) (the “Competitor Index Measure”) and (ii) the TSR of the Ordinary
Shares of the Company relative to each of the companies (each, a “Competitor” and, collectively,
the “Competitor Group”) in a specific competitor group for the Performance Cycle (the “Specific
Competitor Measure”). The companies comprising the Competitor Group for the Performance Cycle are
set forth on Annex I to this Schedule I.

     For the purpose of determining the Competitor Index Measure, TSR for the Performance Cycle
shall be defined and calculated using the methodology for comparing the yearly percentage change in
a registrant’s cumulative total shareholder return on a class of common equity security registered
under section 12 of the U.S. Securities Exchange Act of 1934 in a line graph set forth in
such registrant’s proxy statement for its annual meeting of security holders pursuant to the rules
and

I-1

 

regulations of the U. S. Securities and Exchange Commission in effect on the Effective Date
(the “SEC Methodology”). The companies comprising the Index on the last trading day of the
Performance Cycle shall be the companies used in the comparison for determining the Competitor
Index Measure.

     For the purpose of determining the Specific Competitor Measure, TSR for the Performance Cycle
shall be defined and calculated using the SEC Methodology; provided, however, that the share price
at the beginning and at the end of the measurement period shall be the Current Market Price (as
defined below) of the applicable security. The “Current Market Price” of a security on any date
shall be deemed to be the greater of (a) the average of the daily closing prices of the security
for the 20 consecutive trading days immediately preceding the day in question and (b) the then per
share par value of the security. The companies comprising the Competitor Group on the last trading
day of the Performance Cycle shall be the companies used in the comparison for determining the
Specific Competitor Measure. If a Competitor’s common equity security is no longer publicly traded
on the last NYSE trading day of the Performance Cycle, then an appropriate proportionate adjustment
will be effected over the remaining number of Competitors in the Competitor Group in making the
determination of the Specific Competitor Measure; provided, however, that if the number of
companies comprising the Competitor Group on the last NYSE trading day of the Performance Cycle is
less than five Competitors, then, notwithstanding anything contained herein to the contrary, the
Specific Competitor Measure shall be inapplicable and not used in determining the overall
performance measure for vesting.

     Notwithstanding anything contained herein to the contrary, the Company must have positive TSR
for the Performance Cycle for any of the Restricted Shares to vest.

     The number of the Restricted Shares vesting, if at all, over the Performance Cycle shall be
determined in accordance with the vesting matrix set forth on Annex I to this Schedule I.

3. 
Administrative Matters. The Committee shall confirm the vesting or forfeiture of the Restricted
Shares as soon as reasonably practicable after the completion of the Performance Cycle and, in any
event, within two months after the calculation of the TSR for the Ordinary Shares and the Index.
Executive shall be given notice of the confirmation of vesting of all or part of the Restricted
Shares.

I-2

 

[Annex
I to Schedule I to this Form of Performance-Vested Restricted Stock Agreement, as determined
by the Compensation Committee of the Board of Directors of the
Company upon an award, is to be inserted
here.]

Annex I to Schedule I

 

 

EXHIBIT A

NOBLE CORPORATION

ESCROW AGREEMENT

FOR PERFORMANCE-VESTED RESTRICTED STOCK AWARD

     THIS ESCROW AGREEMENT, made as of the ___day of                      20___, by and among Noble
Corporation, a Cayman Islands exempted company limited by shares (the “Company”),
                                                             (“Executive”), and the Company, as escrow agent (the “Escrow Agent”),
pursuant to a Performance Restricted Stock Agreement dated of even date herewith (the “Restricted
Stock Agreement”) between the Company and Executive;

W I T N E S S E T H:

     WHEREAS, the Company and Executive desire the Escrow Agent to serve as Escrow Agent for the
Deposit Shares (as hereinafter defined) as contemplated by Section 1 of the Restricted Stock
Agreement, and the Escrow Agent is willing to serve as Escrow Agent pursuant to the provisions
hereof; and

     WHEREAS, the Restricted Stock Agreement requires that an Escrow Agreement in the form hereof
be entered into by the parties hereto;

     NOW, THEREFORE, in consideration of the premises and mutual covenants and agreements herein
contained, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree
as follows:

     1. Defined Terms. Each capitalized term used herein and not otherwise defined shall have the
meaning accorded thereto in the Restricted Stock Agreement.

     2. Deposit of Shares. In order to enforce the restrictions, terms and conditions, including
forfeiture, applicable to the Award of Restricted Shares to Executive pursuant to the Restricted
Stock Agreement, concurrent with the signing of the Restricted Stock Agreement, Executive has
deposited or caused to be deposited with the Escrow Agent the Restricted Shares, together with
stock powers duly endorsed in blank by Executive. The shares so deposited with the Escrow Agent
and such stock powers are referred to herein collectively as the “Deposit Shares.” The Deposit
Shares shall be registered in the name of Executive.

     3. Term. The Deposit Shares shall be held by the Escrow Agent in accordance with the terms of
this Agreement from the date of deposit until the Deposit Shares have been disposed of by Escrow
Agent in accordance with this Agreement.

A-1

 

     4. Disposition of the Deposit Shares.

     (a) Upon receipt by the Escrow Agent at any time of joint written instructions from the
Committee and Executive, the Escrow Agent will deliver the Deposit Shares in accordance with such
instructions.

