Document:

EX-10.39

 Exhibit 10.39 
 NOBLE CORPORATION 
 PERFORMANCE-VESTED RESTRICTED STOCK UNIT AGREEMENT

 THIS AGREEMENT, made as of the 1st day of February, 2013, by and between NOBLE CORPORATION, a Swiss corporation (the
“Company”), and                     (“Employee”); 
 W I T N E S S E T H: 
 WHEREAS, the committee (the “Committee”)
acting under the Noble Corporation 1991 Stock Option and Restricted Stock Plan, as amended (the “Plan”), has determined that it is desirable to award performance-vested Restricted Stock Units (as defined in the Plan) to Employee pursuant
to the Plan; and 
 WHEREAS, pursuant to the Plan, the Committee has determined that the performance-vested Restricted Stock
Units 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 Unit Award. On the terms and conditions and subject to the restrictions, including
forfeiture, hereinafter set forth, the Company hereby awards                     Restricted Stock Units (the “Awarded Restricted Stock
Units”) to Employee pursuant to the Plan. The Awarded Restricted Stock Units are being awarded to Employee effective as of the date of this Agreement (the “Effective Date”), and shall vest or be forfeited in accordance with (and
otherwise be subject to) the provisions of this Agreement. The Awarded Restricted Stock Units are being awarded to Employee without the payment of any cash consideration by Employee. The award of Restricted Stock Units made to Employee pursuant to
this Section 1 is hereby designated by the Committee to be a Performance Award for the purposes of the Plan. 
 2.
Vesting and Forfeiture. The Awarded Restricted Stock Units shall be subject to being forfeited by Employee during the Restricted Period specified in the attached Schedule I (the “Restricted Period”), and shall vest in
or be forfeited by Employee as follows: 
 (a) If Employee remains continuously employed by the Company or
an Affiliate from the Effective Date through the end of the Restricted Period, the Awarded Restricted Stock Units shall vest and the forfeiture restrictions applicable to them under this Agreement shall terminate to the extent of the percentage of
vesting achieved under the performance measure and vesting schedule provisions of the attached Schedule I, and any Awarded Restricted Stock Units that do not vest at the end of the Restricted Period shall be forfeited by Employee. 

 (b) If Employee’s employment with the Company or an Affiliate
terminates during the Restricted Period by reason of the death, Disability or Retirement of Employee, then the number of Awarded Restricted Stock Units equal to the total number of Awarded Restricted Stock Units awarded hereunder multiplied by a
fraction, (i) the numerator of which is the number of calendar months remaining in the Restricted Period that end after the date of Employee’s termination of employment with the Company or an Affiliate by reason of death, Disability or
Retirement, and (ii) the denominator of which is 36, shall be forfeited by Employee. The remaining number of Awarded Restricted Stock Units awarded hereunder shall vest subject to the forfeiture restrictions applicable to them under this
Agreement which shall terminate at the end of the Restricted Period to the extent of the percentage of vesting achieved under the performance measure and vesting schedule provisions of the attached Schedule I, and any Awarded Restricted Stock Units
that do not vest at the end of the Restricted Period shall be forfeited by Employee. 
 (c) If Employee’s
employment with the Company or an Affiliate terminates during the Restricted Period for any reason other than the death, Disability or Retirement of Employee, all of the Awarded Restricted Stock Units shall be forfeited by Employee. 

