Document:

exv10w1

Exhibit 10.1

SEPARATION AGREEMENT AND RELEASE

     THIS SEPARATION AGREEMENT AND RELEASE (this “Agreement”) is made by and between Parker
Drilling Company, a Delaware corporation (“Parker Drilling” or the “Company”) and Ronald C. Potter
(“Executive”) and shall become effective on the eighth day following its execution by Executive and
return to Parker Drilling, provided Executive has not revoked his consent to this Agreement
pursuant to paragraph 18(c) (“Effective Date”). Parker Drilling and Executive are sometimes
referred to collectively as the “Parties” or individually as a “Party”.

PURPOSE

     Parker Drilling and Executive have reached a mutual agreement that Executive’s employment with
the Company will terminate on March 27, 2009 (the “Termination Date”) pursuant to the terms of this
Agreement.

TERMS

     To achieve a final and amicable resolution of the employment relationship in all its aspects
and in consideration of the mutual covenants and promises herein contained and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties
agree as follows:

     1. Termination of Employment Agreement. Except as otherwise provided herein or in the
Consulting Agreement executed by the Parties as of March 28, 2009 (the “Consulting Agreement”),
this Agreement replaces and terminates that certain Employment Agreement entered into as of July 1,
2003, as amended by the First Amendment to Employment Agreement dated October 26, 2005 and further
amended by the Amendment to Employment Agreement effective as of December 31, 2008 (sometimes
collectively referred to as the “Employment Agreement”) and will constitute the entire agreement
between the Parties.

     2. Minimum Payments. On the fifth business day after the Effective Date, Parker Drilling
shall pay to Executive in a lump sum the amount of $39,509.62, which represents Executive’s unpaid
salary and vacation pay as provided for in Section 6(a)(1) and 6(a)(3) of the Employment Agreement.
Executive acknowledges that no payment is required under Section 6(a)(2) of the Employment
Agreement.

 

 

     3. Severance Payments. On the first regularly scheduled Parker Drilling payroll date that
commences more than six months after the Termination Date or, if later, Executive’s “separation
from service” as defined in Section 409A of the Internal Revenue Code of 1986, as amended, and the
Treasury Regulations and other guidance thereunder (“Section 409A”), Parker Drilling shall pay to
Executive in lump sum the amount of Seven Hundred Eight Thousand Seventy-Five United States Dollars
($708,075), representing the “Additional Payment” required by Section 6(b)(1) of the Employment
Agreement.

     4. Vesting of Restricted Stock. Executive is the recipient of 161,362 shares of Parker
Drilling common stock (“Grant Shares”), which shares are listed on Appendix A to this Agreement,
granted under certain award agreements (the “Restricted Stock Award Agreements”) pursuant to the
terms of the Parker Drilling Company 2005 Long-Term Incentive Plan effective as of March 18, 2005.
The terms of the Restricted Stock Award Agreements provide that Executive’s rights to the Grant
Shares shall terminate upon termination of Executive’s employment with the Company. Under the
terms of the Parker Drilling Company 2005 Long-Term Incentive Plan (“2005 LTIP”) and the Restricted
Stock Award Agreements issued pursuant to the 2005 Plan, Executive’s rights to such Grant Shares
shall continue and such Grant Shares shall continue to vest under the terms of the respective
Restricted Stock Award Agreement during the term of Executive’s Employment (as defined in
the 2005 LTIP) as a consultant. In addition, at any time during the term of the Consulting
Agreement, the Compensation Committee of the Board of Directors may, in its sole discretion,
authorize the proper officers of the Company to amend the terms of any Restricted Stock Award
Agreement to accelerate the vesting schedule related to some or all of the Grant Shares. In the
event the Compensation Committee determines to approve the amendment of the terms of any Restricted
Stock Award Agreement to accelerate the vesting schedule associated with any Grant Shares, the
Company shall given written notice to the Executive of such amendment and such Grant Shares shall
become fully vested and transferable to Executive free of any and all restrictions. Any Grant
Share which remains subject to a vesting schedule at the end of the term of the Consulting
Agreement shall be forfeited by Executive.

     5. Executive’s Stock Options. Executive has been awarded 25,000 stock options (“Stock
Options”), which stock options are listed on Appendix A to this Agreement, pursuant to
the Parker Drilling Company 1997 Stock Plan, as amended. The terms of the Stock Option

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Award
Agreement entered into by the Company and Executive as of July 15, 2003 provide that Executive’s
rights to the Option Shares are exercisable only during the time Executive remains an employee,
director or consultant of the Company. Executive’s rights to such Option Shares shall continue
during the term of the Consulting Agreement. In addition, at any time during the term of the
Consulting Agreement, the Compensation Committee of the Board of Directors may, in its sole
discretion, by written notice from the Company to Executive, extend the exercise period related to
some or all of the Option Shares for any period from and after the expiration of the term of the
Consulting Agreement up to and including July 15, 2010. In the event the Compensation Committee
determines to extend the exercise period associated with any Option Shares, such Option Shares may
be exercised at any time up to the later of: (i) the expiration of the term of the Consulting
Agreement or (ii) the extended period approved by the Compensation Committee, if any, up to and
including July 15, 2010.

