Document:

exv10w6

 

Exhibit 10.6

June 28, 2007

	 	 	 
	To:

	 	Parker Drilling Company
	 

	 	1401 Enclave Parkway, Suite 600
	 

	 	Houston, Texas 77077
	 

	 	Attn: General Counsel

Telephone: (281) 406-2000
	 

	 	Facsimile: (281) 406-2001
	 
	 	 
	From:

	 	Lehman Brothers Inc., acting as Agent
	 

	 	Lehman Brothers OTC Derivatives Inc., acting as Principal
	 

	 	c/o Lehman Brothers
	 

	 	745 Seventh Avenue
	 

	 	New York, NY 10019
	 

	 	Attn: Andrew Yare – Transaction Management Group
	 

	 	Facsimile:         646-885-9546 (United States of America)
	 

	 	Telephone:        212-526-9986
	 
	 	 
	Re:

	 	Issuer Warrant Transaction
	 

	 	(Transaction Reference Number:                    )

Ladies and Gentlemen:

     The purpose of this communication (this “Confirmation”) is to set forth the terms and
conditions of the above-referenced transaction entered into on the Trade Date specified below (the
“Transaction”) between Lehman Brothers OTC Derivatives Inc., acting as Principal (“Lehman”) and
Parker Drilling Company (“Issuer”). This communication constitutes a “Confirmation” as referred to
in the ISDA Master Agreement specified below. This Confirmation is sent on behalf of both Lehman
and Lehman Brothers Inc., acting as Agent (“LBI”). Lehman Brothers OTC Derivatives Inc. is not a
member of the Securities Investor Protection Corporation.

     1. This Confirmation is subject to, and incorporates, the definitions and provisions of the
2000 ISDA Definitions (including the Annex thereto) (the “2000 Definitions”) and the definitions
and provisions of the 2002 ISDA Equity Derivatives Definitions (except to the extent expressly
amended by this Confirmation) (the “Equity Definitions”, and together with the 2000 Definitions,
the “Definitions”), in each case as published by the International Swaps and Derivatives
Association, Inc. and as in effect on the date hereof (“ISDA”). In the event of any inconsistency
between the 2000 Definitions and the Equity Definitions, the Equity Definitions will govern. For
purposes of the Equity Definitions, each reference herein to a Warrant shall be deemed to be a
reference to a Call Option or an Option, as context requires.

     This Confirmation evidences a complete and binding agreement between Lehman and Issuer as to
the terms of the Transaction to which this Confirmation relates. This Confirmation shall be
subject to an agreement (the “Agreement”) in the form of the 2002 ISDA Master Agreement (the “ISDA
Form”) as if Lehman and Issuer had executed an agreement in such form (without any Schedule but
with the elections set forth in this Confirmation, except to the extent amended, modified or
supplemented by this Confirmation). For the avoidance of doubt, the Transaction shall be the only
transaction under the Agreement.

 

 

     All provisions contained in, or incorporated by reference to, the Agreement will govern this
Confirmation except as expressly modified herein. In the event of any inconsistency between this
Confirmation and either the Definitions or the Agreement, this Confirmation shall govern.

     2. The Transaction is a Warrant Transaction, which shall be considered a Share Option
Transaction for purposes of the Equity Definitions. The terms of the particular Transaction to
which this Confirmation relates are as follows:

	 	 	 
	General Terms:
	 	 
	 
	 	 
	Agent:

	 	LBI is acting as agent on behalf of Lehman and Issuer for the
Transaction. LBI has no obligations, by guarantee,
endorsement or otherwise, with respect
to the performance of the Transaction by either party.
	 
	 	 
	Trade Date:

	 	June 28, 2007
	 
	 	 
	Effective Date:

	 	July 5, 2007, subject to Section 8(o) below
	 
	 	 
	Components:

	 	The Transaction will be divided into individual Components, each with the terms
set forth in this Confirmation, and, in particular, with the Number of Warrants and
Expiration Date set forth in this Confirmation. The payments and deliveries to be made
upon settlement of the Transaction will be determined separately for each Component as
if each Component were a separate Transaction under the Agreement.
	 
	 	 
	Warrant Style:

	 	European
	 
	 	 
	Warrant Type:

	 	Call
	 
	 	 
	Seller:

	 	Issuer
	 
	 	 
	Buyer:

	 	Lehman
	 
	 	 
	Shares:

	 	The Common Stock of Issuer, par value USD 0.162/3 per share (Ticker Symbol: “PKD”).
	 
	 	 
	Number of Warrants:

	 	For each Component, as provided in Annex A to this Confirmation.
	 
	 	 
	Warrant Entitlement:

	 	One Share per Warrant
	 
	 	 
	Strike Price:

	 	USD 18.2875
	 
	 	 
	Premium:

	 	USD 1,863,000
	 
	 	 
	Premium Payment Date:

	 	The Effective Date
	 
	 	 
	Exchange:

	 	New York Stock Exchange

2

 

	 	 	 
	Related Exchange:

	 	All Exchanges
	 
	 	 
	Procedures for Exercise:
	 	 
	 
	 	 
	Expiration Time:

	 	Valuation Time
	 
	 	 
	Expiration Date:

	 	As provided in Annex A to this Confirmation (or, if such date is not a
Scheduled Trading Day, the next following Scheduled Trading Day that is not already an
Expiration Date for another Component); provided that if that date is a Disrupted Day,
the Expiration Date for such Component shall be the first succeeding Scheduled Trading
Day that is not a Disrupted Day and is not or is not deemed to be an Expiration Date in
respect of any other Component of the Transaction hereunder; and provided further that
if the Expiration Date has not occurred pursuant to the preceding proviso as of the
Final Disruption Date, the Final Disruption Date shall be the Expiration Date
(irrespective of whether such date is an Expiration Date occurring on the Final
Disruption Date in respect of any other Component for the Transaction) and,
notwithstanding anything to the contrary in this Confirmation or the Definitions, the
Relevant Price for the Expiration Date shall be the prevailing market value per Share
determined by the Calculation Agent, upon prior written notice to Issuer, and good
faith and in a commercially reasonable manner. “Final Disruption Date” means March 6,
2013. Notwithstanding the foregoing and anything to the contrary in the Equity
Definitions, if a Market Disruption Event occurs on any Expiration Date, the
Calculation Agent may determine that such Expiration Date is a Disrupted Day only in
part, in which case the Calculation Agent shall make commercially reasonable
adjustments to the number of Warrants for the relevant Component for which such day
shall be the Expiration Date and shall designate the Scheduled Trading Day determined
in the manner described in the immediately preceding sentence as the Expiration Date
for the remaining Warrants for such Component. Section 6.6 of the Equity Definitions
shall not apply to any Valuation Date occurring on an Expiration Date.
	 
	 	 
	Market Disruption Event:

	 	Section 6.3(a) of the Equity Definitions is hereby amended by (A)
adding the term “reasonably” before the term “determines” in clause (ii) thereof and
(B) deleting the words “during the one hour period that ends at the relevant Valuation
Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the
case may be,” in clause (ii) thereof.

