Document:

exv4w1

 

Exhibit 4.1

 

 

CLECO POWER LLC

(Successor to Cleco Utility Group Inc., formerly Central Louisiana Electric Company, Inc.)

TO

THE BANK OF NEW YORK TRUST COMPANY, N.A.

(Successor to The Bank of New York, successor to Bankers Trust Company),

as Trustee

 

EIGHTH SUPPLEMENTAL INDENTURE

DATED AS OF NOVEMBER 30, 2005

 

Supplementing the Indenture

dated as of October 1, 1988

 

 

 

 

          EIGHTH SUPPLEMENTAL INDENTURE, dated as of November 30, 2005, between CLECO POWER LLC
(successor to Cleco Utility Group Inc., formerly Central Louisiana Electric Company, Inc.), a
Louisiana limited liability company (the “Company”), having its principal office at 2030
Donahue Ferry Road, Pineville, Louisiana 71360-5226, and THE BANK OF NEW YORK TRUST COMPANY, N.A.
(successor to The Bank of New York, successor to Bankers Trust Company), a national banking
association organized under the laws of the United States, as trustee (the “Trustee”),
having its principal Corporate Trust Office at 10161 Centurion Parkway, Jacksonville, Florida 32256
(the “Eighth Supplemental Indenture”).

RECITALS OF THE COMPANY

          Central Louisiana Electric Company, Inc., a Louisiana corporation, executed and delivered its
Indenture dated as of October 1, 1988 to Bankers Trust Company, as trustee (the “Original
Indenture” and, as previously and hereby supplemented and amended, the “Indenture”), to
provide for the issuance from time to time of its unsecured debentures, notes or other evidences of
indebtedness, in the manner and subject to the conditions set forth therein.

          Cleco Utility Group Inc. (formerly Central Louisiana Electric Company, Inc.) (“Utility
Group”) executed and delivered to the Trustee a First Supplemental Indenture dated as of
December 1, 2000 (the “First Supplemental Indenture”) to the Original Indenture, as
permitted by Section 901(8) of the Original Indenture, in order to amend the Original Indenture in
certain respects to clarify that Utility Group could consolidate with, or sell, lease or convey all
or substantially all of its assets to, or merge with or into any limited liability company.

          Pursuant to that certain Joint Agreement of Merger of Utility Group with and into Cleco Power
LLC effective December 31, 2000, Utility Group merged with and into the Company, and the Company
was vested with all rights, privileges and franchises of Utility Group and became responsible for
all liabilities and obligations of Utility Group.

          The Company, as successor to Utility Group, executed and delivered to the Trustee a Second
Supplemental Indenture dated as of January 1, 2001 (the “Second Supplemental Indenture”) to
the Original Indenture as supplemented and modified by the First Supplemental Indenture, in
accordance with Section 901(1) thereof, in order to evidence and confirm its succession to Utility
Group and its assumption of the covenants therein contained and the Securities.

          The Company executed and delivered to the Trustee a Third Supplemental Indenture dated as of
April 26, 2001 to the Original Indenture, a Fourth Supplemental Indenture dated as of February 1,
2002 to the Original Indenture, a Fifth Supplemental Indenture dated as of May 1, 2002 to the
Original Indenture, a Sixth Supplemental Indenture dated as of April 28, 2003 to the Original
Indenture and a Seventh Supplemental Indenture dated as of July 6, 2005 to the Original Indenture,
in each case as supplemented and modified by the supplemental indentures entered into prior thereto
and providing for the creation and issue of an additional series of securities as provided therein.

          The Company, in the exercise of the power and authority conferred upon and reserved to it
under the provisions of the Original Indenture, including Section 901(6) thereof,

 

 

and pursuant to appropriate resolutions of the Board of Directors, has duly determined to
make, execute and deliver to the Trustee this Eighth Supplemental Indenture to the Indenture in
accordance with Sections 201, 301 and 303 of the Original Indenture in order to establish the form
or terms of, and to provide for the creation and issue of, an additional series of Securities under
the Original Indenture in the aggregate principal amount of $150,000,000.

          All things necessary to make this Eighth Supplemental Indenture a valid agreement of the
Company have been done.

          NOW, THEREFORE, THIS EIGHTH SUPPLEMENTAL INDENTURE WITNESSETH:

          For and in consideration of the premises and of the covenants contained in the Indenture and
in this Eighth Supplemental Indenture and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all the Holders of the Securities or of series thereof, as
follows:

ARTICLE ONE

ADDITIONAL DEFINITIONS

     Section 1.01. Additional Definitions. Capitalized terms used herein shall have the
meanings specified herein or in the Indenture, as the case may be. Unless otherwise indicated,
section references herein shall be to the sections of the Indenture.

     For all purposes of this Eighth Supplemental Indenture:

     “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which
is not a day on which banking institutions in The City of New York are authorized or
obligated by law to close.

     “Certificated Note” has the meaning set forth in Section 2.09(b) hereof.

     “Comparable Treasury Issue” has the meaning set forth in Section 3.01 hereof.

     “Comparable Treasury Price” has the meaning set forth in Section 3.01 hereof.

     “Corporate Trust Office of the Trustee” means the principal office of the
Trustee located at The Bank of New York Trust Company, N.A., 10161 Centurion Parkway,
Jacksonville, Florida 32256; telecopier: (904) 645-1931.

     “Covenant Defeasance” has the meaning set forth in Section 4.03 hereof.

     “Defaulted Interest” has the meaning set forth in Section 2.04(c) hereof.

     “Defeasance” has the meaning set forth in Section 4.02 hereof.

 

 

     “Depositary” means, with respect to Securities of any series issuable in whole
or in part in the form of one or more Global Securities, a clearing agency registered under
the Exchange Act that is designated to act as Depositary for such Securities.

     “Global Security” means a Security that evidences all or part of the Securities
of any series and bears the legend set forth in the Form of Note as Exhibit A hereto.

     “Holder,” as used in this Eighth Supplemental Indenture, means the Person in
whose name a Note is registered in the Security Register.

     “Indenture” has the meaning set forth in the Recitals hereof.

     “Independent Investment Banker” has the meaning set forth in Section 3.01
hereof.

     “Interest Payment Dates” means June 1 and December 1 of each year, commencing
on June 1, 2006.

     “Maturity Date” means, with respect to a Note, the date on which the principal
of such Note becomes due and payable as therein or herein provided, whether at Stated
Maturity or by declaration of acceleration, upon redemption by the Company as referred to in
Article Three hereof or otherwise.

     “Notes” has the meaning set forth in Section 2.01 hereof.

     “Original Issue Date” means November 30, 2005.

     “Participant” means an institution that has one or more accounts with the
Depositary or a nominee thereof.

     “Primary Treasury Dealer” has the meaning set forth in Section 3.01 hereof.

     “Redemption Date” has the meaning set forth in Section 3.01 hereof.

     “Redemption Price” has the meaning set forth in Section 3.01 hereof.

     “Regular Record Date” means, with respect to each Interest Payment Date, the
close of business on May 15 or November 15, as the case may be, next preceding the
applicable Interest Payment Date.

     “Reference Treasury Dealer” has the meaning set forth in Section 3.01 hereof.

     “Reference Treasury Dealer Quotations” has the meaning set forth in Section
3.01 hereof.

     “Eighth Supplemental Indenture” has the meaning set forth in the introductory
paragraph hereof.

     “Specimen Note” has the meaning set forth in Section 2.08 hereof.

 

 

     “Stated Maturity” has the meaning set forth in Section 2.03 hereof.

     “Treasury Rate” has the meaning set forth in Section 3.01 hereof.

     “U.S. Government Obligation” has the meaning set forth in Section 4.04(a)
hereof.

ARTICLE TWO

ESTABLISHMENT OF 6.50% NOTES DUE DECEMBER 1, 2035

     Section 2.01. Title of the Securities. The title of the Securities established by this
Eighth Supplemental Indenture shall be “6.50% Notes due December 1, 2035” of the Company (the
“Notes”).

     Section 2.02. Limitation on Aggregate Principal Amount. The aggregate principal amount of
the Notes shall be limited to $150,000,000; provided, however, that the authorized aggregate
principal amount may in the future be increased without the consent of the Holders pursuant to the
provisions of the Indenture.

     Section 2.03. Stated Maturity. The Notes shall mature and the principal amount thereof
shall be due and payable, together with all accrued and unpaid interest thereon, on December 1,
2035 (the “Stated Maturity”).

     Section 2.04. Interest and Interest Rates.

     (a) Each Note shall bear interest at the rate of 6.50% per annum, from and including
the immediately preceding Interest Payment Date to which interest has been paid or duly
provided for (or from, and including, the Original Issue Date if no interest has been paid
or duly provided for), to, but excluding, the Maturity Date. The initial date on which
interest will be paid for the Notes will be June 1, 2006 and the payment on such date will
include all accrued interest from the Original Issue Date.

     (b) The amount of interest payable for any period shall be computed on the basis of a
360-day year of twelve 30-day months. The amount of interest payable for any partial period
shall be computed on the basis of a 360-day year of twelve 30-day months and the days
elapsed in any partial month. In the event that any date on which interest is payable on a
Note is not a Business Day, then payment of the interest payable on such date will be made
on the next succeeding day which is a Business Day (and without any interest or other
payment in respect of any such delay) with the same force and effect as if made on the date
the payment was originally payable.

     (c) The interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date shall be paid to the Persons in whose names the Notes are registered at the
close of business on the applicable Regular Record Date, except that interest payable on the
Maturity Date as provided herein shall be paid to the Holder to whom principal is payable in
accordance with Section 2.05 hereof. Any such interest not so punctually paid or duly
provided for (“Defaulted Interest”) shall forthwith cease to be

 

 

payable to the
Holder on such Regular Record Date and may be paid by the Company, at its election in each
case (i) in accordance with the provisions of Section 307(1) of the Original Indenture to
the Persons in whose name such Notes are registered at the close of business on a Special
Record Date or (ii) be paid in any other lawful manner not inconsistent with the
requirements of any securities exchange or automated quotation system, if any, on which the
Notes may be listed or traded, and upon such notice as may be required by such exchange or
quotation system, if, after notice is given by the Company to the Trustee of the proposed
payment pursuant to this clause, such payment shall be deemed practicable by the Trustee,
all as more fully provided in the Indenture.

     Section 2.05. Place and Manner of Payment of Principal and Interest.

     (a) The Trustee shall initially serve as the Paying Agent for the Notes. Payment of
the principal of and any interest on the Notes due on the Maturity Date shall be made in
immediately available funds in such coin and currency of the United States of America as at
the time of payment is legal tender for payment of public and private debt upon presentation
and surrender of the applicable Note at the office or agency maintained by the Company for
that purpose, initially the Corporate Trust Office of the Trustee, or at such other paying
agency as the Company may determine; provided, however, that if the Maturity Date falls on
or after an Interest Payment Date then the Holders presenting and surrendering Notes on such
Maturity Date will only be entitled to interest accruing on or after such Interest Payment
Date.

     (b) Payment of interest due on any Interest Payment Date other than on the Maturity
Date will be made at the Corporate Trust Office of the Trustee or, at the option of the
Company, (i) by check mailed to the address of the Person entitled thereto as such address
shall appear in the Security Register or (ii) by wire transfer of immediately available
funds at such place and to such account at a banking institution in the United States as may
be designated in wire transfer instructions received in writing by the Trustee at least
fifteen (15) days prior to such Interest Payment Date. Any such wire transfer instructions
received by the Trustee shall remain in effect until revoked by such Holder.

     Section 2.06. Place of Registration or Exchange; Notices and Demands with Respect to Notes.
The place where the Holders of the Notes may present the Notes for registration of transfer or
exchange and may make notices and demands to or upon the Company in respect of the Notes shall be
the Corporate Trust Office of the Trustee.

