Document:

10.1 Agreement between NCR and the Trustees of the NCR UK Pension Plan

	
	
	DATED              14th November 2013

	 

	 

	 

	 

	 

	NCR CORPORATION

	 

	and

	 

	DONALD MACQUEEN and Others

	 

	 

	 

	 

	 

	 

	 

	 

	AGREEMENT

	 

	 

DEED OF AGREEMENT
THIS AGREEMENT is dated                         14th November 2013      
BETWEEN:
		
	(1)
	NCR CORPORATION registered in the United States of America, in the State of Maryland, with number DO158790 (“NCR”); and

		
	(2)
	DONALD MACQUEEN, STEPHEN SWINBANK, TERESA MACLAGAN, RON GAMMIE, DENNIS PEARCE and BRANDON EVANS (as trustees of the NCR Pension Plan) (the “Trustees”); 

together the “Parties”. 
WHEREAS:
		
	1
	The NCR Pension Plan (the “Plan”) is a registered pension scheme governed by the Definitive Trust Deed and Rules Dated 27th January 1998 (as amended from time to time) (the “Trust Deed and Rules”).

		
	2
	The Trustees are the present trustees of the Plan.

		
	3
	NCR Limited (company number 45916) is the principal employer of the Plan.  NCR is the ultimate parent company of NCR Limited, and is the guarantor in relation to the Plan in accordance with a Guarantee dated 28th March 2008 (the “Guarantee”). 

		
	4
	The Trustees will purchase, as a Plan asset, an insurance policy with Pensions Insurance Corporation (the “Policy” and the “PIC” respectively).

		
	5
	In exchange for the Trustees purchasing the Policy and agreeing to facilitate the winding-up of the Plan as quickly and efficiently as possible, NCR has agreed to make a cash contribution into the Plan on the terms set out in this Agreement.

IT IS HEREBY AGREED as follows:
1    Definitions
In this Agreement: 
		
	1.1
	“Accrued Benefits” means all the benefits accrued to or in respect of Plan Members under the Trust Deed and Rules.  Accrued Benefits shall be determined following data verification under the Policy.   

		
	1.2
	“Additional Discretionary Benefits” means such benefits as the Trustees may determine to secure with PIC for or in respect of Plan Members in addition to any Accrued Benefits which may be payable to or in respect of Plan Members. 

1.3    Business Day: a day (other than a Saturday, Sunday or public holiday) when banks in London are open for 
business.
1.4    “Expense Reserve” means funds held by the Trustee to meet any Plan expenses, which may remain in the 
Plan and may be the subject of a further transfer to PIC in accordance with clause 7.1.  
1.5    “Lump Sum Contribution” means the lump sum contribution to be paid by NCR under clause 8. 
1.6    “Policy” means a buy-in policy with PIC, to be purchased on or about 15 November 2015. 
1.7    “Revised Schedule of Contributions” means the revised schedule of contributions to be put in place under 
clause 8.1. 

1.8    “Section 75 Calculation” means the calculation by the Plan Actuary of the assets and liabilities of the Plan in 
accordance with Section 75 of the Pensions Act 1995 (as amended from time to time).   
1.9    “Section 75 Certificate” means the certificate issued by the Plan Actuary following the Section 75 Calculation. 
1.10    “Surplus Funds” means any funds held by PIC following completion of data verification, available to provide 
Additional Discretionary Benefits for or in respect of Members.  For the avoidance of doubt, Surplus Funds 
shall not include any amounts to be paid to PIC to meet any additional payments to PIC required under the 
Policy, whether required as a result of legislative change, contractual provision, data cleanse, or otherwise.  
2    Wind up
2.1    The Parties agree that: 
2.1.1    NCR shall give notice, in accordance with Rule 8.3.1 of the Definitive Deed and Rules, that the effective 
date for the commencement of winding up the Plan under Rule 8.3.1(a) shall be no later than 30 June 
2015. 
2.1.2    The timing for the giving of the relevant notice under Rule 8.3.1 shall be determined by NCR in 
consultation with the Trustees.  Notice under Rule 8.3.1 shall not be given until after the Trustees have 
purchased the Policy.
2,2    NCR and the Trustees shall work together to target completion of the buy-out by no later than January 2016.
2.3    For the avoidance of doubt, NCR and the Trustees agree that any reference in this Agreement to any clause 
or rule in the Trust Deed and Rules shall be deemed to include the relevant clause or rule contained in any 
replacement governing documentation of the Plan from time to time.
3    Section 75 of the Pensions Act 1995 
3.1    The Trustees undertake to procure that within 5 Business Days following the effective date of the 
commencement of the winding up of the Plan in accordance with Rule 8.3.1 of the Trust Deed and Rules the 
Plan Actuary will: carry out a Section 75 Calculation by reference to the assets and liabilities secured under 
the Policy (being the Accrued Benefits and the Surplus Funds, but not taking account of Additional Discretionary 
Benefits) and will issue a Section 75 Certificate.  The Trustees currently believe this will result in the Plan 
actuary issuing a Section 75 Certificate showing any debt due from NCR Limited to the Plan as nil.  
3.2    Following receipt of the Section 75 Certificate, the Trustees will immediately confirm in writing to NCR Limited 
(with a copy to NCR) the debt due from NCR Limited to the Plan and if this is nil, will confirm that NCR Limited 
is discharged from its obligations under the Plan.
3.3    On receipt of a Section 75 Certificate in accordance with Clause 3.2 showing a nil amount due from NCR 
Limited, the Trustees release and discharge NCR from all past, present and future liability to the Trustees 
under the Guarantee and also from all actions, claims and demands under or in connection with the Guarantee.
3.4    Before any allocation of the Surplus Funds to provide Additional Discretionary Benefits in accordance with 
Clause 5 below, Clauses 3.1 and 3.2 shall have been fully complied with.
4    Securing accrued benefits
Subject to clause 5.1 below, once data verification under the Policy is completed, the Trustees will ensure that all Accrued Benefits are to be secured with PIC (whether at the same time as any Additional Discretionary Benefits in accordance with Clause 5.2 or otherwise).  Benefits are to be secured via the Trustees instructing PIC to issue individual annuity policies to or in respect of Plan members. 