3

 

	 	 	 
	Automatic Exercise:

	 	Applicable; and means that each Warrant not previously exercised under
the Transaction will be deemed to be automatically exercised at the Expiration Time on
the Expiration Date unless Lehman notifies Seller (by telephone or in writing) prior to
the Expiration Time on the Expiration Date that it does not wish Automatic Exercise to
occur, in which case Automatic Exercise will not apply.
	 
	 	 
	Issuer’s Telephone Number
and Telex and/or Facsimile
Number and Contact Details
for purpose of Giving Notice:

	 	To be provided by Issuer.
	 
	 	 
	Settlement Terms:
	 	 
	 
	 	 
	In respect of any Component:
	 	 
	 
	 	 
	Settlement Currency:

	 	USD
	 
	 	 
	Net Share Settlement:

	 	On each Settlement Date, Issuer shall deliver to Lehman a
number of Shares equal to the Number of Shares to be Delivered for such Settlement Date
to the account specified by Lehman and cash in lieu of any fractional shares valued at
the Relevant Price on the Valuation Date corresponding to such Settlement Date.
	 
	 	 
	Number of Shares to be
Delivered:

	 	In respect of any Exercise Date, subject to the last sentence of Section 9.5 of
the Equity Definitions, the product of (i) the number of Warrants exercised or deemed
exercised on such Exercise Date, (ii) the Warrant Entitlement and (iii) (A) the excess
of the VWAP Price on the Valuation Date occurring on such Exercise Date over the Strike
Price divided by (B) such VWAP Price.
	 
	 	 
	 

	 	The Number of Shares to be Delivered shall be
delivered by Issuer to Lehman no later than
5:00 P.M. (local time in New York City) on the
relevant Settlement Date.
	 
	 	 
	VWAP Price:

	 	For any Valuation Date, the Rule 10b-18 dollar volume weighted average
price per Share for such Valuation Date based on transactions executed during such
Valuation Date, as reported on Bloomberg Page “PKD.N <Equity> AQR SEC” (or any
equivalent successor thereto, if such page is not available) or, in the event such
price is not so reported on such Valuation Date for any reason, as reasonably
determined by the Calculation Agent using a volume-weighted method.

4

 

	 	 	 
	Other Applicable Provisions:

	 	The provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11
(except that the Representation and Agreement contained in Section 9.11 (i), (iv) and
(v) of the Equity Definitions shall be modified by excluding any representations
therein relating to restrictions, obligations, limitations or requirements under
applicable securities laws as a result of the fact that Issuer is the issuer of the
Shares) and 9.12 of the Equity Definitions will be applicable, except that all
references in such provisions to “Physically-Settled” shall be read as references to
“Net Share Settled”. “Net Share Settled” in relation to any Warrant means that Net
Share Settlement is applicable to such Warrant.
	 
	 	 
	Adjustments:
	 	 
	 
	 	 
	In respect of any Component:
	 	 
	 
	 	 
	Method of Adjustment:

	 	Calculation Agent Adjustment
	 
	 	 
	Extraordinary Dividend:

	 	Any cash dividend or distribution on the Shares with an ex-dividend
date occurring on or after the Trade Date and on or prior to the Expiration Date.
	 
	 	 
	Extraordinary Dividend Adjustment:

	 	If at any time during the period from and including the
Trade Date, to but excluding the last Expiration Date, an ex-dividend date for an
Extraordinary Dividend occurs, then the Calculation Agent will upon prior written
notice to Issuer make commercially reasonable adjustments to the Strike Price, the
Number of Warrants, the Warrant Entitlement and/or any other variable relevant to the
exercise, settlement, payment or other terms of the Transaction to preserve the fair
value of the Transaction to Lehman after taking into account such Extraordinary
Dividend.
	 
	 	 
	Extraordinary Events:
	 	 
	 
	 	 
	Consequences of Merger Events:
	 	 
	 
	 	 
	(a) Share-for-Share:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	(b) Share-for-Other:

	 	Cancellation and Payment (Calculation Agent
Determination)
	 
	 	 
	(c) Share-for-Combined:

	 	Cancellation and Payment (Calculation Agent
Determination)
	 
	 	 
	Tender Offer:

	 	Applicable

5

 

	 	 	 
	Consequences of Tender Offers:
	 	 
	 
	 	 
	(a) Share-for-Share:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	(b) Share-for-Other:

	 	Cancellation and Payment (Calculation Agent
Determination) on that portion of the Other Consideration that consists of cash;
Modified Calculation Agent Adjustment on the remainder of the Other Consideration.
	 
	 	 
	(c) Share-for-Combined:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	Nationalization, Insolvency 

or Delisting:

	 	Cancellation and Payment (Calculation Agent Determination); provided
that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions,
it shall also constitute a Delisting if the Exchange is located in the United States
and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New
York Stock Exchange, the American Stock Exchange, The NASDAQ Global Market or The
Nasdaq Global Select Market (or their respective successors); if the Shares are
immediately re-listed, re-traded or re-quoted on any such exchange or quotation system,
such exchange or quotation system shall thereafter be deemed to be the Exchange;
provided further that, in determining any Cancellation Amount, notwithstanding any term
or provision in the Agreement or the Equity Definitions, the Calculation Agent shall
comply with the terms and provisions set forth in Section 8(p)(iii) of this
Confirmation.
	 
	 	 
	Additional Disruption Events:
	 	 
	 
	 	 
	(a) Change in Law:

	 	Applicable (provided that clause (y) of this term set
forth in Section 12.9(a)(ii) of the Equity Definitions shall not apply)
	 
	 	 
	(b) Failure to Deliver:

	 	Applicable
	 
	 	 
	(c) Insolvency Filing:

	 	Applicable
	 
	 	 
	(d) Hedging Disruption:

	 	Applicable
	 
	 	 
	(e) Increased Cost of Hedging:

	 	Applicable
	 
	 	 
	(f) Loss of Stock Borrow:

	 	Applicable
	 
	 	 
	Maximum Stock Loan Rate:

	 	 2.00% 
	 
	 	 
	(g) Increased Cost of Stock
Borrow:

	 	Applicable
	 
	 	 
	Initial Stock Loan Rate:

	 	 0.25% 

6

 

	 	 	 
	Hedging Party:

	 	Lehman for all applicable Additional Disruption Events
	 
	 	 
	Determining Party:

	 	Lehman for all applicable Extraordinary Events
	 
	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	Agreements and Acknowledgments
	 	 
	Regarding Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgments:

	 	Applicable

     3. Calculation Agent: LBI; provided that all calculations, determinations and
adjustments made by LBI in respect of this Transaction as Calculation Agent shall be made in good
faith and in a commercially reasonable manner.

