Document:

exv10w21

 

Exhibit 10.21

PRIDE INTERNATIONAL, INC.

1998 LONG-TERM INCENTIVE PLAN

(As Amended and Restated Effective February 17, 2005)

     1. Objectives. The Pride International, Inc. 1998 Long-Term Incentive Plan (the “Plan”) is
designed to retain selected employees of Pride International, Inc., a Delaware corporation (the
“Company”), and its Subsidiaries and reward them for making significant contributions to the
success of the Company and its Subsidiaries. These objectives are to be accomplished by making
Awards under the Plan and thereby providing Participants with a proprietary interest in the growth
and performance of the Company and its Subsidiaries.

     2. Definitions. As used herein, the terms set forth below shall have the following respective
meanings:

     “Award” means the grant of any form of ISO, Nonqualified Option, stock appreciation right,
stock award or cash award, whether granted singly, in combination or in tandem, to a Participant
pursuant to any applicable terms, conditions and limitations as the Committee may establish in
order to fulfill the objectives of the Plan.

     “Award Agreement” means a written agreement between the Company and a Participant that sets
forth the terms, conditions and limitations applicable to an Award.

     “Board” means the Board of Directors of the Company.

     “Change in Control” means, and shall be deemed to have occurred on the date of the first to
occur of any of the following:

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

 

 

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

     “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     “Committee” means such committee of two or more members of the Board as is designated by the
Board to administer the Plan, or the full Board if so designated. The Committee shall be
constituted to permit Awards under the Plan to comply with Rule 16b-3, if applicable.

     “Common Stock” means the Common Stock, no par value, of the Company.

     “Director” means an individual serving as a member of the Board.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

     “Fair Market Value” means, as of a particular date, (i) if the shares of Common Stock are
listed on the New York Stock Exchange, then the final closing sales price per share of Common Stock
as reported on New York Stock Exchange Composite Trading Listings, or a similar report selected by
the Company, on that date, or, if there shall have been no such sale so reported on that date, on
the last preceding date on which such a sale was so reported, (ii) if the shares of Common Stock
are listed on a national securities exchange other than the New York Stock Exchange, the mean
between the highest and lowest sales price per share of Common Stock on the primary such national
securities exchange on that date, or, if there shall have been no such sale so reported on that
date, on the last preceding date on which such a sale was so reported, (iii) if the shares of
Common Stock are not so listed but are quoted by The NASDAQ Stock Market, Inc., the mean between
the highest and lowest sales price per share of Common Stock on the consolidated transaction
reporting system for The NASDAQ Stock Market, Inc. on that date, or, if there shall have been no
such sale so reported on that date, on the last preceding date on which such a sale was so
reported, (iv) if the Common Stock is not so listed or quoted, the mean between the closing bid and
asked price on that date, or, if there are no quotations available for such date, on the last
preceding date on which such quotations shall be available, as reported by The NASDAQ Stock Market,
Inc., or, if not reported by The NASDAQ Stock Market, Inc., by the National Quotation Bureau, Inc.,
or (v) if none of the above are applicable, the fair market value of a share of Common Stock as
determined in good faith by the Committee.

     “ISO” means an incentive stock option within the meaning of Code Section 422.

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     “Nonqualified Option” means a nonqualified stock option within the meaning of Code Section 83.

     “Participant” means an employee of the Company or any of its Subsidiaries to whom an Award has
been made under this Plan.

     “Restricted Stock” means Common Stock that is restricted or subject to forfeiture provisions.

     “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act, or any successor rule.

     “Subsidiary” means (i) with respect to any Awards other than incentive stock options within
the meaning of Code Section 422, any corporation, limited liability company or similar entity of
which the Company directly or indirectly owns shares representing more than 50% of the voting power
of all classes or series of equity securities of such entity, which have the right to vote
generally on matters submitted to a vote of the holders of equity interests in such entity, and
(ii) with respect to Awards of incentive stock options, any subsidiary within the meaning of
Section 424(f) of the Code or any successor provision.

     3. Eligibility. All employees of the Company and its Subsidiaries are eligible for Awards
under this Plan. The Committee shall select the Participants in the Plan from time to time by the
grant of Awards under the Plan.

     4. Common Stock Available for Awards. There shall be available for Awards granted wholly or
partly in Common Stock (including rights or options which may be exercised for or settled in Common
Stock) under this Plan ten percent (10%) of the total shares of Common Stock outstanding from time
to time. Notwithstanding the foregoing, however, the maximum number of shares of Common Stock that
may be issued pursuant to ISOs shall be 1,000,000 shares. The Board and the appropriate officers
of the Company shall from time to time take whatever actions are necessary to file required
documents with governmental authorities and stock exchanges and transaction reporting systems to
make shares of Common Stock available for issuance pursuant to Awards. Common Stock related to
Awards that are forfeited or terminated, expire unexercised, are settled in cash in lieu of Common
Stock or in a manner such that all or some of the shares covered by an Award are not issued to a
Participant or are exchanged for Awards that do not involve Common Stock, shall immediately become
available for Awards hereunder.

     5. Administration. This Plan shall be administered by the Committee, which shall have full
and exclusive power to interpret this Plan and to adopt such rules, regulations and guidelines for
carrying out this Plan as it may deem necessary or proper, all of which powers shall be exercised
in the best interests of the Company and in keeping with the objectives of this Plan. The
Committee may correct any defect or supply any omission or reconcile any
inconsistency in this Plan or in any Award in the manner and to the extent the Committee deems
necessary or desirable to carry it into effect. Any decision of the Committee in the
interpretation and administration of this Plan shall lie within its sole and absolute discretion
and shall be final,

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conclusive and binding on all parties concerned. Notwithstanding anything
herein to the contrary, without the prior approval of the Company’s shareholders, Awards issued
under the Plan will not be repriced, replaced or regranted through cancellation or by decreasing
the exercise price of a previously granted Award except as provided by the adjustment provisions of
Section 14. No member of the Committee or officer of the Company to whom it has delegated
authority in accordance with the provisions of Section 6 of this Plan shall be liable for anything
done or omitted to be done by him or her, by any member of the Committee or by any officer of the
Company in connection with the performance of any duties under this Plan, except for his or her own
willful misconduct or as expressly provided by statute.

     6. Delegation of Authority. The Committee may delegate to the President and to other senior
officers of the Company its duties under this Plan pursuant to such conditions or limitations as
the Committee may establish, except that the Committee may not delegate to any person the authority
to grant Awards to, or take other action with respect to, Participants who are subject to Section
16 of the Exchange Act.

     7. Awards. The Committee shall determine the type or types of Awards to be made to each
Participant under this Plan. Each Award made hereunder shall be embodied in an Award Agreement,
which shall contain such terms, conditions and limitations as shall be determined by the Committee
in its sole discretion and shall be signed by the Participant and by the President or by any
officer of the Company to whom the President has delegated such authority for and on behalf of the
Company. An Award Agreement may include provisions for the repurchase by the Company of Common
Stock acquired pursuant to the Plan and the repurchase of a Participant’s option rights under the
Plan. Awards may consist of those listed in this Section 7 and may be granted singly, in
combination or in tandem. Awards may also be made in combination or in tandem with, in replacement
of, or as alternatives to grants or rights (a) under this Plan or any other employee plan of the
Company or any of its Subsidiaries, including the plan of any acquired entity, or (b) made to any
Company or Subsidiary employee by the Company or any Subsidiary. An Award may provide for the
granting or issuance of additional, replacement or alternative Awards upon the occurrence of
specified events, including the exercise of the original Award. The occurrence of a Change in
Control shall result in acceleration of the vesting and exercisability of, and lapse of
restrictions with respect to, all Awards. Notwithstanding anything herein to the contrary, no
Participant may be granted Awards consisting of stock options or stock appreciation rights
exercisable for more than 2,500,000 shares of Common Stock.