     Section 2.07. Sinking Fund Obligations. The Notes will not be subject to any sinking fund,
but may be redeemable as and to the extent provided in Article Three of this Eighth Supplemental
Indenture.

     Section 2.08. Form of Securities. The Notes shall be issuable only in fully registered
form, without coupons. The Notes shall be issuable in whole or in part in the form of one or more
Global Securities registered in the name of the Depositary or its nominee. Global Securities shall
not be deemed to be temporary Securities in global form for purposes of Section 304 of the Original
Indenture. A beneficial owner of an interest in a Global Security

 

 

representing the Notes will not
be considered the Holder thereof for any purpose of the Indenture. Except as may otherwise be
provided in an Officers’ Certificate or Company Order subsequently delivered to the Trustee, the
Notes will be issuable in denominations of $1,000 or any amount in excess thereof that is an
integral multiple of $1,000.

          The Notes shall be substantially in the form attached as Exhibit A hereto (the “Specimen
Note”).

     Section 2.09. Global Securities.

     (a) The Notes shall be issuable in whole or in part in the form of one or more Global
Securities. The Global Securities shall be deposited with, or on behalf of, The Depository
Trust Company, New York, New York, which shall act initially as Depositary with respect to
the Notes, or any other duly appointed depositary (the “Depositary”). The Notes
shall be issued only as fully registered securities in the name of the Depositary’s nominee,
Cede & Co. In addition to any other legend permitted pursuant to the provisions of the
Indenture, each Global Security shall bear legends in substantially the following form:

               “THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET,
NEW YORK, NEW YORK) OR OTHER DULY APPOINTED DEPOSITORY (THE “DEPOSITARY”). UNLESS AND UNTIL
IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY OR OTHER DULY APPOINTED
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO
A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.”

               “Unless this certificate is presented by an authorized representative of The Depository
Trust Company, a New York corporation, to the issuer hereof or its agent
for registration of transfer, exchange, or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an authorized
representative of The Depository Trust Company (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of The Depository Trust
Company), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.”

     (b) Unless and until it is exchanged in whole or in part for one or more Notes in
certificated form (each a “Certificated Note”), a Global Security representing all
or a portion of the Notes may not be transferred except as a whole (i) by the Depositary to
a nominee of such Depositary, (ii) by a nominee of such Depositary to such Depositary or
another nominee of such Depositary or (iii) by such Depositary or any such nominee to a

 

 

successor Depositary or a nominee of such successor Depositary. Certificated Notes may be
presented for registration of transfer or exchange at the office or agency provided for in
the Indenture, as supplemented and amended.

     (c) If at any time the Depositary notifies the Company that it is unwilling or unable
to continue as Depositary or if at any time the Depositary shall no longer be a clearing
agency registered under the Securities Exchange Act of 1934, as amended, or other applicable
statute or regulation, the Company shall appoint a successor Depositary. If a successor
Depositary is not appointed by the Company within sixty (60) days after the Company receives
such notice or becomes aware of such condition, the Company shall execute, and the Trustee,
upon receipt of a Company Order for the authentication and delivery of Certificated Notes,
shall authenticate and deliver Certificated Notes in an aggregate principal amount equal to
the principal amount of the Global Security or Notes held by the Depositary in exchange
therefor.

     (d) The Company may at any time and in its sole discretion determine that all or any
portion, in authorized denominations, of the Notes issued in the form of one or more Global
Securities shall no longer be represented by such Global Security or Notes. In such event,
the Company shall execute, and the Trustee, upon receipt of a Company Order for the
authentication and delivery of Certificated Notes, shall authenticate and deliver
Certificated Notes in an aggregate principal amount equal to the principal amount of such
Global Security or Notes in exchange therefor.

     (e) Except as may be otherwise provided in an Officers’ Certificate or Company Order
subsequently delivered to the Trustee and except as specifically provided in Section 2.09(c)
or 2.09(d) hereof, interests in the Notes represented by a Global Security will not be
exchangeable for and will otherwise not be issuable in the form of Certificated Notes.
Upon the occurrence in respect of any Global Security of any one or more of the conditions
specified in Section 2.09(c) or 2.09(d) hereof or as may otherwise be provided in an
Officers’ Certificate or Company Order subsequently delivered to the Trustee, such Global
Security shall be cancelled by the Trustee and Certificated Notes issued in exchange for a
Global Security shall be registered in such names and in such authorized denominations as
the Depositary for such Global Security, pursuant to instructions from its direct or
indirect Participants or otherwise, shall instruct the Trustee.
Unless otherwise specified in such instructions, the Trustee shall deliver such
Certificated Notes to the Persons in which names such Certificated Notes are so registered.
If the Certificated Notes are so delivered, the Company may make such changes to the form of
such Notes as are necessary or appropriate to allow for the issuance of such Certificated
Notes. Notwithstanding any other provision of the Indenture, unless otherwise provided in
an Officers’ Certificate or Company Order subsequently delivered to the Trustee, any Note
authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu
of, any Global Security shall also be a Global Security and shall bear the legends specified
in Section 2.09(a) hereof, except for any transfer of a Global Security pursuant to this
Section 2.09.

     Section 2.10. Security Registrar. The Trustee shall initially serve as the Security
Registrar for the Notes.

 

 

     Section 2.11. Transfer. No service charge will be made for the registration of transfer or
exchange of Notes; provided, however, that the Company may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection with the transfer or exchange.
The Company shall not be required (a) to issue, register the transfer of or exchange any Notes
during a period beginning at the opening of business fifteen (15) days before the day of the
mailing of a notice pursuant to Section 1104 of the Original Indenture identifying the certificate
numbers of the Notes to be called for redemption, and ending at the close of business on the day of
the mailing, or (b) to register the transfer of or exchange any Notes theretofore selected for
redemption in whole or in part, except the unredeemed portion of any Note redeemed in part.

ARTICLE THREE

OPTIONAL REDEMPTION OF THE NOTES

     Section 3.01. Redemption Price. The Company shall have the right to redeem the Notes as a
whole or in part, at its option, at any time and from time to time, at a price (“Redemption
Price”) equal to the greater of:

     (a) 100% of the principal amount of such Notes, and

     (b) the sum of the present values of the remaining scheduled payments of principal and
interest on such Notes (exclusive of unpaid interest to the date of redemption
(“Redemption Date”)) discounted to the Redemption Date semiannually (assuming a
360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below),
plus 30 basis points,

plus, in either case (a) or (b), accrued and unpaid interest on such Notes to (but excluding) the
Redemption Date.

“Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the
semiannual equivalent yield to maturity of the Comparable Treasury Issue (as defined below),
assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal
amount) equal to the Comparable Treasury Price (as defined below) for such Redemption Date.

“Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker (as defined below) as having a maturity comparable to the remaining
term of the Notes to be redeemed that would be used, at the time of selection and in accordance
with customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Notes.

“Independent Investment Banker” means an independent investment banking institution of
national standing appointed by the Company. If the Company fails to appoint such an independent
investment banking institution at least thirty (30) Business Days prior to a Redemption Date, or if
the institution appointed by the Company is unwilling or unable to select the Comparable Treasury
Issue, the selection shall be made by J.P. Morgan Securities Inc., or, if

 

 

it is unwilling or unable to make the selection, by an independent investment banking institution of national standing
appointed by the Trustee.

“Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of
the Reference Treasury Dealer Quotations (as defined below) for such Redemption Date, after
excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee
obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such
quotations.

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer (as defined below) and any Redemption Date, the average, as determined by the Trustee, of
the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage
of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00
p.m. on the third Business Day preceding such Redemption Date.

“Reference Treasury Dealer” means J.P. Morgan Securities Inc. and its successors, and four
other primary U.S. Government securities dealers in the United States (“Primary Treasury
Dealer”) appointed by the Company in connection with the redemption; provided, however, that if
any of the foregoing shall cease to be a Primary Treasury Dealer, the Company shall replace that
former dealer with another Primary Treasury Dealer.

     Section 3.02. Partial Redemption. If the Notes are redeemed in part pursuant to this
Article Three, the Notes shall be redeemed pro rata or by lot or by any other method that the
Trustee deems fair and appropriate. Such partially redeemed Notes shall be surrendered at any
office or agency of the Company maintained for that purpose pursuant to Section 1002 of the
Original Indenture, initially the Corporate Trust Office of the Trustee, with, if the Company or
the Trustee so requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his or her
attorney duly authorized in writing, and the Company shall execute and the Trustee shall
authenticate and deliver to the Holder,
without charge, a new Registered Security of authorized denominations for the principal amount for
the unredeemed portion pursuant to Section 1107 of the Original Indenture.

     Section 3.03. Notice of Optional Redemption. If the Company elects to exercise its right
to redeem all or some of the Notes pursuant to this Article Three, the Company or, at the Company’s
request, the Trustee, shall mail a written notice of such redemption to each Holder of any Note
that is to be redeemed not less than thirty (30) days nor more than sixty (60) days prior to the
Redemption Date.

     Section 3.04. No Limitation on Purchase of Notes by the Company. Subject to the foregoing
and to applicable law (including, without limitation, United States federal securities laws), the
Company and its affiliates may, at any time and from time to time, purchase outstanding Notes by
tender, in the open market or by private agreement.

 

 

ARTICLE FOUR

DEFEASANCE AND COVENANT DEFEASANCE

     Section 4.01. Election by Company. The Company may elect, at its option at any time, to
have Section 4.02 or 4.03 hereof applied to any or all of the Notes, upon compliance with the
conditions set forth below in this Article Four. Any such election shall be evidenced by a Board
Resolution or in another manner contemplated by the Indenture, as supplemented hereby, with respect
to such Notes.

     Section 4.02. Defeasance. Upon the Company’s exercise of its option to have this Section
4.02 applied to any Notes, the Company shall be deemed to have been discharged from its obligations
with respect to such Notes as provided in this Article Four on and after the date the conditions
set forth in Section 4.04 hereof are satisfied (hereinafter called “Defeasance”). For this
purpose, such Defeasance means that the Company shall be deemed to have paid and discharged the
entire indebtedness represented by such Notes and to have satisfied all its other obligations under
such Notes and the Indenture, insofar as such Notes are concerned (and the Trustee, at the expense
of the Company, shall execute proper instruments acknowledging the same), subject to the following,
which shall survive until otherwise terminated or discharged hereunder: (a) the rights of Holders
of such Notes to receive, solely from the trust fund described in Section 4.04 hereof and as more
fully set forth in such section, payments in respect of the principal of and interest on such Notes
when payments are due, (b) the Company’s obligations with respect to such Notes under Sections 304,
305, 306, 1002 and 1003 of the Original Indenture, (c) the rights, powers, trusts, duties and
immunities of the Trustee under the Indenture and (d) this Article Four. Subject to compliance
with this Article Four, the Company may exercise its option to have this Section 4.02 applied to
any Notes notwithstanding the prior exercise of its option to have Section 4.03 hereof applied to
such Notes.

     Section 4.03. Covenant Defeasance. Upon the Company’s exercise of its option to have this Section 4.03 applied to any Notes, (a)
the Company shall be released from its obligations under Article Eight of the Original Indenture,
Sections 1007 and 1009 of the Original Indenture and any covenants for the benefit of the Holders
of such Notes provided pursuant to Sections 301(17), Section 901(2) and 901(6) of the Original
Indenture and (b) the occurrence of any event specified in Sections 501(4) (with respect to Article
Eight of the Original Indenture, Sections 1007, 1009 and/or to any such covenants provided pursuant
to Sections 301(17), 901(2) or 901(6)), and 501(8) of the Original Indenture shall be deemed not to
be or result in an Event of Default, in each case with respect to such Notes as provided in this
Section 4.03 on and after the date the conditions set forth in Section 4.04 hereof are satisfied
(hereinafter called “Covenant Defeasance”). For this purpose, such Covenant Defeasance
means that, with respect to such Notes, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such specified section
(to the extent so specified in the case of Section 501(4) of the Original Indenture), whether
directly or indirectly by reason of any reference elsewhere in the Indenture or herein to any such
section or by reason of any reference in any such section to any other provision in the Indenture,
herein or in any other document, but the remainder of the Indenture, as supplemented hereby, and
such Notes shall be unaffected thereby.