     4. Account Details:

	 	 	 	 	 
	 

	 	Lehman Payment Instructions:
	 	JPMorgan Chase Bank
	 

	 	 	 	Swift Code: CHASUS33XXX
	 

	 	 	 	ABA: 021000021
	 

	 	 	 	Account Name: Lehman Brothers OTC Derivatives
	 

	 	 	 	Account No.: 066626277
	 
	 	 	 	 
	 

	 	Issuer Payment Instructions:
	 	To be provided by Issuer.

     5. Offices:

The Office of Lehman for the Transaction is:

Lehman Brothers OTC Derivatives Inc.

c/o Lehman Brothers

745 Seventh Avenue

New York, NY 10019

Attn: Andrew Yare – Transaction Management Group

Facsimile:       646-885-9546 (United States of America)

Telephone:     212-526-9986

     The Office of Issuer for the Transaction is:

Parker Drilling Company

1401 Enclave Parkway, Suite 600

Houston, Texas 77077

Attn: General Counsel

Telephone:       (281) 406-2000

Facsimile:         (281) 406-2001

     6. Notices: For purposes of this Confirmation:

7

 

     (a) Address for notices or communications to Issuer:

	 	 	 	 	 
	 

	 	To:
	 	Parker Drilling Company
	 

	 	 	 	1401 Enclave Parkway, Suite 600
	 

	 	 	 	Houston, Texas 77077
	 

	 	Attn:
	 	General Counsel
	 

	 	Telephone:
	 	(281) 406-2000
	 

	 	Facsimile:
	 	(281) 406-2001

     (b) Address for notices or communications to Lehman:

To be provided by Lehman

     7. Representations, Warranties and Agreements:

	 	(a)	 	In addition to the representations and warranties in the Agreement and those
contained elsewhere herein, Issuer represents and warrants to and for the benefit of,
and agrees with, Lehman as follows:

	 	(i)	 	On the Trade Date, (A) none of Issuer and its officers and
directors is aware of any material nonpublic information regarding Issuer or
the Shares and (B) all reports and other documents filed by Issuer with the
Securities and Exchange Commission pursuant to the Exchange Act when considered
as a whole (with the more recent such reports and documents deemed to amend
inconsistent statements contained in any earlier such reports and documents),
do not contain any untrue statement of a material fact or any omission of a
material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances in which they were made, not
misleading.
	 
	 	(ii)	 	Without limiting the generality of Section 13.1 of the Equity
Definitions, Issuer acknowledges that Lehman is not making any representations
or warranties with respect to the treatment of the Transaction under FASB
Statements 133, as amended, or 150, EITF Issue No. 00-19 (or any successor
issue statements) or under FASB’s Liabilities & Equity Project.
	 
	 	(iii)	 	Prior to the Trade Date, Issuer shall deliver to Lehman a
resolution of Issuer’s board of directors authorizing the Transaction and such
other certificate or certificates as Lehman shall reasonably request.
	 
	 	(iv)	 	Issuer is not entering into this Confirmation to create actual
or apparent trading activity in the Shares (or any security convertible into or
exchangeable for Shares) in violation of the Exchange Act or to raise or
depress or otherwise manipulate the price of the Shares (or any security
convertible into or exchangeable for Shares) in violation of the Exchange Act.
	 
	 	(v)	 	On any Expiration Date, Issuer shall not, and shall cause its
affiliates and affiliated purchasers (each as defined in Rule 10b-18) not to,
directly or indirectly (including, without limitation, by means of a
cash-settled or other derivative instrument) purchase,

8

 

	 		 	offer to purchase, place any bid or limit order that would effect a purchase
of, or commence any tender offer relating to, any Shares (or an equivalent
interest, including a unit of beneficial interest in a trust or limited
partnership or a depository share) or any security convertible into or
exchangeable for Shares on any Expiration Date.
	 
	 	(vi)	 	Issuer is not, and after giving effect to the transactions
contemplated hereby will not be, an “investment company” as such term is
defined in the Investment Company Act of 1940, as amended.
	 
	 	(vii)	 	On the Trade Date (A) the assets of Issuer at their fair
valuation exceed the liabilities of Issuer, including contingent liabilities,
(B) the capital of Issuer is adequate to conduct the business of Issuer and (C)
Issuer has the ability to pay its debts and obligations as such debts mature
and does not intend to, or does not believe that it will, incur debt beyond its
ability to pay as such debts mature.
	 
	 	(viii)	 	Issuer shall not take any action to decrease the number of Available Shares
below the Capped Number (each as defined below).
	 
	 	(ix)	 	Issuer understands no obligations of Lehman to it hereunder
will be entitled to the benefit of deposit insurance and that such obligations
will not be guaranteed by any affiliate of Lehman or any governmental agency.

	 	(b)	 	Each of Lehman and Issuer agrees and represents that it is an “eligible
contract participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act,
as amended.
	 
	 	(c)	 	Each of Lehman and Issuer acknowledges that the offer and sale of the
Transaction to it is intended to be exempt from registration under the Securities Act
of 1933, as amended (the “Securities Act”), by virtue of Section 4(2) thereof.
Accordingly, Lehman represents and warrants to Issuer that (i) it has the financial
ability to bear the economic risk of its investment in the Transaction and is able to
bear a total loss of its investment, (ii) it is an “accredited investor” as that term
is defined in Regulation D as promulgated under the Securities Act, (iii) it is
entering into the Transaction for its own account without a view to the distribution or
resale thereof and (iv) the assignment, transfer or other disposition of the
Transaction has not been and will not be registered under the Securities Act and is
restricted under this Confirmation, the Securities Act and state securities laws.
	 
	 	(d)	 	Each of Lehman and Issuer agrees and acknowledges that Lehman is a “swap
participant” and “financial participant”, and that Issuer is a “swap participant”, in
each case within the meaning of Sections 101(53C) and 101(22A) of Title 11 of the
United States Code (the “Bankruptcy Code”). The parties hereto further agree and
acknowledge (A) that this Confirmation is (i) a “securities contract,” as such term is
defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment
and delivery hereunder is a “settlement payment,” as such term is defined in Section
741(8) of the Bankruptcy Code, and (ii) a “swap agreement,” as such term is defined in
Section 101(53B) of the Bankruptcy Code, with respect to which each payment and
delivery hereunder is a “transfer,” as such term is defined in Section 101(54) of the
Bankruptcy Code, and (B) that Lehman is entitled to the protections afforded by, among
other sections, Section 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the
Bankruptcy Code.

9

 

	 	(e)	 	Issuer shall deliver to Lehman an opinion of counsel, dated as of the Effective
Date and reasonably acceptable to Lehman in form and substance, with respect to the
matters set forth in Section 3(a) of the Agreement.
	 