     (i) Stock Option. An Award may consist of a right to purchase a specified number of shares of
Common Stock at a price specified by the Committee in the Award Agreement or otherwise but, in any
case, not less than Fair Market Value on the date of grant. A stock option may be in the form of
an ISO which, in addition to being subject to applicable terms, conditions and limitations
established by the Committee, complies with Section 422 of the Code, or in the form of a
Nonqualified Option. Notwithstanding the foregoing, no ISO can be granted under the Plan more than
ten years following the Effective Date of the Plan.

     (ii) Stock Appreciation Right. An Award may consist of a right to receive a payment, in cash
or Common Stock, equal to the excess of the Fair Market Value or other

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specified valuation of a
specified number of shares of Common Stock on the date the stock appreciation right (“SAR”) is
exercised over the Fair Market Value on the date the SAR was granted, as set forth in the
applicable Award Agreement.

     (iii) Stock Award. An Award may consist of Common Stock or may be denominated in units of
Common Stock. All or part of any stock Award may be subject to conditions established by the
Committee and set forth in the Award Agreement, which conditions may include, but are not limited
to, continuous service with the Company and its Subsidiaries, achievement of specific business
objectives, increases in specified indices, attaining specified growth rates and other comparable
measurements of performance. Such Awards may be based on Fair Market Value or other specified
valuations. The certificates evidencing shares of Common Stock issued in connection with a stock
Award shall contain appropriate legends and restrictions describing the terms and conditions of the
restrictions applicable thereto.

     (iv) Cash Award. An Award may be denominated in cash with the amount of the eventual payment
subject to future service and such other restrictions and conditions as may be established by the
Committee and set forth in the Award Agreement, including, but not limited to, continuous service
with the Company and its Subsidiaries, achievement of specific business objectives, increases in
specified indices, attaining specified growth rates and other comparable measurements of
performance.

     8. Payment of Awards.

     (a) General. Payment of Awards may be made in the form of cash or Common Stock or
combinations thereof and may include such restrictions as the Committee shall determine including,
in the case of Common Stock, restrictions on transfer and forfeiture provisions.

     (b) Deferral. The Committee may, in its discretion, (i) permit selected Participants to elect
to defer payments of some or all types of Awards in accordance with procedures established by the
Committee or (ii) provide for the deferral of an Award in an Award Agreement or otherwise. Any
such deferral may be in the form of installment payments or a future lump sum payment. Any
deferred payment, whether elected by the Participant or specified by the Award Agreement or by the
Committee, may be forfeited if and to the extent that the Award Agreement so provides.

     (c) Dividends and Interest. Dividends or dividend equivalent rights may be extended to and
made part of any Award denominated in Common Stock or units of Common Stock, subject to such terms,
conditions and restrictions as the Committee may establish. The Committee may also establish rules
and procedures for the crediting of interest on deferred cash payments and dividend equivalents for
deferred payment denominated in Common Stock or units of Common Stock.

     (d) Substitution of Awards. At the discretion of the Committee, a Participant may be offered
an election to substitute an Award for another Award or Awards of the same or different type;
provided, however, that except as provided in Section 14, in no event may the

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exercise price of an
outstanding option be reduced by modification, substitution or any other method without the prior
approval of the Company’s shareholders.

     9. Stock Option Exercise. The price at which shares of Common Stock may be purchased under a
stock option shall be paid in full at the time of exercise in cash or, if permitted by the
Committee, by means of tendering Common Stock or surrendering all or part of that or any other
Award, including Restricted Stock, valued at Fair Market Value on the date of exercise, or any
combination thereof. The Committee shall determine acceptable methods for tendering Common Stock
or Awards to exercise a stock option as it deems appropriate. If permitted by the Committee,
payment may be made by successive exercises by the Participant. The Committee may provide for
procedures to permit the exercise or purchase of Awards by use of the proceeds to be received from
the sale of Common Stock issuable pursuant to an Award. Unless otherwise provided in the
applicable Award Agreement, in the event shares of Restricted Stock are tendered as consideration
for the exercise of a stock option, a number of the shares issued upon the exercise of the stock
option, equal to the number of shares of Restricted Stock used as consideration therefor, shall be
subject to the same restrictions as the Restricted Stock so submitted as well as any additional
restrictions that may be imposed by the Committee.

     10. Tax Withholding. The Company shall have the right to deduct applicable taxes from any
Award payment and withhold, at the time of delivery or vesting of cash or shares of Common Stock
under this Plan, an appropriate amount of cash or number of shares of Common Stock or a combination
thereof for payment of taxes required by law or to take such other action as may be necessary in
the opinion of the Company to satisfy all obligations for withholding of such taxes. The Committee
may also permit withholding to be satisfied by the transfer to the Company of shares of Common
Stock theretofore owned by the holder of the Award with respect to which withholding is required.
If shares of Common Stock are used to satisfy tax withholding, such shares shall be valued based on
the Fair Market Value when the tax withholding is required to be made.

     11. Amendment, Modification, Suspension or Termination. The Board may amend, modify, suspend
or terminate this Plan for the purpose of meeting or addressing any changes in legal requirements
or for any other purpose permitted by law except that (a) no amendment or alteration that would
impair the rights of any Participant under any Award previously granted to such Participant shall
be made without such Participant’s consent and (b) no amendment or alteration shall be effective
prior to approval by the Company’s shareholders to the extent such approval is determined by the
Board to be required by applicable laws, regulations or exchange requirements.

     12. Termination of Employment. Upon the termination of a Participant’s employment
(“Employment”) any unexercised, deferred or unpaid Awards shall be treated as provided in the
specific Award Agreement evidencing the Award or in any other agreement with the Participant.
Unless otherwise specifically provided in the Award Agreement or such other agreement or unless
specifically accelerated by the Committee, each Award granted pursuant to
this Plan which is a stock option shall be deemed to provide that if the Participant’s Employment
with the Company or its Subsidiaries ends for any reason whatsoever, the option shall

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immediately
terminate to the extent the option is not vested (or does not become vested as a result of such
termination of Employment) on the date the Participant’s Employment terminated.

     13. Assignability. Except as otherwise provided herein, no Award granted under this Plan
shall be sold, transferred, pledged, assigned or otherwise alienated or hypothecated by a
Participant other than by will or the laws of descent and distribution, and during the lifetime of
a Participant, any Award shall be exercisable only by him, or, in the case of a Participant who is
mentally incapacitated, the Award shall be exercisable by his guardian or legal representative.
The Committee may prescribe and include in applicable Award Agreements other restrictions on
transfer. Any attempted assignment or transfer in violation of this Section 13 shall be null and
void. Upon the Participant’s death, the personal representative or other person entitled to
succeed to the rights of the Participant (the “Successor Participant”) may exercise such rights. A
Successor Participant must furnish proof satisfactory to the Company of his or her right to
exercise the Award under the Participant’s will or under the applicable laws of descent and
distribution.