 

 

     Section 4.04. Conditions for Defeasance or Covenant Defeasance of Notes. The following
shall be the conditions to the application of Section 4.02 or Section 4.03 hereof to any Notes:

     (a) The Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee that satisfies the requirements contemplated by Section 609 of
the Original Indenture and agrees to comply with the provisions of this Article Four
applicable to it) as trust funds in trust for the purpose of making the following payments,
specifically pledged as security for, and dedicated solely to, the benefits of the Holders
of such Notes, (1) money in an amount, or (2) U.S. Government Obligations (as defined below)
which through the scheduled payment of principal and interest in respect thereof in
accordance with their terms will provide, not later than 10:00 a.m., New York City time, on
the due date of any payment, money in an amount, or (3) a combination thereof, in each case
sufficient, in the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay and discharge,
and which shall be applied by the Trustee (or any such other qualifying trustee) to pay and
discharge, the principal of and interest on such Notes on the Stated Maturity, in accordance
with the terms of the Indenture, and such Notes. As used herein, “U.S. Government
Obligation” means (x) any security which is (i) a direct obligation of the United States
of America for the payment of which the full faith and credit of the United States of
America is pledged or (ii) an obligation of a Person controlled or supervised by and acting
as an agency or instrumentality of the United States of America the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United States of
America, which, in either case (i) or (ii), is not callable or redeemable at the option of
the issuer thereof, and (y) any depository receipt issued by a bank (as defined in Section
3(a)(2) of the Securities Act of 1933, as amended) as custodian with respect to any U.S.
Government Obligation which is specified in Clause (x) above and held by such bank for the
account of the holder of such
depository receipt, or with respect to any specific payment of principal of or interest
on any U.S. Government Obligation which is so specified and held, provided that (except as
required by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by the custodian
in respect of the U.S. Government Obligation or the specific payment of principal or
interest evidenced by such depository receipt.

     (b) In the event of an election to have Section 4.02 hereof apply to any Notes, the
Company shall have delivered to the Trustee an Opinion of Counsel stating that (1) the
Company has received from, or there has been published by, the Internal Revenue Service a
ruling or (2) since the date of this Eighth Supplemental Indenture, there has been a change
in the applicable federal income tax law, in either case (1) or (2) to the effect that, and
based thereon such opinion shall confirm that, the Holders of such Notes will not recognize
gain or loss for federal income tax purposes as a result of the deposit, Defeasance and
discharge to be effected with respect to such Notes and will be subject to federal income
tax on the same amount, in the same manner and at the same times as would be the case if
such deposit, Defeasance and discharge were not to occur.

 

 

     (c) In the event of an election to have Section 4.03 hereof apply to any Notes, the
Company shall have delivered to the Trustee an Opinion of Counsel to the effect that the
Holders of such Notes will not recognize gain or loss for federal income tax purposes as a
result of the deposit and Covenant Defeasance to be effected with respect to such Notes and
will be subject to federal income tax on the same amount, in the same manner and at the same
times as would be the case if such deposit and Covenant Defeasance were not to occur.

     (d) The Company shall have delivered to the Trustee an Officers’ Certificate to the
effect that such Notes, if then listed on any securities exchange, will be delisted as a
result of such deposit.

     (e) No event which is, or after notice or lapse of time or both would become, an Event
of Default with respect to such Notes shall have occurred and be continuing at the time of
such deposit or, with regard to any such event specified in Sections 501(6) and (7) of the
Original Indenture, at any time on or prior to the sixtieth (60th) day after the date of
such deposit (it being understood that this condition shall not be deemed satisfied until
after such sixtieth (60th) day).

     (f) Such Defeasance or Covenant Defeasance shall not cause the Trustee to have a
conflicting interest within the meaning of the Trust Indenture Act (assuming all Notes are
in default within the meaning of such Act).

     (g) Such Defeasance or Covenant Defeasance shall not result in a breach or violation
of, or constitute a default under, any other agreement or instrument to which the Company is
a party or by which it is bound.

     (h) Such Defeasance or Covenant Defeasance shall not result in the trust arising from
such deposit constituting an investment company within the meaning of the
Investment Company Act of 1940, as amended, unless such trust shall be registered under
such Act or exempt from registration thereunder.

     (i) The Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent with respect to such
Defeasance or Covenant Defeasance have been complied with.

     Section 4.05. Acknowledgement of Defeasance. Subject to Section 4.07 below and after the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each
stating that all conditions precedent referred to in Section 4.04 hereof, as the case may be,
relating to the defeasance or satisfaction and discharge of the Indenture, have been complied with,
the Trustee upon request of the Company shall acknowledge in writing the defeasance or the
satisfaction and discharge, as the case may be, of the Indenture, and the discharge of the
Company’s obligations under the Indenture.

     Section 4.06. Trustee Obligations. Subject to the provisions of the last paragraph of
Section 1003 of the Original Indenture, all money and U.S. Government Obligations (including the
proceeds thereof) deposited with the Trustee or other qualifying trustee (solely for purposes of
this Section and Section 4.07 hereof, the Trustee and any such other trustee are referred to

 

 

collectively as the “Trustee”) pursuant to Section 4.04 hereof in respect of any Notes
shall be held in trust and applied by the Trustee, in accordance with the provisions of such Notes
and the Indenture, to the payment, either directly or through any such Paying Agent (including the
Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of such Notes,
of all sums due and to become due thereon in respect of principal and interest, but money so held
in trust need not be segregated from other funds except to the extent required by law.

          The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the U.S. Government Obligations deposited pursuant to Section 4.04 hereof or
the principal and interest received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of Outstanding Notes.

          Anything in this Article Four to the contrary notwithstanding, the Trustee shall deliver or
pay to the Company from time to time upon Company Request any money or U.S. Government Obligations
held by it as provided in Section 4.04 hereof with respect to any Notes which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, are in excess of the amount thereof which would then be required
to be deposited to effect the Defeasance or Covenant Defeasance, as the case may be, with respect
to such Notes.

     Section 4.07. Reinstatement of Note Obligations. If the Trustee or the Paying Agent is
unable to apply any money in accordance with this Article Four with respect to any Notes by reason
of any order or judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the obligations under the Indenture, and such Notes from which
the Company has been discharged or released pursuant to Section 4.02 or 4.03 hereof shall be revived and reinstated as though no deposit had
occurred pursuant to this Article Four with respect to such Notes, until such time as the Trustee
or Paying Agent is permitted to apply all money held in trust pursuant to Section 4.06 hereof with
respect to such Notes in accordance with this Article Four; provided, however, that if the Company
makes any payment of principal of or interest on any such Note following such reinstatement of its
obligations, the Company shall be subrogated to the rights (if any) of the Holders of such Notes to
receive such payment from the money so held in trust.

ARTICLE FIVE

MISCELLANEOUS

     Section 5.01. One Instrument. As supplemented by this Eighth Supplemental Indenture, the
Indenture shall be read, taken and construed as one and the same instrument.

     Section 5.02. No Additional Duties. Except as expressly set forth in this Eighth
Supplemental Indenture, the Trustee assumes no duties, responsibilities or liabilities by reason of
this Eighth Supplemental Indenture, other than as set forth in the Indenture, as fully as if said
terms and conditions were herein set forth at length.

 

 

     Section 5.03. Counterparts. This Eighth Supplemental Indenture may be executed in any
number of counterparts, each of which, when so executed and delivered, shall be an original; but
such counterparts shall together constitute one and the same instrument.

     Section 5.04. Governing Law. This Eighth Supplemental Indenture shall be governed by and
construed in accordance with the laws of the State of New York applicable to agreements made and to
be performed in such state.

 

 

          IN WITNESS WHEREOF, the Company has caused this Eighth Supplemental Indenture to be executed
in its limited liability company name and its limited liability company seal to be hereunto affixed
and attested by its duly authorized officers, all as of the date first above written.

	 	 	 	 	 
	 	 	CLECO POWER LLC
	 
	 	 	 	 
	[SEAL]
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Keith D. Crump

Treasurer

ATTEST:

	 	 	 
	 
	 	 
	 

Judy P. Miller

	 	 
	Secretary
	 	 
	 
	 	 
	Signed, sealed, acknowledged and delivered
	 	 
	by CLECO POWER LLC, in the presence of:
	 	 
	 
	 	 
	 
	 	 
	 

Name:

	 	 
	 
	 	 
	 
	 	 
	 

Name:

	 	 

[Signatures continued on next page.]

 

 

          IN WITNESS WHEREOF, the Trustee has caused this Eighth Supplemental Indenture to be executed
in its corporate name and attested by its duly authorized officers, all as of the date first above
written.

	 	 	 	 	 
	 	THE BANK OF NEW YORK TRUST COMPANY, N.A.,
 as Trustee
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

ATTEST:

	 	 	 
	 
	 	 
	 

Name:

	 	 
	Title:
	 	 
	 
	 	 
	Signed, acknowledged and delivered
	 	 
	by THE BANK OF NEW YORK TRUST
	 	 
	COMPANY, N.A. in the presence of:
	 	 
	 
	 	 
	 
	 	 
	 

Name:

	 	 
	 
	 	 
	 
	 	 
	 

Name:

	 	 

 

 

STATE OF LOUISIANA

PARISH OF ____________________

          BE IT KNOWN, that on this ___ day of November, 2005, before me, the undersigned authority,
duly commissioned, qualified and sworn within and for the State and Parish aforesaid, personally
came and appeared:

1. Keith D. Crump

2. Judy P. Miller

to me known to be the identical persons who executed the above and foregoing instrument, who
declared and acknowledged to me, Notary, in the presence of the undersigned competent witnesses,
that they are respectively (1) the Treasurer and (2) the Secretary of Cleco Power LLC (the
“Company”); that the seal impressed beside their respective signatures on the foregoing
Eighth Supplemental Indenture is the official seal of the Company; that the aforesaid instrument
was signed and sealed by them, on behalf of the Company by authority of a resolution duly adopted
by the Board of Managers of the Company on July 25, 2003; and that the above named persons
acknowledge said instrument to be the free act and deed of the Company.

	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Keith D. Crump

Treasurer
	 
	 	 	 	 	 	 
	 

	 	 	2.	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Judy P. Miller

Secretary

WITNESSES:

                                                                                

                                                                                

                                                                                

Notary Public

 

 

STATE OF FLORIDA

COUNTY OF _____________

          BE IT KNOWN, that on this ___ day of November, 2005, before me, the undersigned authority,
duly commissioned, qualified and sworn within and for the State and County aforesaid, personally
came and appeared:

1.                                                                                 

2.                                                                                 

to me known to be the identical persons who executed the above and foregoing instrument, who
declared and acknowledged to me, Notary, in the presence of the undersigned competent witnesses,
that they are respectively (1) the ___ and (2) the ___ of The
Bank of New York Trust Company, N.A. (the “Trustee”); that the aforesaid instrument was
signed by them on behalf of the Trustee by authority of its By-laws; and that the above named
persons acknowledge said instrument to be the free act and deed of the Trustee.

	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:

Title:
	 
	 	 	 	 	 	 
	 

	 	 	2.	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:

Title:

WITNESSES:

                                                                                

                                                                                

                                                                                

Notary Public

 

 

EXHIBIT A

FORM OF 6.50% NOTE

 

 

[FORM OF FACE OF NOTE]

[If Global Security, insert — THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (55
WATER STREET, NEW YORK, NEW YORK) OR OTHER DULY APPOINTED DEPOSITORY (THE “DEPOSITARY”). UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY OR OTHER DULY APPOINTED DEPOSITARY TO
A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE
OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE
OF SUCH SUCCESSOR DEPOSITARY.