	 	8.	 	Other Provisions:
	 
	 	(a)	 	Alternative Calculations and Payment on Early Termination and on Certain
Extraordinary Events. If, subject to Section 8(l) below, Issuer shall owe Lehman any
amount pursuant to Sections 12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions
(except in the event of an Insolvency, a Nationalization, a Tender Offer or a Merger
Event, in each case, in which the consideration or proceeds to be paid to holders of
Shares consists solely of cash) or pursuant to Section 6(d)(ii) of the Agreement
(except in the event of an Event of Default in which Issuer is the Defaulting Party or
a Termination Event in which Issuer is the Affected Party, that resulted from an event
or events within Issuer’s control) (a “Payment Obligation”), Issuer shall have the
right, in its sole discretion, to satisfy any such Payment Obligation by the Share
Termination Alternative (as defined below) by giving irrevocable telephonic notice to
Lehman, confirmed in writing within one Scheduled Trading Day, between the hours of
9:00 A.M. and 4:00 P.M. New York City time on the Merger Date, Tender Offer Date,
Announcement Date or Early Termination Date, as applicable (“Notice of Share
Termination”). Upon such Notice of Share Termination, the following provisions shall
apply on the Scheduled Trading Day immediately following the Merger Date, the Tender
Offer Date, Announcement Date or Early Termination Date, as applicable:

	 	 	 
	Share Termination Alternative:

	 	Applicable and means that Issuer shall
deliver to Lehman the Share Termination
Delivery Property on the date on which
the Payment Obligation would otherwise be
due pursuant to Section 12.7 or 12.9 of
the Equity Definitions or Section
6(d)(ii) of the Agreement, as applicable
(the “Share Termination Payment Date”),
in satisfaction of the Payment
Obligation.
	 
	 	 
	Share Termination Delivery
Property:

	 	A number of Share Termination Delivery
Units, as calculated by the Calculation
Agent, equal to the Payment Obligation
divided by the Share Termination Unit
Price. The Calculation Agent shall
adjust the Share Termination Delivery
Property by replacing any fractional
portion of a security therein with an
amount of cash equal to the value of such
fractional security based on the values
used to calculate the Share Termination
Unit Price.
	 
	 	 
	Share Termination Unit Price:

	 	The value of property contained in one
Share Termination Delivery Unit on the
date such Share Termination Delivery
Units are to be delivered as Share
Termination Delivery Property, as
determined by the Calculation Agent in
its discretion by commercially reasonable
means and notified by the Calculation
Agent to Issuer at the time of
notification of the Payment Obligation.
	 
	 	 
	Share Termination Delivery Unit:

	 	In the case of a Termination Event, Event
of Default or Delisting, one Share or, in
the case of an Insolvency,
Nationalization, Merger Event or Tender
Offer, a unit consisting of the number or
amount of each type of property received
by a holder of one Share (without
consideration of any requirement to pay
cash or other consideration in lieu of
fractional amounts of any securities) in
such Insolvency, Nationalization, Merger
Event or Tender Offer. If such
Insolvency, Nationalization, Merger
Event or Tender Offer involves a choice of consideration to be received

10

 

	 	 	 
	 

	 	by
holders, such holder shall be deemed to have elected to receive the maximum
possible amount of cash.
	 
	 	 
	Failure to Deliver:

	 	Applicable
	 
	 	 
	Other applicable provisions:

	 	If Share Termination Alternative is
applicable, the provisions of Sections 9.8,
9.9, 9.10, 9.11 (except that the
Representation and Agreement contained in
Section 9.11 of the Equity Definitions shall
be modified by excluding any representations
therein relating to restrictions,
obligations, limitations or requirements
under applicable securities laws as a result
of the fact that Seller is the Issuer of the
Shares) and 9.12 of the Equity Definitions
will be applicable, except that all
references in such provisions to
“Physically-Settled” shall be read as
references to “settled by Share Termination
Alternative” and all references to “Shares”
shall be read as references to “Share
Termination Delivery Units”.

	 	(b)	 	Registration/Private Placement Procedures. (i) If, in the commercially
reasonable judgment of Lehman acting in good faith, for any reason, any Shares or any
securities of Issuer or its affiliates comprising any Share Termination Delivery Units
deliverable to Lehman hereunder (any such Shares or securities, “Delivered Securities”)
would not be immediately freely transferable by Lehman under Rule 144(k) under the
Securities Act of 1933, as amended (the “Securities Act”), then the provisions set
forth in this Section 8(b) shall apply. At the election of Issuer by notice to Lehman
within one Exchange Business Day after the relevant delivery obligation arises, but in
any event at least one Exchange Business Day prior to the date on which such delivery
obligation is due, either (A) all Delivered Securities delivered by Issuer to Lehman
shall be, at the time of such delivery, covered by an effective registration statement
of Issuer for immediate resale by Lehman (such registration statement and the
corresponding prospectus (the “Prospectus”) (including, without limitation, any
sections describing the plan of distribution) in form and content commercially
reasonably satisfactory to Lehman) or (B) Issuer shall deliver additional Delivered
Securities so that the value of such Delivered Securities, as determined by the
Calculation Agent in good faith and upon prior written notice to Issuer, to reflect a
commercially reasonable liquidity discount, equals the value of the number of
Delivered Securities that would otherwise be deliverable if such Delivered Securities
were freely tradeable (without prospectus delivery) upon receipt by Lehman (such value,
the “Freely Tradeable Value”); provided that Issuer may not make the election described
in this clause (B) if, on the date of its election, it has taken, or caused to be
taken, any action that would make unavailable either the exemption pursuant to Section
4(2) of the Securities Act for the delivery by Issuer to Lehman (or any affiliate
designated by Lehman) of the Delivered Securities or the exemption pursuant to Section
4(1) or Section 4(3) of the Securities Act for resales of the Delivered Securities by
Lehman (or any such affiliate of Lehman). (For the avoidance of doubt, as used in this
paragraph (b) only, the term “Issuer” shall mean the issuer of the relevant securities,
as the context shall require.)

	 	(ii)	 	If Issuer makes the election described in clause (b)(i)(A)
above:

	 	(A)	 	Lehman (or an Affiliate of Lehman designated by
Lehman) shall be afforded a reasonable opportunity to conduct a due
diligence investigation with respect to Issuer that is customary in
scope for underwritten offerings of equity securities and that yields
results that are commercially reasonably satisfactory to Lehman or such
Affiliate, as the case may be, in its discretion; and

11

 

	 	(B)	 	Lehman (or an Affiliate of Lehman designated by
Lehman) and Issuer shall enter into an agreement (a “Registration
Agreement”) on commercially reasonable terms in connection with the
public resale of such Delivered Securities by Lehman or such Affiliate
substantially similar to underwriting agreements customary for
underwritten offerings of equity securities, in form and substance
commercially reasonably satisfactory to Lehman or such Affiliate and
Issuer, which Registration Agreement shall include, without limitation,
provisions substantially similar to those contained in such
underwriting agreements relating to the indemnification of, and
contribution in connection with the liability of, Lehman and its
Affiliates and Issuer, shall provide for the payment by Issuer of all
reasonable expenses incurred thereby in connection with such resale,
including all registration costs and all reasonable fees and expenses
of counsel for Lehman, and shall provide for the delivery of
accountants’ “comfort letters” to Lehman or such Affiliate with respect
to the financial statements and certain financial information contained
in or incorporated by reference into the Prospectus.