     Subject to approval by the Committee in its sole discretion, all or a portion of the Awards
granted to a Participant under the Plan which are not intended to be ISOs may be transferable by
the Participant, to the extent and only to the extent specified in such approval, to (i) the
children or grandchildren of the Participant (“Immediate Family Members”), (ii) a trust or trusts
for the exclusive benefit of such Immediate Family Members (“Immediate Family Member Trusts”), or
(iii) a partnership or partnerships in which such Immediate Family Members have at least
ninety-nine percent (99%) of the equity, profit and loss interests (“Immediate Family Member
Partnerships”); provided that the Award Agreement pursuant to which such Awards are granted (or an
amendment thereto) must expressly provide for transferability in a manner consistent with this
Section. Subsequent transfers of transferred Awards shall be prohibited except by will or the laws
of descent and distribution, unless such transfers are made to the original Participant or a person
to whom the original Participant could have made a transfer in the manner described herein. No
transfer shall be effective unless and until written notice of such transfer is provided to the
Committee, in the form and manner prescribed by the Committee. Following transfer, any such Awards
shall continue to be subject to the same terms and conditions as were applicable immediately prior
to transfer, and, except as otherwise provided herein, the term “Participant” shall be deemed to
refer to the transferee. The events of termination of Employment in Section 12 shall continue to
be applied with respect to the original Participant, following which the Awards shall be
exercisable by the transferee only to the extent and for the periods specified in this Plan and the
Award Agreement.

     14. Adjustments.

     (a) The existence of outstanding Awards shall not affect in any manner the right or power of
the Company or its shareholders to make or authorize any or all adjustments, recapitalizations,
reorganizations or other changes in the capital stock of the Company or its business or any merger
or consolidation of the Company, or any issue of bonds, debentures, preferred or prior preference
stock (whether or not such issue is prior to, on a parity with or
junior to the Common Stock) or the dissolution or liquidation of the Company, or any sale or

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transfer of all or any part of its assets or business, or any other corporate act or proceeding of
any kind, whether or not of a character similar to that of the acts or proceedings enumerated
above.

     (b) In the event of any subdivision or consolidation of outstanding shares of Common Stock or
declaration of a dividend payable in shares of Common Stock or capital reorganization or
reclassification or other transaction involving an increase or reduction in the number of
outstanding shares of Common Stock, the Committee may adjust proportionally (i) the number of
shares of Common Stock reserved under this Plan and covered by outstanding Awards denominated in
Common Stock or units of Common Stock; (ii) the exercise or other price in respect of such Awards;
and (iii) the appropriate Fair Market Value and other price determinations for such Awards. In the
event of any consolidation or merger of the Company with another corporation or entity or the
adoption by the Company of a plan of exchange affecting the Common Stock or any distribution to
holders of Common Stock of securities or property (other than normal cash dividends or dividends
payable in Common Stock), the Committee shall make such adjustments or other provisions as it may
deem equitable, including adjustments to avoid fractional shares, to give proper effect to such
event. In the event of a corporate merger, consolidation, acquisition of property or stock,
separation, reorganization or liquidation, the Committee shall be authorized, in its discretion,
(i) to issue or assume stock options, regardless of whether in a transaction to which Section
424(a) of the Code applies, by means of substitution of new options for previously issued options
or an assumption of previously issued options, (ii) to make provision, prior to the transaction,
for the acceleration of the vesting and exercisability of, or lapse of restrictions with respect
to, Awards (to the extent not otherwise provided under Section 7) and the termination of options
that remain unexercised at the time of such transaction or (iii) to provide for the acceleration of
the vesting and exercisability of the options and SARs and the cancellation thereof (to the extent
not otherwise provided under Section 7) in exchange for such payment as shall be mutually agreeable
to the Participant and the Committee.

     15. Restrictions. No Common Stock or other form of payment shall be issued with respect to
any Award unless the Company shall be satisfied based on the advice of its counsel that such
issuance will be in compliance with applicable federal and state securities laws. It is the intent
of the Company that this Plan comply with Rule 16b-3 with respect to persons subject to Section 16
of the Exchange Act unless otherwise provided herein or in an Award Agreement, that any ambiguities
or inconsistencies in the construction of this Plan be interpreted to give effect to such intention
and that, if any provision of this Plan is found not to be in compliance with Rule 16b-3, such
provision shall be null and void to the extent required to permit this Plan to comply with Rule
16b-3. Certificates evidencing shares of Common Stock delivered under this Plan may be subject to
such stop transfer orders and other restrictions as the Committee may deem advisable under the
rules, regulations and other requirements of the Securities and Exchange Commission, any securities
exchange or transaction reporting system upon which the Common Stock is then listed and any
applicable federal and state securities law. The Committee may cause a legend or legends to be
placed upon any such certificates to make appropriate reference to such restrictions.

     16. Unfunded Plan. Insofar as it provides for Awards of cash, Common Stock or rights thereto,
this Plan shall be unfunded. Although bookkeeping accounts may be

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established with respect to
Participants who are entitled to cash, Common Stock or rights thereto under this Plan, any such
accounts shall be used merely as a bookkeeping convenience. The Company shall not be required to
segregate any assets that may at any time be represented by cash, Common Stock or rights thereto,
nor shall this Plan be construed as providing for such segregation, nor shall the Company, the
Board or the Committee be deemed to be a trustee of any cash, Common Stock or rights thereto to be
granted under this Plan. Any liability or obligation of the Company to any Participant with
respect to a grant of cash, Common Stock or rights thereto under this Plan shall be based solely
upon any contractual obligations that may be created by this Plan and any Award Agreement, and no
such liability or obligation of the Company shall be deemed to be secured by any pledge or other
encumbrance on any property of the Company. None of the Company, the Board or the Committee shall
be required to give any security or bond for the performance of any obligation that may be created
by this Plan.

     17. Parachute Payment Limitation. Notwithstanding any contrary provision of the Plan, the
Committee may provide in the Award Agreement or in any other agreement with the Participant for a
limitation on the acceleration of vesting and exercisability of unmatured Awards to the extent
necessary to avoid or mitigate the impact of the golden parachute excise tax under Section 4999 of
the Code on the Participant or may provide for a supplemental payment to be made to the Participant
as necessary to offset or mitigate the impact of the golden parachute excise tax on the
Participant. In the event the Award Agreement or other agreement with the Participant does not
contain any contrary provision regarding the method of avoiding or mitigating the impact of the
golden parachute excise tax under Section 4999 of the Code on the Participant, then notwithstanding
any contrary provision of this Plan, the aggregate present value of all parachute payments payable
to or for the benefit of a Participant, whether payable pursuant to this Plan or otherwise, shall
be limited to three times the Participant’s base amount less one dollar and, to the extent
necessary, the exercisability of an unmatured Award shall be reduced in order that this limitation
not be exceeded. For purposes of this Section 17, the terms “parachute payment,” “base amount” and
“present value” shall have the meanings assigned thereto under Section 280G of the Code. It is the
intention of this Section 17 to avoid excise taxes on the Participant under Section 4999 of the
Code or the disallowance of a deduction to the Company pursuant to Section 280G of the Code.