Unless this certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation, to the issuer hereof or its agent for registration of transfer,
exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or in such
other name as is requested by an authorized representative of The Depository Trust Company (and any
payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of The Depository Trust Company), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede &
Co., has an interest herein.]

			
	NO. ___
	 	CUSIP NO. 185508 AE8

CLECO POWER LLC

6.50% NOTE

DUE DECEMBER 1, 2035

	 	 	 
	Principal Amount:

	 	 $150,000,000
	 
	 	 
	Regular Record Date:

	 	May 15 or November 15, as the case may be, next
preceding the applicable Interest Payment Date
	 
	 	 
	Original Issue Date:

	 	November 30, 2005
	 
	 	 
	Stated Maturity:

	 	December 1, 2035
	 
	 	 
	Interest Payment Dates:

	 	June 1 and December 1, commencing June 1, 2006
	 
	 	 
	Interest Rate:

	 	6.50% per annum
	 
	 	 
	Authorized Denomination:

	 	$1,000 and integral multiples in excess thereof

 

 

          CLECO POWER LLC, a Louisiana limited liability company (the “Company”, which term includes any
successor corporation under the Indenture referred to on the reverse hereof), for value received,
hereby promises to pay to ___, or registered assigns, the principal sum
of ___ ($    ) on the Stated Maturity shown above (or upon any earlier date of redemption or acceleration
of maturity) (each such date being hereinafter referred to as the “Maturity Date”) and to
pay interest thereon, from and including the immediately preceding Interest Payment Date to which
interest has been paid or duly provided for (or from, and including, the Original Issue Date if no
interest has been paid or duly provided for), to, but excluding, the Maturity Date, semiannually in
arrears on each Interest Payment Date as specified above, commencing on June 1, 2006 at the rate
per annum shown above until the principal hereof is paid or made available for payment and on any
overdue principal and on any overdue installment of interest. Capitalized terms used herein shall
have the meanings specified in the Indenture or the Eighth Supplemental Indenture (each as defined
on the reverse hereof), as the case may be.

          The interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date shall be paid to the Person in whose name this 6.50% Note due December 1, 2035 (this “Note,”
and collectively, the “Notes”) is registered at the close of business on the applicable Regular
Record Date, except that interest payable on the Maturity Date as provided herein shall be paid to
the Holder to whom principal is payable in accordance with Section 2.05 of the Eighth Supplemental
Indenture. Any such interest not so punctually paid or duly provided for (“Defaulted
Interest”) shall forthwith cease to be payable to the Holder hereof on such Regular Record Date
and may be paid by the Company, at its election in each case (i) in accordance with the provisions
of Section 307(1) of the Indenture to the Person in whose name this Note is registered at the close
of business on a Special Record Date or (ii) be paid in any other lawful manner not inconsistent
with the requirements of any securities exchange or automated quotation system, if any, on which
the Notes may be listed or traded, and upon such notice as may be required by such exchange or
quotation system, if, after notice is given by the Company to the Trustee of the proposed payment
pursuant to clause 2.04(c)(ii) of the Eighth Supplemental Indenture, such payment shall be deemed
practicable by the Trustee, all as more fully provided in the Indenture.

          Interest payments on this Note will include interest accrued to, but excluding, the respective
Interest Payment Dates or the Maturity Date. Interest payments for this Note shall be computed and
paid on the basis of a 360-day year of twelve 30-day months. The amount of interest payable for
any partial period shall be computed on the basis of a 360-day year of twelve 30-day months and the
days elapsed in any partial month. In the event that any date on which interest is payable on this
Note is not a Business Day (as defined below), then payment of the interest payable on such date
will be made on the next succeeding day which is a Business Day (and without any interest or other
payment in respect of any such delay) with the same force and effect as if made on the date the
payment was originally payable. A ‘Business Day,’ means each Monday, Tuesday, Wednesday, Thursday
and Friday which is not a day on which banking institutions in The City of New York are authorized
or obligated by law to close.

          The Trustee shall initially serve as the Paying Agent for the Notes. Payment of the principal
of and any interest on this Note due on the Maturity Date shall be made in immediately available
funds in such coin and currency of the United States of America as at the

 

 

time of payment is legal tender for payment of public and private debt upon presentation and
surrender of this Note at the office or agency maintained by the Company for that purpose,
initially the Corporate Trust Office of the Trustee, or at such other paying agency as the Company
may determine; provided, however, that if the Maturity Date falls on or after an Interest Payment
Date then the Holder presenting and surrendering this Note on such Maturity Date will only be
entitled to interest accruing on or after such Interest Payment Date.

          Payment of interest due on any Interest Payment Date other than on the Maturity Date will be
made at the Corporate Trust Office of the Trustee or, at the option of the Company, (i) by check
mailed to the address of the Person entitled thereto as such address shall appear in the Security
Register or (ii) by wire transfer of immediately available funds at such place and to such account
at a banking institution in the United States as may be designated in wire transfer instructions
received in writing by the Trustee at least fifteen (15) days prior to such Interest Payment Date.
Any such wire transfer instructions received by the Trustee shall remain in effect until revoked by
such Holder.

          Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which provisions shall for all purposes have the same force and effect as if set forth on
the face hereof.

          Unless the Certificate of Authentication hereon has been executed by the Trustee by manual
signature, this Note shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

 

 

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

Dated: __________ ___, 2___

	 	 	 	 	 
	 	CLECO POWER LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

(Seal of CLECO POWER LLC appears here)

Attest:

	 	 	 
	 
	 	 
	 

Name:

	 	 
	Title:
	 	 

CERTIFICATE OF AUTHENTICATION

          This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

Dated: __________ ___, 2___

	 	 	 	 	 
	 	THE BANK OF NEW YORK TRUST COMPANY, N.A., as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

23

 

	 	 	 	 	 

[FORM OF REVERSE OF NOTE]

          This Note is one of a duly authorized issue of Notes of the Company, issued and issuable in
one or more series under the Indenture, dated as of October 1, 1988 (as previously and hereby
supplemented and amended, the “Indenture”), between the Company and The Bank of New York
Trust Company, N.A., as trustee (the “Trustee,” which term includes any successor trustee under the
Indenture), to which Indenture and all indentures incidental thereto reference is hereby made for a
statement of the respective rights, limitation of rights, duties and immunities thereunder of the
Company, the Trustee and the Holders of the Notes issued thereunder and of the terms upon which
said Notes are, and are to be, authenticated and delivered. This Note is designated on the face
hereof as 6.50% Notes due December 1, 2035 (the “Notes”) in the aggregate principal amount
of $150,000,000; provided, however, that the authorized aggregate principal amount may in the
future be increased without the consent of the Holders of the Notes pursuant to the provisions of
the Indenture.

          The Company shall have the right, subject to the terms and conditions of the Eighth
Supplemental Indenture, dated as of November 30, 2005, between the Company and the Trustee (the
“Eighth Supplemental Indenture”), to redeem this Note, as a whole or in part, at its
option, at any time and from time to time, at a Redemption Price equal to the greater of:

     (a) 100% of the principal amount of this Note, and

     (b) the sum of the present values of the remaining scheduled payments of principal and
interest on this Note (exclusive of unpaid interest to the Redemption Date) discounted to
the Redemption Date semiannually (assuming a 360-day year consisting of twelve 30-day
months) at the Treasury Rate, plus 30 basis points,

plus, in either case (a) or (b), accrued and unpaid interest on this Note to (but excluding) the
Redemption Date, all as more fully provided in the Eighth Supplemental Indenture.

          If the Company elects to exercise its right to redeem all or part of this Note, the Company
or, at the Company’s request, the Trustee, will mail a written notice of such redemption to the
Holder hereof not less than thirty (30) days nor more than sixty (60) days prior to the Redemption
Date. In the event of redemption of this Note in part only, a new Note or Notes for the unredeemed
portion will be issued in the name of the Holder hereof upon the surrender hereof pursuant to the
terms of Section 3.02 of the Eighth Supplemental Indenture. The Notes will not have a sinking
fund.

          No reference herein to the Indenture and no provision of this Note shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the principal of and
interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed.

          If an Event of Default shall occur and be continuing under the Indenture, the principal of the
Notes may be declared due and payable in the manner, with the effect and subject to the conditions
provided in the Indenture.

24

 

          The Indenture contains provisions for defeasance of (i) the entire indebtedness of the Notes
or (ii) certain covenants and Events of Default with respect to the Notes, in each case upon
compliance with certain conditions set forth therein.

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Notes at any time by the Company and the Trustee with the consent of the Holders of a majority in
principal amount of the Outstanding Notes affected thereby. The Indenture also contains provisions
permitting the Holders of a majority in principal amount of the Outstanding Notes, on behalf of the
Holders of all such Notes, to waive compliance by the Company with certain provisions of the
Indenture. Furthermore, provisions in the Indenture permit the Holders of a majority in principal
amount of the Outstanding Notes, in certain instances, to waive, on behalf of all of the Holders of
Notes, certain past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all
future Holders of this Note and other Notes issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon
this Note.

          Prior to due presentment of this Note for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name this Note is
registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the contrary, except as
required by law.

          The Notes are issuable only in registered form without coupons in denominations of $1,000 and
any integral multiple thereof.

          As provided in the Eighth Supplemental Indenture and subject to certain limitations therein
and herein set forth, the transfer of this Note is registrable in the Security Register upon
surrender of this Note for registration of transfer at the office or agency of the Company
maintained for that purpose. Every Note presented for registration of transfer shall (if so
required by the Company or the Security Registrar) be duly endorsed, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security Registrar duly
executed, by the Holder hereof or by his or her attorney duly authorized in writing, and thereupon
one or more new Notes having the same terms and provisions, of Authorized Denominations and for the
same aggregate principal amount, will be issued by the Company to the designated transferee or
transferees. No service charge shall be made for any such registration of transfer or exchange of
this Note, provided, however, that the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection with the transfer or exchange.

          The Company shall not be required (i) to issue, register the transfer of or exchange any Notes
during a period beginning at the opening of business fifteen (15) days before the day of the
mailing of the notice of redemption pursuant to the Indenture identifying the certificate numbers
of the Notes to be called for redemption, and ending at the close of business on the day of the
mailing, or (ii) to register the transfer of or exchange any Notes theretofore

25

 

selected for redemption in whole or in part, except the unredeemed portion of any Note
redeemed in part.

     As provided in the Eighth Supplemental Indenture and subject to certain limitations therein
and herein set forth, this Note is exchangeable for a like aggregate principal amount of Notes of
different authorized denominations but otherwise having the same terms and provisions, as requested
by the Holder hereof surrendering the same.

     Notwithstanding anything to the contrary, if (x) the Depositary at any time notifies the
Company that it is unwilling or unable to continue as Depositary or if at any time the Depositary
shall no longer be a clearing agency registered under the Securities Exchange Act of 1934, as
amended, or other applicable statute or regulation, and a successor Depositary is not appointed by
the Company within sixty (60) days after the Company receives such notice or becomes aware of such
condition, or (y) the Company executes and delivers to the Trustee a Company Order to the effect
that this Note shall be exchangeable for certificates issued in definitive form (“Certificated
Notes”), this Note shall be exchangeable for Certificated Notes of like tenor and of an equal
aggregate principal amount, in authorized denominations of $1,000 and integral multiples thereof.
Such Certificated Notes shall be registered in such name or names as the Depositary, pursuant to
instructions from its direct or indirect Participants or otherwise, shall instruct the Trustee.
Unless otherwise specified in such instructions, the Trustee shall deliver such Certificated Notes
to the Persons in which names such Certificated Notes are so registered. If Certificated Notes are
so delivered, the Company may make such changes to the form of this Note as are necessary or
appropriate to allow for the issuance of such Certificated Notes.