	 	(iii)	 	If Issuer makes the election described in clause (b)(i)(B)
above:

	 	(A)	 	all Delivered Securities shall be delivered to
Lehman (or any Affiliate of Lehman designated by Lehman) pursuant to
the exemption from the registration requirements of the Securities Act
provided by Section 4(2) thereof;
	 
	 	(B)	 	Lehman (or an Affiliate of Lehman designated by
Lehman) and any potential institutional purchaser of any such Delivered
Securities from Lehman or such Affiliate identified by Lehman shall be
afforded a commercially reasonable opportunity to conduct a due
diligence investigation in compliance with applicable law with respect
to Issuer customary in scope for private placements of equity
securities (including, without limitation, the right to have made
available to them for inspection all financial and other records,
pertinent corporate documents and other information reasonably
requested by them);
	 
	 	(C)	 	Lehman (or an Affiliate of Lehman designated by
Lehman) and Issuer shall enter into an agreement (a “Private Placement
Agreement”) on commercially reasonable terms in connection with the
private placement of such Delivered Securities by Issuer to Lehman or
such Affiliate and the private resale of such shares by Lehman or such
Affiliate, substantially similar to private placement purchase
agreements customary for private placements of equity securities, in
form and substance commercially reasonably satisfactory to Lehman and
Issuer, which Private Placement Agreement shall include, without
limitation, provisions substantially similar to those contained in such
private placement purchase agreements relating to the indemnification
of, and contribution in connection with the liability of, Lehman and
its Affiliates and Issuer, shall provide for the payment by Issuer of
all expenses in connection with such resale, including all fees and
expenses of counsel for Lehman, shall contain representations,
warranties and agreements of Issuer reasonably necessary or advisable
to establish and maintain the availability of an exemption from the
registration requirements of the Securities Act for such resales, and
shall use best efforts to provide for the delivery of accountants’
“comfort letters” to Lehman or such Affiliate with respect to the
financial statements and certain financial

12

 

	 	 	 	information contained in or incorporated by reference into the
offering memorandum prepared for the resale of such Shares; and
	 
	 	(D)	 	Issuer agrees that any Delivered Securities so
delivered to Lehman, (i) may be transferred by and among Lehman and its
Affiliates, and Issuer shall effect such transfer without any further
action by Lehman and (ii) after the minimum “holding period” within the
meaning of Rule 144(d) under the Securities Act has elapsed with
respect to such Delivered Securities, Issuer shall promptly remove, or
cause the transfer agent for such Shares or securities to remove, any
legends referring to any such restrictions or requirements from such
Delivered Securities upon delivery by Lehman (or such Affiliate of
Lehman) to Issuer or such transfer agent of seller’s and broker’s
representation letters customarily delivered by Lehman in connection
with resales of restricted securities pursuant to Rule 144 under the
Securities Act, without any further requirement for the delivery of any
certificate, consent, agreement, opinion of counsel, notice or any
other document, any transfer tax stamps or payment of any other amount
or any other action by Lehman (or such affiliate of Lehman), in each
case except to the extent reasonably requested by Issuer following a
change in the Securities Act or rules, regulations or the SEC’s
interpretations thereunder and to the extent necessary to ensure
compliance by Issuer or Lehman with applicable securities laws.

	 	(iv)	 	For the avoidance of doubt (and notwithstanding anything
herein, in the Agreement or otherwise to the contrary), Issuer may deliver
Delivered Securities which are unregistered under the Securities Act.

	 	(c)	 	Make-whole. If Issuer makes the election described in clause (b)(i)(B) of
paragraph (b) of this Section 8, then Lehman or its affiliate may sell such Shares or
Share Termination Delivery Units, as the case may be, during a period (the “Resale
Period”) commencing on the Exchange Business Day following delivery of such Shares or
Share Termination Delivery Units, as the case may be, and ending on the Exchange
Business Day on which Lehman completes the sale of all such Shares or Share Termination
Delivery Units, as the case may be, or a sufficient number of Shares or Share
Termination Delivery Units, as the case may be, so that the realized net proceeds of
such sales exceed the Freely Tradeable Value (such amount of the Freely Tradeable
Value, the “Required Proceeds”). Lehman shall in the case of any such sale use its best
efforts acting in good faith so as to complete any such sale as expeditiously as
possible and to obtain an amount or amounts which equal or exceed the Required
Proceeds. If any of such delivered Shares or Share Termination Delivery Units remain
after such realized net proceeds exceed the Required Proceeds, Lehman shall return such
remaining Shares or Share Termination Delivery Units to Issuer. If the Required
Proceeds exceed the realized net proceeds from such resale, Issuer shall transfer to
Lehman by the open of the regular trading session on the Exchange on the Exchange
Trading Day immediately following the last day of the Resale Period the amount of such
excess (the “Additional Amount”) in cash or in a number of additional Shares
(“Make-whole Shares”) in an amount that, based on the Relevant Price on the last day of
the Resale Period (as if such day was the “Valuation Date” for purposes of computing
such Relevant Price), has a dollar value equal to the Additional Amount; and provided
that the Issuer shall determine, in its sole discretion, whether to deliver cash or
such Make-whole Shares. The Resale Period shall continue to enable the sale of the
Make-whole Shares in the manner contemplated by this Section 8(c). This provision
shall be applied successively until the Additional Amount is equal to zero, subject to
Section 8(e).

13

 

	 	(d)	 	Beneficial Ownership. Notwithstanding anything to the contrary in the Agreement
or this Confirmation, in no event shall Lehman be entitled to receive, or shall be
deemed to receive, any Shares if, upon such receipt of such Shares, the “beneficial
ownership” (within the meaning of Section 13 of the Exchange Act and the rules
promulgated thereunder) of Shares by Lehman or any entity that directly or indirectly
controls Lehman (collectively, “Buyer Group”) would be equal to or greater than 9% or
more of the outstanding Shares. If any delivery owed to Lehman hereunder is not made,
in whole or in part, as a result of this provision, Issuer’s obligation to make such
delivery shall not be extinguished and Issuer shall make such delivery as promptly as
practicable after, but in no event later than one Exchange Business Day after, Lehman
gives notice to Issuer that such delivery would not result in Buyer Group directly or
indirectly so beneficially owning in excess of 9% of the outstanding Shares.
	 