5    Discretionary benefits on wind up
5.1    The steps set out in this Clause 5.1 are to be completed before any allocation of Surplus Funds in accordance 
with the remainder of this Clause 5.  

Before any allocation or distribution of Surplus Funds to provide Additional Discretionary Benefits to or in respect of Plan members, the Trustees agree that they will: 
5.1.1    provide to NCR confirmation in accordance with Clause 3.2 above; 
5.1.2    secure (or ensure that sufficient funds are available to secure all) Accrued Benefits to or in respect of 
Plan members in accordance with Clause 4;  
5.1.3    meet any additional payments to PIC required under the Policy, whether required as a result of 
legislative change, contractual provision, data cleanse, or otherwise; and including, but not limited to 
the following payment obligations under the Policy: the payment of the “Deferred Premium” under 
clauses 4.1.3/4.3; adjustments under Clause 4.2; adjustments under Clause 5.7; payments from the 
Trustees under Clause 12.1; and
5.1.4    meet the expenses of the Plan, including any expenses anticipated in relation to the winding up of the 
Plan. 
5.2    Subject to Clause 5.1, the Trustees: 
5.2.1    will ensure that the Policy includes a pricing mechanism whereby the Trustees may secure Additional 
Discretionary Benefits with PIC following data verification, once the amount of any Surplus Funds is 
known; 
5.2.2    may use the Surplus Funds to provide Additional Discretionary Benefits for or in respect of Plan 
members, once all Accrued Benefits have been secured in full.  The amount of any Additional 
Discretionary Benefits shall be determined by the Trustees after taking actuarial advice, and shall be 
calculated once all adjustments to Accrued Benefits under the Policy are known (whether as a result 
of legislative change, data cleanse, or otherwise).  
6    Trustees warranty
The Trustees warrant to NCR that they have complied with their obligations under Clause 12 of the Policy and that they know of no reason why PIC may have grounds to terminate the Policy under Clause 11.1.
7    Wind up expenses/ risks covered
7.1    The Trustees shall meet all Plan expenses and the cost of any indemnity insurance from the assets of the 
Plan (including the PPF levy and expenses relating to wind up).  The Trustees may reserve £8 million (eight 
million pounds sterling) or such higher amount as they consider appropriate to meet Plan expenses (the 
“Expense Reserve”).  If, prior to buy-out, any funds remain in the Expense Reserve which exceed any amounts 
required to meet Plan expenses, the Trustees may use any such residual funds in the Expense Reserve to 
pay a further transfer to PIC.  PIC shall hold such funds as part of the Surplus Funds until such time as any 
Additional Discretionary Benefits may be distributed under Clause 5.2.  
7.2    NCR does not require the Trustees to pay the additional £4.8 million premium required by PIC in order for PIC 
to assume liability for certain data risk.
7.3    During wind up, the Trustees will purchase from the assets of the Plan : 
7.3.1    run-off cover; and 