     THE INDENTURE AND THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES.

26

 

[If not Global Security, insert —

ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face of this Note, shall be
construed as though they were written out in full according to applicable laws or regulations:

	 	 	 	 	 	 	 
	TEN COM

	 	-
	 	as tenants in common	 	 
	TEN ENT

	 	-
	 	as tenants by the entireties	 	 
	JT TEN	 	-	 	as joint tenants with right of
survivorship and not as tenants in
common
	UNIF GIFT MIN ACT

	 	-
	 	_____ Custodian ___________	 	 
	 

	 	 	 	(Cust)                        (Minor)	 	 
	 

	 	 	 	Under Uniform Gifts to Minors Act	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	(State)	 	 

Additional abbreviations may also be used though not in the above list.

27

 

ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

	 	 	 	 	 
	PLEASE INSERT SOCIAL SECURITY OR	 	 
	OTHER IDENTIFYING NUMBER OF ASSIGNEE	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

  

(Please
print or typewrite name and address including postal zip code of assignee)

  

This
Note and all rights thereunder hereby irrevocably constituting and appointing

  

Attorney
to transfer this Note on the books of the Trustee, with full power of substitution in the premises.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Notice: The signature(s) on this Assignment
must correspond with the name(s) as written
upon the face of this Note in every
particular, without alteration or enlargement
or any change whatsoever.]

28exv10w1

 

Exhibit 10.1

PRIDE INTERNATIONAL, INC.

EMPLOYMENT/NON-COMPETITION/

CONFIDENTIALITY AGREEMENT

BRIAN C. VOEGELE

 

 

EMPLOYMENT/NON-COMPETITION/CONFIDENTIALITY AGREEMENT

	 	 	 
	DATE:

	 	The date of execution set forth below.
	 
	 	 
	COMPANY/EMPLOYER:

	 	Pride International, Inc.,
	 

	 	a Delaware corporation
	 

	 	5847 San Felipe, Suite 3300
	 

	 	Houston, Texas 77057
	 
	 	 
	EMPLOYEE:

	 	Brian C. Voegele
	 

	 	2622 Pomeran Drive
	 

	 	Houston, Texas 77080

          This Employment/Non-Competition/Confidentiality Agreement by and between Pride International,
Inc. (the “Company” and as further defined below) and Brian C. Voegele (“Employee”), effective as
of the date fully executed by both parties as set forth on the signature page below (the
“Agreement”), is made on the terms as herein provided.

PREAMBLE

          WHEREAS, the Company wishes to attract and retain well-qualified employees and key personnel
and to assure itself of the continuity of its management;

          WHEREAS, the Company recognizes that Employee will serve as a valuable resource of the
Company, and the Company desires to be assured of the continued services of Employee;

          WHEREAS, the Company desires to obtain assurances that Employee will devote his best efforts
to his employment with the Company and will not enter into competition with the Company in its
business as now conducted and to be conducted, or solicit customers or other employees of the
Company to terminate their relationships with the Company;

          WHEREAS, Employee will serve as a key employee of the Company, and he acknowledges that his
talents and services to the Company are of a special, unique, unusual and extraordinary character
and are of particular and peculiar benefit and importance to the Company;

          WHEREAS, the Company is concerned that in the event of a possible or threatened Change in
Control (as defined below) of the Company, Employee may feel insecure, and therefore the Company
desires to provide security to Employee in the event of a Change in Control;

          WHEREAS, the Company further desires to assure Employee that if a possible or threatened
Change in Control should arise and Employee should be involved in deliberations or negotiations in
connection therewith, Employee would be in a secure position to consider and participate in such
transaction as objectively as possible in the best interests of the Company and

 

 

to this end desires to protect Employee from any direct or implied threat to his financial
well-being by a Change in Control;

          WHEREAS, Employee is willing to continue to serve the Company but desires assurances that in
the event of such a Change in Control he will continue to have the employment status and
responsibilities he could reasonably expect absent such event and, that in the event this turns out
not to be the case, he will have fair and reasonable severance protection on the basis of his
service to the Company to that time;

          WHEREAS, different factors impact the Company and Employee under circumstances of regular
employment between the Company and Employee when there is no threat of Change in Control and/or
none has occurred, as opposed to circumstances under which a Change in Control is rumored,
threatened, occurring or has occurred. For this reason, the Agreement deals with the regular
employment of Employee under circumstances whereby no Change in Control is threatened, occurring or
has occurred and it deals with circumstances whereby a Change in Control is threatened, occurring
or has occurred. The Agreement deals with matters impacting both regular employment and employment
following a Change in Control, including non-competition and confidentiality; and

          WHEREAS, Employee is willing to enter into and carry out the non-competition and
confidentiality obligations and covenants set forth herein in consideration of the Agreement.

AGREEMENT

          NOW, THEREFORE, Employee and the Company (together the “Parties”) agree as follows:

I. PRIOR AGREEMENTS/CONTRACTS

	 	1.01	 	PRIOR AGREEMENTS. Employee represents and warrants to the Company that (i) he
has no continuing non-competition agreements with any prior employers that have not
been disclosed in writing to the Company and (ii) neither the execution of the
Agreement by Employee or the performance by Employee of his obligations under the
Agreement will result in a violation or breach of, or constitute a default under the
provisions of any contract, agreement or other instrument to which Employee is or was a
party.

II. DEFINITION OF TERMS

Words used in the Agreement in the singular shall include the plural and in the plural the
singular, and the gender of words used shall be construed to include whichever may be
appropriate under any particular circumstances of the masculine, feminine or neuter genders.

	 	2.01	 	CAUSE. The term “Cause” means: (i) Employee’s continued failure to perform
his duties and responsibilities with the Company (other than any failure due to
physical or mental incapacity) after a demand for performance is delivered to him by
the Board of Directors which specifically identifies the manner in which the

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	 	 	 	Board believes he has not performed his duties, (ii) gross negligence or willful
misconduct which causes material injury, monetary or otherwise, to the Company or
its affiliates, or (iii) violation of one or more of the covenants in Article V
(except violation of the covenant not to compete after termination after Change in
Control as discussed herein). No act or failure to act by Employee shall be
considered “willful” unless done or omitted to be done by him not in good faith and
without reasonable belief that his action or omission was in the best interest of
the Company. The unwillingness of Employee to accept, under circumstances that give
rise to a Constructive Termination, any or all of a change in the nature or scope of
his position, authorities or duties, a reduction in his total compensation or
benefits, or other action by or at request of the Company in respect of his
position, authority, or responsibility that is contrary to the Agreement, may not be
considered by the Board of Directors to be a failure to perform or misconduct by
Employee. Notwithstanding the foregoing, Employee shall not be deemed to have been
terminated for Cause for purposes of the Agreement unless and until there shall have
been delivered to him a copy of a resolution, duly adopted by a vote of
three-fourths of the entire Board of Directors of the Company at a meeting of the
Board of Directors called and held (after reasonable notice to Employee and an
opportunity for Employee and his counsel to be heard before the Board) for the
purpose of considering whether Employee has been guilty of such a willful failure to
perform or such willful misconduct as justifies termination for Cause hereunder,
finding that in the good faith opinion of the Board of Directors Employee has been
guilty thereof and specifying the particulars thereof.
	 
	 	2.02	 	CHANGE IN CONTROL. The term “Change in Control” of the Company shall mean, and
shall be deemed to have occurred on the date of the first to occur of any of the
following:

	 	a.	 	there occurs a change in control of the Company of the nature
that would be required to be reported in response to item 6(e) of Schedule 14A
of Regulation 14A or Item 1 of Form 8(k) promulgated under the Securities
Exchange Act of 1934 as in effect on the date of the Agreement, or if neither
item remains in effect, any regulations issued by the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934 which serve similar
purposes;
	 
	 	b.	 	any “person” (as such term is used in Sections 12(d) and
14(d)(2) of the Securities Exchange Act of 1934) is or becomes a beneficial
owner, directly or indirectly, of securities of the Company representing twenty
percent (20%) or more of the total voting power of the Company’s then
outstanding securities;
	 
	 	c.	 	the individuals who were members of the Board of Directors of
the Company (the “Board”) immediately prior to a meeting of the shareholders of
the Company involving a contest for the election of directors shall not
constitute a majority of the Board of Directors following such election;

-3-

 

	 	d.	 	the Company shall have merged into or consolidated with another
corporation, or merged another corporation into the Company, on a basis whereby
less than fifty percent (50%) of the total voting power of the surviving
corporation is represented by shares held by former shareholders of the Company
prior to such merger or consolidation;
	 
	 	e.	 	the Company shall have sold, transferred or exchanged all, or
substantially all, of its assets to another corporation or other entity or
person; or
	 
	 	f.	 	a Limited Change in Control (as hereinafter defined) shall have
occurred.

	 	2.03	 	CHANGE IN CONTROL TERMINATION. The term “Change in Control Termination” shall
mean a Termination (i) within two (2) years following the date of a Change in Control
which occurs for any reason other than a Limited Change in Control or (ii) within one
(1) year following the date of a Limited Change in Control.
	 
	 	2.04	 	COMPANY. The term “Company” means Pride International, Inc., a Delaware
corporation, as the same presently exists, as well as any and all successors,
regardless of the nature of the entity or the state or nation of organization, whether
by reorganization, merger, consolidation, absorption or dissolution. For the purpose
of the Agreement, Company includes all subsidiaries and affiliates of the Company to
the extent such subsidiary and/or affiliate is carrying on any portion of the business
of the Company or a business similar to that being conducted by the Company.
	 
	 	2.05	 	CONSTRUCTIVE TERMINATION. The term “Constructive Termination” means
termination of employment by reason of Employee’s resignation for any one or more of
the following events:

	 	a.	 	Employee’s resignation or retirement is requested by the
Company other than for Cause;
	 
	 	b.	 	A significant and material diminution in Employee’s duties and
responsibilities and which diminution would degrade, embarrass or otherwise
make it unreasonable for Employee to remain in the employment of the Company;
	 
	 	c.	 	Any reduction in Employee’s total base salary or material
reduction in benefits from that provided in the Compensation and Benefits
Section hereof, unless such reduction is generally applicable to all similarly
situated executives of the Company;
	 
	 	d.	 	The material breach by the Company of any other provision of
the Agreement;
	 
	 	e.	 	Any requirement of the Company that Employee relocate more than
50 miles from downtown Houston, Texas; or

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	 	f.	 	Notice by the Company of non-renewal of the Agreement contrary
to the wishes of Employee.

	 	 	 	Notwithstanding any provision to the contrary, in order for Employee’s resignation
to be deemed a Constructive Termination, (A) Employee must provide a written notice
to the Company that Employee intends to terminate his employment with the Company
within 60 days following the occurrence of the event that Employee claims
constitutes a Constructive Termination; (B) the written notice must describe the
event constituting the Constructive Termination in reasonable detail and (C) within
30 days after receiving such notice from Employee, the Company must fail to
reinstate Employee to the position he was in, or otherwise cure the circumstances
giving rise to the Constructive Termination.
	 
	 	2.06	 	CUSTOMER. The term “Customer” includes all persons, firms or entities that are
purchasers or end-users of services or products offered, provided, developed, designed,
sold or leased by the Company during the relevant time periods, and all persons, firms
or entities which control, or which are controlled by, the same person, firm or entity
which controls such purchase.
	 
	 	2.07	 	DISABILITY. The term “Disability” means physical or mental incapacity
qualifying Employee for a long-term disability under the Company’s long-term disability
plan. If no such plan exists on the Employment Date, the term “Disability” means
physical or mental incapacity as determined by a doctor jointly selected by Employee
(or Employee’s representative legally authorized to act on Employee’s behalf) and the
Board of Directors of the Company qualifying Employee for long-term disability under
reasonable employment standards.
	 