     6. Group Health Coverage. Parker Drilling shall maintain Executive’s group health plan and
group dental plan coverage for a period of eighteen (18) months following the Termination Date, at
substantially the same level of coverages as existed on the Termination Date; provided, however,
Executive and his covered dependents, if any, shall not be required to pay any portion of the
premium cost to retain such coverages but in all other respects shall be treated the same as other
participants under the terms of such plans. Following the expiration of the 18-month period,
Executive shall be entitled to elect additional continuation coverage under such plans pursuant to
the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) and the Company’s
procedures for COBRA administration, or otherwise. In the event that such additional COBRA
coverage is elected, (i) the COBRA time period shall not be reduced by the post-termination
continuation coverage provided pursuant to the foregoing provisions of this paragraph and (ii)
Executive (and his covered dependents, if any) must pay the full COBRA premium rates as effective
during such coverage period. In the event of any change to the group health plan or group dental
plan following the Termination Date, Executive and his spouse and dependents, as applicable, shall
be treated consistently with the then-current senior officers of Parker Drilling (or its successor)
with respect to the terms and conditions of coverage and other substantive provisions of the plan;
provided, however, no participant contributions
shall be required from them unless the additional COBRA coverage period is in effect.
Executive and his spouse hereby agree to acquire and maintain any and all coverage that either

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or
both of them are entitled to at any time during their lives under the Medicare program or any
similar program of the United States Government or any agency thereof (hereinafter referred to as
“Medicare”). The coverage described in the immediately preceding sentence includes, without
limitation, parts A and B of Medicare and any additional parts of Medicare. Executive and his
spouse further agree to pay any required premiums for Medicare coverage from their personal funds.
Notwithstanding the foregoing provisions, the coverage of Executive (and his dependents, if any)
under such medical and/or dental plans maintained by Parker Drilling shall terminate in the event
that Executive becomes employed by another for-profit employer which maintains a group health plan
or plans for its employees providing group medical coverage and group dental coverage; provided,
however, any additional COBRA coverage shall not be terminated unless and until permitted under
COBRA.

     7. Withholdings; Right of Offset. Parker Drilling may withhold and deduct from any benefits
and payments made or to be made pursuant to this Agreement (a) all Federal, state, local and other
taxes as may be required pursuant to any law or governmental regulation or ruling, and (b) all
other normal deductions made with respect to Parker Drilling’s employees generally, to the extent
permissible under Section 409A.

     8. Indemnity Rights. This Agreement shall not impair in any way the rights of Executive or
the obligations of Parker Drilling under the terms of that certain Indemnification Agreement
between Parker Drilling and the Executive dated April 6, 2004, and by its execution of this
Agreement Parker Drilling expressly re-affirms all the rights of Executive and obligations of
Parker Drilling under the terms of said Indemnification Agreement. Further, Executive will be
given reasonable access to all Parker Drilling records that are deemed necessary or helpful to
Executive or his counsel on any matter to which the Indemnification Agreement applies subject to
execution by Executive of a Confidentiality Agreement with terms and conditions reasonably
acceptable to Parker Drilling related to such records.

     9. Miscellaneous Matters. Executive shall be allowed to retain the iPhone provided by Parker
Drilling without cost to Executive, but Executive shall assume and pay all usage, repair or
replacement charges associated with the cellular phone from and after the termination of the
Consulting Agreement. Executive shall also be allowed to retain the laptop computer provided
by Parker Drilling without cost to Executive; provided, however, Parker

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Drilling retains the right
to remove any information related to Parker Drilling which exists on the laptop from and after the
termination of the Consulting Agreement.

     Parker Drilling shall provide Executive with outplacement services for a period of six months
at an aggregate cost not to exceed $5,000.00.

     10. Waiver of Reinstatement and Future Employment. Executive forever waives and relinquishes
any right or claim to reinstatement to active employment with Parker Drilling, its affiliates,
subsidiaries, divisions, and successors. Nothing contained herein shall prevent Executive from
applying for future employment with Parker Drilling, nor shall this Agreement be deemed as
precluding Executive from applying for future employment with third parties, including non-profit
organizations.