7.3.2    additional insurance to address the risk of (a) steps being taken to re-address GMP equalisation post 
buy-out, and (b) missing beneficiaries coming to light, post buy-out.
8    Contributions to the Plan
8.1    By no later than 15 November 2013, the Trustees (with the agreement of NCR Limited to the extent required 
by legislation) shall put in place a signed revised Schedule of Contributions, to show nil employer contributions.   
The form of the Revised Schedule of Contributions to be substantially in the form attached in the Appendix.  
8.2    Conditional upon: 
8.2.1    receipt of a copy of the Revised Schedule of Contributions being provided to NCR on or before 15 
November 2013;  
8.2.2    the Trustees having taken out the Policy: and
8.2.3    PIC having confirmed that: the Risk Transfer Date” (as defined under the Policy) having passed; and 
it has received the “Transfer Instructions” (as defined under the Policy) and it is on risk under the Policy; 
NCR will, within 5 Business Days of these conditions having been satisfied make a lump sum contribution of £15 million (fifteen million pounds sterling) to the bank account of the Trustees.  Subject to clause 7.3, such contribution will be paid by the Trustees to PIC and placed with the Surplus Funds.  
8.3    The Parties agree that if the Policy is not secured by the Trustees by 00.01 GMT on 23 November, the Revised 
Schedule of Contributions shall fall away and the current Schedule of Contributions shall be reinstated.  
However, the Parties shall then discuss in good faith a new schedule of contributions.  
8.4    The Trustees may apply the Lump Sum Contribution to provide Additional Discretionary Benefits in accordance 
with clause 5 above.  For the avoidance of doubt, the Lump Sum Contribution includes an allowance in respect 
of Plan wind-up expenses which are to be met from the Plan.
9    Press release/ media interest
9.1    The Trustees and NCR will agree in writing any press release the Trustees or NCR may be asked to approve 
in relation to the buy-in (whether by PIC, Tower Watson or otherwise).  NCR will require a minimum of at least 
3 Business Days to review and agree any such wording. 
9.2    Subject to clause 9.6, NCR and the Trustees will agree the content, distribution and timing for any Trustee or 
NCR media/press releases in relation to both the buy-in and the buy-out.  
9.3    NCR and the Trustees will agree the terms of a joint press release in the UK in relation to the buy-in.
9.4    The Trustees and NCR agree to provide each other with copies of any of their advisers' press releases for 
NCR or the Trustees approval (as the case may be) prior to issue, and the Trustees and NCR shall inform 
their advisers of this. 
9.5    Press releases for the purposes of this Clause 9 do not include any communications that NCR or the Trustees 
are required to make to comply with applicable legislation or regulatory requirements. 
9.6    The Trustees and NCR agree that they will not withhold consent under this Clause 9 if that consent relates to 
the release of any information in a press release issued by NCR or the Trustees if that information was previously 
contained in a communication issued by NCR or the Trustees in accordance with any applicable legislative or 
regulatory requirements. NCR 

and the Trustees confirm that the Trustees’ and or NCR’s consent will still be required in respect to any other 
information contained in such a release.
10    Working together
10.1    The Trustees will provide NCR with such information in relation to the buy-in and subsequent buy-out Policy 
as NCR may require to address accounting, disclosure, tax or other regulatory issues in advance of 15 
November and subsequent to 15 November 2013.  
10.2    The Trustees will use their reasonable endeavours to procure that the report by Oliver Wyman to the Trustees 
in relation to the financial covenant of PIC is also addressed to NCR Corporation and that Oliver Wyman have 
the same obligations towards NCR under that report as they do to the Trustees.  Such report, subject to Oliver 
Wyman’s agreement, shall be provided to John Boudreau of NCR at least 2 Business Days before the Trustees 
sign the Policy.
10.3    The Trustees and NCR will work together in a collaborative and open manner to achieve the buy-out and wind 
up as quickly and efficiently as possible, and will agree a project plan and action list to achieve this to an 
agreed timescale.
10.4    With a view to understanding the costs of expediting the buy-out process, NCR will investigate with PIC (with 
Trustee approval and with Towers Watson involved in each call/meeting) the cost of expediting the buy-out 
process with PIC.
11    Governing Law and Jurisdiction
11.1    This Agreement shall be governed by and construed in accordance with English law
11.2    The courts of England shall have exclusive jurisdiction to settle any dispute arising out of or in connection with 
this Agreement.
12    COUNTERPARTS
This Agreement may be executed in any number of counterparts, each of which when executed and 
delivered shall constitute a duplicate original, but all the counterparts shall together constitute the one deed.

	
	
	/s/ John Boudreau

	John Boudreau, Treasurer

	For and on behalf of NCR Corporation

	
	
	/s/ Stephen Swinbank

	Stephen Swinbank

	For and on behalf of the Trustees of the NCR Pension Plan

	
	
	/s/ Dennis Pearce

	Dennis Pearce

	For and on behalf of the Trustees of the NCR Pension Plan

Appendix 
Draft form of Revised Schedule of Contributions under Clause 8.1 

NCR Pension Plan
Schedule of Contributions
Name of Principal Employer: NCR Limited
Period covered by schedule: Five years from the date this schedule was certified by the Scheme Actuary.
This schedule of contributions has been prepared by the Trustees after obtaining the advice of Ashu Bhargava, the Scheme Actuary to the NCR Pension Plan (the “Plan”).
Deficit contributions:    
£9.76 million per annum, payable in equal monthly instalments of £813,333, commencing from the date this schedule was certified and payable over the period to 15 November 2013.  
Following this date (15 November 2013), no further deficit contributions will be payable to the Plan by the Principal Employer.
Additional contributions:
In addition, the Principal Employer may make any special contributions to the Plan as may be agreed in specific circumstances under the Trust Deed and Rules.
The Principal Employer shall pay any such other amounts as are agreed from time to time between the Trustees and the Principal Employer.
Expenses:
A reserve has been held in the Plan in respect of ongoing administrative expenses, including the Pension Protection Fund (PPF) levy.  It is therefore anticipated that ongoing expenses will be met from the Plan.    
Due dates of payment:
All contributions must be paid monthly by the 19th day of the month following that to which the payment relates.  The exact day of payment is a matter of agreement between the Trustees and the Principal Employer.