	 	2.08	 	EMPLOYMENT DATE. The Employee’s initial date of active employment, which shall
be within ten (10) business days after, but not before, the Company is current in its
periodic filing requirements under the Securities Exchange Act of 1934, as amended.
	 
	 	2.09	 	LIMITED CHANGE IN CONTROL. The term “Limited Change in Control” of the Company
shall mean, and shall be deemed to have occurred on, the date the Company shall have
merged into or consolidated with another corporation, or merged another corporation
into the Company, on a basis whereby at least fifty percent (50%) but not more than
eighty percent (80%) of the total voting power of the surviving corporation is
represented by shares held by former shareholders of the Company immediately prior to
such merger or consolidation.
	 
	 	2.10	 	TERMINATION. The term “Termination” shall mean termination of the employment
of Employee with the Company (including by reason of death, Disability and Constructive
Termination) for any reason other than (i) Cause or (ii) Voluntary Resignation.
Notwithstanding any provision hereof to the contrary, the Company shall have the right
to terminate Employee’s employment at any time during the Employment Period, as defined
below (including any extended term), and the Company has no obligation to deliver
advance notice of

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	 	 	 	termination, except such notice as is otherwise required for a termination for Cause
under Section 2.01.
	 
	 	2.11	 	VOLUNTARY RESIGNATION. The term “Voluntary Resignation” means termination of
employment with the Company by Employee for any reason other than death, Disability or
a Constructive Termination.

III. EMPLOYMENT

	 	3.01	 	EMPLOYMENT. Except as otherwise provided in the Agreement, the Company hereby
agrees to continue Employee in its employ, and Employee hereby agrees to remain in the
employ of the Company, for the Employment Period (as defined below). During the
Employment Period, Employee shall exercise such position and authority and perform such
responsibilities as are commensurate with the position to which he is assigned and as
directed by his supervisor. The office, position and title for which Employee is
initially employed is that of Senior Vice President and Chief Financial Officer of the
Company. Employee and the Company agree that the Company may re-assign Employee to
another office, position and/or title, subject to Employee’s rights under Section 2.05
of the Agreement.
	 
	 	3.02	 	BEST EFFORTS AND OTHER EMPLOYMENT OBLIGATIONS OF EMPLOYEE; BUSINESS EXPENSES
AND OFFICE AND OTHER SERVICES.

	 	a.	 	Employee agrees that he will at all times faithfully,
industriously and to the best of his ability, experience and talents, perform
all of the duties that may be required of and from him pursuant to the express
and implicit terms hereof, to the reasonable satisfaction of the Company.
	 
	 	b.	 	Employee shall devote his normal and regular business time,
attention and skill to the business and interests of the Company, and the
Company shall be entitled to all of the benefits, profits or other issue
arising from or incident to all work, services and advice of Employee performed
for the Company. Such employment shall be considered “full time” employment.
Employee shall also have the right to devote such incidental and immaterial
amounts of his time which are not required for the full and faithful
performance of his duties hereunder to any outside activities and businesses
which are not being engaged in by the Company and which shall not otherwise
interfere with the performance of his duties hereunder. Notwithstanding the
foregoing, it shall not be a violation of the Agreement for Employee to (i)
serve on corporate, civic or charitable boards or committees, (ii) deliver
lectures, fulfill speaking engagements or teach at educational institutions and
(iii) manage personal investments, so long as such activities do not
significantly interfere with the performance of Employee’s responsibilities
hereunder. Employee shall have the right to

-6-

 

	 	 	 	make investments in any business provided such investment does not result in
a violation of the Non-Competition Section of the Agreement.
	 
	 	c.	 	Employee acknowledges and agrees that Employee owes a fiduciary
duty to the Company. In keeping with these duties, Employee shall make full
disclosure to the Company of all business opportunities pertaining to the
Company’s business and shall not appropriate for Employee’s own benefit
business opportunities concerning the subject matter of the fiduciary
relationship.
	 
	 	d.	 	Employee shall not intentionally take any action which he knows
would not comply with the laws of the United States or any other jurisdiction
applicable to Employee’s actions on behalf of the Company, and/or any of its
subsidiaries or affiliates, including specifically, without limitation, the
United States Foreign Corrupt Practices Act, generally codified in 15 USC 78
(the “FCPA”), as the FCPA may hereafter be amended, and/or its successor
statutes.
	 
	 	e.	 	During the employment relationship and after the employment
relationship terminates, Employee agrees to refrain from any disparaging
comments about the Company, any affiliates, or any current or former officer,
director or employee of the Company or any affiliate, and Employee agrees not
to take any action, or assist any person in taking any other action, that is
materially adverse to the interests of the Company or any affiliate or
inconsistent with fostering the goodwill of the Company and its affiliates;
provided, however, that nothing in the Agreement shall apply to or restrict in
any way the communication of information by Employee to any state or federal
law enforcement agency or require notice to the Company thereof, and Employee
will not be in breach of the covenant contained above solely by reason of his
testimony which is compelled by process of law. The Company and its
affiliates, officers and directors agree to refrain from any disparaging
comments about Employee; provided, however, that nothing in the Agreement shall
apply to or restrict in any way the communication of information by the Company
and its affiliates, officers and directors to any state or federal law
enforcement agency or require notice to Employee thereof, and the Company and
its affiliates, officers and directors will not be in breach of the covenant
contained above solely by reason of testimony which is compelled by process of
law.
	 
	 	f.	 	During the Employment Period, Employee shall be entitled to
receive prompt reimbursement for all reasonable expenses incurred by Employee
in accordance with the most favorable policies, practices and procedures of the
Company as in effect from time to time.
	 
	 	g.	 	During the Employment Period, the Company shall furnish
Employee with office space, secretarial assistance and such other facilities
and services as

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	 	 	 	shall be suitable to Employee’s position and adequate for the performance of
Employee’s duties hereunder.

	 	3.03	 	TERM OF EMPLOYMENT. Employee’s employment will commence on the Employment Date
and will be for a term ending at 12:00 o’clock midnight on the second anniversary of
the Employment Date (the “Employment Period”); thereafter, the Employment Period will
be automatically extended for successive terms of one (1) year commencing on each
anniversary of the Employment Date; provided, however, that the Company or Employee may
give written notice to the other that the Agreement will not be renewed or continued
after the next scheduled expiration date which is not less than one (1) year after the
date that the notice of non-renewal was given. Immediately upon termination of
employment with the Company, Employee agrees to resign from all officer and director
positions held with the Company and its affiliates.
	 
	 	3.04	 	COMPENSATION AND BENEFITS. During the Employment Period Employee shall receive
the following compensation and benefits:

	 	a.	 	Employee will receive an annual base salary of not less than
$350,000.00, with the opportunity for increases, from time to time thereafter,
which are in accordance with the Company’s regular executive compensation
practices (the “Annual Base Salary”). The Annual Base Salary will be reviewed
at least annually, but in no event earlier than July 2006.
	 
	 	b.	 	Subject to the Company’s discretion, Employee will be eligible
to participate on a reasonable basis in annual bonus (as more fully described
below) and other incentive compensation plans which provide opportunities to
receive compensation in addition to his Annual Base Salary. For the 2006
calendar year Employee will be eligible to participate in the Company’s annual
incentive plan at a target award level of no less than 60% of Annual Base
Salary and at a maximum bonus award level of no less than 120% of Annual Base
Salary. Employee will be entitled to participate in employee welfare and
qualified plans (including, but not limited to, medical, life, health, accident
and disability insurance and disability benefits) and to receive perquisites
which are offered by the Company in its exclusive discretion. Without limiting
the Company’s discretion with respect to the provision of benefits, it is
specifically understood and agreed that nothing in this Agreement entitles
Employee to participate in the Company’s Supplemental Executive Retirement
Plan.
	 
	 	c.	 	Employee will receive no fewer than twenty (20) paid vacation
days each year.
	 
	 	d.	 	Employee shall receive a monthly automobile allowance in an
amount not less than $750.00.

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	 	e.	 	Employee shall receive a lump-sum cash sign-on bonus in the
amount of $200,000, payable within fifteen (15) days of the commencement of the
Employment Period. In the event Employee shall cease employment due to
Voluntary Resignation (other than a voluntary resignation under Section 4.03
hereof) or termination for Cause during the initial two-year Employment Period,
Employee agrees to repay to the Company, immediately upon such cessation of
employment, a pro-rata portion of the payment provided under this Section
3.04e, which shall be determined by multiplying $200,000 by a fraction, the
numerator of which shall be the number days during the Employment Period which
have elapsed as of the date of Employee’s termination and the denominator of
which shall be 730. The Company shall have the right to apply any compensation
payable to Employee on or following the date of cessation of employment toward
the satisfaction of this obligation, and Employee consents to such right of
set-off.
	 
	 	f.	 	Subject to the approval of the Compensation Committee of the
Company, as soon as practicable on or after the Employment Date Employee shall
receive an award of a non-qualified option to acquire up to 37,500 shares of
common stock of Pride International, Inc. (“Common Stock”), in accordance with
the terms of the 1998 Long Term Incentive Plan (the “LTIP”) and the Company’s
customary option award terms thereunder (attached as Exhibit A hereto). The
exercise price of the option awarded pursuant to this Section 3.04f shall be
the fair market value of the Common Stock on the date the option award is
approved by the Compensation Committee.
	 
	 	g.	 	Subject to the approval of the Compensation Committee of the
Company, as soon as practicable on or after the Employment Date Employee shall
be awarded 10,000 shares of restricted stock pursuant to the LTIP. The
restricted stock will be subject to the terms and provisions of the Company’s
customary restricted stock awards (attached as Exhibit B hereto).
	 
	 	h.	 	The option to acquire Common Stock and the restricted stock
award in Sections 3.04f and 3.04g, respectively, (collectively, the “Equity
Grants”) shall be considered a part of Employee’s participation in the LTIP for
the 2006 calendar year. To the extent that the shares of Common Stock
underlying the Equity Grants are less than the shares for such awards granted
to similarly situated Senior Vice Presidents of the Company in the normal
course during calendar year 2006, Employee shall receive additional options to
acquire Common Stock and/or awards of restricted stock, as applicable, such
that the aggregate of Employee’s Equity Grants and stock option and restricted
stock awards granted in calendar year 2006 are commensurate with such awards
granted to similarly situated Senior Vice Presidents of the Company.

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	 	3.05	 	TERMINATION WITHOUT CHANGE IN CONTROL. Notwithstanding anything herein to the
contrary, the Company shall have the right to terminate Employee’s employment at any
time during the Employment Period, as defined in Section 3.03 (including any extended
term). In the event of any Termination, as defined in Section 2.10, if the Termination
does not entitle Employee to payments and benefits under Article IV, the Company shall,
within thirty (30) days following such Termination (subject to Section 6.04) and in
exchange for a full and complete release of claims against the Company, its affiliates,
officers and directors (“Release”), pay or provide to Employee (or his Executor,
Administrator or Estate in the event of death, as soon as reasonably practical):

	 	a.	 	An amount equal to one (1) full year of his base salary, which
base salary is here defined as twelve (12) times the then current monthly
salary in effect for Employee and all other benefits due him based upon the
salary in effect on the date of Termination (but not less than the highest
annual base salary paid to Employee during any of the three (3) years
immediately preceding his date of Termination). There shall be deducted only
such amounts as may be required by law to be withheld for taxes and other
applicable deductions.
	 
	 	b.	 	The Company shall provide to Employee for a period of one (1)
full year following the date of his Termination, life, health, accident and
disability insurance coverages which are not less than the highest benefits
furnished to Employee during the term of the Agreement.
	 
	 	c.	 	An amount equal to the target award for Employee under the
Company’s annual bonus plan for the fiscal year in which Termination occurs;
provided, however, that (i) if Employee has deferred his award for such year
under a Company plan, the payment due Employee under this subparagraph shall be
paid in accordance with the terms of the deferral and (ii) if the Company has
not specified a target award for such year, the amount will be equal to fifty
percent (50%) of the maximum percentage of Employee’s Annual Base Salary
Employee may be entitled to under the Company’s annual bonus plan in such year.
	 
	 	d.	 	The “Compensation and Benefits” Section hereof shall be
applicable in determining the payments and benefits due Employee under this
Section and if Termination occurs after a reduction in all or part of
Employee’s total compensation or benefits, the lump sum severance allowance and
other compensation and benefits payable to him pursuant to this Section shall
be based upon his compensation and benefits before the reduction.
	 
	 	e.	 	All life, health, hospitalization, medical and accident
benefits available to Employee’s spouse and dependents shall continue for the
same term as Employee’s benefits. If Employee dies, all benefits will be
provided for a term of one (1) year (or two (2) years if Article IV applies)
after the date of death of Employee.