     11. Global Release of Claims. Executive, on behalf of himself, his heirs, executors,
successors and assigns, irrevocably and unconditionally releases, waives, and forever discharges
Parker Drilling and each of Parker Drilling’s subsidiaries whether wholly owned or not and whether
direct or indirect and each of Parker Drilling and its subsidiaries predecessors, successors,
parents, joint ventures, holding companies, subsidiaries, divisions, affiliates, assigns,
partnerships, agents, directors, officers, employees, consultants, committees, employee benefit
committees, fiduciaries, representatives, attorneys, and all persons and entities acting by,
through, under or in concert or in any such capacity with any of them (the “Parker Releasees”) from
any and all claims, demands, actions, causes of action, costs, fees, attorneys’ fees, and all
liability whatsoever, whether known or unknown, fixed or contingent, which Executive has, had, or
may have against any of the Parker Releasees including, without limitation, the agreements he
executed with Parker Drilling and his acts or omissions that resulted in Executive’s separation
from employment with Parker Drilling, from the beginning of time and up to and including the date
of execution of this Agreement. This Agreement includes, without limitation, claims at law or
equity or sounding in contract (express or implied) or tort, claims arising under any federal,
state, or local laws of any jurisdiction that prohibit age, sex, race, national origin, color,
disability, religion, veteran, military status, sexual orientation, or any other form of
discrimination, harassment, or retaliation (including, without limitation, the Age Discrimination
in Employment Act, the Older Workers Benefit Protection Act, the Americans with Disabilities
Act, Title VII of the 1964 Civil Rights Act, the Civil Rights Act of 1991, 42 U.S.C. § 1981, the
Rehabilitation Act, the Family and Medical Leave Act, the Sarbanes-Oxley Act, the Employee

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Polygraph Protection Act, the Financial Institutions Reform, Recovery and Enforcement Act (or any
other employment-related banking statute or regulation), the Uniformed Services Employment and
Reemployment Rights Act of 1994, the Texas Commission on Human Rights Act, any federal, state,
local or municipal whistleblower protection or anti-retaliation statute or ordinance, or any other
federal, state, local, or municipal laws of any jurisdiction), claims arising under the Employee
Retirement Income Security Act, or any other statutory or common law claims related to Executive’s
employment or separation from employment with Parker Drilling, the agreements he executed with
Parker Drilling, and his acts or omissions that resulted in Executive’s separation from employment
with Parker Drilling. Notwithstanding the foregoing, the provisions of this paragraph 11 shall not
apply to the Indemnification Agreement. Under this Agreement, Executive is excluded from the
definition of Parker Releasees.

     12. Non-Disparagement. Executive agrees, for a period of two (2) years after the Effective
Date, not to, directly or indirectly, disclose, communicate, or publish any intentionally
disparaging, negative, harmful, or disapproving information, written communications, oral
communications, electronic or magnetic communications, writings, oral or written statements,
comments, opinions, facts, or remarks, of any kind or nature whatsoever (collectively, “Disparaging
Information”), concerning or related to any of the Parker Releasees. Executive understands and
acknowledges that this non-disparagement clause prevents him from disclosing, communicating, or
publishing, directly or indirectly, any Disparaging Information concerning or related to the Parker
Releasees. Further, Executive acknowledges that in executing this Agreement, he has knowingly,
voluntarily, and intelligently waived any free speech, free association, free press or First
Amendment to the United States Constitution (including, without limitation, any counterpart or
similar provision or right under the Texas Constitution or any other state constitution which may
be deemed to apply) rights to disclose, communicate, or publish Disparaging Information concerning
or related to the Parker Releasees. Executive also understands and agrees that he has had a
reasonable period of time to consider this non-disparagement clause, to review the
non-disparagement clause with his attorney, and to consent
to this clause and its terms knowingly and voluntarily. Executive further acknowledges that
this non-disparagement clause is a material term of this Agreement. If Executive breaches this
paragraph 12, Parker Drilling will not be limited to a damages remedy, but may seek all other
equitable and legal relief including, without limitation, a temporary restraining order, temporary

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injunctive relief, a permanent injunction, and its attorneys’ fees and costs, against him and any
other persons, individuals, corporations, businesses, groups, partnerships or other entities acting
by, through, under, or in concert with him. Nothing in this Agreement shall, however, be deemed to
prevent Executive from testifying fully and truthfully in response to a subpoena from any court or
from responding to investigative inquiry from any governmental agency or during interviews of audit
committee counsel related to or in anticipation of government investigations.