	
			
	Agreed on behalf of the Trustees of the NCR Pension Plan
	 
	Agreed on behalf of NCR Limited

	Name  TERESA MACLAGAN ..................
	 
	Name  HELEN WILDE ............................

	Signed  /s/ Teresa Maclagan...................
	 
	Signed  /s/ Helen Wilde...........................

	Date  13 - 11 - 13 ....................................
	 
	Date  13 - 11 - 13 ....................................

Actuary’s certification of the schedule of contributions
Name of plan: NCR Pension Plan
Adequacy of rates of contributions
		
	1
	I hereby certify that, in my opinion, the rates of the contributions shown in this schedule of contributions are such that the statutory funding objective can be expected to continue to be met throughout the period specified.

		
	2
	I also certify that the rates of contributions shown in this schedule are not lower than I would have provided for had I had responsibility for preparing or revising the schedule, the Statement of Funding Principles and any recovery plan.

Adherence to statement of funding principles
I hereby certify that, in my opinion, this schedule of contributions is consistent with the Statement of Funding Principles dated 2 July 2013, with the exception that no discretionary increases have been allowed for.

	
			
	Signature  /s/ ASHU BHARGAVA .........................
	 
	Date 15th November 2013 ........................

	Ashu Bhargava
	 
	 

	Fellow of the Institute and Faculty of
	 
	 

	Actuaries
	 
	 

	Towers Watson LimitedExhibit 10.1

RESTATED AND SUPERSEDING EMPLOYMENT AGREEMENT
This Restated and Superseding Employment Agreement (this “Agreement”), dated as of 13 November 2013 (the “Effective Date”), is by and between Daniel W. Rabun (the “Executive”) and Ensco plc, a public limited company organized under the laws of England and Wales (the “Company”).
WHEREAS, the Company, through its Board of Directors (the “Board”), and the Executive have agreed on the manner of the transition of the Executive’s duties as President and Chief Executive Officer (the “CEO”) of the Company to a successor to be identified at a later date (the “Successor CEO”); and
WHEREAS, the Board desires to retain the Executive’s services as Chairman of the Board for a time following the relinquishment of his duties as CEO, and the Executive is agreeable to serve in that capacity on the terms and conditions stated herein;
NOW, THEREFORE, in consideration of their respective promises and covenants herein contained, and intending to be legally bound hereby, the Company, through its lawful and authorized representatives, and the Executive (the “Parties”) hereby agree as follows:
1. Continued Service as CEO. The Executive agrees to continue to serve, and the Company agrees to continue to employ the Executive, as CEO until the date the Successor CEO appointed by the Board commences employment with the Company as CEO (the “Successor Appointment”).  During the Executive’s continued employment as CEO, (i) the Employment Offer Letter Agreement for the Executive, dated 13 January 2006 and accepted on 6 February 2006, as amended on 22 December 2009 (the “Letter Agreement”) shall continue in effect in all respects, and (ii) all other compensation and benefits the Executive receives prior to the Effective Date shall continue to be provided to the Executive.  In the event of any conflict between any provision of this Agreement and any provision of the Letter Agreement, the provision or provisions of this Agreement shall control.
2. Relinquishment of CEO Duties; Termination of Prior Agreement. The Executive, pursuant to this Agreement and without further action on his part, will relinquish his duties as CEO as of 12:01 am local time in London, England on the date of the Successor Appointment.  If, at that time, the Executive is serving as the Chairman of the Board, pursuant to this Agreement and without further action on the part of the Parties, (i) the Executive will retain his role as Chairman of the Board and (ii) the terms and conditions of this Agreement shall supersede those of the Letter Agreement and the Letter Agreement shall be null and void.
3. Term of Employment as Chairman of the Board. The Company agrees to employ the Executive, and the Executive accepts such employment on the terms and conditions herein set forth, as Chairman of the Board through at least the Annual General Meeting of the Company (the “AGM”) in 2014.
4. Duties following the Successor Appointment. The Executive’s duties while serving as Chairman of the Board following the Successor Appointment shall consist of chairing the Board and providing general oversight, on behalf of the Board, of the Company’s strategy as carried out by executive management.  These duties shall be consistent with the Parties’ intention that he will devote his efforts to supporting the Successor CEO with regard to the execution of his or her responsibilities and assisting in the transition of responsibilities to the Successor CEO.  The Parties expect that the level of bona fide services performed by Executive in his role as Chairman of the Board following the Successor Appointment shall equal or exceed 35% of the average level of services performed by the Executive for the Company during the immediately preceding 36-month period.  The Executive may perform such duties from any location that is convenient to him so long as performance from such location does not materially adversely affect such performance.  The Parties agree that following the Successor Appointment the Executive, except for the foregoing commitments to the Company, shall have the flexibility and freedom to pursue and engage in other business opportunities and activities outside the Company, provided that those activities are consistent with the provisions of the Corporate Governance Policy of the Company pertaining to conflicts of interest and outside directorships.  During the Executive’s employment with the Company (including his service on the Board), and for twelve (12) months thereafter, the Executive shall not, directly or indirectly solicit, aid, counsel, recruit, recommend, refer or encourage any officer, director, or executive or senior managerial employee of the Company or any of its affiliated companies (the “Ensco Group”), with whom the Executive had dealings (other than in a minimal way) during the twelve (12) months prior to the termination of the 