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	 	f.	 	The Company’s obligation under this Section to continue to pay
or provide health care, life, accident and disability insurance to Employee,
Employee’s spouse and Employee’s dependents shall be reduced when and to the
extent any such benefits are paid or provided to Employee by another employer;
provided, however, that Employee shall have all rights, if any, afforded to
retirees to convert group life insurance coverage to the individual life
insurance coverage as, to the extent of, and whenever his group life insurance
coverage under this Section is reduced or expires. Apart from this
subparagraph, Employee shall have and be subject to no obligation to mitigate.
	 
	 	g.	 	The Company shall deduct applicable withholding taxes in
performing its obligations under this Section.

A sample form of Release is attached as Exhibit C. Employee acknowledges that the Company
retains the right to modify the required form of the Release as the Company deems necessary
in order to effectuate a full and complete release of claims against the Company, its
affiliates, officers and directors and to delay payment until timely execution of the
Release without revocation.

In the event of Employee’s Termination without a Change in Control, Employee is entitled
only to the termination payments and benefits described in this Section 3.05. To the extent
the Company’s performance under this Section includes the performance of the Company’s
obligations to Employee under any other plan or under another agreement between the Company
and Employee, the rights of Employee under such other plan or other agreement, which are
discharged under the Agreement, are discharged, surrendered, or released pro tanto.

IV. CHANGE IN CONTROL

	 	4.01	 	EXTENSION OF EMPLOYMENT PERIOD. The Employment Period shall be immediately and
without further action extended for a term of two (2) years following the effective
date of the Change in Control and will expire at 12:00 o’clock midnight on the last day
of the month following two (2) years after the Change in Control; provided, however,
that if the Change in Control is solely on account of a Limited Change in Control, the
Employment Period shall be extended for one (1) year following the effective date of
the Limited Change in Control. Thereafter, the Employment Period will be extended for
successive terms of one (1) year each, unless terminated, all in the manner specified
in Section 3.03.
	 
	 	4.02	 	CHANGE IN CONTROL TERMINATION PAYMENTS AND BENEFITS. In the event Employee has
a Change in Control Termination, Employee will receive the payments and benefits
specified in the “Termination Without Change in Control” Section at the same time and
in the same manner therein specified except as amended and modified below:

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	 	a.	 	The salary and benefits specified in Section 3.05a. will be
paid based upon a multiple of two (2) years (instead of one (1) year).
	 
	 	b.	 	Life, health, accident and disability insurance specified in
Section 3.05b. will be provided until (i) Employee becomes reemployed and
receives similar benefits from a new employer or (ii) two (2) years after the
date of a Change in Control Termination, whichever is earlier.
	 
	 	c.	 	An amount equal to two (2) times the maximum award that
Employee could receive under the Company’s annual bonus plan for the fiscal
year in which the Change in Control Termination occurs, instead of the benefits
provided in Section 3.05c hereof.
	 
	 	d.	 	All other rights and benefits specified in Section 3.05.

In the event of Employee’s Change in Control Termination or resignation under Section 4.03,
Employee is entitled only to the termination payments and benefits described in this Section
4.02.

	 	4.03	 	VOLUNTARY RESIGNATION UPON CHANGE IN CONTROL. If Employee voluntarily resigns
his employment within six (6) months after a Change in Control which does not
constitute a Limited Change in Control (whether or not the Company may be alleging the
right to terminate employment for Cause), he will receive the same payments,
compensation and benefits as if he had had a Change in Control Termination on the date
of resignation after Change in Control.

V. NON COMPETITION AND PROTECTION OF CONFIDENTIAL INFORMATION

	 	5.01	 	CONSIDERATION. Employee recognizes and agrees that all of the businesses in
which the Company is engaged are highly competitive and that the Company’s trade
secrets and other confidential information, along with personal contacts, are of
critical importance in securing and maintaining business prospects, in retaining the
accounts and goodwill of present Customers and protecting the business of the Company.

	 	a.	 	Employee, therefore, agrees that in exchange for the Company
providing and continuing to provide trade secrets and other confidential
information, Employee agrees to the non-competition and confidentiality
obligations and covenants outlined in this Article V and that absent his
agreement to these obligations and covenants, the Company will not now provide
and will not continue to provide him with trade secrets and other confidential
information.
	 
	 	b.	 	In addition to the consideration described in Section 5.01a,
the parties agree that (i) fifteen percent (15%) of Employee’s base salary and
bonus, if any, paid and to be paid to Employee and (ii) one hundred percent
(100%) of the payments and benefits, including Employee’s right to receive the
same, under Sections 3.05 and 4.02, as applicable, shall

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	 	 	 	constitute additional consideration for the non-competition and
confidentiality agreements set forth herein.

	 	5.02	 	NON-COMPETITION. In exchange for the consideration described above in Section
5.01, Employee agrees that during his employment with the Company and for a period of
twelve (12) months after he is no longer employed by the Company (unless his employment
is terminated after a Change in Control with the right to payments and benefits under
Article IV, in which event there will be no covenant not to compete and the noncompete
covenants and obligations herein will terminate on the date of termination of
Employee), Employee will not, directly or indirectly, either as an individual,
proprietor, stockholder (other than as a holder of up to one percent (1%) of the
outstanding shares of a corporation whose shares are listed on a stock exchange or
traded in accordance with the automated quotation system of the National Association of
Securities Dealers), partner, officer, employee or otherwise:

	 	a.	 	work for, become an employee of, invest in, provide consulting
services to or in any way engage in any business which (i) is primarily engaged
in the drilling and workover of oil and gas wells within the geographical area
described in Section 5.02(e) and (ii) actually competes with the Company;
provided, however, that Employee may request that the Company waive the
restrictions of this Section 5.02(a) such that Employee may perform consulting
services, which request and waiver the Company may consider in its sole
discretion; or
	 
	 	b.	 	provide, sell, offer to sell, lease, offer to lease, or solicit
any orders for any products or services which the Company provided and with
regard to which Employee had direct or indirect supervision or control, within
one (1) year preceding Employee’s termination of employment, to or from any
person, firm or entity which was a Customer for such products or services of
the Company during the one (1) year preceding such termination from whom the
Company had solicited business during such one (1) year; or
	 
	 	c.	 	actively solicit, aid, counsel or encourage any officer,
director, employee or other individual to (i) leave his or her employment or
position with the Company, (ii) compete with the business of the Company, or
(iii) violate the terms of any employment, non-competition or similar agreement
with the Company; or
	 
	 	d.	 	directly or indirectly (i) influence the employment of, or
engagement in any contract for services or work to be performed by, or (ii)
otherwise use, utilize or benefit from the services of any officer, director,
employee or any other individual holding a position with the Company within two
(2) years after the date of termination of employment of Employee with the
Company or within two (2) years after such officer, director, employee or
individual terminated employment with the Company, whichever period expires
earlier; provided however, Employee can seek written consent

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	 	 	 	from the Company to hire an officer, director, employee or individual who
has terminated employment with the Company, and Company consent will not be
unreasonably withheld.

The geographical area within which the non-competition obligations and covenants of the
Agreement shall apply is that territory within two hundred (200) miles of (i) any of the
Company’s present offices, (ii) any of the Company’s present rig yards or rig operations and
(iii) any additional location where the Company, as of the date of any action taken in
violation of the non-competition obligations and covenants of the Agreement, has an office,
a rig yard, a rig operation or definitive plans to locate an office, a rig operation or a
rig yard or has recently conducted rig operations. Notwithstanding the foregoing, if the
two hundred (200) mile radius extends into another country or its territorial waters and the
Company is not then doing business in that other country, there will be no territorial
limitations extending into such other country.

	 	5.03	 	CONFIDENTIALITY/PROTECTION OF INFORMATION. Employee acknowledges that his
employment with the Company has in the past and will, of necessity, continue to provide
him with specialized knowledge which, if used in competition with the Company, or
divulged to others, could cause serious harm to the Company. Accordingly, Employee
will not at any time during or after his employment by the Company, directly or
indirectly, divulge, disclose, use or communicate to any person, firm or corporation in
any manner whatsoever any information concerning any matter specifically affecting or
relating to the Company or the business of the Company. While engaged as an employee
of the Company, Employee may only use information concerning any matters affecting or
relating to the Company or the business of the Company for a purpose which is necessary
to the carrying out of Employee’s duties as an employee of the Company, and Employee
may not make any use of any information of the Company after he is no longer an
employee of the Company. Employee agrees to the foregoing without regard to whether
all of the foregoing matters will be deemed confidential, material or important, it
being stipulated by the parties that all information, whether written or otherwise,
regarding the Company’s business, including, but not limited to, information regarding
Customers, Customer lists, costs, prices, earnings, products, services, formulae,
compositions, machines, equipment, apparatus, systems, manufacturing procedures,
operations, potential acquisitions, new location plans, prospective and executed
contracts and other business plans and arrangements, and sources of supply, is prima
facie presumed to be important, material and confidential information of the Company
for the purposes of the Agreement, except to the extent that such information may be
otherwise lawfully and readily available to the general public. Employee further
agrees that he will, upon termination of his employment with the Company, return to the
Company all books, records, lists and other written, electronic, typed or printed
materials, whether furnished by the Company or prepared by Employee, which contain any
information relating to the Company’s business, and Employee agrees that he will
neither make nor retain any copies of such materials after termination of employment.
Notwithstanding any of the foregoing, nothing in the

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	 	 	 	Agreement shall prevent Employee from complying with applicable federal and/or state
laws.
	 
	 	5.04	 	COMPANY REMEDIES FOR VIOLATION OF NON-COMPETITION OR CONFIDENTIALITY/PROTECTION
OF INFORMATION PROVISIONS. Without limiting the right of the Company to pursue all
other legal and equitable rights available to it for violation of any of the
obligations and covenants made by Employee herein, it is expressly agreed that:

	 	a.	 	the terms and provisions of this Agreement are reasonable and
constitute an otherwise enforceable agreement to which the provisions of this
Article V are ancillary or a part of as contemplated by TEX. BUS. & COM. CODE
ANN. Sections 15.50-15.52;
	 
	 	b.	 	the consideration provided by the Company under this Agreement
is not illusory;
	 
	 	c.	 	the consideration given by the Company under this Agreement,
including, without limitation, the provision and continued provision by the
Company of trade secrets and other confidential information to Employee, gives
rise to the Company’s interest in restraining and prohibiting Employee from
engaging in the unfair competition prohibited by Section 5.02 and Employee’s
promise not to engage in the unfair competition prohibited by Section 5.02 is
designed to enforce Employee’s consideration (or return promises), including,
without limitation, Employee’s promise to not use or disclose confidential
information or trade secrets; and
	 
	 	d.	 	the injury suffered by the Company by a violation of any
obligation or covenant in this Article V of the Agreement will be difficult to
calculate in damages in an action at law and cannot fully compensate the
Company for any violation of any obligation or covenant in this Article V of
the Agreement, accordingly:

	 	(i)	 	the Company shall be entitled to injunctive
relief without the posting of a bond or other security to prevent
violations thereof and to prevent Employee from rendering any services
to any person, firm or entity in breach of such obligation or covenant
and to prevent Employee from divulging any confidential information;
and
	 
	 	(ii)	 	compliance with the Agreement is a condition
precedent to the Company’s obligation to make payments of any nature to
Employee, subject to the other provisions hereof.