(d) The foregoing provisions of this Section 2 to the contrary notwithstanding, if a 409A Change in Control (as
defined below) occurs during the Restricted Period, 50% of the then outstanding Awarded Restricted Stock Units awarded hereunder shall vest and the forfeiture restrictions applicable to them under this Agreement shall terminate, and the remaining
50% of the then outstanding Awarded Restricted Stock Units awarded hereunder shall be forfeited by Employee. For the purposes of this Agreement, a “409A Change in Control” means a Change in Control (as defined in the Plan) that also is a
change in control event within the meaning of U.S. Treas. Reg. section 1.409A-3(i)(5). The parties expressly agree that the provisions of this Section 2(d) shall be the exclusive means by which an Awarded Restricted Stock Unit shall vest in
connection with a change in the ownership or effective control of the Company or a change in the ownership of the assets of the Company, and that no provision of any plan, employment agreement or other agreement or arrangement pertaining to Employee
and the Company or an Affiliate shall cause an Awarded Restricted Stock Unit to vest in connection with a change in the ownership or effective control of the Company or a change in the ownership of the assets of the Company unless this
Section 2(d) is amended in writing by the parties to provide for such vesting. 
 For the purposes of this Agreement, transfers of
employment without interruption of service between or among the Company and any of its Affiliates shall not be considered a termination of employment. 
 3. Issuance of Shares. With respect to an Awarded Restricted Stock Unit that vests pursuant to the provisions of Section 2(a) or Section 2(b) hereof, as soon as practicable after the
percentage of vesting achieved under the performance measure and vesting provisions of the attached Schedule I has been determined and certified in writing by the Committee and during the period beginning at the end of the Restricted Period and
ending on March 15 following the end of the Restricted Period, the Company shall issue or transfer to Employee one Share in settlement of such Awarded Restricted Stock Unit and such Awarded Restricted Stock Unit shall be canceled. With respect
to an Awarded Restricted Stock Unit that vests pursuant to the provisions of Section 2(d) hereof, as soon as practicable (but in no event later than 30 days) following the occurrence of a 409A Change in Control, the Company shall issue or
transfer to Employee one Share in settlement of such Awarded Restricted Stock Unit and such Awarded Restricted Stock Unit shall be canceled. 

  
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 4. No Rights as Shareholder. Employee shall have no rights as a shareholder of the
Company, including, without limitation, voting rights or the right to receive dividends and distributions as a shareholder, with respect to the Shares subject to the Awarded Restricted Stock Units, unless and until such Shares are issued or
transferred to Employee as provided herein. 
 5. Cash Dividend and Cash Distribution Equivalent Rights. The Company
hereby awards cash dividend and cash distribution equivalent rights to Employee with respect to the Awarded Restricted Stock Units. The cash dividend and cash distribution equivalent rights awarded to Employee under this Section 5 shall entitle
Employee to the payment, with respect to each Share that is subject to an Awarded Restricted Stock Unit that has not been canceled or forfeited, of an amount in cash equal to the amount of any cash dividend or other cash distribution paid by the
Company with respect to one Share while such Awarded Restricted Stock Unit remains outstanding. Such amount shall be paid to Employee by Employee’s employer on the date of the payment of the related cash dividend or cash distribution. The award
of cash dividend and cash distribution rights made to Employee pursuant to this Section 5 is not a Performance Award for the purposes of the Plan. 
 6. Agreements Regarding Withholding Taxes. 
 (a) Employee shall make
arrangements satisfactory to the Committee for the payment of taxes of any kind that are required by law to be withheld with respect to the Awarded Restricted Stock Units or the cash dividend and cash distribution equivalent rights awarded under
this Agreement, including, without limitation, taxes applicable to (i) the awarding of the Awarded Restricted Stock Units or the issuance or transfer of Shares in settlement thereof, or (ii) the awarding of the cash dividend and cash
distribution equivalent rights or the payments made with respect thereto. 
 (b) Unless and until the Committee shall determine
otherwise and provide notice to Employee in accordance with Section 6(c) of this Agreement, any obligation of Employee under Section 6(a) of this Agreement that arises with respect to the issuance or transfer of Shares in settlement of
Awarded Restricted Stock Units that have become vested shall be satisfied by the Company withholding a portion of such Shares valued at their Fair Market Value as of the date on which the taxable event that gives rise to the withholding requirement
occurs. 
 (c) The Committee may determine, after the Effective Date and on notice to the Employee, to authorize one or more
arrangements (in addition to or in lieu of the arrangement described in Section 6(b) of this Agreement) satisfactory to the Committee for Employee to satisfy the obligation of Employee under Section 6(a) of this Agreement. 

(d) If Employee does not, for whatever reason, satisfy the obligation of Employee under Section 6(a) of this Agreement, then the
Company and its Affiliates shall, to the extent permitted by law, have the right to deduct from any payments of any kind otherwise due to Employee the amount required to satisfy the obligation of Employee under Section 6(a) of this Agreement.

  
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 7. Non-Assignability. This Agreement is not assignable or transferable by Employee.
No right or interest of Employee under this Agreement or the Plan may be assigned, transferred or alienated, in whole or in part, either directly or by operation of law (except pursuant to a qualified domestic relations order within the meaning of
Section 414(p) of the Code or a similar domestic relations order under applicable foreign law, either in such form as is acceptable to the committee), and no such right or interest shall be liable for or subject to any debt, obligation or
liability of Employee. 
 8. 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, Employee agrees that the Awarded Restricted Stock Units and the cash
dividend and cash distribution equivalent rights awarded under this Agreement 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. 
 9. 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 Switzerland. 