Executive’s employment (including his service on the Board) for any reason, to (i) leave his or her employment or position with the Ensco Group, (ii) compete with the business of the Ensco Group, and/or (iii) violate the terms of any employment, non-competition or similar agreement such employee has with the Ensco Group.
5. Continuation of Employment. The Executive shall continue as an employee and officer of the Company until at least the later of (i) the date of the Successor Appointment and (ii) the date of the AGM in 2014 (such later date being the “Transition Date”), without any interruption in service as a result of his relinquishing his CEO responsibilities, and shall be so treated for all purposes, including with respect to participation in compensation and benefit plans of the Company.  On the Transition Date, in accordance with the Company’s Corporate Governance Policy, the Executive will submit a pro-forma letter of resignation to the Board.  
6. Compensation and Benefits. During his service as the Chairman of the Board following the Successor Appointment until the date of the AGM in 2014, the Executive shall receive the following compensation and benefits:
(a) The Company shall pay the Executive a base salary, annualized, of US$525,000.00 (“Base Salary”), payable in periodic amounts in accordance with its customary payroll practices for executive officers.
(b) The Executive shall be eligible to participate in the Ensco 2005 Cash Incentive Plan (“ECIP”), and any successor plan, on the same basis as other executive officers, with a target bonus percentage, expressed as a percentage of his Base Salary, of 115 percent.  
(c) The Executive shall be eligible to participate in the Ensco 2012 Long-Term Incentive Plan (“LTIP”), and any successor plan, on the same basis as other executive officers, with a target award of US$2,500,000.00 annually. 
(d) Except as provided herein, the Executive shall continue to be eligible for, and to receive, all compensation and benefits available to executive officers, including but not limited to all contributions under the 2005 Supplemental Executive Retirement Plan (“SERP”), the Ensco Savings Plan (including but not limited to the profit sharing provisions thereof), and medical, life and disability insurance and other benefits and insurance coverage, on the same basis as other executive officers.
(e) For the avoidance of doubt, the Company confirms that the Executive has fully nonforfeitable interests in his accrued benefits earned under the SERP and the Ensco Savings Plan, including in all cases any Company contributions, deferrals or accruals thereunder made after the date of the Successor Appointment.
(f) The Executive’s accrued but unused vacation, as of the date of the Successor Appointment, shall be paid to him in a lump sum within thirty (30) days following such date. The Executive will not accrue or earn paid vacation as Chairman of the Board.
In the event that, after the Successor Appointment and in connection with the AGM in 2014, the Executive is nominated to serve on the Board, is elected by the shareholders, and is appointed as Chairman of the Board, the Executive shall continue to be eligible to receive the compensation and benefits set forth in this section 6 through the AGM in 2015.  Further, with respect to any ECIP award granted on or after January 1, 2014 for the calendar year in which the Executive’s employment terminates (the “Termination Year”), irrespective of whether such award was made before or after the Successor Appointment, such award shall be paid to the Executive at the time specified in the ECIP, and the amount of the ECIP award that will be paid to the Executive for the Termination Year shall be calculated by multiplying (x) the amount of the ECIP award that would have been payable to the Executive under the ECIP if the Executive had been employed through the date of payment of such award based on the actual level of achievement of the performance metrics applicable for the Termination Year, by (y) a fraction, the numerator of which shall be the days during the Termination Year that the Executive was employed by the Company and the denominator of which shall be 365.
7.  Transition Date.  Subject only to section 11 of this Agreement:
(a) the Executive’s unvested restricted stock units, restricted stock awards and unvested stock options existing as of the Effective Date will continue to vest pursuant to their terms until the Transition Date, and, provided that the Executive continuously provides services to the Company from the Effective Date until the Transition 