     18. Governing Law. This Plan and all determinations made and actions taken pursuant hereto,
to the extent not otherwise governed by mandatory provisions of the Code or the securities laws of
the United States, shall be governed by and construed in accordance with the laws of the State of
Texas.

     19. Effective Date of Plan. This Plan shall be effective as of the date (the “Effective
Date”) it is originally approved by the Board of Directors of the Company. Notwithstanding the
foregoing, the adoption of this Plan is expressly conditioned upon the approval by written consent
of the holders of a majority of shares of outstanding shares of Common Stock present, or
represented, and entitled to vote at the annual meeting of shareholders in 1998. If the
shareholders of the Company should fail so to approve this Plan at such annual meeting, this Plan
shall terminate and cease to be of any further force or effect and all grants of
Awards hereunder shall be null and void. Notwithstanding anything herein to the contrary, in no

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event may any new grants of Awards be made hereunder after May 12, 2008, the tenth (10th)
anniversary of the date that shareholders approved the Plan.

	 	 	 
	

	 	Attested to by the Secretary of Pride International,
Inc. as adopted by the Board of Directors and
Shareholders of Pride International, Inc. effective
as of the 12th day of May, 1998 (the “Effective
Date”) and as amended and restated by the Board
effective February 17, 2005.
	 
	 	 
	 
	 	/s/ W. Gregory Looser
	

	 	 
	

	 	Secretary

10exv10w36

 

EXHIBIT 10.36

PRIDE INTERNATIONAL, INC.

EMPLOYMENT/NON-COMPETITION/

CONFIDENTIALITY AGREEMENT

DAVID A. BOURGEOIS

 

 

EMPLOYMENT/NON-COMPETITION/CONFIDENTIALITY AGREEMENT

	 	 	 
	DATE:

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

	 	Pride International, Inc.,
	

	 	a Delaware corporation
	

	 	5847 San Felipe, Suite 3300
	

	 	Houston, Texas 77057
	 
	 	 
	EMPLOYEE:

	 	David A. Bourgeois
	

	 	120 Central Avenue
	

	 	Houma, LA 70364

          This Employment/Non-Competition/Confidentiality Agreement by and between Pride International,
Inc. (the “Company” and as further defined below) and David A. Bourgeois (“Employee”) dated as of
the date set forth on the signature page below (the “Agreement”), but effective as of the date set
forth in Section 2.04 below, is made on the terms as herein provided.

PREAMBLE

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

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

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

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

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

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

 

 

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

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

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

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

AGREEMENT

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

I. PRIOR AGREEMENTS/CONTRACTS

	 	1.01  	PRIOR AGREEMENTS. On and as of 12:00 o’clock noon of the Effective Date all
prior employment and non-competition contracts between Company and Employee are hereby
amended, modified and superseded by this Agreement insofar as future employment,
compensation, non-competition, confidentiality, accrual of payments or any form of
compensation or benefits from the Company are concerned. This Agreement does not
release or relieve Company from its liability or obligation with respect to any
compensation, payments or benefits already accrued to Employee, nor to any vesting of
benefits or other rights which are attributable to length of employment, seniority or
other such matters. This agreement does not relieve Employee of any prior
non-competition or confidentiality obligations and agreements and the same are hereby
modified and amended as to future matters and future confidentiality even as to matters
accruing prior to the Effective Date hereof.

II. DEFINITION OF TERMS

	 	2.01  	COMPANY. Company means Pride International, Inc., a Delaware corporation, as
the same presently exists, as well as any and all successors, regardless of the

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	 	   	nature of the entity or the state or nation of organization, whether by
reorganization, merger, consolidation, absorption or dissolution. For the purpose
of the Agreement, Company includes all subsidiaries and affiliates of the Company to
the extent such subsidiary and/or affiliate is carrying on any portion of the
business of the Company or a business similar to that being conducted by the
Company.
	 
	 	2.02  	EXECUTIVE/OFFICER/EMPLOYEE. Executive/Officer/Employee means David A.
Bourgeois.
	 
	 	2.03  	OFFICE/POSITION/TITLE. The Office, Position and Title for which the Employee
is employed is that of Vice President – U.S. Gulf of Mexico Operations of the Company
and carries with it such duties, responsibilities, rights, benefits and privileges as
may reasonably be assigned to the Employee as are customary and usual for such
position.
	 
	 	2.04  	EFFECTIVE DATE. The Agreement becomes effective and binding as of August 13,
2004.
	 
	 	2.05  	CHANGE IN CONTROL. The term “Change in Control” of the Company shall mean, and
shall be deemed to have occurred on the date of the first to occur of any of the
following:

	 	a.  	there occurs a change in control of the Company of the nature
that would be required to be reported in response to item 6(e) of Schedule 14A
of Regulation 14A or Item 1 of Form 8(k) promulgated under the Securities
Exchange Act of 1934 as in effect on the date of the Agreement, or if neither
item remains in effect, any regulations issued by the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934 which serve similar
purposes;
	 
	 	b.  	any “person” (as such term is used in Sections 12(d) and
14(d)(2) of the Securities Exchange Act of 1934) is or becomes a beneficial
owner, directly or indirectly, of securities of the Company representing twenty
percent (20%) or more of the combined voting power of the Company’s then
outstanding securities;
	 
	 	c.  	the individuals who were members of the Board of Directors of
the Company (the “Board”) immediately prior to a meeting of the shareholders of
the Company involving a contest for the election of directors shall not
constitute a majority of the Board of Directors following such election;
	 
	 	d.  	the Company shall have merged into or consolidated with another
corporation, or merged another corporation into the Company, on a basis whereby
less than fifty percent (50%) of the total voting power of the surviving
corporation is represented by shares held by former shareholders of the Company
prior to such merger or consolidation; or

-3-

 

	 	e.  	the Company shall have sold, transferred or exchanged all, or
substantially all, of its assets to another corporation or other entity or
person.

	 	2.06  	TERMINATION. The term “Termination” shall mean termination of the employment
of Employee with the Company (including death and disability (as described below)) for
any reason other than cause (as described below) or voluntary resignation (as described
below). Termination includes “Constructive Termination” as described below.
Termination includes termination at the end of any “Employment Period” (as hereinafter
defined) due to non-renewal or failure to extend this Agreement for any reason except
for cause.

	 	a.  	The term “disability” means physical or mental incapacity
qualifying Employee for a long-term disability under the Company’s long-term
disability plan. If no such plan exists on the Effective Date, the term
“disability” means physical or mental incapacity as determined by a doctor
jointly selected by Employee and the Board of Directors of the Company
qualifying Employee for long-term disability under reasonable employment
standards.
	 
	 	b.  	The term “cause” means: (i) the willful and continued failure
of Employee substantially to perform his duties with the Company (other than
any failure due to physical or mental incapacity) after a demand for
substantial performance is delivered to him by the Board of Directors which
specifically identifies the manner in which the Board believes he has not
substantially performed his duties, (ii) willful misconduct materially and
demonstrably injurious to the Company, or (iii) material violation of the
covenant not to compete (except after termination after Change in Control as
discussed herein). No act or failure to act by Employee shall be considered
“willful” unless done or omitted to be done by him not in good faith and
without reasonable belief that his action or omission was in the best interest
of the Company. The unwillingness of Employee to accept any or all of a change
in the nature or scope of his position, authorities or duties, a reduction in
his total compensation or benefits, or other action by or at request of the
Company in respect of his position, authority, or responsibility that is
contrary to this Agreement, may not be considered by the Board of Directors to
be a failure to perform or misconduct by Employee. Notwithstanding the
foregoing, Employee shall not be deemed to have been terminated for cause for
purposes of the Agreement unless and until there shall have been delivered to
him a copy of a resolution, duly adopted by a vote of three-fourths of the
entire Board of Directors of the Company at a meeting of the Board of Directors
called and held (after reasonable notice to Employee and an opportunity for
Employee and his counsel to be heard before the Board) for the purpose of
considering whether Employee has been guilty of such a willful failure to
perform or such willful misconduct as justifies termination for cause
hereunder, finding that in the good faith opinion of the Board of Directors
Employee has been guilty thereof and specifying the particulars thereof.