10. 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. 
 11. 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. 
 12. 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: 

  
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 Noble Corporation 
 Dorfstrasse 19A 
 6340 Baar 

Switzerland 

Attention: Chief Executive Officer 
 Fax: 281-596-4486 
 With a copy to: 

Chairman of Compensation Committee 
 c/o Noble Corporation 
 Dorfstrasse 19A 

6340 Baar 

Switzerland 

Fax: 281-596-4486 
 (b) If to Employee, 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 
 Employee’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. 
 13. 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. 
 14. 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. 
 15. 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. 
 16. 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. 

  
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 17. 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.” 
 18. Unfunded Awards. The awards made under this Agreement are unfunded and unsecured obligations and rights to provide or receive compensation in accordance with the provisions of this Agreement,
and to the extent that Employee acquires a right to receive compensation from the Company or an Affiliate pursuant to this Agreement, such right shall be no greater than the right of any unsecured general creditor of the Company or such Affiliate.

 19. Compliance with Code Section 409A. The compensation payable to or with respect to Employee pursuant to this
Agreement is intended to be compensation that is not subject to the tax imposed by Code Section 409A, and this Agreement shall be administered and construed to the fullest extent possible to reflect and implement such intent. 

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

 

			
	NOBLE CORPORATION
		
	By:	 	 
	Name:	 	Julie J. Robertson
	Title:	 	Executive Vice President
		 	and Corporate Secretary

  

			
	 Address and fax number, if any:
	  	  

		  	Employee

 Dorfstrasse 19A 

6340 Baar 
 Switzerland 

Fax: 281-596-4486 

  
 6 

 SCHEDULE I 
 NOBLE CORPORATION 
 PERFORMANCE MEASURES FOR THE 2013-2015 PERFORMANCE
CYCLE 
 AWARD OF PERFORMANCE-VESTED RESTRICTED STOCK 
 The Committee has determined and specifies that the following Performance Cycle, Restricted Period and Performance Measures shall apply to the Awarded Restricted Stock Units: 

1. Performance Cycle. The Performance Cycle applicable to the Awarded Restricted Stock Units shall be the three-year period
beginning on January 1, 2013, and ending on December 31, 2015. 
 2. Restricted Period. The Restricted Period
applicable to the Awarded Restricted Stock Units shall be the three-year period beginning on the Effective Date and ending on the third anniversary of the Effective Date. 
 3. Performance Measure. The Performance Measure used to determine the extent of the vesting of the Awarded Restricted Stock Units is the cumulative total shareholder return (“TSR”)
for the Shares of the Company for the Performance Cycle. The Awarded Restricted Stock Units that are outstanding as of the end of the Restricted Period will vest or be forfeited based on the Company’s TSR performance relative to the following
group of competitor companies (the “Competitor Group”): Atwood Oceanics, Inc.; Cameron International Corp.; Diamond Offshore Drilling Inc.; Ensco International plc; FMC Technologies, Inc.; Helmerich & Payne Inc.; National Oilwell
Varco, Inc.; Oceaneering International, Inc.; Oil States International Inc.; Patterson-UTI Energy Inc.; Rowan Companies Inc.; Superior Energy Services, Inc.; Transocean Ltd.; and Weatherford International Ltd. 

TSR for the Performance Cycle shall be defined and calculated as follows, where “Beginning Price” is the average of the closing
prices on the 30 NYSE trading days immediately preceding the beginning of the Performance Cycle, and the “Ending Price” is the average of the closing prices on the last 30 NYSE trading days of the Performance Cycle, in each case as applied
to the applicable equity security: 
 TSR = (Ending Price – Beginning Price + dividends and cash distributions per share
paid*) 
 Beginning Price 
  

	 	*	Stock dividends paid in securities rather than cash in which there is a distribution of less than 25 percent of the outstanding shares (as calculated prior to the
distribution) shall be treated as cash for purposes of this calculation. 