     13. Cooperation. After his separation from employment from Parker Drilling, Executive agrees
to cooperate with Parker Drilling in connection with the defense or prosecution of any claims,
causes of action, investigations, hearings, proceedings, arbitrations or other tribunals now in
existence or which may be brought in the future against or on behalf of Parker Drilling that relate
to events or occurrences that transpired while he was employed with Parker Drilling. Executive’s
cooperation in connection with this paragraph 13 shall include, without limitation, making himself
reasonably available to meet with counsel to prepare for discovery or trial, to act as a witness on
behalf of Parker Drilling at convenient times, and to provide true and accurate testimony regarding
any such matters. If Executive is subpoenaed or contacted to cooperate in any manner by a
non-governmental party concerning any matter related to Parker Drilling, he shall immediately
notify Parker Drilling, through the notice procedures identified in this Agreement before
responding or cooperating. The Executive shall be entitled to reimbursement of all expenses
incurred in conjunction with his cooperation pursuant to this paragraph 13, including reasonable
attorneys fees, consistent with the terms of the Indemnification Agreement between Parker Drilling
and the Executive dated April 6, 2004. Any amount that Executive is entitled to be reimbursed under
this Section will be reimbursed to Executive as promptly as practicable and in any event not later
than the last day of the calendar year after the calendar year in which the expenses to be
reimbursed are incurred, and the amount of the expenses eligible for reimbursement during any
calendar year will not affect the amount of expenses eligible for reimbursement in any other
calendar year.

     14. Confidentiality of Company Information. The Executive shall continue to abide by Parker
Drilling’s confidentiality policies, including those imposed on him by virtue of his consulting
relationship with Parker Drilling. The Executive will not at any time disclose to anyone,
including, without limitation, any person, firm, corporation, or other entity, or publish, or use
for any purpose, any Confidential Information, except as Parker Drilling directs and

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authorizes.
The Executive shall take all reasonable measures to protect the secrecy of and avoid disclosure and
unauthorized use of the “Confidential Information” and agrees to immediately notify Parker Drilling
in the event of any unauthorized use or disclosure of the Confidential Information. Confidential
Information includes, without limitation, all of Parker Drilling’s technical and business
information, which is of a confidential, trade secret or proprietary character; lists of customers;
identity of customers; identity of prospective customers; contract terms; bidding information and
strategies; pricing methods or information; photographs; internal policies, procedures,
communications and reports; computer software; computer software methods and documentation; graphic
designs; hardware; Parker Drilling’s methods of operation; the procedures, forms and techniques
used in servicing accounts; and other information or documents that Parker Drilling requires to be
maintained in confidence for Parker Drilling’s continued business success or any other information
defined as “secret and Confidential Information” in the Employment Agreement. Confidential
Information does not include any information that is readily available to the public or, upon
reasonable investigation, is readily ascertainable in the public domain.

     15. Agreement to Return Company Property/Documents. Executive understands and agrees that his
last day of active work at any Parker Drilling office or on any Parker Drilling owned or leased
property will be at the end of the term of the Consulting Agreement. The Executive will not take
with him, copy, alter, destroy, or delete any files, documents, electronically stored information,
or other materials whether or not embodying or recording any Confidential Information, including
copies, without obtaining in advance the written consent of an authorized Parker Drilling
representative. The Executive will promptly return to Parker Drilling all Confidential Information,
documents, files, electronically stored information, records and tapes (written or electronically
stored) regarding Parker Drilling that are in his possession or control, and he will not use or
disclose such materials in any way or in any format, including
written information in any form, information stored by electronic means, and any and all
copies of these materials. Upon or before the execution of this Agreement, Executive will return to
Parker Drilling all Parker Drilling property except the property described in paragraph 9 above,
including, without limitation, company automobiles, keys, equipment, computer(s) and computer
equipment, devices, cellular phones, other telephonic equipment, Parker Drilling credit cards,

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data, lists, information, correspondence, notes, memos, reports, or other writings prepared by
Parker Drilling or himself on behalf of Parker Drilling.

     16. Knowing and Voluntary Agreement. The Executive understands it is his choice whether or
not to enter into this Agreement and that his decision to do so is voluntary and is made knowingly.
The Executive acknowledges that he has been advised by Parker Drilling to seek legal counsel to
review this Agreement.

     17. Resignation as Officer and Employee. The Executive hereby resigns all positions as an
officer and employee of Parker Drilling, including but not limited to, Vice President, General
Counsel and Corporate Secretary, effective as of the Effective Date. Likewise, Executive hereby
resigns all positions as an employee, director, representative or agent of all Parker Drilling
subsidiaries, whether direct or indirect, and Parker Drilling affiliates effective as of the
Effective Date.

     18. Executive and Company Acknowledgment. Executive acknowledges that among other rights
which he is waiving by entering into this Agreement is the right to bring an action pursuant to the
Age Discrimination in Employment Act (“ADEA”) and similar state statutes. The following
admonitions and rights have been negotiated by the parties in order to insure full compliance with
the requirements of the ADEA for a valid waiver of claim:

     a) Executive and the Company have been advised to discuss the terms of this Agreement with an
attorney before signing.

     b) Executive has been extended a period of 21 days within which to consider this Agreement.

     c) For a period of seven (7) days following Executive’s execution of the Agreement, Executive
may revoke the Agreement by notifying Parker Drilling, in writing, of his desire to do so. After
the seven (7) day period has elapsed, this Agreement shall become effective and enforceable.