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	 	c.  	The term “Constructive Termination” means any circumstance by
which the actions of the Company either reduce or change Employee’s title,
position, duties, responsibilities or authority to such an extent or in such a
manner as to relegate Employee to a position not substantially similar to that
which he held prior to such reduction or change and which would degrade,
embarrass or otherwise make it unreasonable for Employee to remain in the
employment of the Company; and includes a violation by the Company of the
employment provisions and conditions of this Agreement.
	 
	 	d.  	The resignation of Employee shall be deemed “voluntary” if it
is for any reason other than one or more of the following:

	 	(i)  	Employee’s resignation or retirement is
requested by the Company other than for cause;
	 
	 	(ii)  	Any significant adverse change in the nature or
scope of Employee’s position, authorities or duties from those
described in this Agreement;
	 
	 	(iii)  	Any reduction in Employee’s total compensation
or benefits from that provided in the Compensation and Benefits Section
hereof;
	 
	 	(iv)  	The material breach by the Company of any other
provision of this Agreement;
	 
	 	(v)  	Any requirement of the Company that Employee
relocate more than 50 miles from either the primary location from which
Employee rendered his duties as of the Effective Date or downtown
Houston, Texas;
	 
	 	(vi)  	Any action by the Company which would
constitute Constructive Termination; or
	 
	 	(vii)  	Non-renewal or failure to extend any
employment term, contrary to the wishes of Employee.

Termination that entitles Employee to the payments and benefits provided in Section 3.05 or
4.02 hereof shall not be deemed or treated by the Company as the termination of Employee’s
employment or the forfeiture of his participation, award, or eligibility, for the purpose of
any plan, practice or agreement of the Company referred to in the Compensation and Benefits
Section hereof, if, and to the extent that, such benefits are provided under Section 3.05 or
4.02 hereof.

	 	2.07  	CUSTOMER. The term “Customer” includes all persons, firms or entities that are
purchasers or end-users of services or products offered, provided, developed, designed,
sold or leased by the Company during the relevant time periods, and all persons, firms
or entities which control, or which are controlled by, the same person, firm or entity
which controls such purchase.

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III. EMPLOYMENT

	 	3.01  	EMPLOYMENT. Except as otherwise provided in the Agreement, the Company hereby
agrees to continue Employee in its employ, and Employee hereby agrees to remain in the
employ of the Company, for the Employment Period (as defined below). During the
Employment Period (as defined below), Employee shall exercise such position and
authority and perform such responsibilities as are commensurate with such.
	 
	 	3.02  	BEST EFFORTS AND OTHER EMPLOYMENT OBLIGATIONS OF EMPLOYEE; BUSINESS EXPENSES
AND OFFICE AND OTHER SERVICES.

	 	a.  	Employee agrees that he will at all times faithfully,
industriously and to the best of his ability, experience and talents, perform
all of the duties that may be required of and from him pursuant to the express
and implicit terms hereof, to the reasonable satisfaction of the Company.
	 
	 	b.  	Employee shall devote his normal and regular business time,
attention and skill to the business and interests of the Company, and the
Company shall be entitled to all of the benefits, profits or other issue
arising from or incident to all work, services and advice of Employee performed
for the Company. Such employment shall be considered “full time” employment.
Employee shall also have the right to devote such incidental and immaterial
amounts of his time which are not required for the full and faithful
performance of his duties hereunder to any outside activities and businesses
which are not being engaged in by the Company and which shall not otherwise
interfere with the performance of his duties hereunder. Notwithstanding the
foregoing, it shall not be a violation of the Agreement for Employee to (i)
serve on corporate, civic or charitable boards or committees, (ii) deliver
lectures, fulfill speaking engagements or teach at educational institutions and
(iii) manage personal investments, so long as such activities do not
significantly interfere with the performance of Employee’s responsibilities
hereunder. Employee shall have the right to make investments in any business
provided such investment does not result in a violation of the Non-Competition
Section of this Agreement.
	 
	 	c.  	Employee acknowledges and agrees that Employee owes a fiduciary
duty to the Company. In keeping with these duties, Employee shall make full
disclosure to the Company of all business opportunities pertaining to the
Company’s business and shall not appropriate for Employee’s own benefit
business opportunities concerning the subject matter of the fiduciary
relationship.
	 
	 	d.  	Employee shall not intentionally take any action which he knows
would not comply with United States laws applicable to Employee’s actions on
behalf of the Company, and/or any of its subsidiaries or affiliates,

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	 	   	including specifically, without limitation, the United States Foreign
Corrupt Practices Act, generally codified in 15 USC 78 (the “FCPA”), as the
FCPA may hereafter be amended, and/or its successor statutes.
	 
	 	e.  	During the employment relationship and after the employment
relationship terminates, Employee agrees to refrain from any disparaging
comments about the Company, any affiliates, or any current or former officer,
director or employee of the Company or any affiliate, and Employee agrees not
to take any action, or assist any person in taking any other action, that is
materially adverse to the interests of the Company or any affiliate or
inconsistent with fostering the goodwill of the Company and its affiliates;
provided, however, that nothing in this Agreement shall apply to or restrict in
any way the communication of information by Employee to any state or federal
law enforcement agency or require notice to the Company thereof, and Employee
will not be in breach of the covenant contained above solely by reason of his
testimony which is compelled by process of law. The Company and its
affiliates, officers and directors agree to refrain from any disparaging
comments about Employee; provided, however, that nothing in this Agreement
shall apply to or restrict in any way the communication of information by the
Company and its affiliates, officers and directors to any state or federal law
enforcement agency or require notice to Employee thereof, and the Company and
its affiliates, officers and directors will not be in breach of the covenant
contained above solely by reason of testimony which is compelled by process of
law.
	 
	 	f.  	During the Employment Period, Employee shall be entitled to
receive prompt reimbursement for all reasonable expenses incurred by Employee
in accordance with the most favorable policies, practices and procedures of the
Company as in effect from time to time.
	 
	 	g.  	During the Employment Period, the Company shall furnish
Employee with office space, secretarial assistance and such other facilities
and services as shall be suitable to Employee’s position and adequate for the
performance of Employee’s duties hereunder.