	 	5.05	 	TERMINATION OF BENEFITS FOR VIOLATION OF NON-COMPETITION AND
CONFIDENTIALITY/PROTECTION OF INFORMATION PROVISIONS. If Employee materially violates
the confidentiality/protection of information and/or non-competition obligations and
covenants herein or any other related agreement

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	 	 	 	he may have signed as an employee of the Company, Employee agrees there shall be no
obligation on the part of the Company to provide any payments or benefits (other
than payments or benefits already earned or accrued) described in Section 3.05 of
the Agreement, subject to the provision of Section 6.01 hereof. If Employee is
terminated after a Change in Control with the right to payments and benefits under
Article IV, there will be no withholding of benefits or payments due to a violation
of the non-competition obligations hereof and Employee will not be bound by the
non-competition provisions hereof.
	 
	 	5.06	 	REFORMATION OF SCOPE. If the provisions of the confidentiality and/or
non-competition obligations and covenants should ever be deemed to exceed the time,
geographic or occupational limitations permitted by the applicable law, Employee and
the Company agree that such provisions shall be and are hereby reformed to the maximum
time, geographic or occupational limitations permitted by the applicable law, and the
determination of whether Employee violated such obligation and covenant will be based
solely on the limitation as reformed.
	 
	 	5.07	 	RETURN OF CONSIDERATION. Employee specifically recognizes and affirms that the
non-competition obligations set out in Section 5.02 are material and important terms of
this Agreement, and Employee further agrees that should all or any part of the
non-competition obligations described in Section 5.02 be held or found invalid or
unenforceable for any reason whatsoever by a court of competent jurisdiction in a legal
proceeding between Employee and the Company, the Company shall be entitled to the
immediate return and receipt from Employee of all consideration described in Section
5.01b, including interest on all amounts paid to Employee under Section 5.01b at the
maximum lawful rate.

VI. GENERAL

	 	6.01	 	INDEMNIFICATION. If Employee shall obtain any money award or otherwise prevail
with respect to any litigation brought by Employee or the Company to enforce or
interpret any provision of the Agreement, the Company, to the fullest extent permitted
by applicable law, hereby indemnifies Employee for his reasonable attorney’s fees and
disbursements incurred in such litigation and hereby agrees to pay in full all such
fees and disbursements up to a maximum of two hundred fifty thousand dollars ($250,000)
in connection with such litigation.
	 
	 	6.02	 	INCOME, EXCISE OR OTHER TAX LIABILITY. Employee will be liable for and will
pay all income tax liability by virtue of any payments made to Employee under the
Agreement, as if the same were earned and paid in the normal course of business and not
the result of a Change in Control and not otherwise triggered by the “golden parachute”
or excess payment provisions of the Internal Revenue Code of the United States, which
would cause additional tax liability to be imposed. If any additional income tax,
excise or other taxes are imposed on any amount or payment in the nature of
compensation paid or provided to or on behalf of Employee, the Company shall “gross-up”
Employee for such tax liability by paying to Employee an amount sufficient so that
after payment of all such taxes

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	 	 	 	so imposed, Employee’s position on an after-tax basis is what it would have been had
no such additional taxes been imposed. Employee will cooperate with the Company to
minimize the tax consequences to Employee and to the Company so long as the actions
proposed to be taken by the Company do not cause any additional tax consequences to
Employee and do not prolong or delay the time that payments are to be made, or
reduce the amount of payments to be made, unless Employee consents in writing to any
delay or deferment of payment.
	 
	 	6.03	 	PAYMENT OF BENEFITS UPON TERMINATION FOR CAUSE. If the termination of Employee
is not after a Change in Control and is for Cause, the Company will have the right to
withhold all payments other than (i) what is accrued and owing under the terms of any
employee benefit plan maintained by the Company, and (ii) those specified in Section
6.01; provided however, that if a final judgment is entered finding that Cause did not
exist for termination, the Company will pay all benefits to Employee to which he would
have been entitled had Employee’s termination not been for Cause, plus interest on all
amounts withheld from Employee at the rate specified for judgments under Article
5069-1.05 V.A.T.S. but not less than ten percent (10%) per annum. If the termination
for Cause occurs within two (2) years after a Change in Control (other than a Limited
Change in Control) or within one (1) year after a Limited Change in Control, the
Company shall not have the right to suspend or withhold payments to Employee under any
provision of the Agreement until or unless a final judgment is entered upholding the
Company’s determination that the termination was for Cause, in which event Employee
will be liable to the Company for all amounts paid, plus interest at the rate allowed
for judgments under Article 5069-1.05 V.A.T.S.
	 
	 	6.04	 	SECTION 409A. Notwithstanding any provision of the Agreement to the contrary,
the following provisions shall apply for purposes of complying with Section 409A of the
Internal Revenue Code and applicable Treasury authorities (“Section 409A”):

	 	a.	 	If Employee is a “specified employee,” as such term is defined
in Section 409A and determined as described below in this Section 6.04, any
payments payable as a result of Employee’s Termination (other than death or
Disability) shall not be payable before the earlier of (i) the date that is six
months after Employee’s Termination, (ii) the date of Employee’s death, or
(iii) the date that otherwise complies with the requirements of Section 409A.
This Section 6.04a shall be applied by accumulating all payments that otherwise
would have been paid within six months of Employee’s Termination and paying
such accumulated amounts at the earliest date which complies with the
requirements of Section 409A. Employee shall be a “specified employee” for the
twelve-month period beginning on April 1 of a year if Employee is a “key
employee” as defined in Section 416(i) of the Internal Revenue Code (without
regard to Section 416(i)(5)) as of December 31 of the preceding year.

-17-

 

	 	b.	 	If any provision of the Agreement would result in the
imposition of an applicable tax under Section 409A, Employee and the Company
agree that such provision will be reformed to avoid imposition of the
applicable tax and no action taken to comply with Section 409A shall be deemed
to adversely affect Employee’s rights or benefits hereunder.

	 	6.05	 	NON-EXCLUSIVE AGREEMENT. The specific arrangements referred to herein are not
intended to exclude or limit Employee’s participation in other benefits available to
Employee or personnel of the Company generally, or to preclude or limit other
compensation or benefits as may be authorized by the Board of Directors of the Company
at any time, or to limit or reduce any compensation or benefits to which Employee would
be entitled but for the Agreement.
	 
	 	6.06	 	NOTICES. Notices, requests, demands and other communications provided for by
the Agreement shall be in writing and shall either be personally delivered by hand or
sent by: (i) Registered or Certified Mail, Return Receipt Requested, postage prepaid,
properly packaged, addressed and deposited in the United States Postal System; (ii) via
facsimile transmission if the receiver acknowledges receipt; or (iii) via Federal
Express or other expedited delivery service provided that acknowledgment of receipt is
received and retained by the deliverer and furnished to the sender, if to Employee, at
the last address he has filed, in writing, with the Company, or if to the Company, to
its Corporate Secretary at its principal executive offices.
	 
	 	6.07	 	NON-ALIENATION. Employee shall not have any right to pledge, hypothecate,
anticipate, or in any way create a lien upon any amounts provided under the Agreement,
and no payments or benefits due hereunder shall be assignable in anticipation of
payment either by voluntary or involuntary acts or by operation of law. So long as
Employee lives, no person, other than the parties hereto, shall have any rights under
or interest in the Agreement or the subject matter hereof. Upon the death of Employee,
his beneficiary designated under Section 6.09 or, if none, his executors,
administrators, devisees and heirs, in that order, shall have the right to enforce the
provisions hereof, to the extent applicable.
	 
	 	6.08	 	ENTIRE AGREEMENT; AMENDMENT. Except as otherwise expressly set forth herein,
the Agreement constitutes the entire agreement of the Parties with respect of the
subject matter hereof. No provision of the Agreement may be amended, waived, or
discharged except by the mutual written agreement of the Parties. The consent of any
other person(s) to any such amendment, waiver or discharge shall not be required. This
Agreement specifically supersedes the offer letter from the Company to Employee dated
October 28, 2005.
	 
	 	6.09	 	SUCCESSORS AND ASSIGNS. The Agreement shall be binding upon and inure to the
benefit of the Company, its successors and assigns, by operation of law or otherwise,
including, without limitation, any corporation or other entity or persons which shall
succeed (whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets

-18-

 

	 	 	 	of the Company, and the Company will require any successor, by agreement in form and
substance satisfactory to Employee, expressly to assume and agree to perform the
Agreement. Except as otherwise provided herein, the Agreement shall be binding upon
and inure to the benefit of Employee and his legal representatives, heirs and
assigns; provided, however, that in the event of Employee’s death prior to payment
or distribution of all amounts, distributions and benefits due him hereunder, if
any, each such unpaid amount and distribution shall be paid in accordance with the
Agreement to the person or persons designated by Employee to the Company to receive
such payment or distribution and in the event Employee has made no applicable
designation, to his estate. If the Company should split, divide or otherwise become
more than one entity, all liability and obligations of the Company shall be the
joint and several liability and obligation of all of the parts, unless the Agreement
is assigned in accordance with this Section.
	 
	 	6.10	 	GOVERNING LAW. Except to the extent required to be governed by the laws of the
State of Delaware because the Company is incorporated under the laws of said State, the
validity, interpretation and enforcement of the Agreement shall be governed by the laws
of the State of Texas.
	 
	 	6.11	 	VENUE. To the extent permitted by applicable state or federal law, venue for
all proceedings hereunder will be in the U.S. District Court for the Southern District
of Texas, Houston Division.
	 
	 	6.12	 	HEADINGS. The headings in the Agreement are inserted for convenience of
reference only and shall not affect the meaning or interpretation of the Agreement.
	 
	 	6.13	 	SEVERABILITY; PARTIAL INVALIDITY. In the event that any provision, portion or
section of the Agreement is found to be invalid or unenforceable for any reason, the
remaining provisions of the Agreement shall be unaffected thereby, shall remain in full
force and effect and shall be binding upon the parties hereto, and the Agreement will
be construed to give meaning to the remaining provisions of the Agreement in accordance
with the intent of the Agreement.
	 
	 	6.14	 	COUNTERPARTS. The Agreement may be executed in one or more counterparts, each
of which shall be deemed to be original, but all of which together constitute one and
the same instrument.
	 
	 	6.15	 	NO WAIVER. Employee’s or the Company’s failure to insist upon strict
compliance with any provision of the Agreement or the failure to assert any right
Employee or the Company may have hereunder, shall not be deemed to be a waiver of such
provision or right or any other provision or right of the Agreement.

-19-

 

     IN WITNESS WHEREOF, Employee has hereunto set his hand and, pursuant to the authorization from
its Board of Directors and the Compensation Committee of such Board of Directors, the Company has
caused these presents to be executed in its name and on its behalf.

     EXECUTED in multiple originals and/or counterparts as of the date set forth below.

	 	 	 	 	 	 
	 	 	/s/ Brian C. Voegele
	 	 	 
	 	 	Brian C. Voegele
	 
	 	 	 	 
	 	 	Date: November 21, 2005
	 
	 	 	 	 
	ATTEST:	 	PRIDE INTERNATIONAL, INC.
	 
	 	 	 	 
	/s/ W. Gregory Looser

	 	By:
	 	/s/ Louis A. Raspino
	 

	 	 	 	 
	W. Gregory Looser

	 	 	 	Louis A. Raspino
	Secretary

	 	 	 	President and Chief Executive Officer
	 
	 	 	 	 
	 	 	Date: November 21, 2005

-20-

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