     19. Dispute Resolution. If any dispute arises out of or is related to this Agreement, the
Company and Executive hereby agree to resolve such dispute pursuant to the provisions of paragraph
14 of the Consulting Agreement.

     20. No Admission of Liability. This Agreement and compliance with this Agreement shall not be
construed as an admission by Parker Drilling or Executive of any

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liability whatsoever, or as an
admission by Parker Drilling of any violation of the rights of Executive or any other person, or
any violation of any order, law, statute, duty or contract.

     21. Governing Law. This Agreement will be interpreted and enforced in accordance with the
laws of the State of Texas.

     22. Entirety and Integration. Upon the execution hereof by all the parties, this Agreement
shall constitute a single, integrated contract expressing the entire agreement of the parties
relative to the subject matter hereof and supersedes all prior negotiations, understandings and/or
agreements, if any, of the parties. No covenants, agreements, representations, or warranties of
any kind whatsoever have been made by any party hereto, except as specifically set forth in this
Agreement.

     23. Authorization. Each person signing this Agreement as a party or on behalf of a party
represents that he or she is duly authorized to sign this Agreement on such party’s behalf, and is
executing this Agreement voluntarily, knowingly, and without any duress or coercion.

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

	 	 	 	 	 	 	 	 	 
	PARKER DRILLING COMPANY	 	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 	 	 
	By: 
	 	 	 	 	 	 	 	 
	 

	 
	 	 	 	 	 	 
	 

	Its:
	 	 	 	 	RONALD C. POTTER	 	 
	 

	Date: 
	 	 	 	 	Date:
     
	 

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Appendix A

Unvested Restricted Stock Grants

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Date of Agreement	 	Number of Grant Shares	 	Vesting Date
	 
	 
	1.
	 	April 6, 2006	 	 	9667	 	 	April 6, 2009
	2.
	 	March 20, 2008	 	 	9471	 	 	March 19, 2010
	3.
	 	[March 9, 2009	 	 	70962	 	 	March 9, 2010]
	4.
	 	[March 9, 2009	 	 	70962	 	 	March 9, 2011]
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	Total
	 	 	161,062	 	 	 	 	 

Outstanding Stock Options

	 	 	 	 	 	 	 
	Date of Agreement	 	Number of Remaining Options	 	Strike Price	 	Expiration Date
	 
	 
	July 15, 2003
	 	25,000
	 	$2.61
	 	July 15, 2010exv10w2

Exhibit 10.2

CONSULTING AGREEMENT

     This Consulting Agreement (the “Agreement”) is made by and between Parker Drilling Company, a
company organized and existing under the laws of the State of Delaware (hereinafter “COMPANY”), and
Ronald C. Potter, an individual residing in Houston, Texas (hereinafter “CONSULTANT”) effective as
of March 28, 2009.

     WHEREAS, the CONSULTANT and COMPANY have entered into a Separation Agreement and Release
effective as of March 27, 2009, in connection with CONSULTANT’s separation from the COMPANY as the
Vice President, General Counsel and Corporate Secretary (the “Separation Agreement”);

     WHEREAS, pursuant to the terms of the Separation Agreement, the parties have agreed to enter
into this Agreement for the provision of consulting services by CONSULTANT to COMPANY;

     WHEREAS, the COMPANY desires to retain CONSULTANT’s services during the interim period and to
facilitate the transition to a new general counsel; and

     WHEREAS, the CONSULTANT is willing to provide consulting services to the COMPANY in accordance
with the terms of this Agreement.

     NOW, THEREFORE, in consideration of the mutual promises herein contained, COMPANY and
CONSULTANT agree as follows:

	1.	 	Scope of Service

The COMPANY and CONSULTANT recognize that CONSULTANT previously acted in the capacity of the
COMPANY’s Vice President, General Counsel and Corporate Secretary and that the Scope of Service
CONSULTANT will render under this Agreement shall be substantially different and more limited than
the services previously provided by the CONSULTANT in his capacity as Vice President, General
Counsel and Corporate Secretary of the Company.

	 	(a)	 	CONSULTANT has been retained by the COMPANY to provide certain services to the
COMPANY solely with regard to transitioning pending matters, including, but not limited
to litigation, operations, finance, corporate/administration, compliance, corporate
records, governance, corporate structure, benefits, and related issues to the COMPANY.
	 
	 	(b)	 	CONSULTANT is not retained to engage outside counsel, to enter into contracts
or commitments for the COMPANY, and agrees not to do so.
	 
	 	(c)	 	CONSULTANT shall be free to engage in consulting services for others, provided,
however, such other activities shall not interfere with his rendering services to the
COMPANY.

 

 

	 	(d)	 	CONSULTANT shall provide such other consulting services as the COMPANY and
CONSULTANT may agree, without additional compensation. The services described in
subparagraphs 1(a)-(d) may be referred to hereinafter collectively as the “Consultant
Services”.