	 	3.03  	TERM OF EMPLOYMENT. Employee’s Regular Employment will commence on the
Effective Date and will be for a term ending at 12:00 o’clock midnight on August 13,
2005 (the “Employment Period”); thereafter, the Employment Period will be automatically
extended for successive terms of one (1) year commencing on each anniversary of the
Effective Date, unless the Company or Employee gives written notice to the other that
employment will not be renewed or continued after the next scheduled expiration date
which is not less than one (1) year after the date that the notice of non-renewal was
given.
	 
	 	3.04  	COMPENSATION AND BENEFITS. During the Employment Period Employee shall receive
the following compensation and benefits:

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	 	a.  	Employee will receive an annual base salary of not less than
$265,000.00, with the opportunity for increases, from time to time thereafter,
which are in accordance with the Company’s regular executive compensation
practices (the “Annual Base Salary”). The Annual Base Salary will be reviewed
at least annually.
	 
	 	b.  	Employee will be eligible to participate on a reasonable basis,
and to continue his existing participation, in annual bonus, stock option and
other incentive compensation plans which provide opportunities to receive
compensation in addition to his Annual Base Salary which are at least equal to
the opportunities provided by the Company for executives with comparable
duties.
	 
	 	c.  	Employee will be entitled to receive and participate in
employee benefits (including, but not limited to, medical, life, health,
accident and disability insurance and disability benefits) and perquisites
which are at least equal to those provided by the Company to executives with
comparable duties.
	 
	 	d.  	Employee will receive paid vacation days each year to the same
extent as provided to executives with comparable duties.
	 
	 	e.  	Employee shall receive a monthly automobile allowance in an
amount not less than $750.00.
	 
	 	f.  	Employee will participate, or if dependent on Employee’s
election, will be eligible to participate in all other executive incentive
stock and benefit plans approved and offered by the Company.

	 	3.05  	TERMINATION WITHOUT CHANGE IN CONTROL. Notwithstanding anything herein to the
contrary, the Company shall have the right to terminate Employee’s employment at any
time during the Employment Period (including any extended term). Should the Company
choose not to renew or extend the Employment Period of the Agreement or choose to
terminate Employee during, or at the end of, the Employment Period, or in the event of
death or disability of Employee, if the termination is not after a Change in Control
and is not for cause, the Company shall, within thirty (30) days following such
termination, pay or provide to Employee (or his Executor, Administrator or Estate in
the event of death, as soon as reasonably practical):

	 	a.  	An amount equal to one (1) full year of his base salary, which
base salary is here defined as twelve (12) times the then current monthly
salary in effect for Employee and all other benefits due him based upon the
salary in effect on the date of Termination (but not less than the highest
annual base salary paid to Employee during any of the three (3) years
immediately preceding his date of Termination). There shall be deducted only
such amounts as may be required by law to be withheld for taxes and other
applicable deductions.

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	 	b.  	The Company shall provide to Employee for a period of one (1)
full year following the date of his Termination, life, health, accident and
disability insurance coverages which are not less than the highest benefits
furnished to Employee during the term of this Agreement.
	 
	 	c.  	An amount equal to the target award for Employee under the
Company’s annual bonus plan for the fiscal year in which Termination occurs;
provided, however, that (i) if Employee has deferred his award for such year
under a Company plan, the payment due Employee under this subparagraph shall be
paid in accordance with the terms of the deferral or as specified by Employee
and (ii) if the Company has not specified a target award for such year, the
amount will be equal to fifty percent (50%) of the maximum percentage of
Employee’s Annual Base Salary Employee may be entitled to under the Company’s
annual bonus plan in such year.
	 
	 	d.  	The Company will pay, distribute and otherwise provide to
Employee the amount and value of his entire plan account and interest under any
retirement plan, employee benefit plan, investment plan or stock ownership
plan, if any exists on the date of his Termination, and all employer
contributions made or payable to any such plan for his account prior to the end
of the month in which his termination occurs shall be deemed vested and payable
to him; provided, however, that in the event any such employer contributions
are prohibited from being deemed vested and payable for any reason (other than
due to a lack of Employee’s consent), the total amount of such employer
contributions shall be paid to Employee in a lump sum outside of any such plan.
Such payment or distribution shall be made in accordance with the elections
made by Employee with respect to distributions in accordance with the plan as
if Employee’s employment with the Company terminated at the end of the month in
which Termination occurs.
	 
	 	e.  	All stock options and awards to which Employee is entitled will
immediately vest and the time for exercising any option will be as specified in
the plan as if Employee were still employed by the Company; provided, however,
that if the immediate vesting of all benefits under the plan is not permitted
by the plan, then the benefits will be vested only to the extent authorized or
permitted by the plan.
	 
	 	f.  	With respect to any qualified or non-qualified retirement
pension plan that may be adopted by the Company after the Effective Date, if
Employee elects to treat Termination as retirement then on the date of
Termination, Employee shall be deemed to have retired from the Company. At
that time, or at such later time as he may elect consistent with the terms of
any such applicable plan or benefit, in order to receive benefits or avoid or
minimize any applicable early pension reduction provisions, he shall be
entitled to commence to receive the retirement benefits to which he is entitled
under such plan(s). Employee may treat the termination as

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	 	   	termination other than “retirement” if Employee so elects and may defer
“retirement” to a later date if permitted by any applicable plan(s).
	 
	 	g.  	The “Compensation and Benefits” section hereof shall be
applicable in determining the payments and benefits due Employee under this
section and if Termination occurs after a reduction in all or part of
Employee’s total compensation or benefits, the lump sum severance allowance and
other compensation and benefits payable to him pursuant to this section shall
be based upon his compensation and benefits before the reduction.
	 
	 	h.  	If any provision of this Section cannot, in whole or in part,
be implemented and carried out under the terms of the applicable compensation,
benefit or other plan or arrangement of the Company because Employee has ceased
to be an actual employee of the Company, due to insufficient or reduced
credited service based upon his actual employment by the Company or because the
plan or arrangement has been terminated or amended after the Effective Date, or
for any other reason, the Company itself shall pay or otherwise provide the
equivalent of such rights, benefits and credits for such benefits to the
Employee, his dependents, beneficiaries and estate as if Employee’s employment
had not been terminated.
	 
	 	i.  	All life, health, hospitalization, medical and accident
benefits available to Employee’s spouse and dependents shall continue for the
same term as Employee’s benefits. If Employee dies, all benefits will be
provided for a term of one (1) year (or two (2) years if after a Change in
Control) after the date of death of Employee.
	 
	 	j.  	The Company’s obligation under this Section to continue to pay
or provide health care, life, accident and disability insurance to Employee,
Employee’s spouse and Employee’s dependents shall be reduced when and to the
extent any such benefits are paid or provided to Employee by another employer;
provided, however, that Employee shall have all rights, if any, afforded to
retirees to convert group life insurance coverage to the individual life
insurance coverage as, to the extent of, and whenever his group life insurance
coverage under this Section is reduced or expires. Apart from this
subparagraph, Employee shall have and be subject to no obligation to mitigate.
	 
	 	k.  	The Company shall deduct applicable withholding taxes in
performing its obligations under this Section.

Nothing in this Section is intended, nor shall be deemed or interpreted, to be an amendment
to any compensation, benefit or other plan of the Company. To the extent the Company’s
performance under this Section includes the performance of the Company’s obligations to
Employee under any other plan or under another agreement between the Company and Employee,
the rights of Employee under such other plan or

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other agreement, which are discharged under the Agreement, are discharged, surrendered, or
released pro tanto.