  
 S-1

 The companies comprising the Competitor Group on the last NYSE trading day of the
Performance Cycle shall be the companies used in the comparison for determining the Competitor Group performance measurement. If a Competitor Group company’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 companies in the Competitor Group in making the determination of the Competitor Group 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, then notwithstanding anything contained herein to the contrary, the Company’s TSR performance shall be determined relative to the
TSR performance of the applicable securities of the companies in the Dow Jones U.S. Oil Equipment & Services Index (the “Index”), and the Competitor Group performance measure shall be inapplicable and not used in determining the
overall performance measure for vesting. If the Index performance measure becomes applicable, the companies comprising the Index on the last NYSE trading day of the Performance Cycle shall be the companies used in the comparison for determining the
Company’s percentile rank relative to the companies in the Index. Any company in the Index on the last NYSE trading day of the Performance Cycle that entered the Index after the first NYSE trading day of the Performance Cycle will, for the
purpose of calculating the TSR of the companies in the Index, be added into the Index only as of the time such company entered the Index. For example, if a company enters the Index on March 31 of a year during the Performance Cycle and is in
the Index on the last trading day in the Performance Cycle, the entering company’s performance for comparison purposes relative to the Company and the other companies in the Index will be included only from such March 31 date on which the
company entered the Index. 
 The number of the Awarded Restricted Stock Units that will vest at the end of the Restricted
Period on the basis of the Performance Measure for the Performance Cycle shall be determined in accordance with the vesting schedule set forth on Annex I attached to and hereby made a part of this Schedule I. The level of achievement of the
Performance Measure for the Performance Cycle, and the applicable vesting or forfeiture of the Awarded Restricted Stock Units that are outstanding at the end of the Restricted Period, shall be determined and certified in writing by the Committee as
soon as reasonably practicable after the end of the Performance Cycle, but in no event later than 60 days after the end of the Performance Cycle. 

  
 S-2

 ANNEX I TO SCHEDULE I 

2013-2015 Performance Cycle 
 Performance-Vested Restricted Stock Unit Agreement Vesting Schedule 
  

											
	 Performance Level
	  	TSR
Percentile
Versus Peers	 	Percentage of
the Target
Achieved	 	 	Percentage of
the Awarded
Restricted
Stock Units
Vesting	 
	 Maximum
	  	90th	 	 	200	% 	 	 	100	% 
	 Above Target
	  	75th	 	 	150	% 	 	 	75	% 
	 Target
	  	51st	 	 	100	% 	 	 	50	% 
	 Threshold
	  	25th	 	 	50	% 	 	 	25	% 
	 Below Threshold
	  	<25th	 	 	0	% 	 	 	0	% 

 Percentile results between those listed will be interpolated on a linear basis for performance above
the 25th percentile (threshold level) 

  
 S-3EX-10.41

 Exhibit 10.41 
 NOBLE CORPORATION 
 2013 SHORT TERM INCENTIVE PLAN 

Section 1. Purpose 

The success of Noble Corporation (“Noble”) and its subsidiaries (collectively, unless the context otherwise requires, the
“Company”) is a result of the efforts of all key employees. In order to focus each employee’s efforts on optimizing the Company’s overall results, operationally and financially, the Company maintains this Short Term Incentive
Plan (the “Plan”) to reward employees for successful achievement of specific goals. 
 An effective incentive plan
should both align employee interests with those of shareholders and motivate and influence employee behavior. Key positions within the Company have the ability to make a positive contribution to key factors that increase shareholder value. These
factors can be quantified and measured through achievement of various financial and operational targets, such as safety and cash operating margins. The objectives of using such targets in the formulation of the specific Company goals are to link an
employee’s annual incentive award more closely to the creation of shareholder wealth and to promote a culture of high performance and an environment of team work. 
 Section 2. Participation and Eligibility 
 Full-time shore-based
employees and select offshore employees (Rig Managers, Assistant Rig Managers and Captains) are eligible for consideration of a bonus under the Plan, subject to the approval of the Compensation Committee (the “Committee”) of the Board of
Directors (the “Board”) of Noble. Each such employee will be considered either a “corporate employee” or a “division employee” for purposes of adjustment of such employee’s target bonus pursuant to Section 7.

 To be eligible to receive a bonus payment with respect to a Plan year, an employee must be actively employed by the Company
on the last day of such Plan year and must continue to be employed through the date on which bonus payments for such Plan Year are made. An employee shall not be eligible to receive any bonus payment if the employee’s employment with the
Company terminates for any reason, either voluntarily or involuntarily, before that date on which bonus payments for a Plan year are made. The Plan year shall be the calendar year. 