     (b) Upon receipt by Escrow Agent of the Committee’s notice that (i) a number of the Restricted
Shares specified in such notice has become vested in Executive (the “Vested Shares”) and a number
of the Restricted Shares specified in such notice has been forfeited by Executive (the “Forfeited
Shares”), (ii) Executive is entitled to delivery of the Vested Shares pursuant to the Restricted
Stock Agreement and the Company is entitled to delivery of the Forfeited Shares pursuant to the
Restricted Stock Agreement and (iii) the certificate representing the Deposit Shares, together with
the stock powers duly endorsed in blank by Executive, should be delivered to the Company, Escrow
Agent shall promptly deliver the certificate representing the Deposit Shares and such stock powers
to the Company. The Company shall then cause a new certificate to be issued for any Vested Shares
to be delivered to Executive and any Forfeited Shares to be delivered to the Company for
cancellation.

     (c) The Escrow Agent shall not be required to inquire or make any investigation beyond the
bounds of this Escrow Agreement in delivering all or any of the Deposit Shares.

     5. Certain Agreements of the Company and Executive.

     (a) The Company agrees with Executive to give the Escrow Agent prompt notice in accordance
with Section 4(b) of this Escrow Agreement in the event of vesting of all or any of the Deposit
Shares pursuant to the Restricted Stock Agreement.

     (b) Executive acknowledges (i) that the disposition of the Deposit Shares pursuant to Section
4(b) of this Escrow Agreement may be made upon the unilateral action of the Committee, (ii) that
even in the event Executive disagrees with the Committee’s notice or makes objection to the Escrow
Agent with respect thereto, the Escrow Agent shall nevertheless be required to dispose of the
Deposit Shares in accordance with the Committee’s notice and (iii) that any claim or remedy with
respect to any dispute Executive has concerning the delivery of all or any of the Deposit Shares to
the Company pursuant to this Escrow Agreement or otherwise concerning the Restricted Stock
Agreement shall be raised only against the Company so long as the Escrow Agent acts in good faith.

     (c) The Company and Executive hereby jointly and severally agree to indemnify, defend and hold
harmless the Escrow Agent from and against any and all losses, damages, liabilities and expenses
that may be incurred by the Escrow Agent arising out of or in connection with its performance of
its duties as Escrow Agent hereunder in accordance with the terms hereof, including any legal costs
and expenses of defending itself against any claims or liabilities, including, without limitation,
its good faith disbursement of Deposit Shares pursuant to this Escrow Agreement.

A-2

 

     6. Escrow Agent.

     (a) The Escrow Agent shall not be required to use its own funds in the performance of any of
its duties, or in the exercise of any of its rights or powers, with respect to the Deposit Shares.

     (b) The Escrow Agent may confer with its counsel with respect to any question relating to its
duties or responsibilities hereunder and it shall not be liable for any act done or omitted by it
in good faith on advice of counsel. It shall be protected in acting upon any certificate,
statement, request, consent, agreement or other instrument whatsoever (not only as to its due
execution or the validity and effectiveness of its provisions, but also as to the truth and
acceptability of any information therein contained) which it shall in good faith believe to be
valid and to have been signed or presented by a proper person or persons. The Escrow Agent shall
not be bound by any notice of a claim, or demand with respect thereto, or any waiver, modification,
amendment, termination or rescission of this Escrow Agreement, unless in writing received by it,
and if the duties of the Escrow Agent herein are affected, unless it shall have given its prior
written consent thereto. The Escrow Agent shall not be liable or responsible for anything done or
omitted to be done by it in good faith, it being understood that its liability hereunder shall be
limited solely to gross negligence or willful misconduct on its part.

     7. Notices. All notices and other communications hereunder shall be in writing and shall be
deemed given if directed in the manner specified below, to the parties at the following addresses
and numbers:

     (a) If to the Company, when delivered by hand, confirmed fax or mail (registered or certified
mail with postage prepaid) to:

Noble Corporation

13135 S. Dairy Ashford, Suite 800

Sugar Land, Texas 77478

Attention: Chief Executive Officer

Fax: 281-491-2398

With a copy to:

Chairman of Compensation Committee

c/o Noble Corporation

13135 S. Dairy Ashford, Suite 800

Sugar Land, Texas 77478

Fax: 281-276-6316

     (b) If to Executive, when delivered by hand, confirmed fax or mail (registered or certified
mail with postage prepaid) to:

The address and number, if any, set forth opposite

Executive’s signature on the Restricted Stock Agreement

A-3

 

     (c) If to the Escrow Agent, when delivered by hand, confirmed fax or mail (registered or
certified mail with postage prepaid) to:

Noble Corporation

13135 S. Dairy Ashford, Suite 800

Sugar Land, Texas 77478

Attention: Escrow — Restricted Stock Award

Fax: 281-276-6316

Any party may at any time give to the others notice in writing of any change of address of the
party giving such notice and from and after the giving of such notice the address or addresses
therein specified will be deemed to be the address of such party for the purposes of giving notice
hereunder.

     8. Assignment; Binding Effect. This Escrow Agreement is not assignable by the Escrow Agent
and shall be binding upon and inure to the benefit of the parties hereto, and their respective
heirs, personal representatives, successors and permitted assigns.

     9. Governing Law. This Escrow Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Texas, without regard to the principles of conflicts of
laws thereof, except to the extent Texas law is preempted by Federal law of the United States or by
the laws of the Cayman Islands.

     10. Termination. This Escrow Agreement shall be terminated only upon the delivery of all the
Deposit Shares either to Executive as Vested Shares or to the Company as Forfeited Shares, as the
case may be, in accordance with the provisions hereof.

A-4

 

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

	 	 	 	 	 
	 	 	NOBLE CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	Name of Executive:
	 
	 	 	 	 
	 	 	NOBLE CORPORATION,

as Escrow Agent
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

A-5

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