IV. CHANGE IN CONTROL

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

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

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

V. NON COMPETITION AND CONFIDENTIALITY/PROTECTION OF INFORMATION

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

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

	 	a.  	work for, become an employee of, invest in, provide consulting
services to or in any way engage in any business which (i) is primarily engaged
in the drilling and workover of oil and gas wells within the geographical area
described in Section 5.02(e) and (ii) actually competes to a substantial extent
with the Company; or
	 
	 	b.  	provide, sell, offer to sell, lease, offer to lease, or solicit
any orders for any products or services which the Company provided and with
regard to which Employee had direct or indirect supervision or control, within
one (1) year preceding Employee’s termination of employment, to or from any
person, firm or entity which was a Customer for such products or services of
the Company during the one (1) year preceding such termination from whom the
Company had solicited business during such one (1) year; or
	 
	 	c.  	solicit, aid, counsel or encourage any officer, director,
employee or other individual to (i) leave his or her employment or position
with the Company, (ii) compete with the business of the Company, or (iii)
violate the terms of any employment, non-competition or similar agreement with
the Company; or
	 
	 	d.  	employ, directly or indirectly, permit the employment of,
contract for services or work to be performed by, or otherwise use, utilize or
benefit from the services of any officer, director, employee or any other
individual holding a position with the Company within two (2) years after the
date of termination of employment of Employee with the Company or within two
(2) years after such officer, director, employee or individual terminated
employment with the Company, whichever period expires earlier; provided
however, Employee can seek written consent from the Company to hire an officer,
director, employee or individual who has terminated employment with the
Company, and Company consent will not be unreasonably withheld.

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

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

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in which it was divulged and the person to whom it was divulged it would likely
cause damage to the Company or constitute a material detriment to the Company.

	 	5.04  	COMPANY REMEDIES FOR VIOLATION OF NON-COMPETITION OR CONFIDENTIALITY/PROTECTION
OF INFORMATION PROVISIONS. Without limiting the right of the Company to pursue all
other legal and equitable rights available to it for violation of any of the
obligations and covenants made by Employee herein, it is agreed that:

	 	a.  	the skills, experience and contacts of Employee are of a
special, unique, unusual and extraordinary character which give them a peculiar
value;
	 
	 	b.  	because of the business of the Company, the restrictions agreed
to by Employee as to time and area contained in the Agreement are reasonable;
and
	 
	 	c.  	the injury suffered by the Company by a violation of any
obligation or covenant in the Agreement resulting from loss of profits created
by (i) the competitive use of such skills, experience contacts and otherwise
and/or (ii) the use or communication of any information deemed confidential
herein will be difficult to calculate in damages in an action at law and cannot
fully compensate the Company for any violation of any obligation or covenant in
the Agreement, accordingly:

	 	(i)  	the Company shall be entitled to
injunctive relief to prevent violations thereof and prevent
Employee from rendering any services to any person, firm or
entity in breach of such obligation or covenant and to prevent
Employee from divulging any confidential information; and

	 	(ii)  	compliance with the Agreement is
a condition precedent to the Company’s obligation to make
payments of any nature to Employee, subject to the other
provisions hereof.

	 	5.05  	TERMINATION OF BENEFITS FOR VIOLATION OF NON-COMPETITION AND
CONFIDENTIALITY/PROTECTION OF INFORMATION PROVISIONS. If Employee materially violates
the confidentiality/protection of information and/or non-competition obligations and
covenants herein or any other related agreement he may have signed as an employee of
the Company, Employee agrees there shall be no obligation on the part of the Company to
provide any payments or benefits (other than payments or benefits already earned or
accrued) described in Section 3.05 of the Agreement, subject to the provision of
Section 6.01 hereof. There will be no withholding of benefits or payments due to a
violation of the non-competition obligations hereof if the termination occurred after a
Change in Control, and Employee will not be bound by the non-competition provisions if
terminated after a Change in Control.

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	 	5.06  	REFORMATION OF SCOPE. If the provisions of the confidentiality and/or
non-competition obligations and covenants should ever be deemed to exceed the time,
geographic or occupational limitations permitted by the applicable law, Employee and
the Company agree that such provisions shall be and are hereby reformed to the maximum
time, geographic or occupational limitations permitted by the applicable law, and the
determination of whether Employee violated such obligation and covenant will be based
solely on the limitation as reformed.

	VI.  	GENERAL

	 	6.01  	ENFORCEMENT COSTS. The Company is aware that upon the occurrence of a Change
in Control, or under other circumstances even when a Change in Control has not
occurred, the Board of Directors or a stockholder of the Company may then cause or
attempt to cause the Company to refuse to comply with its obligations under the
Agreement, or may cause or attempt to cause the Company to institute, or may institute,
litigation seeking to have the Agreement declared unenforceable, or may take, or
attempt to take other action to deny Employee the benefits intended under the
Agreement; or actions may be taken to enforce the non-competition or confidentiality
provisions of the Agreement. In these circumstances, the purpose of the Agreement
could be frustrated. It is the intent of the parties that Employee not be required to
incur the legal fees and expenses associated with the protection or enforcement of his
rights under the Agreement by litigation or other legal action because such costs would
substantially detract from the benefits intended to be extended to Employee hereunder
nor be bound to negotiate any settlement of his rights hereunder under threat of
incurring such costs. Accordingly, if at any time after the Effective Date, it should
appear to Employee that the Company is or has acted contrary to or is failing or has
failed to comply with any of its obligations under the Agreement for the reason that it
regards the Agreement to be void or unenforceable, that Employee has violated the terms
of the Agreement, or for any other reason, or that the Company has purported to
terminate his employment for cause or is in the course of doing so, or is withholding
payments or benefits, or is threatening to withhold payments or benefits, contrary to
the Agreement, or in the event that the Company or any other person takes any action to
declare the Agreement void or unenforceable, or institutes any litigation or other
legal action designed to deny, diminish or to recover from Employee the benefits
provided or intended to be provided to him hereunder, and Employee has acted in good
faith to perform his obligations under the Agreement, the Company irrevocably
authorizes Employee from time to time to retain counsel of his choice at the expense of
the Company to represent him in connection with the protection and enforcement of his
rights hereunder including, without limitation, representation in connection with
termination of his employment or withholding of benefits or payments contrary to the
Agreement or with the initiation or defense of any litigation or any other legal
action, whether by or against Employee or the Company or any director, officer,
stockholder or other person affiliated with the Company, in any jurisdiction. The
Company is not authorized to withhold the periodic payments of attorney’s fees and
expenses hereunder based upon any belief or assertion by the Company that Employee has

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not acted in good faith or has violated the Agreement. If the Company subsequently
establishes that Employee was not acting in good faith and has violated the
Agreement, Employee will be liable to the Company for reimbursement of amounts paid
due to Employee’s actions not based on good faith and in violation of the Agreement.
The reasonable fees and expenses of counsel selected from time to time by Employee
hereinabove provided shall be paid or reimbursed to Employee by the Company, on a
regular, periodic basis within thirty (30) days after presentation by Employee of a
statement or statements prepared by such counsel in accordance with its customary
practices, up to a maximum aggregate amount of $250,000.00.