Date, any unvested restricted stock units, unvested restricted stock awards and unvested stock options existing as of the Transition Date (other than any awards granted on or after January 1, 2014) shall immediately vest in full, without any proration, on the Transition Date, whereupon the Executive shall have a fully vested, non-forfeitable right to such stock and to exercise such stock options pursuant to their terms on and after that date; provided, however, that any restricted stock units that vest upon the Transition Date shall not be paid or settled until the original vesting date specified in the award agreement under which they were granted; and
(b) the Executive’s unvested performance unit awards existing as of the Effective Date will continue to vest and be earned in accordance with their terms during his service as Chairman of the Board until the Transition Date, subject to the achievement of the performance metrics applicable for such awards. Provided that the Executive continuously provides services to the Company from the Effective Date until the Transition Date, all of his unvested performance unit awards existing as of the Transition Date (other than any awards granted on or after January 1, 2014) shall immediately vest in full, without any proration, on the Transition Date, subject to the achievement of the performance metrics applicable for such awards.  Payments under such performance unit awards shall be made in the amounts and at the times specified in the applicable performance unit agreements. 
8. Administrative Support and Expenses. The Company shall provide the Executive with suitable office space at any of its current office locations and such administrative support as the Executive reasonably requires in connection with the performance of his duties under this Agreement.  Further, the Company shall promptly reimburse the Executive for expenses (including those related to travel and entertainment) reasonably incurred in connection with such duties, in accordance with the Company’s travel and entertainment policies.
9. Indemnification. The Deed of Indemnity signed by the Executive on 22 December 2009 shall continue in effect in all respects during the Executive’s continued employment as CEO and as Chairman of the Board and for such periods of time following the termination of his employment as Chairman of the Board as are established in section 15 of such Deed of Indemnity.  Further, the Executive will be entitled to the benefit of any insurance policies the Company maintains for the benefit of its officers and directors against all liabilities, claims, costs, charges and expenses incurred in connection with any action, suit or proceeding to which he may be made, or threatened to be made, a party, witness or other participant by reason of being a director, officer or employee of the Company.  Additionally, if the Company fails to administer any provision of this Agreement consistent with its terms and intent, the Company shall indemnify the Executive fully for any costs or other liability to the Executive, other than legal fees, resulting from such error.
10. Retirement. Upon the Executive’s termination of employment with the Company after the date of the Successor Appointment, for any reason set forth in section 11(a), then the Executive, without further action on his part, shall be deemed and treated as though the Executive (i) has reached the Normal Retirement Age (as defined in the LTIP) as of the date of such termination of employment and (ii) has incurred a separation of service due to Retirement (as defined in the LTIP).
11. Termination of Employment.
(a)   In the event that the Executive’s employment with the Company is terminated (1) by reason of the Executive' death or Disability (as defined below), (2) by the Executive for Good Reason (as defined below), (3) by the Company without Cause (as defined below), or (4) following the Executive tendering a letter of resignation to the Board and the Board accepting such resignation, in each case on or following the date of the Successor Appointment, the Executive shall be entitled to the following:
(i) any unvested restricted stock units, unvested restricted stock awards and unvested stock options existing as of the date of such termination of employment and granted prior to January 1, 2014, will immediately vest in full on the date of the termination of employment, whereupon the Executive (or the Executive’s estate, as applicable) shall have a fully vested, non-forfeitable right to such stock and to exercise such stock options pursuant to their terms on and after that date; provided, however, that any restricted stock units that vest upon the termination of employment shall not be paid or settled until the original vesting date specified in the award agreement under which they were granted; 

(ii) all of the Executive’s unvested performance unit awards existing as of the date of such termination of employment and granted prior to January 1, 2014 shall vest in full, without any proration, as of such date, subject to the achievement of the performance metrics applicable for such awards; provided, however, that payments under such performance unit awards shall be made in the amounts and at the times specified in the applicable performance unit agreements;
(iii) (x)any unpaid Base Salary through the date of termination, (y) unreimbursed business expenses that are eligible for reimbursement in accordance with the applicable Company policies through the date of termination, and (z) to the extent not otherwise paid or provided, such employee benefits or other amounts, if any, earned, vested, or to which the Executive may otherwise be entitled to receive under any plan, program, policy, practice, arrangement, contract or agreement of the Company pursuant to the terms governing such benefits or amounts ((x), (y), and (z) together, the “Accrued Obligations”), which shall be paid no later than sixty (60) days following the date of the Executive’s termination of employment; and
(iv) for purposes of clarity, any unvested restricted stock units, unvested restricted stock awards, unvested stock options, and unvested performance unit awards existing as of the date of such termination of employment and granted on or after January 1, 2014 shall not vest on the Executive’s termination of employment and shall be governed solely by the terms of the plan and award agreement pursuant to which they were granted.
“Cause” shall mean (i) the willful and continued failure of the Executive to perform substantially the Executive’s duties and obligations (other than any such failure resulting from bodily injury or disease or any other incapacity due to mental or physical illness), (ii) gross misconduct by the Executive, (iii) the willful and material breach by the Executive of any Ensco Group policies or the Company’s Code of Conduct, or (iv) the conviction of the Executive by a court of competent jurisdiction, from which conviction no further appeal can be taken, of a felony-grade crime involving moral turpitude; provided, however, that in any of the aforementioned cases the cessation of employment of the Executive shall not be deemed to be for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the Board specifying that the Executive is being terminated for Cause.      
“Disability” shall mean that, in the opinion of a physician selected by the Company or its insurers and acceptable to the Executive or the Executive’s legal representative, the Executive is unable to engage in any substantial gainful activity that is comparable to the Executive’s position immediately prior to such incapacity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months.  
“Good Reason” shall mean a material breach of this Agreement by the Company.  In the case of the Executive’s allegation of Good Reason, (i) the Executive shall provide notice to the Board of the event alleged to constitute Good Reason within ten (10) days of the occurrence of such event, and (ii) the Company shall have the opportunity to remedy the alleged Good Reason event within ten (10) days from receipt of notice of such allegation.  If the Company does not cure the circumstance giving rise to Good Reason, the Executive must terminate his employment with the Company within ten (10) days following the end of the ten (10) day cure period described in clause (ii) above in order for his termination to be considered a termination for Good Reason.  
(b)   In the event that the Executive’s employment with the Company is terminated for any reason other than a reason set forth in section 11(a), on or following the date of the Successor Appointment, then the Company shall have no further obligations to the Executive under this section 11 other than for the payment of the Accrued Obligations, which shall be paid no later than sixty (60) days following the date of the Executive’s termination of employment.
12. Tax Equalization.  Because the Executive is a United States citizen who has been and will be performing services in the United Kingdom, the Executive may be subject to personal income taxation in both the United States and the United Kingdom.  In order to protect the Executive from double taxation, the Executive shall be entitled to a tax 