Notwithstanding the foregoing, in the event of death, disability or retirement, the employee or estate of the former employee may receive
a pro-rated payment from the Plan, at the discretion of the Committee and the Chief Executive Officer (the “CEO”). For purposes of the Plan, “disability” means any termination of employment with the Company or an affiliate of the
Company because of a long-term or total disability, as determined by the Committee and CEO, and “retirement” means a termination of employment with the Company on a voluntary basis by a person if, immediately prior to such termination of
employment, the sum of the age and the number of years of continuous service of such person with the Company (or affiliate) is equal to or greater than 60. 

 Section 3: Plan Funding 

The award pool (the “Aggregate Bonus Pool” or the “Pool”) will equal the sum of: (1) all eligible
participants’ target bonuses (“Aggregate Target Bonuses”), plus (2) up to 20% of the Aggregate Target Bonuses. For purposes of calculating the Aggregate Target Bonuses, a 6% target bonus percentage will be used for those
employees covered under the Plan that do not have a formal target bonus percentage. The Aggregate Bonus Pool will only be established when the EBITDA goal is achieved at or above the threshold performance level (ref. Annex I). EBITDA will be defined
as the Company’s earnings before the deduction of interest, tax, depreciation and amortization expenses, subject to adjustment to exclude extraordinary gains or losses 
 Section 4. Administrative Procedures 
 During the
fourth quarter of each year, the Company will commence preparation of budgets and forecasts for the succeeding Plan year. The Board will approve the budget for the Plan year not later than March 31st of such Plan year. 

Goals for a Plan year for each of the categories in Section 6 will be compiled by management and submitted to the Committee for
approval at the first regularly scheduled Committee meeting of each new Plan year. The specific goals established for the Plan year will be set forth in an Annex I to this Plan for such Plan year, and the Annex I hereto for each Plan year shall be
incorporated into and made a part of this Plan for such Plan year. 
 If, after the establishment of goals for a Plan year, the
budget changes substantially due to subsequent events, such as the acquisition or sale of assets or any unforeseen event that impacts the Company or industry as a whole, then the CEO shall, at his discretion, recommend to the Committee the
adjustment of the respective goals in order that they may not be adversely impacted by such an event. Any such revised goals shall be applicable to the Plan year from and after the time of their approval. 

Section 5. Target Bonus 
 The target bonus for an employee is an amount equal to the employee’s salary at the end of the Plan year multiplied by the assigned target bonus percentage. Except for offshore employees, 50% percent
of this amount is eligible to be paid based on the achievement of the stated goals under the Plan pursuant to the terms outlined in Sections 6 and 7 and Annex I, and 50 percent will be based on merit, individual and team performance and/or
additional selected criteria. Target bonuses for offshore employees are rig-specific and fully based on the safety results of the rig. Target bonuses range from 4 percent to 100 percent. For purposes of calculating the Aggregate Target Bonuses
(Section 3), a 6% target bonus will be used for those employees covered under the Plan that do not have a formal target bonus percentage. Assigned percentages are intended to be both internally equitable and externally competitive. 

  
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 Section 6. Goal Categories and Weightings 

Goals for the following categories will be approved by the Committee for each Plan year. Such goals will then be set forth in the Annex I
to this Plan for such Plan year. The relative weighting assigned to each goal will be as set forth below subject to annual review by the Committee. 
  

			
	 Corporate Goals
	  	Assigned Weight
	 1.     Company EBITDA
	  	65.0%
	 2.     Company Safety Results
	  	35.0%
		
	 Division Goals
	  	Assigned Weight
	 1.     Division Cash Operating Margin
	  	65.0%
	 2.     Division Safety Results
	  	17.5%
	 3.     Company Safety Results
	  	17.5%