	2.	 	Nature of Relationship Between Parties
	 
	 	 	The CONSULTANT shall render the Consultant Services in this Agreement as an independent
contractor. Except as otherwise agreed to by the COMPANY, CONSULTANT will have no authority
or power to bind the COMPANY in relation to third parties or to represent to third parties
that CONSULTANT has authority or power to bind the COMPANY. It is not the intention of the
parties to this Agreement to create, by virtue of this Agreement, any employment
relationship, trust, partnership or joint venture between CONSULTANT and the COMPANY or any
of its affiliates or, except as specifically provided in this Agreement, to make them legal
representatives or agents of each other or to create any fiduciary relationship or
additional contractual relationship among them.
	 
	3.	 	Compensation

	 	(a)	 	In consideration for CONSULTANT performing the Consultant Services for the term
of this Agreement, COMPANY agrees to pay CONSULTANT a monthly consulting fee of
US$24,458, payable monthly, in arrears on the 27th day of each month, prorated on a
weekly basis for any partial month.
	 
	 	(b)	 	In addition to the above compensation, COMPANY will reimburse CONSULTANT for
all reasonable out of pocket expenses incurred by CONSULTANT consistent with COMPANY’s
policies on reimbursement of business expenses. CONSULTANT will submit an itemized
statement of expenses to COMPANY on a monthly basis for costs incurred incidental to
the performance of his duties as a CONSULTANT.
	 
	 	(c)	 	CONSULTANT will also be provided with office access, computer, cell phone,
blackberry and other reasonable support services, including home internet access,
during the period of this Agreement consistent with the office support and services he
was receiving as an employee. The consideration described in subparagraphs 3(a)-(c)
may be referred to hereinafter collectively as the “Consultant Compensation”.
	 
	 	(d)	 	The Consultant Compensation shall be CONSULTANT’s sole compensation for
performing the Consultant Services.

	4.	 	Term

	 	 	This Agreement shall commence on March 28, 2009, and shall continue in effect through May
27, 2009; provided, however, such term may be extended thereafter by mutual agreement of
the parties.

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	5.	 	Consultant’s Standard of Care
	 
	 	 	Subject to the other provisions of this Agreement, CONSULTANT shall provide the Consultant
Services with the same degree of care, skill and prudence that would be customarily
exercised for what he reasonably believes to be in the best interest of the COMPANY.
	 
	6.	 	Independent Contractor

	 	(a)	 	Except as otherwise provided herein or in the Separation Agreement, the status
of CONSULTANT shall be that of an independent contractor and CONSULTANT shall not be
eligible for participation in benefit plans offered by COMPANY to its employees.
	 
	 	(b)	 	COMPANY acknowledges and agrees that CONSULTANT may engage directly or
indirectly in other activities during the term of this Agreement, including the
provision of legal services to other companies and persons. However, this provision
shall not relieve CONSULTANT of his obligations under paragraph 7 of this Agreement.
	 
	 	(c)	 	CONSULTANT shall be solely responsible for satisfaction of all tax obligations
with regard to compensation earned pursuant to this Agreement, and agrees to hold
COMPANY harmless from any liability for unpaid taxes or penalties in conjunction with
earnings hereunder.

	7.	 	Confidentiality
	 
	 	 	The CONSULTANT acknowledges and agrees that all Confidential Information about the COMPANY
that was previously provided in the course of employment with the COMPANY and Confidential
Information that will be provided to him in the course of the Term of this Agreement are and
will continue to be the exclusive property of the COMPANY. The CONSULTANT agrees to keep all
Confidential Information in strict confidence, not disclosing any Confidential Information
to any third person except (i) as consented to in writing by the CEO of the COMPANY or (ii)
as required by law or judicial or regulatory process; provided, however, that CONSULTANT
shall not be obligated to keep in confidence any information which has become generally
available to the public without any breach by CONSULTANT of this paragraph 7. If requested
by the COMPANY, CONSULTANT will obtain from any third party to whom he discloses any
Confidential Information the written agreement (in form and substance satisfactory to the
COMPANY in its sole discretion) of such third party to keep such information confidential.
The CONSULTANT agrees to continue to abide by COMPANY policies regarding confidentiality.