equalization payment compensating the Executive for any excess of foreign taxes over the amount of U.S. federal and state taxes the Executive would have paid if he had remained an employee in the United States such that the after tax amount actually retained by the Executive is equal to the after tax amount the Executive would have retained if he had been an employee in the United States (“Tax Equalization Payment”).  The Company shall pay for the cost associated with the preparation of the Executive’s tax returns and the resolution of any tax issues that may result from payment received as a result of the Executive’s employment with the Company in the United Kingdom in the same manner and to the same extent that the Company provides this benefit to other executives of the Company.  It is the Executive’s responsibility to file returns and provide any required documentation on a timely basis to comply with U.S. expatriate tax laws as well as the tax laws of the United Kingdom.  Notwithstanding anything herein to the contrary, the Tax Equalization Payment provided in this section 12 will only apply with respect to payments and other compensation the Executive has received and will receive from the Company and will apply as to (i) any tax periods in which the Executive has received or will receive any such payments or other compensation from the Company and (ii) any tax periods in which the Executive is subject to taxation in the United Kingdom in respect of his employment with the Company.  For the avoidance of doubt, the Executive will be entitled to the Tax Equalization Payment under this section 12 without regard to the reason his employment terminates.   
13. Repatriation.  Provided that the Executive continues to provide services to the Company from the Effective Date through January 1, 2014, then no later than 30 days following January 1, 2014, the Company shall pay the Executive an amount equal to the sum of (x) one-twelfth (1/12) of the Executive’s base salary as CEO, plus (y) $10,000, as well as any other repatriation benefits generally provided by the Company.  The payments enumerated in this section 13 are intended to help facilitate the Executive’s relocation back to the United States.  For the avoidance of doubt, the Executive will be entitled to the repatriation benefits under this section 13 without regard to the reason his employment terminates.   
14. Health Benefits.  
(a) Upon the termination of the Executive’s employment with the Company for any reason set forth in section 11(a) and to the extent permitted under the applicable plan, each of the Executive and the Executive’s spouse shall be eligible to continue to participate in the Company’s group health plan (i.e., with respect to medical, dental and vision coverage) until such time as the Executive or the Executive’s spouse, as applicable, becomes eligible for and covered by Medicare (the “Retiree Health Benefits”).  The Company shall provide the Retiree Health Benefits to the Executive and the Executive’s spouse regardless of whether at any such time the Company makes retiree medical, dental and/or vision coverage available to employees generally, and the Retiree Health Benefits shall be at least as favorable as the group medical, dental and vision coverage offered by the Company to employees of the Company who then serve in a senior executive capacity.  Retiree Health Benefits shall be suspended during any period the Executive is eligible for and covered by other group medical coverage provided by another employer.  The Executive, or if applicable, the Executive’s surviving spouse, shall be responsible for the payment of the applicable premiums for the cost of all coverage described in this section 14 at a rate not to exceed the cost to active employees of the Company who serve in an executive capacity of the most comprehensive group health coverage offered by the Company.  Notwithstanding the foregoing, the Executive shall pay the full cost (i.e., the full COBRA premium rate or such other amount reasonably determined by the Company) of the benefits as determined under the then current practices of the Company on a monthly basis and the Company shall reimburse the Executive the excess of such costs, if any, above the then active employee cost for such benefits.
(b) In the event one or more of the health, dental, or vision plans of the Company do not permit continued coverage of the Executive or his spouse during the period the Retiree Health Benefits are to be provided under this section 14, the Executive or his surviving spouse, as applicable, shall obtain the Retiree Health Benefits that cannot be provided under Company plans by purchasing coverage on the open market that is comparable to the coverage of the group medical, dental or vision coverage, as applicable, offered by the Company to employees of the Company who serve in a senior executive capacity at that time and the Company will promptly reimburse the Executive or his spouse for the portion of the cost of such coverage in excess of the cost to active employees of the Company who serve in an executive capacity of the most comprehensive group health coverage offered by the Company at that time.