	 	(e)	 	Limitations on Settlement by Issuer. Notwithstanding anything herein or in the
Agreement to the contrary, in no event shall Issuer be required to deliver Shares in
connection with the Transaction in excess of 1,661,099 Shares (the “Capped Number”), as
such number may be adjusted for Share splits or Share combinations. Issuer represents
and warrants (which shall be deemed to be repeated on each day that the Transaction is
outstanding) that the Capped Number is equal to or less than the number of authorized
but unissued Shares of the Issuer that are not reserved for future issuance in
connection with transactions in the Shares (other than the Transaction) on the date of
the determination of the Capped Number (such Shares, the “Available Shares”). In the
event Issuer shall not have delivered the full number of Shares otherwise deliverable
as a result of this Section 8(e) (the resulting deficit, the “Deficit Shares”), Issuer
shall be continually obligated to deliver, from time to time until the full number of
Deficit Shares have been delivered pursuant to this paragraph, Shares when, and to the
extent, that (i) Shares are repurchased, acquired or otherwise received by Issuer or
any of its subsidiaries after the Trade Date (whether or not in exchange for cash, fair
value or any other consideration), (ii) authorized and unissued Shares reserved for
issuance in respect of other transactions prior to such date which prior to the
relevant date become no longer so reserved and (iii) Issuer additionally authorizes and
unissued Shares that are not reserved for other transactions. Issuer shall immediately
notify Lehman of the occurrence of any of the foregoing events (including the number of
Shares subject to clause (i), (ii) or (iii) and the corresponding number of Shares to
be delivered) and promptly deliver such Shares thereafter.
	 
	 	(f)	 	Right to Extend. Lehman may postpone any Exercise Date or any other date of
valuation or delivery with respect to some or all of the relevant Warrants (in which
event the Calculation Agent shall make appropriate adjustments to the Number of Shares
to be Delivered with respect to one or more Components), if Lehman determines, in its
reasonable discretion, and with the prior written consent of Issuer (such consent not
to be unreasonably withheld) that such extension is reasonably necessary or appropriate
to preserve Lehman’s hedging or hedge unwind activity hereunder in light of existing
liquidity conditions or to enable Lehman to effect purchases of Shares in connection
with its hedging, hedge unwind or settlement activity hereunder in a manner that would,
if Lehman were Issuer or an affiliated purchaser of Issuer, be in compliance with
applicable legal, regulatory or self-regulatory requirements, or with related policies
and procedures applicable to Lehman.
	 
	 	(g)	 	Equity Rights. Lehman acknowledges and agrees that this Confirmation is not
intended to convey to it rights with respect to the Transaction that are senior to the
claims of common stockholders in the event of Issuer’s bankruptcy. For the avoidance
of doubt, the parties agree that the preceding sentence shall not apply at any time
other than during Issuer’s bankruptcy to any claim arising as a result of a breach by
Issuer of any of its obligations under this Confirmation or the Agreement. For the
avoidance of doubt, the parties acknowledge that this Confirmation is not secured by
any collateral that would otherwise secure the obligations of Issuer herein under or
pursuant to any other agreement.

14

 

	 	(h)	 	Amendments to Equity Definitions and the Agreement. The following amendments
shall be made to the Equity Definitions and to the Agreement:

	 	(i)	 	The first sentence of Section 11.2(c) of the Equity
Definitions, prior to clause (A) thereof, is hereby amended to read as follows:
‘(c) If “Calculation Agent Adjustment” is specified as the Method of Adjustment
in the related Confirmation of a Share Option Transaction, then following the
announcement or occurrence of any Potential Adjustment Event, the Calculation
Agent will determine whether such Potential Adjustment Event has a dilutive or
concentrative effect on the theoretical value of the relevant Shares or options
on the Shares and, if so, will (i) make appropriate adjustment(s), if any, to
any one or more of:’ and, the portion of such sentence immediately preceding
clause (ii) thereof is hereby amended by deleting the words “diluting or
concentrative” and the words “(provided that no adjustments will be made to
account solely for changes in volatility, expected dividends, stock loan rate
or liquidity relative to the relevant Shares)” and replacing such latter
phrase with the words “(and, for the avoidance of doubt, adjustments may be
made to account solely for changes in volatility, Extraordinary Dividends
(within the meaning of this Confirmation) or liquidity relative to the relevant
Shares)”;
	 
	 	(ii)	 	Section 12.6(a)(ii) of the Equity Definitions is hereby amended
by (1) deleting from the fourth line thereof the word “or” after the word
“official” and inserting a comma therefor, and (2) deleting the semi-colon at
the end of subsection (B) thereof and inserting the following words therefor
“or (C) at Lehman’s option, the occurrence of any of the events specified in
Section 5(a)(vii) (1) through (9) of the ISDA Master Agreement with respect to
that Issuer’s”
	 
	 	(iii)	 	Section 12.9(b) of the Equity Definitions is hereby amended by
(1) replacing the word “two” with “three” in the third line of clause (i),
fourth to last line of clause (ii), third line of clause (iii), eighth line of
clause (iv), fourth line of clause (v) and fifth line of clause (vi) and (2)
replacing the word “second” with “third” in the ninth and tenth lines of clause
(vi).

	 	(i)	 	Agreement in Respect of Termination Amounts. Notwithstanding any term or
provision in this Confirmation, the Equity Definitions or the Agreement, but without
limiting Section 8(p)(iii) of this Confirmation, in determining any amounts payable in
respect of the termination or cancellation of the Transaction pursuant to Section 6 of
the Agreement or Article 12 of the Equity Definitions, the Calculation Agent shall
make such determination without regard to (i) changes to costs of funding, stock loan
rates or expected dividends, or (ii) losses or costs incurred in connection with
terminating, liquidating or reestablishing any hedge related to the Transaction (or any
gain resulting from any of them).
	 
	 	(j)	 	Transfer and Assignment. Lehman may transfer or assign its rights and
obligations hereunder and under the Agreement, (i) in whole or in part, at any time to
any person or entity whatsoever with the consent of Issuer, provided that such consent
will not be unreasonably withheld or (ii) to any affiliate of Lehman that is guaranteed
by Lehman Brothers Holdings Inc.
	 
	 	(k)	 	Disclosure. Effective from the date of commencement of discussions concerning
the Transaction, Issuer and each of its employees, representatives, or other agents may
disclose to any and all persons, without limitation of any kind, the tax treatment and
tax structure of the Transaction and

15

 

	 	 	 	all materials of any kind (including opinions or other tax analyses) that are
provided to Issuer relating to such tax treatment and tax structure.
	 
	 	(l)	 	Designation by Lehman. Notwithstanding any other provision in this
Confirmation to the contrary requiring or allowing Lehman to purchase, sell, receive or
deliver any Shares or other securities to or from Issuer, Lehman may designate any of
its affiliates to purchase, sell, receive or deliver such shares or other securities
and otherwise to perform Lehman obligations in respect of the Transaction and any such
designee may assume such obligations. Lehman shall be discharged of its obligations to
Issuer to the extent of any such performance and shall not be discharged at any time
prior thereto..
	 
	 	(m)	 	No Netting and Set-off. Multiple Transaction Payment Netting and the
provisions of Section 6(f) of the Agreement shall not apply. Each party waives any and
all rights it may have to set-off delivery or payment obligations it owes to the other
party under the Transaction against any delivery or payment obligation owed to it by
the other party, whether arising under the Agreement, under any other agreement between
the parties thereto, by operation or law or otherwise.
	 