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	8.	 	Protective Covenants
	 
	 	 	The COMPANY agrees to provide CONSULTANT with Confidential Information, which CONSULTANT has
not had access to or knowledge of before the execution of this Agreement. The CONSULTANT
agrees that to protect the COMPANY’s Confidential Information, it is necessary to enter into
the following restrictive covenants, which are ancillary to the enforceable promises between
the COMPANY and CONSULTANT in paragraph 8 of this Agreement:

	 	(i)	 	Non-Solicitation. The CONSULTANT agrees that during
(A) the Term of the Agreement and (B) for a one-year period following the Term
of the Agreement (the “Post Consulting Period” and, together with the Term, the
“Restricted Period”) will not, directly or indirectly, either individually or
as a principal, partner, agent, consultant, contractor, employee, or as a
director or officer of any corporation or association, or in any other manner
or capacity whatsoever, except on behalf of the COMPANY, solicit business, or
attempt to solicit business, in products or services competitive with products
or services sold by the COMPANY, from any customer or client, or prospective
customer or client, with whom CONSULTANT had contact or solicited during the
(24) months that immediately proceeded the execution of this Agreement or
during the Term of the Agreement. Notwithstanding the foregoing, nothing in
this Agreement or in the Separation Agreement shall limit CONSULTANT’s right to
provide legal services to any person or entity that is a present or potential
competitor of the COMPANY.
	 
	 	(ii)	 	Non-Recruitment. The CONSULTANT also agrees that
during the Restricted Period, he will not, directly or indirectly, hire,
solicit, induce, recruit, engage, go into business with, encourage to leave
their employment or contractor relationship with the COMPANY, or otherwise
cease their employment or contractor relationship with the COMPANY, or
otherwise contract for services with, any employee or contractor of the
COMPANY.
	 
	 	(iii)	 	Nature of the Restrictions. The CONSULTANT agrees
that the time, geographical area, and scope of restrained activities for the
restrictions in this paragraph 8 are reasonable, especially in light of the
COMPANY’s desire to protect its Confidential Information. If a court concludes
that any time period, geographical area, or scope of restrained activities
specified in paragraph 8 of this Agreement is unenforceable, the court is
vested with the authority to reduce the time period, geographical area, and/or
scope of restrained activities, so that the restrictions may be enforced to the
fullest extent permitted by law. Additionally, if CONSULTANT violates any of
the restrictions contained in this paragraph 8, the Restricted Period shall be
suspended and will not run in favor of the CONSULTANT from the time of the
commencement of any such violation until the time when the CONSULTANT cures the
violation to the COMPANY’s satisfaction.

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	9.	 	Agreement to Return Company Property/Documents
	 
	 	 	Following the termination of CONSULTANT’s consulting arrangement for any reason, CONSULTANT
agrees that: (i) he will not take with him, copy, alter, destroy, or delete any files,
documents or other materials whether or not embodying or recording any Confidential
Information, including copies, without obtaining in advance the written consent of an
authorized COMPANY representative; and (ii) he will promptly return to the COMPANY all
Confidential Information, documents, files, records and tapes (written or electronically
stored) that have been in his possession or control regarding the COMPANY, and he will not
use or disclose such materials in any way or in any format, including written information in
any form, information stored by electronic means, and any and all copies of these materials.
He further agrees to return to the COMPANY immediately all COMPANY property, including,
without limitation, keys, equipment, computer(s) and computer equipment, devices, COMPANY
cellular phones, other COMPANY telephonic equipment, COMPANY credit cards, data, lists,
information, correspondence, notes, memos, reports, or other writings prepared by the
COMPANY or himself on behalf of the COMPANY other than the iPhone and laptop referred to in
paragraph 9 of the Separation Agreement.
	 
	10.	 	Termination
	 
	 	 	This Agreement may be terminated by the COMPANY at any time for Cause. “Cause” means (i) a
material breach or violation of this Agreement by CONSULTANT, unless cured to the COMPANY’s
satisfaction within ten (10) business days following written notice given to CONSULTANT by
the COMPANY; (ii) the failure or refusal of CONSULTANT to perform timely and fully the
Consultant Services or to comply fully with his obligations under this Agreement, unless
such default is cured to the COMPANY’s satisfaction within ten (10) business days following
written notice given to CONSULTANT by the COMPANY; (iii) conviction of or a plea of no lo
contendere or similar plea by CONSULTANT of a crime involving theft, dishonesty or moral
turpitude, or the entry of a court order or administrative decree or order against the
CONSULTANT, agreed or otherwise, involving allegations of criminal or civil fraud; or (iv)
CONSULTANT’s breach of the non-solicitation covenant in paragraph 8 of this Agreement. “Good
Reason” means a material breach or violation of this Agreement by the COMPANY, unless cured
to CONSULTANT’s satisfaction within ten (10) business days following written notice given to
the COMPANY by CONSULTANT. If this Agreement is terminated for Cause, the COMPANY’s
obligation to pay Consultant Consideration not earned, as of the date of the event giving
rise to the Cause termination, shall end immediately. Moreover, CONSULTANT agrees to forfeit
the right to any unpaid Consultant Consideration owed by the COMPANY at the time of his
termination for Cause. If this Agreement is terminated by the COMPANY without Cause, or if
CONSULTANT terminates this Agreement for Good Reason, then the COMPANY shall promptly pay
CONSULTANT the balance of the Consultant Consideration for the then current Term.
	 