	 	6.02  	INCOME, EXCISE OR OTHER TAX LIABILITY. Employee will be liable for and will
pay all income tax liability by virtue of any payments made to Employee under this
Agreement, as if the same were earned and paid in the normal course of business and not
the result of a Change in Control and not otherwise triggered by the “golden parachute”
or excess payment provisions of the Internal Revenue Code of the United States, which
would cause additional tax liability to be imposed. If any additional income tax,
excise or other taxes are imposed on any amount or payment in the nature of
compensation paid or provided to or on behalf of Employee, the Company shall “gross-up”
Employee for such tax liability by paying to Employee an amount sufficient so that
after payment of all such taxes so imposed, Employee’s position on an after-tax basis
is what it would have been had no such additional taxes been imposed. Employee will
cooperate with the Company to minimize the tax consequences to Employee and to the
Company so long as the actions proposed to be taken by the Company do not cause any
additional tax consequences to Employee and do not prolong or delay the time that
payments are to be made, or reduce the amount of payments to be made, unless Employee
consents in writing to any delay or deferment of payment.

	 	6.03  	PAYMENT OF BENEFITS UPON TERMINATION FOR CAUSE. If the termination of Employee
is not after a Change in Control and is for cause, the Company will have the right to
withhold all payments other than (i) what is accrued and owing under the terms of any
employee benefit plan maintained by the Company, and (ii) those specified in Section
6.01; provided however, that if a final judgment is entered finding that cause did not
exist for termination, the Company will pay all benefits to Employee to which he would
have been entitled had Employee’s termination not been for cause, plus interest on all
amounts withheld from Employee at the rate specified for judgments under Article
5069-1.05 V.A.T.S. but not less than ten percent (10%) per annum. If the termination
for cause occurs after a Change in Control, the Company shall not have the right to
suspend or withhold payments to Employee under any provision of the Agreement until or
unless a final judgment is entered upholding the Company’s determination that the
termination was for cause, in which event Employee will be liable to the Company for
all amounts paid, plus interest at the rate allowed for judgments under Article
5069-1.05 V.A.T.S.

-16-

 

	 	6.04  	NON-EXCLUSIVE AGREEMENT. The specific arrangements referred to herein are not
intended to exclude or limit Employee’s participation in other benefits available to
Employee or personnel of the Company generally, or to preclude or limit other
compensation or benefits as may be authorized by the Board of Directors of the Company
at any time, or to limit or reduce any compensation or benefits to which Employee would
be entitled but for the Agreement.
	 
	 	6.05  	NOTICES. Notices, requests, demands and other communications provided for by
the Agreement shall be in writing and shall either be personally delivered by hand or
sent by: (i) Registered or Certified Mail, Return Receipt Requested, postage prepaid,
properly packaged, addressed and deposited in the United States Postal System; (ii) via
facsimile transmission if the receiver acknowledges receipt; or (iii) via Federal
Express or other expedited delivery service provided that acknowledgment of receipt is
received and retained by the deliverer and furnished to the sender, if to Employee, at
the last address he has filed, in writing, with the Company, or if to the Company, to
its Corporate Secretary at its principal executive offices.
	 
	 	6.06  	NON-ALIENATION. Employee shall not have any right to pledge, hypothecate,
anticipate, or in any way create a lien upon any amounts provided under the Agreement,
and no payments or benefits due hereunder shall be assignable in anticipation of
payment either by voluntary or involuntary acts or by operation of law. So long as
Employee lives, no person, other than the parties hereto, shall have any rights under
or interest in the Agreement or the subject matter hereof. Upon the death of Employee,
his executors, administrators, devisees and heirs, in that order, shall have the right
to enforce the provisions hereof, to the extent applicable.
	 
	 	6.07  	ENTIRE AGREEMENT; AMENDMENT. The Agreement constitutes the entire agreement of
the Parties with respect of the subject matter hereof. No provision of the Agreement
may be amended, waived, or discharged except by the mutual written agreement of the
Parties. The consent of any other person(s) to any such amendment, waiver or discharge
shall not be required.
	 
	 	6.08  	SUCCESSORS AND ASSIGNS. The Agreement shall be binding upon and inure to the
benefit of the Company, its successors and assigns, by operation of law or otherwise,
including, without limitation, any corporation or other entity or persons which shall
succeed (whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company, and the
Company will require any successor, by agreement in form and substance satisfactory to
Employee, expressly to assume and agree to perform the Agreement. Except as otherwise
provided herein, the Agreement shall be binding upon and inure to the benefit of
Employee and his legal representatives, heirs and assigns; provided, however, that in
the event of Employee’s death prior to payment or distribution of all amounts,
distributions and benefits due him hereunder, if any, each such unpaid amount and
distribution shall be paid in accordance with the Agreement to the person or persons

-17-

 

designated by Employee to the Company to receive such payment or distribution and in
the event Employee has made no applicable designation, to his estate. If the
Company should split, divide or otherwise become more than one entity, all liability
and obligations of the Company shall be the joint and several liability and
obligation of all of the parts.

	 	6.09  	GOVERNING LAW. Except to the extent required to be governed by the laws of the
State of Delaware because the Company is incorporated under the laws of said State, the
validity, interpretation and enforcement of the Agreement shall be governed by the laws
of the State of Texas.
	 
	 	6.10  	VENUE. To the extent permitted by applicable state or federal law, venue for
all proceedings hereunder will be in the U.S. District Court for the Southern District
of Texas, Houston Division.
	 
	 	6.11  	HEADINGS. The headings in the Agreement are inserted for convenience of
reference only and shall not affect the meaning or interpretation of the Agreement.
	 
	 	6.12  	SEVERABILITY. In the event that any provision or portion of the Agreement
shall be determined to be invalid or unenforceable for any reason, the remaining
provisions of the Agreement shall be unaffected thereby and shall remain in full force
and effect.
	 
	 	6.13  	PARTIAL INVALIDITY. In the event that any part, portion or section of the
Agreement is found to be invalid or unenforceable for any reason, the remaining
provisions of the Agreement shall be binding upon the parties hereto, and the Agreement
will be construed to give meaning to the remaining provisions of the Agreement in
accordance with the intent of the Agreement.
	 
	 	6.14  	COUNTERPARTS. The Agreement may be executed in one or more counterparts, each
of which shall be deemed to be original, but all of which together constitute one and
the same instrument.
	 
	 	6.15  	NO WAIVER. No failure by either party hereto at any time to give notice of any
breach by the other party of, or to require compliance with, any condition or provision
of the Agreement shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time.

-18-

 

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

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

	 	 	 	 	 
	 	 	/s/ David A. Bourgeois
	 	 	 
	 	 	David A. Bourgeois
	 
	 	 	 	 
	

	 	Date:
	 	August 17, 2004
	 
	 	 	 	 
	ATTEST:	 	PRIDE INTERNATIONAL, INC.

	 
	 	 	 	 
	/s/ W. Gregory Looser

	 	By:
	 	/s/ Paul A. Bragg
	 	 	 	 	 
	W. Gregory Looser

	 	 	 	Paul A. Bragg
	Secretary

	 	 	 	Chief Executive Officer
	 
	 	 	 	 
	

	 	Date:
	 	August 17, 2004

-19-

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