(c) Any reimbursements by the Company to the Executive required under this section 14 shall be made on a regular, periodic basis within thirty (30) days after such reimbursable amounts are incurred by the Executive.  Any reimbursements provided during one taxable year of the Executive shall not affect the expenses eligible for reimbursement in any other taxable year of the Executive (with the exception of applicable lifetime maximums applicable to medical expenses or medical benefits described in Section 105(b) of the Internal Revenue Code of 1986, as amended (the “Code”)) and the right to reimbursement under this section 14 shall not be subject to liquidation or exchange for another benefit or payment.  For clarity, all premium payments made by the Executive will be made on an after-tax basis and the Executive will not receive a tax gross up or other payment from the Company to offset any taxes owed by the Executive with respect to either the active employee portion of the applicable premium or the Company’s reimbursement of amounts in excess of the active employee portion.
15. Section 409A Compliance. It is intended that this Agreement shall comply with Section 409A of the Code.  The provisions of this Agreement shall be interpreted and administered by the Company in a manner that complies with Section 409A of the Code. For purposes of Section 409A of the Code, each payment or amount due under this Agreement shall be considered as separate payment, and the Executive’s entitlement to a series of payment sunder this Agreement is to be treated as an entitlement to a series of separate payments.  Notwithstanding any provision in this Agreement to the contrary, if any payment provided for in this Agreement would be subject to additional taxes and interest under Section 409A of the Code if the Executive’s receipt of such payment is not delayed as provided in Section 409A(a)(2)(B) of the Code and the Treasury Regulations issued thereunder, then such payment shall not be made to the Executive until the earlier of (a) the date of the Executive’s death or (b) the date that is six months after the date of the Executive’s “Separation from Service” (as defined in Treasury Regulation 1.409A-1(h)) with the Company. Any such delayed payments shall be paid in a lump sum without interest.  All references in this Agreement to a “termination of employment” are intended to have the same meaning as a Separation from Service.  The amount of expenses eligible for reimbursement, or in-kind benefits provided under this Agreement, during the Executive’s taxable year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.  All reimbursements of eligible expenses shall be made promptly and in accordance with the Company’s reimbursement policies, but in no even later than the last day of the Executive’s taxable year following the taxable year in which the expense was incurred.  The right to reimbursement or in-kind benefits under this Agreement is not subject to liquidation or exchange for another benefit.

16. Successors. The Company will require that any successor agree to adopt and comply in all respects with the terms and provisions of this Agreement.

17. Amendments and Waiver. No amendment, modification or waiver of any provision of this Agreement shall be effective unless reduced to writing and signed by both Parties.

18. Entire Agreement. This Agreement sets forth the entire agreement and understanding of the Parties with respect to its subject matter and supersedes all prior agreements and understandings, whether they be written or oral, except as otherwise expressly stated herein. The Executive’s participation, compensation and benefits under the Company’s benefit plans and compensation arrangements shall remain subject to the terms of such plans and compensation arrangements, except to the extent otherwise provided in this Agreement, and as they may be modified from time to time by the Company; provided that no modification to any such plan or arrangement shall adversely impact the Executive unless the modification is generally applicable to executive officers of the Company, and in no event shall any such modification adversely affect any right or benefit of the Executive provided for in this Agreement.

19. Notice. Notices and all other communications provided for in this Agreement shall be in writing and deemed to have been duly given when delivered or mailed by United States certified mail or registered mail, return receipt requested, postage prepaid, addressed as follows to the respective party:

Daniel W. Rabun
5600 Cross Timbers Road
Flower Mound, Texas 75022

Ensco plc
6 Chesterfield Gardens, 3rd Floor
London, England W1J 5BQ
Attention: General Counsel

or to such other address as either Party may have furnished the other in writing in accordance with this provision, except that notices of change of address shall be effective only upon receipt.
20. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas without regard to conflicts of law principles.
21. Taxes. The Company is authorized to withhold from any payments made hereunder amounts of withholding and other taxes due or potentially payable in connection therewith, and to take such other action as the Company may deem advisable to enable the Company and the Executive to satisfy obligations for the payment of withholding taxes and other tax obligations relating to any payments made under this Agreement.
22. Effectiveness. This Agreement shall become effective as of the Effective Date. The Board shall provide to the Executive a certified copy of the written resolution of approval of this Agreement as soon as practicable.
IN WITNESS WHEREOF, the Parties have executed this Agreement effective for all purposes as of the Effective Date.
Company

/s/ PAUL E. ROWSEY III
                
Name: Paul E. Rowsey III
Title: Lead Director

/s/ BRADY K. LONG
                
Name: Brady K. Long
Title: Vice President, General Counsel & Secretary

Executive

/s/ DANIEL W. RABUN
                
Daniel W. Rabun

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