	11.	 	Survival
	 
	 	 	The provisions set forth in paragraphs 7, 8 and 9 shall survive termination or expiration of

5

 

	 	 	this Agreement for any reason. In addition, all provisions of this Agreement which
expressly continue to operate after the termination of this Agreement shall survive
termination or expiration of this Agreement in accordance with the terms of such provisions.
	 
	12.	 	No Assignment or Subcontracting
	 
	 	 	CONSULTANT shall not assign or subcontract in whole or in part any of the services to be
furnished under this Agreement, nor shall CONSULTANT assign any payment due or to become due
hereunder from COMPANY without the prior written consent of the COMPANY.
	 
	13.	 	Governing Law
	 
	 	 	This Agreement shall be governed and interpreted in accordance with the laws of the State of
Texas, not including any choice-of-law rule of the State of Texas, which may direct or refer
any such interpretation to the laws of any other state or county.
	 
	14.	 	Dispute Resolution
	 
	 	 	If any dispute arises out of or is related to this Agreement or CONSULTANT’s employment or
separation from employment with the COMPANY for any reason, and the parties to this
Agreement cannot resolve the dispute, the dispute shall be submitted to final and binding
arbitration. The arbitration shall be conducted in accordance with the American Arbitration
Association’s (“AAA”) National Rules for the Resolution of Employment Disputes (“Rules”). If
the parties cannot agree to an arbitrator, an arbitrator will be selected through the AAA’s
standard procedures and Rules. The COMPANY and CONSULTANT shall share the costs of
arbitration, unless the arbitrator rules otherwise, with the parties agreeing that if
CONSULTANT challenges this arbitration provision based on the allocation of costs between
the parties, then the arbitrator shall decide the proper allocation of costs. The COMPANY
and CONSULTANT agree that the arbitration shall be held in Houston, Texas. Arbitration of
the parties’ disputes is mandatory, and in lieu of all civil causes of action or lawsuits
either party may have against the other arising out of the Agreement or CONSULTANT’s
employment or separation from employment with the COMPANY, with the exception that the
COMPANY alone may seek a temporary restraining order and temporary injunctive relief in a
court to enforce the terms of this Agreement. CONSULTANT acknowledges that by agreeing to
this provision, he knowingly and voluntarily waives any right he may have to a jury trial
based on any claims he has, had, or may have against the COMPANY, including any right to a
jury trial under any local, municipal, state or federal law including, without limitation,
claims under Title VII of the Civil Rights Act of 1964, the Americans With Disabilities Act
of 1990, the Age Discrimination In Employment Act of 1967, the Older Workers Benefit
Protection Act, the Texas Commission on Human Rights Act, claims of harassment,
discrimination or wrongful termination, and any other statutory or common law claims.

6

 

	15.	 	Injunctive Relief
	 
	 	 	The CONSULTANT acknowledges and agrees that the covenants, obligations and agreements of the
CONSULTANT contained in this Agreement concern special, unique and extraordinary matters and
that a violation of any of the terms of these covenants, obligations or agreements will
cause the COMPANY irreparable injury for which adequate remedies at law are not available.
Therefore, the CONSULTANT agrees that the COMPANY alone will be entitled to an injunction,
restraining order, or all other equitable relief (without the requirement to post bond) as a
court of competent jurisdiction may deem necessary or appropriate to restrain the CONSULTANT
from committing any violation of the covenants, obligations or agreements referred to in
this Agreement before submitting this matter to binding arbitration. These injunctive
remedies are cumulative and in addition to any other rights and remedies the COMPANY may
have against the CONSULTANT. The COMPANY and the CONSULTANT irrevocably submit to the
exclusive jurisdiction of the state courts and federal courts in the city of the COMPANY’s
headquarters (Houston, Texas) regarding the injunctive remedies set forth in this paragraph
and the interpretation and enforcement of this paragraph 15 solely insofar as the
interpretation and enforcement relate to an application for injunctive relief in accordance
with this Agreement. Further, the parties irrevocably agree that (a) the sole and exclusive
appropriate venue for any suit or proceeding relating to injunctive relief shall be in the
courts listed in this paragraph 15; (b) all claims with respect to any application for
injunctive relief shall be heard and determined exclusively in these courts; (c) these
courts will have exclusive jurisdiction over the parties to this Agreement and over the
subject matter of any dispute relating to an application for injunctive relief; and (d) each
party waives all objections and defenses based on service of process, forum, venue, or
personal or subject matter jurisdiction, as these defenses may relate to an application for
injunctive relief in a suit or proceeding under the provisions of this paragraph 15.

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

	 	 	 	 	 
	 	PARKER DRILLING COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	RONALD C. POTTER

 	 
	 	
 	 
	 	Name:  	 	 
	 	Date: 	 
	 

7

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