	 	(n)	 	Additional Termination Event. If Lehman reasonably determines that it is
advisable to terminate a portion of the Transaction so that Lehman’s related hedging
activities will comply with applicable securities laws, rules or regulations, an
Additional Termination Event shall occur in respect of which (1) Issuer shall be the
sole Affected Party and (2) the Transaction shall be the sole Affected Transaction.
	 
	 	(o)	 	Effectiveness. If, prior to the Effective Date, Lehman reasonably determines
that it is advisable to cancel the Transaction because of concerns that Lehman’s
related hedging activities could be viewed as not complying with applicable securities
laws, rules or regulations, the Transaction shall be cancelled and shall not become
effective, and neither party shall have any obligation to the other party in respect of
the Transaction.
	 
	 	(p)	 	Amendments to the Agreement. Notwithstanding any term or provision contained
in the Agreement, (i) at any time prior to April 15, 2012 no Potential Event of Default
or Event of Default shall apply with respect to Issuer as a defaulting party, and no
Termination Event shall apply with respect to Issuer as an Affected Party, in each and
any such case, except to the extent any such Event of Default or Termination Event
results in the occurrence and continuance of an Additional Termination Event (as
specified in this Confirmation) or an Extraordinary Event elected as being applicable
in this Confirmation, and Issuer shall have no Specified Entities or Credit Support
Providers for purposes of the Agreement and this Transaction; (ii) without limiting the
generality of the foregoing, and within the time period and subject to the other
conditions specified in clause (i), the Events of Default specified in Sections 5(a)
(ii) (except to the extent that any violation of any such agreement or delivery
obligation described therein or in this Confirmation would reasonably be expected to
have a material adverse effect on the ability of Issuer to perform its delivery
obligations under this Transaction), (iii), (iv) (except to the extent any
misrepresentation made under this Confirmation or under the Agreement would reasonably
be expected to have a material adverse effect on the ability of Issuer to perform its
obligations under this Transaction), (v), or (vi) of the Agreement, and the
Termination Events specified in the Agreement, shall not apply with respect to Issuer;
and (iii) with respect to any early termination of all or any portion of this
Transaction for any reason pursuant to the terms of this Confirmation, the Equity
Definitions and/or the Agreement, and additionally notwithstanding any term or
provision in the Equity Definitions, (A) any amount payable (or to be payable) by
either party hereto to the other party hereto arising as a result of such early
termination (including any costs resulting from

16

 

	 	 	 	unwinding hedging transactions) shall be determined in good faith and in a
commercially reasonable manner and (B) without limiting the foregoing, the party
determining the amount of any such payment (whether Lehman, Issuer or the
Calculation Agent) shall (1) utilize commercially reasonable procedures and
methodologies so as to produce a commercially reasonable determination of such
amount, and (2) disclose in reasonable detail the material information utilized (or
to be utilized) by such party in making such determination.
	 
	 	(q)	 	Regulatory Provisions.

	 	(i)	 	Issuer represents and warrants that it has received and read and
understands the Notice of Regulatory Treatment and the OTC Option Risk
Disclosure Statement.
	 
	 	(ii)	 	The Agent will furnish Issuer upon written request a statement as to
the source and amount of any remuneration received or to be received by the
Agent in connection with the Transaction evidenced hereby.

	 	(r)	 	Waiver of Trial by Jury. EACH OF ISSUER AND BUYER HEREBY IRREVOCABLY WAIVES
(ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS
STOCKHOLDERS) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
(WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE
TRANSACTION OR THE ACTIONS OF BUYER OR ITS AFFILIATES IN THE NEGOTIATION, PERFORMANCE
OR ENFORCEMENT HEREOF.
	 
	 	(s)	 	Governing Law. THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF
NEW YORK. THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES COURT FOR THE SOUTHERN DISTRICT
OF NEW YORK IN CONNECTION WITH ALL MATTERS RELATING HERETO AND WAIVE ANY OBJECTION TO
THE LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT FORUM WITH RESPECT TO, THESE
COURTS.

17

 

\

Please confirm your agreement with the foregoing by executing this Confirmation and returning such
Confirmation, in its entirety, to us at facsimile number 646-885-9546 (United States of America),
Attention: Documentation.

	 	 	 	 	 	 	 
	Yours sincerely,	 	Accepted and agreed to:
	 
	 	 	 	 	 	 
	Lehman Brothers OTC Derivatives Inc.	 	Parker Drilling Company
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	Name:

	 	 	 	Name:	 	 
	Title:

	 	 	 	Title:	 	 

Execution time will be furnished upon Party B’s written request.

18

 

Annex A

     For each Component of the Transaction, the Number of Warrants and Expiration Date is set forth
below.

	 	 	 	 	 	 	 	 
	Component Number	 	Number of Warrants	 	Expiration Date
	1.

	 	 	9,228	 	 	 	October 15, 2012
	2.

	 	 	9,228	 	 	 	October 16, 2012
	3.

	 	 	9,228	 	 	 	October 17, 2012
	4.

	 	 	9,228	 	 	 	October 18, 2012
	5.

	 	 	9,228	 	 	 	October 19, 2012
	6.

	 	 	9,228	 	 	 	October 22, 2012
	7.

	 	 	9,228	 	 	 	October 23, 2012
	8.

	 	 	9,228	 	 	 	October 24, 2012
	9.

	 	 	9,228	 	 	 	October 25, 2012
	10.

	 	 	9,228	 	 	 	October 26, 2012
	11.

	 	 	9,228	 	 	 	October 29, 2012
	12.

	 	 	9,228	 	 	 	October 30, 2012
	13.

	 	 	9,228	 	 	 	October 31, 2012
	14.

	 	 	9,228	 	 	 	November 1, 2012
	15.

	 	 	9,228	 	 	 	November 2, 2012
	16.

	 	 	9,228	 	 	 	November 5, 2012
	17.

	 	 	9,228	 	 	 	November 6 2012
	18.

	 	 	9,228	 	 	 	November 7, 2012
	19.

	 	 	9,228	 	 	 	November 8, 2012
	20.

	 	 	9,228	 	 	 	November 9, 2012
	21.

	 	 	9,228	 	 	 	November 12, 2012
	22.

	 	 	9,228	 	 	 	November 13, 2012
	23.

	 	 	9,228	 	 	 	November 14, 2012
	24.

	 	 	9,228	 	 	 	November 15, 2012
	25.

	 	 	9,228	 	 	 	November 16, 2012
	26.

	 	 	9,228	 	 	 	November 19, 2012
	27.

	 	 	9,228	 	 	 	November 20, 2012
	28.

	 	 	9,228	 	 	 	November 21, 2012
	29.

	 	 	9,228	 	 	 	November 23, 2012
	30.