 Section 7. Determination of Awards 

The respective employee target bonuses determined pursuant to Section 5 for a Plan year are subject to adjustment as set forth in
this Section to reflect the levels of achievement of the specific, predetermined goals for such Plan year. Any bonus multiplier achieved will be applied to the stated corporate and division goals, pursuant to the terms of the Plan. In addition, a
maximum bonus multiplier of 2.0 may be applied to the portion of the award that is based on merit, individual and team performance and/or additional selected criteria, subject to the approval of the Committee and CEO, as stated in Section 8 of
this document. The aggregate total of these awards will be the “Aggregate Calculated Pool”. 
 For example, if the
bonus target pursuant to Section 5 is $10,000, and if the cumulative goal achievement for financial and safety goals described in Section 6 is 1.2, the adjusted bonus target would be $12,000 ($10,000 x 1.2); $6,000 for Section 5 goal
achievement, $6,000 for individual achievement. If the manager’s recommendation for individual achievement is 0.8 (or 80%), the formula-driven bonus adjusts to $10,800 ($6,000 x 0.8 = $4,800 for individual achievement + $6,000 for
Section 5 goal achievement). The bonus amount may further adjust pursuant to the terms of the Plan as described in Section 8. 
 Subject to the determination by the Committee of a sufficient bonus pool for a Plan year pursuant to Section 8, the bonus payable to an eligible employee will be an amount equal to such
employee’s target bonus amount multiplied times the applicable multiplier determined per the Annex I schedule. Amounts may be adjusted for employees hired or promoted during the Plan year considering length of service or time in position. Note
that if on a cumulative basis the sum of the awards in the Aggregate Calculated Pool is greater than the Aggregate Bonus Pool (Section 3) bonuses will be further adjusted on a pro-rata basis to remain within the constraints of the Pool. 

  
 3 

 Section 8. Review and Approval Process 

After the end of each Plan year, the Committee, in its best business judgment, will make the final determination on the size of the
Aggregate Bonus Pool for such Plan year. All bonus calculations, allocations and recommendations are subject to review and approval by the Committee. 
 Managers having responsibility for recommending the allocation of bonuses to eligible employees shall submit their recommended bonus based on their performance and contributions to the Executive Vice
President and the CEO for review and approval. Notwithstanding anything otherwise contained in this Plan, the Committee and the CEO (and any delegated designee of the CEO) shall have the authority to adjust individual bonus amounts as deemed to be
appropriate for any reason, including, but not limited to, company or division performance, individual employee performance, employee conduct, etc. 
 Section 9. At-Will Employment 
 Nothing in the Plan guarantees
or constitutes a contract for any specific term of employment or otherwise limits the Company’s or an employee’s right to terminate the employment relationship for any reason at any time. 

  
 4 

 ANNEX I 
 2013 GOALS 
  

	1.	EBITDA (100% Plan funding; 65% weighting for Corporate) 

 The Aggregate Bonus Pool will be determined considering EBITDA achievement relative to established goals as set forth in the table below and using the Bonus Pool Multiplier outlined in the table below.
The following table will also be used to determine achievement and the associated Bonus Pool Multiplier with respect to the Company EBITDA goal. Values between those listed are interpolated on a linear basis. 

 

							
	Bonus Pool Multiplier	  	0.50	  	1.0	  	2.0
	Level of Achievement	  	Threshold (75%)	  	Target (100%)	  	Maximum (115%)

  

	2.	Cash Operating Margin (65% weighting for Divisions) 

 Cash operating margin is defined as contract drilling revenues less contract drilling cost including reimbursables. In accordance with the schedules below, the Bonus Pool Multiplier with respect to cash
operating margin will be applied to the cash operating margin component of the Division goal category for applicable employees. Values between those listed are interpolated on a linear basis. 

 

							
	Bonus Pool Multiplier	  	0.50	  	1.0	  	2.0
	Level of Achievement	  	Threshold (75%)	  	Target (100%)	  	Maximum (115%)

  

	3.	Safety (35% weighting) 

The Company’s safety objective each year is to provide a strong focus on an injury free workplace. The Company’s goal, for
purposes of this Plan, is to achieve an improvement in the Lost Time Incident Rate (“LTIR”) as compared to the industry average, as evidenced by the International Association of Drilling Contractors (“IADC”). Values between the
target and maximum performance levels are interpolated on a linear basis. 
  

							
	Bonus Pool Multiplier	  	0.50	  	1.0	  	2.0
	Level of Achievement	  	Threshold	  	Target	  	Maximum
	Company or Division Goal	  	Year-over-year improvement over internal LTIR	  	< IADC industry average	  	< 90% of IADC industry average

 The IADC normally publishes industry safety statistics in late February for the previous calendar year
operating period, therefore, for the purpose of this Plan, the IADC industry average will be measured over the preceding twelve month period, ending September 30, 2013. 

  
 A-1

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