	 	 	9,228	 	 	 	November 26, 2012
	31.

	 	 	9,228	 	 	 	November 27, 2012
	32.

	 	 	9,228	 	 	 	November 28, 2012
	33.

	 	 	9,228	 	 	 	November 29, 2012
	34.

	 	 	9,228	 	 	 	November 30, 2012
	35.

	 	 	9,228	 	 	 	December 3, 2012
	36.

	 	 	9,228	 	 	 	December 4, 2012
	37.

	 	 	9,228	 	 	 	December 5, 2012
	38.

	 	 	9,228	 	 	 	December 6, 2012
	39.

	 	 	9,228	 	 	 	December 7, 2012
	40.

	 	 	9,228	 	 	 	December 10, 2012
	41.

	 	 	9,228	 	 	 	December 11, 2012
	42.

	 	 	9,228	 	 	 	December 12, 2012
	43.

	 	 	9,228	 	 	 	December 13, 2012
	44.

	 	 	9,228	 	 	 	December 14, 2012
	45.

	 	 	9,228	 	 	 	December 17, 2012
	46.

	 	 	9,228	 	 	 	December 18, 2012
	47.

	 	 	9,228	 	 	 	December 19, 2012
	48.

	 	 	9,228	 	 	 	December 20, 2012
	49.

	 	 	9,228	 	 	 	December 21, 2012

19

 

	 	 	 	 	 	 	 	 
	Component Number	 	Number of Warrants	 	Expiration Date
	50.

	 	 	9,228	 	 	 	December 24, 2012
	51.

	 	 	9,228	 	 	 	December 26, 2012
	52.

	 	 	9,228	 	 	 	December 27, 2012
	53.

	 	 	9,228	 	 	 	December 28, 2012
	54.

	 	 	9,228	 	 	 	December 31, 2012
	55.

	 	 	9,228	 	 	 	January 2, 2013
	56.

	 	 	9,228	 	 	 	January 3, 2013
	57.

	 	 	9,228	 	 	 	January 4, 2013
	58.

	 	 	9,228	 	 	 	January 7, 2013
	59.

	 	 	9,228	 	 	 	January 8, 2013
	60.

	 	 	9,228	 	 	 	January 9, 2013
	61.

	 	 	9,228	 	 	 	January 10, 2013
	62.

	 	 	9,228	 	 	 	January 11, 2013
	63.

	 	 	9,228	 	 	 	January 14, 2013
	64.

	 	 	9,228	 	 	 	January 15, 2013
	65.

	 	 	9,228	 	 	 	January 16, 2013
	66.

	 	 	9,228	 	 	 	January 17, 2013
	67.

	 	 	9,228	 	 	 	January 18, 2013
	68.

	 	 	9,228	 	 	 	January 22, 2013
	69.

	 	 	9,228	 	 	 	January 23, 2013
	70.

	 	 	9,228	 	 	 	January 24, 2013
	71.

	 	 	9,228	 	 	 	January 25, 2013
	72.

	 	 	9,228	 	 	 	January 28, 2013
	73.

	 	 	9,228	 	 	 	January 29, 2013
	74.

	 	 	9,228	 	 	 	January 30, 2013
	75.

	 	 	9,228	 	 	 	January 31, 2013
	76.

	 	 	9,228	 	 	 	February 1, 2013
	77.

	 	 	9,228	 	 	 	February 4, 2013
	78.

	 	 	9,228	 	 	 	February 5, 2013
	79.

	 	 	9,228	 	 	 	February 6, 2013
	80.

	 	 	9,228	 	 	 	February 7, 2013
	81.

	 	 	9,228	 	 	 	February 8, 2013
	82.

	 	 	9,228	 	 	 	February 11, 2013
	83.

	 	 	9,228	 	 	 	February 12, 2013
	84.

	 	 	9,228	 	 	 	February 13, 2013
	85.

	 	 	9,228	 	 	 	February 14, 2013
	86.

	 	 	9,228	 	 	 	February 15, 2013
	87.

	 	 	9,228	 	 	 	February 19, 2013
	88.

	 	 	9,228	 	 	 	February 20, 2013
	89.

	 	 	9,228	 	 	 	February 21, 2013
	90.

	 	 	9,258	 	 	 	February 22, 2013

20exv10w7

 

Exhibit 10.7

AMENDMENT TO CONFIRMATION

     THIS AMENDMENT TO CONFIRMATION (this “Amendment”) is made as of this 29th day of June 2007,
between Parker Drilling Company (“Issuer”) and Bank of America, N.A. (“BofA”).

     WHEREAS, BofA and Issuer are parties to a Confirmation dated as of June 28, 2007 (the
“Confirmation”) relating to Warrants on shares of Issuer;

     WHEREAS, the parties wish to amend the Confirmation on the terms and conditions set forth in
this Amendment;

     NOW, THEREFORE, in consideration of their mutual covenants herein contained and for other good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto hereby agree as follows:

     Section 1. Terms Used but Not Defined Herein. Capitalized terms used but not defined herein
shall have the respective meanings given to them in the Confirmation.

     Section 2. Amendments to the Confirmation. The Confirmation is, effective as of the date
hereof, hereby amended as follows:

(a) The “Premium” under the Confirmation shall be USD $12,150,000.00. For the avoidance
of doubt, the Premium per Warrant set forth in the Confirmation shall remain unchanged.

(b) The “Number of Warrants” under Annex A of the Confirmation shall be 60,184 for Components 1
through 89 and 60,252 for Component 90.

     Section 3. Representations and Warranties. Issuer represents and warrants to BofA that
the representations and warranties of Issuer set forth in Section 3 of the Agreement and Section 7
of the Confirmation are true and correct and are hereby deemed to be repeated to BofA as if set
forth herein.

     Section 4. Effectiveness. This Amendment shall become effective upon execution by the
parties hereto.

     Section 5. Counterparts. This Amendment may be signed in any number of counterparts, each of
which shall be an original, with the same effect as if all of the signatures thereto and hereto
were upon the same instrument.

     Section 6. Governing Law. This Amendment shall be governed by and construed in accordance
with the laws of the State of New York.

     Section 7. Effectiveness of Confirmation. Except as amended hereby, all the terms of the
Confirmation shall remain and continue in full force and effect and are hereby confirmed in all
respects.

1

 

Exhibit 10.7

     Issuer hereby agrees (a) to check this Amendment carefully and immediately upon receipt so
that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the
foregoing (in the exact form provided by BofA) correctly sets forth the terms of the agreement
between BofA and Issuer with respect to the Transaction, by manually signing this Amendment or this
page hereof as evidence of agreement to such terms and providing the other information requested
herein and immediately returning an executed copy to John Servidio, Facsimile No. 212-230-8610.

	 	 	 	 	 
	 	Yours faithfully,

BANK OF AMERICA, N.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Agreed and Accepted By:

	 	 	 	 	 
	 	PARKER DRILLING COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

2

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